2005/06 – 2007/08 SERVICE PLAN
Ministry of Energy and Mines
Goals, Objectives, Strategies and Results
Goal 1:
A strong and competitive oil and gas sector in British Columbia.
The Crown owns most of the province's petroleum and natural gas. The Ministry of Energy and Mines is the steward of these resources and is mandated to protect the public interest in petroleum and natural gas development and ensure that benefits from resource development are maximized for all British Columbians. In 2004/05, provincial government revenue generated directly from the production of oil and gas in BC was approximately $2 Billion, or about eight per cent of total provincial revenues. With abundant hydrocarbon deposits throughout the province, oil and gas revenue will continue to play an important role in the provincial budget.
Core Business Area:
Objective 1:
Increase capital investment in British Columbia's oil and gas sector.
Strategies:
- Promote the development of conventional, unconventional and frontier oil and gas resource opportunities throughout British Columbia.
- Develop and implement an integrated, results-based, oil and gas policy and regulatory framework.
- Review legislation, regulations and policies across government affecting oil and gas activities and implement best practices and/or harmonization with other jurisdictions.
- Develop education and training projects in partnership with industry. Support the development of the Oil and Gas Education and Training Consortium to create and sustain a locally-based skilled oil and gas workforce.
- Enhance the certainty, clarity and predictability of access for oil and gas exploration and development.
Performance
Measure |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Annual dollar amount of oil and gas industry capital investment in British Columbia.1 |
$4.0 billion |
$4.2 billion |
$4.5 billion |
$4.8 billion |
Target Rationale:
Capital investment has a direct impact on drilling activity, production, reserve replacement and revenues to the Crown. The annual targets are based on the past investment trend combined with the expected impact of Ministry policies and programs to attract greater investment.
Objective 2:
Increase British Columbia's oil and gas production, activity and reserves.
Strategies:
- Support the development of high-grade road infrastructure promoting year-round oil and gas activity and new opportunities for oil and gas exploration development and production.
- Introduce new, targeted royalty programs to stimulate development of oil and gas resource opportunities and evaluate existing programs.
- Complete four recommendations from the "Service Sector Strategy" which will increase British Columbia's share of service sector opportunities. This strategy released in October 2003 contains 16 key recommendations to improve the competitiveness of the Northeast BC service sector.
- Work with stakeholders to identify elements of the midstream sector (gathering and processing of oil and gas, post production and pre-transmission) where policy improvements can be made to encourage increased development and value-added activity.
- Undertake targeted oil and gas geoscience to stimulate activity, particularly in the Bowser and Nechako Basins.
Performance
Measures |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Reserve replacement ratio.1 |
110% |
110% |
110% |
110% |
Number of wells drilled.2 |
1,328 |
1,390 |
1,496 |
1,596 |
Raw Natural Gas Production — Trillions of cubic feet (Tcf).2 |
1.060 Tcf |
1.105 Tcf |
1.140 Tcf |
1.176 Tcf |
Crude Oil Production — Millions of barrels (Mbbls).2 |
14.14 Mbbls |
12.63 Mbbls |
12.69 Mbbls |
12.73 Mbbls |
Provincial Revenue.3 |
$2.032 billion |
$2.000 billion |
$2.144 billion |
$2.050
billion |
Target Rationale:
Reserve replacement is a key measure of a thriving and competitive oil and gas industry. Number of wells drilled and production are key indicators widely used by industry to communicate activity levels and success. Activity levels are closely linked to employment and business opportunities. Provincial revenue is a definitive indicator of broader provincial public benefits from oil and gas development.
Objective 3:
Oil and Gas Environmental Stewardship.
Strategies:
- Coordinate with the Oil and Gas Commission for reduced well application fees for wells utilizing existing wellsites.
- Coordinate with the Oil and Gas Commission for reduced approval times of well applications for wells utilizing existing wellsites.
Performance
Measure |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Wells on multi-well pads.1 |
136 |
147 |
158 |
168 |
Target Rationale:
The use of multi-well pads reduces the surface land disturbance required per well. Their increasing use is a reflection of a commitment to responsible development and efforts to reduce the "foot print" of oil and gas development. The above targets reflect the proportion of wells on multi-well pads growing at three per cent per year.
