TITLES DIVISION                                              

SUBJECT:      RESPONSE TO CALL FOR PROPOSALS TO DEVELOP PROVINCIAL PETROLEUM AND NATURAL GAS RIGHTS WITHIN THE TUYA RIVER, KLAPPAN GROUNDHOG AND TELKWA COALFIELD REGIONS

In September 2001, the Ministry of Energy and Mines invited interested parties to submit requests for petroleum and natural gas rights in the Tuya River, Klappan-Groundhog and Telkwa coalfield regions for competitive bidding at one of the Ministry's monthly dispositions of petroleum and natural gas rights.  No responses were received.

The Ministry initiated a subsequent "Call for Proposals" on December 18, 2003 to develop these coalfields to facilitate exploration and development of coalbed gas in the northwest region of the Province.

The Call for Proposals expired on January 31, 2004 and the Ministry is currently reviewing responses to evaluate the Telkwa and Klappan-Groundhog coalfield areas.  As a result, the Ministry will not be accepting posting requests for petroleum and natural gas rights for these areas until further notice.  Tuya River remains open for postings.

Map of Klappan Groundhog and Telkwa Coalfield Locations attached.

For further information contact:

Colin Magee
Director, Oil and Gas
Titles Division
PO Box 9326, Stn Prov Gov’t
Victoria, BC  V8W 9N3
Telephone:  250-952-0335
Facsimile:  250-952-0331
Email:  Colin.Magee@gems8.gov.bc.ca

Gerald German
Executive Director
Titles Division

March 29, 2004