There is a settlement in a court-ordered mediation process between the Nova Scotia Government and Paper Excellence, the owners of the idle Northern Pulp mill in Pictou County.

Under the terms of the agreement, the owners will not resume operations of the Pictou County mill. The company will move forward with an independent feasibility study of a potential new kraft mill in Queens County. The feasibility study will take about nine months to complete.

Premier Tim Houston (Communications Nova Scotia photo)

Also a $450 million lawsuit against the province related to the Boat Harbour Act would be dismissed. Regardless of whether a mill in Queens County goes forward Paper Excellence will top up pension plans by $30 million. There’s also provisions to settling its debts with the province

Premier Tim Houston says he’s pleased with the agreement.

If the study finds a new mill in Queens County is not viable, the company will decommission the current site in Pictou County and sell its timberlands.

The settlement agreement is subject to approval by the British Columbia Supreme Court. The court will hold a hearing on the agreement on May 31st.