Questerre Energy Corp., Calgary, said it will challenge “last-minute restrictions on oil and gas activities and hydraulic fracturing” in regulations implementing 2016 petroleum legislation in Quebec.
In a press release, the company welcomed implementation of the Petroleum Resources Act, saying modernization of Quebec hydrocarbon law is essential to Utica shale development in the St. Lawrence Lowlands.
But it said it will challenge specific regulations that it says exceed the government’s authority, contradict scientific studies, and fail to meet consultative requirements.
Other parts of the regulations, it said, “while stricter than other jurisdictions, are generally workable.”
Questerre and Talisman Energy Inc., now Repsol Oil & Gas Canada Inc., suspended a pilot horizontal-drilling program assessing Utica shale discoveries in the St. Lawrence Lowlands in 2010 to await studies underlying the petroleum legislation.
When the government published draft implementation regulations last June, Questerre said they would “have the effect of banning hydraulic fracturing and any meaningful exploitation of natural gas in Quebec.”
Questerre plans to consolidate Repsol Canada’s St. Lawrence Lowlands interests and become operator. Closing of the deal is contingent on the new regulations.