Wells rapped for speaking out against oil board

A St. John's politician renowned for controversial stands has landed himself in trouble with the board that manages the oil industry off Newfoundland's east coast.

Andy Wells, the mayor of St. John's and the province's representative on the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB), crossed a line with recent comments in an industry magazine, says Max Ruelokke, the board's chair and chief executive officer.

In the March edition of Oilweek magazine, Wells said he believed the board had not properly handled a proposal for the Hibernia South development, and even suggested the board was "incompetent."

On April 27, Ruelokke sent a letter to the federal and provincial natural resource ministers, alleging Wells violated conflict of interest guidelines.

"Such comments speak to the integrity of the board and are clearly inconsistent with the principle that members shall act in good interests of the board in a manner that conserves and enhances public confidence and trust," Ruelokke wrote.

Ruelokke said Wells had not expressed his concerns on Hibernia South prior to the vote.

The CNLOPB approved a plan by Hibernia's partners to expand drilling into adjacent reserves, although the Newfoundland and Labrador government in January halted that progress, and instead asked for more information on things such as industrial benefits.

Wells, however, told CBC News he was the only board member to vote against the Hibernia South proposal, and that he also has a right to speak freely about it.

"He can get stuffed on that," Wells said.

"He's not going to be telling me how I'm going to respond to any issues that come before this board. I'm not going to stand by and allow some bureaucratic hack to tell me what I can and cannot say on matters of public interest," he said.

Premier Danny Williams nominated Wells to the board as the province's delegate after losing a high-profile battle with the federal government to have him installed in the top position.

Ruelokke went to Newfoundland Supreme Court last year to have his appointment upheld, after Williams had refused for months to sign off on it. Williams, who criticized the decision in that court case, had frequently described the board as being ineffective in dealing with oil companies.

An official in the provincial natural resources department characterized the dispute as an internal matter between Ruelokke and Wells.

However, a spokesperson for federal Natural Resources Minister Gary Lunn said the allegations are very serious, and that federal officials are looking into the matter.

Under the board's rules, the two levels of government must agree if Ruelokke's concerns warrant disciplinary action.