Government reacts to decision in Newfoundland and Labrador/Nova Scotia Offshore Boundary Dispute

Premier Roger Grimes and Mines and Energy Minister Lloyd Matthews reacted today to the arbitration tribunal's final decision in the Newfoundland and Labrador/Nova Scotia offshore boundary dispute arbitration. The arbitration tribunal was established by the federal government on May 31, 2000. The mandate of the tribunal was to establish a maritime boundary to separate the offshore areas of Newfoundland and Labrador and Nova Scotia under their respective Accord Acts.

"The Government of Newfoundland and Labrador is extremely pleased with the line established by the tribunal," said the premier. "By any measure, the tribunal�s decision represents a significant decision for this province." The line established by the tribunal provides Newfoundland and Labrador with almost 70 per cent of the area that was in dispute between the two provinces.

"This has been a good week for the province. It was only a few days ago that we witnessed the sanctioning of the White Rose Project and the promise of a secure and prosperous future for the Marystown shipyard," noted Premier Grimes. "Today, we welcome the tribunal�s final decision and an end to this long standing dispute."

Minister Matthews said that an end to the offshore boundary dispute is good news for both provinces. "The tribunal�s decision provides both provinces and industry with jurisdictional certainty," said Minister Matthews. "We can now move forward with the business of opening this area up to advanced exploration. Exploration activity will provide substantial benefits to both provinces and lead, we hope, to discoveries on both sides of the boundary."

Premier Grimes and Minister Matthews thanked the province�s offshore boundary team, which included legal, technical and research experts. "I thank all members of our team for a job well done and especially our agent, Professor Donald McRae of the University of Ottawa, and our deputy agent, Deborah Paquette of the Department of Justice. In addition to Professor McRae, Alan Willis, QC, David Colson, Brian Crane, QC, and Professor John Currie presented oral arguments to the tribunal," said the premier.

Premier Grimes stressed that this dispute has not strained relations between Newfoundland and Labrador and Nova Scotia. "During this arbitration, Newfoundland and Labrador and Nova Scotia continued to work together to advance common priorities, such as equalization reform," noted Premier Grimes. "That is a testament to the strong, constructive relationship that our provinces enjoy."

The tribunal�s decision is binding on both provinces and will be implemented by the two provinces and the federal government by way of regulations made pursuant to the Newfoundland and Labrador and Nova Scotia Accord Acts.

Media contact:
Carl Cooper, Premier�s Office, (709) 729-3960
Darrell Mercer, Mines and Energy, (709) 729-5777

On May 31, 2000, the federal Minister of Natural Resources established an arbitration Tribunal to settle the Newfoundland and Labrador/Nova Scotia offshore boundary dispute. The Chair of the Tribunal is the Honourable G�rard LaForest, former Justice of the Supreme Court of Canada. The other members of the Tribunal are Mr. Leonard Legault and Dr. James Richard Crawford.

The mandate of the Tribunal was to establish a line to separate the offshore areas of Newfoundland and Labrador and Nova Scotia, under their respective Accord Acts. In establishing a line, the Tribunal was required to apply the principles of international law governing maritime boundary delimitation, as if Newfoundland and Labrador and Nova Scotia were sovereign states.

The arbitration was divided into two phases. In Phase One, the only issue before the Tribunal was whether a line had already been established by an agreement between the parties. On May 17, 2001, the Tribunal unanimously determined that a line had not been resolved by agreement.

With the issue of agreement conclusively dealt with, the task of the Tribunal in Phase Two was to establish a boundary line in accordance with the principles of international maritime boundary law. The Tribunal�s Phase Two Award was released on April 2, 2002.

The attached maps depict the claims of the two provinces, together with the boundary line established by the Tribunal. The boundary line established by the Tribunal provides Newfoundland and Labrador with almost 70 per cent of the area that was in dispute between the two provinces.

The line established by the Tribunal is a modified equidistance line. In the Gulf of St. Lawrence and Cabot Strait areas, the equidistance line is modified slightly to join turning points discussed by Newfoundland and Labrador and Nova Scotia in the 1960s and early 1970s. In the outer area, the equidistance line is modified by giving no effect whatever to Sable Island.

The Tribunal�s decision is final and binding. It will be implemented by both provinces and the federal government by way of regulations made pursuant to the Newfoundland and Labrador and Nova Scotia Accord Acts.

The maps to accompany this release are below:

Map #1: Division of the Disputed Area
Map#2: Claims of the Parties and Award of the Tribinal

2002 04 02           10:30 a.m.