By Steven McKenzie Highlands and Islands reporter BBC Scotland news website

A rig in the Cromarty Firth. Picture by Iain Maclean

The Cromarty Firth is steeped in legends of giants.

According to local myth, North and South Sutor were two who lived on the distinctive headlands that mark the entrance to the firth.

However, the Nigg fabrication yard on its northern shores was a true giant in terms of employment and the economy.

Highland Council is leading a series of talks on how to breathe new life into the rundown site before it falls into disrepair.

The yard was built during the 1970s to service the construction and repair of North Sea oil and gas rigs and platforms.

It is a sprawling 238 acres (96.14 hectares) site of monstrous warehouses, a dry dock and quayside.

At its height, according to Highland Council figures, the yard provided for 5,000 highly paid jobs and was worth �100m-a-year to the Highlands economy.

But its success was closely tied to the oil and gas boom of the 1970s and 80s and most of the site has stood empty since 2002. It was offered for sale in 2005.

The yard has been in an almost complete state of limbo since.

A report by Highland Council's director of planning, John Rennilson, presented to councillors in August outlined the sticking points.

FIRTH OF GIANTS The Sutors of myth were shoemakers who shared tools by throwing them to each other across the narrow entrance to the firth. They were also said to have watched over the village of Cromarty In the 1900s the firth and the port of Invergordon became a base for Royal Navy warships and played an important role during World War I Offshore wind turbines put together at Nigg stretch to 146m (479ft) from the tip of a blade to the base under the sea.

He said it was understood that KBR Construction, a subsidiary of the US Group Haliburton, own the northern part of the site - including the oil terminal.

It also holds the long-term lease for the southern part from the Wakelyn Trust.

Mr Rennilson said KBR appeared to have no remaining commercial interest in the yard and terminal and advertised these parts for sale.

The Cromarty Firth Port Authority (CFPA) was appointed as preferred bidder in December 2005.

However, following discussions KBR were unable to proceed with the sale as agreement could not be reached with the trust on the ground reinstatement condition in the lease.

The CFPA lost its status and after putting it back on the market KBR gave preferred bidder status to another company called DSM.

A negotiated settlement has still not been reached between KBR, the trust and DSM.

The situation led to last week's meeting between council officials, councillors and KBR bosses, which Mr Rennilson described as "very useful".

Highland Council has also sought talks with the trust in an effort to find a resolution.

The authority could obtain a compulsory purchase order (CPO) giving it powers to attempt to obtain land and buildings.

In his report, Mr Rennilson said success of a CPO was not guaranteed and it could take 18-24 months to resolve.

There have been concerns that the longer the yard is out of use, the more it will deteriorate to a point where it will be too expensive to return to full working life.

While the clock ticks, there has been no shortage of ideas of new roles for the site.

Two years ago, a company which brought naval "ghost ships" from the US to the UK put forward a bid for the yard.

A firm wanted to scrap US vessels dubbed 'ghost ships' at Nigg

Able UK was at the time in dispute with environmental agencies over plans for a scrap yard facility in Hartlepool.

Environmentalists said the naval ships were carrying toxic material, which the company denied.

It was mooted that the ships could be transferred to Scotland to be broken up if the dispute in Hartlepool was not resolved.

The renewable energy sector may also be interested in the yard.

Two experimental offshore wind turbines were put together there after being constructed elsewhere, before being floated out of Cromarty into the Moray Firth.