Settlement in ExxonMobil dispute #nlpoli

CNLOPB regulates the Newfoundland and Labrador offshore

The Government of Canada and ExxonMobil have reached a settlement in the oil company's 16-year-old dispute over the Canada-Newfoundland and Labrador Offshore Petroleum Board's requirement for spending on research and development.

In the settlement, reached in January,  the Government of Canada will pay ExxonMobil CDN$35 million to end an arbitration under the North American Free Trade Agreement. 

ExxonMobil challenged a CNLOPB requirement that offshore operators of producing fields spending an amount of the earnings on research and development in the province.  ExxonMobil challenged the requirement in 2004 and in 2011 won an arbitration that found the requirement violated ExxonMobil's rights under NAFTA.  The award in the first claim was $17.3 million.

The second claim was for damages incurred between 2012 and 2015 not included in the first award. Before an amended version of the claim proceeded, the parties reached a settlement.

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Hebron Development Approved #nlpoli #cdnpoli

From the Canada-Newfoundland and Labrador Offshore Petroleum Board:

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) announced today that the Hebron Development Application is approved.

At its April 27, 2012 meeting, the Board approved the Hebron Benefits Plan and Development Plan subject to the conditions outlined in Decision Report 2012.01. In its deliberation with respect to these plans the Board considered advice provided in the Benefits Plan and Development Plan staff analysis as well as recommendations resulting from the Report of the Hebron Public Review Commissioner.

Under the Atlantic Accord Implementation Acts, Fundamental Decisions of the Board must be ratified by both governments before they can be implemented. The Board’s Approval of the Hebron Development Plan was a Fundamental Decision. The approval of the Development Plan by both governments now enables ExxonMobil Canada Properties Limited to proceed with development of the Hebron Field, which is estimated to contain 707 million barrels of oil.

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Here we go again #nlpoli

Few people who pay attention to public life in this province will forget the abuse the provincial government  - particularly former Premier Danny Williams  - heaped upon Max Ruelokke for having the temerity to be a better candidate to head the offshore regulatory board than the guy the premier wanted to stuff in the job.

Ruelokke had to sue the provincial government to force them to do what the law directed.

So detestable was the provincial government’s – i.e. Danny’s  - behaviour that the judge who heard the case stated in his decision:

Having considered the above, I find that the conduct of the Respondent (in relation to the Applicant) has been callous and “reprehensible” and is deserving of “reproof and rebuke”.  Accordingly, I will exercise my discretion and award the Applicant his solicitor and own client costs.

We may be headed for the same mess again.

Offshore Board Lays Charges Against Suncor #nlpoli

From CNLOPB (with some style edits):

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has laid three charges against Suncor Energy Inc., Operator of the exploration drilling program at the Ballicatters M96-Z well located in the Jeanne d’Arc Basin on Exploration Licences 1092 and 1113, for alleged offences related to a spill of synthetic based mud (SBM) from the mobile offshore drilling unit (MODU) Henry Goodrich operating in the Newfoundland and Labrador Offshore Area. SBM is a heavy, dense fluid used during drilling operations to lubricate the drill pipe and balance reservoir pressure.

The charges result from an investigation by C-NLOPB Conservation Officers following a report of a spill of 26,400 litres of SBM into the ocean on Monday, March 28, 2011 from the drilling rig.  The Operator is charged with causing or permitting a spill into the Offshore Area, failure to ensure that drilling fluids were stored and handled in a manner that would have prevented pollution, and failure to ensure that drilling fluids were handled in a way that did not create a hazard to safety or the environment.

The C-NLOPB is the independent joint agency of the Governments of Canada and Newfoundland and Labrador responsible for the regulatory oversight of petroleum activities in the Newfoundland and Labrador Offshore Area, including; health and safety for offshore workers, protection of the environment during offshore petroleum activities, management and conservation of offshore petroleum resources, compliance with the provisions of the Accord Acts that deal with Canada-Newfoundland and Labrador employment and industrial benefits, issuance of licences for offshore exploration and development, and resource evaluation, data collection, curation and distribution.

Sean Kelly M.A., APR, FCPRS
Manager of Public Relations
C-NLOPB
Tel:             709-778-1418     
Cell:             709-689-0713  

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Old Harry review delayed at proponent request #nlpoli #cdnpoli

From the Canada-Newfoundland and Labrador Offshore Petroleum Board [paragraphing changed for online readability]:

The C-NLOPB has received a request from Corridor Resources Inc. to issue a prohibition order under the Atlantic Accord legislation, which would prohibit Corridor Resources Inc., the interest owner in Exploration License 1105 (known as Old Harry) from commencing or continuing any work or activity on those portions of the offshore area subject to EL 1105 until the Board notifies the interest owner that the update of the Strategic Environmental Assessment (SEA) of the Western Newfoundland Offshore Area has been completed.

