Quebec is putting $100 million on the table to compensate the oil companies, which would instead claim $500 million for exploration expenses.
Bill 21 tabled Wednesday by Minister Jonatan Julien does not provide for any compensation for potential revenue losses incurred by the buyback of permits.
Instead, it aims to cover expenses incurred since 2015 and to cover three quarters of the costs of closing wells and restoring sites.
Companies estimate that they have spent $500 million exploring for oil and gas over the past 15 years, according to La Presse.
At a press conference Wednesday, Julien said the $100 million is a "fairly accurate estimate" and that there should be no "potential negotiations," subject to the parliamentary committee's study to improve the text.
"We are giving ourselves fixed criteria, which will be defined in a precise manner in the bill, that is what we will stick to," he pleaded.
"Some people say that these are kind of Homeric stories, the potential for billions of dollars," he said."The bill is not intended to speculate on potential gains that have never been proven in the past."
There are currently 182 active permits, mostly in the St. Lawrence Valley and the Lower St. Lawrence and Gaspé regions. The minister also noted that there are currently 62 wells to be rehabilitated.
There has been no exploration work in Quebec since 2011.
- This report by The Canadian Press was first published in French on Feb. 2, 2022
