Robin Rowland | Northwest Coast Energy News

Bitumen sands “historic mistake” or “economic centre?”

Enbridge claims support from 60 % of First Nations on pipeline route; company also sticks to repudiated Gitxsan deal.

Enbridge Northern Gateway says that 60 per cent of the aboriginal communities on the route of the $5.5 billion Northern Gateway oil pipeline have agreed to accept an equity stake in the project.

In releases to the media today, June 5, 2012, Enbridge says that half of the communities that signed up for a piece of the 10 per cent equity stake on offer are in British Columbia and the other half in Alberta.

There was immediate controversy because Enbridge is refusing to release the names of the communities that have signed up for the deal for “privacy reasons.”

The controversy was heightened late Tuesday when Enbridge spokesman Paul Stanway told The Terrace Standard the company’s deal with the Gitxsan First Nation still stands, despite the fact both a majority of the heriditary leadership of the Gitxsan and the elected council have rejected the agreement signed by one chief Elmer Derrick.

A blockade of the Gitxsan treaty office is continuing despite a court injunction ordering an end to the blockade.

“We feel we certainly have an agreement,” said Enbridge official Paul Stanway told the Standard in describing discussions it has subsequently had with Gitxsan officials. Stanway said the deal followed a protocol arrangement signed with Gitxsan chiefs several years ago.

“We are confident we were negotiating with the right people,” he said of discussions with treaty society chief land claims negotiator Elmer Derrick and other society officials.

In addition, Art Sterritt, executive director of the Coastal First Nations issued a news release that called Enbridge’s claims about aboriginal equity partners a “complete sham”.

“We’ve checked with all First Nations on the pipeline route west of Prince George and only two First Nations have signed equity agreements,” Sterritt says in the release. “Enbridge expanded its pipeline corridor by 80 kilometres to increase its numbers. Many of those communities that have signed on are located outside of the areas that will be impacted by a spill.”

Sterritt also challenged Enbridge’s contentions on the Gitxsan deal, saying that the Gitxsan people have made it clear they don’t support the project. “They have strongly rejected the agreement.”

Sterritt concluded. “We intend to stop this project.”

Sterrit says his coastal alliance is “absolutely mystified” about the inclusion of the Metis — who don’t have aboriginal rights and title within the corridor — in Enbridge’s 60 per cent. (Representatives of the Metis have taken part in the Joint Review hearings from the opening days of hearings in Kitimat last January).

Enbridge has announced before that First Nations support the pipeline project but, with the exception of Derrick, has never publicly discussed which nations support the project.

The near simultaneous announcement by Enbridge of First Nation’s support for the pipeline and the statement that the company is sticking with its agreement with Elmer Derrick could raise more controversy by causing more splits within First Nations if a few individuals sign and then the agreement is repudiated by other leaders, as happened with the Gitxsan Nation.

The pipeline which would run more than 1770 kilometres from the Alberta bitumen sands to Kitimat, carrying 525,000 barrels of diluted bitumen in the first train and as much as 825,000 barrels in the second train. If everything is approved, Enbridge hopes to ship the bitumen by 2017.

“It’s a good place for us to start in demonstrating that there is aboriginal support for Northern Gateway,” Stanway said. “It’s not 100 per cent, but neither is it the wall of opposition that our opponents sometimes claim.”

The 10 per cent equity ownership for the First Nations who signed the deal will give them about $280 million over 30 years. They would see cash flow starting in the first year of the pipeline’s operation.

There are 45 First Nations along the pipeline, but Stanway wouldn’t give a final figure on how many signed on.

“Some of those are willing to partner with us. That’s not to say they still don’t have some concerns. They want to make sure that we build and operate the pipeline as safety as possible.”

Wilf Adam of the Lake Babine First Nation in Burns Lake, B.C., the Canadian Press (as reported on the Global BC site) he refused to sign the equity agreement because Enbridge was unwilling to release more details in the contract.

“I’d been asking for the financial figures and I’d been asking about the employment. They said there would be a lot of employment.”