Under the Atlantic Accord Act, a prohibition order can be made by the Board in the case of an environmental or social problem of a serious nature.  A decision to make a prohibition order is a Fundamental Decision under the legislation and must therefore be ratified by both governments.  If a prohibition order is made, the environmental assessment would be placed on hold and the term of the license would be suspended.

As a result of Corridor’s request for a prohibition order, the C-NLOPB is delaying the independent review of Corridor Resources' environmental assessment of the proposed exploration drilling program for License Area 1105 until such time as the C-NLOPB has fully considered the proponent’s request.

On December 22, 2011, the C-NLOPB filed the complete environmental assessment documents for Corridor Resources’ proposed drilling program in License Area 1105 with the Independent Reviewer, Mr. Bernard Richard.  The Independent Reviewer was preparing to launch the public review process in mid-January.

The SEA for the Western Newfoundland Offshore Area was completed in 2005 and amended in 2007.  The deadline for public comments on the draft scoping document for the SEA update was January 18, 2012.

“We need to fully consider the proponent’s request for a prohibition order before proceeding with public consultations on the environmental assessment,” said Max Ruelokke, Chair and CEO of the C-NLOPB.  “We have therefore informed the Independent Reviewer, Mr. Bernard Richard, of the need to delay his plans to launch public consultations until this matter has been addressed by the Board.”

The environmental assessment documents for the project will remain on the C-NLOPB’s website for public access and review.

Media Contact:

Sean Kelly M.A., APR, FCPRS
Manager of Public Relations
(709) 778-1418
(709) 689-0713
skelly@cnlopb.nl.ca

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Connies pork-up offshore board #nlpoli #cdnpoli

The federal Conservatives took a leaf from the provincial Conservatives’ book on Thursday and added a political pork appointee to the board that regulates the oil and gas industry in Newfoundland and Labrador.

Long-time Tory Reg Bowers was intergovernmental affairs minister Peter Penashue’s campaign manager in the last federal election. He’ll serve for a six-year term, subject to re-appointment.

The official announcement of his appointment is pretty vague on the details of Bowers’ background that make him an appropriate appointment.  All the release says is that Bowers has “30 years of experience in developing regional business prospects in Newfoundland and Labrador. He has worked on numerous projects creating opportunities for communities in his home province.”

Before he left politics abruptly in late 2010, Danny Williams set the wheels in motion to appoint his communications director to a provincial seat on the joint federal-provincial board.  Williams’ successor Kathy Dunderdale carried on with the appointment. Dunderdale and her natural resources minister word of Matthews’ new job secret until word of it leaked early in 2011. 

The botched appointment died in a ball of flames amid public condemnation of the blatant patronage it represented. 

The furor included a now famous attack on Dunderdale by Williams:

In my opinion, Elizabeth Matthews – of all the women I have met in politics including my ministers – was the most competent woman I had come across.

Bowers joins another federal appointee with no relevant background in the offshore oil and gas business:  Conrad Sullivan, brother of former Conservative fisheries ambassador Loyola Sullivan,

The two provincial appointees on the board - retired labour union boss Reg Anstey and Ed Drover – also lacked any relevant experience in dealing with offshore oil and gas issues prior to their appointment to the board.

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Offshore board slags CBC #nlpoli

The Canada-Newfoundland and Labrador Offshore Petroleum Board is taking CBC Newfoundland and Labrador to task for its coverage of an incident last week in which a supply ship struck a semi-submersible platform offshore Newfoundland and Labrador.

The online version of one CBC story about the incident is available on the cbc.ca/nl website.  You can find the story with the comment mentioned in the letter in the video of the Here and Now Friday night broadcast.

The CBC line set up an attack on the board by labour/NDP spokesperson Lana Payne in the comment that immediately followed the reference the board took exception to in the fourth paragraph.

The letter is available on the offshore board website.

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The Mother Corp Returns Fire Update:  here.

Offshore board announces exploration bid results on three parcels

From the Canada-Newfoundland and Labrador Offshore Petroleum Board:

Call for Bids NL11-01 (Western Newfoundland and Labrador Offshore Region)

The following bids, based upon the work commitments bid, have been accepted:

Parcel 1 (218, 468 ha)
Ptarmigan Energy Inc.  100%
$1,501,000.00

Parcel 2 (135, 520 ha)
Ptarmigan Energy Inc.   100%
$501,000.00

Total: $2,002,000.00

Call for Bids NL11-02 (Flemish Pass/North Central Ridge)

The following bids, based upon the work commitments bid, have been accepted:

Parcel 1 (247, 016 ha)

Statoil Canada Ltd.                 50%
Chevron Canada Limited       40%
Repsol E & P Canada Ltd.     10%

$202,171,394.00

Parcel 2 (186, 780 ha)

Statoil Canada Ltd.                50%
Chevron Canada Limited       40%
Repsol E & P Canada Ltd.     10%

$145,603,270.00

Total: $347,774,664.00

Subject to the bidders satisfying the requirements specified in Call for Bids NL11-01 and NL11-02  and upon receiving Ministerial approval, the Board will issue exploration licences for all four parcels in January 2012.

