Environment committee  Thank you. Good morning. I'm Richard Dunn, the vice-president of government relations for Encana. Encana is a leading North American energy producer, with Canadian unconventional natural gas operations in northeast B.C. and Alberta. At Encana we take our responsibility as a steward of the land very seriously.

Natural Resources committee  That's an excellent question. With the emergence of shale gas in the last few years, the price of natural gas has dropped by approximately 50% to 60%. When we embarked on work in the Horn River Basin, for example, gas would have been valued at somewhere between $7 and $8 per 1,000 cubic feet, mcf, if you will.

Natural Resources committee  That's a very fair comment. I'd take back one point, sir, that I'd initially think about, and that is the need for competitiveness to keep the industry viable. It would not make sense to do a cumulative effects assessment. It would be efficient to do it on a well-by-well basis, but what we do support—be it through a land use planning exercise or some sort of an area cumulative effects assessment—is working with the government to understand the industry plans and looking at what those plans will have on a cumulative impact assessment.

Natural Resources committee  Thank you. I appreciate the question. With regard to the details on the tax, in the United States the developers are given an immediate writeoff of their expenses against their taxes--

Natural Resources committee  That's correct. It's effectively a capital cost allowance. They're enabled with a 100% writeoff in the first year against taxable income. In Canada, historically, for development expenses, it's been a 30% declining balance, so it can take somewhere between five to seven years to get that same level of writeoff against the taxes.

Natural Resources committee  No, the wells at this point are looked at on an individual well or pad basis together. Where the cumulative effects assessments are done, for example, up in the Horn River, is in the land use planning exercises. So rather than an individual permit, you'd look at bearing the accountability for a cumulative impact assessment through land use planning.

Natural Resources committee  Yes.

Natural Resources committee  Yes, we're doing it now.

Natural Resources committee  Yes, absolutely, I agree with your comments on increasing public confidence and full disclosure. As well, I note that the recently developed regulations in British Columbia—the Oil and Gas Activities Act just implemented within the last few months—in fact require this disclosure.

Natural Resources committee  I believe it was our partners, Apache. They made that claim a while back, yes.

Natural Resources committee  Yes, it's a fifty-fifty joint venture to develop properties up in the Horn River Basin, north of Fort Nelson.

Natural Resources committee  Thank you, Mr. Chair. Let me say right from the get-go, I appreciate the opportunity to present by video conference. It is probably a lot nicer in Ottawa: I think it was minus 28 degrees this morning in Calgary. As mentioned, I'm Richard Dunn, vice-president of government and regulatory relations for Encana Corporation.