Natural Resources
March 5, 2007
Province Disappointed in Appeal by Oil
Companies
The province is disappointed that
Hibernia Management Development Company (HMDC) and Petro-Canada have
decided to appeal a court ruling that upholds the Canada-Newfoundland
and Labrador Offshore Petroleum Board�s (C-NLOPB) ability to set
research and development spending guidelines on companies operating in
our offshore.
�These projects are very profitable and as good corporate citizens the
operators should be prepared to put some of the wealth generated from
these projects back into the community in terms of research and
development and education and training, which not only benefits the
province but the operators as well,� said the Honourable Kathy
Dunderdale, Minister of Natural Resources. �The board is only requiring
these operators to spend in this province in accordance with what has
been the average and accepted norms in the industry elsewhere.�
Effective April 1, 2004, the C-NLOPB implemented guidelines requiring
oil companies to spend more of their offshore revenues on research and
development and education and training in this province. The board
stated that it had the authority under the Atlantic Accord to set
spending requirements based on a percentage of operators� offshore
revenues. HMDC and Petro-Canada applied to the Supreme Court for
judicial review of the board�s decision to impose the guidelines, with
the court ruling in favour of the board earlier this year.
�Our petroleum resources are non-renewable and we must ensure that they
are developed in a way that creates the greatest benefit for the people
of the province, now and in the future,� Minister Dunderdale said.
�Investing in research and development in areas of strategic importance
to the province builds on the intellectual capital and human resources
of this province and this is vitally important as we move forward in the
development of this industry.�
Research and development is an important component of the
Canada-Newfoundland and Labrador Benefits Plan and can make a
significant contribution to the sustainable development of the
province�s resources. Over the past few years, the province has
established significant infrastructure and developed leading-edge
capabilities related to oil and gas development. New spending can add to
that capacity and position the province as a world leader in offshore
oil and gas related research and development.
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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-1703
tracybarron@gov.nl.ca
2007 03 05
3:00 p.m.
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