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Nova Scotia Premier Tim Houston thinks a decision on the next step of a process that could lead to exploratory drilling for onshore natural gas in the province is “pretty imminent.”
Last week, Dalhousie University confirmed that it forwarded to the province’s Energy Department its analysis of seven proponents that submitted expressions of interest to drill.
Houston, who is also Nova Scotia’s energy minister, said officials in his department are still working through the information, but he’s optimistic the process will move forward to the next step, which would be to negotiate agreements with the proponents recommended by Dalhousie.
“I’m confident that at least one and maybe as many as three or four might proceed to that stage,” Houston told reporters at a news conference in Debert on Wednesday, where he was speaking about support for wildfire response.
The premier said “at least a couple of the applications” didn’t fit the criteria to move ahead and officials in his department would inform those who did not make the cut. From there, negotiations would take place with those who did.
It will likely be a few weeks before the government is ready to announce any deals, said Houston.
“I think it’s pretty imminent.”
The government announced a $30-million agreement with Dalhousie in December to have the university lead the Subsurface Energy Research and Development Investment Program.
Along with weighing expressions of interest from companies interested in doing exploratory drilling, the program is also charged with a variety of research programs related to hydraulic fracturing — or fracking — for onshore natural gas, the potential environmental and health impacts of the practice and the viability of establishing a commercial industry in the province.
Drilling could begin next year
Of the $30 million the province put up, the majority — about $24.2 million — is intended as incentives for companies to do work in Nova Scotia. Houston has said that although he expects all that money will be spent, it could take several calls for bids before the fund is drained.
Timelines posted on the program website say exploratory drilling could begin as soon as July, but Houston said last week it is more likely drilling would not begin until sometime next year. That’s because companies will need time to secure drilling rigs and crews once they have agreements with the province, he said.
The premier has positioned the program as a key step in his government’s efforts to increase natural resource development in the province to generate new revenue streams at a time when Nova Scotia is struggling financially, as well as increase energy security. Those efforts also include potential offshore oil drilling, and offshore and onshore wind development.
Critics of the onshore natural gas plan have raised concerns about the risks fracking poses to the environment and human health. They’ve also raised questions about the level of consultation going into the process.
Houston has said projects would not proceed unless the science shows him they can happen safely.
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