Quebec hints at shutting down gas exploration

The Quebec government warned Friday that it might not allow natural gas development to proceed in the province.

The statement from Sustainable Development Minister Pierre Arcand during a Quebec Liberal caucus meeting at Lac-Beauport caught observers by surprise, since the government had spent months expressing support for the potential jobs and tax revenue that could come from exploration.

Premier Jean Charest echoed Arcand's comments outside the meeting. "The exploitation of shale gas will be done correctly on our territory — or it won't happen," Charest told reporters.

The comments came after another report of leaks from an exploration well.

On Wednesday, Quebec's Ministry of Natural Resources said it had found leaks of natural gas in 19 of 31 shale gas wells it inspected. Arcand said he has concerns that the industry can't control its wells.

But Quebec hasn't quite declared a moratorium yet.

The government said it will wait to see the results from a study by the provincial impact-assessment agency in February before deciding how to proceed.

Quebec is sitting on vast natural gas deposits, with potentially billions in royalties and billions of cubic feet in untapped resources.

They are located in three main regions targeted by the oil and gas industry for exploration, including the regional county municipalities of Lotbiniere and Becancour southwest of Quebec City, and Les Maskoutains northeast of Montreal.

From CBC News