Alton gas company says project may be 'slipping away'

The Calgary company behind the gas storage construction near Alton says it’s concerned the $100 million project is “slipping away” after the McNeil government stepped in to halt part of the work.

AltaGas Ltd. says they’ve been transparent with the province about their plans and will consult with the Mi’kmaq. But the company is losing patience.

“I’m concerned that it’s slipping away for the province,” said John Lowe, executive vice president of corporate development at AltaGas. “It’s an energy future. It’s low, more stable natural gas prices for Nova Scotia homes and businesses.

"I’m also concerned, quite frankly, for Nova Scotia’s reputation as a province that can get things done.”

Energy Minister Andrew Younger dismisses that and says the province has actively promoted the project. The province is refusing to issue a required permit for construction on Crown dyke land until it is satisfied the Mi'kmaq have been adequately consulted.

Younger said it was well within its rights to withhold the permit and only delayed construction work on a dyke so the Mi'kmaq could be properly consulted.

“[AltaGas] began work on land without any permit or without authority from the Department of Agriculture,” Younger said. “So we’re working through that process at the moment, and they actually only applied for a permit about a week ago to do that.”

The project received its environmental approvals seven years ago.  

Lowe says the province is well aware of its plans. It has been negotiating an agreement to use the Crown land for six months.

“We’ve been transparent with the government all the way along on what we’re doing and we believe they have been aware and they’ve concurred with the measures that we are taking,” he said.

AltaGas intends to drill into underground salt caverns, and flush large quantities of salty water generated during the construction process out with the falling tides at the confluence of the Shubenacadie and Stewiacke rivers.

The caverns would be used to store natural gas to hedge against higher prices in the winter.

But the project has been the centre of recent protests, with some worried the discharged brine will pollute the water.

Drill work has continued, but work on the dike has been stopped.

On Wednesday, officials with the Department of Environment, the Nova Scotia Office of Aboriginal Affairs and AltaGas confirmed that permits are being withheld.