Minister Noel says offshore regulatory system must be in province�s best interest

Mines and Energy Minister Walter Noel met with Canada�s Minister of Natural Resources at the Offshore Europe 2003 Oil and Gas Exhibition and Conference in Aberdeen on Wednesday. Among issues discussed was Minister Dhaliwal�s proposal for a single Atlantic Canada Offshore Regulatory Board.

"I advised Minister Dhaliwal that our province wants a regulatory system which serves our province best. The existing system is working relatively well, though improvements are required. While Ottawa and various petroleum companies might prefer dealing with a single body in the whole East Coast region, we feel improving the present structure would be the best way to protect our interests. We have specific and much more substantial interests than other provinces, and feel they will continue being best served by a dedicated board.

"We understand that industry views Atlantic Canada as one region when looking at their global investment decisions. However, companies deal with separate jurisdictions in many regions throughout the United States, western Canada and globally. Mr. Dhaliwal has not suggested that the governments of British Columbia, Alberta and Saskatchewan should have one regulatory body to administer all three western provinces.

"Newfoundland and Labrador wants the efficiency of our regulatory processes improved. We are working with the federal government, Nova Scotia and industry to achieve this. However, we believe that maintaining autonomy in our respective offshore areas allows for healthy competition and encourages all jurisdictions to properly develop their resource potential. It permits each regulatory board to focus on the particular issues facing each province.

"I told Minister Dhaliwal we will work with all interested parties to help develop our industry. But we will only agree to what is in our best interest. We will ensure that Newfoundlanders and Labradorians benefit to the maximum extent possible from our offshore resources. We will not agree to any system which does not enable us to regulate our industry as we think best."

Media contact: Darrell Mercer, Communications, (709) 729-5777

2003 09 05                                        4:50 p.m.