Oil and gas, regulation and negotiation: A study of the performance of the government of Nova Scotia in negotiating an offshore regulatory compromise

Applying negotiation theory, the performance of the Government of Nova Scotia in negotiating two offshore oil and gas regulatory compromises with the Government of Canada is studied. Theory is organized into three areas of discussion: (1) characterizing process; (2) preparation; and (3) strategy. The initial compromise replaced a parallel licensing system that failed to challenge the dominance of a vertically-integrated industry. The Province failed to plan concessions prior to the initial negotiation, and accepted an agreement heavy on Provincial revenue and Crown rights, but light on Provincial regulatory control. In 1986, the Province negotiated a second compromise, but with minimal latitude, and was forced to concede authority to an independent board. The result has been that the Province has never been able to regain the regulatory control conceded in 1982, which has since weakened the Province's overall ability to pursue objectives in the offshore.