Mitt Romney, the Republican candidate for president of the United States today issued his “white paper” on energy policy. It calls for an integrated energy market with Canada, the United States and Mexico. Romney also endorses Prime Minister Stephen Harper’s environmental fast track “one project one review” policy.
A crucial component of Mitt Romney’s Plan for a Stronger Middle Class is to dramatically increase domestic energy production and partner closely with Canada and Mexico to achieve North American energy independence by 2020. While resident Obama has described his own energy policy as a “hodgepodge,” sent billions of taxpayer dollars to green energy projects run by political cronies, rejected the Keystone XL Pipeline as not in “the national interest,” and sought repeatedly to stall development of America’s domestic resources, Romney’s path forward would establish America as an energy superpower in the 21st century.
It’s key recommendations are:
• Approve the Keystone XL pipeline;
• Establish a regional agreement to facilitate cross-border energy investment,
infrastructure, and sales;
• Promote and expand regulatory cooperation between governments to encourage
responsible energy production, including the creation of a forum for sharing best
practices and technologies; and
• Institute fast-track regulatory approval processes for cross-border pipelines and other infrastructure.
While the white paper is supposed to be the foundation of Republican energy policy, it is itself a “hodgepdge,” mostly a cut and paste job of various reports in the US and Canadian media. While the paper does cite those many sources, it is the kind of compiliation that would get a university freshman a fail, for lack of original content. It also get the name of Canada’s finance minister wrong in one reference, calling him correctly Jim Flaherty in the headline but “Jay Flaherty” in the story credit.
Romney’s paper also seems to be worried that the fact from the prime minister, many economists and policy analysts are saying that it is imperative that Canada diversify its market away from the United States.
Some key highlights of Romney’s white paper of quotes includes:
Obama’s Rejection Of Keystone Will Force Canada To Ship Its Vast Supplies Of Oil To China. “Ronald Liepert, the energy minister in Alberta, said that while Canada would prefer to sell its oil to the United States, ‘this commodity will go someplace.’ In particular, he said, China is already a major consumer of other Canadian natural resources and a small investor in the oil sands. ‘I can predict confidently that at some point China will take every drop of oil Canada can produce.’” (Ian Austen, “Oil Sands Project in Canada Will Go On If Pipeline Is Blocked,” The New York Times, 6/6/11)
Romney then quotes SunMedia:
Canadian PM Harper: “Look, the very fact that a ‘no’ could even be said underscores to our country that we must diversify our energy export markets…We cannot be, as a country, in a situation where our one and, in many cases, only energy partner could say no to our energy products. We just cannot be in that position.” (Bryn Weese, “Harper Determined To Get Canadian Oil To Asia,” Sun News, 4/3/12)
So while Romney wants to approve the Keystone XL pipeline, there is no mention of the Northern Gateway project, but it is clear they don’t want bitumen oil going outside of the continent.
However, the Republicans seem to like quoting Harper’s fast track approach which has caused an uproar here in Canada, quoting the Wall Street Journal:
Compare The Canadian Approach: “One Project, One Review.” “The budget also treats Canada’s energy resources as national assets to be exploited—with as few delays as possible. Thus the budget proposes to eliminate overlapping federal and provincial environmental reviews for major projects. It proposes firm review timelines, including for projects that are already underway, such as the Northern Gateway pipeline from northern Alberta to the Pacific coast. Mr. Flaherty’s catch phrase is ‘one project, one review.’” (Editorial, “Canada Beats America,” The Wall Street Journal, 4/3/12)
and also appearing to endorse downloading to the provinces (or in the case of the US, the states), while warning Americans about Finance Minister Jim Flaherty’s statement in the Commons about diversifying Canada’s markets.
Compare The Canadian Approach: “Respect Provincial Jurisdiction … Streamline The
Review Process.” CANADIAN FINANCE MINISTER JIM FLAHERTY: “Canada’s resource industries offer huge potential to create even more jobs and growth, now and over the next generation. This potential exists in every region of the country–natural gas in British Columbia, oil and minerals on the Prairies, the Ring of Fire in Ontario, Plan Nord in Quebec, hydro power in Atlantic Canada, and mining in Canada’s North. Recently it has become clear that we must develop new export markets for
Canada’s energy and natural resources, to reduce our dependence on markets in the United States.
The booming economies of the Asia- Pacific region are a huge and increasing source of demand, but Canada is not the only country to which they can turn. If we fail to act now, this historic window of opportunity will close. We will implement responsible resource development and smart regulation for major economic projects, respecting provincial jurisdiction and maintaining the highest standards of environmental protection. We will streamline the review process for such projects, according to the following principle: one project, one review, completed in a clearly defined time period. We will ensure that Canada has the infrastructure we need to move our exports to new markets.” (Canadian Finance Minister Jay Flaherty, The House Of Commons, Remarks, 3/29/12)
One has to wonder if Mitt Romney’s other policies are also cut and paste jobs and, if elected, how often he will be calling Stephen Harper for advice.
On the opposite site of the world, Kitimat, site of the Rio Tinto Alcan aluminum smelter, is poised to become a major export port for Canadian liquefied natural gas.
The future of the Northern Gateway project is now completely in the hands of Prime Minister Stephen Harper’s cabinet.
