Robin Rowland | Northwest Coast Energy News

Harper government stalling on earthquake readiness for Haida Gwaii, Cullen says

The Harper government is stalling on requests for better earthquake preparation on Haida Gwaii, according to the NDP MP for Skeena Bulkley Valley, Nathan Cullen.

Speaking to northwest reporters on Thursday, February 28, Cullen who is NDP House Leader, said: “The government has been stalling since November when we’ve been asking them to meet the communities and meet their demands for funding, because as we see more earthquakes come, the support hasn’t been there from the federal government.”

The Skeena Bulkley Valley riding includes Haida Gwaii which was hit by a major 7.7 magnitude earthquake on October 27, 2012. Haida Gwaii and the northwest coast was shaken with numerous aftershocks through the rest of October and November. The most recent were 4.3 magnitude aftershock on February 24 and 4.5 magnitude aftershock on February 25.

On January 5, 2013, another 7.5 magnitude earthquake struck near Craig, Alaska. That quake was also felt throughout northwestern BC.

Both big quakes prompted tsunami warnings.

“The communities have done their work,” Cullen said. “We’ve given the government three months now. Earthquakes continue to still happen,

“Rather than shedding tears if something goes wrong, the government should fix the problems. We know exactly where the funding can be coordinated and effective particularly in Haida Gwaii, there’s been a lot of work done on behalf of their communities especially by their municipal leaders.

“The federal government simply has to say yes, to meet with them, to find some of those funding solutions. This is not rocket science.

“Maybe because there aren’t earthquakes in Ottawa, the Harper government doesn’t seem to think these things are a concern to people. But they are. And let’s not wait until a tragedy happens before we start to make some moves.”

Cullen noted that the federal government had recently budgeted $680,000 for new LED lights for the communities on Haida Gwaii.

“I am not going to speak against the need to put LED lights in but’s obvious that the federal government’s priorities are not aligned with what’s actually needed on the ground. People have been calling for this for years. We’ve seen tsunami warnings before. And there’s some good and reasonable fixes.

“The role of the federal government emergency preparedness requires this,” Cullen said, but then he added that, “Now one thing to keep in mind is that this federal conservative government wants to get out of anything to do with emergency readiness and response,” pointing to cutbacks in the budget for First Nations police forces.

Unmentioned at the news conference was that likely also includes the Coast Guard cutbacks on the west including, including the highly unpopular and controversial closing of the Kitsalano Coast Guard base in Vancouver

Cullen said he was hoping to meet with the cabinet ministers responsible to get more action on earthquake readiness on Haida Gwaii.

The tsunami, Twitter and the Zones: Did social media amplify government generated confusion?
Nov. 4. 2012

DFO study on ancient Douglas Channel tsunamis shows minimal impact on Kitimat, devastation at Hartley Bay
Nov. 17, 2012

Environment agency calls for comments on Prince Rupert LNG pipeline

The Canadian Environmental Assessment Agency is calling for comments on the proposed LNG project at Prince Rupert.

An agency news release says:

As part of the strengthened and modernized Canadian Environmental Assessment Act, 2012 (CEAA 2012) put in place to support the government’s Responsible Resource Development Initiative, the Canadian Environmental Assessment Agency must decide whether a federal environmental assessment is required for the proposed Pacific Northwest LNG Project in British Columbia. To assist it in making its decision, the Agency is seeking comments from the public on the project and its potential effects on the environment.

Progress Energy Canada Ltd. is proposing to construct and operate a liquefied natural gas (LNG) facility and marine terminal near Prince Rupert, within the District of Port Edward. The Pacific Northwest LNG facility would be located on Lelu Island. The proposed project would convert natural gas to LNG for export to Pacific Rim markets in Asia.

The agency says written comments must be submitted by March 11, 2013.

The CEAA says it will post its decision on the website if a federal environmental assessment is required.

