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2002/03 Annual Service
Plan Report
Ministry of Energy and Mines |
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Ministry Role and Services
Introduction
The Ministry of Energy and Mines is the primary provincial agency
for the long-term development of British Columbia's energy
and mining resources, including:
- Minerals, aggregate and metallurgical coal;
- Natural gas and oil;
- Coalbed methane;
- Offshore oil and gas; and
- Energy, including alternative energy.
The Province's oil, natural gas, electricity and mineral resources
sectors continue to be a significant economic engine in British
Columbia's economy, as well as a substantial revenue generator for
the Province. In 2002/03, the energy and mining sectors contributed
approximately $1.51 billion in provincial revenue, an increase of
16 per cent over the previous fiscal year. British Columbia's oil
and gas industry was particularly robust and saw continued growth
in exploration activity in 2002/03, although at a slower pace than
the unprecedented growth of the previous year. Mining exploration
expenditures increased (exploration spending has been on the rise
over the last two years, 1999 was the lowest year) and are estimated
at $40 million for 2002.
The past year has seen a number of significant policy developments
as part of the Government's efforts to enhance British Columbia's
competitiveness, as well as to increase investment in the energy
and mining sectors. Among these developments was the release of
the Government's energy plan, Energy for our Future: A Plan for
BC, designed to increase investment in the energy sector and
maintain low-cost electricity and public ownership of BC Hydro.
Also, to increase investor confidence in the mineral sector, a new
"two zone" land use system for mineral exploration and mining has
been created to clearly define land as either open or closed to
exploration and mining.
The Ministry employed a successful targeted geoscience program
with 13 partnerships adding significant knowledge to our resource
potential.
In addition, Cabinet approved up to $8 million to March 31, 2004
to enable the Ministry to establish an offshore oil and gas team
to begin addressing scientific and other questions to ensure that
offshore oil and gas resources are developed in a scientifically
sound and environmentally responsible manner.
This Annual Service Plan Report describes the Ministry's goals,
objectives and strategies, as well as reports on the degree to which
the Ministry succeeded in achieving its performance targets in 2002/03.
Ministry Vision, Mission and Values
Vision
The Ministry of Energy and Mines serves as a catalyst and facilitator
for developing thriving, competitive, safe and environmentally responsible
energy and mining resource sectors, and for increasing their contribution
to the provincial economy for the benefit of all British Columbians.
Mission
The Ministry of Energy and Mines promotes British Columbia's energy
and mining investment opportunities and fosters a competitive investment
climate, which encourages responsible development of energy and
mining resources, supports job creation, and ensures environmental
protection and public and worker health and safety.
Core Values
The following values define the Ministry's management style and
govern the way it makes decisions. They guide Ministry staff in
interacting with each other, other government agencies, the private
sector and other stakeholders.
| Core Values |
| Advocacy |
The Ministry promotes the economic development
of British Columbia's energy, mineral and coal resources to
create prosperity for the benefit of British Columbians.
The Ministry represents the people of British Columbia, as
owners of the natural resources.
The Ministry represents the interests of the energy and mining
sectors to broader stakeholder groups and supports those sectors
in responsible development of provincial resources.
The Ministry informs the Government, industry and citizens
of the Province of the benefits of responsible resource development.
|
| Integrity |
The Ministry is committed to developing
the Province's energy and mining resources in a fair and responsible
manner that protects health, safety and the environment. |
| Transparency |
The Ministry ensures its regulations, processes
and decisions are applied in a fair and open manner, and that
related and relevant information is adequately communicated
to its stakeholders and the general public. |
| Responsiveness |
The Ministry strives to respond to the needs
of its stakeholders and the public in a timely and effective
manner. |
| Efficiency |
The Ministry strives to deliver its programs
and strategies in the most efficient manner to enhance British
Columbia's competitiveness as a resource investment location. |
| Accountability |
The Ministry is accountable to Government
and the public and strives to ensure that its actions deliver
the results put forth in its Service Plan. |
| Professionalism |
The Ministry is committed to maintaining
the highest standards of innovation, quality, teamwork, and
developing an entrepreneurial attitude in the professional public
service. |
Ministry Overview
Since 1874, the British Columbia Ministry of Energy and Mines has
been the primary agency responsible for the long-term development
of the Province's energy and sub-surface mineral resources.
