Nova Scotia Power reaches deal on oil spill

LINGAN, Nova Scotia – Nova Scotia Power reached a compensation deal Sunday with Cape Breton lobstermen affected by an oil spill.

Terms of the deal between the utility and about 25 local fishermen were not released.

“All I can say is that fishermen said the deal is fair and acceptable,” said company spokeswoman Allison Gillan.

Fisherman Clint Fraser, who kept his boat tied up since the oil leaked from a generating station into the ocean Thursday, said fishermen will be compensated for lost fishing, along with damaged equipment.

“It’s just a fair deal for everybody,” he said, adding fishermen won’t be ready to hit the water until Tuesday.

Gillan said the oil cleanup was largely finished by Sunday morning.

“Obviously we’ll continue to monitor the situation,” she said.

The leak occurred when a pressure gauge line broke as bunker oil was being moved to the generating station.

A containment system caught the majority of the oil – more than 130 gallons – but an unknown quantity managed to leak into the ocean through a corroded underground pipe. It then seeped out into the ocean near the plant, located about 10 miles east of Sydney.

Nova Scotia Power repaired the pipe Friday.

Company officials said they now believe more oil leaked from the plant into the ocean than the 130 gallons originally estimated.

“From reports that we’ve gotten from the fishermen and the Coast Guard, we now believe it was probably more than that,” said power plant manager Red Conrod.

The Nova Scotia Environment Department was investigating the spill.