GEORGES BANK DRILLING ISSUE: CO-EXISTENCE NOT IN THE

UNCLAS SECTION 01 OF 02 HALIFAX 000032

SIPDIS

DEPARTMENT FOR WHA/CAN; EB/ESC/ISC; OES/OMC
USDOE FOR IA (DEUTSCH)

E.O. 12958: N/A
TAGS: EPET ENRG ECON PGOV SENV SCUL US CA
SUBJECT: GEORGES BANK DRILLING ISSUE: CO-EXISTENCE NOT IN THE
FISHING INDUSTRY'S DICTIONARY

REF: HALIFAX 0003; 08 HALIFAX 0073

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1. SUMMARY: Representatives of the fishing industry in
southwest Nova Scotia are adamant that there will be no oil and
gas drilling on Georges Bank. They contend that rebounding fish
stocks and the local economy which depends on the fishery will
be adversely affected by any oil and gas activity. They will be
pressing a soon-to-be elected provincial government to take the
necessary steps to continue a drilling moratorium on the
Canadian side of the bank, which is set to expire in 2012. The
representatives also expressed their hope that the U.S. Congress
will likewise declare the U.S. side of the bank off limits to
oilrigs. END SUMMARY.


2. Consul General and Pol-Econ Specialist met on May 11 with
fishing industry representatives in southwest Nova Scotia to
hear first-hand their concerns over the fate of a moratorium on
oil and gas drilling on the Canadian side of Georges Bank
(reftels). The Bank is a lucrative offshore area located 100
miles off Cape Cod straddling the U.S.-Canada boundary in the
Gulf of Maine. In addition to exploitable fish stocks, the area
also contains an estimated one billion barrels of oil and 5.3
trillion cubic feet of natural gas. The representatives
included fishermen, fishing boat owners, processors and a
business leader who represents five aboriginal communities that
now have a commercial interest in the fishery. In voicing their
opinions, they acknowledged that in theory it might be possible
for the fishing and oil and gas industries to co-exist, as they
do in places such as Norway. However, they contend this cannot
be the case on Georges Bank. They argue that the Canadian
portion of the bank is simply too small to accommodate fishing
vessels and drill rigs, plus the number of support vessels
attached to the drilling activity. One fisherman said the
exploitable area is only 40 miles wide and is like a small city
that gets crowded very quickly when numerous fishing boats are
out there. While the potential overcrowding is an important
part of their argument, their paramount objection is their
deeply held conviction that exploration and drilling would do
irreparable harm to the environment and disrupt a rebounding
fishery that continues to underpin the economy of southwest Nova
Scotia.


3. Several of the attendees remarked how the health of numerous
transboundary fish stocks have rebounded in recent years,
proving scientists' contention that the Bank supports one of the
fasting growing and richest biomasses in the world. This
re-growth in the stocks only came about after they were almost
fished to extinction, a development that prompted New England
and Nova Scotia industry reps to work on cooperative strategies
to restore the stocks. Now, as the representatives pointed out,
fishermen and processors are reaping the benefits of that joint
stewardship and they want to ensure that the prosperity they are
enjoying today continues, not only for them but also for
subsequent generations. They see the future of the fishery as
critical to their cultural prosperity as well. This area of
Nova Scotia is home to generations of French-speaking Acadians
who have fished these waters for hundreds of years. With
assimilation into the overwhelming English culture of North
America an ever-present threat, they assert that they need a
viable fishery to ensure the survival of their small Acadian
seaside communities and their unique cultural heritage.


4. While acknowledging that there was little new in their
arguments, the representatives were very appreciative of the
opportunity to personally outline their case. They also used
the meeting to voice their hope that the U.S. Congress would
enact a moratorium on the U.S. side of the bank, or at least
declare it off limits to the oil and gas industry. They left
little doubt that they are not prepared to soften their
anti-drilling stance, especially the aboriginal business
representative who made it clear that his communities were just
starting to enjoy this new revenue source and would be loath to
put it in jeopardy. (So great was his concern for the CG to
hear his views, that he drove eight hours from his home in Cape
Breton to attend the meeting.)


5. In contrast to the anti-drilling forces, there is a less
vocal, but equally adamant pro-drilling side to this debate.
The province's oil and gas sector, supported by some business
leaders in southwest Nova Scotia, want to see the oil and gas
industry be given a fair chance, especially since there would be
significant economic impacts to any new offshore activities.


6. COMMENT: As reported reftels, the Nova Scotia provincial
government will have to give consideration to both sides of this
debate when deciding on the future of the moratorium. However,
the issue is temporarily on hold pending the outcome of a June 9
provincial election. All the political parties have been

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careful to avoid bringing up the issue on the campaign trail,
but for the party that emerges the victor, there will be little
time to weigh the arguments, as there is a June 2010 deadline
for the province to indicate how it will proceed on the
moratorium. Given post's first-hand exposure to the sentiment
of the fishing industry, it is clear that there can only be one
outcome that will satisfy the fishing industry representatives:
No co-existence policy and definitely no rigs on Georges Bank.
END COMMENT.
FOSTER