Adam told CP it appeared to him that there would be few jobs available for his people. Hesaid there was a flurry of emails and phone calls from Enbridge officials after the company moved the deadline for signing the equity agreement up to May 31.
Related links

Reuters: Enbridge Northern Gateway wins some native support

Globe and Mail: Some first nations want equity in Northern Gateway, but opposition remains

Common Sense Canadian Tough Questions for Enbridge on its Alleged Support from First Nations

CBC Majority of aboriginal communities sign on to Northern Gateway

TransCanada to build Shell’s “Coastal Gaslink” natural gas pipeline to Kitimat

Shell Canada and its Asian partners have chosen TransCanada Corporation to design, build, own and operate the proposed natural gas pipline to Kitimat, now called the Coastal GasLink project.

The estimated $4-billion pipeline will transport natural gas from the Montney gas-producing region near Dawson Creek, in northeastern British Columbia to the proposed natural gas export facility at Kitimat, BC.

The LNG Canada project is a joint venture led by Shell, with partners Korea Gas Corporation, Mitsubishi Corporation and PetroChina Company Limited.

A news release from TransCanada says “Shell and TransCanada are working toward the execution of definitive agreements on the Coastal GasLink project.”

In the release, Russ Girling, TransCanada president and CEO says:

Our team has the expertise to design, build and safely operate pipeline systems. We look forward to having open and meaningful discussions with Aboriginal communities and key stakeholder groups, including local residents, elected officials and the Government of British Columbia, where we will listen to feedback, build on the positive and seek to address any potential concerns. Coastal GasLink will add value to British Columbians, particularly Aboriginals and communities along the conceptual route, by creating real jobs, making direct investments in communities during construction and providing economic value for years to come.

TransCanada says the company has approximately 24,000 kilometres of pipelines in operation in western Canada including 240 kilometres of pipelines in service in northeast BC. Another 125 kilometres of proposed additions either already having received regulatory approval or currently undergoing regulatory review. These pipelines form an integral and growing part of TransCanada’s NOVA Gas Transmission Ltd. (NGTL) System, which brings natural gas from Alberta to British Columbia to a hub near Vanderhoof.

Girling said in the release:

TransCanada is a leading energy infrastructure company in North America, with a 60-year history of safe, efficient and reliable operation of our assets and a respect for the communities and environments where we operate. We appreciate the confidence that Shell and its partners have placed in us to build, own and operate this natural gas pipeline in British Columbia. We will work collaboratively with them, Aboriginals and other stakeholders as we launch into the initial phases of consultation and regulatory review.

Project parameters

In it’s release TransCanada describes the potential Coastal GasLink pipeline project this way:

Receipt point: Near Dawson Creek, BC
Delivery point: Proposed LNG Canada facility near Kitimat, BC
Product: Natural gas from BC’s abundant Montney, Horn River and Cordova basins and elsewhere from the Western Canada Sedimentary Basin
Length of route: Approximately 700 kilometres of large diameter pipe
Initial pipeline capacity: In excess of 1.7 billion cubic feet of gas per day
Anticipated jobs: Estimated 2000-2500 direct construction jobs over a 2- during construction 3 year construction period
Estimated cost: Detailed cost information will be developed following completion of project scoping and planning. The current estimate is approximately $4 billion
Regulatory process: Applications for required regulatory approvals are expected to be made through applicable BC provincial and Canadian federal processes
Estimated in-service date: Toward the end of the decade, subject to regulatory and corporate approvals

Pipeline route

TransCanada says: “The final pipeline route will take into consideration Aboriginal and stakeholder input, the environment, archaeological and cultural values, land use compatibility, safety, constructability and economics.:

The Pacific Trails Pipeline would go cross country to Kitimat. (PTP)

At this point there are two possible routes for the pipeline west of Vanderhoof. One route would be to follow the existing Pacific Northern Gas route that roughly parallels Highway 16. The second possibility is a cross-country route, which may lead to controversy. The Pacific Trails Pipeline, which would feed the KM LNG partners (Apache, Encana and EOG) goes across the mountains from Smithers. While the PTP project has the approval of most First Nations in the regions, Apache and PTP are still in negotiations with some Wet’suwet’en houses over portions where the pipeline would cross the traditional territory of the houses. The much more controversial Enbridge Northern Gateway pipeline follows a similar cross-country route and faces much stiffer opposition than the Pacific Trails Pipeline, due to the content of that pipeline, mainly diluted bitumen and because, critics say, Pacific Trails managed to secure the most geologically stable cross country route earlier in this decade when the pipeline was originally planned to import, not export, natural gas.

