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Alberta and British Columbia agree to cooperate on energy development
Don Whiteley Petroleum News Contributing Writer
Alberta and British Columbia have decided that cooperation trumps competition in energy development, and they signed a memorandum of understanding May 26 designed to harmonize oil patch regulations between the two provinces.
Canada’s No. 2 oil and gas producer, British Columbia has long been seen as a more costly, less efficient place to invest exploration dollars, despite highly attractive geological prospects.
But a handful of spectacular discoveries, most notably the 1999 Ladyfern play, woke the industry up to British Columbia’s potential, and sparked an industry lobbying effort to get the province to move both the royalty rates and regulations closer to the Alberta model.
While significant progress has been made in the last few years, the May 26 announcement at a joint meeting of the British Columbia and Alberta cabinets is the culmination of the effort.
“It’s really aimed at making sure we minimize unnecessary costs and maximize potential benefits for both British Columbia and Alberta,” British Columbia Premier Gordon Campbell told the Vancouver Sun. “There are always going to be some differences, but yes, we’re looking for increased harmonization because that improves opportunities for people in British Columbia and Alberta.” Regulatory best practices regulations targeted The new agreement commits the two provinces “to work with energy ministries and regulatory agencies to streamline, harmonize and mutually adopt regulatory best practices regulations between the Provinces.”
Areas of cooperation include: regulations governing oil and gas exploration, development, production, processing and transportation; development of a British Columbia petroleum registry that mirrors Alberta’s, and; coordination of transportation strategies.
The two provinces have also agreed “to identify and resolve issues to ensure open and transparent access to each other’s electric transmission systems and markets. “
With a five-year term, the goals and objectives of the memorandum of understanding will be carried out by steering committees comprised of senior ministry officials from both provinces.
The Canadian Association of Petroleum Producers, which played an instrumental role in getting British Columbia to streamline its regulations and adopt natural gas royalty rates more in tune with Alberta’s, was pleased with the announcement.
“We are very supportive of harmonizing the rules where they make sense, said Dave Pryce, vice president of western operations for the association, in a Vancouver Sun interview. “It can be a lot easier to work if the ground rules and regulations are similar.”
The memorandum of understanding on oil and gas was one of seven signed by the two provinces, with two others having a direct bearing on the energy sector — environmental regulations and training opportunities for oil and gas sector employment..
Similar rules will be developed in both provinces governing ozone depleting substances and halocarbons, deep well injection, special waste sites registry, waste paint stewardship, and electronic product stewardship.
Part of the agreement involves a partnership between Northern Lights College and Southern Alberta Institute of Technology. The two post-secondary institutions will cooperate on the development and delivery of programs related to the oil and gas sector.
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