- Today, the Ministry's primary responsibilities are to:
- Market and promote British Columbia as a competitive location
for resource industry investment;
- Set policy to ensure maximization of resources for the benefit
of British Columbians;
- Provide expertise on land use planning to ensure access to mineral
resources;
- Enhance British Columbia's position as a key player in global
energy, mineral and coal markets;
- Create a competitive regulatory environment that makes it easier
and cost-effective for companies to do business in British Columbia;
- Encourage responsible development of British Columbia's energy
and mining resources;
- Ensure protection of the environment;
- Protect public and worker health and safety;
- Build relationships to facilitate First Nations' participation
in the energy and mining sectors;
- Build relationships with stakeholders to build ties with communities;
- Undertake assessments to determine British Columbia's resource
potential;
- Develop policies to nurture new resource development opportunities;
and,
- Manage the disposition of mineral and petroleum rights.
The Minister of Energy and Mines is also responsible for BC Hydro,
the Oil and Gas Commission, British Columbia Utilities Commission,
Columbia Basin Trust, Columbia Power Corporation, and the Mediation
and Arbitration Board. Each agency prepares its own annual report.
The Ministry delivers its programs and services through four core
business areas, these are:
New Ventures: responsible for a variety of initiatives to
stimulate short term and long-term development of mineral, oil and
gas resources.
Energy and Minerals: responsible for the management of the
Province's subsurface resources and for the regulation of the industries
that explore and develop those resources.
Resource Development: provides for the planning, evaluation,
and policy development of the Province's electricity, alternative
energy, mining, oil, gas and other subsurface resources.
Corporate Services: provides administrative and executive
support which is shared with the Ministry of Competition, Science
and Enterprise.
Ministry Operating Context
The operating context is an assessment of the general environment
the Ministry, and the mining and energy sectors faced during 2002/03.
This section describes some key external factors, as well as identifies
internal government factors that have affected Ministry operations.
This section also identifies some of the current and potential challenges
facing the Ministry, and the energy and mining sectors.
External Factors
British Columbia's energy sector has seen robust growth over the
past few years and has emerged to become an increasingly important
contributor to British Columbia's economy, as well as a significant
primary resource revenue generator for the Province. Furthermore,
energy prices are expected to remain strong, and demand for British
Columbia's mineral commodities is expected to grow with metal prices
forecast to strengthen in 2003.
Oil and Gas Resources
British Columbia has an enormous undeveloped resource base estimated
to be worth billions of dollars. The unconventional resources include:
coalbed methane, offshore oil and gas, tight gas, interior basins
and marginal resource plays. Of these, the resource with the greatest
potential for development in the near future is coalbed methane
(CBM). There are estimated to be 35,600 billion cubic feet of recoverable
CBM from British Columbia coal fields, with an estimated potential
royalty revenue of $16.6 billion annually. Approximately $50 million
in CBM investment has already occurred.
Offshore oil and gas is another resource potential. A 1998 Geological
Survey of Canada report showed there is potential for 9.8 billion
barrels of oil and 25.9 trillion cubic feet of gas in the Queen
Charlotte Basin in Hecate Strait, 9.4 trillion cubic feet of
gas collectively in the Winona and Tofino basins off the west coast
of Vancouver Island, and 6.5 trillion cubic feet of gas in the Georgia
Basin near the Lower Mainland. If recoverable, these resources could
provide the Province with direct revenues of up to $1 billion annually
for thirty or more years.
Mineral Resources
The Province's mining industry has recently experienced considerable
difficulty as weak market prices and mine closures contributed to
low levels of exploration. In 2001, British Columbia saw three
mine closures, due to depleted resources and low metal prices, and
the active mines spent only $10 million funding new reserves. Tax
cuts and regulatory changes were expected to have a positive impact
on the mining sector and pushed exploration investment to approximately
$40 million in 2002. However, this amount is considerably below
both British Columbia's historic investment levels, and current
investment levels experienced by other provinces. The mining industry
estimates it takes approximately $100-150 million in exploration
expenditures to generate one new mine. At this rate, exploration
investments are insufficient to replace existing mines scheduled
to shut down once their ore reserves are exhausted. However, the
outlook for metal prices is expected to trend upwards in the next
2–5 years, and British Columbia has undeveloped and undiscovered
mineral resources to take advantage of the worldwide price recovery.