TransCanada says the Coast Gaslink pipeline will also have an interconnection with the existing Nova Gas (NGTL System and the liquid NIT) trading hub operated by TransCanada. The company says:

A proposed contractual extension of TransCanada’s NGTL System using capacity on the Coastal GasLink pipeline, to a point near the community of Vanderhoof, BC, will allow NGTL to offer delivery service to its shippers interested in gas transmission service to interconnecting natural gas pipelines serving the West Coast. NGTL expects to elicit interest in and commitments for such service through an open season process in late 2012.

That means that the Asian customers will not be just dependent on natural gas from northeast British Columbia. Instead the “molecules” of natural gas from Alberta will join the stream heading to Kitimat. “Open season” in the energy industry is an auction where potential customers or transporters bid for use the pipeline.

In the release Girling says:

The potential Coastal GasLink pipeline project will allow British Columbians, and all Canadians, to benefit from the responsible development of valuable natural gas resources and will provide access to new markets for that gas. The project will also create substantial employment opportunities for local, skilled labourers and businesses as part of our construction team,” concluded Girling. “We know the value and benefits that strong relationships in British Columbia can bring to this project and we look forward to deepening those ties as our extensive pipeline network grows to meet market and customer needs.

TransCanada Corp. is no stranger to controversy, the company is the main proponent of the Keystone XL pipeline from Alberta to the US Gulf Coast. Portions of that pipeline were put on hold by President Barack Obama pending further review and Keystone has become a hot issue in the current American presidential election.

Al Jazeera “covers” Kitimat, Blackout day and other battles, more on oil spills

Editorial: Support free speech in Canada for a proper debate on the country’s future

On Monday, June 4, 2012, many web sites across Canada (and some in the United States) will “black out” to protest the draconian provisions of Bill C-38, the huge omnibus bill that threatens to remake this country without proper debate either in Parliament or with the public and the news media.

As a news site, Northwest Coast Energy News will not “black out” as we have an obligation to continue to cover the news. However, make no mistake, this site supports the BlackOut SpeakOut campaign for free speech in Canada. Without free speech, the Canadian people cannot come to any informed decision on the vital issues of economic development and environment protection and climate change. Without free speech, the future of this country will be decided by the whims of the prime minister and a few of his cronies in the federal cabinet.

The word “Parliament” means to speak. Now Stephen Harper and the operatives in the Prime Minister’s Office have gone so far as to forbid members of the Conservative Party itself to represent their constituents and actually express that representation in public, in the media and even in Parliament.

Not only is the Conservative government of Stephen Harper putting unprecedented amounts of legislation which should be in separate bills in to the budget act and limiting debate on the bill, the government is doing everything it can to stifle debate on the issues within the massive bill.

Even before it got its majority last spring, Stephen Harper and his government stifled scientists and other officials in the government’s employ from discussing even the most minor of issues. The government now acts like a Third World dictatorship by sending “minders” along with the scientists when they go to international conferences. You have to wonder what the world thinks when Canada sends minders to watch over this country’s scientists, just as Iraq under Saddam or Syria today use minders to watch over visiting journalists.

Stephen Harper and the Conservatives are cutting funding for world-class scientific monitoring across Canada on marine pollution, studies on the changes in the ozone layer and the state of fresh water lakes. Bill C-38 will gut fisheries protection, based on the strange belief that you can protect large rivers without protecting smaller spawning streams. If the government believes that these cuts will save the taxpayer money, will reduce the deficit, they live in a fantasy world. These cuts mean that future generations will be paying and paying to clean up the cross-country enviromental disaster that will be the legacy Conservative policies. One also has to wonder if the resource companies, which throughout history, (or at least up until now), have used that scientific research are now blinded by political ideology.

