The Canadian Government has introduced the new Canada-Quebec Gulf of St Lawrence Petroleum Resources Accord Implementation Act, for responsible offshore resource development in the area.
The Gulf of St Lawrence and surrounding areas have the potential for more than 39 trillion cubic feet of gas and 1.5 billion barrels of oil, in estimates by the government.
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Under the new legislation, Quebec can earn revenues, including royalties and many taxes and fees, which would be generated from the development of oil and gas resources in the Gulf of St Lawrence.
The legislation is expected to incorporate the safety and environmental protections found in the Energy Safety and Security Act in Canada.
Canada’s Natural Resources Minister Greg Rickford said: "Our government is focused on creating jobs, growth and long-term prosperity in Quebec and across Canada.
"Our collaboration with the Government of Quebec on this historic legislation will enable the safe and environmentally responsible development of petroleum resources in the Gulf of St Lawrence, creating economic opportunities throughout the region."
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By GlobalDataThe accord was originally signed in 2011 and established two different phases of joint management.
In the initial transitional phase, the governments will create a joint regulatory function and the second, permanent phase would be triggered by a commercial discovery of oil or natural gas resources.
During this phase, a joint independent offshore board would be created.
Image: A map of the Gulf of Saint Lawrence, Quebec. Photo: courtesy of Benoit Rochon.
