1. Interior Basins Oil and Gas Development Strategy Presented to the BC Intermontane Workshop Calgary, Metropolitan Centre February 21 st, 2006 Presented by Derek Brown, Executive Director Resource Development & Geoscience Branch, Oil and Gas Division, MEMPR

2. OverviewOverview Strategy Goals/Objectives Strategy Goals/Objectives Benefits Benefits Linkages to Provincial Initiatives Linkages to Provincial Initiatives Key Elements, Phases, Steps Key Elements, Phases, Steps

3. The Strategy Aims to… Establish oil & gas development and production in the Interior Basins by the year 2015 Establish oil & gas development and production in the Interior Basins by the year 2015 Maximize opportunities for economic diversification, job creation, community and First Nation partnerships in BC’s Interior Maximize opportunities for economic diversification, job creation, community and First Nation partnerships in BC’s Interior

4. Assess oil and gas potential Assess oil and gas potential Stimulate industry activities and investment Stimulate industry activities and investment Address First Nations’ interests Address First Nations’ interests Maximize local benefits Maximize local benefits Coordinate activities amongst diverse groups Coordinate activities amongst diverse groups Strategy Objectives

5. Geographical Setting

6. Economic diversification and job creation in areas affected by Mountain Pine Beetle Economic diversification and job creation in areas affected by Mountain Pine Beetle Expansion of BC’s oil and gas industry: secure energy source Expansion of BC’s oil and gas industry: secure energy source Opportunity to demonstrate responsible energy development Opportunity to demonstrate responsible energy development Strengthened relationship with Communities and First Nations Strengthened relationship with Communities and First Nations Training and education Training and education Desired Benefits of Strategy

7. Links to Government Initiatives Mountain Pine Beetle Strategy Northern Trust Enhanced Energy Plan New Relationship Mining Plan Geoscience BC Geological Survey of Canada Strategy

8. Key Elements of the Strategy Petroleum Geoscience & Resource Assessment Petroleum Geoscience & Resource Assessment First Nations Engagement and Consultation First Nations Engagement and Consultation Community and Stakeholder Engagement Community and Stakeholder Engagement Investment Promotion Investment Promotion Tenuring Tenuring Royalties Royalties Coordination Coordination Government First Nations Industry Community

9. Petroleum Geoscience & Resource Assessment Petroleum Geoscience & Resource Assessment Geological mapping Geological mapping Seismic survey & assessment Seismic survey & assessment Basin modeling Basin modeling Preliminary petroleum resource profiling Preliminary petroleum resource profiling More advanced assessment of resource potential in partnership with industry More advanced assessment of resource potential in partnership with industry

10. Resource Tenuring Resource Tenuring Develop plans for tenure referral and community engagement, First Nation engagement and consultation Develop plans for tenure referral and community engagement, First Nation engagement and consultation Finalize tenure terms with industry and prepare for referral Finalize tenure terms with industry and prepare for referral Tenure referral Tenure referral Tenure approval Tenure approval Landowner notification Landowner notification Tenure disposition Tenure disposition

11. Assessment Basin modeling Seismic assessment Environment FN consultation and capacity building Community engagement Infrastructure Investment Promotion Advanced Exploration Industry/FN partnerships Industry investment Tenuring Increased exploration Infrastructure dev. Local jobs Community benefits Development Oil/gas production Continued exploration Increased investment Increased local jobs Significant local and provincial benefits Key Phases

12. ContactsContactsWebsite: http://www.em.gov.bc.ca/oilandgas Petroleum Geoscience: Vic LevsonDirector, Petroleum and Aggregate Geoscience 250-952-0391Vic.Levson@gov.bc.ca Vic.Levson@gov.bc.ca Fil FerriSenior Petroleum Geologist 250-952-0377Fil.Ferri@gov.bc.ca Fil.Ferri@gov.bc.ca Interior Basins Oil and Gas Development Strategy: Sachie Morii A/Director, Resource Development 250-356-9792 Sachie.Morii@gov.bc.ca Sachie.Morii@gov.bc.ca