Here on the west coast, the cuts to Coast Guard protection will have a devastating effect on the safety and lives of mariners who work the BC coast and all the spin about future coast guard vessels that may be launched years from now does not change that.

We have seen the government attack environmental groups that may receive part of their funding from foreign foundations (and why not, we all live on the same planet?) while apparently accepting foreign funding to so-called “think tanks,” like the Fraser Institute, which support the Conservative Party. The Conservatives also see nothing wrong with billions in foreign investment in the energy sector, much of it from China, and the money those companies put into lobbying. Apparently if you “invest” you have free speech, if you are not an “investor,” your free speech rights are not as important.

If the energy and other resource development companies think that Conservative policy will fast-track their plans and project, then think again. Talk of civil disobedience across British Columbia is increasing day by day. The cuts to marine pollution monitoring and Coast Guard protection mean that more people who were neutral or even supportive of those projects are now moving toward the opposition.

The freedom to speak in the media and in the public sphere remain in Canada (for now). Parliament, however, under the contemptuous gaze of Stephen Harper, is fast becoming nothing more than a puppet show, with Harper pulling the strings.

The Blackout Speakout campaign shows how much democracy in Canada has decayed since Harper won his majority last May. Who would have believed a year ago that this country would need to have a campaign for free speech?

In the years before Confederation in 1867, Canadian politicians campaigned for what was called “responsible government.” It is now time to fight that battle all over again.

More resistance to Harper science, fisheries cuts as Tories support foreign-funded wildlife groups

Enbridge hires major PR firm, launches multi-million dollar Gateway campaign

Haisla aim to take on feds, Alberta over Gateway

The Haisla Nation have filed papers with the Northern Gateway Joint Review Panel asking permission to question both the federal and Alberta governments during the questioning phase of the hearings.

A letter from the Haisla’s lawyer, Jennifer Griffith of the law firm Donavan & Company explains:

The Haisla Nation intends to question federal government participants on the following aspects of the proposed project:

1. The federal government’s evidence;

2. The adequacy and completeness of the information provided by the proponent;

3. The potential impacts of the proposed project;

4. The proponent’s proposed approaches to mitigation;

5. The regulatory role of the federal government with respect to the proposed project.

Griffith says the Haisla Nation want information “about potential environmental effects of the proposed project and the suitability of the proposed mitigation” and to find out if the controversial pipeline project “will result in significant adverse effects that cannot be mitigated, and on potential impacts to the Haisla Nation’s aboriginal rights, including aboriginal title.”

Griffith adds that the federal government plays a significant role in the proposed project approval, permitting and in regulatory oversight.

In addition, various federal government departments are charged with administering legislation applicable to the project that is designed to protect the environment or species at risk. The federal government’s assessment of the proposed project is therefore required in order to have a full understanding of the potential project effects.

The federal government has participated in the information requests to the proponent phase, and has filed evidence. Fairness requires that the Haisla Nation have the opportunity to test the evidence submitted by the federal government, and to explore the role of the federal government in the regulations of the proposed project.

On Alberta, Griffth says The Haisla Nation intends to question the Government of Alberta on the Wood Mackenzie Netback Analysis (a study commissioned by the Calgary Chamber of Commerce on ways of exporting oil from Alberta and the transportation corridors needed to get the oil to markets in Asia), adding

Information about potential economic benefits anticipated to result from the proposed project is relevant to the Canadian public interest assessment required for the proposed project.

Haisla Nation questioning Federal Government (pdf)

Haisla Nation questioning Government of Alberta (pdf)

Joint Review Panel Submission Calgary Chamber of Commerce (pdf)

Clark objects to Kits Coast Guard closing, bones recalls Cheslatta controversy

BC refuses to answer questions from Douglas Channel Watch, because province hasn’t filed Gateway evidence

Updated with comment from Douglas Channel Watch and DCW questions to province.

