Year-at-a-Glance Highlights

Record revenues from the energy market and significant oil and gas rights sales, resulted in the sector making a noteworthy contribution to the provincial Treasury. 2003/04 saw the implementation of some significant Government initiatives that will continue to improve private sector opportunities in the province. The ministry's achievements in 2003/04 include:

• Minister of State for Mining — The Minister of State for Mining was appointed in early 2004 to focus attention on revitalizing BC's mining industry, making BC the only provincial jurisdiction with such a focus.
• Oil and Gas Development Strategy for the Heartlands (OGDS) — Announcement and implementation of the Oil and Gas Development Strategy for the Heartlands (OGDS), a comprehensive program to address road infrastructure, targeted royalties, regulatory reduction and British Columbia service-sector opportunities.
• Clean Electricity Guidelines — Completed an interpretive guideline for clean electricity (BC Clean Electricity Guidelines) as identified in the Energy Plan. The guideline is intended to clarify the Province's policy intent for electricity producers, distributors and the BC Utilities Commission.
• Pre-tenure plans — Created to guide environmentally responsible development of oil and gas resources by providing results-oriented management guidance to specific plan areas. These plans set out responsibilities for monitoring various activities and outcomes. They are also intended to provide greater certainty and guidance to the oil and gas industry on where and how oil and gas operations are conducted.
• Revenues — Revenues from crude oil and natural gas were $2.044 billion for 2003/04, 22 per cent higher than revenue estimates and 36 per cent higher over last fiscal.
• Offshore Oil and Gas — Estimates outlined in the Royal Society of Canada Report of the Expert Panel on Science Issues Related to Oil and Gas Activities, Offshore British Columbia suggest a combined oil and gas resource value of $110 billion.
• Oil and Gas Tenure Sales — Dispositions of British Columbia's oil and gas rights totalled more than $626 million for 2003/04. The exceptional sale of September 10, 2003 raised $418 million.
• Treaty 8 — The ministry provided strategic support to the Treaty Negotiation Office in the development of a Negotiation Protocol Agreement with Treaty 8 to resolve outstanding issues. The ministry also supported the negotiation of a Memorandum of Understanding with the Dena Tha' First Nation, the Ministry of Energy and Mines and the Oil and Gas Commission.
• Aboriginal Relationship Building — The ministry conducted a number of direct meetings with First Nations to develop relationships on key ministry initiatives. These activities included education sessions and information sharing on potential coalbed gas development. The ministry helped facilitate business relationships between First Nations and industry, including facilitating a relationship between the Upper Similkameen Indian Band and Petrobank with respect to potential coalbed gas development in Princeton, BC.
• The Tulameen Coalbed Gas disposition — (3,357 hectare parcel issued in March 2004) This is of particular note as it is the first time a First Nation (Upper Similkameen Indian Band in a joint venture with Compliance Energy Corporation) is participating as a recorded titleholder in the exploration and development of the Province's petroleum and natural gas resources.
• Oil and Gas economic impact model — Completion of a comprehensive macroeconomic model to estimate the impact of the oil and gas sector within Northeast British Columbia and the provincial economy.
• Coalbed gas (CBG) — British Columbia has a coalbed gas resource estimated at 90 trillion cubic feet. The Coalbed Gas Act was brought into force confirming CBG is natural gas.
• CBG and the Environment — The Environmental Protection Division in the Ministry of Water, Land and Air Protection has formed a collaborative working group with Ministry of Energy and Mines and the Oil and Gas Commission to facilitate the exploration and expansion of the coalbed gas industry in British Columbia. The main project has been the development of a Code of Practice for produced water. This document addresses groundwater depletion, groundwater quality (including salinity intrusion on the coast), and effects on aquatic habitats.
• Geoscience — In April 2004 an "Exploration Assessment of Tight Gas Plays in NEBC" was published. This report documented significant unrecognized natural gas resources in unconventional tight gas sands and preceded the record bonuses of the September petroleum and natural gas sale.
• Investment Promotion — The Ministry promoted investment opportunities in British Columbia's mining and oil and gas sectors, including major North American oil and gas and mining shows.
• Mining Investment Mission to the UK — In September 2003, the Honourable Richard Neufeld (in partnership with the BC and Yukon Chamber of Mines and the TSX's Venture Exchange) led a delegation to London, England to promote mineral investment opportunities.
• Mineral Claims — The total number of mineral claim units staked in fiscal 2003/04 increased by 12,873 (42 per cent) over the previous fiscal year.
• Coal Revenues — An increase in coal licences held by industry increased revenue from coal tenures, fees and rentals to $4.1 million, a 10 per cent increase over fiscal 2002/03.
• Mineral Exploration spending — Spending by industry increased to $55 million in 2003.
• MLA Mining Task Force — Recommendations on revitalizing the mining industry in BC will provide the basis for the development of a provincial mining plan.
• Health, Safety and Reclamation Code — Streamlined the primary regulatory mechanism for mines in British Columbia, from exploration to mine closure and reclamation.
• Mine Safety — British Columbia's mining industry further improved its already "best" safety record for heavy industry in the province.
• MapPlace visits — The internationally recognized "MapPlace", an internet-based map system containing extensive geosciences information, exceeded 2 million visits by clients in 2003.
• Geological Survey and Development Branch Partnerships — Geological and geophysical surveys were completed in the Toodoggone and Quesnel Lake areas in partnership with the Geological Survey of Canada and industry and have stimulated claim staking and exploration activity in these areas.
• Rocks to Riches — Participated in the British Columbia and Yukon Chamber of Mines Rocks to Riches program to carry out eight field and/or office-based, digital technology related geoscience projects, which added substantially to new geoscience information being released.
• Joint Solutions — The British Columbia and Yukon Chamber of Mines and the BC Ministries of Energy and Mines and Sustainable Resource Management are working jointly towards finding solutions to some exploration sector challenges.
• Gibraltar Mine Environmental Trust — A Qualified Environmental Trust was established at the Gibraltar mine, whereby independent investors posted a reclamation security of $17.1 million to pay for long term acid rock drainage treatment which freed up a cash security of $16 million to help finance restart of the mine anticipated for the fall of 2004.
• Energy Plan — The Ministry made significant progress in implementing the government's Energy Plan, "Energy for Our Future: A Plan for BC". The plan is designed to maintain low-cost electricity and public ownership of BC Hydro, increase investment in the energy sector, ensure secure reliable supply and promote environmentally responsible energy development.
• Alternative Energy and Energy Efficiency Developments — The Ministry completed the first phase of the Alternative Energy and Energy Efficiency strategy, and established a pilot Community Action on Energy Efficiency program.