Quebec is putting $100 million on the table to compensate oil companies now banned from exploration in the province -- though these companies are actually claiming $500 million for their expenses.

Bill 21, tabled Wednesday by Minister Jonatan Julien, does not provide any compensation for potential loss of revenue incurred by the province's decision to buy back permits.

Rather, it aims to cover the expenses incurred since 2015 by five companies -- accounting for $66 million out of the $100 million -- and cover three-quarters of the costs of closing wells and site restoration, which accounts for the remaining $33 million.

However, the companies are estimating their expenditures for exploring Quebec's oil and gas potential over the last 15 years at at $500 million, according to newspaper La Presse.

At a press conference on Wednesday, the Minister of Energy and Natural Resources said that in his judgment, the $100 million is a "fairly good estimate" and that there should be no "potential negotiations," though the text of the bill will be studied in a parliamentary committee with a view to improving it.

"We're giving ourselves fixed criteria, which will be precisely defined in the bill, [and] that's what we're going to stick to," he said.

"Some say it's a bit of a Homeric tale -- the billion-dollar potential," he said. "The bill does not intend to speculate on potential gains that have never been proven in the past."

The government is betting that the companies will be sure to pay their share of the rehabilitation of their wells, around $11 million, rather than simply declaring bankruptcy and leaving the bill to the province.

Quebec is only undertaing to reimburse companies' operating costs if they complete the rehabilitation of wells. That way, they would deprive themselves of part of the compensation if they don't fall in line.

If businesses disappear into thin air, the government will defray all of their closing expenses, instead of three-quarters. Nevertheless, it would only cost it $44 million rather than $100 million.

There are currently 182 active permits, mostly in the St. Lawrence Valley and in the Bas-Saint-Laurent and Gaspésie regions. The minister also specified 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.