It goes on to say:

If it is determined that a federal environmental assessment is required, the public will have three more opportunities to comment on this project, consistent with the transparency and public engagement elements of CEAA 2012.
Projects subject to CEAA 2012 are assessed using a science-based approach. If the project is permitted to proceed to the next phase, it will continue to be subject to Canada’s strong environmental laws, rigorous enforcement and follow-up, and increased fines.

By “CEAA 2012,” the agency is referring to the omnibus bill, best known as C-38, which actually weakened the CEAA’s ability to review projects. “Science-based approach” has become a stock phrase used by the government of Stephen Harper on resource issues, while it weakened environmental review procedures, terminated the jobs of hundreds of scientists and restricted those who are left in the government from speaking to the media or commenting on issue.

In December,the CEAA called for similar input for the Coastal GasLink project to Kitimat, with a deadline of January 30. No decision has been announced for that project. which would be built by TransCanada for the Shell LNG Canada project.

Harper, Enbridge “poisoning the well” for northwest BC industrial development, Cullen says

Both the Conservative government of Stephen Harper and Enbridge Northern Gateway have “poisoned the well” against industrial developers in the northwest of BC and that is increasing resistance to all projects, Skeena Bulkley Valley MP and NDP House Leader told reporters Thursday, February 14.

Cullen was speaking during a regular conference call held with northwest BC media and was promoting his current Renewal Northwest tour of the riding.

“[There is a] huge amount of investment in the northwest,” Cullen said. The Renewal Northwest tour, he said, is intended to “bring the public into it, knowing good from bad, right from wrong.because some of these projects that will be excently suited for the northwest and others pose far too many risks. And how do you make that decision?”

“It’s a conversation a lot of people have been itching to get at.” Cullen said because in northern British Columbia a significant number of people have resisted development, whether it’s the proposed Northern Gateway pipline or fracking in the Sacred Headwaters of the Skeena, Stikine and Nass Rivers.

“Once you get past the conversation of what you don’t want, comes the conversation of what we do want.” Cullen said. “That means good jobs that fit in with our local ecology and our own values. It’s never been really been brought altogether.”

“To be honest most of the developers I talk to, most ofthe people looking to do mining or a gas pipeline or some other project are also looking for those same guidelines. What is it that the northwest wants? How is it that we can the social licences we call it to operate here?

“I’ve spoken to a number of these proponents and a lot of them realize that the well has been poisoned in part by the Harper government who has tried to bully people and call them names and shut down their voices. People get their backs up when they do that. It’s won them no friends.” Cullen said.

“In the case of Enbridge, a lot of those proponents will privately talk to you about how much harder it is to have a conversation in a community after Enbridge has been through town and offended people or just presented something in such a way that people get very resitant.

“I think that there has to be some repair work that has to be done. People do not have faith in the Harper government to protect some of these other values.

“Some of these companies have an up hill struggle based on recent community experience from which the likes of Enbridge has made them quite aware.

“A lot of them are picking up best practices.which is ‘don’t do what Enbridge did,’ do something smarter, more inclusive, and less abrasive. So people are learning there’s a path. We just have to describe what that path looks like.”

(An executive of one company planning an LNG development told Northwest Coast Energy News some months ago, “We’re looking at what Enbridge did and doing the opposite.”)

On the other hand, Cullen believes Enbridge is continuing to go in the opposite direction.

“Enbridge has been learning from the Harpter government doing these omnibus revisions to their pipeline and routing plans, dumpng huge amounts of paper, including increasng the amount of bitumen increasing the threat. All the time the federal government doesn’t seem to mind, Consistently British Columbia residents remain opposed and consistently opposed, with very at all supportive, I think the last poll had 11 per cent strongly support the project.”

Cullen was asked about reports, first from PostMedia News Scientist calls new confidentiality rules on Arctic project ‘chilling’ and later on CBC Canadian federal research deal ‘potentially muzzles’ U.S. scientists
that the Harper government is moving beyond trying to control information released by scientists who are government employees to any scientist who may work alongside those scientists or participate in a federally sponsored research project.

