The future will be something #nlpoli

The association representing the province's offshore supply and service businesses paid a consultant from London to look at the potential for development of the oil located in very deep water offshore Newfoundland.

As CBC's Terry Roberts tells us,  the goal of the exercise was to help NOIA members get ready for a possible increase in deep water exploration.  Land sales offshore the past couple of years have been extremely good.  Companies bid huge amounts of money for the chance to explore offshore.

The offshore regulatory board offered 13 parcels this year.  They accepted proposals with a little over $500 million for exploration on about 1.5 million hectares.  In 2015,  the offshore board accepts proposals totalling $1.2 billion on 2.5 million hectares.

That looks really good.  The consultants said so.  Could be a massive boom in exploration, they said.

PQ hung up over Old Harry #nlpoli

Pierre Karl Peladeau won’t say yes or no to development of Old Harry, according to ledevoir.com.

Le Devoir interviewed the Parti Quebecois leader during a recent visit to the Magdalen Islands.  Peladeau refused to endorse a moratorium on development,  a move favoured by the islands fishermen who are concerned about the potential economic and environmental damage that could result from a major oil spill. Peladeau said the issue of a moratorium needed more study.

Peladeau insisted, however, that any decisions about Old Harry belonged solely to Quebec. He criticised the recent introduction of a bill in the National Assembly that would enable Quebec to establish a joint management board like the Canada-Newfoundland and Labrador Offshore Petroleum Board.

“If the Gulf is in federal jurisdiction,” Peladeau told Le Devoir, “recall that it is Ottawa that sets fish quotas. In an independent country, the question would not arise.”

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Newfoundland forcing Quebec's hand on Old Harry #nlpoli

The Bay du Nord field is far offshore and far from development, Paul Davis’ optimism notwithstanding.

It’s way the hell offshore (about 500 kilometres),  way the hell under water (more than two kilometres) and then way the heck under the sea bed  (about another two kilometres).  It’s not going to be easy and it sure as heck isn't going to happen in less than five years.

Premier Paul Davis likely talked up the prospect of an agreement  to develop Bay du Nord because he needed something to say at the annual offshore development conference this week.

What’s curious, though, is that he never mentioned a far more interesting project that is far easier to develop.

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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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 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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Shocker: Marois wrong on Penashue

Parti Quebecois leader Pauline Marois thinks federal intergovernmental affairs minister Peter Penashue can’t be fair to Quebec.

Marois thinks Penashue is in conflict because of Old Harry and Muskrat Falls.

“We will not accept giving advantages to Newfoundland to compete with Quebec and our hydroelectricity,” Marois said, noting Hydro-Québec has never received financial support from Ottawa.

“Mr. Penashue is from Newfoundland,” Marois said. “One of the first questions is the Lower Churchill. We hope the prime minister will realize there is a conflict.”

Pauline needs better advisors.

Peter Penashue is not from Newfoundland.  He is from Labrador. 

There is a big difference.  For one thing, Peter is not tied to the sort of misery-guts rhetoric that Danny Williams used to trot out every once in a while when he felt a bit more dyspeptic than usual.  Nor is Peter likely believe the sort of tin-foil hat foolish about boundaries and such that some other like to get on with.

Peter is not beholden to Kathy Dunderdale and the rest of her Dunderbunnies for anything.  He’s crossed them before and he will do it again if need be.

Peter has other interests and other issues.

And as federal intergovernmental affairs minister, Peter answers to a completely different set of political interests than the crowd in St. John’s anyway.  Kathy Dunderdale has exactly zero cred with the current federal government. 

She can suck up to the Prime Minister all she wants.  The sorry fact is that her political impotence has been noted.

So if Pauline Marois had any clue at all, she’d have laid off the cheap and easy comments aimed at a federal cabinet minister who has some connection to political forces in her own province that she might want to connect to herself as the next provincial election draws nigh in Quebec.

And all of that is before we even to get to dealing with her comment, according to the Gazette, that “Penashue will also be involved in deciding the disputed boundary between Quebec and Newfoundland.”