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The first big political story of the campaign… #nlpoli

 

And it’s got legs.

• The story appeared first right here on Monday morning.
• CBC Monday night with a blockbuster interview with Williams. (Would he have done an interview with your humble e-scribbler?)
• CBC Radio Tuesday morning.
• VOCM on Tuesday, including the talk shows
• Dunderdale’s reaction Tuesday night on CBC and on VO
• NTV Tuesday night.
• The Telegram Wednesday morning, front page
• CBC Radio Wednesday morning on the political panel
• Can it go longer?
• Stay tuned.

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To you with affection from Danny #nlpoli #cdnpoli

Anybody who is even vaguely aware of Danny Williams’ attitude to the CBC during his term as Premier will realise what an amazing thing it was for him to sit for 10 minutes on Monday and discuss his nomination of Elizabeth Matthews to sit on the offshore regulatory board.

CBC’s Chris O’Neill-Yates picked up the story  - the same one posted here Monday morning - and added significantly to what might turn out to be a new political mess for the Dunderdale administration.

The new mess though isn’t about a patronage plum Williams lined up for Matthews.

No.

Now the mess is found in the gigantic contradictions between what actually happened and what the major characters in the drama have said until now.

For example, there’s the issue of what Elizabeth Matthews knew about her nomination and appointment and when she knew it.  Williams is unequivocal in the full interview on Monday:  she would have known about the nomination when he put her name forward. 

That contradicts the impression left with a great many people.  On March 11, for example, CBC’s Provincial Affairs reported tweeted about a conversation he’d has with Matthews.  Cochrane wrote “EM says she has never been told of any appointment.”

After the Liberal opposition released a copy of the order in council Matthews had received making her appointment to the board, Matthews told CBC:

When I received the OC in the mail I contacted the premier's office immediately. I was told ... at the time that the OC was sent in error, and in fact the individual I spoke to was unaware of it,…

The cabinet order itself is unequivocal.  Under the first part, cabinet appointed Matthews to the board as a Newfoundland and Labrador representative starting on January 1. 

If Matthews was as knowledgeable about these things as Williams claims and if officials of the provincial government knew anything, they’d understand that part of the cabinet order did not need any approval from the federal government.

There’d be no reason for her to misunderstand that she had an appointment to the board when she got the OC in the mail.  And even if she and her provincial benefactors wanted to wait until she had the federal agreement on making her the vice-chair as well, that still wouldn’t explain why Matthews claimed she didn’t know about an appointment.

Heck, as your humble e-scribbler reported on Monday, Matthews sent her resume to the Premier’s Office on December 21, apparently in support of the letter to the federal government about her appointment. She knew what was going on.  And as Williams made plain on Monday, Matthews knew he was putting her name up for the job.

Then there’s the odd claims by Williams hand-picked successor  Kathy Dunderdale and natural resources minister Shawn Skinner that they were responsible for Matthews’ nomination and appointment. CBC’s online story includes the quotes they gave in the spring.  They wouldn’t do any interviews with CBC on Monday.

Williams made clear that he discussed Matthews’ appointment to the offshore board with Dunderdale as part of the hand-over process. While he didn’t actually make the appointment himself, Williams left the clear impression he told his successor exactly what he wanted to see happen.

Technically, it was up to his successor to get the job done. But  there’s no doubt he wanted Matthews in that job and – given the way events unfolded in December over his succession – Williams had plenty of opportunities to push his views right up until the cabinet issued its order on December 21.

And Skinner and Dunderdale delivered for Williams.

Things just came apart in March after someone leaked the story to CBC’s David Cochrane.  That’s when Matthews, Dunderdale and Skinner started telling versions of events that didn’t jive with what happened.

Apparently, they never imagined the whole story would come out.

Surprise!

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Offshore board responds to helicopter inquiry report

From the Canada-Newfoundland and Labrador Offshore Petroleum Board [paragraphing altered for readability; original here]:

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) today responded to the final report of the Offshore Helicopter Safety Inquiry  entitled "Report and Recommendations arising from the Transportation Safety Board's Report".

The submission of this report signals the completion of the inquiry. The C-NLOPB wishes to extend its gratitude to Commissioner Robert Wells, Inquiry counsel and staff, parties with standing, families of the victims [of the Cougar 491 crash]  and to all others, most notably, Robert Decker, who contributed to the Inquiry and, in doing so, to improvements in offshore helicopter safety.

The report contains four recommendations.

Recommendation 1 is directed at the C-NLOPB and the remaining three are directed at Transport Canada
or Governments. The Board's response to each  recommendation is as follows:

Recommendation 1 - Alert Service Bulletins

We have accepted this Recommendation and have directed the Operators to develop a plan for compliance in conjunction with work they are already doing in response to Phase I Recommendation 7, dealing with Airworthiness Directives. We will ask the Phase I Implementation Team to provide oversight of the Operators' work.

