Minister Denies Appeal of Onshore Oil Exploration Approval

Petroworth Resources Inc. can proceed with the drilling of an exploratory oil well in Lake Ainslie, Cape Breton.

Environment Minister Sterling Belliveau announced today, Dec. 20, he has upheld the industrial approval issued in July 2011.

"I have carefully reviewed the grounds for appeal and there wasn't sufficient evidence to support overturning the approval," said Environment Minister Sterling Belliveau.

The review found that the Department of Environment:

• considered and incorporated community input as part of the approval
• thoroughly considered the location and nature of the proposed activity
• ensured there were terms and conditions in place to protect the environment and human health
• the district manager was formally delegated to make decisions on behalf of the minister.

PetroWorth applied in October, 2010 for approval to drill an onshore oil exploration well in the west Lake Ainslie area. The application required separate approvals from the Departments of Environment and Energy.

The Department of Energy approved the company's application for an authority to drill on Sept. 20. This permits the company to drill a vertical exploration well between 1,200 and 1,500 metres. It does not include hydraulic fracturing.

The Department of Environment approved PetroWorth's industrial approval application on July 29. It contains terms and conditions to protect the environment through the construction, drilling and remediation phases of the project.

The Margaree Environmental Association filed all the necessary documents for an appeal on Oct. 18. The department acknowledged receipt on Oct. 21 and the Environment Minister had 60 days to issue his decision.