Today, Friday, August 3, 2012, Environment Minister Peter Kent used the provisions of what the Harper government calls the Jobs, Growth and Long Term Prosperity Act (former Bill C-38) to set a final deadline for a report from the Northern Gateway Joint Review Panel on December 31, 2013 and reserve the final environmental decision for the Governor-in-Council.
Today’s move, in effect, is the final gutting of the Joint Review Process, making it irrelevant, since, as long suspected, the government will now make the decision on its own.
The Joint Review Panel no longer has the power to reject the Northern Gateway on environmental grounds, that is now solely up to the Harper cabinet. Once the Gateway project is approved, as expected, the NEB has been ordered to issue the approval certificate within seven days.
By releasing the news on a Friday afternoon before a holiday weekend, the Harper government spin doctors through Environment Minister Peter Kent have also pulled the classic government move of releasing bad news when it will least be noticed.
There is also the new agreement between the Ministry of Environment and the National Energy Board. The revised memorandum of agreement says:
The Governor in Council will make the decision on the environmental assessment (whether the project is likely to cause significant adverse environmental effects and if, so whether such effects are justified in the circumstances). The Governor in Council will decide, by order, whether the board should issue a certificate and will give reasons for the order.
Under the act, the NEB now has to file its environmental assessments within 543 days of the act coming into force, hence the imposed deadline.
If there are no excluded periods this would mean that the environmental assessment and report must be submitted no later than Dec. 31, 2013.
The final paragraph of Kent’s letter also says
If the Project is approved by the Governor in Council, the NEB will issue the certificate of public convenience and necessity within seven days of the Governor in Council’s order.
That’s a clear indication that the Harper government still intends at this point to fast track the Northern Gateway project.
Apart from giving the most environment unfriendly cabinet in Canadian history the decision power, most of the memorandum of agreement are legalistic changes necessary to bring the former agreement into compliance with the new law.
The environmental sections of the agreement, based on the amendments to the Environmental Assessment act have a couple of interesting points
any change that the project may cause in the environment, including any change it may cause in listed wildlife species as critical habitat or residences of that species….
Although the memo goes on to say
any change to the project that may be caused by the environment whether such change or effect occurs within or outside Canada
While this may be simply legalistic language, given the overall tone of the Harper government’s policy, especially the changes in the Fisheries Act that only protects fish habitat when it affects commercial species, one has to wonder if the emphasis on listed (that is threatened or endangered) species is again a narrowing of the criterion for approving the pipeline.
The second phrase is also ambiguous, seemingly to imply that the environment could be to blame for any problems the project may face. Opponents have long pointed out that the environmental conditions and risks such as geologic instability along the pipeline route and the heavy weather in the waters off British Columbia are factors that increase the danger of an oil spill event whether on land or sea. However, the new agreement presents an almost Orwellian scenario that would blame the environment, an “Act of God” in insurance terms, rather than the company or the government for any future disaster.
The main phrase in the agreement “whether such effects are justified in the circumstances” clearly indicates that the Harper government is fully prepared to ignore the environmental fallout of the Northern Gateway project and so the stage is set for a much wider political battle.
Update 3 Joe Oliver statement
Update 2 Statement from Alison Redford
Update 1 Enbridge statement
The government of British Columbia has outlined five what it calls “minimum requirements that must be met for the province to consider the construction and operation of heavy oil pipelines within its borders.”
But at a news conference announcing the conditions, Environment Minister Terry Lake says the province will still not take an official position on the pipeline project itself.
In news release, Premier Christy Clark said, “Our government is committed to economic development that is balanced with environmental protection. In light of the ongoing environmental review by the Joint Review Panel on the Enbridge pipeline project proposal, our government has identified and developed minimum requirements that must be met before we will consider support for any heavy oil pipeline projects in our province. We need to combine environmental safety with our fair share of fiscal and economic benefits.”
We wish to reiterate our commitment to working with governments, including BC, in determining what we can do to further address concerns and to engaging in a dialogue to ensure full understanding of the assessments of risk, the many safety and environmental protection measures in the plan as well as the benefits that would come with the project.
Successful completion of the environmental review process. In the case of Enbridge, that would mean a recommendation by the National Energy Board Joint Review Panel that the project proceed
World-leading marine oil spill response, prevention and recovery systems for B.C.’s coastline and ocean to manage and mitigate the risks and costs of heavy oil pipelines and shipments
World-leading practices for land oil spill prevention, response and recovery systems to manage and mitigate the risks and costs of heavy oil pipelines
Legal requirements regarding Aboriginal and treaty rights are addressed, and First Nations are provided with the opportunities, information and resources necessary to participate in and benefit from a heavy-oil project
British Columbia receives a fair share of the fiscal and economic benefits of a proposed heavy oil project that reflects the level, degree and nature of the risk borne by the province, the environment and taxpayers.
The release says that “any project proposal must be approved through appropriate environmental assessment (EA) processes.”
Pie chart of the “environmental risk” from pipeline projects as released by the government of British Columbia
However, trust for the environmental processes has been falling since Stephen Harper’s government passed Bill C-38 which is designed to fast track approvals and is seen by may in the environmental movement as gutting the review process.