Simple answer:  he won’t.

So maybe Pauline needs to get some better advisors, people who actually have a frickin’ clue about what is going on outside VDQ.

Peter Penashue is actually someone the Government of Quebec can deal with sensibly and without all the Sasquatch Hunter crap she thinks Penashue represents.

Just sayin’.

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Feds, Quebec announce joint deal on offshore resources

Natural Resources Canada news release:

“The Honourable Christian Paradis, Minister of Natural Resources, and Nathalie Normandeau, Quebec Deputy Premier, Minister of Natural Resources and Wildlife and Minister responsible for the Northern Plan, today announced that the Governments of Canada and Quebec have reached an important accord on the development of oil and gas resources in the Gulf of St. Lawrence.

"This is an important day that is the result of a great deal of hard work," said Minister Paradis. "Under a co-management framework, Quebec will derive significant financial benefits from resource-related activities. This accord is a concrete example of the two Governments collaborating to create jobs, energy security and economic opportunity in resource communities in the regions of Quebec and Canada. The Government of Canada will continue to work with Quebec to ensure the responsible and sustainable development of our natural resources."

"This is an historic day for Quebec. After more than 12 years — and thanks to the tremendous work of our two governments — we are very proud to announce that the Province of Quebec has an agreement that will give us 100 percent of the revenues from the development of our oil and gas in the Gulf. It's truly a great day for Quebec," said Minister Normandeau.

The Quebec government is undertaking a strategic environmental evaluation before allowing the development of oil and gas in the Gulf of St. Lawrence. The results of this evaluation will be known in 2012.

Since 2006, the Governments of Canada and Quebec have achieved several milestone collaborations. The accord is a key element in the continuation of that work.

The accord will be implemented by means of mirror legislation that will be tabled by the federal and provincial governments before the Parliament of Canada and the National Assembly of Quebec. The accord will be implemented in steps, and rigorous environmental assessments will be conducted before any oil and gas development begins.”

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Offshore regulator opens environmental assessment on Old Harry drilling proposal

Edited version of the Canada-Newfoundland and Labrador Offshore Board news release:

The public is invited to comment on the draft scoping document for the Environmental Assessment of an exploration well being proposed by Corridor Resources within Exploration License 1105 (the Old Harry Prospect) located in the Gulf of St. Lawrence, offshore Newfoundland and Labrador.

The proposed activity includes drilling one exploration well within EL 1105 using a mobile offshore drilling unit (MODU), that is,  semi-submersible drilling rig or drill ship, supply vessels, and offshore helicopters. Vertical seismic profiling (VSP) activities may also be conducted in conjunction with the drilling activities. Corridor Resources proposes to drill one exploration well between 2012 and 2014.

Before any petroleum-related activity can be undertaken in the Newfoundland and Labrador Offshore Area, a detailed and location-specific Environmental Assessment (EA) must be submitted to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB). In addition, this project is subject to the federal environmental assessment process pursuant to the Canadian Environmental Assessment Act (CEA Act).

Pursuant to paragraph 18(3) of the CEA Act, the C-NLOPB as the responsible authority for the federal environmental assessment of the project is inviting the public to comment on the proposed draft scoping document prepared by the C-NLOPB.

Comments must be received by the C-NLOPB no later than Monday, March 28, 2011. Interested persons may submit their comments in the official language of their choice to information@cnlopb.nl.ca or to the following address:

Public Comments – Old Harry Project

Canada-Newfoundland and Labrador Offshore Petroleum Board

5^th Floor, TD Place

140 Water St., St. John’s, NL A1C 6H6

(709) 778-1400

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French fried over oil

Via nottawa, a link to a story by Canadian Press that so far has eluded local news media.

Seems Parti Quebecois leader Pauline Marois is a wee bit fried that, as the PQ members of the legislature claim, Newfoundland will be stealing Quebec oil in the Gulf of St. Lawrence. They attribute this to Premier Jean Charest’s supposed federalist-induced impotence.

