Oct 3 (Reuters) - The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.


* British Columbia Premier Christy Clark has issued a veiled threat to withhold electricity needed to operate controversial oil sands pipelines if the projects do not meet her demands.

* The plan to share buildings for British and Canadian embassies in the future has sparked criticism from those who accuse Ottawa of merging its diplomatic brand with Britain - and questions about whose flag would fly over shared embassies.

Reports in the business section:

* The federal government eliminated the approval of 30-year amortization periods on government-backed mortgages in June - and the decision's impact can now be seen most vividly in the cooling off of Greater Vancouver's market, with sales falling for everything from entry-level homes to luxury houses, Bank of Montreal senior economist Sal Guatieri said Tuesday.

* A group of disabled former Nortel employees who saw their benefits slashed after the company's demise have filed a lawsuit seeking $60-million from the two trust companies charged with administering the onetime telecommunications giant's health fund.


* The 35-acre former Molson Brewery site, once home to Barrie, Ontario's biggest employer, and later the country's largest indoor grow-op, worth an estimated $8.9 million, sits fallow, ragweed sprouting up in the former parking lots.

It is owned by Fercan Developments Inc, whose principal is Toronto property developer Vince DeRosa. But federal prosecutors assert the property is the proceeds of crime; a forfeiture hearing, with its goal of seizing it for the Crown, is under way this week in Newmarket, Ontario.

* Nearly a year after Ontario's air ambulance service descended into scandal, interim president Ron McKerlie says Ornge has stepped "out of the shadows."

Since late last year, Ornge has grappled with a series of revelations about generous executive perks, chronic understaffing, inadequate equipment and excessive delays.


* Air Canada unveiled its plans Tuesday for a new integrated leisure group made up of its Air Canada Vacations division and its new low-cost carrier.

* Automakers reported another strong month of sales in September with cars and trucks flying off dealership lots across the country at near historic highs. Carlos Gomes, Scotiabank senior economist, said the overall market for autos grew 6 percent year-over-year in Canada in September led by a 12 percent surge in sales for import brands.

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