Action plan
The province is also proposing a joint plan of action with the federal government that would include the following elements:
Limits to liability that ensure sufficient financial resources to properly address any spills;
increased federal response capacity;
Full adoption of the Unified Command model;
Strengthened federal requirements on industry for the provision and placement of marine response equipment and infrastructure;
Industry-funded terrestrial (land-based) spill co-operative with sufficient human and technical capacity to manage spill risk from pipelines and other land-based sources;
Increased capacity within the provincial emergency response program to ensure adequate oversight of industry;
A Natural Resources Damage Assessment process to provide certainty that a responsible party will address all costs associated with a spill.
In the release, BC Environment Minister Terry Lake said: “When we consider the prospect of a heavy oil pipeline, and of the increased oil tanker traffic that would result, it is clear that our spill prevention and response plans will require significant improvements. Our government has already initiated discussions with the federal government on improving our response plans and resources,” said Environment Minister Terry Lake. “This represents an opportunity for British Columbia and Canada to develop world-leading environmental protection regimes.”
First Nations
The government release says
The fourth requirement for the B.C. government to consider support for heavy oil pipeline proposals is First Nations participation. Governments in Canada have a duty to consult and accommodate First Nations, and British Columbia is committed to meeting this test. British Columbia has developed a set of tools to help First Nations to partner with industry and participate in economic development. These agreements help to create certainty for development that benefits all British Columbians. British Columbia remains committed to this approach.
“We believe the benefits to First Nations from major pipeline proposals must be clearly identified, along with the measures that will help protect against environmental impacts,” said Aboriginal Relations and Reconciliation Minister Mary Polak. “As recently as last week, such an approach was endorsed by the Canadian Council of CEOs in their report on Aboriginal participation.”
Show me the money
The government is also emphasizing that the province benefit from any heavy oil project:
Lastly, British Columbia must receive a fair share of the fiscal and economic benefits of any proposed heavy oil project. B.C. will shoulder 100 per cent of the risk in the marine environment and a significant proportion of the risk on the land should a spill event ever occur. Current heavy oil project proposals do not balance the risks and benefits for British Columbia.
“We have identified aggressive environmental requirements and principles for First Nations engagement, and we have clearly stated we expect a fair share of the fiscal and economic benefits for our province,” said Premier Clark. “British Columbians are fair and reasonable. We know we need resource and economic development, but we also expect that risks are managed, environmental protection is uncompromised and that generations will benefit from the decisions we make today.”
A pie chart, released by the BC government, showing the economic benefits of pipeline projects
In its release, Enbridge repeated its earlier statements that the company will continue
to reach out and encourage conversation with British Columbians about the project through our website and blogs, community meetings and conversations. We have devoted much effort and resources into consultations with communities, First Nations, and Métis…”
The company went on to say:
Enbridge and the Northern Gateway project team have worked hard to ensure this unique project would be built and operated to the highest standards and has committed to further enhancements to make what is already a safe project even safer.
This project will bring real and tangible benefits to the communities and Aboriginal groups along the proposed route, and to the province of British Columbia as a whole.
Negotiations between Rio Tinto Alcan and Canadian Auto Workers Local 2301 are going down to the wire. The current contact expires Monday, July 23.
The CAW says 96 per cent of members voted in favour of strike action during voting Thursday and Friday. The Local represents 1150 workers at the Alcan smelter. One of the main issues in the negotiations is a reduction in the workforce to 699.
CAW Local 2301 president Rick Belmont said the union received a 72 hour lockout notice this afternoon and the union responded with a strike notice.
RTA spokeperson Colleen Nyce says issuing lockout and strike notice is standard practice during negotiations.
Both sides say negotiations will continue through the weekend.
If there are picket lines it could be a confusing and possibly volatile situation because the Kitimat Modernization Project is on the same site with a work camp full of construction workers on RTA property.
Most construction workers are employed or contracted by Bechtel, the construction contractor and are not members of CAW 2301.
The Haisla Nation has confirmed in a filing with the Northern Gateway Joint Review Panel that it opposes the Enbridge Northern Gateway project.
The document, filed June 29, 2012, is one of the most significant filed with the JRP during all the years of the debate over the controversial Northern Gateway, setting out a three stage process that will govern, whether Enbridge or the federal government like it or not, the future of the Northern Gateway pipeline project.
First, the Haisla Nation affirms that it opposes the Northern Gateway project
Second, the Haisla Nation is demanding that the federal government, in recognition of aboriginal rights and title, reject the Northern Gateway project on Haisla traditional territory.
Third, probably anticipating that Stephen Harper and his government will attempt to force the Northern Gateway on British Columbia, the Haisla are demanding meaningful consultation and set out a stringent set of minimum conditions for the project on Haisla traditional territory.
The Haisla also say that there already projects that are better suited to their traditional territory, the liquified natural gas projects.
The Haisla position that Ottawa must reject the pipeline if First Nations oppose it is the opening round in the constitutional battle over not just the pipeline, but entire question of aboriginal rights and title. So far the government of Stephen Harper has said that First Nations do not have a “veto” on the pipeline and terminal project.
In the filing with the Joint Review panel, the Haisla outline nine reasons for opposition to the Northern Gateway project:
1. Northern Gateway is proposing to site its project in a location that places at risk the ecological integrity of a large portion and significant aspects of Haisla Nation Territory and resources.
