Consultations will begin in the coming weeks to come up with a royalty framework for natural gas production.

The province yesterday released the results of a natural gas resource assessment which determined potential for 8.1 to 11.3 trillion cubic feet—with a best estimate of 9.7 trillion cubic feet.

The development of the province’s offshore natural gas potential is one that’s been a very long time coming.

Energy Minister Steve Crocker says the second phase of a natural gas resource assessment will evaluate additional prospects that were previously identified.

In the meantime, the province is exploring what a royalty regime might look like.

“We’re going to go out now and start a consultation in the next few weeks with the companies, with the stakeholders involved, to see what it is a framework, a template or a formal royalty regime. Bearing in mind,” says Crocker, that it will be done in “the best interests of Newfoundlanders and Labradorians”

He says the process will be subject to the proper due diligence and transparency as Newfoundland and Labrador positions itself as Canada develops into what Prime Minister Mark Carney calls an energy superpower.

“We wouldn’t want to delay any projects,” says Crocker.