Quebec formalizes its permanent exit from hydrocarbons. In the next few years, the industry will be required to clean up and then close its exploration wells, partly at the expense of the state.
Bill 21 – not to be confused with the legislation that introduced the Religious Neutrality Act – received majority support in the National Assembly on Tuesday afternoon. Only Québec solidaire opposed its adoption because “the CAQ has again lacked political courage by refusing to set aside any financial compensation in its law”.
Once sanctioned, the law will force holders of oil claims in Quebec territory to cancel their permits. The wells in question must be closed within a period of three years if they present no risk. And within a year if there are threats of gas leaks.
In its bill, the government undertakes to reimburse 75% of the clean-up and closure costs of some 62 exploration wells located in Québec. He also promises to compensate oil companies that obtained an exploration permit after October 2015.
When he tabled his bill in February, the Minister of Energy and Natural Resources, Jonatan Julien, had estimated the total compensation at around one hundred million dollars.
Lawsuits in sight?
Already, the Quebec Energy Association is preparing its legal weapons. Asked by The duty in the middle of the afternoon, its president, Éric Tétrault, agreed that he was already evaluating the possibility of challenging the law.
Mr. Tétrault strongly criticized the bill when it passed through the committee last February. By limiting itself to compensating for the cost of the permits, Quebec is shopping for strong opposition from the industry, which would have liked to be compensated for the potential revenues from the exploitation of oil and gas, he said.
“If we change the rules of the game, we need adequate compensation. »
At the other end of the spectrum, Québec solidaire (QS) and several environmental groups believe that by clearly enshrining it in its law, the government of François Legault could have avoided compensating companies, while protecting itself from any litigation.
“The oil and gas companies have already siphoned millions of dollars from us and the government wants to give them back? In the midst of a climate crisis, this is unacceptable and irresponsible,” QS co-spokesperson Manon Massé said in a statement on Tuesday.