Recommendation 2 - Helicopter Passenger Suit

We have referred this Recommendation to Transport Canada and the Canadian General Standards Board for consideration as part of their ongoing work to create a  new Helicopter Passenger Transportation Suit standard. There is a broadly-based committee engaged in this work,  including C-NLOPB, CNSOPB, Operators and suit manufacturers.

Recommendation 3 - TSB Recommendations

We have passed this Recommendation along to Transport Canada.

The C-NLOPB has already been engaged in a Focus Group to assist Transport Canada in their plans to respond to Recommendations in the Phase I and Phase II report. 

We have requested that the Operators determine what plans Cougar and Sikorsky have for retro-fitting the Cougar fleet.

Also, we have asked our Aviation Advisor to review with Transport Canada any plans for removal of the "extremely remote" provision. He will also discuss with them any plans to review the adequacy of the 30-minute run-dry requirement.

Recommendation 4 - Separate Regulator

We have forwarded this Recommendation to both Governments for their consideration. Recommendation 29 (b) in the Phase I report recommended that consideration be given to the creation of a separate and autonomous safety division within the C-NLOPB.

The C-NLOPB has acted on this recommendation by separating the safety and operations functions into two separate departments. The Operations Department will be headed by Mr. Howard Pike and the Safety Department will be headed by Mr. Dan Chicoyne.

Mr. Chicoyne was recently hired by the Board and he will take on the responsibility of Chief Safety Officer. He has extensive experience in safety and was the Chief Accident Investigator for the Canadian Forces, as well as the Director of Flight Safety for the Canadian Forces.

Mr. Chicoyne is also a former fixed wing and helicopter pilot in the Canadian Armed Forces and held the rank of Colonel.

While the C-NLOPB asked Commissioner Wells to review the TSB report, it also conducted its own review.

The Board's review did not identify any deficiencies or gaps in the current implementation plan. 

The Board is now satisfied that the implementation strategy developed in response to Phase I, with the change recommended by Commissioner Wells, fully encompasses all elements of the TSB report that needed to be addressed by the C-NLOPB.

Media Contact:
Sean Kelly M.A., APR, FCPRS
Manager of Public Relations
(709) 778-1418
(709) 689-0713 cell
skelly@cnlopb.nl.ca

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Feds want Gulf of St. Lawrence enviro review

Federal environment minister Peter Kent wants an extensive environmental review before Corridor Resources can get a permit to explore on the Old Harry prospect in the Gulf of St. Lawrence, CBC is reporting.

The Canada-Newfoundland and Labrador Offshore Petroleum Board received 50 submissions as part of a review into an application by Corridor for an exploration permit.

In June, CNLOPB asked Kent to appoint a mediator or review panel  on the project:

“In the aftermath of the blowout in the Gulf of Mexico, Canadians are particularly sensitive to the risks associated with offshore oil exploration drilling. This proposed well is in an area where there has been little public experience with offshore drilling, and it has attracted an especially high level of concern. These concerns have been expressed clearly to the C-NLOPB and we are of the opinion that a level of environmental assessment beyond a screening report is warranted,” said Max Ruelokke, C-NLOPB Chair and CEO.

The offshore regulatory board’s enabling legislation gives it the power to request a review if “it believes the project may cause significant adverse environmental effects, or if public concerns warrant this level of review.” That’s from the offshore board’s June news release.

Old Harry is a potentially lucrative oil and natural gas field in the Gulf of St. Lawrence.  It lies in an area that is subject to a dispute over jurisdiction between Ottawa and each of the four provinces bordering the Gulf.

Corridor Resources wants to explore in a portion of the field that is within the CNLOPB area of responsibility.

Last summer, the federal government started talks with the Quebec government on a revenue sharing deal  - modelled on the 1985 deals with Nova Scotia and Newfoundland and Labrador – that would cover any sub-sea resources within a potential Quebec offshore area.

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Offshore board releases second part of offshore helicopter safety inquiry

From the Canada-Newfoundland and Labrador Offshore Petroleum Board:

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) received the Phase II Report of the Offshore Helicopter Safety Inquiry today and is releasing it to the public immediately.

"The Board would like to thank Commissioner Wells along with commission counsel and staff for their continued hard work during Phase II and in completing this Report. The C-NLOPB will review the report and recommendations proposed by the Commissioner and will respond once the review has been completed,” said Max Ruelokke, Chair and CEO of the C-NLOPB.

The C-NLOPB will take up to 10 days to review the report and recommendations. The Board will not be commenting on the report until it has completed its review.

To obtain a print copy of this report, please contactinformation@cnlopb.nl.ca with a full mailing address. The report will be sent within three business days. Persons wishing to pick-up a copy of the report at the C-NLOPB office are asked to state this in their request.

