Shale Gas The Qubec situation Normand Mousseau Physics Department - PowerPoint PPT Presentation

Shale Gas The Québec situation Normand Mousseau Physics Department Université de Montréal AVGLSL, June 2011

" A Primer for Understanding Canadian Shale Gas , National Energy Board of Canada (2009)

Size: 13 000 km 2 Age: Ordovician (-450 millions years) Depth: 1 to 5 km Thickness: 90 to 300 m Organic content :1 to 3 % Reserves: 3,4 Tm 3 total 0.7 Tm 3 exploitable Canada conventional gas: 1,75 Tm 3 A Primer for Understanding Canadian Shale Gas , National Energy Board of Canada (2009)

A brief history of shale gas development in Québec No history of oil & gas production (only a couple of gas wells, none in the last 30 years) The existence of shale gas was known for many decades. Exploration started seriously a few years ago, but slowly. Only 30 wells have been drilled as of today Major opposition from local population, environmentalists, scientists and municipalities since April 2010 Study by the Bureau of public hearings on environment launched by the provincial government in August 2010, report published in March 2011 A Strategic environmental evaluation is now underway with controlled drilling.

Economic Issues Why this opposition ?

• Underground resources belong to • Underground resources belong to owner of the surface rights state • Little control from governments • Most governments control development (except Québec) • Exploration rights: 28 k$ / hectare • Most exploration rights sold through • Royalties: 12 to 25 % (paid to owner) auction (not Québec - fixed rate of 0.10 $/hectare) • Additional due to local governments • Royalties: 12 to 15 % (minus generous fiscal benefits) • Nothing paid to surface owners or municipalities

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The Public Hearing Bureau on Environment's Report

MANDATE To propose a framework for the development of the exploration and exploitation of shale gas that will foster a harmonious coexistence of these activities with the affected population, environment and other sectors in the territory. To provide guidance for the development of a legal and regulatory framework that will ensure a safe development of this industry in respect of sustainable development.

199 memoirs Report: 101 recommendations et 43 observations Main recommendation: A strategic environment evaluation

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