Goals, Objectives, Strategies and Results

Ministry Goals and their Linkage to the Five Great Goals

With regard to the Five Great Goals for A Golden Decade, the Ministry of Energy, Mines and Petroleum Resources makes a substantial contribution to the first three great Goals by providing the government with revenue to support the high level of health care, education and social services set by these Goals:

Great Goal One — Make BC the best educated, most literate jurisdiction on the continent.

Great Goal Two — Lead the way in North America in healthy living and physical fitness.

Great Goal Three — Build the best system of support in Canada for persons with disabilities, special needs, children at risk and seniors.

The Ministry also makes direct contributions to these first three great Goals, through such initiatives as government-industry partnerships in oil and gas education and training, and promoting best practices in workplace health and safety in the petroleum, energy and mining industries.

The Ministry's major direct contributions are with regard to delivering programs in support of the last two Goals. With regard to Great Goal Four — Lead the world in sustainable environmental management, with the best air and water quality, and the best fisheries management — bar none — energy, mineral and petroleum resource development must be achieved while British Columbians also continue to enjoy a healthy and vibrant environment. The Ministry is at the forefront of developing resource management and community engagement measures so that British Columbia can lead the world in sustainable environmental management and enjoy the best air and water quality. Ministry initiatives to encourage energy efficiency and lower greenhouse gas emissions, reduce the footprint of industry and maintain high environmental standards at mines and mineral exploration sites will contribute significantly to the success of Great Goal Four.

With regard to Great Goal Five — Create more jobs per capita than anywhere else in Canada — the responsible growth of the energy, mining and petroleum sectors brings with it the creation of safe, family-supporting jobs throughout British Columbia. The Ministry encourages investment and activity in these sectors and works with other Ministries to help ensure British Columbia businesses and workers are available to supply these industries' needs. New investments in geoscience, more streamlined regulations and new policies to promote British Columbia's leading edge alternative energy sector will result in more economic activity, more businesses and more jobs in British Columbia. In particular, the Ministry is focused on developing new energy and mineral resources in areas affected by the Mountain Pine Beetle Epidemic.

Ministry Performance Plan Summary

Performance Plan

The Crown owns most of the province's petroleum and natural gas. The Ministry of Energy, Mines and Petroleum Resources 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 oil and gas deposits throughout the province, oil and gas revenue will continue to play an important role in the provincial budget.

Strategies:

1. Promote the development of conventional, unconventional and frontier oil and gas resource opportunities throughout British Columbia.
2. Develop and implement an integrated, results-based, oil and gas policy and regulatory framework.
3. Review legislation, regulations and policies across government affecting oil and gas activities and implement best practices and/or harmonization with other jurisdictions.
4. 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.
5. Enhance the certainty, clarity and predictability of access for oil and gas exploration and development.

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.

Strategies:

1. 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.
2. Introduce new, targeted royalty programs to stimulate development of oil and gas resource opportunities and evaluate existing programs.
3. 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.
4. 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.
5. Undertake targeted oil and gas geoscience to stimulate activity, particularly in the Bowser and Nechako Basins.

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.

Strategies:

1. Coordinate with the Oil and Gas Commission for reduced well application fees for wells utilizing existing well sites.
2. Coordinate with the Oil and Gas Commission for reduced approval times of well applications for wells utilizing existing well sites.

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.

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.

Strategies:

1. Continue to work with First Nations, coastal communities and key stakeholders to identify their concerns, provide information and establish mutually agreeable solutions.
2. 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.
3. 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.

Target Rationale:

Targets reflect reasonable goals leading to informed decisions regarding offshore oil and gas 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.

Strategies:

1. Work with industry, communities, First Nations and environmental groups to develop a sustainable mining model for British Columbia.
2. Streamline regulations and approvals for exploration and mining.
3. Conduct new geoscience surveys to attract investment to British Columbia.
4. Maintain and enhance the new electronic, internet-based system for mineral claim acquisition and maintenance.

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.

