The Provincial Government is assuming custody and management of the former pulp and paper mill and property in Grand Falls-Windsor, as well as Grand Falls House and the former mill manager's house, upon notice that Abitibi is handing the assets over to the province.

Through the passage of Bill 75 on December 16, 2008, the Provincial Government revoked timber and water rights from Abitibi. When determining which assets/properties to expropriate, the Provincial Government included power-related infrastructure and the hydroelectric facility attached to the mill itself. Language to exempt the mill and the other two properties on Reid Lot #59 was not included in the final bill, as intended, and therefore the Provincial Government has legal title to these properties.

"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," said the Honourable Kathy Dunderdale, Acting Premier and Minister of Natural Resources. "By not including descriptive language to specifically exempt these other properties, the province assumed legal ownership of them. 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."

Abitibi had been taking care of the security of these assets and environmental monitoring since the pulp and paper mill ceased operation in March 2009. Abitibi was ordered to provide an environmental remediation plan and the company is appealing this order and others related to the remediation of their former assets in the province. These orders were made by the Minister of Environment and Conservation under the Environmental Protection Act. Their appeal is currently under review by the Minister of Environment and Conservation.

The company formally notified the Provincial Government on February 2 that it was vacating the buildings.

"Now that Abitibi has decided to withdraw from the province, it is incumbent upon the Provincial Government to maintain the status quo of the buildings to ensure that public safety and the environment are protected and maintained," said Acting Premier Dunderdale. "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. While the legal issues around these properties unfold, the Provincial Government will ensure these assets are secure and do not become a risk to public safety or to the environment."