Quebec and Newfoundland and Labrador are squaring off for another nasty and counterproductive squabble, this time over the rights to a potentially rich oil or natural-gasfieldintheGulf of St. Lawrence. The 29-kilometre field, quaintly dubbed Old Harry after the nearest settlement, a hamlet on the Iles de la Madeleine, is estimated on the basis of exploratory probes to hold possibly 2 billion barrels of oil or possibly 5 trillion cubic feet of natural gas, enough to supply Quebec's needs for such commodities for a quarter-century.
Both Quebec and Newfoundland are eyeing the field for possible exploitation in the near future, but sharply disagree on who should have the right to do so. They would, of course. Lingering bitterness about the Churchill Falls hydro deal of the 1960s, whereby Quebec got rights to the power produced in Labrador at what subsequently turned out to be a giveaway price, and Quebec's persistent refusal to renegotiate it, plays large in the Newfoundland and Labrador government's vehement opposition to any Quebec natural resources initiative that touches on its provincial interests.
Sometimes at its own expense. Quebec's refusal to sweeten the Churchill Falls deal has stalled potentially rich joint development of further Labrador hydro projects. The same could be said of the Old Harry field on which both appear to have some claim, though Quebec's does appear somewhat stronger. If proximity were the sole factor, Quebec would have a lock on the place in that the Old Harry field lies 80 kilometres off Old Harry town while the Newfoundland shore is 100 kilometres distant. However, an agreement on maritime borders signed by the Atlantic premiers in 1964 puts at least some of the Old Harry field in Newfoundland-Labrador jurisdiction. That line in the water is legally disputed, however, in that it was never formalized by the federal government.
Fortunately, the ultimate decision on who gets to tap Old Harry is up to neither Quebec nor Newfoundland, who can't seem to deal with each other like grown-ups, but rather the federal government, which has claim to all undersea oil and gas deposits off any Canadian shore. It has taken the sensible course of urging the two contesting provinces to negotiate a joint venture, something that would be in both their interest. While Quebec may have a stronger territorial claim, it lacks Newfoundland's undersea drilling expertise acquired by the development of the Hibernia oilfield. Here again a joint venture seems most felicitous.
Ottawa should take the position that whatever lies under Old Harry is a Canadian resource that should be developed in the best interest of all Canadians, not just one province.