(Quebec) Bill 21 which compensates oil and gas companies up to 100 million was adopted Tuesday by the National Assembly.
Updated yesterday at 9:11 p.m.
This Legault government law puts an end to all hydrocarbon research and exploitation activities in Quebec and therefore compensates companies that hold permits.
The oil and gas companies were asking for a lot more, at least $500 million.
Quebec becomes the first state in North America to renounce the extraction of hydrocarbons.
The elected representatives of the Coalition avenir Québec (CAQ), the Liberal Party (PLQ) and the Parti québécois (PQ) voted in favor, while the elected representatives of Québec solidaire (QS) and MNA Claire Samson, of the Conservative Party (PCQ) , abstained.
The PCQ had nevertheless let it be known that it was clearly in favor of oil exploitation in Quebec.
Last week, a company, Utica Resources, tried to dissuade elected officials from voting for this bill. In the context of the invasion of Ukraine, Utica argues that Quebec, with its untapped gas reserves, should instead supply Europe, which is seeking to free itself from its gas dependence on Russia.
“(Compensation) will cost a little less than 100 million, if we have the figures for both the costs of rehabilitating the wells and the detailed figures for the compensation to be paid on the principles provided for in the program, so we cannot be sure. don’t go blindly, there won’t be any bad surprises, ”assured in the House the Minister of Energy and Natural Resources, Jonatan Julien, who piloted the bill.
No compensation for costs incurred over the six-year period covered by the bill will be paid to a company until it has closed its well permanently, to the satisfaction of the Ministry of the Environment and the Ministry of Energy and Natural Resources, he also recalled.
In a context where European countries are trying to get rid of their dependence on Russian hydrocarbons, voices have been raised to denounce this ban on production, which would place Quebec in a situation of dependence on foreign oil and gas.
“Quebec is the only one in the world right now to give up its potential. Where is the urgency? We have to take the time to see how the situation will evolve, ”said the president of the Quebec Energy Association, Éric Tetrault, in a joint press release with Utica Resources and Questerre.
In the same press release, the Council of the Abenakis of Wôlinak denounced a violation of the rights of the First Nations, while the community recently reached an agreement with a producer.
“It’s a question of rights. And it is also a question of social and economic development for our community, indicated Chief Michel Bernard. Participating in resource development means acting for the prosperity of our communities”.
The Council said it deeply regretted that the government failed to consult them. If Quebec refuses to negotiate, the First Nation has indicated that it wants to “continue to proceed with its request by obtaining ancestral aboriginal title”.
Several environmental groups who called for an end to the era of hydrocarbons in the context of the fight against climate change have declared victory.
Among others, Nature Québec, Greenpeace, Équiterre, the Regroupement vigilance carbides Québec, the Québec Association for the fight against atmospheric pollution, Eau Secours, the Student Climate Action Front and the Québec Association of Physicians for the Environment have notably said it was a “historic moment for Quebec.
The law covers the expenses incurred since 2015 by five companies (66 million out of the 100 million) and covers three quarters of the costs of closing wells and restoring sites (33 million out of the 100 million).
There are currently 182 active permits, mostly in the St. Lawrence Valley and in the Bas-Saint-Laurent and Gaspésie regions. There are also currently 62 wells to be rehabilitated.
There has been no exploration work in Quebec since 2011.
By adopting this law, Québec is complying with its commitment made at the United Nations Conference on Climate Change, COP26, which was held in Glasgow last November.
Prime Minister François Legault then announced that Quebec was joining Beyond Oil and Gas Coalition (BOGA), a group of states that have closed the door to the exploitation of hydrocarbons. BOGA notably includes Denmark and Costa Rica.