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Certified Energy Advisor Joy Beauchamp stands in front of a blower door as she checks air leakage rates as part of a LiveSmart BC: Efficiency Incentive Program house assessment
More Energy Evaluators Help Green B.C.
A Provincial/Federal partnership, providing $370,000 for the Energy Efficiency Employment Development Initiative was announced in March 2009. The funding will create new sustainable employment opportunities for British Columbians in the province’s green economy.
The money will be used to fund two energy efficiency training programs, which includes the Residential Energy Efficiency Employment Development (REEED) program and the Industrial/Commercial/Institutional Energy Efficiency Employment Development (ICI EEED) program. These programs will provide training and employment opportunities for 50 unemployed or underemployed people.
The Vancouver Island University in partnership with City Green Solutions has been awarded almost $250,000 to develop and offer the REEED program. And Sustainable Community Enterprises, in partnership with ASPECT and the Environmental Youth Alliance has been awarded $120,000 to coordinate and offer the ICI EEED program.
There are currently over 100 residential energy evaluators in the province certified by Natural Resources Canada for the LiveSmart BC: Efficiency Incentive Program and the federal ecoENERGY Retrofit – homes program. It is estimated that additional residential evaluators will be needed to meet the future demand for energy efficiency upgrades for homes in British Columbia.
The Energy Efficiency Employment Development Initiative supports the Energy Efficient Buildings Strategy: More Action, Less Energy, released on May 22, 2008.
Funding for the partnerships is provided by the Government of Canada through the Canada-B.C. Labour Market Agreement (LMA). Under the LMA, each year for the next six years, the Government of Canada will provide approximately $66 million to the Province.
LiveSmartBC
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Royalty Programs Stimulate B.C. Oil and Gas Development
The oil and gas industry in B.C. faces unique challenges that can impact industry development, including complex geography, remoteness, and an immature infrastructure.
Recognizing these challenges, the provincial government is putting targeted royalty programs in place designed to increase and maintain activity in northeast B.C. and open up new opportunities for future development. These targeted royalty programs are key to industry success. Without specifically targeted royalty programs many wells, including marginal, ultra-marginal and expensive deep, would not be drilled or would be abandoned.
Since 2002, British Columbia has implemented several royalty programs, including: Marginal and Ultra-Marginal Royalty Program, Deep Royalty Credit Program, Coalbed Gas Royalty Program, Summer Royalty Credit Program, Net Profit Royalty Program and Infrastructure Royalty Credit Program. All are designed to increase competiveness, generate incremental activity, encourage year-round oil and gas activity in the province, and increase royalties to the Crown.
Recently the Ministry of Energy, Mines and Petroleum Resources announced improvements to the Deep Well Royalty Credit program. Three changes have been introduced to the program, which includes modification of the location of the east/west line to reflect updated geological, reservoir and drilling data, recognition of longer portions of horizontal lengths drilled, and improvements to the well qualification criteria.
The Province is encouraging infrastructure development with a request for applications to oil and gas companies operating in British Columbia to participate in the 2009 Infrastructure Royalty Credit Program. Since 2004, the Infrastructure Royalty Credit Program has allocated over $316 million in infrastructure royalty credits to oil and gas companies, resulting in 72 new road-based projects and 53 new pipeline projects, representing new total capital investment in B.C. of over $632 million.
A Request for Applications (RFA) for the Net Profit Royalty program closed on February 27. The RFA was an invitation to industry to submit projects that may meet eligibility for Net Profit Royalty. Projects eligible for submission for this RFA were restricted to shale gas projects in the Horn River Basin and enhanced oil/gas recovery projects.
These are part of an economic and competitiveness strategy designed to stimulate investment and activity in British Columbia’s oil and gas industry.
[Royalty Program to Encourage Infrastructure Development]
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This bridge over the Fort Nelson River was opened in November 2004 as part of the Sierra Yoyo Desan Road
$187 Million Upgrade to SYD Road to Provide Jobs and Improved Access
The Province is providing $187 million in funding over four years to upgrade the Sierra Yoyo Desan (SYD) Road in the Horn River Basin, which will create over 1,150 jobs.
The Province is providing funding as follows: $16 million for 2008/09, $21 million in 2009/10, $86 million in 2010/11 and $64 million in 2011/12.
