MINISTRY OF ENERGY AND MINES

Summary

$000

Estimates 2001/02¹

Vote

Estimates 2002/03

Net

No.

Gross

Recoveries

Net

OPERATING EXPENSE

Voted Appropriations

63,610 

23

Ministry Operations.......................................................

47,429 

— 

47,429 

1 

24

British Columbia Utilities Commission..............................

3,295 

(3,294)

1 

2,500 

25

Resource Revenue Sharing Agreements..........................

2,500 

— 

2,500 

66,111 

              Total Voted Expense  ...................................

53,224 

(3,294)

49,930 

Special Accounts (Statutory Authority)

1,001 

Vancouver Island Natural Gas Pipeline............................

214 

— 

214 

1,001 

        Total Special Accounts..........................................

214 

— 

214 

67,112 

              Total Operating Expense ..............................

53,438 

(3,294)

50,144 

280 

Fulltime Equivalent (FTE) Employment

243 

TOTAL EXPENSE BY

GROUP ACCOUNT CLASSIFICATION

19,542 

Salaries and Benefits.....................................................

16,565 

16,565 

12,244 

Operating Costs............................................................

9,544 

9,544 

39,535 

Government Transfers...................................................

26,644 

26,644 

1,085 

Other Expenses...........................................................

685 

685 

— 

Internal Recoveries.......................................................

— 

— 

(5,294)

External Recoveries......................................................

(3,294)

(3,294)

67,112 

Total Expense ..............................................

53,438 

(3,294)

50,144 

CAPITAL AND OTHER FINANCIAL REQUIREMENTS

Disbursements

Receipts

Net

— 

Prepaid Capital Advances ²...........................................

— 

— 

— 

994 

Capital Expenditures ³ ..................................................

1,002 

— 

1,002 

50,000 

Loan, Investment and Other Requirements ⁴.....................

50,000 

— 

50,000 

50,994 

      Total .....................................................................

51,002 

— 

51,002 

NOTES

¹  For comparative purposes only, figures shown for 2001/02 expense, FTEs and capital expenditures have been restated to be consistent with the presentation of the 2002/03 Estimates.  Schedule A presents a detailed reconciliation.

²  Details of prepaid capital advances are presented in Schedule C.

³  Details of capital expenditures are presented in Schedule D.

⁴  Details of loan, investment and other requirements are presented in Schedule E.

Vote 23

MINISTRY OPERATIONS

Classification by Sub-Vote

Estimates 2001/02

$000

Estimates 2002/03

$000

498 

Minister's Office.........................................................................................................

498 

10,009 

Corporate Services....................................................................................................

9,427 

16,239 

Energy and Minerals (net of recoveries)........................................................................

12,990 

36,864 

Resource Development..............................................................................................

24,514 

63,610 

Total Vote ......................................................................................................

47,429 

VOTE DESCRIPTION

This vote provides for executive direction, administrative services and operating programs of the ministry, including:

(a)       Minister’s Office – This sub-vote provides for the office of the Minister of Energy and Mines, and includes salaries, benefits, allowances and operating expenses of the minister and the minister's staff.

(b)       Corporate Services – This sub-vote provides for administration and ministry executive support, including the Deputy Minister’s office, and includes the New Ventures Branch which:

·       administers programs developed under Oil and Gas Initiatives 1 and 2;

·       develops new initiatives;

·       creates, implements and administers policy relating to resource road development, including expenditure and collection of money for the purposes of road construction, upgrading and maintenance;

·       conducts geoscientific studies to determine petroleum, natural gas and coalbed methane resources;

·       conducts socio-economic financial assessments of resource development opportunities;

·       leads fiscal policy development related to petroleum and natural gas;

·       administers the natural gas royalty pricing mechanism and sets royalty parameters;

·       identifies and develops government policies and programs affecting the oil and natural gas sectors;

·       promotes opportunities for investment in the energy and mineral sectors through a comprehensive marketing plan; and

·       conducts stakeholder consultation and education in resource development  issues.

