Highlights of the Year

Highlights of the Year

The substantial growth experienced by B.C.'s energy, mining and petroleum resource sectors in 2004/05, continued in 2005/06 supported by the policies and programs of the Ministry of Energy, Mines and Petroleum Resources (Ministry). High commodity prices, and an improved investment climate created by improved policies and regulatory streamlining, resulted in increased levels of resource exploration and development activity. Energy, mineral and petroleum resource revenues to the Provincial Treasury are expected to be about $3 billion, providing funds for healthcare, education and social programs. The Ministry's achievements in 2005/06 include:

New Energy Plan — In November 2005, the Ministry initiated a review and renewal of the 2002 Energy Plan. This is now well under way and will result in a long term plan for the management of B.C.'s energy and petroleum resource sectors.

Marketing, Aboriginal and Community Relations

Community Engagement — The Community Engagement Plan was implemented in 2005/06 with the initiation of the following actions:

Marketing — A strategic approach to attracting investment to British Columbia was implemented. Highlights included:

New Relationship with First Nations — In support of the Ministry of Aboriginal Relations and Reconciliation's leadership within government on the New Relationship, the Ministry increased its collaboration with First Nations across all lines of business to reflect the principles of that commitment.

Oil and Gas

Oil and Gas Development Strategy — In November 2005, Treasury Board approved the fourth phase of the Oil and Gas Development Strategy (OGDS). Highlights included:

Regulatory Improvement — The Oil and Gas Regulatory Improvement Initiative (OGRII) Discussion Paper was released, inviting public comment on a range of changes to oil and gas regulation. The proposed regulatory changes will balance substantial increases in exploration and development in B.C. with the need to protect public health and safety and sustainable environmental values.

Job Fairs — Building on the success of the 2004 pilot project on Vancouver Island, job fairs were held to attract workers to the highly lucrative oil and gas industry in 14 communities in Northeast B.C., Cariboo-Chilcotin Coast and Thompson Okanagan in 2005.

Orphan Site Reclamation Fund — The Orphan Site Reclamation Fund is a new funding program that puts the burden of reclamation payment on industry rather than B.C.'s taxpayers. The fund will be used by the Oil and Gas Commission to pay for the reclamation of orphan sites and reimburse property owners for unpaid rental leases.

First Nations in Oil and Gas — In March 2006, Blueberry River First Nations and the Province signed a new Oil and Gas Consultation Agreement. The agreement ensures better consultation between the First Nation and the oil and gas industry, keeps the lines of communication flowing smoothly between the First Nation and the Province over activities on Crown lands in B.C.'s resource-rich Northeast, and encourages industry to foster long-term, mutually beneficial business relationships. Negotiations with other Treaty 8 First Nations are ongoing.

Offshore Oil and Gas

The Ministry works to enable offshore oil and gas development to take place in B.C. The Province believes that the potential for development of offshore oil and gas resources is of significant public value. Ministry staff work to inform communities, stakeholders and First Nations about the potential benefits of offshore oil and gas development.

Mining and Minerals

B.C. Mining Plan — This comprehensive approach to sustainable mining in B.C., was released in January 2005. The four cornerstones of the B.C. Mining Plan are to focus on communities and First Nations, to protect workers, their surroundings and the natural environment, to compete on a global scale and to secure access to land.

Since the B.C. Mining Plan's release, the Ministry has completed or started all 14 strategies, and of the 57 action items, 30 are completed, 25 are in progress, and two are about to be initiated.

Mining Education Network — A collaborative partnership between First Nations, educational institutions, industry and government to coordinate education, skills development and employment opportunities across British Columbia.

Health and Safety Improvements — Improvements were implemented though a newly developed mine site inspection and audit program that are designed to improve compliance with safety requirements to protect workers. There were five audits performed in 2005.

Mineral Titles Online — This award winning Internet-based claim registration and maintenance system was implemented in January 2005. Over 4.86 million hectares of new claims were created in calendar year 2005 using the system. In the first full year of operation, Mineral Titles Online was recognized as a great success by industry and government, garnering four prestigious awards.

First Nations Mining Initiatives —In early 2006, the Province dedicated $2.3 million to train rural and aboriginal youth for careers in B.C.'s mining and mineral exploration industry. This funding included dollars to continue the pilot program through the School of Exploration and Mining at Northwest Community College, a program designed to deliver mining entry level field assistant programs to First Nations and rural communities (half of the students were aboriginal and over 50 per cent obtained employment in the resource sector). At the same time, the Ministry's Mining Rocks! Career and Job Opportunities Tour was launched to raise awareness about opportunities in exploration and mining and to provide information about, and improved access to, employment in the sector. Funding was also dedicated to support the Joint Aboriginal Minerals Training Initiative, a collaborative partnership between the British Columbia Institute of Technology and the Association for Mineral Exploration British Columbia.

Electricity and Alternative Energy

Energy Efficiency in Buildings Strategy — In September 2005, the Ministry announced the Energy Efficiency in Buildings Strategy. This Strategy supports a 2002 Energy Plan policy action to reduce energy consumer costs, promote investment in energy efficient equipment and buildings, and reduce local and greenhouse gas air emissions. A "market transformation" approach for buildings is being pursued, whereby energy efficiency is achieved through four types of measures: information, education and capacity building; pricing and incentives; voluntary measures; and amendments to the Energy Efficiency Standards Regulation for building components and equipment.

Wind Power Policy — In October 2005, a new Crown land tenuring policy was approved for wind power projects that offers flexibility and incentives for wind power producers to proceed with capital investment. The policy includes a wind participation rent which is calculated using a sliding scale rate formula which varies according to the actual annual electricity production. Participation rent is not payable during the first year of operation of the facility.

Alternative Energy Strategy and Alternative Energy and Power Technology Task Force — In April 2005, the Province released an Alternative Energy Strategy and announced the formation of the Alternative Energy and Power Technology Task Force. The Task Force consulted with stakeholders and interested parties to identify solutions to today's energy challenges and submitted a report to Government with options and recommendations for showcasing B.C.'s leadership potential in sustainable energy development.

Hydrogen and Fuel Cell Strategy — In 2004/05, the Province provided $2 million in funding to Fuel Cells Canada to begin implementing B.C.'s Hydrogen and Fuel Cell Strategy. Since then, more than $110 million in related investment activity in the Province has been leveraged. Hydrogen and fuel cell developments are driving new private sector investment in B.C., providing both jobs and technology for a healthier and more prosperous future.

First Nations and Alternative Energy — The Ministry initiated the First Nation and Remote Community Clean Energy Program in 2006. The Program supports B.C. First Nations in the implementation of their Community Energy Planning action plans. The program also provides financial incentives (totalling $3.8 million) to ten First Nation communities who develop and implement zero-emission electricity supply projects and demand-side efficiency and management options. The incentives will be applied to the communities' clean energy project capital costs and, to a maximum of 20 per cent of eligible costs, local training in the field of alternative energy and energy efficiency, leading to increased employment opportunities.