News Release Archive

Nova Scotia must receive maximum royalties and employment
benefits if natural gas is to be developed off its coast, Premier
John Savage said today.

The premier will stress those points should the issue of energy,
including the distribution of natural gas in Canada, be discussed
at next week's annual premiers' conference in Alberta.

"Nova Scotia is not prepared to accept a situation where the
province would receive less than acceptable royalties or the jobs
normally associated with such a massive project. We will also not
tolerate any interference that might delay the startup of
offshore natural gas production."

A consortium led by Mobil and Shell has filed a development plan
for a $2 billion offshore gas project expected to produce 400
million cubic feet of gas a day. A further $1 billion will be
needed to build a pipeline to move the gas to markets in Canada
and the U.S.

"Market forces and regulatory agencies such as the National
Energy Board will ultimately decide on issues such as gas
transportation routes and gas prices. Nova Scotia's position is
that this province receives maximum benefits. If we don't, then
the gas might as well stay in the ground," he said.

Nova Scotia is counting on the hundreds of jobs associated with
the offshore project and pipeline development.

Mobil and its partners are currently engaged in a pre-engineering
program and $25 million seismic project. The consortium expects
to make a final decision on whether the project goes ahead in
1997 with the first gas coming ashore at the turn of the century.


Contact: David Harrigan  902-424-6600

trp                    August 14, 1996 - 2:35 p.m.