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Natural Resources
April 27, 2010

Provincial Government Corrects Misinformation Regarding Abitibi

The Honourable Felix Collins, Minister of Justice and Attorney General, and the Honourable Kathy Dunderdale, Minister of Natural Resources, today corrected misinformation pertaining to the responsibilities of Abitibi in relation to environmental clean up as well as the Provincial Government's communication of the matter. Minister Collins indicated that Abitibi has legislative responsibilities for any contamination.

"The Environmental Protection Act ensures that Abitibi, as owner of the site when contamination occurred, is responsible even though the Provincial Government now owns the site," said Minister Collins. "As well, the Abitibi-Consolidated Rights and Assets Act, specifically section 13, indicates that Abitibi-Consolidated remains responsible for all undertakings made by it in relation to environmental remediation at any of its former sites. We expect Abitibi to meet these obligations."

Sections 2 (x) (ix) and 2 (x) (v) of the Environmental Protection Act state that the "person responsible" at the time a contaminant is released into the environment is responsible for the clean up of the site. A "person responsible" includes a former owner. As well, section 13 of the Abitibi-Consolidated Rights and Assets Act specifically states that "nothing in this act affects the liability of Abitibi-Consolidated related to undertakings made by it in relation to environmental remediation."

Currently Abitibi is under creditor protection pursuant to the federal Companies' Creditor Arrangement Act. It is seeking to have its environmental responsibilities significantly reduced by this process. The Provincial Government is legally challenging that position, arguing that Newfoundland and Labrador environmental protection laws cannot be disregarded.

"The Leader of the Opposition continues to provide the people of our province with inaccurate information on the Abitibi file," said Minister Dunderdale. "When she states that the assets of Abitibi will cost the province $500 million she is using the unsubstantiated figure of Abitibi in its statement of claim under NAFTA. Just because Abitibi says that is the value of the assets does not make it so. The Provincial Government is unclear as to how this dollar amount is derived."

Minister Dunderdale also pointed out that she announced that the Provincial Government inadvertently expropriated the mill and property in a news release on February 5, 2010. Recent media reports have been suggesting that the Provincial Government's ownership of the mill itself only came to light last week during questioning in the House of Assembly.

"This is totally erroneous," said Minister Dunderdale. "We announced the fact that we now have legal ownership over the mill and property, Grand Falls House and the former mill manager's house in early February when Abitibi informed us they were officially handing over the buildings to us. To suggest this information is coming to light as a result of questioning by the Opposition in the House is ludicrous. The information is publicly out there for anyone to see. On top of that, I did media interviews at the time providing additional details as to how this situation transpired."

The release clearly states: "When drafting Bill 75, we erred on the side of caution to ensure that the hydroelectric facility attached to the mill was included in the expropriation. By not including descriptive language to specifically exempt these other properties, the province assumed legal ownership of them."

The news release indicates that the Provincial Government has no plans for the properties at this time while legal processes associated with Abitibi's assets and responsibilities in this province are ongoing. It also states that, "Our taking custody and management of these buildings at this time no way reduces, eliminates or mitigates any responsibilities Abitibi may have in respect to remediation or environmental liabilities."

The full text of the release can be found at: www.gov.nl.ca/releases/2010/nr/0205n09.htm

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Media contacts:

Ken Morrissey
Director of Communications
Department of Justice
709-729-6985, 685-6612
kenmorrissey@gov.nl.ca
 
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca

2010 04 26                                                       4:45 p.m.
 


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