The 188 kilometre SYD road provides all-season access to over 27,000 square kilometres of oil and gas exploration and development territory in northeast British Columbia, including the Horn River and Cordova Embayment shale gas developments. The SYD road facilitates drilling and construction activities on a year round basis, contributes toward a stable and growing British Columbia-based service industry, and enhances Provincial revenues.
Since 2004, the SYD road has enabled access to the drilling of an average of 170 conventional natural gas wells per year, generating over $1 billion dollars in royalty revenues.
The upgrades to the SYD road are required in order to handle the significant increase in traffic volume resulting from the development of the Horn River and Cordova Embayment areas. The road will support industry investment and enable a shift in the nature of oil and gas activity in the region from conventional to shale gas development.
Following this $187 million provincial investment, road maintenance for the SYD road will continue under the current successful P3 partnership agreement.
It is expected that the upgrades and economic benefits to the region will enable significant employment and business opportunities for Fort Nelson and local First Nations. The large project scope will also afford opportunities to local contractors from Fort St. John, Taylor, Dawson Creek, Chetwynd and Tumbler Ridge.
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Women are an asset in the oil and gas industry workforce
Oil and Gas Opportunities for Entrepreneurs and Women
Soon more people will be qualified to obtain employment in B.C.’s lucrative oil and gas industry, thanks to two new career development programs offered under the Federal/Provincial Labour Market Agreement. The programs, Petroleum Field Services Entrepreneur Training and Professional Driver Training for Women, will provide the skills and training needed to help hard-working British Columbians develop the skills they need to create and find good jobs and provide for their families.
The Petroleum Field Services Entrepreneur Training is a business training program tailored for the petroleum sector. It will provide potential entrepreneurs with the tools to start their own business providing goods or services to oil, gas or pipeline companies operating in British Columbia.
The Professional Driver Training for Women program is a pilot training program that will tap into a non-traditional oil and gas industry labour source. Upon completion, participants will receive their Class 1 Driver's licence with air brake endorsement, safety skills and certifications required by the industry and sufficient number of driving hours required to work as a professional driver.
Last fall, the Northern BC Newcomers Integration Services Centre (NISC), an immigrant social services agency, was established under the Labour Market Agreement. The role of the NISC is to assist immigrants and others entering the oil and gas industry and provide support for securing employment and settling in a new community as well as serve as a job matching services point for employers.
This service has been contracted to S.U.C.C.E.S.S., a multi-service agency in B.C.
Under the Labour Market Agreement, each year for the next six years, the Government of Canada will provide approximately $66 million to the Province. Through a variety of programs, these funds will increase training for employed individuals who are low-skilled and require essential skills, or who require recognized credentials to reach their full potential in the current marketplace. They will also help increase access to training for unemployed individuals who are not currently Employment Insurance (EI) clients including but not limited to those who are underrepresented in the labour market.
[Career Development Initiatives Offered for Oil and Gas]
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The Honourable Blair Lekstrom
Minister of Energy, Mines, and Petroleum Resources
Minister's Message
This year started off in high gear with my appointment as Minister of Energy, Mines and Petroleum Resources, taking the reins from my friend and colleague Richard Neufeld after he was named to the Senate.
It’s both an exciting and challenging time to take on the Energy portfolio in British Columbia. The global economic downturn and the cyclical nature of the resource industry have created concerns that didn’t exist a year ago. However, B.C. is resilient, and we are confident that by continuing on the course set out in the BC Energy Plan and BC Mining Plan, we are laying the foundation necessary to keep B.C. strong.
In January I attended the Premier’s two Economic Summits focusing on economic priorities to mitigate the effects of the global economic downturn in British Columbia. During the Northern Economic Summit in Prince George I had the opportunity to reconnect with community and industry leaders, and fellow Peace River residents. My ties with the North provide me with personal insight into the vital importance of B.C.’s resource industry to all of British Columbia.
The province’s oil and gas development strategy has led to unparalleled increases in drilling activity, production and provincial revenues. Building on infrastructure in the North is critically important for B.C.’s long-term economic success. In March I announced several important initiatives that will strengthen community well-being, service sector growth and diversity in the northeast. We know we want to proceed, and perhaps accelerate the electrification of Highway 37. There is an opportunity for us to access federal contributions for this and we’re going after this money.
