Quebec warns it might slap ban on shale-gas develohttps://ca.finance.yahoo.com/news/Quebec-warns-might-slap-ban-capress-634751245.html?x=0
Quebec warns it might slap ban on shale-gas development if industry isn't clean
Jocelyne Richer, The Canadian Press, On Friday January 21, 2011, 11:40 pm EST
By Jocelyne Richer, The Canadian Press
LAC-BEAUPORT, Que. - The Quebec government surprised observers by warning Friday it might not allow natural-gas development to proceed in the province.
The hardened tone from the government came after another report of leaks from an exploration well — this time in Lotbiniere, just southwest of Quebec City.
The statements from Premier Jean Charest and one of his ministers came after many months in which the government had sounded gung-ho about the potentially lucrative industry.
"The exploitation of shale gas will be done correctly on our territory — or it won't happen," Charest told reporters outside a Liberal caucus retreat.
He was echoing the comments of Quebec Environment Minister Pierre Arcand, who said he had concerns about the safety of wells.
"I get the sense the industry isn't in control of the situation," Arcand said, adding that he was "extremely preoccupied by what's going on" and that he was "asking (himself) some questions."
But Quebec hasn't quite declared a moratorium yet.
The government says it will wait to see a study from the provincial impact-assessment board next month before deciding how to proceed.
The terms of reference for that report don't actually ask for the board's opinion on whether to stop drilling — but merely for advice on how to regulate the industry to limit environmental damage.
Quebec's oil and gas association agreed Friday that all gas exploration and exploitation should be done in an environmentally and socially responsible manner.
The organization also highlighted how the industry has years of experience to draw from.
"It's important to understand all potential scenarios in order to prevent them," association director Stephane Gosselin said in a statement.
"Each industry has its risks and we know ours."
The association added that Quebec is still in an exploratory phase and no exploitation is expected in the near future.
But the province's shale formations do pack potential.
Quebec is sitting on vast natural-gas deposits, with potentially billions in royalties and billions of cubic feet in untapped resources.
However, in a province without a history of oil-and-gas drilling but where there is a strong environmental movement, the emerging industry is proving to be controversial.
In the latest report about leaks from wells, officials from the province's Natural Resources Department detected abnormally high levels of natural gas in the soil during an inspection in Lotbiniere last fall.
Talisman Energy (TSX:TLM) has been working for several weeks to limit the level of gas released from one particular well.
A number of Quebec environmentalists have been asking for a complete shutdown of the wells and for a moratorium on the province's natural-gas industry.
One group offered faint praise for the government Friday.
"Mr. Arcand seems to have woken up, finally, and decided to do his job as environment minister — but he'll need to do more than that," said Christian Simard, director-general of Nature Quebec.
"They should totally shut down those wells, declare a moratorium, and be perfectly transparent."
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