In short, concerted efforts to grow British Columbia's oil and
gas, and mineral sectors will pay large dividends over the remainder
of this decade and beyond.
Internal Factors
- The Ministry continued to restructure focusing on internal efficiencies
and moving toward results based regulation and performance based
compliance and enforcement. Budget and staffing allocation has
been adjusted accordingly.
- The reduction in Ministry staff resources has also necessitated
changes in how the Ministry delivers its core functions.
- Implementation of the Government's shared services system has
resulted in staff relocations and required staff adjustments regarding
roles and responsibilities with respect to finance, information
technology, and human resources functions.
- Like other ministries across Government, the Ministry of Energy
and Mines faces demographic issues as a result of an ageing workforce.
This presents significant recruitment and succession challenges.
Risk Assessment
The energy and mining sectors are subject to various risks and
uncertainties. This section identifies the challenges that can impact
the energy and mining sectors, and consequently Ministry operations,
and the royalties and taxes accruing to the Government from these
sectors. Over the past year, the Ministry has focused on an overall
move to create investor and consumer confidence. Strategic shifts
and a focus on client service are designed to attract investors
to opportunities in British Columbia. Policies have been employed
to create results based regulations as well as performance based
compliance and enforcement.
- Energy and mineral revenues are highly dependent on commodity
prices. Energy markets, in particular, have been very volatile
in recent years and these price fluctuations create risks to the
forecast. Introduction of British Columbia's Energy Plan adds
domestic security ensuring low-cost energy and continued public
ownership of BC Hydro while providing more opportunities for investment.
- The Ladyfern field in the Western Sedimentary Basin accounted
for 18 per cent of raw gas production and 23 per cent of provincial
royalties in 2002. However, high production rates may result in
a shorter reserve life for this field. More exploration is being
encouraged to facilitate continued production for the Ladyfern
area. The Ministry continues to work with industry, communities
and First Nations to encourage a competitive investment climate
in British Columbia. The recently introduced Oil and Gas Development
Strategy is an example of the flexibility employed to attract
investment.
- During the next seven years, all six remaining metal mines in
British Columbia will have exhausted their known reserves. The
Highland Valley copper-molybdenum mine, the Province's largest
metal mine with approximately 950 employees, is scheduled to close
in 2008. With these closures, over 2,350 direct mining jobs will
be lost by 2010. The Ministry of Energy and Mines, together with
the Ministry of Sustainable Resource Management and the Ministry
of Water, Land and Air Protection, approved an innovative plan
to extend the life of HVC and further protect the 950 jobs at
the mine.
- The potential revenue from offshore oil and gas reserves could
be as much as $1 billion annually over a 30 year period. Development
of the offshore resources will require resolution of a number
of issues, including: accommodating First Nations interests; addressing
local community issues; mitigating environmental concerns; and
reaching an understanding with the Federal Government on fiscal
and regulatory matters. Recognizing the potential opportunities
for coastal communities and First Nations, the Government established
a dedicated Offshore Oil and Gas Team. The Team reports to the
Ministers of Energy and Mines and Competition, Science and Enterprise.
- Investor certainty and confidence will be enhanced by timely
completion of the land use planning process. Delays in concluding
the Province's land-use planning process will be an impediment
to potential investment in areas where the process is ongoing.
The Ministry of Energy and Mines has worked in concert with
the Ministry of Sustainable Resource Management to ensure that
subsurface values are addressed in land-use planning. The Ministry
now employs a formula for subsurface values that are used at planning
tables.
Significant Changes in Policy and Program Direction
This section identifies significant policy and program changes
that occurred in 2002/03.