2. All three aspects of the proposed project – the pipelines, the marine terminal and tankers – have the potential to impact Haisla Nation lands, waters and resources.
3. Northern Gateway has neither conducted sufficient due diligence nor provided sufficient information with respect to the assessment of a number of critical aspects of the proposed project, including but not limited to project design, impacts, risks, accidents and malfunctions, spill response, potential spill consequences and the extent, degree and duration of any significant adverse environmental effects.
4. There are significant risks of spills of diluted bitumen, synthetic crude, and condensate from corrosion, landslide hazards, seismic events along the pipeline route and at the terminal site; as well asloss of cargo or service fuels from tanker accidents, with no realistic plan provided for spill containment, cleanup, habitat restoration or regeneration of species dependent on the affected habitat.
5. Diluted bitumen, synthetic crude and condensate are all highly toxic to the environment and living systems and the consequences and effects of a spill could be devastating on the resources that support the Haisla Nation way of life, and would therefore have significant adverse effects on Haisla Nation culture and cultural heritage and aboriginal rights.
6. Risk assessments and technology have not overcome the potential for human error, wherein it is well established that 80% of oil tanker accidents that cause oil spills at sea are a result of human errors: badly handled manoeuvres, neglected maintenance, insufficient checking of systems, lack of communication between crew members, fatigue, or an inadequate response to a minor incident
causing it to escalate into a major accident often resulting in groundings and collisions (http://www.black-tides.com/uk/source/oil-tanker-accidents/causes-accidents.php). It has also become increasingly obvious that maintenance of pipeline integrity and the remote detection of pipeline ruptures is inadequate as exemplified by major environmental damage from recent pipeline ruptures in Michigan and Alberta.
7. The proposed project requires the alienation of Haisla Nation aboriginal title land, and the federal government has refused to engage in consultation with the Haisla Nation about the potential impacts of the proposed project on Haisla Nation aboriginal rights, including aboriginal title.
8. The proposed project would require the use of Haisla Nation aboriginal title land for a purpose that is inconsistent with Haisla Nation stewardship principles and with the Haisla Nation’s own aspirations for this land.
9. For the reasons set out above, the proposed project would constitute an unjustified infringement of Haisla Nation aboriginal title and rights. It would therefore be illegal for the Crown to authorize the project.
Canada is obliged to decline approval of the project
Up until now, the federal government has refused to engage First Nations in the northwestern region over the issue of the Northern Gateway pipeline and terminal, saying that the constitutionally mandated consultation will take place after the Joint Review Panel has released its report. However, the government’s Bill C-38, which gives the federal cabinet (actually the prime minister) the power to decide the pipeline means that the JRP report will be less significant than it would have been before the Conservatives gained a majority government in May, 2010.
The Haisla say the nation has “repeatedly requested early engagement by federal government decision-makers to develop, together with the Haisla Nation, a meaningful process for consultation and accommodation in relation to the proposed project.”
The filing says JRP and “the federal government’s ‘Aboriginal Consultation Framework’ have been imposed on the Haisla Nation and other First Nations, with significant aspects of the concerns expressed by the Haisla Nation about this approach being ignored.”
The Haisla says it “continues to seek a commitment from the federal government to the joint development of a meaningful process to assess the proposed project and its potential impacts on Haisla Nation aboriginal rights, including aboriginal title.”
Later in the filing the Haisla say:
The Haisla Nation has… repeatedly asked federal decision-makers to commit to the joint development of a meaningful consultation process with the Haisla Nation. The federal Crown decision-makers have made it very clear that they have no intention of meeting with the Haisla Nation until the Joint Review Panel’s review of the proposed project is complete…
The federal Crown has failed to provide any clarity, however, about what procedural aspects of consultation it has delegated to Northern Gateway. Northern Gateway has not consulted with the Haisla Nation and has not advised the Haisla Nation that Canada has delegated any aspects of the consultation process.
The Haisla then go on to say:
Canada is legally required to work with the Haisla Nation to develop and follow such a process. If the process establishes that the approval of the proposed project would constitute an unjustified infringement of Haisla Nation aboriginal rights or aboriginal title, then Canada would be legally obliged to decline approval.
Deficiencies and Conditions
Enbridge asked the Haisla that if there are conditions of approval that would nonetheless
address, in whole or in part, the Nation’s concerns; and then asked for details “on the nature of any conditions that the Haisla Nation would suggest be imposed on the Project, should it be approved.”
The Haisla reply that because there are “significant deficiencies in the evidence provided by Northern Gateway to date.” The nation goes on to say that “the acknowledged risks that have not been adequately addressed in the proposed project.” The Haisla Nation then says it “does not foresee any conditions that could be attached to the project as currently conceived and presented that would eliminate the Haisla Nation’s concerns.”
The Haisla then repeat that Enbridge has not provided sufficient information so that
it is difficult for the Haisla Nation to identify conditions to attach to the proposed project as it is still trying to fully understand the potential impacts of the project and the proposed mitigation. This is primarily because there is insufficient information provided by Northern Gateway in its application material.
Although we have attempted to elicit additional information through the JRP’s information request process, Northern Gateway has not provide adequate and complete answers to the questions posed.