Media Contact:
Sean Kelly M.A., APR, FCPRS
Manager of Public Relations
(709) 778-1418
(709) 689-0713 (cell)
skelly@cnlopb.nl.ca

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Offshore board recommends mediator or panel review for Old Harry drilling proposal

The  Canada-Newfoundland and Labrador Offshore Petroleum Board issued the following news release on Monday:

“The Canada-Newfoundland and Labrador Offshore Petroleum Board
(C-NLOPB), in its role as Responsible Authority pursuant to the Canadian Environmental Assessment Act (CEAA), has recommended to the Federal Minister of the Environment, the Honourable Peter Kent, that the proposal by Corridor Resources Inc. to drill a petroleum exploration well on its Exploration Licence (EL) 1105, in the Newfoundland and Labrador Offshore Area in the Gulf of St. Lawrence, be referred to a mediator or a review panel.

“In the aftermath of the blowout in the Gulf of Mexico, Canadians are particularly sensitive to the risks associated with offshore oil exploration drilling. This proposed well is in an area where there has been little public experience with offshore drilling, and it has attracted an especially high level of concern. These concerns have been expressed clearly to the C-NLOPB and we are of the opinion that a level of environmental assessment beyond a screening report is warranted,” said Max Ruelokke, C-NLOPB Chair and CEO.

On February 21, 2011, Corridor Resources Inc. filed a Project Description pursuant to the CEAA respecting its plans to drill an exploration well on EL 1105. The C-NLOPB is the Responsible Authority respecting the project since its authorization is required before the project may be carried out. Natural Resources Canada, Environment Canada, Fisheries and Oceans Canada, and the Department of National Defence indicated that they were in possession of relevant specialist or expert information or knowledge and would contribute this to the environmental assessment of the project.

On February 25, 2011, the Board published a draft scoping document respecting the assessment and invited the submission of public comments no later than March 28, 2011. The solicitation of public comments on the draft scoping document resulted in the submission of over 50 comments from individual citizens, fish harvesting groups, elected municipal government representatives, First Nations, and environmental advocacy groups. The C-NLOPB has posted all comments on its website at http://www.cnlopb.nl.ca/environment/corridorresinc.shtml.

Under the legislation, exploration wells normally require a screening level of assessment. However, paragraph 25(b) of the CEAA, enables a Responsible Authority to recommend that a proposed project be reviewed by a mediator or panel if it believes the project may cause significant adverse environmental effects, or if public concerns warrant this level of review.

Based on information available to date, neither the C-NLOPB nor the expert departments have identified evidence indicating that the project is likely to cause significant adverse environmental effects. However, the public commentary received to date is of a level and nature greater than any the C-NLOPB has received respecting environmental aspects of a proposed exploration or production project in its 26-year history. The Board believes that this level of concern warrants such a recommendation.

Letter to Honourable Peter Kent, Minister of the Environment, June 3, 2011”

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Offshore board opens bids on three parcels

From CNLOPB:

The Canada-Newfoundland and Labrador Offshore Petroleum Board
(C-NLOPB) announced [on May 12] the details of the 2011 Calls for Bids in the Newfoundland and Labrador Offshore Area. Calls for Bids NL11-01 (Area “B” Western Newfoundland and Labrador Offshore Region), NL11-02(Area “C” Flemish Pass/North Central Ridge) and NL11-03 (Area “C” Labrador Offshore Region) will consist of eight parcels, which comprise 1,599,295 hectares.

Interested parties will have until 4:00 p.m. on November 15, 2011 to submit sealed bids for parcels offered in Calls for Bids NL11-01, NL11-02 and NL11-03. The sole criterion for selecting winning bids will be the total amount of money the bidder commits to spend on exploration of the respective parcel during Period I (the first period of a nine-year licence). The minimum bid for each parcel offered in Area “C” is $1,000,000 and for Area “B”, $100,000.

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Operation Ridiculous

Usually when one is in a hole, it is a good idea to stop digging.

There may be exceptions to this rule,  but for most occasions,  when you can no longer see over the edge of the hole even on your tippee toes, best thing to do is lay the shovel down and start figuring out how to get out of the self-inflicted predicament.

If your friends are in a hole, then you can offer them a hand up out of the hole.  Under no circumstances, though, should you start shovelling dirt in on top of them.  Jumping in with them may be noble but it is never sensible and if you are in the hole, it is never wise to start pulling the shite back in around your own feet.

Evidently, someone forgot to explain this subtle bit of mystical political knowledge to Premier Kathy Dunderdale.

Instead,  Premier (pro tempore) Dunderdale got hold of the Danny and Liz playbook, a portion of which Liz decided to continue this week in her ongoing campaign to destroy whatever shreds of her own dignity she might have left.

Remember that claim about not knowing about the appointment?  Well, kiss that nose-puller goodbye when the evidence is unveiled.  Elizabeth Matthews told the Telegram that in fact she had a copy of the order in council the Liberals released on Tuesday.

