Harper stands on Hebron sidelines

Prime Minister Stephen Harper has opted not to take sides in a dispute between Premier Danny Williams and the oil companies who say the premier's demands prompted them to idle the Hebron oil megaproject.

Harper made his first visit as prime minister to Newfoundland and Labrador Wednesday, which was centered around an announcement to restore regional forecasting services in Gander.

• FROM APRIL 12, 2006: Made-at-home forecasts returning: Harper

Williams is looking for federal support in reviving negotiations on Hebron, which the partners say is dead. Work on the project was shelved earlier this month after benefits negotiations collapsed.

Williams had been looking for an ownership stake in the project as well as a richer royalty regime than had been in the case in the three fields now in production on the Grand Banks.

However, Harper indicated during his stop in St. John?s that he will not intervene in the Hebron impasse.

"We've learned in the past that it?s best to keep a stable investment climate in the oil and gas business, and that's the general approach that the government of Canada will take," Harper said.

"I think it's important that we respect any property rights and we make sure anything we do doesn't expose the Government of Canada or the taxpayers of Canada to significant liabilities."

Williams has said that he is prepared to introduce "fallow field" legislation, which would set time limits on how long a company can own development rights on an offshore field without acting.

Williams has said he would introduce such a law – which would require federal support – only if a variety of other options don't work. Those options include purchase of the Hebron stake of ExxonMobil, the company Williams says is behind the impasse.

• FROM APRIL 11, 2006: Williams seeks Harper support on Hebron impasse

Even as his government researches fallow field law, Williams said he was not disappointed by Harper's comments.

"When all other avenues have been exhausted, if that's the only alternative then we'd be making a direct approach to the federal government," Williams said.

"But I won't be putting the prime minister in that spot today."

Williams also did not get a commitment on an early retirement package for fisheries workers, which he had identified as his top priority for his talks with Harper.

• FROM APRIL 12, 2006: Williams seeks federal fish aid help

John Crosbie, a cabinet minister in the Brian Mulroney government, said Williams needs to tread carefully.

"We're hoping to get the companies to come in here and spend hundreds of millions of dollars in explorations so we can't be too belligerent if we want to achieve that," Crosbie said.

Meanwhile, at Confederation Building, the Hebron issue was again raised at the legislature.

Opposition House leader Kelvin Parsons raised concerns from an article in the Globe and Mail, which has said Williams intends to expropriate fields from offshore companies. (The government has insisted it is not pursuing expropriation.)

Parsons asked Natural Resources Minister Ed Byrne if the government was concerned about what a trade expert called a "slam dunk" for ExxonMobil under the North America Free Trade Agreement.

"I'm glad to see the opposition is taking advice from the Globe and Mail," said Byrne.

"We don't – we take it from our own internal and external advice."