Under an agreement, the Ministry of Competition, Science and Enterprise provides administrative support services for the ministry. Government transfers are provided in support of ministry initiatives and to Columbia Basin Trust for operating expenses.

(c)       Energy and Minerals – This sub-vote provides for the management of the province's petroleum, natural gas, coal, geothermal, and mineral resources and for the regulation of the industries that explore for and develop these resources, including:

·          conducting geoscientific field studies and determining coal, geothermal, and mineral potential reserves;

·          managing disposition of subsurface tenures;

·          providing support services to industry and information to the public;

·          regulating mineral coal, industrial mineral and aggregate industries for health and safety and environmental responsibility;

·          collecting fees, rentals and tender bonuses;

·          negotiating fair compensation for mineral and coal titles expropriated for the creation of parks;

·          leading fiscal policy development and market analysis related to mineral, industrial mineral coal and aggregate resources;

·          promoting opportunities for investment in the minerals sectors through development and implementation of a comprehensive marketing plan;

·          industry and public consultation and education programs relative to mineral coal and aggregate resource issues; and

·          developing and implementing scientifically based environmental standards for resource development.

(d)       Resource Development - This sub-vote provides for evaluation, strategic planning and policy development with regard to the province’s electricity, alternative energy, mining, oil and gas and other subsurface resources, including:

·          determination and assessment of  subsurface resources and developments;

·          administration of First Nation revenue sharing agreements and the Vancouver Island Natural Gas Pipeline Agreement;

·          encouraging First Nations involvement in mining and oil and gas industries by developing consultation policy and guidelines, developing  treaty mandates for subsurface resources, and negotiating interim measures agreements;

·          environmental assessments of resource developments and resource use options;

·          collection and dissemination of statistics, analysis and forecasting of market conditions, promotion and marketing of provincial resource potential; and

·          development and implementation of electricity policy, including administration of the Columbia River Treaty, the Utilities Commission Act, the Power for Jobs Act and the Energy Efficiency Act.

Government transfers are provided for the Vancouver Island Natural Gas Pipeline Agreement.

Vote 23

MINISTRY OPERATIONS

Group Account Classification

Estimates

2001/02

$000

Estimates

2002/03

$000

MINISTER'S OFFICE

Salaries and Benefits........................................................................................................................

340 

342 

Operating Costs...............................................................................................................................

158 

156 

            Total ..................................................................................................................................

498 

498 

CORPORATE SERVICES

Salaries and Benefits........................................................................................................................

2,200 

1,883 

Operating Costs...............................................................................................................................

5,809 

4,744 

Government Transfers......................................................................................................................

2,000 

2,800 

            Total ..................................................................................................................................

10,009 

9,427 

ENERGY AND MINERALS

Salaries and Benefits........................................................................................................................

12,061 

9,396 

Operating Costs...............................................................................................................................

4,539 

2,909 

Government Transfers......................................................................................................................

554 

— 

Other Expenses..............................................................................................................................

1,085 

685 

External Recoveries.........................................................................................................................

(2,000)

— 

            Total ..................................................................................................................................

16,239 

12,990 

RESOURCE DEVELOPMENT

Salaries and Benefits........................................................................................................................

3,131 

3,131 

Operating Costs...............................................................................................................................

503 

503 

Government Transfers......................................................................................................................

33,230 

20,880 

            Total ..................................................................................................................................

36,864 

24,514 

Vote  24

BRITISH COLUMBIA UTILITIES COMMISSION

Estimates 2001/02

$000

Estimates 2002/03

$000

1 

Total Vote ............................................................................................................................

1 

VOTE DESCRIPTION

This vote provides for the operation of the commission, as outlined under the Utilities Commission Act, including the regulation of energy utilities under its jurisdiction to ensure rates charged are fair and that utilities provide safe, reliable services. Provision is made to reimburse participants for costs related to commission proceedings. Costs of the commission are fully recovered from regulated utilities, and hearing and project applicants, and others.

