Rules support responsible natural gas, petroleum growth
New regulatory changes move B.C. to the forefront of the petroleum and natural gas sector in North America, supporting growth and jobs in a vibrant industry, while protecting the province’s natural beauty, announced Energy, Mines and Petroleum Resources Minister Bill Bennett. These changes came into effect on Oct. 4 with the formal implementation of the Oil and Gas Activities Act (OGAA) and its regulations. Following extensive consultations with stakeholders, OGAA and its regulations will modernize a regulatory framework that is almost 50 years old. The Pipeline Act, the Oil and Gas Commission Act and the regulatory provisions currently found in the Petroleum and Natural Gas Act will be repealed and will now be governed under the Oil and Gas Activities Act. See the News Release.

MABC Deeply Disappointed by Federal Decision
on the Prosperity Mine
The Mining Association of British Columbia (MABC) is very disappointed in the recent decision by the federal government to reject the Prosperity gold-copper mine located near Williams Lake, owned by Vancouver-based Taseko Mines Limited. Major mines are rare but very valuable to the economy, and Prosperity offered much in terms of job creation, royalties and tax revenues and new opportunities for First Nations and the Williams Lake region. The balance between economic, social and environmental values led the province to approve the proposal for Prosperity. See the Full Article as posted by MABC.

BC Cabinet Shuffle Creates a New Ministry of Natural Resource Operations Separate from Forests, Mines and Lands
The recent cabinet changes separated the policy and administration, research and revenue portfolio of three former ministries (responsible for forests and range; energy, mines and petroleum resources; and agriculture and lands) from their licensing, permitting and operations responsibilities. The newly created Ministry of Forests, Mines and Lands, under Hon. Pat Bell, will be responsible for a broad range of public policy, tenure administration, revenue, market pricing and investment administration and land management initiatives. See the Full Article as posted by Davis LLP.

Association for Mineral Exploration British Columbia comments
on the recent BC Cabinet and Ministry Shuffle
Recently, cabinet changes were announced that realigned the provincial government organizational structure, particularly in regard to natural resources management. AME BC staff have discussed the changes with several ministers and will monitor how changes affect members; here are immediate effects on key operational areas of government.

1. All mineral exploration, mine permitting and regulation will be under the new Ministry of Natural Resource Operations, headed by Minister Steve Thomson.
2. The Mines Inspectorate has been relocated into the new Ministry of Natural Resource Operations as well. The Chief Mines Inspector, Al Hoffman, remains the statutory authority for mining and mine review committees continue to be the vehicle for dealing with mine permitting and amendments. At this time, AME BC understands that the role and authority of the Chief Gold Commissioner will also be part of the new Ministry of Natural Resource Operations under Minister Steve Thomson.
3. A new Ministry of Forests, Mines and Lands has been established, headed by Hon. Pat Bell (formerly Minister of Forests and Lands and a former Minister of State for Mining). Hon. Randy Hawes remains Minister of State for Mining and is also part of this ministry. This new ministry is responsible for forestry, mines and lands policy (the new Ministry of Energy, headed by Hon. Bill Bennett, is similarly structured), so all legislative or policy developments will flow from this ministry. However, only the BC Geological Survey, which includes the Mineral Development Office, has been moved into this ministry from the former Ministry of Energy, Mines and Petroleum Resources.

BC Cabinet Shuffle Creates a New Ministry of Natural Resource Operations Separate from Forests, Mines and Lands
The recent cabinet changes separated the policy and administration, research and revenue portfolio of three former ministries (responsible for forests and range; energy, mines and petroleum resources; and agriculture and lands) from their licensing, permitting and operations responsibilities. The newly created Ministry of Forests, Mines and Lands, under Hon. Pat Bell, will be responsible for a broad range of public policy, tenure administration, revenue, market pricing and investment administration and land management initiatives. See the Full Article as posted by Davis.

Reaction to BC Cabinet Shuffle
After almost 100 years, the B.C. Forest Service has reached a parting of the ways. Key operations, including approval of cutting permits, compliance, investment, and wildfire management are being separated from the policy-making side and dispersed to a new ministry of natural resource operations. Other ministries with responsibility for provincial lands, resources and the environment are being subjected to top-to-bottom reorganization as well. Mines, long yoked with energy, has been dispersed in two directions, the policy side paired with what’s left of forestry, while operations went to the ministry of natural resource operations (MNRO) as well. The environment ministry “has been reduced in size and function,” as the government itself put it this week. Policy remains in house. The rest is MNRO-bound. See the News Story as posted by the Vancouver Sun.

United States requests consultations with Canada
under Softwood Lumber Agreement
United States Trade Representative Ron Kirk announced recently that the United States has requested consultations with Canada under the 2006 Softwood Lumber Agreement (SLA) regarding the apparent unfair under-pricing of timber harvested from public lands in the Interior region of British Columbia. Requesting consultations under the SLA initiates the dispute settlement process and provides an opportunity for the United States and Canada to exchange views and attempt to resolve their differences. If the matter is not resolved during consultations, either the United States or Canada may request arbitration. See the Press Release.

Some deals stink: Land transactions involving
environmental contamination
Re: Environmental Management Act
Lawyers like chasing down “environmental angles” on their files just about as much as they like chasing down tax angles. Whether it’s a corporate or commercial transaction, or dealing directly with real property, clients need both legal and technical guidance on lurking environmental issues. Here is an example of a situation encountered every day by commercial solicitors: the purchase and sale of land. If there is one thing unwitting purchasers of contaminated land have in common, it is that each wishes they would have simply found out the site was contaminated so that the contamination could have been considered along with all other important factors in the deal. Some insight into this area of law can help to avoid certain pitfalls. See the Full Article as posted by Harper Grey's Environmental Practice Group.