The Haisla then anticipate that Stephen Harper will force the pipeline and terminal on British Columbia and say:
Nevertheless, if the project were to be approved AFTER the Crown meaningfully
consulted and accommodated the Haisla Nation with respect to the impacts of
the proposed project on its aboriginal title and rights, and if that consultation were
meaningful yet did not result in changes to the proposed project, the following
conditions would, at a minimum, have to be attached to the project.
The emphasis of the word “after” is in the original document.
The document that then goes on to present an extensive list of list of conditions the Haisla believe should be imposed on the Enbridge Northern Gateway if the project goes ahead.
The conditions include comprehensive monitoring of water quality, fisheries, wildlife and birds, vegetation throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel; development of comprehensive spill response capability throughout the Kitimat River Valley, Kitmat Arm and Douglas Channel.
The Haisla also want soil and erosion control plans; water management plans; control and storage plans for fuels, lubricants and other potential contaminants; detailed plans for equipment deployment and habitat reclamation of disturbed or cleared areas.
The Haisla also want much more detailed studies before any construction, including analysis of terrain stability and slide potential throughout the pipeline corridor and at the storage tank and terminal site; engineering designs to mitigate seismic risk and local weather extremes; development of pipeline integrity specifications and procedures including best practices for leak detection; storage tank integrity specifications, maintenance and monitoring; assessment of spill containment, spill response and spill capacity requirements throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel.
On tankers the Haisla want more details beyond the plans already filed by Enbridge including
detailed tanker specifications, detailed tanker and tug traffic management procedures; detailed port management specifications and procedures including operating limits for tanker operation, movement and docking.
The Haisla are also demanding “on going consultation” on all issues involved by the National Energy Board prior to any decision on any changes to or sign off on conditions and commitments to any certificate that is issued.
The Haisla want an independent third party be part of a committee to oversee the construction proecess to monitor certificate compliance during construction of the marine terminal and the pipeline.
Once the pipeline and terminal operational, the Haisla want conditions imposed on the project that include ongoing monitoring of the terrain along the pipeline, a system that would automatically shut down the pipeline shutdown whenever a leak detection alarm occurs.
The Hasila want conditions “on the disposal of any contamination that must be removed as
a result of an accident or malfunction resulting in a spill that will minimize additional habitat destruction and maximize the potential for regeneration of habitat and resources damaged by the spill.”
As well as more detailed parameters for the tankers, tugs, and pilotage procedures, the Haisla want approval of any future changes in those procedures.
The Haisla are also concerned about the “alienation” of a large area of their traditional territory by the construction of the Northern Gateway project as well as the “additional infrastructure” required by adequate spill response capability and spill response equipment cache sites.
The Haisla say “all of the land alienations required for the proposed project would profoundly
infringe Haisla Nation aboriginal title which is, in effect, a constitutionally protected ownership right” and goes on to say “proposed project would use Haisla Nation aboriginal title land in a way that is inconsistent with Haisla Nation stewardship of its lands, waters and resources and with the Haisla Nation’s own aspirations for the use of this land.”
The Haisla filing then goes on to say:
Since aboriginal title is a constitutionally protected right to use the aboriginal title land for the purposes the Haisla Nation sees fit, this adverse use would fundamentally infringe the aboriginal title of the Haisla Nation.
The report also expresses concerns about the ongoing socio-economic affects of such a large project.
It concludes by saying:
These issues are important. They go to the very heart of Haisla Nation culture.
They go to the Haisla Nation relationship with the lands, waters, and resources of
its Territory. A major spill from the pipeline at the marine terminal or from a
tanker threatens to sever us from or damage our lifestyle built on harvesting and
gathering seafood and resources throughout our Territory.
Northern Gateway proposes a pipeline across numerous tributaries to the Kitimat
River. A spill into these watercourses is likely to eventually occur. The evidence
before the Panel shows that pipeline leaks or spills occur with depressing
regularity.
One of Enbridge’s own experiences, when it dumped 3,785,400 liters of diluted
bitumen into the Kalamazoo River, shows that the concern of a spill is real and
not hypothetical. A thorough understanding of this incident is critical to the
current environmental assessment since diluted bitumen is what Northern
Gateway proposes to transport. However, nothing was provided in the application
materials to address the scope of impact, the level of effort required for cleanup
and the prolonged effort required to restore the river. An analysis of this incident
would provide a basis for determining what should be in place to maintain
pipeline integrity as well as what should be in place locally to respond to any spill.
The Kalamazoo spill was aggravated by an inability to detect the spill, by an
inability to respond quickly and effectively, and by an inability to predict the fate
of the diluted bitumen in the environment. As a result, the Kalamazoo River has
suffered significant environmental damage. The long-term cumulative
environmental damage from this spill is yet to be determined.
Looking to the future, the Haisla are also asking for a plan for the eventual decommissioning of the project, pointing out that “ Northern Gateway has not provided information on decommissioning that is
detailed enough to allow the Haisla Nation to set out all its concerns about the
potential impacts from decommissioning at this point in time.”
Haisla leaders have already expressed concern about the legacy of the Eurocan paper plant. Now it tells Enbridge
This is not good enough. The Haisla Nation needs to know how Northern Gateway proposes to undertake decommissioning, what the impacts will be, and that there will be financial security in place to ensure this is done properly.
