No deal in sight on B.C.’s offshore moratoriums

Gary Park

PNA Canadian Correspondent

Three decades of moratoriums on exploring British Columbia’s offshore for oil and natural gas may have to wait another 18 months for a verdict.

A tiff between the Canadian and British Columbia governments over who will fund a joint C$4 million scientific study of the region has scuttled the province’s hopes of an early announcement on a framework for lifting the federal and provincial bans.

Federal Natural Resources Minister Herb Dhaliwal said his government is not ready to make a cash contribution to cover half the research undertaking, although it was prepared to offer equivalent resources and technical expertise.

He said one option now is for British Columbia to bow to pressure and end its own moratorium, leaving the Canadian government to do its own “due diligence” and reach a “well-informed” decision.

But he indicated it might be late 2003 before the federal government reaches its own verdict on the drilling ban.

B.C. Energy and Moines Minister Richard Neufeld told the Financial Post last week that allowing offshore exploration is a “high priority” for his government, although he would not put a deadline on removing the moratorium.

He said the offshore leaseholders (Petro-Canada, Shell Canada Ltd. and Chevron Canada Ltd.) have been very emphatic that they first want British Columbia to resolve all outstanding issues with northern communities, First Nations, environmentalists and the federal government before they will even consider developing drilling plans.

Neufeld was not available to comment on Dhaliwal’s position and the federal refusal to cost-share the research.

David McGuigan, president of the North Coast Oil and Gas Task Force — one of the most vigorous proponents of lifting the moratoriums — said there is no reason, other than the resolve of governments, why seismic work should not start in spring 2003, followed by the first wells within four years.

A spokesman for the British Columbia Chamber of Commerce said the moratoriums have stopped discussion as well as work and blocked efforts to understand the implications and impact of offshore development.