Nova Scotia Receives First Crown Share Adjustment Payment

Nova Scotia has received its first Crown Share Adjustment Payment from the government of Canada.

A total of $234.4 million was transferred today, Sept. 5, representing the province's entitlement to Crown Share Adjustment Payments for oil and gas projects in the Nova Scotia offshore for 2007-2008 and prior years.

"We've known this day was coming since we announced resolution to the Crown Share back in July," said Premier Rodney MacDonald. "Prime Minister Harper and Minister of National Defence Peter MacKay have shown a willingness to work with our province. This Crown Share payment is a clear indication of that."

An independent panel, chaired by Lorne Clarke, former Chief Justice of Nova Scotia, was formed in late 2007 to study Nova Scotia's entitlement to Crown Share, dating back to federal legislation implementing the 1986 Offshore Accord.

The panel recommended that the government of Canada provide Nova Scotia with $234.4 million for past payments up to March 31, 2008, and payments for future years for the Sable Offshore Energy Project and the Deep Panuke Offshore Project worth about $633 million.

The governments of Nova Scotia and Canada announced on July 13 that they had accepted the panel's recommendations. The payment is part of the work underway to implement the details of the Crown Share agreement.

"This is a great example of what two governments can do when they work for the benefit of all concerned," said Mr. MacKay. "It's satisfying to see the results of successful negotiations finally translated into something tangible that is already making a difference for the province."

The province is committed to putting $164.1 million of the total $234.4 million on the surplus, to reduce the debt. The amount is estimated to save around $4.5 million in annual debt servicing costs for 2008-2009.

The remaining $70.3 million will help fund offshore research, protection of Nova Scotia's natural spaces, and university infrastructure.

"These Crown Share funds will benefit Nova Scotians in many ways for years to come," said Finance Minister Michael Baker. "They will help us reduce our debt and also leave a legacy for our education system, our environment, and the long-term prospects of our offshore."

The Department of Finance will arrange to transfer the funds to the relevant organizations as soon as possible.

The province is forecasting a $95.1 million Crown Share payment for the 2008-2009 fiscal year.