Tiny Quebec village faces $1.5M lawsuit for trying to protect its water

A tiny village on Quebec'sGasp Peninsula is facing off against an oil company in a legal battlethat could end up costing the community $1.5 million.

The municipality ofRistigouche Sud-Estis being sued byGastem, a Montreal-based oil-and-gas exploration and development company, for passing a bylaw in March 2013 establishing a two-kilometre no-drill zone near the source of the village's water.

At the time, Gastemhadprovincial permits for exploration in the area, and GastempresidentRaymondSavoiesaid the bylawwas passed without consulting the company.

The trial, which is expected to last 10 days,got underway Tuesday in Quebec Superior Court in New Carlisle, Que. A total of 30 people, including local councillors and experts in municipal law, are expected to testify.

• Ristigouche crowdfunds its defence in $1.5M gas company lawsuit

"The stake is this: Does a municipality have the right to adopt a bylaw towards the protection of the common good without fearing a lawsuit?" Mayor Franois Boulaysaid in an interview Wednesday.

If the village home to only 157 people ends up losing, itwill have a difficult time footing the bill. The $1.5 million in damages sought by Gastem is more thanfive times Ristigouche's annual budget.

"From a citizen'sstandpoint, I can tell you that many people are anxious. They fear losing this trial," Boulaysaid.

Oil company wants 'rights recognized'

Savoie, a Liberal cabinet minister under former premierRobert Bourassa, didn't want to speculate earlier this week when asked if he hopes to get the full amount from the village.

Gastemsold its exploration rightssoon after filing the lawsuit in 2014.

"We will see what will result from the trial, but at least we want to have our rights recognized," he told The Canadian Press.

A legal victory for Ristigouche, on the other hand, would set a precedent that municipalities have the right to guarantee their citizens a healthy living environment, Boulay said.

In 2014, the village launched a fundraising campaign to help payits legal fees. Solidarity Ristigouchehas so far raised more than $281,000 from residents, environmental groups and municipalities across the province.

The village also has the backingof Quebec's FederationofMunicipalities.

Municipalities want stricter limits on oil exploration

Villages and towns across Quebecare hoping the trial spurs the provincial governmentto introduce stricter rules around oil and gas exploration.

Last June, 230 municipalitiesfiled a request with Quebec'sEnvironment Ministryseeking similar protections to those in place in Ristigouche: adistance of two kilometresbetween agas-and-oil company'sinstallations and the sources of drinking water on their territory.

Environmentalists are also watching the case closely. Several dozen protesters gathered outside the courthouse on Tuesday in support of the village.

Environment Minister DavidHeurtelhas saida two-kilometre boundary, like the one inRistigouche, is too restrictive, and restrictions should be evaluated on a case-by-case basis.

A spokesperson for Heurtel declined to comment Wednesday, citing the ongoing court case.

Under current provincial law, passed a year after Ristigouche passed its bylaw, exploration must be at least 500 metres from a water source.