Newfoundland, Nova Scotia resolve boundary dispute

A ruling by a federal arbitration panel has settled the dispute over ownership of an offshore area between Newfoundland and Nova Scotia. The ruling delineates a boundary that divides ownership of the area between the two provinces and opens the way for oil and gas exploration.
This decision eliminates the ownership issue and opens the disputed area of the Laurentian sub-basin for exploration. While ownership was being contested, exploration activity in the surrounding region was curtailed.
Premier John Hamm of Nova Scotia and Premier Roger Grimes of Newfoundland reportedly agreed in a telephone conversation that the resolution to the dispute is behind them, and that it benefits both provinces to move forward with exploration.
The federal tribunal ruled in May 2001 that there was no offshore boundary dividing the two provinces. In the ruling, issued April 2, the tribunal rejected the conflicting claims made by Nova Scotia and Newfoundland, drawing its own boundary and splitting the formerly disputed territory in two. Nova Scotia Economic Development Minister Gordon Balser explained, "The work commitment on that block is about C$13 million. The total work commitments in our offshore area are more than C$1.5 billion. It's important to keep this in perspective. Nova Scotia has retained the overwhelming majority of exploration activity on its side of the new boundary line."
Balser noted that the new line will affect only a small portion of one active license offshore Nova Scotia. "The settlement of this boundary dispute should pave the way for more economic development offshore Nova Scotia and offshore Newfoundland and Labrador," Mr. Balser said. "This decision provides clarity to industry and thaws the exploration chill that was affecting activity in a huge portion of our offshore area ? not just in the Laurentian sub-basin."
The resolution of this dispute followed nearly three years of deliberation.