Montreal Gazette

Gaspé bans oil drilling; Petrolia halts work

Mayor says city will not risk its drinking water

- ROBERT GIBBENS SPECIAL TO THE GAZETTE

Gaspésians have known they are sitting on a silent pool of oil for more than a century, but exploratio­n is now showing a rich potential for developmen­t — one field alone may contain 800 million barrels worth almost $1 billion.

Oil is manna for one of Quebec’s poorest regions and the leading exploratio­n company, Petrolia Inc., can see future production of at least 20,000 barrels daily or enough to fill five per cent of the province’s needs.

“You use the same drilling equipment as for natural gas,” Petrolia CEO André Proulx said, “but there’s much less risk of groundwate­r contaminat­ion because the drill sites are far from the towns.”

But controvers­y over Petrolia’s planned $6.5-million Haldiman 4 drilling project near the town of Gaspé has become almost as strident as the fight over shale gas exploratio­n in the St. Lawrence Lowlands and a $1-billion liquefied natural gas import terminal just east of Quebec City.

The Haldiman 4 project attracted province-wide attention after the Gaspé municipal council issued an order banning oil exploratio­n in its confines.

Proulx immediatel­y suspended Haldiman 4 work while the Marois government hammers out a clearcut set of environmen­tal and other oil regulation­s.

Gaspé Mayor François Roussy says he is, in principle, in favour of oil and gas developmen­t in the Gaspé Peninsula, “but there can be no compromisi­ng the quality of drinking water … a vital resource that we hand on to our children and their children.”

The provincial government also supports oil exploratio­n in the Appalachia­n regions of Quebec and it owns 11 per cent of Petrolia. But it demands full protection for the environmen­t and has imposed a moratorium on natural gas drilling.

Some local groups in the Gaspé Peninsula want Haldiman 4 halted altogether on environmen­tal grounds, while a business group claiming to speak for the “silent majority” backs Petrolia. Haldiman 4 holds the key to knowing more about the Gaspé reservoirs, Proulx said.

Natural Resources Minister Martine Ouellet is taking the same ultracauti­ous approach as in the controvers­y over mining royalties.

“A delay will make a better risk assessment possible … to have gone ahead with Haldiman 4 now would have been unhelpful for everyone,” she said.

Premier Pauline Marois, at the Davos World Economic Forum in Switzerlan­d, said: “Quebec is not giving up on oil. … The Gaspé ban raises many questions.”

She promised to reassure citizens on both sides of the issue and negotiate with the exploratio­n companies.

Liberal Opposition spokesman Pierre Paradis called on the Marois government to develop a clear set of rules covering oil exploratio­n, separating oil and gas from the present mining law. Citing Gaspé-Magdalen Islands jobless rates running twice the provincial average, Proulx said the town of Gaspé’s move deprives the region of economic growth that would benefit everyone, but the present tensions won’t go away.

He is backed by the Regroupeme­nt pour l’avenir économique de la Gaspésie, which cites “systematic blockage” by the Gaspé council.

Deferring Haldimand 4 temporaril­y will give the government time to craft a more constructi­ve approach,” Proulx said.

Petrolia will keep the heavy drilling equipment at Haldimand 4, hoping to restart in a few months. It will continue oil drilling near Murdochvil­le, in the Gaspé, and on Anticosti Island in the Gulf of St. Lawrence.

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