Goal 2:
Enable offshore oil and gas development to occur in British Columbia in a scientifically sound and environmentally responsible manner.
The Province of British Columbia believes that the potential opportunities provided by offshore oil and gas development are of significant public value. The Province is taking a principled approach to researching management and regulatory regimes in other jurisdictions in order to identify best practices for west coast offshore development. Moving forward, the team will continue to work with communities, First Nations, the Federal Government and key stakeholders. The Offshore Team's focus through 2007/08 is to complete various components of the Offshore Team Project Plan. The core elements of this plan are to consult with First Nations and all coastal communities, develop a comprehensive regulatory regime and further the state of knowledge pertaining to offshore energy development.
Core Business Area:
Strategies:
- Continue to work with First Nations, coastal communities and key stakeholders to identify their concerns, provide information and establish mutually agreeable solutions.
- Develop options for the provincial position on a comprehensive management and regulatory regime, encompassing the initial granting of exploration rights through decommissioning of facilities and site cleanup.
- Work together with the federal government to advance the state of scientific knowledge about the British Columbia offshore, and to make that knowledge more accessible to the public.
Performance
Measure |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Implement the Offshore Oil and Gas Project Plan. |
Complete Offshore Team Project Plan objectives for 2004/05. |
Complete Offshore Team Project Plan objectives for 2005/06. |
Complete Offshore Team Project Plan objectives for 2006/07. |
Complete Offshore Team Project Plan objectives for 2007/08. |
Target Rationale:
Targets reflect reasonable goals leading to informed decisions regarding offshore oil and gas in British Columbia.
Goal 3:
A safe, environmentally responsible and globally competitive exploration and mining sector in British Columbia.
Mining has fueled economic development throughout the province since the first Gold Rush nearly 150 years ago. British Columbia is rich in mineralization and is ranked high by companies with respect to potential mineral and coal wealth. Mining revenues and jobs are increasing as commodity prices, government policies and investor confidence are attracting the mining industry to develop these rich resources. The province is committed to attracting exploration investment and building the mining industry in order to ensure benefits for all British Columbians.
Core Business Area:
Objective 1:
Compete globally for new investments to generate jobs and revenue in our communities.
Strategies:
- Work with industry, communities, First Nations and environmental groups to develop a sustainable mining model for British Columbia.
- regulations and approvals for exploration and mining.
- Conduct new geoscience surveys to attract investment to British Columbia.
- Maintain and enhance the new electronic, internet-based system for mineral claim acquisition and maintenance.
Performance
Measures |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Annual dollar amount of mineral exploration expenditure.1 |
$55 million |
$150 million |
$160 million |
$170 million |
Capital investment in new or existing mines.2 |
$100 million |
$250 million |
$350 million |
$450 million |
Target Rationale:
Targets identify the anticipated increases in investment resulting from world market trends and Ministry policies and programs aimed at stimulating exploration and mining in British Columbia.
Objective 2:
Ensure strong environmental standards.
Strategies:
- Improve Provincial environmental and reclamation guidelines.
- Participate in National Orphaned and Abandoned Mine Sites Initiative to inventory and assess sites for potential environmental problems.
- Participate in the National Mine Environment Neutral Drainage Committee to develop and apply new technologies to predict acid rock drainage.
- Collaborate with other governments, industry and environmental groups to address environmental challenges to exploration and mining.
Performance
Measure |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Compliance with permit and reclamation orders regarding environmental conditions.1 |
95% compliance |
95% compliance |
95% compliance |
95% compliance |
Target Rationale:
This target will ensure British Columbia exploration and mining operations support environmental stewardship of the land.
Objective 3:
Consistently achieve high health and safety standards at mines and exploration sites.
Strategies:
- Improve health and safety standards and practices.
- Monitor mining operations with sufficient frequency to ensure compliance with respect to worker safety.
- mine rescue competitions to promote safety and excellence.
Performance
Measures |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Lost time accident frequency.1 |
2.5 or less |
2.5 or less |
2.5 or less |
2.5 or less |
Compliance with health and safety orders resulting from mine inspections.2 |
95% compliance |
95% compliance |
95% compliance |
95% compliance |
Target Rationale:
Targets will ensure the mining industry remains one of the safest heavy industries in the province.
