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Viewing cable 07HALIFAX9, NEW BRUNSWICK USING U.S. REGULATORY PROCESS TO FIGHT MAINE

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Reference ID Created Released Classification Origin
07HALIFAX9 2007-03-06 21:56 2011-04-28 00:00 UNCLASSIFIED Consulate Halifax
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 
 
 
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