SouthShoreNow.ca

John Cunningham
Lighthouse staff

 BRIDGEWATER - Town council has decided to put its support behind Sempra Atlantic Gas company's bid to be the Nova Scotia distributor of gas from the $3-billion Sable Offshore Energy project.

 "It appears Sempra offers the best advantage to Nova Scotia and particularly to Lunenburg and Queens counties," Len Perry, consulting engineer for the South Shore Natural Gas Committee, told council.

 He was asking for council's endorsement of his committee's stand to be presented to the Nova Scotia Utilities and Review Board (NSURB). The board is expected to decide this summer who will get the province-wide distribution rights.

 He said that Sempra's competitor, Maritime NRG, would only pipe the natural gas to 14 of Nova Scotia's 18 counties. Queens, Shelburne, Yarmouth and Victoria counties would not be reached by the pipeline if Maritime NRG were the successful bidder, Mr. Perry said.

 And, he said, under the Sempra plan, a 10-inch pipeline would reach Bridgewater by the year 2003. The Maritime NRG plan would see only a three-inch pipeline reach Bridgewater and that would not be until the year 2005.

 Construction of the Bridgewater pipeline lateral proposed by Maritimes NRG would only take place if the Michelin tire company signed up as a customer, he said. Sempra will build the lateral, regardless of anyone signing, said Mr. Perry.

 Mr. Perry, who is from Queens County, said the Sempra proposal would see a six-inch pipeline extend past Bridgewater to Liverpool and the remainder of the South Shore. The Maritimes NRG pipeline would not go past Bridgewater, he said.

 The provincial government has come out as stating the natural gas must reach all 18 Nova Scotia counties. "One of the proposals falls quite short," said Mr. Perry.

 He said that Maritime NRG "wants to get the business and then build the lines. The Sempra package says 'we'll put the lines in place and work hard to get your business.'"

 Mr. Perry said his committee does recommend to the NSURB that it "put teeth in regulations" that would penalize Sempra if it decided to back out of the deal. "What happens if they decide they are not getting the gas loads they want?

 "We don't want the opportunity for Sempra to back out," he said. "This appears to be the only caveat in the program that leaves uncertainty."

 But, he said, Sempra proposes spending $300 to $400-million to build the pipeline. "Once it's in the ground, they can't take it with them."

 Councillor William Rhodenizer offered his support for Sempra. "They're the only company that's setting down the regulations set by the province," he said.

 Councillor Beverlee Brown agreed. "The province did come out and say every county in Nova Scotia gets it. I'm coming out in support of Sempra, They've said they'll reach all of Nova Scotia."

 Councillor Richard Lord said he was "not comfortable with a blanket endorsement" for Sempra.

 He had urged council to temper its support for Sempra by stating only that "on the basis of the information to date, Sempra seems to be the most favourable."

 Councillor Ken Wootten said he favoured Sempra as the other proposal excludes Queens, Liverpool and Yarmouth counties. "I have complete confidence in them," he said.

 Councillor David Walker said "I believe it's dangerous to select a company at this time."

 Mr. Perry made a similar presentation May 4 to Lunenburg Municipal Council but a decision whether or not to endorse the gas committee's presentation was not made that day.

 Councillor Merle Kaulback expressed concerns about specifications in the distributor's applications concerning the competitive pricing of gas and fuel oil. "I don't like natural gas prices based on oil," he said. "If Maritime NRG gets it, they're the same person that controls the price of oil," he said.

 Maritime NRG is a partnership of Irving Oil and Westcoast Energy.

 Asked about the Union of Nova Scotia Municipality's (UNSM) position on the competition, executive member Don Zwicker noted the organization does not support one proposal over another. "We have to work with whichever one gets it," he said.

 "I think that the process should run its course and take the high ground," said Mr. Zwicker, a member of Lunenburg Municipal Council.

 Municipal warden Jack Wentzell said the Maritimes NRG proposal "is not a good deal for the South Shore."

 The Town of Lunenburg has already thrown its support behind Sempra Atlantic Gas, a subsidiary of the United States utility giant Sempra Energy.

 Lunenburg municipality was expected to state its position May 10.

 Nova Scotia Premier Russell MacLellan, meanwhile, continues to reiterate the view that the natural gas must reach the entire province.

 "We have in place a distribution arrangement that says within seven years of natural gas coming ashore, it will reach all 18 counties," he said at a Liberal nominating meeting May 5 at Oakhill.