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Oil & Gas Regulations in BC

Oil & Gas Regulations in BC. Lance Ollenberger Deputy Commissioner Operations Engineering BC Oil and Gas Commission. Presentation Outline. Regulatory context Commission Experience Evolving regulatory landscape . 1. Regulatory Context.

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Oil & Gas Regulations in BC

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  1. Oil & Gas Regulations in BC • Lance OllenbergerDeputy Commissioner Operations EngineeringBC Oil and Gas Commission

  2. Presentation Outline Regulatory context Commission Experience Evolving regulatory landscape

  3. 1 Regulatory Context Regulatory context for the Commission is driven by two primary factors: 1 The nature & location of the oil & gas resources 2 The interface with other key regulatory bodies

  4. Liard Basin – Devonian • 9,340 sq km • OGIP – no estimate (large) • 3 wells • Daily production – 7.7 MMcf/d • Cumulative production 7.7 BCF • Horn River Basin – Devonian • 11,400 sq km • OGIP – 448 TCF • 202 wells • Daily production – 493 MMcf/d • Cumulative production – 440 BCF • Cordova Embayment – Devonian • 2,690 sq km • OGIP – 200 TCF (preliminary) • 22 wells • Daily production – 35.4 MMcf/d • Cumulative production 13.5 BCF • Montney – Triassic • 29,850 sq km • OGIP – 450 TCF (new estimate coming) • 1,335 wells • Daily production 1.7 BCF/d • Cumulative production – 1.76 TCF

  5. This is British Columbia’s Oil and Gas Landscape

  6. 1 Regulatory Context 1998 Commission was created under the Oil and Gas Commission Act. 2010 Modernizedunder the Oil and Gas Activities Act (OGAA).

  7. Oil and Gas Activities Act: Commission is a single-windowagency Land Act: Temporary Occupation of Crown Land Licence of Occupation Right of Way Water Act: Short Term Use of Water Changes in & About a Stream Water Licensing Forest Act: Master Licence to Cut Road Use Permit Other Enactments: Heritage Conservation Act Environmental Management Act

  8. Mission Protecting public safety Respecting those affected by oil & gas activities Conserving the environment Supporting resource development

  9. 1 Regulatory Context – Legal Context OGAA Technical Regulations Consultation and Notification Environmental Protection and Management • Drilling and Production • Geophysical Exploration • Pipelines Administrative Penalties Other

  10. 1 Regulatory Context – Accountabilities • General • Public reporting • Audits by Minister of Energy & Mines • Audits by Minister of Environment re: environmental protection & management • Financial audits • FOI legislation applicable • Decision specific • Administrative reviews • Oil & Gas Appeals Tribunal • Judicial review • Civil proceedings

  11. 2 Shareholder Commission Experience Corporate Structure Board of Directors Office of the Commissioner Corporate Services Engineering Operations Operations Engineering Resource Development Public Engagement Dispute Resolution Permitting Authorization

  12. 2 Commission Experience Stages of Oil & Gas Development Permitting Authorizations Compliance Resource Development Support Review Permitting Emergency Response Consultation Application Review Consultation Engagement Compliance Enforcement Emergency Response Technical Expertise Guidelines Restoration

  13. 2 Commission Experience – Aboriginal Consultation The Commission consults with First Nations on behalf of the Crown. Seek to avoid, minimize and mitigate impacts to Treaty and Aboriginal rights.

  14. 3 • Production • Increases Evolving Regulatory Landscape Future of oil and gas activities

  15. 3 Evolving Regulatory Landscape Shift to Liquified Natural Gas Facilities and Pipelines Increased demand Increased size

  16. Montney • Tight gas/shale • 15,281 sq km • 77-176 Tcf marketable gas • 577 Bcf cumulative production*

  17. 3 Evolving Regulatory Landscape Water Management Reduction in total water volume required Addressing cumulative effects of water withdrawal NEWT: Hydrology modelling & decision-support tool

  18. Oil & Gas Regulations in BC the legal framework • Lance OllenbergerDeputy Commissioner Operations EngineeringBC Oil and Gas Commission www.bcogc.ca

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