CEP Communications, Energy and Paperworkers Union of Canada

This is a strategic moment for Canada's energy policy. For the first time in almost two decades of continental energy policies, our National Energy Board (NEB) will reconsider whether this country's publicly owned natural resources should be protected, and used for Canadian development first, before being exported to the United States.

This remarkable development arises over the future of Atlantic natural gas, off the coast of Nova Scotia. The companies that were producing and transporting natural gas have told the Province of New Brunswick and Quebec that they are not interested in providing Canadians with natural gas from Scotian offshore wells because they would rather sell it into the United States.

The Province of New Brunswick responded by applying to the NEB for a ruling that Canadian needs be identified and protected before allowing unrestricted exports of gas to the US. The hearings into this application are opening in Fredericton, NB on July 15.

CEP will join with the Provinces of PEI, NFLD and Quebec in supporting New Brunswick. But arraigned against this application is the vitriolic opposition of the oil and gas industry in Canada, led by The Canadian Association of Petroleum Producers.

There are many important reasons why New Brunswick's application must succeed. New Brunswick needs access to Scotian offshore natural gas to provide stable household heating fuel to up to 70,000 households in the province. New Brunswick industry, particularly the forest industry, needs long term, affordable natural gas to remain viable - especially when these industries are called upon to reduce greenhouse gasses. Atlantic Canada generates much of its electricity by burning coal and oil, but if Canada is to meet its commitments to reduce greenhouse gasses under the Kyoto protocol, we must convert coal and oil to natural gas and clean energy sources. New Brunswick and Quebec have an agreement to build a pipeline from New Brunswick to Quebec where this natural gas would provide needed heating fuel and raw material for the petrochemical industry.

But in spite of these Canadian needs, American owned Duke Energy is refusing to supply Canadian needs from the Deep Panuke well scheduled to come on-stream from the Scotian offshore in 2005. It wants to sell this gas to the US through short term export permits, without any public scrutiny or questioning, so that it can speculate on US gas prices and exploit that country's growing energy crisis.

These are complicated issues, but the bottom line could not be clearer. Scotian offshore natural gas is a publicly owned Canadian resource, and it should be used for economic development and environmental sustainability in Canada. The New Brunswick NEB application shows that Canada can not allow itself to be completely assimilated into a continental (US) energy market. We must have a Canada-First energy policy.

CEP's Atlantic Vice President Max Michaud, our National Special Projects Department and our Counsel, trade lawyer Steven Shrybman, will be in Fredericton this July to focus these strategic issues for Canada. We will report to you on the proceedings, and we will post information on our web site at CEP.ca.

CEP, the Council of Canadians and the Conservation Council of New Brunswick will host a public forum in Fredericton.

We urge you to contact your members, friends and associates in the Fredericton region to attend this meeting.

We also urge you to express your support for a Canada-First energy policy by writing to Federal and Provincial ministers. These politicians need to know that Canadians have not given up on our country, and that we understand the critical importance of our natural energy resources to Canada's future.

Please write to:
Minister Herb Dhaliwal Natural Resources Canada
580 Booth Street, 21st Floor
Ottawa, Ontario, K1A 0E4 Telephone: (613) 996-2007 Fax:(613) 996-4516 Email address: dhalih@parl.gc.ca
The Honourable Bernard Lord
Premier of New Brunswick
P.O. Box 6000
Fredericton, NB, E3B 5H1 Telephone: (506) 453-2144 Fax: (506) 453-7407 Email address: premier@gnb.ca

If you would like further information about these issues and CEP's Canada-First campaign, please contact Fred Wilson, CEP National Special Projects, 613 230-5200.