Year: 2023-2024

In February 2023, Quebec’s oil and gas companies chose to continue their legal actions rather than claim the $100 million compensation offered by the government for ending hydrocarbon exploration and exploitation. These companies prefer to obtain hundreds of millions of dollars through 11 lawsuits, challenging the validity of the law and describing the situation as "disguised expropriation." They cite potential losses of several billion dollars, arguing that the compensation proposed by the government is insufficient and that no further compensation will be granted.

More information:Le Devoir - Energy: Oil and gas companies have not yet claimed their compensation from Quebec
Le Devoir - Oil exploration: Millions claimed in compensation for the end of oil exploration in Quebec

In 2024, the challenge to the 2022 law by oil and gas companies led the Quebec Superior Court to temporarily suspend nearly 40 articles of this law, allowing companies to maintain their drilled wells for the time being. Judge Philippe Cantin ruled that the immediate closure of the wells would cause "serious or irreparable harm" to the companies.

Judge Cantin decided that while the closure of the wells is the goal by 2027, companies can continue to maintain their wells and carry out inspections. Utica Resources, one of the plaintiffs, claimed $18 billion in compensation if the law was not overturned. This Superior Court decision highlights the complexity and significant financial stakes associated with Quebec’s energy transition.

More information:La Presse - End of hydrocarbon activities challenged