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| Original News Release |
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| Original News Release |
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Sierra Yoyo Desan Resource Road
Ledcor Projects Inc. of Vancouver, a B.C.-based firm, has been selected to enter final negotiations for a partnership to design, build and finance upgrades to the Sierra Yoyo Desan Resource Road and operate and maintain the road for 15 years. Ledcor Projects Inc. has assembled a capable team with extensive experience throughout northern British Columbia. The Ledcor team is comprised of Ledcor Highways Maintenance Ltd. of Fort Nelson, McElhanney Consulting Services Ltd. of Fort St. John, Vancouver-based Trow Associates, Vancouver-based Triton Environmental Consultants Ltd., Buckland & Taylor Ltd. from Vancouver, Peter Kiewit Sons Co. from Vancouver and Doug Gordon Contracting from Fort Nelson.
The 188-kilometre multi-user resource road (15 km managed by Ministry of Transportation) serves as the main artery to the oil and gas fields in northeastern British Columbia, supporting the local community of Fort Nelson and the Northern Rockies Regional District. The B.C. Ministry of Energy and Mines (MEM) is mandated with ensuring the link remains, and in doing so embarked on an initiative to provide a long-term strategy for the upgrade, operation, management and financing of this road. Physically, the objective is to have a continuous all-weather road that is capable of handling the increasing volume and type of traffic using the road. This will require significant improvements and upgrades to the road. The upgrade will be facilitated through an innovative partnership between government and industry. The upgrade and ongoing maintenance will be financed through fees paid for industrial activity in the area accessed by the road. Government, as a direct participant in this partnership, will contribute financing in the form of royalty rebates in an amount equal to 50 per cent of the annual fees paid by operators on the road for certain oil and gas activities. The SYD road upgrade has four principal components:
The program will be delivered as a partnership with the upfront costs of final design, financing, construction and maintenance provided for by the partner. The fees collected from industrial activity will be administered jointly by MEM and industrial road users so as to provide a source of funding to ensure the private partner is reimbursed for constructing improvements and upgrades and maintaining the road over the 15-year term of the agreement.
Three Resource Road Projects Move Ahead
Oil & Gas Development Strategy – Heartland Roads Strategy
Under the Province’s Oil and Gas Development Strategy (OGDS), initially announced in May 2003 and recently expanded, the Ministry of Energy and Mines provides royalty credits for eligible projects proposed by industry. Industry is required to provide matching funding.
Project: North Petitot Companies: Canadian Natural Resources Ltd. and Penn West Petroleum Ltd. Description: An all-weather 12.6-km extension of PDR 269 going north from Penn West’s Wildboy plant site. Includes two bridges across streams and an 85-metre bridge across the North Petitot. Total Royalty Credit Approved - $2.5 million Cost: $4 M to $5 M
Project: Cabin – Geetla Company: EnCana Corporation Description: Phase I – build 19 km of high grade (8-metre width) road. Represents an extension to the “EnCana Komie” Road beyond km 70 (to km 89). Phase II – build 30 km of high-grade (eight-metre width) road onto Phase I work. Will run from km 89 to km 119 to the edge of the Petitot River. (Note: the Cabin-Geetla road extension will start from km 70 of the EnCana Komie Road. The EnCana Komie Road itself flows from the Yoyo T of the SYD Road.) Royalty Credit Approved - $4.5 million Total Cost:$9.034 M
Project: Elleh Road Company: EnCana Corporation Description: Approved funding covers all of Phase I identified by EnCana. Phase I consists of two aspects: Upgrade of 8 km of road (PDR 158). Construction of 17.5 of high-grade (eight-metre width) road from km 8 to 25. 5. Currently, this segment is only a winter access corridor. (Note: the Elleh Road project Phase I involves an 8 km upgrade of PDR 158 and then a further 17.5 all-weather extension of this 8-km road. PDR 158 branches off the SYD Road at km 61.) Royalty Credit Approved - $2.5 million Total Cost: $4.946 M
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