Gas will start flowing today from Nova Scotia to New Englandthrough the new Maritimes & Northeast Pipeline after theNational Energy Board (NEB) conditionally OK’d the start ofCanadian operations late yesterday. Meanwhile, consultationscontinue between Maritimes management and the Union of Nova ScotiaIndians (UNSI), which had sought to block the project.

The billion dollar-plus, 800-mile pipeline was packed andprepared to deliver close to its full capacity of about 530 MMcf/d,with 360 MMcf/d of that destined for the U.S. Today is the deadlineset by the Federal Energy Regulatory Commission for operations tobegin on the U.S. side. The NEB’s “restricted authorization” or”interim temporary leave to open” issued yesterday expires Jan. 20,2000. If the parties have not come to an agreement by then they mayapply to renew the temporary permit, the NEB said.

The agency had held its fire until almost the last possiblemoment before the cross-border pipeline’s authorization from theFederal Energy Regulatory Commission was to run out on the U.S.side. Just before Thanksgiving Day Maritimes sponsors had filed arequest with FERC for an extension until Jan. 1, in case theCanadian approval was delayed. The NEB — eyeball-to-eyeball withthe coldest temperatures to hit the Northeast so far this winter— blinked and allowed the gas to start flowing.

The review centers on a ruling by the Canadian appeals courtthat the NEB and M&NE may have violated a condition of thepipeline’s approval that required an agreement to cooperate onnative impact studies. Much of Atlantic Canada has chosen up sidesin the dispute which has become highly politically charged. The NEBhas said it will receive written proceedings on the dispute overalleged failures to respond to age-old aboriginal rights claims toterritory and self-governing power, but it has backed settlementdiscussions between the parties. “The two parties have informed theBoard that meaningful consultations are taking place, but not yetconcluded,” Tuesday’s announcement said.

The dispute and the court order centered on proceedings thatapproved a lateral to deliver gas locally in Nova Scotia. Since thenthe NEB has approved a second spur to serve customers in theneighboring province of New Brunswick. The board said it “stronglysupports M&NE’s commitment to dialogue and believes the buildingof trust and respect between M&NE and the [Union of New BrunswickIndians] is more likely to occur if the parties arrive at their ownsolutions.” (See Daily GPI, Nov. 30)

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