Minister of Environment and Energy Jamie Ballem has issued a Call For Bids for oil and natural gas exploration rights on four separate parcels of land.
The lands are located in East Prince and West Queens Counties. They encompass 71,218 hectares, 35,609 hectares, 71,326 hectares and 53,615 hectares.
“I’m pleased to see that there continues to be considerable interest in natural gas exploration in Prince Edward Island,” said Minister Ballem. “The province is still considered an under-explored region.”
Under the province’s Oil and Natural Gas Act, the process of issuing an oil and natural gas permit starts with the Minister receiving a written request that lands be submitted in a Call for Bids, as has happened in this case. Bid packages are made available to prospective bidders which describe the area up for bid, criteria for selection and terms and conditions that must be met by the bidder. As part of the process, bidders must submit a work plan and post a performance bond that represents one quarter of the value of the work that is to be carried out during the six-year term of the permit.
The issuance of an oil and gas permit does not transfer property rights to the successful bidder. Access to, or over, private property must be negotiated with the property owner.
Companies have until 2 p.m. (ADT), July 30, 2004 to submit bids on the four parcels of land currently up for bid. Further information and bid documents are available from the Department of Environment and Energy, Energy and Mineral Section, at 894-0288. A map can be viewed at http://www.gov.pe.ca/enveng/gas/index.php3?number=1002045 .