Hydrocarbons | Quebec Passes Law Putting an End to Research and Exploration

(Quebec) The bill which compensates oil and gas companies up to 100 million was adopted Tuesday by the National Assembly.

Posted at 3:13 p.m.
Updated at 4:06 p.m.

Patrice Bergeron
The Canadian Press

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 10 elected representatives of Québec solidaire (QS) abstained.

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 a 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.


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