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The Lowlands are situated in Quebec, south of the St. Lawrence River between Montreal and Quebec City. Building a circular economy on a significant discovery on Quebec Utica could result in the second lowest supply gas cost in North America.
While Questerre pursues a business and political solution for the development of its natural gas discovery, it is protecting its legal rights following the enactment of Bill 21, An Act mainly to end petroleum exploration and production and the public financing of those activities in Quebec (“Bill 21”).
The Company is assessing available provincial and federal funding programs for its proposed carbon storage pilot. This follows the application for the pilot submitted to the Quebec Ministry of Economy, Innovation and Energy (the “Ministry”) under Bill 21 in the first quarter of this year. The project includes a comprehensive program to test the carbon storage potential including injection and monitoring wells, compression facilities and a pipeline to an adjacent industrial park.
In June, the Ministry tabled in the Quebec National Assembly Bill 69, An Act to ensure the responsible governance of energy resources and to amend various legislative provisions (“Bill 69”). The centerpiece of the proposed legislation is an integrated energy resource management plan to promote energy development in Quebec. Among other things, it will establish for electric power and natural gas markets, policy directions, objectives and targets regarding supply, energy infrastructure and innovation. Questerre intends to participate in the public consultations for Bill 69 to be held this fall.
During the quarter, the Attorney General of Quebec was granted leave to appeal the Quebec Superior Court (Civil Division) ruling from earlier this year suspending key provisions of Bill 21 pending a hearing on the merits of the case. The appeal is scheduled for October of this year. The Company is following the legal process for the main hearing. Following the questioning of key Government representatives to be scheduled for later this year, a trial date for the hearing on the merits of the case will be set.
