N.S. minister fears deposit won’t cover removal of bankrupt tidal firm’s moorings

HALIFAX — A Nova Scotia cabinet minister says the cost of removing huge moorings abandoned in the harbour entrance of a Bay of Fundy community likely won’t be covered by a deposit left by a bankrupt tidal energy firm.

Natural Resources Minister Tory Rushton told reporters today the $20,000 security deposit from Occurrent Power is “not a lot of money,” and he fears it won’t be enough to carry away the concrete-filled railcars used as anchors.

The railcars with chains attached were left in the staging area near Walton, N.S., after the company declared bankruptcy Aug. 29.

The province says it is in the process of hiring a company to install buoys to mark the four boxcars that become submerged at high tide, and Rushton has promised they will eventually be removed.

Transport Canada determined last month the train cars pose a navigational hazard to boaters because when the tides rise in the channel, they are just metres beneath the surface.

The trustee overseeing the company’s bankruptcy has said the provincial government is expected to pay to relocate the railcars and would then become a creditor in the bankruptcy proceedings.

A statement sent to creditors says the firm has $35.7 million in liabilities and about $14 million in assets.

A spokeswoman for the Department of Natural Resources said last month that the $20,000 security deposit was established in 2022 and was deemed sufficient at that time.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press