QUÉBEC, Oct. 28, 2021 /CNW Telbec/ - Contrary to what Québec Solidaire is claiming this morning, it is not $5 billion but rather several tens of billions or more in royalties, private investments and taxes that Québec has lost by giving up production of the oil and gas resources that are right under its feet. This decision has no economic or environmental logic since it will not change the consumption of oil and gas in Quebec, which will continue to import this energy rather than produce it locally, resulting in increased production of GHGs linked to the transport of the resource.
Let us recall that for years the various energy policies of Quebec, as well as economic and other budgetary policies, have encouraged investors to deploy capital in order to explore the territory of Quebec in search of oil and natural gas. These investments of several hundred million dollars notably led to the discovery of the Utica Shale, a huge gas field that could cover the consumption needs of Quebec for more than a hundred years and whose gas value is calculated in hundreds of billions of dollars.
Quebec Solidaire proposes that the government break the Law and expropriate without compensation the assets of companies that have invested in good faith to support the economy of Quebec. Breaking Quebec laws by not compensating companies at fair value would have catastrophic consequences on the ability to attract to Quebec the investors who are today solicited by Mr. Legault in order to achieve his ambition of making Quebec the battery of North America.
Expropriation and property laws are clear that fair value must be paid
The Hydrocarbon Act makes it clear that the rights are real property rights as described in the Chapter H-4.2. Division II.
IMMOVABLE REAL RIGHTS 2016, c.35, a 23
15. The exploration, production and storage rights conferred by a licence and the right to produce brine conferred by an authorization are immovable real rights.
Further, the laws of Quebec are clear on expropriation. Here are extracts from the Civil Code of Quebec and the Expropriation Act:
Civil Code of Quebec, CQLR c CCQ-1991
952. The owner cannot be forced to cede his property, except by means of expropriation made in accordance with the law for a cause of public utility and in return for fair and prior compensation.
Expropriation Act, CQLR c E-24
58. Compensation is set on the basis of the value of the expropriated property and the damage directly caused by the expropriation.
About Utica Resources
Utica Resources is a Quebec company whose mission is to participate in the energy transition currently underway by developing a diversified portfolio that includes, in addition to light oil and natural gas, renewable energy projects such as hydrogen and CO2 storage. All our projects are carried out with a view to sustainable development, optimal use of available resources, respect for host communities and maximization of local economic benefits.
SOURCE Ressources Utica
Utica Resources, Mr. Mario Lévesque, President and Chief Executive Officer, [email protected]
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