B.C.: SHELL WITHDRAWING PLANS TO EXPLORE FOR GAS IN KLAPPAN

     (The following press release from the Province of British Columbia, 
Canada, was received by e-mail and was reformatted. The sender verified the 
statement.) 
NEWS RELEASE
For Immediate Release
2012EMNG0073-002054 
Dec. 18, 2012  
Ministry of Energy, Mines and Natural Gas
Shell Canada
Tahltan Central Council  
Agreement brings resolution to gas tenure in Northwest  
VICTORIA - Today, the government of British Columbia joined the Tahltan 
Central Council (TCC) and Shell Canada (Shell) to announce an agreement 
has been reached to resolve the status of natural-gas tenure in the 
Klappan area of northwest B.C.  
As part of a tripartite agreement, Shell Canada is immediately 
withdrawing plans to explore for natural gas in the Klappan by 
relinquishing its tenures. In addition, the Province of British Columbia 
will not issue future petroleum and natural-gas tenure in the area.  
A separate agreement between government and industry will also lead to a 
new water recycling project - to be built by Shell - through the issuance 
of $20 million in royalty credits support by the Province of B.C. The 
terms of this arrangement were agreed upon between government and Shell 
in recognition of the lost, upfront capital spent by the company, in 
addition to rent payments already paid to the Crown on the Klappan 
tenures.  
The Klappan is an area that has been identified by the Tahltan Nation as 
having significant cultural, spiritual, and social values. It is also an 
area of vital salmon-bearing waterways such as the Stikine, Nass, and 
Skeena rivers, and as such has importance for all British Columbians who 
rely on those rivers.  
The tripartite agreement represents a step forward in discussions between 
the Province of British Columbia and the TCC, with support from the 
Tahltan and Iskut Band councils, about the long-term future of the 
Klappan area.  
Quotes: 
Rich Coleman, Minister of Energy, Mines and Natural Gas -
"The government of British Columbia would like to thank the Tahltan 
Central Council and Shell for their commitment to positive communications 
during the last few years. Together, we have put agreements in place that 
respect the interest of all three major parties and have tangible 
benefits for British Columbians."  
Ida Chong, Minister of Aboriginal Relations and Reconciliation -
"Resolution of concerns around the Klappan area is a significant step in 
this government's relationship both with the Tahltan and with industry. 
We look forward to continued progress in working with Tahltan through our 
government-to-government relationship as we work together on land and 
resource matters across the Tahltan territory, as well as more 
particularly within the Klappan area."  
Annita McPhee, president of the Tahltan Central Council -
"We want to acknowledge Shell for its decision to respect the wishes of 
the Tahltan Nation by giving up its plans to develop coal-bed methane in 
the Klappan. The Klappan is one of the most sacred and important areas 
for our people. It is a place of tremendous cultural, spiritual, historic 
and social importance. Our people do not want to see it developed, and we 
look forward to working with B.C. on achieving permanent protection of 
the Klappan."  
Lorraine Mitchelmore, president and country chair, Shell Canada Limited -
"Close relations with Aboriginal communities are important to our many 
business opportunities in British Columbia, and we are pleased to have 
found common ground on our petroleum and natural-gas tenure in the 
Klappan. We now focus on growth opportunities with better commercial and 
geological prospects in Northeast British Columbia. Good water management 
is central to sustainable operations, and we thank the government of 
British Columbia for their contribution to this aspect of our exploration 
and production activities."  
Quick Facts: 
* Royalty credits can be applied to an industry's payment to government 
once the infrastructure they are approved for is operating. They are not 
an expenditure of provincial funds; they are deductions that are made to 
future royalties owed to government.  
Learn More: 
* More information about the Ministry of Energy, Mines and Natural Gas 
can be found at: www.gov.bc.ca/ener/
* More information about the Tahltan Central Council can be found at: 
www.tahltan.org/
* More information about Shell Canada can be found at: www.shell.ca 
Contact: 
Sandra Steilo
Media Relations
Ministry of Energy, Mines and Natural Gas
250 952-0617  
Robert McPhee
Adviser
Tahltan Tribal Council
250 686-1883  
Shell Media Relations
Shell Canada Limited
1-877-850-5023
media-desk@shell.com 
(kgt)NY 
 
 
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