PUBLIC LAND PETROLEUM
(Oil & Shale Gas) LEASE SALES
NORTHEAST BRITISH COLUMBIA
In early February, 2011, we asked the government (BC Ministry of Energy, Mines and Petroleum Resources) for information on the amount of money paid to the provincial government for land leases let for petroleum (oil and gas) developments, from the years 2003 to 2010. When the information was finally provided on February 22, showing the figures only for 2005 - 2010, the representative said that to obtain information prior to 2005 would " require a considerable amount of time and energy " , therefore, " we are unable to provide that service. "
Over a six year period, 2005 - 2010, the BC government received a total payout of $5,417,068,741 for leases covering 1,831,618 hectares (4,525,866 acres), at a average price of $2,958 per hectare ($1,198 per acre). Coincidentally, the total six-year revenues are equal to PetroChina's recent shale gas partnership bid with Encana Corporation of $5.4 billion. We're not exactly certain of what this relationship between the two figures means, so we leave it to our interested readers to ponder this facet. Of course, another important consideration is, how and where did the government spend and divert this significant revenue?
Of course the other matter of great concern, is the poor rate of return negotiated by our government with the energy companies - a pathetic 2 percent (2%) royalty rate - the same deal the Alberta government brokered with the energy companies mining the Tar Sands.
The information, provided below in a series of tables, covers four deep shale gas energy zones within northeastern BC:
GRAND TOTALS - 1,831,618 ha, for $5,417,068,741, average of $2,958 per hectare
TOTALS FOR ALL FOUR BASINS AND PLAY REGIONS
HORN RIVER BASIN
MONTNEY PLAY REGION
Original information sent from the BC Ministry of Energy, Mines and Petroleum Resources