“This is a continuation of a pattern from this government, they are now trying to muzzle people , they don’t actually control and folks are resisting cause it goes against every princple of what good science is you put it out into the public sphere for debate and learning,” Cullen said. “It shows that the government isn’t interested in those facts.

“So it gets worse and worse. It goes back to an earlier question about what it’s like to work in the northwest , the well is poisoned by the Harper government when it comes to any of these questions because thy do things like this and people lose any confidence that the government’s impartial. Well, it’s obviously not, It’s only looking for one answer with anything to do with oil and gas in particular. Anyone who presents anything like science or evidence to the contrary is just shut down and muzzled and I am glad to see the scientific community shows backbone and resists.”

Two days left for public input on BC “heavy oil” spill response plans

Residents of British Columbia have just two days to file information and opinions on the province’s plans for “options for strengthening BC’s spill preparedness and response policies and capacity.”

A page on the BC Ministry of the Environment’s web site wants public input as part of “BC’s five conditions necessary for support of heavy oil projects.”

Premier Christy Clark announced her controversial five conditions for pipeline development in BC in July 2012. Clark’s announcement was aimed both at the Northern Gateway Pipeline which would have its terminal in Kitimat, and the proposed Kinder Morgan pipeline expansion which has its terminal in Vancouver.

It is not clear how long the web page has been up, but the call for input from the public has received little, if any, publicity. The deadline for public submissions is February 15, 2013.

(Northwest Coast Energy News was alerted to the story by a Kitimat-based hiking club)

A separate call for academic papers had a deadline of January 25. The province plans a conference on oil spill response in Vancouver from March 25 to March 27. The website says”

As part of British Columbia’s commitment to a world leading preparedness and response regime for land based spills, it is hosting a symposium March 25-27, 2013 in Vancouver, BC. Due to the anticipated high interest in the symposium, attendance is by invitation only.

One question would be if invitation only is designed to exclude activist groups who may wish to participate or demonstrate. The Northern Gateway Joint Review panel banned public input at hearings in Vancouver and Victoria earlier this year to try, not always successfully, to head off demonstrations. The webpage says:

In keeping with the established polluter-pay principle, and recognizing the increase in development activities across the province, the Ministry of Environment (the ministry) is reviewing industry funded options for strengthening BC’s spill preparedness and response policies and capacity. Land based spill refers to any spill impacting the terrestrial environment, including coastal shorelines, regardless of the source.

This review addresses three aspects of land based spill preparedness and response: World leading regime for land based spill preparedness and response

Effective and efficient rules for restoration of the environment following a spill

Effective government oversight and coordination of industry spill response The ministry has developed a policy intentions paper for consultation (intentions paper) on the three aspects of the province’s land based spill preparedness and response regime under consideration.

The purpose of this intentions paper is to describe the ministry’s proposed policy direction and seek input on enhancing spill preparedness and response in BC. The intentions paper is a discussion document and your feedback will influence the policy approach.

Although the call for input is on the ministry website, the contact is a management consulting firm C. Rankin & Associates.

Chevron advertises for Houston-based Kitimat plant logistics manager

Chevron, which recently took over management of the Kitimat LNG project is advertising for a Houston, Texas, based logistics manager for the project.

The ad gives (in part) this job description:

Chevron is accepting online applications for the position of Kitimat Plant Logistics Manager located in Houston, TX through February 19, 2013 at 11:59 p.m. (Eastern Standard Time).

The Kitimat LNG project is located in Western Canada and includes 1) construction of the 2 x 5.5 MTPA Kitimat LNG Plant and 2) the Pacific Trails Pipeline.

