News release

Existing Boundary is Fair and Equitable

Petroleum Directorate

The line dividing Newfoundland and Labrador from Nova Scotia represents an equitable offshore boundary as required under international law. This is the principle put forward by Nova Scotia's legal team to the tribunal arbitrating the interprovincial dispute today in Fredericton.

"Equitableness is the dominant consideration in international law," said Yves Fortier, the lead counsel for Nova Scotia at the hearings. "All other considerations are subordinate."

"The existing line is the most accurate possible expression of what the parties considered to be a reasonable, fair and equitable boundary of the areas," he said. "Nova Scotia has always understood that the line dividing its offshore area from that of Newfoundland and Labrador was settled long ago, in fact if not in law."

Nova Scotia's legal case was publicly disclosed on the opening day of the second round of hearings in the dispute. After Phase 1, the arbitration panel ruled that Nova Scotia and Newfoundland had no legally binding agreement on the boundary. However, it also said that it would consider the conduct of the parties when setting out to draw a boundary line in Phase 2.

Mr. Fortier said Newfoundland and Labrador is now trying to disown the boundary line it has respected since the Eastern provinces struck an agreement 37 years ago.

"This is the same line that Newfoundland and Labrador negotiated in good faith in 1964 -- the same line that it has respected in practice ever since. Newfoundland's attempt to seize more territory is not consistent with the agreement it struck not only with Nova Scotia, but also with New Brunswick, Prince Edward Island and Quebec."

The Laurentian sub-basin is an offshore area that may contain significant oil and gas resources. Newfoundland's proposed boundary line would put almost the entire sub-basin in that province's territory.

The arbitration tribunal is scheduled to rule by the end of March next year on how the boundary will be drawn to divide the offshore areas for petroleum exploration and development.

Gordon Balser, the minister responsible for the Nova Scotia Petroleum Directorate, said resolving the boundary dispute will be positive for both his province and the province of Newfoundland and Labrador.

"Both provinces need clarity so that oil and gas activities can go forward in the area," Mr. Balser said. "Our two provinces share a common interest in many other east coast energy issues. Settling the boundary will help us focus on advancing these interests."

Nova Scotia's presentation before the tribunal represents about three years of work by government officials, legal experts, historians, cartographers, hydrographers and others.

Mr. Fortier, of the national law firm Ogilvy Renault, is a former Canadian ambassador to the United Nations. Two Dalhousie University law professors -- law school dean Dawn Russell and Phillip Sanders -- are on the Nova Scotia team. Cartographer David Raymond and historian Brian Cuthbertson, both Nova Scotians, are also on the team.