Oil & Gas

Northeastern BC is part of the geologic hydrocarbon bearing area known as the Western Canada Sedimentary Basin (WCSB). The Basin contains the vast majority of oil, gas and crude bitumen in Canada and is the only current area of BC producing commercial quantities of oil and gas. The petroleum industry in British Columbia has over 14,000 producing oil & gas wells; with direct revenues of $2.3 billion for the province (2008/09) and 22,200 direct and indirect jobs.

The November 2009 land rights sale resulted in nearly $20 million in bonus bids, bringing the calendar year to date total to $720.6 million.

The Nov. 18, 2009 sale offered 44 parcels in northeast B.C. covering 21,333 hectares, and sold 31 parcels covering 17,645 hectares. The average price per hectare was $1,130.

The key parcels in the sale included:

• Three leases in the Montney north of Dawson Creek with bids between $5,308 and $8,662 per hectare for a total of more than $5.4 million.
• One drilling licence in the southern portion of the Horn River Basin, about 15 km north of Fort Nelson, totalling more than $6.4 million, with a per hectare bid of about $4,066.
• Two leases in the eastern portion of the Horn River Basin, approximately 75 km northeast of Fort Nelson. Bids of between more than $2,120 to more than $3,500 per hectare totalled nearly $1.5 million.

Drilling licences provide the exclusive right to explore for natural gas by drilling wells. They are acquired by the successful bidder at the Crown sale, and primary terms are three, four or five years, depending on location.

Number of Wells Drilled in BC - Annually

source: BC Oil and Gas Commission

Resources

Ministry of Energy, Mines and Petroleum Resources
www.gov.bc.ca/empr

• Accountable for environmentally and socially responsible oil and gas management and development.
• Creates policy and fiscal framework for oil and gas development in B.C.
• Issues tenures providing access to Crown resources.

Oil and Gas Commission (OGC)
www.ogc.gov.bc.ca
The OGC is a Crown Agency regulating oil and gas exploration and development.

• Ensures provincial standards for responsible resource development.
• Inspects oil and gas activities to ensure compliance with regulations.
• Responds to complaints and emergencies.

Ministry of Environment
www.gov.bc.ca/env
Ensures B.C. is a world leader in sustainable environmental management, with the best air and water quality, and the best fisheries management.

• Regulates discharges from oil and gas facilities through permits and the Oil and Gas Waste Regulation.
• Regulates management of hazardous wastes through the Hazardous Waste Regulation.

Environmental Assessment Office (EAO)
www.eao.gov.bc.ca
The EAO is a neutral provincial agency that coordinates assessment of the impacts of major development proposals in B.C.

• Environmental, economic, social, heritage and health effects are all considered in the assessment process.
• Makes recommendations to either grant or refuse an Environmental Assessment certificate.