FREDERICTION (GNB) – The development of a new natural gas royalty regime, the creation of the New Brunswick Energy Institute, and strengthening the province's regulatory management of the oil and gas industry are among the highlights of the provincial government's first progress report on The New Brunswick Oil and Natural Gas Blueprint, released today.

The blueprint, which contains 16 action items, was released in May of 2013 to help guide the expanding oil and natural gas sector.

“Our government has experienced great success in working on the blueprint's various action items over the last year,” said Energy and Mines Minister Craig Leonard. “The immense opportunities for our province in the oil and gas sector are being guided by the collaboration of an array of government agencies and departments, academia, First Nations, industry and other stakeholders who are coming together to create the best policy framework possible.”

Among the progress report's highlights is the development of a new natural gas royalty regime that was based on about two years of research, discussion, analysis and consultation. The new regime will significantly increase the royalties received for natural gas in the long-term without discouraging development and investment at the onset. With this new regime, the province's royalty revenues are expected to increase by about 50 per cent over the lifespan of a natural gas project compared to the previous royalty structure, ensuring that New Brunswickers receive the most benefit possible from the province's natural resources. 

The government also fortified energy research efforts with the creation of the New Brunswick Energy Institute. The institute has since announced two major research investments. The first aims to examine water flows with the Canadian Rivers Institute, and the second will gather the baseline data necessary to assess domestic well water quality where oil and natural gas development could potentially take place.

Coupled with New Brunswick's existing regulatory framework, many other blueprint action items aiming to strengthen the rules and regulations governing the oil and gas industry in New Brunswick are underway and slated for completion later this year, including:

  • enhanced water management measures;
  • the development of a compliance and enforcement strategy for oil and gas inspections;
  • the study of other regulatory models for the oil and gas sector;
  • the assessment and implementation of dispute resolution mechanisms;
  • the review of potential royalty revenue sharing regimes for the province; and
  • the ongoing monitoring and planning to address natural gas supply issues in New Brunswick.

“Our government has taken a prudent approach to improving New Brunswick's oil and natural gas policies to ensure that our resources are developed safely and responsibly for generations to come,” said Leonard.

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30-06-14