Sustainable development of the shale gas industry - Quebec oil and gas Association WELCOMES BAPE REPORT
MONTREAL, March 14 /CNW Telbec/ - The Quebec Oil and Gas Association (QOGA) has generally welcomed the Bureau d'audiences publiques sur l'environnement (BAPE) report and the government's response.
"The recommendations pave the way for a thoughtful and prudent approach that will reassure Quebecers regarding the possibility and desirability of developing the province's gas resources responsibly," said Me Lucien Bouchard, president of the QOGA board of directors.
"The government has our support to quickly put in place the measures required to conduct a thorough study and promote an informed debate regarding the collective decisions to be made. Association members wish to make it clear that they will take an active role. Together with all Quebecers, they believe that development of gas resources is not possible unless it serves the public interest."
The BAPE's proposal responds to QOGA member concerns regarding the need to support the strategic assessment process by conducting fracturing operations in compliance with the guidelines set by the commission's report. The Association stresses the necessary link that BAPE commissioners have drawn between the proposed assessment and the use of data from fracturing operations carried out in compliance with criteria described in the report.
QOGA believes the committee tasked with the strategic environmental assessment must be struck as soon as possible before late April in order to get underway this already overdue review and analysis to which all are invited to contribute.
By making diligent and effective use of the time allowed by the assessment period, it will also be possible to flesh out and clarify the economic impact of the expected development, particularly by looking at ways to enhance it through the creation of a service—and even manufacturing—industry, as well as the potential to train specialized workers and acquire the expertise we as yet sorely lack.
Studies conducted as part of the strategic assessment can therefore draw on surveys conducted as part of pilot fracturing operations carried out according to strict transparency, scientific and technical monitoring, inspection and surveillance requirements, after consultation with local communities.
"The commissioners saw clearly that the assessment would be more thorough and convincing with the addition of knowledge regarding the characteristics of the Utica rock formations, the nature and specificity of the gas and the movement of water, whose post-use treatment must be included in the fracturing process," added Me Bouchard.
The same is true of exploration efforts which, according to the report, could continue.
It will also be possible to identify best practices to ensure compliance—during a potential production phase—with exemplary safety and environmental protection standards. Such operations will also make an essential contribution to the economic knowledge of gas resources. The QOGA president reiterated that "the economic value of gas resources is not yet proven, and the only way to know if Quebec has viable gas resources is through field testing."
The QOGA president also asserted that it is "important to take advantage of this opportunity to develop a world-class environmental, technical, and fiscal regulatory framework that is thorough, competitive, and effective. Particularly as regards fiscal regulation, it is essential to carry out indepth comparative analyses that will guarantee the government receives a fair share of gas profits while ensuring that exploration license costs and mining royalties are compatible with the industry's competitive nature."
But the time that has already elapsed since Association members began investing in exploration and will continue to pass during the assessment will raise certain difficulties that require solutions. Since licenses are granted for a specific period during which holders must make annual investments and carry out certain work or lose their rights, imposing a deadline that prevents them from fulfilling these obligations would cut short the time they were initially granted.
"We could potentially— and this is certainly the case of the Association—distance ourselves from certain observations and recommendations made by BAPE and by the government in its response, but we have to agree that they suggest a wise approach that puts the debate back on track. In the presence of a resource that is an asset in and of itself, Quebec society must collectively assess the scientific, environmental, and socioeconomic realities that should underpin sensible development decisions," said Me Bouchard in closing.
About the Quebec Oil and Gas Association
Created in April 2009, the Quebec Oil and Gas Association works to responsibly develop a Quebec industry that can safely generate significant economic benefits for the regions in a safe manner compliant with environmental requirements. QOGA represents and promotes the interests of an industry committed to contributing to Quebec's energy diversification and serving public and community interests. Its members seek to develop Quebec's energy resources while promoting the province's economic development.
http://www.newswire.ca/fr/releases/archive/March2011/14/c2917.html
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