U.S. says Canadian position on LNG tankers is “inappropriate”

The United States has called Canada’s decision not to allow Liquid Natural Gas (LNG) tankers through Head Harbour Passage en route to Maine sites on Passamaquoddy Bay “inappropriate.”

The response has come from the U.S. State Department and the Federal Energy Regulatory Commission (FERC).

In February, Canadian Ambassador Michael Wilson sent a letter to FERC Chairman Joseph Kelliher stating, “Given Canada’s sovereignty over our waters, and due to the proximity of the proposed projects to the Province of New Brunswick, the local Canadian communities have expressed strong concerns to my government about potential environmental, navigational and safety risks of the proposed projects. Canadian citizens have told my government that they do not want to see LNG tankers transiting the Head Harbour Passage.”

In a March 12 letter to Maine Sens. Olympia Snowe and Susan Collins, Jeffrey Bergner, Assistant Secretary of State for Legislative Affairs, said, “The Department of State and other U.S. agencies also have made clear to Canada, relevant Canadian officials and other stakeholders that any potential attempts to short-circuit the FERC process are inappropriate. This message has been passed at the highest levels to Canadian federal and provincial authorities. In making these points, including on the margins of the February 23 Security and Prosperity Partnership meeting in Ottawa, we have noted the inappropriateness and the potential value of Canada and the relevant provinces participating in the FERC process.”

Bergner continued, “We have also underscored privately to Canadian officials — and asserted publicly as well — that it is our firm position that, though Canada may adopt laws and regulations in respect of the safety of navigation and the regulation of maritime traffic, all vessels enjoy a non-suspendable right of innocent passage into and out of Passamaquoddy Bay through Head Harbour Passage. This is guaranteed by the international law of the sea as reflected in articles 21 and 45 of the Law of the Sea Convention.”

Snowe and Collins had contacted the State Department on Feb. 1, 2007 to express their concern over the Canadian declaration.

For their part, the two Senators issued a joint statement supporting the State Department’s position.

Canada, however, does not intend to back off from its stated position, according to Member of Parliament Greg Thompson, Canadian Minister of Veterans Affairs who represents New Brunswick in the federal Cabinet and whose district adjoins the proposed LNG sites.

“We are aware of this latest letter and the U.S. State Department’s position,” Thompson said. “However, our position is unchanged. We will not permit LNG tankers to enter Passamaquoddy Bay through the Head Harbour Passage, and we are prepared to defend our position using all legal and diplomatic channels.”

In a related development FERC Chairman Kelliher wrote to Ambassador Wilson on March 2 asking for more information from Canada and adding. “Because neither Quoddy Bay nor Downeast LNG have amended or withdrawn their applications, the FERC staff is continuing the process of preparing an environmental impact statement (EIS) for each project that will address the environmental impacts and the maritime safety and security of the projects. The US Coast Guard Captain of the Port, Sector Northern New England, is preparing a Waterway Suitability Report as to the waterway to accommodate LNG marine traffic.”