The Quebec government imposed a moratorium on exploration in the Gulf.  Meanwhile, the Canada-Newfoundland and Labrador Offshore Petroleum Board approved this week plans to explore the part of the Old Harry field that is within the Newfoundland and Labrador offshore area.

Also via nottawa, you can find a few choice excerpts from the PQ questions in the Quebec National Assembly.  Like take this bit from Pauline Marois:

Il me semble que, si le premier ministre est vraiment sérieux, cultiver l'économie du Québec, appuyer l'économie du Québec, la première chose à faire, c'est, à tout le moins, de faire respecter nos droits, de nous défendre à Ottawa. On est en train de laisser Terre-Neuve piller nos ressources, voler notre pétrole, M. le Président...

Basically she says that if Charest were serious about developing the Quebec economy, he’d be protecting the province’s interests in Ottawa.  Instead, he is “letting Newfoundland pillage our resources, [and] steal our oil…”.

or this bit:

Mr. Speaker, the Premier of Quebec,offers us a pretty sad spectacle. He is absolutely incapable of responding to my questions and above all responding to the people of Quebec, who are very upset by the fact that this government does not defend us while Newfoundland is in the process of exploiting and exploring in the Gulf of St. Lawrence. We're going to assume the risks, and Newfoundland the benefits…

For his part, Charest noted – among other things -  that Marois called for a moratorium in August and now attacks the idea.  The whole exchange makes for some very interesting reading.

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Only Chips With My Fish Update:  In a post at labradore, you can find a comparison of the oddly similar rhetoric used by the Old Man hisself earlier this year and the Parti Quebecois energy critic in the National Assembly.  Apparently both were concerned with betrayal and taking sides.

Game on! Feds and Quebec start talks on Gulf Accord

The Government of Quebec and the federal government started talks recently aimed at achieving an agreement on revenue sharing for any oil and gas in the Gulf of St. Lawrence, Canadian Press reported.

Details about what the deal would entail, and when it would be implemented, remain vague. But [federal natural resources minister Christian] Paradis described the broad outlines while standing next to [Quebec natural resources minister Nathalie] Normandeau at an event earlier this week.

"We're talking about an administrative deal," he said.

"The goal is to create an office of hydrocarbons, as is the case in Nova Scotia and Newfoundland."

At the heart of the move is a potentially lucrative field known as Old Harry.  Believed to contain significant natural gas or oil reserves, the field lies across a boundary between Quebec and Newfoundland and Labrador proposed in 1964 but never accepted. 

Both Quebec and the Canada-Newfoundland and Labrador Offshore Petroleum Board have issued permits to Corridor Resources to explore Old Harry.

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Related:

• Jurisdiction dispute holding up oil exploration (January 2009)
• Corridor hits big gas (May 2010)
• There are gulfs and then there are oilspill gulfs (June 2010)
• Drill baby, drill: Dunderdale rebuffs Quebec concerns about border, offshore oil spills (July 2010)

Drill, baby, drill: Dunderdale rebuffs Quebec concerns about border, offshore oil spills

In a letter to Quebec natural resources minister Nathalie Normandeau, Newfoundland and Labrador deputy premier Kathy Dunderdale said that the provincial government had no plans for a moratorium on oil drilling offshore and dismissed any question about the interprovincial border in the Gulf of St. Lawrence.

The Montreal Gazette reported Wednesday on the exchange of correspondence between the two ministers in a story that highlights the border dispute and its impact on oil exploration in the Gulf.

According to the Gazette, Normandeau wrote Dunderdale to ask what measures were contemplated in light of the disaster in the Gulf of Mexico.

Dunderdale replied that Newfoundland had adopted "new oversight measures," had no plans for a moratorium on offshore drilling, and noted Normandeau's reference to a " 'cross-border geological structure,' by which I assume you are referring to the Old Harry prospect."

