Canada: Welcome Clarity For Quebec's Oil And Gas Industry: The New Petroleum Resources Act Is Introduced

Mindful not to repeat the mistakes of its predecessors, Premier Couillard's government continues very deliberately to lay down a modern and comprehensive framework for hydrocarbon exploration and production in Quebec.

After many studies and considerable consultation, Energy and Natural Resources Minister Pierre Arcand tabled Bill 106 before the National Assembly on June 7, 2016. Bill 106 (An Act to implement the 2030 Energy Policy and to amend various legislative provisions) does three things:

  1. It creates Transition énergétique Québec ("TEQ"). The mission of TEQ is to prepare an energy transition masterplan and to support, financially and otherwise, energy transition, innovation and efficiency in Quebec.
  2. It adopts measures to increase electric transport and amends the Act respecting the Régie de l'énergie to increase gas pipeline capacity in and to Quebec. In recent years, a couple of very large industrial investments along the St. Lawrence River have had to be shelved for lack of readily available gas pipeline capacity. Quebec wants to avoid a repeat of this unfortunate and embarrassing state of affairs.
  3. Finally, it enacts the Petroleum Resources Act ("PRA"), Quebec's first modern statute dedicated to the development of oil and gas. The PRA is a comprehensive statute with more than 260 sections. It is designed to (i) foster the exploration of hydrocarbons in Quebec, (ii) ensure that any ensuing production is optimal, economically sound, uses best environmental practices, and has local and First Nations acceptance, and (iii) ensure that there are sufficient funds available when the time comes permanently to close wells and restore sites. The following points, relating to the process that Bill 106 would establish, are of particular interest:
  • New exploration licenses will be awarded by auction. Up to now they have been awarded using the "free entry system" in the same manner as mining rights.
  • Current exploration licenses will be recognized under the PRA.
  • An exploration license holder may apply to the Minister of Energy and Natural Resources for a production license.  Such license will be issued if (i) the Régie de l'énergie has issued a favourable decision regarding the application (the content of such application will be set out in regulations but will have at a minimum to describe the project, including its production plan and methodology), and (ii) the Government of Quebec has authorized the applicant's production project pursuant to section 31.5 of the Environment Quality Act. A Section 31.5 authorization may only be granted after completion of a satisfactory environmental assessment. Such assessment may involve public hearings.
  • Entrusting the Régie de l'énergie instead of the Ministry of Energy and Natural Resources with the review of the merits of any production license application has the dual merit of better insulating the approval process from politics and ensuring that government is able to secure, without civil service constraints, the specialized talent required properly to examine and evaluate production license applications. After all, this is a very new field of endeavour for Quebec.

Quebec public opinion: a growing consensus

Concerns have been raised about the PRA and Quebec's "open door" to oil and gas. Critics contend that such a move is inconsistent with Quebec's commitment to transition away from hydrocarbons. Government and business counter that the PRA is congruent with Quebec's recently issued 2030 Energy Policy. The 2030 Energy Policy was well received across the spectrum and is viewed as green and ambitious while at the same time recognizing that (i) oil and gas is Quebec's number one import (the annual import bill fluctuates but is consistently above $10 billion and adds substantially to Quebec's chronic balance of payment deficit), (ii) in 2030 Quebec will require oil and gas to meet 39% of its energy needs, (iii) natural gas can displace dirtier fuels in shipping, trucking and remote northern areas, and (iv) Quebec industry requires oil as a raw material (what has come to be known in Quebec as " social oil").

Also helping to create a consensus in favour of the PRA is the fact that many of the current oil and gas projects are in the Gaspé Peninsula, an economically challenged region in need of jobs. At least one authoritative opinion poll has found that more than 50% of Quebec adults are in favour of local production while fewer than 25% want to continue to rely on imports for all of the province's oil and gas needs.

Where Bill 106 goes from here: the legislative process

Parliamentary commission hearings on Bill 106 have been scheduled for August 16-19, 2016 so as to allow early adoption during the National Assembly's Fall session. 

Regulations are unlikely to be published before adoption of Bill 106. These regulations, at least as they pertain to the PRA, promise to be comprehensive.

Other recent developments

The lack of a modern regulatory framework has not stopped Quebec from moving forward on oil and gas. Pétrolia Inc. announced on June 16, 2016 that Ressources Québec, a subsidiary of state-owned Investissement Québec, had invested $8.5 million in its Bourque Project located near Murdochville in the Gaspé Peninsula.  Other work continues elsewhere in Quebec, including oil production testing.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Stikeman Elliott LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Stikeman Elliott LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions