Dr. James Tansey reports

OFFSETTERS CLIMATE SOLUTIONS INC.: BRITISH COLUMBIA GOVERNMENT ESTABLISHES NEW REGULATED CARBON OFFSET MARKET

Offsetters Climate Solutions Inc. is commenting on the British Columbia provincial government's tabling of its Greenhouse Gas Industrial Reporting and Control Act.

This act establishes a greenhouse gas benchmark for LNG (liquefied natural gas) companies wishing to operate LNG processing facilities within the province. By setting an emissions benchmark of 0.16 tonne of carbon dioxide equivalent per tonne of LNG produced, the province hopes to establish the cleanest LNG facilities in the world. Carbon offsets will play an important role in achieving this goal, creating a significant new market opportunity for Offsetters.

In order to help LNG companies meet these emissions requirements, the act will allow LNG facilities to use three flexibility mechanisms to achieve reductions -- carbon offsets, payments into a technology fund or credits from facilities that operate below the 0.16-tonne benchmark. The act does not elaborate on detailed attributes of each of these mechanisms, but it does indicate that LNG facilities will be allowed to buy carbon offsets from projects within British Columbia or pay a fee of $25 per tonne of carbon emissions in excess of the benchmark into a technology fund, or buy credits from other facilities which have been operating below the 0.16-tonne threshold (and thus have received credit for bettering the benchmark level). Specific regulations further defining each of these flexibility mechanisms are in the process of being drafted, and should be made available to LNG proponents and the general public for consultation over the coming months.

At this time, the act does not regulate greenhouse gas emissions beyond those at the processing facility. Emissions from upstream sources, which include everything from the wellhead through the pipelines, compressors and pneumatic controllers, are yet to be addressed. As a significant source of potential future emissions, the government has acknowledged that the Ministry of Natural Gas Development is creating additional policies and programs to address these emissions.

For an overview of the act, please visit the B.C. government's website.

"We are pleased to see the provincial government table policy that begins to address part of the environmental impact that will occur with LNG development. This act establishes a legitimate market for carbon offsets within the province and will drive significant investment into greenhouse gas reduction projects across a number of sectors," commented Dr. James Tansey, chief executive officer of Offsetters. "As the leading carbon project developer in B.C., we are well positioned to supply this market with high-quality carbon offsets, and specialized technical services related to their development and verification. We look forward to working with the province, first nations, industry and the private sector to ensure this market operates with the highest environmental integrity."

We seek Safe Harbor.