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May 19, 1998
(Mines and Energy)


The following statement was issued today by Charles Furey, Minister of Mines and Energy. It was also read in the House of Assembly:

I am pleased to announce plans to undertake environmental and engineering studies during this year's field season in Labrador for the proposed Churchill River Power Projects. This work will provide a better understanding of technical issues leading up to the signing of a letter of intent with Hydro-Qu�bec. It will also put the project in a good position to move forward on a timely basis during the next field season should an agreement be reached as planned later this year.

Last week, the Premier, myself and other government representatives participated in meetings with Innu representatives. I believe these discussions were positive and beneficial for both sides. I am pleased to report that the proposed field work has been discussed with Innu representatives in Labrador and they have agreed that it is necessary for certain baseline studies to begin this summer in Labrador. As a result of these discussions Government has agreed, at the request of Innu representatives, to provide financial assistance valued at $150,000 to the Innu enabling them participate in the environmental field work to be completed this summer. Both sides also agreed during the meeting to a confidentiality agreement and to meet again.

Hatch Associates of St. John's has been selected to handle overall environmental management. This will include overseeing a variety of environmental field studies this year regarding archaeology, reservoir clearing, wildlife, fisheries and line routings, among others. Hatch Associates is a local company that will employ Newfoundlanders and Labradorians. Estimated value of the work is in the order of $250,000.

AGRA Earth and Environmental Ltd. of St. John's has been selected to conduct a waterfowl study in the area of the proposed transmission routes on the northern peninsula and on the Churchill Valley up to Churchill Falls. The value of this work is approximately $115,000. Again, this is a company with offices in the province employing local workers.

The terms of reference for additional environmental studies will be developed and issued within the next two months.

With regard to engineering work, Newfoundland and Labrador Hydro has issued Requests for Proposals for final feasibility studies on both the proposed additions to the existing Churchill Falls development and the proposed Muskrat Falls project. This will involve geotechnical field survey work as well as additional engineering studies to complete full feasibility reports. It will include the preparation of cost estimates with an accuracy of plus or minus 10 per cent. A detailed construction schedule will also be developed for each development.

As members are aware, the expansion to the current Upper Churchill development would include the construction of a new power house and the addition of two turbine generators, each with a nominal generating capacity of 500 megawatts of power for a total of approximately 1000 megawatts. For the proposed Muskrat Falls development, the work would involve study of the various alternatives for development of that site.

1998 05 19 5:10 p.m.


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