Summary#
Bill 17 of Quebec would modernize the rules regarding underground reservoirs and certain pipelines. It would notably replace the Natural Gas Storage Act with the Act Regulating Underground Reservoirs and Certain Pipelines.
The bill would target the exploration and exploitation of underground reservoirs and certain fluids naturally present underground, other than water. Hydrogen is cited as an example. It would not allow activities already prohibited by Quebec law that ends the exploration and production of hydrocarbons as well as the exploitation of brine.
The main measures would be as follows:
- Requirement to obtain a license to explore or exploit an underground reservoir or certain fluids.
- Increased powers for the government to set rules, working conditions, and environmental requirements.
- Obligations to secure, close, rehabilitate, and restore sites. Financial guarantees may be required.
- Automatic protection of reservoirs and fluids located within urbanization perimeters.
- Possibility to exempt certain areas from activities, including protected areas, certain aquifers, and wetlands of interest.
- Participation of municipalities in the planning of works. In some cases, a municipality could prevent works according to the rules set by regulation.
- Obligation to resolve certain conflicts between license holders and holders of mining rights. An external decision-maker could set the applicable conditions if the parties do not agree.
- Monitoring by the minister of sites where carbon has been stored, even after the abandonment or expiration of a license.
- Publication of documents and information submitted to the minister, except for exceptions provided by regulation or by access to information rules.
- Power to create pilot projects with a maximum duration of five years, extendable by two years. These projects could test technologies or methods different from those provided by law, without compromising health, safety, or the environment.
- Limitation of construction and use permits for pipelines to oil pipelines. Transitional rules would, however, apply to existing oil or natural gas pipelines.
Several important details, including license conditions, authorized works, and financial guarantees, would be specified later by regulation.
The bill is presented by Samuel Poulin, Minister Delegate for Economy and Small and Medium Enterprises. The date of assent and several effective dates are not yet indicated.
What This Means for You#
- Landowners: a license could target private land or land leased from the state. The holder would need to notify you and obtain your written consent before accessing it.
- Forced Access: for an operating license, the government could authorize the acquisition of rights through expropriation if no agreement is reached. Expropriation is a procedure that allows the state or an authorized holder to acquire a right over land, with compensation according to applicable rules.
- Farm Owners: if the holder wants to purchase a residential or agricultural property, they would need to pay certain professional fees related to the negotiation, up to 10% of the value recorded in the property assessment roll.
- Municipalities: they would receive notices about the works and would need to align their planning rules with certain conditions imposed by the minister.
- Residents of Cities and Villages: the targeted activities would generally be prohibited in urbanization perimeters, subject to certain rights already granted.
- Environment and Protected Areas: exploration and exploitation activities would be removed from existing protected areas, with possible exceptions for monitoring or repairing damages.
- Businesses and Researchers: the project would create a licensing regime and allow pilot projects for technologies related to underground reservoirs, carbon storage, or innovative sectors.
- General Public: more information could be made public, but some documents may remain confidential.
Costs#
The precise costs are not indicated in the available information.
Licensed companies may have to pay:
- fees for certain applications or authorizations;
- financial guarantees;
- compensation if they do not carry out the minimum required works;
- costs for securing, closing, and restoring sites;
- costs related to repairing damages or works carried out by the minister in case of default.
The bill would also allow for the imposition of fines and administrative sanctions. The government could set several amounts by regulation.
For municipalities and the government, the implementation of the new regime could incur costs for monitoring, analysis, consultation, and site management. However, the text provides that certain amounts collected would be dedicated to the administration of the regime.
Supporters' Viewpoint#
Supporters might argue that the bill:
- creates a unique framework for new or evolving activities;
- better regulates risks to health, safety, and the environment;
- promotes research, innovation, and technologies related to hydrogen or carbon storage;
- automatically protects urbanization perimeters and several sensitive territories;
- imposes site restoration and allows for financial guarantees to be required;
- improves transparency through the publication of information;
- provides a mechanism to resolve conflicts between mining activities and activities related to underground reservoirs;
- can support economic benefits in Quebec.
Opponents' Viewpoint#
Opponents might argue that:
- the bill grants the government broad regulatory powers, while several important rules are still unknown;
- access to private lands and the possibility of expropriation could create conflicts with landowners and farmers;
- pilot projects could allow for different standards than those of the usual law;
- long-term monitoring of sites, including carbon storage sites, could incur public costs;
- environmental protections could depend on ministerial decisions and future regulations;
- the regime could facilitate new industrial activities under the guise of energy transition, even if hydrocarbons remain prohibited;
- the role of municipalities could be limited when conditions are imposed by the minister.