TITLES DIVISION

SUBJECT:      REQUEST FOR PROVINCIAL COALBED METHANE RIGHTS ON VANCOUVER ISLAND

The Ministry of Energy and Mines is interested in facilitating exploration and development of coal bed methane on Vancouver Island.  Ministry staff have met with community representatives and have held open houses to explain how coalbed methane is produced and the potential benefits and impacts of development.

The ministry has previously received a number of expressions of interest in acquiring petroleum and natural gas rights for the development of coal bed methane on Vancouver Island.  The ministry is now inviting requests for specific parcels of provincial rights.  These parcels will be included for competitive bid at the earliest regularly scheduled disposition of provincial petroleum and natural gas rights, once title research and all internal reviews have been completed.  Priority will be given to those requests accompanied by detailed title research information, supporting provincial ownership of the natural gas underlying the requested parcels.  A letter should be provided with the title research information, authorizing the Province to use the information for the purpose of making these rights available for competitive bid.

It is the Province's position that coalbed methane is natural gas and is therefore regulated under the Petroleum and Natural Gas Act.  For further information regarding Provincial policy on coalbed methane and Crown Reserve bidding procedures, interested parties should refer to:  Information Letter EMD99-05 - Coalbed Methane Policy; TITLES-03-02 - 2003/2004 Petroleum and Natural Gas Rights Disposition Dates; and EMD00-05 - Amended Crown Reserve Bidding Procedures.

Endorsed by the
Assistant Deputy Minister

August 8, 2001