|
British Columbia sees energy as
a ‘cornerstone’ of economy Province announces package of legislative amendments to attract C$24 billion in new investment over next six years; premier says province ready to ‘serve’ industry Gary Park PNA Canadian Correspondent
The British Columbia government has taken another step to entice the oil and gas industry to the province by introducing legislation that reduces red tape, improves access to resources and creates a better investment climate.
Energy Minister Richard Neufeld said April 19 his government “aims to double oil and gas production ... by fulfilling our commitment to removing barriers that stand in the way of reaching those goals and to create single-window authorities” for energy development.
High on the list of proposed amendments is a move towards granting single exploration permits for a general area, rather than issuing approvals on a well-by-well basis.
The province also expects the changes will accelerate development of coalbed methane, where British Columbia reserves have been estimated at 90 trillion cubic feet scattered across the province.
British Columbia Premier Gordon Campbell, speaking to industry leaders in Calgary April 18, vowed the British Columbia Oil and Gas Commission will become more efficient in providing a greater volume of permit approvals in a “timelier fashion” in a province that has often been seen as hostile to oil and gas development. Goal of billions The province has set a goal of attracting C$24 billion (US$15 billion) in energy and mineral investment over the next six years.
“It’s one thing to be open for business and another thing to serve business,” he said. “Energy is a critical cornerstone of B.C.’s economic future.”
Campbell said there are many more gas pools in northeastern British Columbia to match the Ladyfern discovery, Canada’s largest gas find in 15 years, and “we intend to find them.”
He also said a report by an independent panel of scientists on the British Columbia offshore wills soon be released.
Without disclosing any details, he suggested the industry will like what it hears. Coalbed methane Among its legislative changes, the government said it hopes to encourage coalbed methane development by eliminating the current 2,000-foot depth restriction on exploratory drilling, thus encouraging the industry to develop unexplored resources.
Schemes that may be approved under the British Columbia Petroleum and Natural Gas Act will be broadened to include projects to develop resources such as coalbed methane, which the province hopes will facilitate its royalty incentive for natural gas produced from coal formations. Another change to the act would eliminate the current calendar-year term for geophysical licenses and add a provision for the term of a licenses to be prescribed by regulation. Increased access Neufeld said the province aims to increase access to government-owned lands and develop unexplored resources.
The act is also being amended to establish a “coordinated cost-recovery system associated with the development, operation and maintenance of much-needed resource infrastructure. The (government) will pursue public-private partnerships to implement the system.”.
As an example, Neufeld cited a road in northeastern British Columbia which provides access to about 10,500 square miles of oil and gas territory and resulted in the province collecting C$126 million in land sales and C$232 million in royalties and taxes in 2001.
The new legislation would allow the province to continue that partnership and to negotiate other similar deals.
| 