|
B.C. closer to call for bids in Muskwa-Kewchika area Northeast part of province a natural westward extension of traditional exploration areas Don Whiteley Petroleum News contributing writer
The British Columbia government is one step closer to a call for bids on oil and gas leases in the 64,000 square kilometer Muskwa-Kechika area in northeast British Columbia.
The Ministry of Energy and Mines, in conjunction with the Ministry of Sustainable Resource Management, has issued new pre-tenure plans that outline environmental requirements for oil and gas exploration activities.
“This is good news for our oil and gas industry that last year increased its investment in the province to $3.5 billion from $3 billion the previous year,” Energy Minister Richard Neufeld said in a release. “It provides the certainty that industry needs to proceed with exploration and development of the tremendous resource potential in this area.”
Ministry officials have estimated that $16 billion worth of natural gas may lie beneath the eastern parts of this area, which is about the size of the Province of Nova Scotia. It is a natural westward extension of traditional exploration terrain in the northeast part of British Columbia, but to date there has been no drilling activity because of environmental issues. Plans would give assurance of access The pre-tenure plans provide potential bidders for exploration rights with the certainty that they will be able to get access to this remote exploration area. They also give direction for conservation of biological diversity, soil and water resources, as well as targets for minimizing disturbance to the general area, and remediation once exploration and development are completed. The plans become part of any oil and gas tenure sold in the area.
Oil and gas activities must comply with the Muskwa-Kechika Management Act, which was enacted because of the unique nature of an area that has often been called the Serengeti of the north. Resource activities will be governed by the Muskwa-Kechika Management Plan, which was developed after consultations with residents, local municipalities, First Nations and tourism, wildlife and resource development interests.
“With clear guidelines in place to protect environmental values while providing resource access, industry can now acquire the oil and gas rights that form the basis for future development,” said Sustainable Resource Management Minister George Abbott.
“This will ensure new sources of energy and provide additional jobs and revenue that will benefit our communities and residents,” added Neufeld. “B.C. has succeeded in attracting an increasing share of industry investment, and oil and gas exploration and production activity has steadily increased in recent years from 821 wells drilled in 2002/03 to a forecast of 1,328 wells this year.”
| 