Home » News Stories » Oil and gas commissioner: no problems with Shell yet

This page contains annotated news stories and press releases with commentary about land reform and the democratic process in British Columbia. Our comments are shown in red.

Oil and gas commissioner: no problems with Shell yet

Jul 22, 2008
THE PROVINCIAL government's oil and gas regulator so far hasn't had
    any issues with Shell's plans to drill for coalbed methane natural gas
    in the Klappan area, its representatives say.

    Approvals for three wells drilled in 2004 and approvals to drill up to
    14 more starting this fall in the area north and to the east of here
    all met guidelines, says Alex Ferguson, the commissioner with the
    provincial regulator known simply as the Oil and Gas Commission.

    "There's no hydrogen sulphide here, which is extremely dangerous, and
    there's no high pressure gas issues here," he said.

    "The equipment footprint here is smaller [than with other drilling]
    and it's the same drilling equipment that you would use to drill a
    water well with," Ferguson added.

    Shell's plans, so far, haven't come close to triggering more
    comprehensive environmental assessments that would be required by, for
    example, mining companies or other resource users.

    As for Shell itself, Ferguson said the commission prefers dealing with
    large companies who already know the rules and regulations.

    "They have pretty sophisticated planning. At least we know they've got
    the ability. It's a matter of reminding them of that," he said.

    Ferguson and another commission official, Steve Simons, were in
    Terrace July 14 at the invitation of Terrace city council to explain
    how the commission works.

    That was the first day of a two-day Shell open house here explaining
    its Klappan plans and the day before a anti-Klappan drilling rally was
    held here.

    Environmental groups, individuals and some Tahltan whose traditional
    territory takes in the Klappan say the prospects of environmental
    damage from drilling aren't worth the risk.

    Ferguson and Simons said the timing of their meeting with council was
    a coincidence.

    And, they said, the commission has no part in the discussions or
    approvals as to whether Shell should be in the Klappan or not.

    "That tenure's been sold," said Ferguson of the deal struck back in
    2004 in which Shell bought drilling rights from the provincial
    government. "We get involved after tenure's been sold."

    Simons said the commission makes sure the applications are technically
    sound and working within the laws of the province, as well as ensuring
    that oil and gas exploration are done in a safe manner.

    "We act on the public's behalf," Simons said.

    Ferguson said the commission's level of involvement will increase if
    and when Shell's drilling turns up enough information for it to think
    it could have a commercially viable venture on its hands.

    If Shell does find enough natural gas to justify a large-scale
    project, that means it'll need to build a pipeline south.

    That'll trigger another response by the commission since it has the
    responsibility for pipelines that start and end in B.C.

    Pipelines that cross provincial borders generally fall under the
    jurisdiction of the federal National Energy Board.

    There are about 300 companies involved with oil and gas exploration
    operating in the province.