By September 22, 2017 Read More →

Quebec government publishes draft oil and gas regulations

Squatex Resources & Energy oil and gas licensed acreage in Quebec.

Quebec-based companies preparing to expand oil and gas exploration

The Quebec government has set out new regulations for oil and gas development in the province and industry is praising the approach, which it says balances development with high standards of environmental protection.

The Petroleum Resources Act replaces the Quebec Mining Act. No date has yet been set for when the act and the regulations, which include compliance with greenhouse gas emission reduction targets set by the Quebec government, will be enacted.

Michael Binnion, Questerre Corp.

The draft regulations cover four main categories: licenses (exploration, production, storage, etc.) and pipeline construction, activities on land environments, activities on water environments (excluding marine environment), and the repeal of the existing Regulation respecting Petroleum, Natural Gas and Underground Reservoirs, which was adopted under the Quebec Mining Act.

Michael Binnion, president and CEO of Questerre Energy Corp., believes the input provided by his company offered important guidance for the government.

“Our step by step approach to engaging with the government and other stakeholders is working. Consistent with their timeline, the Ministry published the draft regulations on schedule,” he said in a press release.

Binnion says that his preliminary review suggests the regulations reflect some of the highest standards in North America for oil and gas activity.

“They incorporate the results of over a hundred studies conducted in Quebec and best practices in other jurisdictions. They are designed to facilitate development while recognizing the importance of protecting the environment and securing local acceptability,” he said.

“Along with other license holders in Quebec, we will be studying these regulations in detail and providing feedback to the Ministry. We are looking forward to the implementation of the final regulations by year-end.”

Squatex Resources & Energy Inc., located in Brossard, Que. says the draft regulations are “in line” with its corporate priorities. The company has oil and gas licenses of some 224,933 hectares (555,809 acres). Exploration permits are cover an area of the prospective natural gas zone of the Utica Ordovician shales.

“Squatex intends to actively explore these targets that do not require hydraulic fracturing. Numerous examples of dolomitized fields (Ontario, Michigan, northwestern New York) show the excellent potential of calcareous formations transformed into dolomites by the circulation of hydrothermal fluids from faults,” the company said in a press release.

Squatex says it has innovated in Quebec using small-diameter drilling techniques that can achieve the same results more accurately than using large diameter conventional oil drills that consume more fuel, more water. and that use more space on the ground.

Questerre says it has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan, is bringing on production in the high-liquids Montney shale fairway, and “is a leader on social license to operate issues for its Utica shale gas discovery in the St. Lawrence Lowlands, Quebec.”

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