Slide 1Coalbed Methane on Vancouver Island Courtenay, March 2007 Coalbed Methane on Vancouver Island Shane Simpson MLA Vancouver – Hastings NDP Environment.

Courtenay, March 2007

Slide 1Coalbed Methane on Vancouver Island

Coalbed Methane on Vancouver Island

Shane Simpson MLA Vancouver – HastingsNDP Environment Critic

Arthur CaldicottIntroduction

John HorganMLA Malahat – Juan de FucaNDP Energy Critic

Todd ButlerCoalbed Methane Song



Coalbed methane

is also known as

CBM

Coalbed gas

CBG

Natural gas from coal



Water removal

It requires many wells to efficiently dewater coal

Typical project: 100 – 300 – 600 wells



Inside a coalbed methane well

Infrastructure per well:

•Water pipeline

•Gas pipeline

•Road

•Power



Production curve

Local construction activity is in first year or two

Most work is done by mobile, non-local crews



CBM well sites & production field



Encana pilot projectin East Kootenay



Bubbling methane

Common where there are other wells and intrusions into or near a dewatered coalfield

Compressor station



Coalbed methane “Royalty Regime”

landowners may negotiate access feeFirst Nations may negotiate small revenue sharing (eg. 1%)



Drilling rights and tenures

• Rights sales notices posted monthly

• Completed a month later

• Highest bidder wins

• Many sales made to purchasing agents

• Title searches required to discover true owner

• No “filters” for reputation, financial stability, or professional competence



Cumulative impacts assessments & Baseline studies

•Inadequate or non-existent

•No environmental assessment required

•Oversight & permits from Oil and Gas Commission – whose mandate is to foster development



What’s in it for my community?Direct revenue

Spin off construction $

Short term jobs

Long term employment

Environmental

Water

Aesthetic

None

Hotels, restaurants, bars

See above, construction

Handful of jobs

Unavoidable impacts

Increased risks

Unavoidable impacts



La Plata County Impact Study

• primary economic impact to county is revenue from CBM well production sales. NOT IN B.C.!

• little impact to employment, per capita income, population, or housing.

• properties with a CBM well located on them … have had a net reduction in sales value of 22%

• Alberta study found 10% reduction in property values



Priority Ventures flares up & out

2001/02: Drilling on outskirts of Courtenay

May 2002: Well flared briefly for reporters, then capped

Oct 2002: Trading suspended & company later delisted

Mar 2004: BC Securities Commission forced company president to resign, for Securities Act violations



SLAPP happy – come & gone

Spiro Vassilopoulos is the “V” in VWVulcan Energy of Canada, Ltd.



RDCS/UBCM resolution

Regional District Comox Strathcona asked for halt to further activities, recognizing issues with:

• produced water

• baseline studies and appropriate regulations, etc.

• consultation with landowners, communities, First Nations

Approved September 2003 by Union of BC Municipalities



Communities calling for a halt•Okanagan-Similkameen Regional District

•Princeton

•Fernie

•Iskut

•Smithers & Telkwa

•Peace River RD

•Hudson’s Hope

•Hat Creek First Nations & ranchers

•Comox Strathcona RD

•Union of BC Municipalities, Sept 2003



Coalbed methane distribution

90 tcf



Watersheds

define the natural ecology

most vulnerable to coalbed methane activity

coal sub-basins are named after the dominant rivers in each watershed



Three reasons why coalbed methane may heat up on

Vancouver Island

2007 Throne Speech and Energy Plan

•Produced water reinjection requirement

•“Best practices” statement

•signalled renewed push by BC government



Quinsam & West Fraser Own considerable coal rights on Vancouver Island

Have P&NG rights acquisition agreement with BC government

Agreements expire end of 2008



Snuneymuxw & ChemainusFirst Nations

Homalco, Chemainus & Snunymuxw FNs formed partnership with Akita Drilling of Calgary

Naut’samawt Tribal Council (NmTC) sees coalbed methane as economic opportunity

Toured coalbed methane project in Alberta in 2006 hosted by NmTC, Akita & Quicksilver Resources



Concerns with coalbed methanedevelopment on Vancouver Island

•Water and watershed impacts

•Land values

•Fish habitat

•Agriculture, tourism, retirement in-migration



Thank-you

Copies of this slideshow available from Comox NDP

[email protected]

or download from

http://tinyurl.com/yvjrxm

(Please note, this file is 4.65 MB – quite large – and you must have PowerPoint installed on your computer to run it.)

Slide 1Coalbed Methane on Vancouver Island Courtenay, March 2007 Coalbed Methane on Vancouver Island Shane Simpson MLA Vancouver – Hastings NDP Environment.

Documents

vancouver island courtenay

coal slide

tcf slide

watershed slide

development slide

coalbed methane distribution

bc government slide

east kootenay slide