New Brunswick proposes to fine companies up to $1M if they break energy rules

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FREDERICTON - New Brunswick is proposing to fine energy companies up to $1 million if they violate new rules governing the province's oil and natural gas industry.

That is one of 116 recommendations contained in a discussion paper released today by the provincial government.

The recommendations address a number of issues including well design, royalties and protection of water supplies.

The paper comes as a number of companies are exploring for shale gas in the province despite a public backlash to fracking.

That process involves the use of high volumes of water and chemicals pumped into a well to fracture layers of rock to release pockets of shale gas.

The recommendations call for a greater share of royalties for the province and landowners where natural gas and oil wells would be located.

The recommendations will be put out for 60 days of public input before coming back to the legislature this fall.

Geographic location: New Brunswick, FREDERICTON

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