We continue to explore alternative sources of clean energy for the Province, including wind, biomass, gasification, run-of-river, tidal, hydrogen, and solar. Independent power projects are providing essential jobs in rural B.C., bringing more than $4 billion in investment and economic benefits to the region.
Biomass energy development remains strong and B.C. continues to lead the country in this area. Beetle kill in our northern forests has prompted diversification in many areas and we continue to look for ways to reduce its economic impact. The QUEST/QUEST-West geoscience projects continue to stimulate spending in mineral exploration, which reached $367 million in 2008, paving the way for new mining opportunities in B.C.
At the BC Power Conference in January, industry leaders explored the progress of alternative energies and the impact of regulations on the industry for long-term needs planning. B.C. is proud to be leading Canada with our commitment to being electricity self-sufficient by 2016. Through energy efficiency programs such as Livesmart BC: Efficiency Incentive Program, British Columbians can be part of the solution by making energy saving changes to their homes. To date, Efficiency Incentive Program participants have saved more than 16,304 tonnes of greenhouse gas emissions per year, averaging 2.59 tonnes per house/year.
B.C. has an amazing abundance of natural resources and in the coming months I look forward to building relationships and working with industry, communities and First Nations to ensure that B.C. remains at the forefront of responsible energy management and development.
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Mountain Pine Beetle devastation in interior B.C. forest
B.C. Leads the Way on Bioenergy
British Columbia is creating opportunities in the wake of the mountain pine beetle devastation by encouraging innovative bioenergy and biomass solutions that are delivering economic benefits to regions ravaged by the beetle.
BC Bioenergy Network
The $25-million provincially funded BC Bioenergy Network (BCBN), under the direction of its new executive director, Michael Weedon, is supporting the development of world-class bioenergy research and technology. In February, BCBN awarded almost $5 million in funding to two biomass pilot projects.
Lignol Innovations Ltd. will receive $1.8 million in funding. Lignol uses biorefining technology to turn wood waste into fuel-grade bioethanol and biochemicals. In the future this technology could support powering our vehicles by woodchips.
A further $3 million in funding will be allocated to Nexterra Energy Corp. Nexterra develops systems that turn wood waste into clean, renewable heat and power using biomass gasification technology.
The two projects support the BC Bioenergy Strategy which aims to reduce greenhouse gas emissions, strengthen B.C.’s long-term competitiveness and help us reach the goal of becoming electricity self-sufficient by 2016.
Wood pellets are another innovative solution for realizing economic benefits from beetle wood and wood residues. Over 90 per cent of the one million tonnes of wood pellets produced from beetle kill were shipped to overseas markets in 2008. Wood pellets are also providing economic opportunities for First Nations. In January, an economic development agreement was signed with four Secwepemc First Nations to assist in the harvest of mountain pine beetle timber and support the construction of a wood pellet plant near Kamloops.
When used for pellets and other energy production, biomass is considered carbon-neutral because it releases no more carbon into the atmosphere than it absorbs during its lifetime.
BC Hydro Phase Two Call For Power
The second of BC Hydro’s two-phase Bioenergy Call for Power was announced on March 5, 2009. Phase Two will further develop larger-scale biomass projects and innovative, community-level electricity supply solutions using biomass. The Call focuses on converting forest-based biomass into clean, carbon-neutral electricity while helping to diversify rural economies.
The first phase of BC Hydro’s Bioenergy Call for Power, conducted in 2008, resulted in the selection of four biomass projects. The projects generate a combined total of 579 gigawatt hours of electricity annually, or enough to power more than 52,000 homes.
B.C. is committed to turning challenges into enduring economic and environmental benefits by promoting new sources of sustainable and renewable energy in order to take advantage of B.C.’s vast amounts of pine-beetle attacked timber and other biomass resources.
Click below for more information;
[$5 Million Strengthens B.C.’S Clean Energy Leadership]
BC Bioenergy Network
[BC Hydro Launches Second Phase for Bioenergy Call for Power]
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Installation of heat recovery vents improves energy efficiency
CAEE Communities Go For the Gold
British Columbia communities are leading the way in energy efficiency and conservation through the Community Action on Energy and Emissions (CAEE) award program in B.C.
Of these communities, most recently four have been awarded the CAEE Gold program status - The Corporation of Delta, the City of Prince George, the City of Surrey and the T’Sou-ke First Nation. Each of these communities will receive a $50,000 funding allocation to reflect the community’s commitment to implement innovative measures to conserve energy, reduce greenhouse gas emissions, and undertake unique policy approaches that can be used by other communities who face similar challenges.
