Identifier
Created
Classification
Origin
07HALIFAX9
2007-03-06 21:56:00
UNCLASSIFIED
Consulate Halifax
Cable title:  

NEW BRUNSWICK USING U.S. REGULATORY PROCESS TO FIGHT MAINE

Tags:  ENRG EWWT EPET CA 
pdf how-to read a cable
VZCZCXRO7567
RR RUEHGA RUEHQU RUEHVC
DE RUEHHA #0009 0652156
ZNR UUUUU ZZH
R 062156Z MAR 07
FM AMCONSUL HALIFAX
TO RUEHC/SECSTATE WASHDC 1147
INFO RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
RUEHHA/AMCONSUL HALIFAX 1218
UNCLAS HALIFAX 000009 

SIPDIS

SIPDIS

DEPARTMENT FOR WHA/CAN, EB/ESC/ISC, OES/OA, AND L/OES
DOE FOR P&I

E.O. 12958: N/A
TAGS: ENRG EWWT EPET CA
SUBJECT: NEW BRUNSWICK USING U.S. REGULATORY PROCESS TO FIGHT MAINE
LNG PROJECTS


UNCLAS HALIFAX 000009

SIPDIS

SIPDIS

DEPARTMENT FOR WHA/CAN, EB/ESC/ISC, OES/OA, AND L/OES
DOE FOR P&I

E.O. 12958: N/A
TAGS: ENRG EWWT EPET CA
SUBJECT: NEW BRUNSWICK USING U.S. REGULATORY PROCESS TO FIGHT MAINE
LNG PROJECTS



1. (SBU) SUMMARY: In a meeting in Fredericton on March 2, a
senior New Brunswick official told the Consul General (CG) that
the province will continue to challenge the two Maine liquified
natural gas (LNG) terminal projects using the legal avenues
afforded by its intervener status within the Federal Regulatory
Commission (FERC) process. CG expressed appreciation for Premier
Graham's decision to work within the U.S. regulatory process but
stressed the U.S.Government's position that-notwithstanding the
Government of Canada's claims of internal waters-all vessels
have a non-suspendable right of innocent passage into and out of
Passamaquoddy Bay through Head Harbor passage. END SUMMARY.


2. (SBU) After a three day, WHTI-related visit to communities
and ports of entry along the northern portion of the Maine-New
Brunswick border (septel forthcoming),CG stopped in Fredericton
on March 2 to meet with Jim McKay, Deputy Minister for
Intergovernmental and International Relations and Lynn MacKay,
Senior Advisor on U.S. Relations in the North American Division
of that ministry, to discuss recent developments relating to the
Maine LNG projects and WHTI.


3. (SBU) With regard to the proposed Passamaquoddy Bay LNG
terminals, CG expressed appreciation for Premier Graham's
decision to work within the U.S. regulatory process by seeking
and obtaining intervener status with the FERC. New Brunswick's
motion to the FERC to suspend the hearings on the projects,
which cited previous FERC rulings granting similar motions,
showed that the province was willing to work within the rules of
the system to defend its interests. Standing in stark contrast
to New Brunswick's approach is the Canadian federal government's
efforts to short-circuit the U.S. regulatory process altogether.
CG also stressed the USG's position that-notwithstanding the
GOC's claims that Head Harbor passage constitutes internal
waters-all vessels have a non-suspendable right of innocent
passage into and out of Passamaquoddy Bay through Head Harbor
passage.


4. (SBU) Deputy Minister McKay said that Premier Graham had
taken the politically unpopular decision to participate in the
FERC process because it was the right way for the government to
proceed. New Brunswick intends to continue to challenge the LNG
projects using the legal avenues afforded by its intervener
status within the FERC process. The motion to suspend the FERC
hearings is part of this approach. Since New Brunswick accepts
that vessel transit through Head Harbor Passage is under the
sole jurisdiction of the GOC, and since the GOC has declared
(most recently via Canadian Ambassador Wilson's letter to the
FERC) that it will not allow LNG tanker to transit Canadian
waters, the province felt that a motion to the FERC to suspend
the hearings was warranted based on the Long Beach, California
precedent. That said, DM McKay also stressed that the
government had instructed all provincial officials to continue
to cooperate fully with both the FERC and the U.S. Coast Guard
as those agencies worked through their respective processes
relating to the project proposals, especially the environmental
impact assessments.


5. (SBU) COMMENT: It is clear from our discussions with the
Deputy Minister that the New Brunswick government intends to use
whatever legal channels and maneuvers available to it within the
FERC process to seek to prevent the Maine LNG terminal projects
from going forward. Should FERC reject the province's motion to
suspend the hearings, we can expect that New Brunswick, through
its Washington lawyers, will continue to file others in an
effort to tie up the projects with the ultimate aim of defeating
them. END COMMENT.

FOSTER