Ministry of Energy, Mines and Petroleum Resources

What happens if the Moratoria are Lifted

UBCM Offshore Working Group

Jean DragushanOffshore Oil and Gas Division

What happens if the Moratoria are Lifted

UBCM Offshore Working Group

Jean DragushanOffshore Oil and Gas Division

Provincial Moratorium: Offshore Oil and Gas

• 1982 – Order in Council (OIC) reserved lands offshore to the province and placed a moratorium on oil drilling

• 1989 – Province announced there would be no drilling for at least five years

• 1982 – Order in Council (OIC) reserved lands offshore to the province and placed a moratorium on oil drilling

• 1989 – Province announced there would be no drilling for at least five years

Federal Moratorium: Offshore Oil and Gas

• 1960s – Offshore oil and gas tenures issued

• 1972 – Federal cabinet policy decision “suspends” these tenures

• Licence holders have been relieved of the obligation to undertake activities

• 1960s – Offshore oil and gas tenures issued

• 1972 – Federal cabinet policy decision “suspends” these tenures

• Licence holders have been relieved of the obligation to undertake activities

Federal Moratorium: Oil Tanker Traffic

• There is no moratorium on oil tanker traffic in BC waters

• There is a voluntary exclusion zone that applies to U.S. tankers travelling between Alaska and continental U.S.

• Oil products are currently transported from the Port of Vancouver and along the coast of BC

• There is no moratorium on oil tanker traffic in BC waters

• There is a voluntary exclusion zone that applies to U.S. tankers travelling between Alaska and continental U.S.

• Oil products are currently transported from the Port of Vancouver and along the coast of BC

Lifting the Moratorium: What this means

• Lifting the moratorium does not mean exploration would begin immediately

• Lifting the moratorium does not mean exploration would begin immediately

Lifting the Moratorium: What this means

• Lifting the moratorium does not mean exploration would begin immediately

• Lifting the moratorium would allow industry to apply to carry out specific activities • Each application would be subject to a rigorous

environmental assessment process• And before that could happen, a regulatory and

management regime would have to be in place

• Lifting the moratorium does not mean exploration would begin immediately

• Lifting the moratorium would allow industry to apply to carry out specific activities • Each application would be subject to a rigorous

environmental assessment process• And before that could happen, a regulatory and

management regime would have to be in place

Estimated Timeline

Year

Year

Year

1 2 3 4 5 6 7 8

1

1

2

2

3

3

4

4

5

5

6

6

7

7

8

8

MNegotiateAccord

Negotiate withTenure Holders

Implement Accord

M

M First Nations consultation, capacity building & participation

If the moratorium is lifted:

Pre-Seismic Studies (Industry Funded)

Baseline Studies (Publicly Funded)

First Steps

• Negotiate an Intergovernmental Accord (Pacific Accord?) with the Federal Government and First Nations

• Negotiate an Intergovernmental Accord (Pacific Accord?) with the Federal Government and First Nations

If the moratorium is lifted:

First Steps

• Collect baseline data• Publicly funded

• Collect baseline data• Publicly funded

If the moratorium is lifted:

First Steps

• Conduct scientific studies related to an application for seismic surveys• industry funded

• Conduct scientific studies related to an application for seismic surveys• industry funded

If the moratorium is lifted:

First Steps

• Consultation with First Nations• Consultation with First Nations

If the moratorium is lifted:

First Steps

• Discussions with Communities• Discussions with Communities

If the moratorium is lifted:

Potential Industry Development Timeline

9 10 11 12YEAR 0 1 2 3

4 5 6 7 8

Base regional studies

2-D Seismic

3-D Seismic

Exploration Drilling

Appraisal Drilling

Development Planning & Regulatory Approval

Development

First Production

If the moratorium is lifted: