The British Columbia Ministry of Energy and Mines has entered into an agreement with four coal owners in the province that would give them the opportunity to apply to develop petroleum and natural gas rights, including coalbed methane (CBM). The BC and Yukon governments also agreed to work on cooperative plans in the event the Alaska Highway natural gas pipeline is approved.

The four companies entering into the agreement with the British Columbia on CBM development were Elk Valley Coal Partnership, East Kootenays; Quinsam Coal Corp., Vancouver Island; Tembec Industries Inc., East Kootenays; and Weldwood of Canada Ltd., Vancouver Island. The agreement recognizes the coal owners’ interest in managing the coal resource and supports “responsible, sustainable and efficient” development of CBM in BC to benefit the region.

Under the agreement, the companies may, until Dec. 31, 2008, apply for petroleum and natural gas tenures of their coal lands. Each individual application must be approved by the provincial regulators. The tenures would have an initial term of five years in the Kootenays and three years on Vancouver Island. They could be extended for an additional five years if the company has an active development program. Applications would be subject to a standard process, which involves local governments, First Nations and provincial agencies. Special caveats may be placed to reflect local conditons and concerns, said BC authorities.

Once the petroleum and gas rights are secured, the company may apply to the BC Oil and Gas Commission for permission to drill wells. As part of this process, companies will have to demonstrate how they will consider the concerns of stakeholders, and all of the impacts would be considered before approval is given.

In other news, BC Premier Gordon Campbell and Yukon Premier Dennis Fentie have signed an agreement to work together on natural resources, as well as environmental protection and health care. The partnership, among other things, is designed to develop the provinces’ offshore oil and gas resources and the possible Alaska Highway natural gas pipeline project.

The two jurisdictions are considering shared geological research to promote development of the Liard Plateau and the Whitehorse Trough/Bowser Basin. The planned route of an Alaska Highway pipe would pass through BC and Yukon on its way to major U.S. cities.

To learn more about BC’s agreements, visit www.gov.bc.ga.

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