Energy Plan
In November 2002, the Government released its energy plan, entitled
Energy for Our Future: A Plan for BC. The four cornerstones
of The Energy Plan are: lower electricity rates and public ownership
for BC Hydro; secure, reliable supply; more private sector ownership
opportunities; and, environmental responsibility and no nuclear
power sources. The plan clarifies the Government's intentions for
energy supply and the role for private sector investment. Specifically,
the plan sets out the policy actions to retain BC Hydro in public
ownership and to maintain secure, safe, low-cost energy for the
future. It also contains measures to stimulate economic growth by
supporting increased investment across a range of energy source
and enhanced conservation measures and targets for the development
of clean energy sources.
Revenue Generating Initiatives
In 2002/03, Cabinet approved an additional $5 per year million
funding for the Ministry to pursue revenue generating and investment
creation opportunities. This will be targeted for facilitating onshore
oil and gas opportunities. Expenditures over the next three fiscal
years, with respect to ten projects in the energy and minerals industries
(including road rehabilitation, coalbed methane development, core
laboratory enhancements, and pre-tenure plan participation, amongst
others), are expected to produce incremental revenues of $27.2 million,
$40.2 million and $65.3 million respectively.
Coalbed Methane
The Government introduced the Coalbed Methane Act in March
2003. Prior to the Act, there was uncertainty about whether coalbed
rights were legally owned by the owner of the coal rights, or whether
investors could gain access to the gas as a separate resource. The
Act clarifies this uncertainty and confirms British Columbia's long
standing policy that coalbed methane is a natural gas owned by the
holder of natural gas rights.
Performance Based Regulations
Revisions to the Health, Safety and Reclamation Code for Mines
in British Columbia, completed in 2002/03, were designed, where
practical, to move the code from a prescriptive format to a results
based format. A results based code is one where code requirements
are stated as an outcome or result. A prescriptive code is one where
code requirements are stated as specific directions (rather than
outcome).
Offshore Oil and Gas Team
On January 10, 2003 the Province established the British Columbia
Offshore Oil and Gas Team. The Team has the mandate to move forward
on a number of issues including: resolving science and other information
gaps; assessing the risks associated with offshore oil and gas development;
and, developing a strategy to ensure that other activities such
as fishing are not adversely affected.
Targeted Geoscience Partnerships
The Ministry established 13 public-private partnerships, several
of which were multiple-partner projects. These partnerships resulted
in new geoscience maps and reports to enhance mineral potential
across the Province.
Update on New Era Commitments
The following table identifies the Government's priorities for
which the Ministry is responsible for, and describes the current
status of each priority.
| New Era Promises |
| Government Priority |
Comments |
| Oppose the Sumas 2 power projects and phase
out Burrard Thermal. |
The Province, led by the Ministry of Water,
Land and Air Protection, is an intervenor in the review of the
Sumas 2 power project. An application for associated transmission
lines will be before the National Energy Board in 2003. The
role of the Burrard Thermal generation station is being considered
as part of the Energy Plan implementation currently underway. |
| Protect BC Hydro and all its core assets,
including dams, reservoirs and power lines under public ownership. |
The Energy Plan provides for more private
sector opportunities to develop British Columbia's energy resources.
A new Crown corporation, the BC Transmission Corporation, was
created to operate, plan and manage BC Hydro's transmission
system. This will improve access to the transmission system
for independent power producers, who will now be able to sell
directly to large customers as well as ensuring continued access
to external markets. Continued public ownership of BC Hydro's
core assets, their reregulation by the BCUC, locking in the
value of BC Hydro's existing generation low cost assets and
ensuring future benefits from electricity trade, will mean continued
low electricity rates for British Columbians. |
| Restore an independent BC Utilities Commission
to regulate BC Hydro's electricity rates. |
BC Hydro rates have been exempt from reviews
by the BC Utilities Commission since 1993. The Energy Plan
stipulated that BC Hydro's rate freeze ended on March 31, 2003
and restored an independent BC Utilities Commission to ensure
energy rates are set in an independent, open, fair and transparent
way. |
| Encourage mineral exploration. |
In order to have a healthy, sustainable
mining industry in British Columbia, it is essential that the
mineral exploration industry be robust. Estimates are that $125 million
in exploration are required to find a new mine. The Ministry
will enhance mineral exploration in British Columbia by reducing
regulatory requirements for sub-bulk sample level exploration
projects, refocusing geoscience programs and ensuring a competitive
tax and regulatory regime. |
| Consider the Northern Development Commissioner's
report on offshore oil and gas. |
The Northern Development Commissioner's
report was submitted to Government on July 5, 2001. The Premier
announced that the Northern Caucus would consult with northern
residents and community leaders regarding a range of issues
including the Commissioner's report on offshore oil and gas.
