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Ministry of Energy & Mines Present and Future of Coalbed Gas in British Columbia Ross Curtis Assistant Deputy Minister B.C. Ministry of Energy and Mines.

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Presentation on theme: "Ministry of Energy & Mines Present and Future of Coalbed Gas in British Columbia Ross Curtis Assistant Deputy Minister B.C. Ministry of Energy and Mines."— Presentation transcript:

1 Ministry of Energy & Mines Present and Future of Coalbed Gas in British Columbia Ross Curtis Assistant Deputy Minister B.C. Ministry of Energy and Mines Conference Board of Canada Calgary, Alberta February 18, 2004

2 Ministry of Energy & Mines Outline Coalbed gas in British Columbia 1. Potential 2. Attracting Investment 3. Opportunities 4. Responsible Development

3 Ministry of Energy & Mines From early days of pick and shovel …

4 Ministry of Energy & Mines To today’s high-tech, efficient coal industry

5 Ministry of Energy & Mines CBG – a new opportunity to use BC’s coal resource

6 Ministry of Energy & Mines  90 Tcf potential resource (Reserves ???)  High potential close to markets and infrastructure BC Coalbed Gas Potential Klappan & Groundhog 8 Tcf Peace River 60 Tcf East Kootenay 19 Tcf Comox 0.8 Tcf Princeton 0.08 Tcf Hat Creek 0.5 Tcf

7 Ministry of Energy & Mines British Columbia Attracting Industry

8 Ministry of Energy & Mines Oil and Gas in BC 2002/3 2003/4 2002/3 2003/4 (Forecast) (Forecast) P&NG tenure $332 mil $690 mil (sales, fees, rentals) Royalties $1.174 bil $1.387 bil Wells drilled 821 1144

9 Ministry of Energy & Mines Government Goals Goal $20 billion investment 2002-2008 Strategy develop unconventional resources Coalbed gas - emerging opportunity

10 Ministry of Energy & Mines CBG Investment Strategy Competitive royalties and costs Competitive royalties and costs Crown gas rights Crown gas rights Industry support Industry support Effective Regulation Effective Regulation Community involvement Community involvement First Nations engagement First Nations engagement

11 Ministry of Energy & Mines Competitive Costs CBG Royalty Regime Allows for infrastructure costs $50,000 Royalty Credit Regulatory Streamlining Regulations reduced 1/3 by 2005 Results-based regulation coming

12 Ministry of Energy & Mines Crown P&NG Rights Coalbed Gas Act Freehold coal policy Mineral rights clarification Request for Proposals for innovative projects

13 Ministry of Energy & Mines Industry Support Information and problem solving GeoscienceTenureRegulationOpportunities “The Map Place”

14 Ministry of Energy & Mines Effective Regulation CBG Industry Guidelines 3-phase development plan Evaluation Plan: 1 well to pilot stage Development Plan: 20-40 wells Production Plan: commercial production CBG Water Code of Practice www.ogc.ca

15 Ministry of Energy & Mines Community Involvement Providing Information CBG development Government roles Regulation Managing issues

16 Ministry of Energy & Mines First Nations Engagement Key communities in resource development Interested in CBG opportunities Government actively engaged

17 Ministry of Energy & Mines Managing Development Regulatory body “one window” Operational issues Implementation and enforcement Stakeholder relations First Nations engagement OGC MEM Policy P&NG and coal tenure Resource development Geological expertise Community information First Nations engagement

18 Ministry of Energy & Mines CBG Opportunities in British Columbia

19 Ministry of Energy & Mines Activity in BC Early stage exploration and evaluation and evaluation No commercial projects Active rights acquisition acquisition 43 test wells since 1999 11 Experimental Projects

20 Ministry of Energy & Mines Northeast BC Resource – 60 Tcf Industry activity Hudson’s Hope - P&NG rights leased, evaluation drilling 2002/3 Other areas – evaluation

21 Ministry of Energy & Mines Southeast BC Resource – 19 Tcf Industry Elk Valley project Crowsnest coalfield – industry interest Elk Valley Coalfield 7 Tcf CrowsnestCoalfield 12 Tcf Elkford Sparwood Fernie British Columbia Alberta

22 Ministry of Energy & Mines South Central BC Resource -.17 Tcf in Princeton/Tulameen, Merritt and.5 Tcf Hat Creek Industry Princeton - P&NG rights leased; seismic complete; expect pilot in 2004 Tulameen – P&NG rights leased 2004

23 Ministry of Energy & Mines Vancouver Island Resource 1.0 Tcf + Industry Comox– some evaluation wells Tenure Complex mineral rights Freehold coal Victoria Suquash Coalfield Nanaimo Coalfield Comox Coalfield Quinsam Mine

24 Ministry of Energy & Mines Northwest BC Resource – 8 Tcf – anthracite coals Need more geoscience to evaluate resources

25 Ministry of Energy & Mines  Shale gas  Tight gas Other Unconventional Resources WCSB Bowser Nechako Interior Basin Development Strategy Geophysics Tenure dispositions Net profit assessment

26 Ministry of Energy & Mines Responsible Development

27 Ministry of Energy & Mines Learning from the U.S.

28 Ministry of Energy & Mines Mitigating Impacts Water Surface impact NoiseReclamationEnvironmental Information Information

29 Ministry of Energy & Mines Water Surface Disposal Beneficial Uses

30 Ministry of Energy & Mines Surface Impact WELL

31 Ministry of Energy & Mines Noise Housing over gas-fired pump Electric pump

32 Ministry of Energy & Mines Reclamation

33 Ministry of Energy & Mines Environmental Information NEW Environmental Resource Information Project In CBG basins: Bring together existing data existing data Targeted new studies

34 Ministry of Energy & Mines Summary Coalbed gas in British Columbia Great opportunities Government strategy Established regulatory regime Partnerships in responsible development

35 Ministry of Energy & Mines CBG Team Mary Coward, Project Manager, (250) 356-9827 Barry Ryan, Coalbed Gas Specialist,(250) 952-0418 Rolf Schmitt, Environmental Project, (250) 356-9822 Vic Levson, CBG Water Code, (250) 952-0391 Colin Magee, Petroleum Titles,(250) 952-9335 Cathy Mou, Royalty and Policy, (250) 952-0133 Devin Scheck, CBG Manager, OGC (250)261-5799 Corey Jonsson, Stakeholder Relations (250) 261-5789

36 Ministry of Energy & Mines Thank you www.em.gov.bc.ca www.ogc.gov.bc.ca


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