Responsibilities for this position may include but are not limited to:

Responsibility for overseeing and managing the entire plant logistics program including module, equipment and bulk cargo logistics throughout the overall supply chain. Development of the necessary organizational capability within the Kitimat team, Engineering, Procurement & Construction (EPC) Re / Engineering, Procurement and Construction (Management) (EPCM) Contractor organization, and selected logistics contractors’ organizations

Assist in the development of contract ITB templates and scopes of work for project logistics contracts for (a) Heavy module marine/road transport and (b) General cargo transport from worldwide locations to module yards and Kitimat, freight forwarding services, and in-country transport, including development of criteria to evaluate bids.

Oversee the selected logistics contractors’ performance of project logistics, focusing primarily on the movement of prefabricated modules from multiple locations to ports near Kitimat.

Decision on Black’s Kitimat refinery in 60 days, Edmonton Journal reports

The Edmonton Journal is quoting David Black as saying in Fate of proposed Kitimat refinery to be determined within 60 days:

British Columbia newspaper magnate David Black says he’ll know in about 60 days whether his controversial idea for a new refinery on the West Coast will move forward or die a quiet death.

In a recent interview, Black said he has signed memorandums of agreement with parties interested in the idea of a $15-billion refinery at Kitimat, done some preliminary design work and talked to financial backers — though any deal has a long way to go.

“I’ve been pulling threads together — potential customers, financiers, government, First Nations — and they should all be saying ‘yes’ or ‘no’ within 60 days.”

If the parties say “yes,” there would be two years of regulatory approvals required before construction could begin, he said.

Expansion of proposed Kitimat bitumen terminal urgent to get offshore markets, Enbridge tells JRP

Enbridge Northern Gateway has told the Joint Review Panel that expansion of the proposed bitumen and condensate terminal in Kitimat is urgent so the company can access offshore markets for Alberta bitumen sands crude.

Northern Gateway filed an update on its plans for the Kitimat in response to a ruling from the JRP, after Smithers-based activist Josette Weir questioned how Enbridge filed a route update with the panel which included the plans to expand the terminal.

The JRP ruled against two of Weir’s motions but upheld, in part, her objection that the terminal plans were not part of a route revision.

In the Motion, Ms. Wier argues that there are a number of completely unrelated documents embedded within the route revision changes including, for example, a “noticeable increase in the number of oil tanks at the Kitimat terminal” with “significant size increases included.” There is no discussion in the update documents on how these changes are related to the proposed routing change. Ms. Wier further notes that this evidence was submitted after the completion of questioning on engineering (including regarding the Kitimat tank farm) in Prince George last
November.

The Panel notes that it may be of use to parties for Northern Gateway to identify which of the exhibits submitted on 28 December, 2012, were: (i) directly related to Route Revision V; (ii)corollary to Route Revision V; or (iii) unrelated to Route Revision V. Accordingly, the Panelorders Northern Gateway to submit, on or before 1 February 2013, a chart setting out this information for each of the exhibits submitted in the 28 December 2012 update. Further, where the documents are listed as “unrelated to Route Revision V”, Northern Gateway is to provide a
brief description as to why this evidence is being filed at this time.

In response, Northern Gateway filed a spreadsheet with the JRP to clarify the reasons for including the expansion of the tank farm. As the JRP requested, the explanation is brief, but significant.

Northern Gateway stated that “the size and spacing of tanks will be optimized during detailed design.”

In recognition of the urgency of accessing offshore markets, Northern Gateway and its Funding Participants have recently agreed to proceed with engineering and design activities.

Brief description as to why this evidence is being filed at this time required:

…for preparation of a Class III Cost Estimate, at an expected cost of over $150 million. Discussions with the Funding Participants in late 2012 resulted in a more detailed analysis of the tankage required by shippers, with particular emphasis on ensuring an adequate degree of commodity segregation within the tank farm. That analysis, which concluded in December 2012, revealed that additional tankage would be required to satisfy commodity segregation requirements.

Northern Gateway included this information along with its Route V filing as a matter of convenience to all involved.

In respone to Weir’s objection that the Enbridge Northern Gateway filed a major change to the project and noted that most intervenors are limited to the deadlines set by the JRP, and that the engineering hearings in Prince George had already concluded.