Asserts aboriginal title
The section of the report concludes by saying:
The Haisla Nation asserts aboriginal title to its Territory. Since the essence of
aboriginal title is the right of the aboriginal title holder to use land according to its
own discretion, Haisla Nation aboriginal title entails a constitutionally protected
ability of the Haisla Nation to make decisions concerning land and resource use
within Haisla Nation Territory. Any government decision concerning lands,
waters, and resource use within Haisla Nation Territory that conflicts with a
Haisla lands, waters or resources use decision is only valid to the extent that the
government can justify this infringement of Haisla Nation aboriginal title.
The Supreme Court of Canada has established that infringements of aboriginal
title can only be justified if there has been, in the case of relatively minor
infringements, consultation with the First Nation. Most infringements will require
something much deeper than consultation if the infringement is to be justified.
The Supreme Court has noted that in certain circumstances the consent of the
aboriginal nation may be required. Further, compensation will ordinarily be
required if an infringement of aboriginal title is to be justified [Delgamuukw].
The Haisla then go on to say that the preferred use of the land in question is for the liquified natural gas projects:
The Haisla Nation has a chosen use for the proposed terminal site. This land
was selected in the Haisla Nation’s treaty land offer submitted to British Columbia
and Canada in 2005, as part of the BC Treaty Negotiation process, as lands
earmarked for Haisla Nation economic development.
The Haisla Nation has had discussions with the provincial Crown seeking to
acquire these lands for economic development purposes for a liquefied natural
gas project. The Haisla Nation has had discussions with potential partners about
locating a liquefied natural gas facility on the site that Northern Gateway
proposes to acquire for the marine terminal. The Haisla Nation sees these lands
as appropriate for a liquefied natural gas project as such a project is not nearly
as detrimental to the environment as a diluted bitumen export project.
Northwest Coast Energy News is attempting to contact Enbridge Northern Gateway for comment on the Haisla filing. Response may be delayed by the Canada Day holiday.
Members of the Northern Gateway Joint Review Panel, left to right, Kenneth Bateman, chair Sheila Leggett and Hans Matthews make notes at the June 25, 2012 hearings at the Haisla Recreation Centre, Kitamaat Village. A map of Douglas Channel can be seen behind the panel. (Robin Rowland/Northwest Coast Energy News)
“This will be the first project in Canadian history to have First Nations, environmentalists and, for a lack of a better term, rednecks standing together in protest,” that sentence from Katherina Ouwehand summed up the first day of public comment testimony Monday, June 25, 2012, as the Northern Gateway Joint Review Panel returned to the Haisla Recreation Centre at Kitamaat Village.
Ten minutes isn’t that long. Ten minutes is the time that the Northern Gateway Joint Review Panel gives a member of the public to express their opinion on the controversial Enbridge project that would pipe oil sands bitumen from Alberta through the port of Kitimat to Asia.
Ten minutes is sufficient if you know what you’re talking about, if you’ve done your homework and rehearsed presentation so it can comes in right on time.
Ten minutes can be eternity if you’re an Enbridge official sitting silently at a nearby table as people who do know what they’re saying tear apart your public presentations, your multi-million dollar ads and the thousands of pages the company has filed with the Joint Review Panel. Or perhaps, as some at the public comment hearings pointed out, those ten minutes mean little if Prime Minister Stephen Harper has already decided the pipeline will go ahead no matter what, and thus any recommendation from the JRP has little credibility.
The first witness to appear before the public comment hearings on Monday afternoon was someone who knows all about the role of human error in accidents, Manny Aruda, an Emergency Response Team leader at the Rio Tinto Alcan smelter.
Aruda began by commenting, “To be clear, I do not belong to any environmental or radical organization, although I do recycle and occasionally I do eat granola.” His responsibilities at RTA include overseeing anything related to an emergency response, including dealing with spills and reporting the spills. Before that he worked at Methanex first in operations as a field operator and then as an ammonia control room operator. He also volunteers as a Search Manager for Kitimat Search and Rescue.
Talking about his time in the control room at Methanex, Aruda said, “I worked in the state-of-the-art chemical plant which is constantly being updated with the newest instrumentation. No matter how many safety features are in place, human error could supersede. Incorrect wires were cut causing plants to shut down; drain lines were left open during start-up causing methanol to go into the effluent system and eventually into the ocean; pigs [robots that operate inside pipes] are used to clean pipelines that were supposed to be collected at the end of a line at the wharf, and over-pressurizing of the line and mental error, leaving a valve open and the next thing you know pigs really do fly right into the ocean.
“Enbridge has spoken many times about how they’ll use smart pigs. Perhaps their smart pigs will know when to put the brakes on and stop.
Humans weak link
“The bottom line is that no matter what state-of-the-art infrastructure, instrumentation, safety
Manny Aruda takes some water after testifying before the Northern Gateway Joint Review Panel at Kitamaat Village, June 25, 2012. (Robin Rowland/Northwest Coast Energy News)
measures are in place human decisions or lack of decisions will affect the outcome. Humans are the weak link.
“There is an enormous pressure from management to keep plants and pipelines running. Control room operators are most at risk on start-ups and shutdowns, when conditions are changing rapidly. When a suspected issue arises it requires interpretation and analytical skills. These skills are relative to the amount of knowledge and experience of the individual.