In March 2001, UNBC was provided with a $2 million grant
to respond to recommendations made in the Scientific Review
Panel and Offshore Oil and Gas Task Force Reports. In October
2002, the Province approved up to $8 million, to the
end of fiscal 2004, for the establishment of a dedicated offshore
oil and gas team to ensure that offshore oil and gas resources
are developed in a scientifically and environmentally responsible
manner. This also includes working with First Nations, communities,
industry and other governments to clarify the risks and benefits
associated with offshore oil and gas. The Team was announced
on January 10, 2003.
|
| Promote clean and renewable alternative
energy sources like wind, thermal, solar, tidal biomass and
fuel cell technologies. |
As part of the Energy Plan, electricity
distributors will pursue a voluntary goal to purchase at least
50 per cent of their new power supply from resources that are
renewable or result in a net environmental improvement over
existing generation. This will provide Independent Power Producers
with opportunities to develop clean energy sources such as micro-hydro,
cogeneration, wind, solar and fuel-cell power. |
Key Projects: Set Out in
the Premier's
Letter to the Minister (June 25, 2001) |
| Government Priority |
Comments |
| Develop an energy policy that balances the
role our energy resources can play in the economic development
of the Province with the export and revenue opportunities these
resources represent. The policy addresses issues related to
the regulatory environment and Government stewardship. |
The Energy Plan provides for more private
sector opportunities and they will be key players in British
Columbia's energy future by developing resources. BC Hydro
will be restructured into two separate Crown corporations, one
for generation and distribution, and the other for transmission.
Independent power producers will be able to access the transmission
system and sell directly to large customers, thereby stimulating
new investment in power generation. The Government encourages
low cost private power production which can develop projects
to meet British Columbia's growing demand. |
| Examine opportunities to further improve
efficiency of the Oil and Gas Commission (OGC). |
The Ministry and OCG have undertaken reviews
of OGC processes through the Deregulation Initiative and the
Core Services Review process. The OGC has implemented a single-window
approach for the permitting approval process, and in so doing
has eliminated a number of regulatory requirements to improve
efficiency. |
| Review the offshore oil report prepared
by the Northern Development Commission and make recommendations,
in conjunction with the Ministry of Water, Land and Air Protection
(MWLAP) and the Ministry of Sustainable Resource Management
(MSRM). |
In October 2001, the Ministry contracted
with Jacques Whitford Environment Ltd. to undertake a review
of current technology related to offshore oil and gas. MSRM
and MWLAP participated in the assessment of proposals and in
the review of the draft report. The final Whitford report, released
on October 23, 2001, concluded that offshore exploration
could occur without unacceptable risk to the environment.
Coordination with MWLAP and MSRM occurs through the Deputy
Ministers' Committee on Natural Resources and the Economy.
|
| Funding for Power for Jobs has been cancelled;
review and make recommendations regarding reallocation of the
funding. |
The Power for Jobs program has been cancelled.
Revenues from the sale of the Columbia River Downstream Benefits
currently flow to general revenue; therefore, there are no reallocation
issues to be considered. |
| Participate actively in supporting the success
of the Ministry of Sustainable Resource Management (MSRM). |
The Ministry collaborates with MSRM in a
variety of areas, including strategic land use planning, First
Nations issues (interim measures and consultation processes),
land access issues and tenuring. The Deputy Minister of MEM
is a member of the Deputy Ministers' Committee on Natural Resources
and the Economy. |
| Deregulation |
| Government Priority |
Comments |
| Cut unnecessary red tape by one-third over
the next three years (by June 2004). |
The Ministry has actively participated in
Government's deregulation initiatives. The Ministry has a regulatory
reduction target of 11 per cent in each of the three fiscal
years 2002/03 to 2004/05 (ending June 2004). This means a reduction
of 5,847 regulations. In 2002/03, the Ministry exceeded its
target and eliminated 2,657 regulations or 15 per cent
of its regulation count. |
Core Business Areas
The Government's overarching aim is for British Columbia to have
the best performing economy and the highest quality of life in North
America. To achieve this, the Government created three overreaching
goals:
- A strong and vibrant provincial economy;
- A supportive social infrastructure; and
- Safe, healthy communities and a sustainable environment.
