Amendments introduced today clarify both oil and gas activities in the province and strata property governance.

Bill 12, the Natural Gas Development Statutes Amendment Act, 2014, amends three B.C. laws: the Oil and Gas Activities Act, the Petroleum and Natural Gas Act and the Strata Property Act.

Oil and Gas Activities Act (OGAA)

Natural gas and oil activities in British Columbia are regulated under the OGAA. The amendments will allow industry to adopt new operational improvements.

As well, amendments will further define a landowners' right to appeal permits issued on private land and remove the risks associated with unnecessary appeals which could delay oil and gas development.

The amendments will also remove an exemption for a small number of legacy pipelines. Permits will be retroactively issued and the pipelines will continue to be subject to the requirements of the Act and compliance and enforcement actions by the BC Oil and Gas Commission.

Petroleum and Natural Gas Act (PNG Act)

The natural gas and oil sector has changed significantly since the PNG Act was last updated in 1982. The amendments introduced today will modernize the Act. The Province made this commitment when it released B.C.'s Natural Gas Strategy in February 2012.

The amendments will streamline the administration of natural gas and oil subsurface rights, creating a more consistent approach for all three tenure types - permits, leases and drilling licences. Fines will be updated so they align with penalties in other jurisdictions.

Changes will also permit the Province to modernize tenure practices, and remove duplication with tenure-related laws.

Collectively, these amendments will increase investor confidence in natural gas and oil development, giving companies further clarity about crown land tenure management.

Strata Property Act (SPA)

Amendments to the Strata Property Act will make it easier for strata councils to carry out their responsibilities by removing regulatory barriers for strata corporations and owners, explaining requirements and clarifying definitions within the Act.

The amendments will confirm that paying for and accruing funds to pay for a depreciation report is a legitimate operating fund expense and can be approved by a majority vote.

As well, the amendments will make it easier for strata corporations to pay for repairs recommended by their depreciation report by reducing the required approval for contingency reserve fund expenditures from three-quarters to majority vote.

The amendments will change the definition of purchasers to make it clearer that specified rights and obligations do not end when the title has changed hands.

Quick Facts:

• The Ministry of Natural Gas Development grants tenure for Crown-owned natural gas and oil resources to industry under the PNG Act. These rights are required before exploration and development operations can commence. Exploration and development activities are permitted and regulated by the BC Oil and Gas Commission under the Oil and Gas Activities Act.
• The Strata Property Act provides a framework that enables strata owners to maintain control over their property and have a voice in its management. There are approximately half a million residential strata lots and 29,000 strata corporations in B.C. Depreciation reports have been mandatory since December 2013.

Learn More:

To view a copy of the bill, visit: http://www.leg.bc.ca/40th2nd/votes/progress-of-bills.htm

Media Contact:

Sandra Steilo
Ministry of Natural Gas Development
250 952-0617