“When in the control room you can’t see, hear or smell what’s going on outside, this is why the field operator is so valuable and utilized to go out in the field to verify a level, check a pump status, a pressure reading, identify leaks, et cetera.
Despite what some people may believe, it’s not black and white. There’s not a red Staples easy button flashing indicating that a spill is happening.
“When in the control room you can’t see, hear or smell what’s going on outside, this is why the field operator is so valuable and utilized to go out in the field to verify a level, check a pump status, a pressure reading, identify leaks… Despite what some people may believe, it’s not black and white. There’s not a red Staples easy button flashing indicating that a spill is happening.”
Any deviation from normal operations is subject to interpretation by the control room operator, “a human, the weak link,” Aruda said. He added: “Industry can continue to make improvements and make things more and more idiot-proof. History has shown that better idiots will come along.”
He told the JRP that the long Northern Gateway pipeline through remote mountain passes would have no field operators available to check every kilometre of the line to verify what the control room operator thinks is happening.
Like other witnesses, Aruda pointed to the Enbridge spill at Marshall, Michigan, where four million litres were spilled into a river in a populated area. “The spill went unnoticed due to human error,
the weak link.”
He testified that he has spent “hundreds of hours looking at Enbridge’s risk assessment,
management of spills, emergency response,” and then he said from the point of view of an
emergency response team leader, “reading these documents has flabbergasted me.” He said Enbridge’s risk management was “seriously deficient and woefully lacking in substance. They do not take into consideration the rugged terrain, the climatic conditions and dangers of fast flowing moving water.”
He said Talmadge Creek that feeds the Kalamazoo River, the location of the spill in Michigan, flows at much slower rate than the Kitimat River. At Kalamazoo, he said, four million litre oil spill moved 39 miles downstream contaminating everything in its path and it was contained two days later.
“It took Enbridge two days to deal with a meandering Kalamazoo River spill. Enbridge has stated in their risk assessment and management of spills they can contain a spill in the Kitimat River within two to four hours. This is irresponsible and inaccurate statement with no associated details.
It rains a lot in Kitimat
“To be fair, the Marshall spill happened at the worst possible time when the Kalamazoo River flows were at flood stage, causing oil to be deposited high on marshes and banks. This caused widespread contamination in the area. The Kitimat area also has high periods of flows and flood stages. It’s called, May, June, September, October and November. I’m not sure if you’re aware, but it rains here, a lot.
“In a worst-case scenario for the Kitimat River, Aruda said, based on events of September 2011, “heavy rain caused a dramatic increase in river levels within 24 hours. This is a normal occurrence. And the river widens by 75 yards in some locations. I have personally witnessed tree after tree, including 100 foot trees with full root balls 20-feet in diameter barrelling down this river. The Kitimat River flow at that time, 72,000 cubic feet a second, [was] some 18 times more than the Kalamazoo River. There’s not one qualified incident commander that would even consider sending out emergency responders into that raging river.”
He said that even during a moderate rise of the river, booms are not effective because of all the debris floating down the river.
Aruda said, “I invite anyone who thinks this oil spill can be cleaned up effectively to drift down the river with me to see for themselves how impossible a task that would be.” He noted that Enbridge has spent $765 million in clean-up costs, and while some parts of the Kalamazoo River have recently been opend for recreational use, other parts remain closed for clean-up.
He repeated his belief that Enbridge’s response plans are insufficient and concluded by saying, “Other pipelines and transmission lines have succumbed to the forces of nature in this area without any long-term environmental impacts. Sadly, this will not be the case if oil spills here.”
A later witness was Terry Brown, a former project engineer at Eurocan. Brown began by describing his love for sailing the Douglas Channel for the past 28 years. In one instance, Brown said, “ One extra-special night was when the ocean waters were disturbed and the phosphorescence was a glow like fireworks. We were seldom alone on the water as we often saw, heard and smelled seals, sea lions, orcas, and humpback whales, just like a huge aquarium but all to our own and so secluded.
“We not only stayed on the surface but some of our family engaged in scuba diving. What a joy to see so much life, crabs, fish, and shrimp, sea anemones, sea lions and much more. What a gorgeous dive it was as our daughter Stacy and I went down deep on the wall at Coste Rocks to see many different life forms hanging in our view. Later, we circumnavigated the rock and were amazed to see the pure white forms of a large sea anemone.”
Katherina Ouwehand testifies at the Northern Gateway Joint Review hearings as Murray Minchin, the next witness listens, at the Haisla Recreation Centre, Kitamaat Village, June 25, 2012 (Robin Rowland/Northwest Coast Energy News)
Things failed
Like Aruda, he then turned to how things can go wrong. “No matter how hard we tried to do our best, things failed or as they often said, ‘shit happens’. Pipes, gaskets would fail; tanks would collapse; equipment would break. We even had SRBs in our stainless tanks. Many items would fail with such power that it would resemble an explosion.
“Lately, I have heard comments on how new gaskets are much better than old. Our experience was the opposite, as old gaskets contained asbestos they had a much better life span than the new synthetic ones.
“My largest project at Eurocan, a 300-tonne per day CMP pulp mill, actually had 10 — that’s it, 10 major failures within the first one to two years after start-up. During my working time, I was also involved in some of the projects to reduce the tainting of the local oohlican fish. This involves a highly cultural activity that the Haisla engaged in up until Eurocan start up in 1970.
