Overhaul of Underground Storage and Pipelines

Summary#

• Bill 17 rewrites Quebec’s rules for using underground reservoirs and some pipelines. Its goal is to support the energy transition while protecting people, property, and the environment.

• It does not reopen oil and gas exploration or production. Those activities remain banned under a separate law.

• Key changes:

  • Creates a new license system to search for and use underground reservoirs and certain natural fluids (other than water), such as hydrogen, or to store a fluid underground (for example, carbon).
  • States that underground reservoirs and natural fluids below the soil (other than water) belong to the Quebec government.
  • Sets safety, environmental, closure, and site restoration standards, with financial guarantees companies must post.
  • Makes most documents companies file with the ministry public, with limited exceptions set by regulation.
  • Protects cities and nature areas: projects are not allowed inside urban perimeters or protected areas, with narrow exceptions (for monitoring or emergency fixes).
  • Creates a formal process to settle conflicts between reservoir projects and mining claims.
  • Limits new authorizations under this law to petroleum pipelines; existing gas pipelines from before 2018 remain covered.
  • Allows government-run pilot projects to test new methods and technologies under strict conditions.

What it means for you#

• Residents and landowners

  • The province owns underground reservoirs and natural fluids under your land (not water). A company needs a provincial license to explore or use them.
  • For private land, companies need your written permission to access. If talks fail and it’s for an exploitation project, the government can allow expropriation (with compensation) so work can proceed.
  • If a company wants to buy a home or farm on agricultural land for a project, it must pay your reasonable professional negotiation fees, up to 10% of the property’s assessed value.
  • You and your municipality must be notified when a license is issued and before work starts.
  • If there’s a leak or other risk to health, property, or the environment, emergency work can be done on land to fix it. The land must be restored afterward.

• People living near potential projects

  • Projects are off-limits inside official urban perimeters and protected areas, unless the minister allows limited monitoring or repair work.
  • Safety rules, site closure, and restoration are mandatory. Financial guarantees are required, so the public is not left with cleanup costs.
  • You can see licenses, authorizations, and many company filings in a public registry.

• Municipalities and regional county municipalities (MRCs)

  • You will receive notices about licenses and upcoming work.
  • If the minister sets land-use conditions for a project, you must align your planning documents and can use interim control measures.
  • Urban perimeters are automatically excluded from these activities. MRCs can ask the minister to lift or later reinstate that exclusion for specific areas.
  • In some cases set by provincial regulation, municipal rules may block work. The province decides when this applies.

• Businesses and developers

  • You need a license to:
    • Search for underground reservoirs or natural fluids (other than water).
    • Use a reservoir to store a fluid (for example, carbon).
    • Extract certain natural fluids (other than water) found underground.
  • You must meet minimum work commitments or pay compensation, follow technical standards, secure and restore sites, and post financial guarantees.
  • Most filings become public. The minister can also require you to maximize economic benefits in Quebec.
  • If your area overlaps with a mining right, you may need an agreement. If talks fail, an external decision-maker can set conditions so both activities can proceed.
  • New pipeline rules under this law apply only to petroleum pipelines. Gas pipelines built or used before September 20, 2018, are still covered by the older chapter.
  • Pilot projects can be authorized for up to five years (extendable by two) to test innovations, with tailored rules that must still protect health, safety, and the environment.

• Miners and resource companies

  • You may be required to reach agreements with reservoir license holders before certain work.
  • If you cannot agree, an external decision-maker can impose conditions. Decisions are binding and enforceable.

• Environment and public safety

  • The minister must monitor former carbon storage sites after licenses end and closure is complete.
  • In emergencies (like leaks), required fixes can proceed even in areas otherwise restricted, with notices to the responsible environment ministers and a duty to repair any harm.

Expenses#

No publicly available information.

Proponents' View#

• Helps the energy transition by enabling safe carbon storage and underground hydrogen or other clean-energy uses.
• Replaces a patchwork of rules with clear licenses, standards, and oversight, which can attract investment and create jobs.
• Strong safeguards: financial guarantees, strict closure and restoration rules, and ministerial powers to order fixes.
• Transparency improves trust: most company documents and decisions go on a public registry.
• Protects communities and nature by excluding urban perimeters and protected areas, while letting municipalities be informed and align land-use plans.
• Conflict-resolution tools reduce delays when projects overlap with mining claims.

Opponents' View#

• Environmental risk concerns: possible leaks, groundwater impacts, or long-term liability from underground storage (especially carbon) may fall on the public.
• Landowner rights: state ownership of subsurface resources and possible expropriation can feel intrusive, even with compensation.
• Municipal authority is limited: the province decides when local rules can block projects, and can authorize certain work even in excluded areas.
• Pilot projects may operate under different rules, which critics worry could weaken normal protections.
• Administrative workload and costs for municipalities to adjust planning and oversee notices without dedicated funding.
• Keeping petroleum pipeline authorizations may be seen as prolonging fossil fuel infrastructure.