The she tried to turn the whole thing into a process story:

The job of vice-chair of the CNLOPB requires approval from the federal government and Matthews said she was not “informed in any official capacity” that she had been named to the board.

So she knew, but not officially and therefore she didn’t know.

Or did she?

Liz Matthews may well turn out to be the political progeny not of Danny Williams but of Tom “TimeLord” Rideout.  Liz knew but didn’t know.  Back in 2007, Tom wanted to explain that the Green report recommendations on allowances would come into effect tomorrow but in his world, tomorrow meant six months in the future, not the day after this one.

How in the name of heavens can anyone not wilfully and pathologically blinded by Danny-envy be surprised that the Gang That Couldn’t Shoot Straight, the crowd that brought you a low rent version of Doctor Who  - Rideout, Hedderson and Marshall editions - and the Abitibi expropriation blunder couldn’t even handle a simple appointment to a board whether out of unfettered lust for patronage or a secret John-Turnerish promise to Danny?

Seriously.

Who is shocked by this?

Didn’t think so.

Unable to hide from the media any longer, the person who actually made the Elizabeth Matthews nomination made a few comments today.  The result was, well, let’s just say that when she frigs up Kathy Dunderdale does not settle for half measures. She laid her shovel down alrightee and then dragged in a backhoe just to really bury herself.

Before going any further, let us remember that the core point Dunderdale could have used was simple:  appointment’s not done yet.  We’ll let you know when and if it is made. That is the same line Matthews could have used and it is the one Shawn Skinner could have tried. 

There might have been a bit of a stink about patronage or potential pork-barrelling but it wouldn’t have been half as bad as day after day of the appointee and a senior minister saying things that they both ought to have known were bullshit and that could be shown to be bullshit fairly easily.

Think of it this way:  they did not impeach Clinton for a quickie in the closet with a young woman a fraction of his age.  They got him for insisting that he had not had sex with that woman and then engaging in some amateur lawyer bullshit about the definition of “is” in order to perpetuate the patently ridiculous denials.

So take a gander at the raw footage of Dunderdale talking to reporters. 

Making it up as she goes along 

Dunderdale claims there is a regulation requiring first a board appointment and then the second stage of a vice-chair nomination.  She then claims that a letter conveys the official appointment.

Dunderdale knows or ought to know this is preposterous.  There is no regulation governing the appointment.  The Atlantic Accord implementation acts simply state that the nominee for vice chair needs the support of both the federal and provincial governments.  If both governments agree on the nomination, a board appointment can follow in due course.  Both governments can even agree whether it will be a federal, provincial or joint appointment.

Take a look at the order in council.  It is clear that Matthews is appointed with effect from January 1 and that – in addition – cabinet put Matthews forward as a nominee for vice-chair subject to federal agreement.  There’s even a reference to negotiating the salary for the vice chair’s job.

Simply put, Dunderdale is wrong.  You have to be on the board if you are vice chair but you don’t have to be on the board before becoming vice chair.

Let’s go one step beyond.  If, as Dunderdale claims, she never intended Matthews to sit on the board in any capacity other than as vice-chair, the order in council would have been written to say that.  More likely, it would have followed the agreement and approved the appointment and salary as already agreed.

Dunderdale defends her nomination of Matthews because she believes the former Williams communications aide is a “strategic thinker” who is articulate.  Clearly the events of the past couple of days speak to the contrary impression.  Articulate strategic thinkers don’t usually default to easily disprovable crap as the first thought.

Dunderdale claims that the process is not secret, that it has to be straightforward and done in public.  The events as they unfolded and Dunderdale’s own account of how things were supposed to happen make her claims about welcoming debate patently false.

Had things unfolded as Dunderdale intended, no one would have learned of the appointment until after it was copper-fastened, to use a hideous Dunderism.  Michael Connors of NTV (or so it sounded like) made the point in a question that an appointment to the board announced in December would have sparked controversy.  Indeed, it would have.

As for welcoming the chance to defend Matthews, it is almost laughable that both Matthews and Dunderdale talked about their willingness to defend the appointment only after Matthews quit the process and therefore made such a defence unnecessary. 

People who genuinely believe they can win don’t quit.  It’s that simple.  Everything else is nonsense.

As for what really happened, the full story may never emerge.  It is possible, for example, that Dunderdale – like her patron and water rights – got caught in a rather amateurish effort to engineer something for Matthews.  Heck, maybe the same legal geniuses behind that fiasco and the expropriation cooked up this scheme with their less-than-perfect knowledge of the law and procedure.

Faced with a federal twin vice-chair who might well have wound up as the official replacement for Ruelokke, any other schemes about changing the board using Matthews may well have been scuttled.

Then again, the simple fact that Matthews blew her own feet off with her patently false claims on Friday, coupled with industry and political pushback made the appointment too stinky to survive the very debate Dunderdale supposedly welcomed. Dunderdale and Matthews can talk all the brave talk they want:  fact is they lost.