To support these goals, the Ministry developed a vision to "serve
as a catalyst and facilitator for developing thriving, sustainable
and competitive energy and mineral resource sectors for the benefit
of all British Columbians." In order to effectively and efficiently
deliver functions to support the Ministry's vision and its corresponding
goals and objectives, the Ministry created four core business areas
for the provision of programs and services. The core business areas
are:
- New Ventures;
- Energy and Minerals;
- Resource Development; and
- Corporate Services.
New Ventures
The New Ventures Branch is responsible for developing innovative
polices and programs which support the objectives of doubling oil
and gas production in British Columbia, significantly increasing
revenues. Specifically, New Ventures Branch responsibilities include:
- Create, implement and administer policy relating to resource
road development, including expenditure and collection of money
for the purposes of road construction and maintenance;
- Conduct geoscientific studies to determine petroleum, natural
gas and coalbed methane resources;
- Conduct socio-economic and financial assessments of resource
development opportunities; and
- Lead fiscal policy development related to petroleum and natural
gas.
| Key Programs |
Outputs |
| Resource Road Development |
- Concluded an agreement in principle with oil and gas producers
to undertake a $38 million upgrade to the Sierra-Yoyo-Desan
Road.
- Completed 163 km of hard surfacing and rehabilitation
at a cost of $20.143 million on Oil & Gas Initiative 2 roads
in the Northeast.
|
| Coalbed Methane |
- Stakeholder, First Nation and public information sessions
completed around the province.
- Produced water code of practice developed jointly with
WLAP and OGC.
- New coalbed methane royalty enacted.
- Geological reports and studies completed.
- Promotion of the resource potential through trade shows
and technical conferences.
|
| Mineral Ownership |
- Development of Coalbed Gas Act for spring session
of the Legislature.
- First stage of review of mineral title registration complete.
- Mineral title research for portions of Esquimalt and Nanaimo
Railway Belt acquired from third parties.
- Mineral title research in remainder of Esquimalt and Nanaimo
Railway Belt ongoing.
- Report on Mineral Title determination process and legislation
completed.
|
| Petroleum Geoscience |
- Analysis of oil and gas resource potential completed for
northeast British Columbia (deep gas and tight gas).
- Developed resource assessments for interior basins.
- Acquired regional oil and gas studies for northeast British
Columbia.
- Completed a number of geoscience studies for interior
basins.
|
| Fiscal Policy Development |
Developed and implemented the first coalbed
methane specific royalty mechanism in Canada. |
Energy and Minerals
- Energy and Minerals is responsible 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 those resources. Energy and Minerals responsibilities
include:
- Conduct geoscientific field studies and determine coal, geothermal
and mineral potential reserves;
- Manage disposition of subsurface resources;
- Regulate mineral, coal, industrial mineral, placer and aggregate
industries for health and safety and environmental responsibility;
- Lead fiscal policy development and market analysis related to
mineral, industrial mineral coal, and aggregate resources to stimulate
responsible development of the resource and accrue appropriate
benefits to the Province;
- Promote opportunities for investment in the minerals and energy
sectors through development and implementation of a comprehensive
marketing plan;
- Develop and implement scientifically based environmental standards
for resource development; and
- Negotiate fair compensation for mineral and coal titles expropriated
for the creation of parks.
| Key Programs |
Outputs |
| Mining Exploration Tax Credit |
- Worked with the Ministry of Finance to obtain a three-year
extension of this program.
|
| BC Mining Flow through Share Tax Credit |
- Worked with Federal and Provincial officials and industry
on a two-year extension.
|
| Promote Opportunities for Investment in
Minerals Sector |
- Led provincial government work to facilitate construction
and operation of Stewart Omineca Resource Road.
|
| Redraft of the Health, Safety and Reclamation
Code for Mines in British Columbia |
- Revised code (in conjunction with industry and labour)
leading to a results based format and the reduction of 30.2
per cent of the regulatory requirements.
|
| Management of Subsurface Resource Rights
(disposition and administration of petroleum, natural gas, mineral,
coal and geothermal rights) |
- Recorded 30,709 mineral claim units (34 per cent more
than in 2001/02).
