Stalled Alton natural gas storage project getting 2nd look in Nova Scotia

A $100-million natural gas storage project planned for central Nova Scotia is about to get a second scientific review to satisfy environmental concerns of the Mi'kmaq.

The review is key to getting provincial government approval to move the stalled project forward.

"Once that is complete, we will be in a better position to sit back down and have those negotiations," said Energy Minister Michel Samson.

Last fall, Nova Scotia shut down construction on a portion of the Alton natural gas storage project near Stewiacke by withholding environmental permits. The government was responding to Mi'kmaq chiefs who had demanded the province consult them on the project.

As part of those consultations, the deadline closed on April 17 on a request for proposals for a third party review of the scientific evidence surrounding the Alton project.

The request for proposals was issued by the Kwilmu'kw Maw-klusuaqn Negotiation Office, which deals with governments on behalf of the Mi'kmaq.

'Raised numerous questions'

The request for proposals casts doubt on federal oversight.

"The Mi'kmaq of Nova Scotia raised numerous questions and significant concerns about the analysis and conclusions of the proponent and Fisheries and Oceans Canada in relation to potential impacts to the Shubenacadie River, specifically to fish and fish habitat," the document states.

AltaGas Ltd., through a subsidiary, is drilling three large underground salt storage caverns to hold natural gas. A brine byproduct will be pumped through a pipeline and discharged into a river system 12 kilometres away.

The storage capacity offers the prospect of rate relief for thousands of Nova Scotia natural gas customers who have experienced huge price spikes during winter months in recent years.

"We look look forward to having the support of the KMK and the Mi'kmaq community to have this project move forward," said Samson.

"Everything has been frozen at this point in time until such time as discussions are completed."

90 days to report back

The request for proposals says the consultants will review existing information, including methodology used, the data collected, the interpretation of the data, and reports and laboratory analysis undertaken by the proponent and Fisheries and Oceans Canada.

Once the contract is awarded, the consultants have 90 days to report back.

"We are now in the process of evaluating and selecting a successful bidder," Crystal Dorey, a spokesperson for the Kwilmu'kw Maw-klusuaqn Negotiation Office, wrote in an email to CBC News.

"We don't have any timelines for the review, as that will be determined by the selected proposal and discussions with the successful candidate."

AltaGas Ltd. declined to comment.

Another of its subsidiaries — Heritage Gas — is currently before Nova Scotia government seeking approval for the rates it will charge customers for gas eventually stored at Alton.