The province of British Columbia is refusing to answer questions from the Kitimat group Douglas Channel Watch about the Northern Gateway pipeline project because, the province’s lawyer says, BC hasn’t filed any evidence and so doesn’t have answer questions through the Joint Review Process.

In a filing on May 28, Christopher Jones, counsel for BC before the JRP says:

the province of British Columbia wishes to advise that it will not be responding to this information request as the Province has not filed evidence in this proceeding.

In the letter Jones invites Douglas Channel Watch to contact him so the group can ask questions from the “appropriate offiicial.”

The fact that the province is brushing off Douglas Channel Watch raises an even larger question, why hasn’t the province filed any evidence in one of the biggest environmental, economic and political stories in provincial history?

The filing from Douglas Channel Watch was an attempt to find out who would be financially responsible for any oil spill resulting from a pipeline breach near Kitimat that could threaten the District’s water supply, a major issue with the Kitimat based environmental group.

In an early filing with the Joint Review Panel Enbridge said.

Regardless of whether or not insurance covers losses and liabilities of Northern Gateway and/or third parties, Northern Gateway would make good the damages which it has caused. Recovery ofthese costs under Northern Gateway’s procured insurance programs would be governed by the general laws of insurance, the terms and conditions of the insurance policies and Northern Gateway’s obligations to its insurers regarding the reporting, investigation and adjustment of its incurred costs in making good the damages.

Enbridge then goes on to list the standard exclusions from insurance policies.

Criminal intent

Wilful misconduct or intent

Deliberate destruction

Intentional violation of any statute, rule, ordinance or regulation

Non-compliance with reporting and notification requirements

Breach of contract

Unfair trade, competition or deceptive acts

Nuclear liability

War, terrorism, rebellions, civil war or civil strife

In their questions to the province, Douglas Channel Watch emphasized the phrase that Enbridge would “make good the damages which it has caused.” Douglas Channel Watch then emphasized the insurance exclusion for war, terrorism or civil strife.

The group was then asking the province what its responsibility would be, especially when a pipeline goes through forested areas, which come under the jurisdiction of the Ministry of Lands and Forests.

Douglas Channel Watch is specifically concerned that

In the upper Kitimat River and Hoult Creek valleys there are very large logging clear cuts on steep slopes. The proponent intends to locate its pipelines near the bottom of these clear cuts

The main question to the province from Douglas Channel Watch is that if a landslide results from a clear cut in a geologically unstable area, and that landslide breaches the pipeline, who is responsible for the cleanup, asking these questions, which the province refused to answer:

Could this allow the proponent to avoid paying for third party damages and clean up costs if an avalanche and/or debris slide which initiates in a logging clear cut… for example, a 2,000,000 litre full bore diluted bitumen pipeline rupture into Hoult Creek or the Kitimat River?

Would not those damages to third parties and clean up costs then be paid by the party responsible ?

Would the responsible party be the Government of BC for allowing the pipelines to be located in areas which violate safe logging practices where linear infrastructure may be impacted?

If the Government of Canada imposes a decision to allow the proponents project over the objections of the Government of BC or the recommendation of the Joint Review Panel, would the Government of Canada then be the responsible party?

Murray Minchin of Douglas Channel Watch responded by noting. “It may be true the Prov of BC hasn’t submitted evidence, but they have been involved in the JRP process” by filing questions to Enbridge.

Meanwhile, Douglas Channel Watch is organizing a public forum called North Coast Reality Check at the Kitimat Riverlodge Recreation Centre on June 8 from 7 pm to 9 pm.

In a news release, Minchin, says presentations will be given by DCW members highlighting many serious issues Enbridge prefers not to talk about, such as geological and marine hazards, corrosion in double hull tankers, and socio-economic impacts of the Northern Gateway proposal.

Response from BC to IR from Douglas Channel Watch (PDF)

Douglas Channel Watch Information Request to Government of BC (PDF)

BC Government questions to Enbridge

Province of BC Information question No 1 Northern Gateway project (PDF)

Province of BC Information Request 2 (PDF)