OTTAWA — While still serving as federal environment minister, Jim Prentice privately told the U.S. ambassador to Canada his Tory government was "too slow" to fight the "dirty oil" label, failing to grasp the magnitude of the Alberta oilsands image problem.

The former Calgary MP also told David Jacobson at their first meeting more than a year ago that he was ready to impose new regulations on the oilsands unless the Alberta government and industry improved their performance.

The revelations are contained in a cable Jacobson sent to Washington DC following his Nov. 5, 2009 lunch with Prentice.

The cable — released by WikiLeaks and posted by a Norwegian newspaper — described it as an "engaging" introductory luncheon during which "Minister Prentice was clearly making every effort to establish a connection with Ambassador Jacobson, outlining his respect for the Administration and his interest in President Obama's 'back story,' persona and goals."

The memo also noted that Prentice is "widely considered to be the most respected member of Prime Minister Harper's inner circle and enjoys Harper's complete trust."

Prentice resigned his portfolio and quit federal politics last month without introducing new regulations on the oilsands. He will serve as CIBC's vice-chairman and senior vice-president starting on Jan. 1, 2011.

According to the cable, Prentice shared with Jacobson his concern about the hit Canada's reputation as a historically "green" country had taken on the world stage because of the negative view of the oilsands.

"Calling himself 'conservative minded,' Prentice said he would step in and regulate the sands if Canada's image in the world gets further tarnished by negative coverage," the cable states. "Prentice did say that he felt that Government of Canada's reaction to the dirty oil was 'too slow' and failed to grasp the magnitude of the situation."

It also said Prentice "made clear" that if industry did not take voluntary measures or if the Alberta government didn't enact more stringent regulations, "he would step in and press federal environmental legislation."

Asked by Jacobson about a possible moratorium on further oilsands development, Prentice was quoted as replying he didn't think it was necessary and that growth to three or four million barrels a day would be sustainable.

The cable said the tone of the meeting was "very collegial" and that Prentice appeared unrushed, focused and interested in getting to know the ambassador.

Prentice reportedly also shared stories about his daughter, his life in Alberta and his love of the outdoors.