- Issued 21,347 hectares of new coal licenses (17 per cent
less than in 2001/02).
- Sold 828,144 hectares of petroleum and natural gas rights
(21 per cent more than in 2001/02).
- $280 million revenue from sales of petroleum and natural
gas rights (10 per cent less than in 2001/02).
- $52 million revenue from petroleum and natural gas rights
rentals and administration fees (7 per cent more than in
2001/02).
- $5 million revenue from coal rights rentals and coal and
mineral rights administration fees (17 per cent more than
in 2001/02).
|
| Mineral Rights Compensation (compensation
for mineral and coal titles expropriated for park creation) |
- Negotiated agreements with 10 individual holders of mineral
rights.
- Settled 44 mineral titles for $469,981.
|
| Mineral Titles Online Project (moving towards
a map selection method of mineral rights acquisition) |
- Conversion of 57 per cent of the base mapping to the standard
required for MTO project completed.
|
| Publications |
- Fuelling North America's Energy Future.
- Health, Safety and Reclamation Code for Mines in British
Columbia.
- Geological Fieldwork 2002.
|
| Geoscience Surveys |
- Published two bulletins, 23 reports, the Geological Fieldwork
volume and a number of brochures.
- Released new geochemical data for Bella Coola area that
led to mineral claim staking.
- Discovered a new copper occurrence near Atline that led
to a staking rush.
|
| MapPlace and Geoscience Databases |
- MapPlace continues to be a primary web-portal for access
to British Columbia, with over 1,200 hits per day.
- New data layers added to site, including coal boreholes
and regional aero magnetic data mineral occurrence.
- Assessment report and databases are used weekly by mineral
exploration sector.
|
| Public-private Partnerships in Targeted
Geoscience |
- 13 partnerships established, several were multiple-partner
projects.
- Raised over $100,000 in industry support.
- Resulted in new geoscience maps and reports to enhance
mineral potential across the Province.
|
Resource Development
- Resource Development is responsible for the evaluation, strategic
planning and policy development with regard to the Province's
electricity, alternative energy, mining, oil, gas and other subsurface
resources. Resource Development responsibilities include:
- Determination and assessment of subsurface resources and developments;
- Administration of First Nation revenue sharing agreements and
the Vancouver Island Natural Gas Pipeline Agreement;
- Encourage First Nations involvement in mining and oil and gas
industries by developing consultation policy and guidelines;
- Socio-economic and 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, Power for Jobs Act, and Energy Efficiency
Act.
| Key Programs |
Outputs |
| Develop and implement the Energy Plan. |
- Developed Energy for Our Future: A Plan for BC,
a comprehensive policy for electricity, natural gas, alternative
energy and coal sectors. Initiated implementation of the
Energy Plan including developing terms of reference for
the BCUC Inquiry into an electricity heritage contract,
stepped rates and transmission access. Also, eliminated
the requirement to obtain energy removal certificates to
remove natural gas and electricity from the Province.
|
| Participation in regulatory proceedings in support of Ministry
goals to: increase investment in and development of energy projects;
increase access of provincial resources to markets; and, ensure
a secure, reliable, affordable energy supply. |
- Led Provincial intervention in NEB-CEAA hearing on the
Georgia Strait Crossing natural gas pipeline project.
- Led Provincial intervention in BCUC hearings on BC Gas
Utility and Centra Gas BC (both now Terasen Gas) 2003 Revenue
Requirement applications to advocate reliable provision
of natural gas to consumers at stable, reasonable rates.
|
| Columbia River Treaty Downstream Benefits (DSB). |
- Management of the DSB entitlement, valued at approximately
$100 Million for the year.
|
| Socio-economic and environmental assessments of resource developments. |
- Participated in environmental assessment of the Inland
Pacific Connector natural gas pipeline project, Coursier
Dam Decommissioning, Vancouver Island Generation Project,
Forrest Kerr hydro-electric project and the Stewart Bulk
Terminal. Participated in Land and Water BC review process
for several project including Cloudworks Energy, Furry Creek
and McNair Creek.
|
| Economic assessments of resource developments and development
of resource policy. |
- Completed 2002 BC Natural Gas Competitiveness Study.
|
| Subsurface resource assessments. |
- Developed methodology for valuation of subsurface mineral,
oil and gas resources for use in land use planning and treaty
settlements.
|
| Collection and dissemination of statistics, analysis and forecasting
of market conditions, promotion and marketing of provincial
resource potential. |
- Compiled and analyzed comprehensive statistics on British
Columbia mining industry. Provided timely and accurate analysis
of market conditions, industry and companies.
