2023-2024

In February 2023, Quebec's oil and gas companies chose to pursue their legal actions rather than claim the 100 million dollars in compensation offered by the government for the end of hydrocarbon exploration and exploitation. These companies prefer to obtain hundreds of millions of dollars through 11 lawsuits, contesting the validity of the law and characterizing the situation as "disguised expropriation." They cite potential losses of several billion dollars, claiming that the compensations provided by the government are insufficient and that no other compensation will be granted.

Link for more information: Le Devoir - Energy: Oil and gas companies still have not claimed their compensation from Quebec Le Devoir - Oil exploration: millions claimed in compensation

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 wells would cause "serious or irreparable harm" to the companies.

Judge Cantin decided that, although well closure is the objective by 2027, companies can continue to maintain their wells and conduct inspections. Ressources Utica, one of the plaintiffs, claimed compensation of 18 billion dollars if the law was not overturned. This Superior Court decision demonstrates the complexity and considerable financial stakes involved in Quebec's energy transition.

Link for more information: La Presse - End of hydrocarbon activities contested