Petroleum producers are still looking for answers on B.C. offshore oil and gas development in the wake of a federal report that leaves a moratorium on seismic and drilling activity in place.

A panel headed by former National Energy Board chairman Roland Priddle made no recommendation on whether to lift or continue a federal moratorium that has been in place since the early 1970s. The B.C. government has also had a moratorium on offshore oil and gas activity for three decades.

If Ottawa lifts its moratorium, B.C. is expected to lift its ban. Premier Gordon Campbell's government has voiced its desire to have offshore activity begin by 2010.

Chris Campbell of Ocean Industries B.C., an offshore oil and gas lobby group, said his organization had hoped Priddle would provide a clear recommendation based on a strategic assessment - but didn't get one.

Wayne Chose, Business Edge
West Coast Environmental Law lead oil and gas lawyer Karen Campbell praises the Priddle report for its even-handedness.

He said media reports that Priddle found 75 per cent of British Columbians are opposed to offshore oil and gas activity are "factually incorrect.”

"It's not what the public said," he said, adding the results contradict voluntary submissions to the panel and other reports concluding 50-75 per cent of British Columbians favour a responsible approach to restarting offshore oil and gas activity. Campbell also pointed to several comments in the report that say many submissions were based on a lack of understanding of the issue.

Campbell noted that while the Priddle report is definitely not a comprehensive look at the issue, it is "a step forward.”

Ottawa will likely have to find a middle position that maintains the moratorium but allows scientific research to continue, he added.

Ocean Industries B.C. and other groups in favour of offshore oil and gas development say that seismic and preliminary evaluations should be allowed to determine the size of the oil and gas reserves and whether they are commercially viable.

But opponents argue that seismic and drilling activities pose a risk to fish, whales and other marine species as well as a safety concern in case of an oil spill or explosion.

"That (safety concern) is very real," said Chris Campbell. "It was a concern even on the East Coast before the unfortunate (recent Terra Nova) spill by Petro-Canada. It's always a concern with this industry. The reality is that we've got risky things going on around us all the time.”

While Campbell called on federal Energy Minister John Efford to make his staff aware of issues "in the middle" and look at the question from both a national and regional perspective, Priddle concluded that opponents and supporters of offshore oil and gas are so polarized that there's no room for a public-policy compromise.

"There are no shades of grey here and we certainly found that throughout the process," Priddle told reporters during a recent news conference in Sydney, B.C., while unveiling his group's findings.

According to the Priddle report, 75 per cent of 3,700 people who made oral or written submissions are opposed to offshore oil and gas activity.

Priddle's panel heard oral presentations during a tour of 10 different locations and written submissions from all over B.C.

Some mayors and other politicians in coastal communities, who are in favour of lifting the moratorium, have complained publicly about the panel's method of counting joint submissions from one source as only one submission. They contend the method under- estimates the actual number of people in favour of lifting the moratorium.

B.C. Energy Minister Richard Neufeld has called the Priddle report useless, arguing that it did not tell the government anything it did not already know. He said he was also disappointed that Priddle did not make a recommendation on whether to lift or continue the moratorium.

Some industry insiders have said the decision on the moratorium is stalled because Prime Minister Paul Martin's federal Liberal government holds a tenuous minority.

Karen Campbell, an oil and gas lawyer with West Coast Environmental Law, said Neufeld is upset with the Priddle report's findings because it doesn't tell him what he wants to hear.

"Part of the reason why the B.C. government is having these problems is because they've barreled ahead so dramatically on their agenda," she said.

Neufeld, the premier and other government members have also been "very arrogant" in their approach, she added.

"If they'd stopped, if they'd taken some time, checked in with British Columbians and really were in touch with people, they might not be in the position now where we have such a polarized debate on this issue.”

Campbell said she was glad the federal government stepped in and did the panel review because it allowed for public consultation that was not pushed by the province's desire for offshore oil and gas development.

She also praised Priddle for not making a recommendation on whether to lift or continue the moratorium.

Priddle panel members were in a difficult position, Campbell added, because groups interviewed were overwhelmingly opposed to B.C. offshore oil and gas development, while the provincial government has been pushing for it.

"I actually think the way they approached it was fairly wise," she said. "I think the Priddle report is good, responsible public policy.”

Other options presented by Priddle's group were to maintain the moratorium indefinitely, keep the moratorium while conducting limited activity, or lift the moratorium completely.

"If I had my way, we would maintain the moratorium - period," she said. "If we can't do that, I think that we should maintain the moratorium for a time and then allow some research and other work to be done as to whether or not (the moratorium should be maintained or lifted).”

Ted Spearing, the manager of environment, safety and public for Chevron Canada Resources, says the report shows the diversity of opinions on the issue.

"People care deeply about this area and economic benefits, so it's not surprising that strong opinions have been reported," he said.

He said the moratorium should be lifted to allow exploration to determine what hydrocarbons are present that could benefit resource owners, developers and communities.

Chevron Canada is one of two oil and gas producers that have mineral rights for offshore B.C. The other is Shell Canada.

"The information on the geology out there is quite dated," Spearing noted. He added Chevron would like the opportunity to bring modern exploration technology to the area.

Before making a decision on the moratorium, federal energy minister Efford will weigh the Priddle report against a First Nations and a Royal Society report, which found that there was no scientific reason why the moratorium could not be lifted, provided that an adequate regulatory regime is put in place.

"The need to address First Nations concerns is of central importance," the report noted.

Many observers believe that the provincial moratorium will be lifted as soon as the federal moratorium is lifted. But Neufeld told Business Edge his government's approval is far from a fait accompli.

"(Assuming there are no roadblocks to B.C. lifting its moratorium) is being pretty simplistic," said Neufeld. "There are a whole bunch of hurdles to climb to get that process done.”

- with files from CP

(Monte Stewart can be reached at monte@businessedge.ca)