Objective 4:
Promote the consistent application of the two-zone land use system for exploration and mining in British Columbia.
Strategies:
- Ensure that the implementation of land use plans includes a clear definition of areas open to mineral exploration and mining.
- Work with the Ministry of Sustainable Resource Management to simplify access to land use data in order to facilitate mineral exploration activity.
- Develop and implement guidelines for mineral exploration and development to facilitate integrated land use.
Performance
Measure |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Facilitate regional workshops designed to find solutions that will enable integrated land use. |
5 |
6 |
7 |
7 |
Target Rationale:
Targets will ensure the integration of mining-related activity with other important land uses.
Goal 4:
Thriving, competitive, reliable and environmentally responsible electricity and alternative energy sectors.
Energy, economic and environmental policy are intertwined. As British Columbia's economy strengthens and diversifies, it continues to rely on low-cost electricity. At the same time, British Columbians are committed to environmentally responsible energy development and energy efficiency. The government is dedicated to striking a balance between the development of conventional sources of electricity in a responsible manner, and developing policies that will lead to the use of new and alternative sources.
Core Business Area:
Electricity and Alternative Energy.
Objective 1:
Facilitate investment in electricity and alternative energy resource development in British Columbia.
Strategies:
- Develop and promote policies to increase investment in electricity and alternative energy.
- Pursue financial and cooperative partnerships with other jurisdictions.
- Advocate energy investment opportunities in British Columbia.
- Implement results-based regulations.
- Pursue strategic alliances with the federal government to further develop the hydrogen and fuel cells industry.
Performance
Measures |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Increased investment in B.C.'s alternative energy production.1 |
Achieve a 10% increase (112 GWh) over B.C.'s alternative energy baseline (1115 GWh). |
Achieve an additional 10% increase (123 GWh). |
Achieve and additional 10% increase (135 GWh). |
Achieve an additional 10% increase (149 GWh). |
Increased investment in B.C.'s hydrogen and fuel cell sector.2
|
• Contribute $2 million to fuel cell development.
• Two additional hydrogen/fuel cell demonstration nodes.
|
• Leverage an additional expenditure of $2 million.
• One additional hydrogen/fuel cell demonstration node. |
• Leverage an additional expenditure of $2 million.
• One additional hydrogen/fuel cell demonstration node. |
• Reassess criteria for fuel cell investment.
• Two additional hydrogen/fuel cell demonstration nodes. |
Target Rationale:
Energy qualifying as "BC Clean Electricity" is a proxy for the amount of investment in alternative energy. The baseline established for the province's 2002/03–2004/05 Strategic Plan is 1115 GWh. The province has committed $2 million to Fuel Cells Canada for early implementation of hydrogen and fuel cell technology. Success will be measured by the incremental investment leveraged from other sources.
Objective 2:
Encourage environmental improvements through the promotion of alternative energy and energy efficiency.
Strategies:
- Develop and implement strategies and targets to improve energy efficiency in new and existing buildings.
- Implement initiatives that will work towards lowering greenhouse gas emissions.
- Pursue strategic alliances with governments, utilities and industry associations to advance energy efficiency objectives.
- Raise public awareness of the benefits of alternative energy.
Performance
Measures |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
The % of furnaces installed in new or existing B.C. residences that are "Energy Star" rated (AFUE of 90% or higher). 2003 baseline is 26%.1 |
30% |
35% |
45% |
60% |
Average Energuide Rating for audited B.C. single family houses that are either newly constructed or renovated. 2003 baseline is 72.2 |
72 |
73 |
74 |
75 |
Target Rationale:
The "Energy Star" furnace and "Energuide house" rating are two measurable components of the Strategic Plan for Energy Efficiency in Buildings, aimed at improving energy performance of equipment and of new and existing residential and commercial buildings.
Objective 3:
Implement and/or oversee the implementation of the Policy Actions in the provincial Energy Plan.
Strategies:
- Address barriers facing independent power producers.
- Advise and assist the BC Transmission Corporation and BC Hydro on electricity policy and initiatives.
- Improve access to regional markets for BC Hydro and Independent Power Producers.
- Review options to update and expand the Energy Efficiency Act and regulations.