Strategies:

1. Improve Provincial environmental and reclamation guidelines.
2. Participate in National Orphaned and Abandoned Mine Sites Initiative to inventory and assess sites for potential environmental problems.
3. Participate in the National Mine Environment Neutral Drainage Committee to develop and apply new technologies to predict acid rock drainage.
4. Collaborate with other governments, industry and environmental groups to address environmental challenges to exploration and mining.

Target Rationale:

This target will ensure British Columbia exploration and mining operations support environmental stewardship of the land.

Strategies:

1. Improve health and safety standards and practices.
2. Monitor mining operations with sufficient frequency to ensure compliance with respect to worker safety.
3. Organize mine rescue competitions to promote safety and excellence.

Target Rationale:

Targets will ensure the mining industry remains one of the safest heavy industries in the province.

Strategies:

1. Ensure that the implementation of land use plans includes a clear definition of areas open to mineral exploration and mining.
2. Work with the Ministry of Sustainable Resource Management to simplify access to land use data in order to facilitate mineral exploration activity.
3. Develop and implement guidelines for mineral exploration and development to facilitate integrated land use.

Target Rationale:

The Two Zone System for Mineral Exploration and Mining provides clarity and certainty for increasing mineral investment in British Columbia. This system specifies which lands are open, and which lands are off-limits, to mineral exploration and mining activities.

It demonstrates that British Columbia welcomes increased mineral development by providing clarity for everyone on land designations where applications for mining activities, including access, can be approved. The above target will ensure the integration of mining-related activity with other important land uses.

Energy, economic and environmental policies 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.

Strategies:

1. Develop and promote policies to increase investment in electricity and alternative energy.
2. Pursue financial and cooperative partnerships with other jurisdictions.
3. Advocate energy investment opportunities in British Columbia.
4. Implement results-based regulations.
5. Pursue strategic alliances with the federal government to further develop the hydrogen and fuel cells industry.

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.

Strategies:

1. Develop and implement strategies and targets to improve energy efficiency in new and existing buildings.
2. Implement initiatives that will work towards lowering greenhouse gas emissions.
3. Pursue strategic alliances with governments, utilities and industry associations to advance energy efficiency objectives.
4. Raise public awareness of the benefits of alternative energy.

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.

Strategies:

1. Address barriers facing independent power producers.
2. Advise and assist the BC Transmission Corporation and BC Hydro on electricity policy and initiatives.
3. Improve access to regional markets for BC Hydro and Independent Power Producers.
4. Review options to update and expand the Energy Efficiency Act and regulations.
5. Manage Columbia River Treaty and Downstream Benefit Entitlement matters.

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).

The Ministry of Energy, Mines and Petroleum Resources 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.

Strategies:

1. Support ongoing treaty negotiations and lead Ministry initiatives with Treaty 8.
2. Lead the process of consultation and accommodation with First Nations regarding energy and mineral development.
3. Develop and maintain a productive working relationship with First Nations, industry and Ministry staff.
4. Develop a Community and Stakeholder Engagement Plan.
5. Increase Ministry internal awareness of First Nation and community issues.
6. Develop and implement a First Nations "tool kit" for Ministry staff.
7. Work with the Oil and Gas Commission on First Nations' issues as they pertain to oil and gas development.

Target Rationale:

The First Nation engagement strategy provides a process for the Ministry of Energy, Mines and Petroleum Resources to address the legal requirements to consult and accommodate, and aims to increase First Nations participation in the energy and mineral sectors.

This goal commits the Ministry of Energy, Mines and Petroleum Resources to have the best human resources practices on behalf of its employees and government.

Strategies:

1. Involve Ministry staff in the development and implementation of the Ministry Human Resource Plan.
2. Encourage participation of managers in the Leadership Centre programs.
3. Implement core government business training.
4. Develop and implement recommendations on rewards and recognition.

Target Rationale:

Targets identified promote effective human resource practices and participation in the implementation of the Ministry HR plan.