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Federal assessment of B.C. drilling moratorium complete
Petroleum News
The federal government of Canada has completed a federal review process addressing the federal moratorium on oil and gas exploration and development off the coast of British Columbia, R. John Efford, Minister of Natural Resources Canada, said Nov. 19.
Initiated in 2003, the arms-length review was to provide both a scientific analysis and an assessment of the position of British Columbians and coastal First Nations on the subject of oil and gas activities offshore the western province.
“This has been a broad and open process. We have now heard a wide range of views from British Columbians and appreciate their contribution. This is an important decision for B.C. and for Canada,” Efford said in a press release.
The three reports that were part of the process, initiated in 2003, “will help the government assess the next steps regarding the moratorium, and my colleagues and I will be looking at them in the coming months,” he said.
“The three-part federal process is not a decision-making process, but rather a way to explore the issues and views of British Columbians regarding the federal moratorium. The three reports provide valuable input to help the government of Canada assess whether or not, or under what conditions, to lift the federal moratorium on offshore B.C. oil and gas activities in the Queen Charlotte region,” Efford said.
The first report concerned the state of the science, and was released in February 2004. A panel of four scientists said there was no scientific reason to maintain a joint federal-provincial moratorium on offshore drilling, and that work could begin as soon as the necessary environmental assessments have been completed.
But the panel, working under the auspices of the Royal Society of Canada, said that drilling must be governed by strict regulations, First Nations claims must be settled, and a wide range of environmental and technical studies must be completed. But a green light for preliminary work “would enhance the opportunity for filling many of the science gaps through shared-cost partnerships involving industry participation.” Seventy-five percent opposed The next two panels, which completed their reports in mid-November, were the Public Review Panel and the First Nations Engagement Process. They were to provide the views of British Columbians, including coastal First Nations, on the federal moratorium. The public review panel said 75 percent of the people who participated in hearings in British Columbia earlier this year were opposed to lifting the exploration moratorium.
But unlike the scientific panel, the public review panel decided not to make a recommendation on lifting the moratorium.
“As far as I’m concerned, it’s not a very good report. It doesn’t tell us anything that we didn’t already know. If I was the federal government, I’d be pretty disappointed about taking almost a year to come up with nothing,” B.C.’s Energy Minister Richard Neufeld told The Canadian Press Nov. 19. First Nations say no The First Nations’ report, titled Rights, Risks and Respect, concluded that the “moratorium should not be lifted at this time,” stressing that there was a “need for greater understanding” of the risks associated with oil and gas activities.
The report also pointed to “unresolved title, rights and jurisdictional issues and, in particular, foreshore rights” that must be addressed before the moratorium is lifted.
The executive summary of the report said that there were “two perspectives contributing” to the First Nations’ conclusion. “One view is that an informed decision cannot be made on the basis of currently available information. The second view is that there is enough information available now to definitively conclude that the moratorium should absolutely not be lifted.” Chevron, Shell, Exxon, Forest hold leases Resource estimates prepared by the Geological Survey of Canada some years ago put the petroleum resource potential in Hecate Strait offshore British Columbia at 9.8 trillion cubic feet of gas and 1.3 billion barrels of oil.
Oil companies still holding exploration leases for offshore British Columbia (they were put in abeyance when the moratorium was imposed) include Petro-Canada, ChevronTexaco, Shell Canada, ExxonMobil and Canadian Forest Oil.
While all the attention has been focused on the waters between the Queen Charlotte Islands and the mainland, there are three other offshore basins that have been identified as having oil and gas potential.
The Winona and Tofino Basins, off the west coast of Vancouver Island, have an estimated resource potential of 9.4 trillion cubic feet of gas, while the Georgia Basin near Vancouver has an estimated resource potential of 6.5 tcf.
Editor’s note: Watch for a full story on the B.C. assessment in the Dec. 5 edition of Petroleum News.
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