This just in from RDS:

RDS has learned that the forward has refused to withdraw his no-trade, thus preventing his transfer to the Alberta capital.

Wow.

UPDATE: Bob McKenzie has confirmed that Dany Heatley has refused to waive his no-trade clause.  The first lesson here is to never, ever, ever trust a trade report from anyone other than TSN.  Sportsnet and The Score have both gotten it wrong over the past few weeks - that more than anything else has confirmed that TSN is the network to trust.

This really isn't what the fanbase needs.  I've gotten so sick of listening to the self-loathing "everyone hates Edmonton" speech from everyone that I don't even know what to do anymore.  Heatley joins Nylander and Pronger and Lupul and Comrie and all the rest.

Next, if I'm Steve Tambellini I find whoever leaked the names and do the same thing to him that I'm quietly and efficiently doing to Craig MacTavish's doghouse club. 

UPDATE II: From Bob McKenzie (the link above will work):

A lot of confusion has existed because there is a $4 million bonus payment due to Heatley on July 1. It was the understanding of many involved, including the Senators and Oilers, that once the clock struck midnight and turned over to July 1, the Sens would be on the hook for the $4 million bonus payment, which may have been a serious impediment to getting a deal done after midnight.

But as it turns out, the NHL says as long as a Heatley trade is concluded before midnight eastern tomorrow night, the bonus payment allocation can be transferred to the new team.

So, in effect, the Senators have another 24 hours to find a suitable deal that Heatley will approve and NOT be on the hook for his $4 million signing bonus.

I feel it's quite safe to say that whatever deal gets arrived at (if any) it won't include the Edmonton Oilers, given the fiasco that has transpired tonight.

UPDATE III: Again from Bob McKenzie:

Ottawa had agreed to a deal with the Edmonton Oilers on Tuesday night that would have sent Andrew Cogliano, Dustin Penner and Ladislav Smid to the Senators in exchange for Heatley. Heatley was asked to waive his no-movement clause by the Senators but he didn't oblige. Which is not the same thing as an outright or unequivocal rejection.

Good grief.

UPDATE IV: So, I've been a fan of Rick Olczyk, because I loved the idea of having an actual salary framework.  But he has to be feeling a little embarrassed (along with whoever Ottawa's cap-man is) after finding out that this deal has another 24 hours (according to Bill Daly and Heatley's agent, J.P Barry).  Here's what Barry had to say:

Heatley's agent J.P. Barry told Sportsnet.ca late Tuesday night that "it is our position that the [bonus] deadline is not until [Wednesday] night. We believe the [trade] decision does not have to come until that time...  Dany is going to sleep on it."

  Does this mean that Healtey prefers Edmonton to Ottawa but would much rather go to New York?  Probably.

On a lighter note: From the rollercoaster that is Lowetide's comment section:

We're officially in a zombie movie, guys. Bob McKenzie just grabbed a shotgun, gave this trade both barrels right in the chest, and then the trade got back up and buried a hatchet in Jean-Francois Jacques's ACL.

I miss Lord Bob's blog.