Nova Scotia's new premier is making a name for himself:
herald.ns.ca
No deals on Sable, premier says
By DALE MADILL and AMY SMITH / Provincial Reporters
Premier Russell MacLellan won't recognize any Sable Island gas deal he didn't
sign.
Mr. MacLellan stunned opposition leaders Wednesday by announcing in the
House that there are no deals between the province and companies poised to
develop six natural gas fields off Sable Island.
"It's a startling revelation. ... I'm incredulous," said Opposition Leader John
Hamm.
"It was cut and dried," the Tory leader said of a royalty agreement former natural
resources Minister Eleanor Norrie made public last January. John Savage was
premier and Liberal leader at the time.
"The government said there was a deal, Mobil said there was a deal, and now we
have Premier No. 2 saying there are no deals."
Mr. MacLellan didn't startle anyone at the Metropolitan Halifax Chamber of
Commerce earlier in the day when he delivered a state-of-the-province speech.
He told more than 500 business people Nova Scotia has a bright economic future
with or without Sable gas.
Two hours later, he was back in the House where he was on the spot for gas
deals - or lack of them.
Mr. Hamm said nothing would make him happier than to start negotiating anew
because the province got the short end of the stick in negotiations with Mobil Oil,
which leads the offshore development consortium.
"Well, I don't know. They are being discussed," the premier said when asked if
the province has a signed contract with Mobil establishing a royalty structure.
"We're talking about various aspects of the offshore with the oil companies.
That's all I can say."
Mr. MacLellan also wouldn't initially acknowledge there is a deal between Nova
Scotia and New Brunswick on the cost of shipping gas.
The pact, signed by then-premier John Savage during the Liberal leadership race
in July, was one of Mr. MacLellan's best weapons against rival candidate Bernie
Boudreau.
When reminded of that Wednesday, he made a half-hearted admission there was
a deal.
"I think they signed something in Fredericton, yes." Mr. MacLellan said.
There was one deal that Mr. MacLellan vividly recalled - the one in which the
province gave away a "back-in provision" that would have given Nova Scotians
a 20 per cent share of the pipeline - and a significant bargaining tool in talks with
Mobil.
"That's done. We can't revisit that," he said.
New Democrat Leader Robert Chisholm said Mobil is obviously playing hardball
with the premier and conceding nothing despite the change in government.
"Regardless of his bravado during the leadership race and subsequently, he
clearly, I think, has blinked," Mr. Chisholm said.
He said a recent deal to give Michelin $27 million is proof Mr. MacLellan will
yield to strong-arm tactics.
"Mobil and the partners have brought Nova Scotia to their knees ... just like
Michelin. 'If you don't do what we want you to do, we are going to yank this
(project) out.'"
Mr. MacLellan's no-deal stance wasn't the only shocker during Wednesday's
question period. He also took the for-sale sign off Nova Scotia Resources Ltd.
The premier agreed the provincial Crown corporation - which has incurred debts
estimated at $430 million - is a dog but said the province will keep it.
"Well, because it's our dog," Mr. MacLellan said, suggesting the company's
eight per cent share in the Sable gas project might become important at some
point.
"It allows us to be a player" he said.
The company has been for sale for the last two years.
Mr. MacLellan said he isn't being coy about his dealings with Mobil but he sees
no point in concentrating on the past.
He said he is focusing on reaching a new omnibus agreement on Sable natural
gas that will deliver greater wealth and increase other benefits to the province. |