- Manage Columbia River Treaty and Downstream Benefit Entitlement matters.
Performance
Measures |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Implementation of the Policy Actions in the provincial Energy Plan and improvements to the Plan. |
Complete implementation of the Policy Actions, and complete and distribute a
"Report Card"
on Plan implementation. |
Complete and distribute a "Report Card" on Energy Plan implementation, including recommendations for improvements to the Plan. |
Survey clients and stakeholders on satisfaction with the Energy Plan; views on Division priorities and levels of satisfaction with Division; possible need
for Plan amendments. |
To be determined by survey results. |
Complete and Implement an Alternative Energy Strategy for BC. |
Develop and seek approval for an Alternative Energy Strategy. |
Implement the approved strategy. |
Continue to implement the strategy. |
Complete implementation of the strategy. |
Target Rationale:
To ensure the Energy Plan remains relevant and up-to-date, a "Report Card" on its implementation will be prepared in 2004/05, followed by a survey of users and stakeholders on future Division priorities and options for the Plan (subject to funds being available).
Goal 5:
First Nations and communities working with Government for the responsible development of British Columbia's energy and mineral resources to benefit all British Columbians.
The Ministry of Energy and Mines is committed to strengthening its relationships with First Nations and communities in the development of energy and mineral resources throughout the province. The Ministry aims to increase First Nations participation in these resource sectors through consultation and accommodation initiatives.
Core Business Area:
Executive and Support Services.
Objective 1:
Build relationships with First Nations and communities to facilitate participation in, and increase knowledge of, the energy and mining sectors.
Strategies:
- Support ongoing treaty negotiations and lead Ministry initiatives with Treaty 8.
- Lead the process of consultation and accommodation with First Nations regarding energy and mineral development.
- Develop and maintain a productive working relationship with First Nations, industry and Ministry staff.
- Develop a Community and Stakeholder Engagement Plan.
- Increase Ministry internal awareness of First Nation and community issues.
- Develop and implement a First Nations "tool kit" for Ministry staff.
- Work with the Oil and Gas Commission on First Nations' issues as they pertain to oil and gas development.
Performance
Measures |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Implement First Nations engagement strategy.
|
Consultation and accommodation guidelines approved.
|
Engage three First Nations in accommodation agreement negotiations.
|
• Complete three First Nations accommodation agreements.
• Engage three First Nations in accommodation negotiations. |
Assess and develop future accommodation strategy.
|
Staff trained and orientated to First Nations culture and issues. |
Develop a cultural awareness training program for ministry staff. |
25% of appropriate staff completed training program. |
75% of all appropriate staff completed training program. |
100% of appropriate staff completed training program. |
Treaty 8 Negotiations.
|
Commence revenue sharing and set-aside issues negotiations.
|
• Revenue Sharing negotiations complete.
• 50% of set-aside negotiations complete. |
100% of set-aside issues complete.
|
Agreement implementation.
|
Target Rationale:
The First Nation engagement strategy provides a process for the Ministry of Energy and Mines to address the legal requirements to consult and accommodate, and aims to increase First Nations participation in the energy and mineral sectors.
Goal 6:
An exemplary organization and a Ministry of choice as an employer in the British Columbia Public Service.
This goal commits the Ministry of Energy and Mines to have the best human resources practices on behalf of its employees and government.
Core Business Area:
Executive and Support Services.
Objective 1:
Implement effective human resource practices consistent with best practices.
Strategies:
- Involve Ministry staff in the development and implementation of the Ministry Human Resource Plan.
- Encourage participation of managers in the Leadership Centre programs.
- Implement core government business training.
- Develop and implement recommendations on rewards and recognition.
Performance
Measures |
2004/05
Base |
2005/06
Target |
2006/07
Target |
2007/08
Target |
Number of employees with an annual employee performance and development plan. |
100% of excluded employees. |
100% |
100% |
100% |
Ministry HR plan in place and consistent with best practices. |
Current HR plan in Appendix 2. |
Update HR Plan in consultation with Ministry staff. |
100% of HR Plan goals implemented. |
100% of HR plan goals implemented. |
Target Rationale:
Targets identified promote effective human resource practices and participation in the implementation of the Ministry HR plan.
|