As consultations begin on the bill that will put an end to oil and gas exploration in Quebec, the Alberta company Questerre promises to take all necessary actions to protect its “rights”. It has already filed a first lawsuit against the Quebec government, because of the ban on fracking in the St. Lawrence Valley.
In a lengthy statement released Tuesday, Questerre Chairman Michael Binnion says Bill 21 constitutes “expropriation” that will be carried out without “meaningful compensation” from the state.
This bill, designed to put an end to oil and gas projects in Quebec, does not take into account the “great value” of the gas resources that are found in the basement of the permits held by the company, underlines Mr. Binnion , who once headed the Quebec Oil and Gas Association.
Without directly discussing filing a lawsuit challenging the bill, Questerre’s statement said the company will use “all the time and money necessary” to ensure it is treated “fairly.” According to the company, Quebec would have every interest in developing its shale gas resources, after several years of exploration work in the province.
Although hydraulic fracturing (which makes it possible to exploit shale gas) is prohibited in the St. Lawrence Valley under the Petroleum Resources Act, Questerre still holds several licenses in the south of the province. These cover approximately 3600 km2, they are located on the South Shore of the St. Lawrence and they form a long strip of territory that goes from Drummondville to Quebec.
Questerre also announced in January its desire to develop a natural gas production project “without emissions” of greenhouse gases in the Bécancour region. The company even has active lobbyists in Quebec to promote this “pilot project” for the exploitation of shale gas.
The Alberta company also launched a lawsuit in 2018 against the Quebec government to challenge the ban on fracking in the lowlands. This case is still before the courts.
Consultations in Quebec
However, the Legault government has already announced that it will put an end to oil and gas exploration in Quebec. Bill 21 was tabled precisely for this and the special consultations began on Tuesday at the National Assembly.
The Minister of Energy and Natural Resources, Jonatan Julien, took the opportunity to affirm that this bill “is a major step that demonstrates that Quebec is resolutely on the path to energy transition”. What’s more, “in 2022, it is clear that there is no social acceptability” for oil and gas exploitation in Quebec, according to him.
The environmental groups that took part in the consultations on Tuesday all called on the Legault government to renege on its promise to pay compensation to the ten companies that still hold a total of 182 exploration permits, for an area of approximately 32 000 km2 of territory. In 2011, when banning oil and gas exploration in the St. Lawrence River and estuary, the Charest government closed the door to such compensation.
Minister Jonatan Julien, however, remained on his position, promising to reimburse certain expenses incurred by companies since 2015, in particular to keep their exploration permits. According to what the Legault government provides with Bill 21, Quebec will also reimburse 75% of the costs for the closure and restoration of 62 wells that have been drilled, including 29 shale gas wells, but which still belong to companies. . The government estimates the bill at $33 million.
The Quebec state will also have to pay several million dollars for the decontamination of abandoned oil and gas wells, many of which have been leaking hydrocarbons for years. The total bill is currently unknown.