In response, the panel ruled that Enbridge could present the evidence at the marine hearings in Prince Rupert that resumed today.

In its letter enclosing the 28 December 2012 update on Route Revision V, Northern Gateway noted that, “to the extent that there are questions regarding this filing that have not been previously addressed, members of the Northern Gateway Kitimat River Valley engineering design and emergency preparedness witness panel will be available to answer same when they appear in Prince Rupert.”

The Panel is of the view that any substantive questions on the updated evidence could best be
addressed through questioning in Prince Rupert, as suggested.

At the opening of the hearings in Prince Rupert, Coastal First Nations withdrew from the process, citing the cost and complexity of the hearings. Both events once again call into question the fairness of the Joint Review Process and whether or not there is a double standard, with one set of standards for Enbridge Northern Gateway and another for intervenors.

Northern Gateway Response to JRP Ruling 141 Route_Rev_V

Ruling No. 141 Notice of Motion by Josette Weir

NEB grants Shell project 25-year export licence for LNG

The National Energy Board has approved an application by Shell Canada’s LNG Canada Development Inc. (LNG Canada) a licence to export liquefied natural gas from a proposed terminal near Kitimat.

A NEB release says:

The export licence will authorize LNG Canada to export 670 million tonnes of LNG (approximately equivalent to 32.95 trillion cubic feet of natural gas) over a 25-year period. The maximum annual quantity allowed for export will be 24 million tonnes of LNG (approximately equivalent to 1.18 trillion cubic feet of natural gas). The daily equivalent of these exports is 3.23 billion cubic feet per day.

In approving the application, the Board satisfied itself that the quantity of gas to be exported does not exceed the surplus remaining after due allowance has been made for the reasonably foreseeable requirements for use in Canada, having regard to the trends in the discovery of gas in Canada.

Coastal First Nations pull out of Joint Review Hearings in Prince Rupert

Coastal First Nations have pulled out of the Joint Review hearings in Prince Rupert.

In a news release, Art Sterritt, executive director said:

This is a David and Goliath scenario, said Art Sterritt. “It seems the only party that can afford this long and extended hearing process is Enbridge and, perhaps, the Federal Government. The average citizen can’t afford to be here and the Coastal First Nations cannot afford to be here.”

Sterritt, the executive director of the Coastal First Nations, said pulling out was a difficult decision because the Emergency Response Panel is dealing with important issues. “We planned to ask questions that included: does diluted bitumen sink; how quickly can a spill be responded to and how effective can cleanup be; how long will spilled oil remain in the ecosystem and what are the costs of a spill cleanup and who will pay.”

It is clear that more scientific study is needed on emergency preparedness, he said. “Despite the lack of information it is continuing with the process. Ultimately this means the JRP will not have the information it needs to make an informed recommendation and that in turn means the Federal Government will be making decisions not based on science.”

The funding disparity isn’t the only JRP issue the Coastal First Nations is unhappy with. “We are dismayed with the nature of the hearing process itself. Enbridge witnesses are not answering questions or their answers are self-serving and non-responsive. We see cross-examination answers by Enbridge witnesses which are crafted with, or provided by, other persons sitting behind these witnesses who cannot be cross-examined. This does not seem fair to us at all.”

We had agreed to participate in this process on the basis that the JRP was going to be a decision-maker on whether or not the project would go ahead. Then the Federal Government unilaterally changed the decision-making process, he said. “This was blatantly unfair and smacks of double dealing – something we as First Nation have become accustomed to with this government.”

Coastal First Nations will continue to monitor these proceedings and we will do what we can to participate given our limited resources, Sterritt said. “We are profoundly disappointed with the nature of this process. Taken together these problems undermine the legitimacy and authenticity of the hearing process, our pursuit of the true facts and, ultimately, a just result.”

Other groups and individuals have also long complained about the growing expensive of travel and monitoring costs for the Joint Review process.