The whole Matthews mess is almost too embarrassingly ridiculous to believe. Had it not unfolded in front of our eyes, anyone could reasonably reject it as too incredible to be true.

[But the fact is] you just cannot make this stuff up.

All we can do is wait to see what Dunderdale does next.

[Updated:  corrected typos;  subhead clarified;  words added in square brackets to clarify sentence.]

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Related:

• “Introducing Premier Kathy Dunderdale”
• “Introducing Premier Dunderdale:  Patronage and the Public Tender Act”
• “Introducing Premier Dunderdale:  delusions”
• “A primer on the new Premier”
• And for those who missed it, this post carries on the tradition of “Chaos in Control”:  “Get Smart!  “Operation Ridiculous”,  Season 3 

Head-scratching and nose-pulling over latest twist in Matthews appointment debacle

A few of the people steadfastly supporting the provincial government’s pork-barrel attempt to get Elizabeth Matthews on the offshore regulatory board were left scratching their heads Tuesday evening. [changed verb tense]

Some are so perplexed trying to reconcile their stories with the facts that they are even calling for a public inquiry

The reason is simple.  Yet another aspect of the story they have been spreading is blowing away in the face of facts. 

The specific bit now boiling off faster than a Japanese reactors’ cooling water is the claim that Elizabeth Matthews didn’t know about her board appointment or that her appointment included a seat on the board, depending on how you interpret the comments. 

On Friday, Matthews responded to a Liberal opposition news release that noted she was appointed to the offshore board on December 21 with effect from January 1, 2011. CBC provincial affairs reporter David Cochrane tweeted a series of comments on this, including comments about Matthews:

(March 11)  “Where are you getting this from?  Feds tell me her appt isn’t finalized at all…I spoke to Matthews directly.  She says she is not on the board….EM says she has never been told of any appointment.  Do Libs have draft letter never sent?…Skinner says they nominated EM in January…”.

Cochrane put Matthews’ comments to Shawn Skinner in a scrum on Monday.  Skinner agreed that Matthews hadn’t been notified and that’s the story CBC ran with on Tuesday.  Skinner also mentioned that the appointment needed an order in council but insisted that Matthews didn’t know about the appointment.

Well, the order in council clinches it:

If you look on the left-hand side of the document, you will see the list of people to whom officials of the cabinet secretariat distributed the order.  “P” is the Premier.  The Natural Resources and Public Service Secretariat deputy ministers got copies, as did the Attorney General, the Deputy Clerk of the Executive Council and the file.

And so did someone named E. Matthews.

Just so that everyone understands just how crucial this document is, understand that the order in council is one of the basic legal instruments of our system of government.  You can find a handy definition of what an order in council is over at the Privy Council Office website along with a searchable database of these public documents.

To paraphrase, an order in council is a legal instrument made by the cabinet, called the Lieutenant Governor in Council, by powers given by a law or, less frequently, the royal prerogative.  In most provinces, orders in council are made on the recommendation of the responsible minister and take legal effect only when signed by the Lieutenant Governor.

They don’t get back-dated.  And they damn well don’t get left sitting idly around somewhere unattended.  The people who handle these things are nothing if not diligent to the point of anal retentivism about making sure everything is done just so. That’s not a knock on them; to the contrary, the people in the Executive Council office are among the most trustworthy and responsible people anywhere on the planet.

They don’t shag up, as a rule.

And in this case, they’d have extra incentive not to make a mistake.  As Shawn Skinner pointed out on Monday, these appointments belong entirely to the Premier.  Kathy Dunderdale gets to make them just like her predecessor Danny Williams did. That isn’t what happened before 2003, by the way.

If Kathy picked Liz, then there’d be hell to pay if Liz did not know that she could start earning cash come the New Year.

Nor is it really plausible that Kathy Dunderdale, Shawn Skinner or any of their senior staff might have buggered up and not mentioned to Liz she had a seat on the board.

Nor is it likely that they thought one didn’t happen without the other.  Shawn Skinner’s been pretty clear since Monday that they considered it a two-stage process, but stage one happened in December. 

The order in council makes the appointment to the board first.  Then it puts Matthews forward as a vice-chair, subject to federal approval.  That’s what Skinner told reporters on Monday.  As it turned out, the feds made a counter-offer to accept Matthews contingent on the province accepting a second vice-chair by federal appointment.

Nor is it likely David Cochrane either misunderstood what Matthews told him or made a fairly consistent mistake in conveying it via Twitter or anywhere else. Matthews relayed what he got and consistently put the comments to Skinner.

Now Liz may have misunderstood what was going on, but that’s a different – and entirely possible – thing. 

For something like this, Matthews would have been entitled to attend any board meetings after January 1, 2011 and participate like any other member.  The only thing that hadn’t been settled up to the time she bailed on the whole thing was the second part of the order.  That is, the federal government had not agreed to her appointment to the vice-chair’s job.

But her board appointment on behalf of the province?

Full legal effect on December 21.

