Ch. 3 Land - Environment Yukon

government has formed a partnership
with First Nations and together the parties
are pursuing the development of a
common oil and gas regime. Under
this common framework of legislation,
regulations and policies there will be
one set of rules for exploration and
development. The core component of
the common regime–the Yukon Oil and
Gas Act–was enacted in 1998. A number
of the key regulations have been
developed and others are being developed.
The existing regulations apply to
the exploration stage and are regarded
as very strict. They contain provisions
that are not covered in other jurisdictions.
For example, financial deposits
are required to guarantee that abandonment
and clean-up of wells will be
conducted properly.
As conventional supplies of oil and gas
dwindle in Western Canada and
companies seek alternative sources,
exploration in the north becomes more
favourable. Yukon is situated at the
Figure 3.7 Oil and Gas Potential in the Yukon
Yukon contains eight sedimentary basins with potential to host oil and gas deposits. Each
basin has its own unique geological history and character. Seventy-one wells have
been drilled in the Yukon and most of these are located in the Liard Plateau, Peel Plateau,
and Eagle Plain basins. The remaining five basins–Bonnet Plume, Kandik, Old Crow,
Whitehorse Trough, and Coastal Plain–are virtually unexplored. There is also considerable
oil and gas potential in the Beaufort Sea off the Yukon’s north coast.
periphery of oil and gas producing
regions with Alberta and British
Columbia to the south, the Northwest
Territories to the east, and Alaska to
the west. Activity and infrastructure in
Alberta and British Columbia extend
into the southeast Yukon and
opportunities exist for it to move
northward.
Current exploration interest is largely
focused on the Liard Plateau in the
southeast corner of the Yukon where
one producing field is located. The best
prospects are expected to be large
deep gas pools similar to the producing
field at Kotaneelee. There is also interest
in Eagle Plains in north central Yukon
and a company is currently planning to
produce crude oil from proven oil and
gas reserves here for sale in the local
Yukon market.
In the past, seismic cutlines were six to
eight metres wide which caused forest
fragmentation and created access into
otherwise remote areas. Through the
assessment process, industry and the
regulators are seeking to reduce access
into the exploration areas. Technology
has also evolved to significantly reduce
access to and within exploration areas.
Now cutlines are a maximum width of
1.5 meters, and trees are limbed and
not entirely cut down. A team walks
along the line and cuts an opening
where a helicopter lowers the drill to
conduct the seismic work. The drill is
removed and lowered to another
specified location further down the
line. This method of exploring for oil
and gas is far more environmentally
friendly than previous methods.
The oil and gas industry is still in the
exploration stages in the Yukon. With
more producing wells coming on
stream, there is the potential for
emissions of carbon dioxide and
sulphur dioxide to increase, contributing
to global warming and acid rain.
Industry and governments are currently
addressing this problem 1.
4 2 ❧ Y U K O N S T A T E O F T H E E N V I R O N M E N T R E P O R T 1999