Coalbed Gas in B.C.

Coalbed Gas in B.C.

COALBED GAS in BRITISH COLUMBIA

Presentation to Canadian Institute

4th Annual Coalbed Methane Symposium

Rolf Schmitt, P.GeoB.C. Ministry of Energy and Mines

Calgary June 2005

• To Develop B.C.’s Coalbed Gas Resource Responsibly

Resource Stewardship Regulation Communities and First

Nations Environmental Program

Coalbed Gas in B.C.

4th Annual Canadian Institute CBM Symposium

GOAL:

Coalbed Gas in B.C.Resource Potential

90 TcfResource pot’l

50 wells since1999

13 wells drilledIn 2004

1 pilot project

Coalbed Gas in B.C.Recent Drilling

Coalbed Gas in B.C.Recent Drilling

Coalbed Gas in B.C.Recent Drilling

Gething Fm - Hudsons Hope

Coal thickness & resource potential

Coalbed Gas in B.C.Geoscience Studies

Hudsons Hope

Resource Certainty

Coalbed Gas Act, Petroleum and Natural Gas Act

Freehold coal agreements

First Nation relationships

Completed land use plans

Coalbed Gas in B.C.Attracting Investment

4th Annual Canadian Institute CBM Symposium

Coalbed Gas Royalty RegimeProducer cost of service, produced water

allowance

Royalty bank for excess allowance deferral

Marginal well adjustment factor increased to 600,000 cf/d from 180,000 cf/d

$50K royalty credit for CBG wells drilled before July 1/08

Coalbed Gas in B.C.Attracting Investment

4th Annual Canadian Institute CBM Symposium

Coalbed Gas in B.C.Regulation

Resource PolicyFramework

Primary RegulatorApplications, C&E

Environmental PolicyEMA Authorizations

Crown Land andResource Policyand Plans

4th Annual Canadian Institute CBM Symposium

Public

LocalGovernment

First Nations

Coalbed Gas in B.C.Regulation

Staged Approach to ResponsibleResource Management and Regulation

LandAir

WaterWildlife

People

4th Annual Canadian Institute CBM Symposium

Before Lease Construction

DrillingAfter

Coalbed Gas in B.C.Regulation – Case History

Coalbed Gas in B.C.Regulation – Case History

Princeton Coalfield CBG drill site

Public Involvement CommitmentPre-tenure review and commentOGC requirements for public inputFirst Nations consultationWebsite materials and publicationsOutreach and educationMarketing and Community Relations BranchEnvironmental Resource Information Project

Coalbed Gas in B.C.Communities

4th Annual Canadian Institute CBM Symposium

Purpose: Contribute to responsible

CBG development

Outcomes: Increased access to

existing environmental baseline data

New baseline information

First Nations and Community involvement in project delivery

Coalbed Gas in B.C.Environment

Environmental Resource Information Project

4th Annual Canadian Institute CBM Symposium

Coalbed Gas in B.C.ERIP 2004 Highlights

4th Annual Canadian Institute CBM Symposium

Bringing science to your community

Online environmental bibliography of over 2000 references – 13 coalfields

Baseline stream water chemistry / aquatic invertebrate surveys

Aquifer mapping and groundwater observation well installation

Ungulate winter range survey

Community and First Nations collaboration

Coalbed Gas in B.C.ERIP 2004 Highlights

4th Annual Canadian Institute CBM Symposium

Enhanced public access to available environmental knowledge base of coalfields

New biophysical inventories fill knowledge gaps and inform the regulator

Building relationships with community groups, First Nations, local government and others

Complements industry requirements, other scientific study initiatives, and Crown land use plan implementation activities

Coalbed Gas in B.C.ERIP Benefits

4th Annual Canadian Institute CBM Symposium

What’s New in B.C.

• New Geoscience Studies• New CBG website and publications

(MEM and OGC)• New Community Relations Branch • Environmental programs • Communication of all facets of responsible

development

Coalbed Gas in B.C.

SUMMARY

Coalbed Gas is part of B.C.’s energy future

Resource stewardship + clear regulation + public engagement = responsible development

Coalbed Gas in B.C.

4th Annual Canadian Institute CBM Symposium

THANK-YOU!www.coalbedgas.gov.bc.ca