http://www.radio-canada.ca/nouvelles/Economie/2011/03/10/002-bape-exploration-droits.shtml
The government has recently recieved a lot of lip over the exploration rights because they were given to companies very cheap.
The BAPE, also mentioned...which is a bit odd seeing as how I don't think their mandate involved this, but nonetheless most are upset.
I don't think many are aware of how shale gas start or when it started in Quebec. My view is they think it started with the drilling of the first Forest vertical, which isn't correct.
I think when Mr Binnion calls Questerre a pioneer in this, they are right. We have to give credit where credit is do. I think it's safe to say that up until 3 years ago now, nobody would have bet a single dime that Quebec was rich with natural resources. Exploration has been going on there for a very long time, but nothing has come up with hydrocarbons. Now if you all remember, I believe it was Shell that drilled a well way back in the day (I want to say the 50-60's) and encountered gas flow for a little bit. Clearly there was gas, but we were behind our time drastically in terms of the technology available. Fracing as long as it has been around, has only really been fully perfected in the last ten years...and as technology does, continues to get better. Don't be surprised to see fracing with zero chemicals in the near future. Not diverging from my point, people knew Quebec had little or zero hydrocarbons.
As Mr. Binnion said, Quebec was looking for companies to come and explore here, but there were many that refused siting a waste of time. Now some wonder why didn't the government drill? I was told by a few people and read this, that in the past the government threw away hundreds of millions on exploring for some projects that never panned out...tax payers were upset to say the least.
Bottom line is, that Questerre went in when many wouldn't and then took a long time to convince Talisman to join them. These companies in Quebec today have put up a lot of time and energy and capitial $200M to prove to everyone that there is something there. For the government, who was so desperately seeking companies to come and explore, to go back and demand money is imo very unprofessional under the circumstances. If it wasn't for what a few select companies did, Quebec would still be wondering and wouldn't be on it's way to a huge economic boost from this industry.
Let's look at it another way. So what if our companies spent years, $200M and found nothing at all. This is a reality for many companies of the world exploring. Tell me, would it be fair for them to go back to the government and say "give us our $200M back and compensate extra for our lost time"? Seems ridiculous right? I don't think any government would and if they tried, there would be some really upset tax payers (including those environmentalists)...but people don't think like that do they. Just because they wouldn't be willing to give that courtesy to companies, how can they expect it in return.
You can't just say, but we lost billions in permits. Frankly, you wouldn't be staring in the face of a huge boost for jobs, revenue to fund many things and energy independence if it wasn't for the huge risk these companies took, plain and simple.
And it doesn't matter what government that is. I don't care if Alberta did the same here, I wouldn't be upset at the loss because of those circumstances, but I would looking at the future and what it means for the citizens and economy.
Rocco