Vote  25

RESOURCE REVENUE SHARING AGREEMENTS

Estimates 2001/02

$000

Estimates 2002/03

$000

2,500 

Total Vote ............................................................................................................................

2,500 

VOTE DESCRIPTION

This vote provides for agreements reached with First Nations to share revenue received from petroleum, natural gas and minerals extraction. Provision is made for payments made in accordance with the federal/provincial agreement, as specified under the Fort Nelson Indian Reserve Minerals Revenue Sharing Act, and agreements with other First Nations.

Vote 24

BRITISH COLUMBIA UTILITIES COMMISSION

Group Account Classification

Estimates

2001/02

$000

Estimates

2002/03

$000

Salaries and Benefits........................................................................................................................

1,810 

1,813 

Operating Costs...............................................................................................................................

1,235 

1,232 

Government Transfers......................................................................................................................

250 

250 

External Recoveries.........................................................................................................................

(3,294)

(3,294)

            Total ..................................................................................................................................

1 

1 

Vote 25

RESOURCE REVENUE SHARING AGREEMENTS

Group Account Classification

Estimates

2001/02

$000

Estimates

2002/03

$000

Government Transfers......................................................................................................................

2,500 

2,500 

Special Account

VANCOUVER ISLAND NATURAL GAS PIPELINE

Estimates 2001/02

Estimates 2002/03

$000

$000

$000

$000

1,215 

Total Account Balance at the Beginning of the Fiscal Year ............

714 

Operating Transactions

— 

      Revenue...................................................................................

— 

1,001 

      Expense...................................................................................

214 

(1,001)

(1,001)

      Net Revenue (Expense) .............................................................

(214)

(214)

500 

Difference Between 2001/02 Estimates and Projected Actual Net
Revenue (Expense) .........................................................................

Transfer from General Account.

— 

Return to the General Account .

— 

714 

Total Account Balance at the End of the Fiscal Year.......................

500 

SPECIAL ACCOUNT DESCRIPTION

This account was created by authority of the Vancouver Island Natural Gas Pipeline Act. Of the original $80,000,000 authorized for this account, $25,000,000 was disbursed as loans in 1990/91 and 1991/92 for capital construction of the pipeline to Vancouver Island. No loan repayments are expected in 2001/02. The balance of the account is for the provision of financial assistance for the conversion of oil, propane and other fuel-fired appliances to the use of natural gas.

Expenses consist of government transfers to persons that have applied and qualified for financial assistance. No interest or other revenue is credited to the account. Administration costs are funded through the Ministry Operations Vote.

No financing transactions are provided for under this account.

Financing Transaction

COLUMBIA BASIN ACCORD

Estimates 2001/02

Estimates 2002/03

$000

$000

— 

     Receipts .............................................................................................................................

— 

50,000 

     Disbursements ....................................................................................................................

50,000 

(50,000)

            Net Cash Source (Requirement) .....................................................................................

(50,000)

FINANCING TRANSACTION DESCRIPTION

Disbursements are for an investment in the Columbia Power Corporation and the Columbia Basin Trust for power projects to be undertaken pursuant to the province's agreements with Columbia Basin Trust.

Financing Transaction  

OIL AND GAS COMMISSION ACT

Estimates 2001/02

Estimates 2002/03

$000

$000

14,900 

     Receipts .............................................................................................................................

17,800 

14,900 

     Disbursements ....................................................................................................................

17,800 

— 

            Net Cash Source (Requirement) .....................................................................................

— 

FINANCING TRANSACTION DESCRIPTION

Advances (disbursements) are provided by the province to the Oil and Gas Commission under the Oil and Gas Commission Act in respect of oil and gas industry fees collected under the Petroleum and Natural Gas Act and the Pipeline Act, and the levy assessed under the Oil and Gas Commission Levy Regulation.