With Matthews’ decision to bail on the appointment, the whole vice-chair position at the board is up in the air.  The idea of two vice-chairs appears to have been nothing more than an effort to have a federal appointee to offset Matthews. 

With her appointment now dead, there’s an opportunity for both St. John’s and Ottawa to agree on an open competition to be followed by an appointment based on qualifications and merit.

If nothing else, it’s got to beat the hell out of yet another complete disaster  - remember Andy Wells? - that its proponents have been forced to defend with what amount to claims of their own bungling and incompetence.

- srbp -

Where is the Hebron development application?

Last January, the Hebron partners said they’d be submitting their development plan for Hebron to the offshore board by the end of the year.

That would have been December 2010.

Now it’s March 2011 and there’s still no sign of it.

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Matthews bails on board position

Elizabeth Matthews is bailing out of her controversial nomination to serve as vice-chair of the Canada-Newfoundland and Labrador Offshore petroleum Board.

It isn’t clear if she is also leaving her appointment to the board itself.

As CBC reports, Matthews is blaming the Opposition Liberals for politicising the entire matter.  Matthews served as a communications director for the Liberal administration of Roger Grimes before she left quickly to work for Danny Williams in the Opposition office where he was infamous for slinging wild, political accusations.  In another ironic twist, Matthews former boss said he got into politics because he was sick of all the patronage and corruption.

The big twist in the story appears to have come on Friday when the Liberals revealed a December 21 letter from natural resources minister Shawn Skinner to his federal counterpart appointing Matthews to the offshore with effect from 01 January 2011.

And then things went horribly wronger Update:

The Telegram has the full text of Matthews’ statement.  For starters, try and find the clear statement where she says she is quitting her appointment. Then check and see if she has actually launched any defamation action given her references to defamation.  This sounds suspiciously like John Hickey suing Roger Grimes for stuff Danny Williams said:  a huge pile of smoke to cover the catastrophe everyone else sees.

If that wasn’t enough, note, among other things, the change in her title in the Premier’s Office from the bio sketch in the letter on the appointment – “Senior Policy Advisor”  - to “a senior advisor”.  There’s a huge difference in the two.  That’s just the tip of that iceberg.

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Matthews appointment to offshore board kept under wraps until leak

Flip back to the provincial government news release archive for last December and there’s one thing you won’t see:  an announcement appointing Elizabeth Matthews to occupy a provincial seat on the offshore regulatory board.

That’s because they didn’t issue an announcement despite sending the federal government a letter advising the feds of the provincial appointment. You can find the letter online at the Official Opposition’s website.  They got it from the provincial natural resources department.

In the second paragraph of the letter, natural resources minister Shawn Skinner  also nominates Matthews as vice-chair of the offshore regulatory board. That’s something the federal government would have to agree to.  Apparently they did but only on the condition that the province accept a federal second vice-chair.

One huge difference between the two vice-chairs, incidentally is that the federal one actually was a senior policy advisor in a previous life.  The biographical sketch of Elizabeth Matthews was evidently written by someone in the latter stages of advanced pinochiosis.  For example, the bio sketch talks about a re-negotiation of the Atlantic Accord.  That never happened so it would be pretty hard for Matthews to have been involved in it at all, let alone at the level the writer claimed.

There’s a story in Saturday’s Telegram on this but sadly it isn’t online. The story includes some quotes from a bizarro news release Skinner issued on Friday, supposedly to correct information in the Liberal release that went out along with Skinner’s letter to the feds.

The bizarro thing is that he didn’t actually correct anything. Instead, Skinner confirmed what the Liberals said.  he also did a bit of a nose-puller when he claimed that the provincial government had to appoint Matthews to the board in order to nominate her as vice chair.

Think of that as being a chicken-and-egg version. Before now, the federal and provincial governments could successfully agree on an appointment as vice-chair before making an announcement.  The board seat was secondary.  In this case, the provincial government apparently tried to push Matthews forward with a seat on the board and then tried to cut the deal on the vice-chair’s job.

Surprise.  Surprise.

The feds didn’t play along and put forward their own nominee for a second spot in a “I’ll take yours but only if you take mine too” kinda deal.

Both bits of that – the provincial ploy and the federal counter - likely have a lot to do with the fact that Matthews is basically a patronage appointee with no relevant qualifications to take on the vice-chair’s job. She can’t really hold a candle to either the current or former chair and she’s outclassed experientially speaking by the guy she was supposedly replacing.  Had the provincial government opted for a meritorious appointment perhaps with an open competition they might have found one of several qualified women from the province to take the job.

Word of Matthews’ appointment leaked out about three or four weeks ago in the province’s oil community.  It caused a great deal of consternation.  A few weeks after word started to spread, CBC’s David Cochrane reported it.  He only gave the bare bones of the basic story though. Apparently CBC isn’t reporting the rest of these details as they’ve come to light.  It will be interesting to see if anyone adds new details to the story this week or if this is really the end of the story.

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