- Monitored and prepared forecasts of electricity production
and sales.
- Alternative energy industry baseline report and monitoring
undertaken to quantify the size and growth of this emerging
sector.
|
| Administration of First Nation revenue sharing agreements. |
- Administered the disbursement of $900,631 in revenue sharing
to Fort Nelson First Nation and disbursement of $1,079,875
in revenue sharing to Blueberry River and Doig River First
Nations.
|
| Encouraging First Nations involvement in mining and oil and
gas industries by developing consultation policy and guidelines. |
Developed and implemented:
- Aboriginal consultation procedures for petroleum, natural
gas and geothermal tenure sales.
- Coalbed methane information sessions with 19 First Nations,
including one site visit to an operational CBM field.
- A coalbed methane economic measures information forum
for aboriginal representatives in Comox.
Assisted in ensuring First Nation consultation requirements
were met for Tulsequah Chief Mine project.
Completed third year of five Year Archaeological Overview
Study, with drafts of predictive model, to aid in determining
the need for archaeological assessments for oil and gas developments
in northeast British Columbia.
|
Corporate Services
Corporate Services provides administrative and Ministry executive
support, including the Deputy Minister's office. This is a shared
service with the Ministry of Competition, Science and Enterprise.
| Key Programs |
Outputs |
| Financial management of Ministry budget and related activities. |
- Managed Ministry budget to ensure goals are achieved.
- Completion of financial year-end and service plan.
|
| Transition to shared services model of service delivery. |
- Implementation of shared services model on information
technology, human resources, payroll and accounts payable.
- Led and trained staff on new processes.
|
| Human resource management. |
- Implementation of workforce adjustment program.
- Implementation of Government's vision for renewal of the
public service.
|
Ministry Goals, Objectives and Key Strategies
This section details the goals, objectives and supporting strategies
the Ministry pursued in 2002/03. The goals relate to increasing
investment in energy and mineral resource development, maintaining
high environmental and safety standards, and being a responsive
and accountable organization. As such, they directly support the
Ministry's vision of being a catalyst and facilitator for developing
thriving and competitive energy and mineral resource sectors in
British Columbia.
This section identifies the goals, objectives and strategies and
links them to the Ministry's core business areas.
1. To increase investment in energy and mineral resource development
in British Columbia:
This goal focuses on implementing strategies that will make British
Columbia a more globally and regionally competitive investment location,
and in so doing increase direct investment in the energy and mineral
sectors. Strategies will be designed to make investing in British
Columbia's resource sectors more efficient, cost-effective and certain.
Its objectives include:
- Double oil and gas production in British Columbia by 2011;
- Generate $20 billion worth of cumulative investment in the oil
and gas sector by 2008;
- Stimulate and facilitate initial coalbed methane production;
- Increase mining exploration and development activity;
- Stimulate investor interest in British Columbia's alternative
energy sectors;
- Development of pre-tenure and land use planning processes to
allow for environmentally responsible resource development; and
- Implement components of Government's energy policy pertaining
to electricity.
2. To maintain high environmental, and health and safety standards:
This goal focuses on ensuring resource exploration and production
activities are carried out in accordance with environmental standards,
and health and safety requirements. Its objective is:
- Maintain high environmental and health and safety standards.
3. To be a responsive, adaptable and accountable organization:
This goal focuses on developing an organizational structure enabling
the Ministry to respond to changing business environments, as well
as support staff in the delivery of their functions. Its objective
is:
- Implement a responsive, adaptable and accountable organization,
with the skills and abilities to meet the objectives in the Ministry
Service Plan.
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