Goals, Objectives, Strategies and Results

Overview of Ministry Goals

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 significant contribution to the first three Great Goals through a strong policy and regulatory framework which facilitates the provision of approximately $3 billion in government 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 Great 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 continue to enjoy a healthy and vibrant environment. In support of Great Goal Four, the Ministry will pursue best practices for oil and gas development, maintain effective, efficient regulation of mines and mineral exploration sites aimed at health, safety and environmental best practices, and promote development and use of alternative energy technology, and energy efficiency measures. The Ministry is at the forefront of developing resource management and community engagement measures to ensure that British Columbians lead the world in sustainable environmental management and enjoy the best air and water quality.

For Great Goal Four, key initiatives include the Oil and Gas Regulatory Improvement Initiative to create a more effective and efficient results-based oil and gas regulatory framework. The BC Mining Plan commits to developing faster and simpler approaches to multi-agency approvals of exploration and mining. As an example, Ministry staff is working with industry and the Ministry of Environment to develop Best Management Practices for mineral exploration in British Columbia. This initiative is an essential part of implementing an efficient and timely regulatory regime for mineral exploration while maintaining high environmental standards. With regard to energy and the environment, the Ministry is working in partnership with the federal government, First Nations, communities, the private sector and others to promote the development and use of alternative energy sources such as wind, solar and hydrogen, and energy efficiency measures, to conserve our energy resources while delivering a healthier living and work environment for British Columbians.

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, streamlined regulation and new policies to promote British Columbia’s leading edge alternative energy sector, will result in greater economic activity, more businesses and jobs in the province. A wide range of Ministry strategies are being implemented in support of Great Goal Five, including: development of a new, contemporary Energy Plan; expanding opportunities for job training and placement; facilitating First Nation involvement; engaging communities and stakeholders; ensuring reliable low cost electricity is available to support economic development and job creation; and pursuit of offshore oil and gas exploration and development.

Cross Ministry Initiatives

The Ministry is working jointly with other agencies on the following initiatives:

Mountain Pine Beetle: Under Ministry of Forests and Range lead, the Ministry is working with other agencies to accelerate the development of energy, mineral and other non-forest economic opportunities and identify infrastructure requirements in areas where the Mountain Pine Beetle has attacked wood.

Asia-Pacific Strategy: Implementation of the BC Mining Plan will include the exploration of opportunities to diversify export markets. Mid- to longer-term actions include expanding and diversifying our energy and minerals exports to Asia-Pacific by increasing production capacity, facilitating pipeline investment, and participating in Team BC–Asia-Pacific, an initiative aimed at marketing our products and services to Asia.

Regulatory Reform: The Ministry supports the government’s regulatory reform initiative by meeting its target of no net increase in regulations over the next three years. Any new regulation will be balanced with ensuring that those regulations that no longer serve a useful purpose are eliminated.

First Nations: The Ministry is working to operationalize the New Relationship with First Nations. The implementation of the New Relationship is a significant step in ensuring Aboriginal people benefit from the continued growth and development of British Columbia’s resources. The Ministry has also developed programs that include training Aboriginal people, facilitates First Nations’ employment in the energy, mineral and petroleum resources sectors, supports treaty negotiations, and undertakes other strategic initiatives in cooperation with other ministries.

Performance Plan

Strategies:

1. Develop a new, contemporary Energy Plan to guide future planning and growth.
2. Undertake policies and marketing activities to increase investment in mineral, electricity, alternative energy, energy efficiency, and oil and gas resource opportunities throughout BC.
3. Work with industry, communities, First Nations to conduct new mineral, oil and gas geosciences surveys to attract investment to BC.
4. Enhance the certainty, clarity and predictability of access for oil and gas exploration and development through such initiatives as road infrastructure development.
5. Maximize the area of Crown subsurface resources available for tenure by working with First Nations and communities to address land and community issues.
6. Address barriers facing Independent Power Producers, private sector investors, and improve access to regional markets.

Strategies:

1. Introduce new, targeted royalty and incentive programs to stimulate development of oil and gas resource opportunities.
2. Review legislation, regulations, policies and programs, and develop a streamlined results based regulatory framework that considers best practices and/or harmonization with other jurisdictions.
3. Streamline the “one-window” regulatory regime through the Oil and Gas Regulatory Improvement Initiative.
4. Promote the use of e-business for government transactions.

