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May 2002

Vol. 7, No. 19 Week of May 12, 2002

Chevron ready to explore British Columbia offshore if moratorium is lifted

Company backs British Columbia government attempts to end the ban on searching for oil and gas; province Premier Gordon Campbell promises announcement on the ban within two weeks

Gary Park

PNA Canadian Correspondent

Chevron Resources Canada has become the first of British Columbia’s offshore leaseholders to show strong interest in starting to explore for oil and gas if the Canadian and British Columbia governments lift the ban on drilling.

The Calgary-based subsidiary of ChevronTexaco Corp. is ready to make the move, company President Jim Simpson told the annual meeting of the Canadian Association of Petroleum Producers.

But a spokeswoman said that although the company is backing the British Columbia government in its push to remove the moratoriums “there are many issues to be discussed before we can discuss offshore drilling.”

Petro-Canada, one of the other leaseholders, has show less enthusiasm for dusting off its exploration plans unless there is a clear federal-provincial regulatory regime for the offshore, settlement of all unresolved First nations land claims and protection of ecologically sensitive areas.

Announcements expected

In his address to the Canadian Association of Petroleum Producers, British Columbia Premier Gordon Campbell said his government expects to make an announcement regarding the moratorium within the next couple of weeks, along with releasing the findings of an independent scientific panel.

Following earlier meetings with federal Natural Resources Minister Herb Dhaliwal, Campbell said British Columbia is willing to work with the federal government and the producers association to coordinate public policy on energy matters. “We’re trying to have one process instead of two,” he said.

Canada’s Environment Minister David Anderson continues to speak cautiously about moving too quickly on the issue of exploration.

“We want to make sure a clear analysis of the risks and a clear analysis of the benefits shows that it is desirable to lift the moratorium,” he said.

“We have not got those studies. The studies are going to be very expensive” to cover wave patterns, ocean conditions and the condition of the seabed, including the volcanic fault line.

As well, Anderson, said studies of fish, bird and other sea and shore life will be required to assess the likely impact of exploration and drilling.

“I hope (the oil companies) are willing to bring their checkbook to the table ... because I can see them spending tens of millions of dollars,” he said.

Having the scientific research done by the private sector “saves the public sector money,” Anderson said.

Intensive opposition

Meanwhile, environmentalists and First Nations are mounting an intensive campaign, pressuring the Canadian government to maintain its moratorium.

Greenpeace Canada said any attempt to lift the ban would be in direct contradiction of the government’s pledge to ratify the Kyoto protocol on reducing greenhouse gas emissions.

Jennifer Lash, executive director of the Living Oceans Society and a spokeswoman for the Free Coast Alliance, argued “science and experience from around the world have demonstrated that oil and water don’t mix, causing harm to the environment, coastal economy and coastal communities.”

The Haida First Nation and Tsimsian Nations are demanding that their land claims must be settled before any moves are made to lift the moratorium as well as pressing for an “independent environmental, economic, social and legal impact analysis” of offshore development.






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