Utica Resources has filed a lawsuit in Quebec's Superior Court seeking compensation of $18 billion claiming Bill 21 "constitutes an attack" on the firm's fundamental rights..Quebec-based Utica Resources is a company focused on the sustainable development of a diverse portfolio including light oil, natural gas, and renewable energy projects such as hydrogen and CO2 storage. .Bill 21 — introduced in February by Quebec Premier François Legault and passed by the National Assembly in April — bans oil and gas production in Quebec. Utica Resources, in its Wednesday filing, claimed the bill violates the resource development company's right to "the peaceful enjoyment and free disposition of its property" under Quebec's Charter of Rights and Freedoms. .As well, Utica said the expropriation by the Quebec government under Bill 21 also violates the section of the Civil Code of Quebec that states "no owner may be compelled to transfer his ownership except by expropriation according to law for public utility and in return for a just and prior indemnity." .Utica said it has determined its net present value of future profits, as estimated by a leading expert, at $18 billion, and is seeking Bill 21 be nullified or the firm be compensated at the assessed value. .“We will defend our rights so that this disguised expropriation, the public utility of which does not exist, is compensated at the fair value of our properties”, said Utica President and CEO Mario Lévesque..“A leading independent expert has concluded that Utica’s properties would generate $67 billion in future profits — net value of recoverable resources in place — the equivalent of $18 Billion in net present value using the discount rate of the Court.”.Lévesque said the Quebec government has been open to the exploration and development of the province's oil and gas resources and has invited firms to do so for many years. ."We acted in good faith, found local and foreign investors and respected all of Quebec’s regulatory requirements," said Lévesque. ."Then from one day to the next, the government changed its mind for political reasons and effectively expropriated our properties without proper prior compensation." ."Bill 21 is completely irresponsible and without logic in all regards and goes against the will of a significant majority of Quebecers. It is bad for Quebec, and our European allies who desperately need our gas, and even for the environment.”.Lévesque said if the expropriations are upheld by the Court, it would mean there are no property rights in Quebec and Canada. ."The province and the country would become un-investable and make a mockery of Mr. Legault's claim that 'Quebec is not a banana republic' and Invest in Canada's claim that "Canada is the best country for global investment. Period." .Utica's lawsuit challenging the legislation included in Bill 21 — which has yet to be enacted — is one of several lawsuits being brought against the Quebec government. In May, Calgary-based Questerre Energy, also filed a statement of claim against the legislation. .Michael Binnion, CEO of Questerre Energy, told the Western Standard their claim is seeking damages in an amount to be determined at trial, but suggested it will also be in the tens of billions to represent fair value compensation. .Binnion said his company has more than a thirty-year history in the natural gas industry in Quebec and in 2008 drilled a discovery well with 21 trillion cubic feet of gas resources on the company's 1 million acres of land in the province. ."It is by far the largest gas field in North America," said Binnion. .He said Questerre has entered into several different license agreements with the Government of Quebec over the years and has invested roughly $160 million on its contracts and exploration. ."Quebec receives $13 billion in equalization payments yet they won't let an Alberta company develop the gas they have found," said Binnion. ."And, adding injury to injury, they have expropriated our ability to develop our gas resources without fair compensation." .He also said he finds an issue with Alberta treating Quebec companies with trade fairness and investor protections," yet Quebec does not do the same for Alberta companies. .Binnion said he is aware of several other oil and gas companies that plan to also sue the Quebec government for fair-value compensation.
Utica Resources has filed a lawsuit in Quebec's Superior Court seeking compensation of $18 billion claiming Bill 21 "constitutes an attack" on the firm's fundamental rights..Quebec-based Utica Resources is a company focused on the sustainable development of a diverse portfolio including light oil, natural gas, and renewable energy projects such as hydrogen and CO2 storage. .Bill 21 — introduced in February by Quebec Premier François Legault and passed by the National Assembly in April — bans oil and gas production in Quebec. Utica Resources, in its Wednesday filing, claimed the bill violates the resource development company's right to "the peaceful enjoyment and free disposition of its property" under Quebec's Charter of Rights and Freedoms. .As well, Utica said the expropriation by the Quebec government under Bill 21 also violates the section of the Civil Code of Quebec that states "no owner may be compelled to transfer his ownership except by expropriation according to law for public utility and in return for a just and prior indemnity." .Utica said it has determined its net present value of future profits, as estimated by a leading expert, at $18 billion, and is seeking Bill 21 be nullified or the firm be compensated at the assessed value. .“We will defend our rights so that this disguised expropriation, the public utility of which does not exist, is compensated at the fair value of our properties”, said Utica President and CEO Mario Lévesque..“A leading independent expert has concluded that Utica’s properties would generate $67 billion in future profits — net value of recoverable resources in place — the equivalent of $18 Billion in net present value using the discount rate of the Court.”.Lévesque said the Quebec government has been open to the exploration and development of the province's oil and gas resources and has invited firms to do so for many years. ."We acted in good faith, found local and foreign investors and respected all of Quebec’s regulatory requirements," said Lévesque. ."Then from one day to the next, the government changed its mind for political reasons and effectively expropriated our properties without proper prior compensation." ."Bill 21 is completely irresponsible and without logic in all regards and goes against the will of a significant majority of Quebecers. It is bad for Quebec, and our European allies who desperately need our gas, and even for the environment.”.Lévesque said if the expropriations are upheld by the Court, it would mean there are no property rights in Quebec and Canada. ."The province and the country would become un-investable and make a mockery of Mr. Legault's claim that 'Quebec is not a banana republic' and Invest in Canada's claim that "Canada is the best country for global investment. Period." .Utica's lawsuit challenging the legislation included in Bill 21 — which has yet to be enacted — is one of several lawsuits being brought against the Quebec government. In May, Calgary-based Questerre Energy, also filed a statement of claim against the legislation. .Michael Binnion, CEO of Questerre Energy, told the Western Standard their claim is seeking damages in an amount to be determined at trial, but suggested it will also be in the tens of billions to represent fair value compensation. .Binnion said his company has more than a thirty-year history in the natural gas industry in Quebec and in 2008 drilled a discovery well with 21 trillion cubic feet of gas resources on the company's 1 million acres of land in the province. ."It is by far the largest gas field in North America," said Binnion. .He said Questerre has entered into several different license agreements with the Government of Quebec over the years and has invested roughly $160 million on its contracts and exploration. ."Quebec receives $13 billion in equalization payments yet they won't let an Alberta company develop the gas they have found," said Binnion. ."And, adding injury to injury, they have expropriated our ability to develop our gas resources without fair compensation." .He also said he finds an issue with Alberta treating Quebec companies with trade fairness and investor protections," yet Quebec does not do the same for Alberta companies. .Binnion said he is aware of several other oil and gas companies that plan to also sue the Quebec government for fair-value compensation.
