Compensation program – Ban on petroleum exploration and production

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The compensation program has been in force since August 23, 2022, and concerns holders of licences revoked under the Act ending exploration for petroleum and underground reservoirs and production of petroleum and brine.

The program establishes fair and equitable criteria to provide licence holders the opportunity to obtain reimbursement for the main expenses incurred since October 19, 2015, for each of the revoked licences. It also covers part of the expenses related to the permanent closure of wells and site restoration.

• To encourage holders of revoked licenses to carry out well closure and site restoration work in order to ensure the safety of persons and property and the protection of the environment.
• To uphold Québec’s reputation as an investment-friendly province, respectful of both local and foreign investors.
• To limit the Act’s impact on public finances.

The compensation program provides for the payment of compensation to eligible persons, that is, persons or partnerships that, on October 19, 2021:

• Were holders of a petroleum exploration or production licence
• Held a share of a right conferred by such a licence

The program provides for the following compensation:

• Personal compensation and any lump sum relating thereto—more specifically, expenses that fall under the category of exploration or development expenses and of related expenses
• General compensation and any lump sum relating thereto—more specifically, expenses that fall under the category of administrative costs

The compensation amounts to be paid to eligible persons will be assessed by an external auditor appointed by the Ministère, in accordance with the public call for tenders. Eligible persons must submit supporting documents that the auditor will later assess.

To be eligible, exploration or development expenses and any related expenses must be directly associated with at least one of the eligible exploration or development activities defined in section 4.1.1 of the compensation program.

For more details on compensation and eligible expenses, refer to the Programme d’indemnisation des titulaires d’une licence révoquée or contact us.

Any eligible person may submit an application for personal compensation and/or an application for general compensation for the expenses listed in sections 4.1 and 4.2 of the program. Each application must contain the information specified in section 6 of the program. It must also be accompanied by all supporting documents and sent by email to LMF-indemnisation@mern.gouv.qc.ca or by mail to:

Attention: Compensation Program Project Manager
Ministère de l’Économie, de l’Innovation et de l’Energie
Direction de l’expertise des réservoirs géologiques
5700 4th Avenue West, Suite A-422
Québec City, Québec  G1G 6R1

Should you have any questions about the program, please email us at LMF-indemnisation@mern.gouv.qc.ca