Quebec steps in to mediate Gasp's oil drilling standoff

The Quebec government is stepping in to help mediate a quarrel betweena petroleum exploration companyand the Town of Gasp, which has brought planned drilling to a halt with a new bylaw.

Quebec-based Ptrolia was supposed to begin drillingat the Haldiman 4 well last Tuesday.

'We will look at concrete scientific and social [data].' Quebec Premier Pauline Marois

But the well is just 350 metres fromsome Gasp residences, whichmeans drilling operations would contravene a bylaw adopted by the town last December.

Theregulation forbids companies from drilling within 10 kilometres of the town's water supply and at least two kilometres from any town well.

Gasp is located on the shores of the Saint-Lawrence River on the Gasp peninsula, and Mayor Franois Roussy said the town is worried about the impact drilling could have on water sources.

Ptrolia's president, Andr Proulx, said his company is losing $50,000 each day the drilling is delayed.

He said the exploration program is an important economic stepping stone for Quebec and for Gasp's economy, but the company will abandon the region if no agreement can be reached with the town.

Proulx met Natural Resources Minister Martine Ouellet on Friday, and Ouellet said she understands theeconomic benefits that oil drilling could bring to theregion andto the province, but shealso recognizes the importance of protectingwater resources.

"We want to work in the next few days on a solution with the company, with the municipality and with the three ministers of the government the minister of natural resources, environment and the minister responsible for the region of Gasp."

Environment Minister Yves-Franois Blanchet has also expressed his support for Gasp's position but said he believes the town and Ptrolia will come to an agreement.

Quebec Premier Pauline Marois said Thursday she is committed to solving the standoff between the two parties.

"Can we ask more from Ptrolia? Does the municipality have reasons to be worried?" she said. "We will look at concrete, scientific and social [data]... If there are real problems, what can we do to solve them?"

A meeting is planned for next week which the three cabinet ministers, town officials and representatives of Ptrolia are all expected to attend.