Haisla, Ottawa and BC sign agreement to open way for Kitimat LNG developments

The Haisla Nation, the federal government and the province of British Columbia have signed an agreement that opens the way for liquified natural gas development on Haisla territory on Douglas Channel.

The federal government also announced new regulations under the the First Nations Commercial and Industrial Development Act (FNCIDA). The regulations are necessary because First Nations are still governed by provisions of the century old Indian Act and reserve land is outside of provincial jurisdiction.

The agreement was announced at a news conference in Vancouver today, January 22, 2013. At this point it mainly concerns the Kitimat LNG project (also known as KM LNG)

A news release from the federal department of Aboriginal Affairs and Northern Development says: “FNCIDA was a First Nations-led initiative that allows the government to work with First Nations and provincial regulatory authorities to create regulations for complex commercial and industrial development projects on reserve.”

The tripartite agreement with the Government of Canada, Government of British Columbia and Haisla Nation “ensures administrative, monitoring and compliance activities for the LNG facility are performed and enforced by provincial officials.”

The news release also quotes Haisla Chief Counsellor Ellis Ross as saying: “Kitimat LNG offers new, important and sustainable economic opportunities which the Haisla people are eager to embrace. We have seen new jobs, business opportunities, and skills training come to our people since KM LNG signed its agreement with us, and we know that the agreement signed today with Canada and BC is a milestone in making the project a reality. On behalf of the 1,700 Haisla people, I thank both governments for their commitment to this important agreement and the better future it is bringing our people.”

The federal news release goes on to quote BC Community, Sport and Cultural Development Minister Bill Bennett as saying: “The BC Government is working with industry and First Nations to foster economic growth through the expansion of our province’s natural gas sector. I would like to thank the Government of Canada and the Haisla Nation for working with us to move the Kitimat LNG facility another step forward.”

The federal release also quotes executives from both major companies involved in the Kitimat LNG project, Apache and Chevron. Chevron recently took over operating control of the project from Apache when that company had difficulty finding customers in Asia for the LNG.

The Government of Canada, Government of BC and the Haisla Nation have shown exceptional leadership and support towards BC’s new LNG industry” said Tim Wall, President of Apache Canada. “This regulatory agreement builds on the many other agreements with the Haisla that has led to jobs, training, education and economic development in Kitimaat Village.”

“I want to congratulate the Haisla First Nation, the Governments of Canada and British Columbia, and Apache Canada for their shared leadership in finalizing the regulations governing the Kitimat LNG facility site,” said Jeff Lehrmann, president, Chevron Canada Limited. “We look forward to working with the Haisla First Nation, both governments, other First Nations and local communities to realize the project’s long-term economic potential.”

In remarks prepared for the meeting Canada’s Aboriginal Affairs minister John Duncan was quoted as saying

The proposed project will provide Canada’s energy producers with a doorway to overseas markets, in addition to creating jobs and economic development opportunities not just for the Haisla First Nation, but the entire northwest region of British Columbia.
That’s good news for members of the Haisla Nation, good news for British Columbia, and good news for all Canadians.
These regulations are passed under the First Nations Commercial and Industrial Development Act, known as FNCIDA, which allows the federal government to develop regulations for complex commercial and industrial development projects on reserve in partnership with First Nations and Provincial governments.
For First Nations, FNCIDA can remove the barriers they face in pursuit of economic development opportunities, while providing the certainty investors require, and assuring the community that the necessary oversight measures are in place.
Together with the Province of British Columbia and the Haisla Nation, the Government of Canada has also signed an agreement which ensures administrative, monitoring and compliance activities for the facility are performed and enforced by provincial officials who have the necessary experience and expertise.
As a result, the regulatory pieces are now in place for project to proceed.

Duncan added:

To protect the environment as it relates to natural gas production, together with the Province of British Columbia we have completed an environmental assessment pursuant to the Canadian Environmental Assessment Act. With our partners, we will ensure that the LNG plant is designed and built to industrial safety standards and that the operation is properly regulated