The CAEE Gold program recognizes communities who demonstrate a higher level of leadership in innovation and implementation of policy and planning initiatives which advance conservation and energy efficiency activities. These innovations can be used by other communities who face similar challenges. The program is a collaboration of the ministries of Environment, Community Development and Energy, Mines and Petroleum Resources, as well as several other community partners including BC Hydro, the Fraser Basin Council, Community Energy Association, FortisBC, Terasen Gas and the Union of BC Municipalities. The provincial and federal governments have contributed almost $1.7 million into the CAEE program so far.
Another CAEE call is planned for this summer. It will be available to all B.C. communities that have committed to conserve energy, reduce greenhouse gas emissions, and undertake unique policy approaches.
[B.C. Communities Lead in Energy Efficiency Innovations]
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New Initiatives for Northeastern B.C.
Community well-being, service sector growth and diversity were the focus of several announcements made by Minister Lekstrom in his home riding of Peace River South during spring break as he visited the Chambers of Commerce in Fort St. John and Dawson Creek, and attended the inaugural Service Sector Advisory Committee meeting.
A package of innovative, community-based initiatives designed to enhance community life and improve relations between landowners and industry in the northeastern part of the province was announced.
Initiatives included accelerating the BC Energy Plan goal to eliminate routine flaring before 2016 and implementing a regional “good neighbour” initiative to focus on matters of concern such as speed and dust control.
Services available to landowners to assist in the better understanding of property rights, negotiations, and access to information will be expanded. An Independent Farmer Advocate position will be created to work directly with private landowners to provide support when they are engaging industry.
The Province will also review professional designation and licensing requirements for Land Agents, building on the Code of Conduct for Land Agents developed in collaboration with community and oil and gas industry representatives.
Landowners who receive notifications of sale of the subsurface tenure will now receive an enhanced information package including a standard surface lease agreement. The agreement should help facilitate negotiations between landowners and industry when industry access to private land is required.
The Province will also review an enhanced role for the Mediation and Arbitration Board to further improve processes for landowners. This role may include allowing landowners to file for compensation from damage from an activity and assisting in resolving disputes arising from non-compliance with the surface lease agreement.
At the inaugural Service Sector Advisory Committee, the minister announced $30,000 in a contribution agreement with Energy Services BC to develop a free, online searchable database of B.C. service sector businesses for oil and gas companies searching for local procurement.
Additionally, two Procurement Help Offices will be opened, one in Fort Nelson and the other in Dawson Creek, to help service sector companies navigate the complex procurement standards required by oil and gas companies. The Offices will act as liaison between oil and gas companies working in the area and local service sector companies.
The Service Sector Advisory Committee is tasked with supporting the growth of the oil and gas service sector in British Columbia by providing expert knowledge to assist in the identification of priority issues and developing recommendations to address opportunities and challenges to economic development. The Committee consists of industry experts, economic development officers and service sector businesses.
Oil and gas activities play a vital role in B.C.’s economy, generating significant economic wealth and employing thousands of British Columbians. The Province is committed to working with industry, local communities and First Nations to build a sustainable, productive and environmentally responsible energy sector.
Each of these initiatives represent opportunities for communities, the service sector and industry to work together to ensure the ongoing success for the B.C. oil and gas sector.
[British Columbia Fuels Oil and Gas Service Sector]
[Community-based Initiatives Announced for Oil and Gas]
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Oil and Gas Produces Record Breaking Fiscal Year
The March 25, 2009 oil and gas land rights sale of $15 million in bonus bids closed out the 2008-09 fiscal year with an all-time high of $2.4 billion, more than double last year’s record setting pace.
The $2.4 billion 2008-09 fiscal year total trumped the previous record breaking year by $1.2 billion, and broke every tracked record for oil and gas land rights sales in B.C. This is in addition to the record setting 2008 calendar year total of $2.66 billion.
Industry investment for 2008 is estimated at $8 billion, almost three times the investment in 2001.
2008 recorded a 200 per cent increase in summer drilling activities over 2002.
B.C. is the only significant jurisdiction in Canada and only one of two in North America which has seen oil and gas rig activity in January and February 2009 increase over the same period in 2008.
[Oil and Gas Produces Record-breaking Fiscal Year]
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