Companies call for oilsands development freeze

For the first time, major oil producers are calling on the Alberta government to introduce a partial moratorium on oilsands development in the province's north.

Nine energy companies — including Petro-Canada, Suncor and Shell Canada — signed a private letter last month asking the province to freeze land lease licences until 2011 in three areas around Fort McMurray that have not yet been developed.

The provincial government sells the licences to allow companies to find and produce crude.

"Further granting of new surface and sub-surface rights would continue to reduce the available options for the establishment of new conservation areas that would serve to accomplish a balanced suite of regional outcomes," reads the letter, sent by the Cumulative Environmental Management Association.

Conservation areas

The group is made up of 46 industry, government and aboriginal members working on environmental issues in the Regional Municipality of Wood Buffalo.

"The whole framework is to ensure that there's sustainable development in the region, to make sure that we manage the effects of development and ensure that cumulatively we can retain resources as well as allow economic development," explained Shell spokeswoman Judy Smith.

The missive is also signed by Environment Canada and environmental group Pembina Institute.

But at least four major companies that are a part of CEMA, including Encana and Canadian Natural Resources, rejected the call for a partial moratorium, with Syncrude abstaining from taking a position.

'Governments do not control the economy.' —Alberta Premier Ed Stelmach

At a campaign stop in Calgary on Monday, Alberta Premier Ed Stelmach said he's not surprised by the recommendation but pointed out that support for it is not unanimous.

"Governments do not control the economy," he said. "The last time the economy was controlled by a government was back in the '80s, and it was the federal Trudeau Liberals that I ended up paying 22 per cent interest rates … We're not going back to those dark days."

In the past, Stelmach has said the government shouldn't "touch the brake" of the provincial economy.

He also said the government will not respond until CEMA finalizes its recommendations which are due in June.