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Coalbed Methane on Vancouver Island

Coalbed Methane on Vancouver Island. John Horgan MLA Malahat – Juan de Fuca NDP Energy Critic. Shane Simpson MLA Vancouver – Hastings NDP Environment Critic. Todd Butler Coalbed Methane Song. Arthur Caldicott Introduction. Coalbed methane is also known as CBM Coalbed gas CBG

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Coalbed Methane on Vancouver Island

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  1. Coalbed Methane on Vancouver Island John HorganMLA Malahat – Juan de FucaNDP Energy Critic Shane SimpsonMLA Vancouver – HastingsNDP Environment Critic Todd ButlerCoalbed Methane Song Arthur CaldicottIntroduction Courtenay, March 2007

  2. Coalbed methane is also known as CBM Coalbed gas CBG Natural gas from coal Courtenay, March 2007

  3. Water removal It requires many wells to efficiently dewater coal Typical project: 100 – 300 – 600 wells Courtenay, March 2007

  4. Inside a coalbed methane well • Infrastructure per well: • Water pipeline • Gas pipeline • Road • Power Courtenay, March 2007

  5. Production curve Local construction activity is in first year or two Most work is done by mobile, non-local crews Courtenay, March 2007

  6. CBM well sites & production field Courtenay, March 2007

  7. Encana pilot projectin East Kootenay Courtenay, March 2007

  8. Bubbling methane Compressor station Common where there are other wells and intrusions into or near a dewatered coalfield Courtenay, March 2007

  9. Coalbed methane “Royalty Regime” landowners may negotiate access feeFirst Nations may negotiate small revenue sharing (eg. 1%) Courtenay, March 2007

  10. 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 Courtenay, March 2007

  11. 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 Courtenay, March 2007

  12. 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 Courtenay, March 2007

  13. 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 Courtenay, March 2007

  14. 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 Courtenay, March 2007

  15. SLAPP happy – come & gone Spiro Vassilopoulos is the “V” in VWVulcan Energy of Canada, Ltd. Courtenay, March 2007

  16. 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 Courtenay, March 2007

  17. 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 Courtenay, March 2007

  18. Coalbed methane distribution 90 tcf Courtenay, March 2007

  19. Watersheds define the natural ecology most vulnerable to coalbed methane activity coal sub-basins are named after the dominant rivers in each watershed Courtenay, March 2007

  20. Three reasons why coalbed methane may heat up onVancouver Island • 2007 Throne Speech and Energy Plan • Produced water reinjection requirement • “Best practices” statement • signalled renewed push by BC government Courtenay, March 2007

  21. Quinsam & West Fraser Own considerable coal rights on Vancouver Island Have P&NG rights acquisition agreement with BC government Agreements expire end of 2008 Courtenay, March 2007

  22. 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 Courtenay, March 2007

  23. Concerns with coalbed methanedevelopment on Vancouver Island • Water and watershed impacts • Land values • Fish habitat • Agriculture, tourism, retirement in-migration Courtenay, March 2007

  24. Thank-you Copies of this slideshow available from Comox NDP bcharlton@shaw.ca 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.) Courtenay, March 2007

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