Offshore staff
(Canada) - The Supreme Court of Newfoundland has begun hearings into Calgary-based Polaris Resources Ltd.'s intention to retain exploration licenses for three areas near the Laurentian basin, offshore southern NL.
The Laurentian basin is located in the southern part of the Grand Banks basin.
Polaris obtained the licenses in 2000, committing to spend $5.6 million in drilling and exploration activities over the next five years.
These activities were not carried out, and Polaris applied to the Canada-Newfoundland and Labrador Offshore Petroleum Board for an extension. The request was denied.
However, Polaris contends that the NL provincial government is responsible for the delay in exploration activities.
The company is arguing that the lack of a provincial royalty regime for natural gas projects is impeding its drilling.
The NL government is working on an energy plan that may include installing a royalty regime for natural gas offshore developments.
There are no natural gas projects in the NL offshore.
Hibernia, Terra Nova, and White Rose all produce crude oil.
03/04/06