There’s no clear indication when the letters flew back and forth but the provincial government’s position has been clear since the Deepwater Horizon rig exploded in late April.

Premier Danny Williams dismissed calls for an offshore drilling moratorium in early June.  As in his remarks in early May, Williams focused on three fields in the north Atlantic.  He ignored other areas including the Gulf of St. Lawrence where the Old Harry field promises to match or dwarf Hibernia in size.

Williams referred to meetings he held in Calgary with officials of two companies operating offshore Newfoundland and Labrador.  As CBC reported,

The premier said he's confident the companies are doing everything possible to prepare in case a similar situation ever happens off the province's shores.

"I also asked them to elaborate for me on what additional measures have been put in place and am actually in the process of preparing a list and would only be too delighted to provide a list of the safeguards that were in place and the additional safeguards that are being put in place," Williams said…

It was not clear from the context of his comments if he was meeting with them in his capacity as premier of the province or as their de facto partner in offshore oil development. In some respects that wouldn’t matter since under some conditions of the Hebron agreement, Williams is legally obliged to follow the position dictated by the oil companies to oppose any new regulations that would  - in the opinion of the oil companies – adversely affect Hebron development.

Corridor Resources holds exploration permits from Quebec and from the Canada-Newfoundland and Labrador Offshore Petroleum Board for the Old Harry field.  Work on the permits has been hampered by a dispute over the border between Quebec and Newfoundland and Labrador and by the absence of a jurisdiction arrangement between the Government of Quebec and the Government of Canada over the seabed resources in the Gulf.

While Danny Williams has been focusing his public comments on the distant offshore – and downplaying the implications as a result -  a spill from any future Old Harry development could have disastrous consequences.  This map, produced earlier this year, shows a map of the British Petroleum spill superimposed on Old Harry.

The dashed lines represent interprovincial boundaries but, for Newfoundland and Labrador,  only the one between the province and Nova Scotia is formally in place.  The boundary with Quebec shown in this map has never been formally adopted.

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Corridor hits big gas

The company looking to explore the Old Harry oil prospect in the Gulf of St. Lawrence has another discovery on its hands.

According to CBC, Corridor Resources president Norm Miller told a Halifax audience Tuesday that Corridor and its partner Apache found a significant deposit of natural gas in Sussex County New Brunswick.

The gas find came in a hole originally drilled and abandoned 11 years ago.  Miller said that new technology allowed Corridor to find gas in a shale bed where it previously missed it. The Chronicle Herald reports the find is the largest shale gas deposit in North America. One independent estimate projects as much as 67 trillion cubic feet of natural gas could be found in that area of New Brunswick.

The find is also related to Corridor’s ongoing exploration for oil in New Brunswick. [map]

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Old Harry: Gulf prospect bigger than Hibernia

Old Harry is an oil and natural gas deposit in the Gulf of St. Lawrence that could be twice the size of Hibernia. As it is the current estimated size is about the same as the current proven, probable and possible oil at Hibernia.
The field is back in the news because one of the companies involved – Corridor Resources – is planning to do some exploration work on the portion of the field that is within the Newfoundland Offshore Area. Corridor has licenses for the field from Quebec and Newfoundland and Labrador.
There are two major problems.  Firstly, the border in the Gulf has not been defined clearly enough in that area.  Secondly, and more importantly, nothing is likely to happen on the Quebec side of the border unless and until Quebec City and Ottawa resolve a royalty/jurisdiction dispute.
The Quebec government is looking for a deal:

"This represents a good opportunity and lot of money for Quebec, especially at a time where we are trying to limit our dependence on oil imports," said Natural Resources Minister Nathalie Normandeau. "We want to settle this issue for good. Quebec has been very patient and we're taking a firmer line today. We've been waiting for 12 years and now we want to reach a deal."

And there’s a unanimous resolution in the Assemblee Nationale to back it up.
All things considered, oil and gas development in Newfoundland and Labrador is likely to shift to the western portion of the province sooner rather than later. 

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h/t to labradore.