Regulatory compliance
Tenure Acquisition
In early 2007, BP submitted a proposal to the BC government to acquire publicly-held petroleum and natural gas tenure rights in the region in response to a government-issued Call for Proposals. On December 5th, 2008 the British Columbia (BC) government announced the issuance of petroleum and natural gas rights to BP's Mist Mountain Coalbed Gas Project.
We will be reviewing the details of the tenure decision. We do not have any plans at this time for drilling, but will continue our environmental studies and consultation program in 2009.
What is tenure? Tenure means that BP Canada has been awarded Crown petroleum and natural gas rights within specific areas of the Crowsnest Coalfield subject to certain conditions. This decision allows but does not obligate BP to make applications to the BC regulator, the BC Oil and Gas Commission, to access, explore and potentially develop the petroleum and natural gas in accordance with applicable statutory regulations.
The tenure decision does not include any area within the Flathead watershed.
Regulations and permitting
Activities associated with Mist Mountain proposal are subject to regulation by provincial agencies such as the BC Oil and Gas Commission and guided by policies outlined in the BC Energy Plan, which calls for the best coalbed gas practices in North America. Provincial ministries such as Environment, and Energy, Mines and Petroleum Resources also guide our activities. Regulation by federal agencies may apply in some circumstances as well.
BP currently holds provincial permits to enable us to conduct water and fisheries testing as well as a geophysical permit for aeromagnetic (aerial) surveying in the proposed Mist Mountain project area. In addition, we hold a permit for surface access in the Flathead area related to our environmental studies. We have not submitted any applications for exploratory drilling permits at this time.