Strategies:

1. Revise policy and regulations where necessary to implement new federal-provincial initiatives.
2. Build community and industry relationships by engaging them in discussion about the benefits and opportunities of resource development, and developing an offshore oil and gas benefits sharing model.
3. Increase provincial awareness of energy opportunities by engaging schools in a discussion of responsible energy, mineral and petroleum resource development.
4. Pursue financial and cooperative energy partnerships with industry, such as those developed with Independent Power Producers, communities and other levels of government.
5. Manage Columbia River Treaty and Downstream Benefit Entitlement matters.

1	Source: Canadian Association of Petroleum Producers. These estimates are provided only by calendar year.
2	Source: British Columbia Ministry of Energy, Mines and Petroleum Resources. Raw natural gas production by fiscal year.
3	Source: British Columbia Ministry of Energy, Mines and Petroleum Resources, based on annual surveys conducted by the Ministry in collaboration with Natural Resources Canada and Statistics Canada (calendar year).
4	Source: Based on Ministry of Energy, Mines and Petroleum Resources staff using data from annual surveys by PriceWaterhouseCoopers and Natural Resources Canada, adjusted to reflect non-surveyed activities and post-survey developments.

Strategies:

1. Review best practices in place in other jurisdictions and adapt them to British Columbia’s circumstances where appropriate.
2. Promote and implement initiatives to enhance environmental stewardship in BC’s oil and gas and mining sector.

1	When natural gas is removed from the ground, some gas is routinely flared to prevent harm from exposure to unburned fuel. As flaring wastes a valuable combustible resource and produces environmental effects, a flaring reduction strategy is being implemented which has resulted in a 50% reduction in flaring since 1998. However, the most inexpensive and easiest reduction initiatives have already been implemented. Further reductions will be increasingly more difficult to achieve, particularly with increasing natural gas production. Therefore a one per cent per year reduction in flaring is still significant.
2	Refers to time lost due to injury at mines. It is expected that with several new mines in operation and new employees at those mines, the numbers of lost days will be maintained at the benchmark of 2.5 as long as proper training and tools are available for these new workers. The target of 0% increase in lost time is meaningful against a background of expanded industry activity.

1. Continue to implement “Energy Efficient Buildings: A Plan for BC”.
2. Pursue strategic alliances with the federal government to further develop the hydrogen fuel cells industry and other technology that supports alternative energy.

1	The “BC Clean Electricity Guidelines” define what qualifies as “BC Clean” as electricity that is either purchased or generated by BC Hydro and other utility distributors. As electricity from self generation and load displacement projects is not sold, it is technically not “BC Clean”, even though it otherwise qualifies as clean electricity. BC’s Energy Plan currently suggests that electricity distributors pursue a voluntary goal to acquire 50 per cent of new supply from “BC Clean” electricity in the 2002–2012 period. Supply increments in 2005/06 are 100 per cent “clean” and increments in 2006/07 are expected to be 100 per cent clean. However, in subsequent years, supply additions to meet growing demand from “non clean” sources such as gas, coal, and municipal solid waste may mean that in any given year the percentage will be less than 100 per cent.
2	Source: Heating, Refrigeration and Air Conditioning Institute.

1. Initiate a community engagement process on resource development benefits, opportunities and challenges to provide information to communities, receive advice, and encourage dialogue on key matters.
2. Develop tools to help landowners become more aware of development implications and work to address the needs of communities, First Nations, stakeholders and industry.
3. Negotiate consultation agreements with First Nations in areas of energy, mineral and petroleum resource development, and encourage partnerships between First Nations and industry.
4. Develop education and training projects in partnership with industry to sustain and grow a locally-based skilled workforce.

1. Develop a new relationship with First Nations based on early, sustained engagement that promotes economic certainty and creates opportunity for all British Columbians.
2. Negotiate First Nations Agreements which engage First Nations from pre-tenure through to reclamation and develop real opportunities.
3. Involve First Nations and coastal communities in the development of an offshore oil and gas regulatory and benefit sharing model, and a remote Community Clean Energy Program.
4. Explore mechanisms available to promote First Nation benefits from resource development and use.

1. Review and improve all points of access to information currently provided by the ministry to make more user friendly, and evaluate and improve existing public information strategy.
2. Provide information to the public on energy conservation opportunities and the use of alternative energy.

1	New performance measure to be developed for community engagement and public awareness in 2006/07.