“Over the 10 to 15 years spent looking for a solution, some $100 million was spent on related activities. If this much was spent with no success on a minor issue, if you call it that, how can anyone expect to clean up the beaches of a real nasty oil like dilbit?”
There was a third, highly technical presentation from Kelly Marsh, a millwright with the District of Kitimat (as well as Kitimat Search and Rescue volunteer) who presented his mathematical evidence, based on what he said we standard and accepted models that he said showed that Enbridge has vastly underestimated the chances of spill.
For the first time in public, some voiced in public what many in Kitimat have been saying in private, that if Stephen Harper pushes the project, there will be resistance from the residents of Northwestern British Columbia.
Katherina Ouwehand testified, “I am not a bully and I don’t lose my temper easily, but if this project is given the go-ahead by our Prime Minister, they had better be prepared for a huge fight. My thousands of like-minded friends and I will unite in force and do more than
speak up peacefully. There will be many blockades on the pathways of the pipeline and marine blockades in the channel.”
Murray Minchin, a member of Douglas Channel Watch (although everyone at the public comment hearings are testifying on their own behalf) said, “The original organizers of the Clayoquot Sound clear-cut logging blockades hoped that 500 to 600 people would turn out and help them protest. Over 10,000 showed up and almost 1,000 were arrested. Those numbers will be shattered if this project gets steamrolled through the regulatory process.”
Bill C-38
Many of the witnesses voiced their concerns about the Conservative omnibus Bill C-38 which they said would destroy many of the environmental safeguards in the Fisheries and Environmental Assessment Acts.
Margaret Ouwehand said. “I have a great fear. I am afraid of Enbridge because it represents much more than a pipeline; Enbridge is an enabler of all the things that make us ashamed to be Canadian. Do we want a Canada that endangers the whole world by contributing to global warming?
Do we want a Canada that muzzles scientists who don’t say what the oil companies want them to say? Do we feel proud when Canada puts up roadblocks to treaties with other countries so that oil companies can continue to pollute? Do we really want a Canada that prefers temporary foreign workers to be used and, in many cases, abused, just to provide oil companies with cheap labour? Wouldn’t it be more ethical to encourage immigrants to come to Canada to make permanent homes and actually contribute to the country?
“Once we were proud of Canada’s leadership in protecting the environment, both in Canada and world-wide. Now we have sold out to the highest bidders and by so doing we are jeopardizing our very sovereignty. We cannot enter into agreements to limit pollution because the big oil companies who own our resources won’t allow it.
“Once we were the world’s good guys, the peacekeepers, the ones who were caretakers of the environment and of endangered species. Now it’s all about money. Now we are at the bottom of the heap, along with other money-grubbers of the world.”
Mike Langegger, who has testified at previous National Energy Board and JRP hearings on behalf of the Kitimat Rod and Gun, testified, “Today I wish to speak to the implications of the Northern Gateway Project will have on my and many coastal families who call British Columbia home and the threat it poses to a generations of culture, lifestyle, relying on healthy and productive environment and ecosystems we currently have.
“My family, along with many resident British Columbians have a strong connection to our natural environment and is as much part of us as we are of it. By nature we are hunters and gatherers who have sustainable harvest from our natural environment over the generations providing for our families. Abundant and healthy fish and wildlife populations in environment that sustained their existence is critical and must be guaranteed.
“Unfortunately, over my lifetime I’ve witnessed commercial and industrial exploitation come and go, each diminishing our areas natural environment and its ability to support wildlife and the many associated values. It is critical that not only negative implications of the Northern Gateway Project be considered but also the cumulative effects of current, proposed, and past exploitation that has or is likely to occur in our area. Often a single negative impact can be mitigated. However, when a series of impacts are allowed to compile, the end result has proven to be devastating.
“Today the Dungeness crab and our local estuary area are deemed as contaminated and not recommended for consumption. The oohlican populations have been wiped out on most of our local area streams. The Kitimat River has been negatively impacted by resource extractions rendering it reliant on hatchery augmentation. Trees on the west side of the valley have died off suspect to pollution; wildlife populations have been impacted and the list goes on.
“We have seen industries come and exploit our area and its resources, profit substantially and leave, only to pass on a legacy of toxic sites and compromised environment. What they have not left behind is any established fund for impacted First Nation’s area residents and stakeholders to manage and reinvest back into our environment for the benefit of habitat, fish, wildlife that has been impacted.
“Ultimately, industry in general has been allowed to exploit, profit, and leave without being held accountable for our forest to correct damage. That’s the history we currently witness here.
“For those of us that call coastal British Columbia home, the existing environment, fish, wildlife, and associated values are the foundation of who we are. It is those values that foster and nurture many family bonds and are the result of cherished memories with loved ones and friends. It is those values that provide a healthy lifestyle and food source. It is those values that support numerous traditions and are the base of revered culture. It is those values that the Northern Gateway Project ultimately threatens to extinguish.” Transcript Vol.58-Mon June 25, 2012 (pdf)
The Financial Post is quoting an Apache executive saying that the KM LNG project has been delayed by a year while the company tries to firm up customers for the liquefied natural gas that would be shipped to Asia.
Beleaguered natural gas producers in Western Canada are going to have wait a little longer for relief from severely depressed prices. Janine McArdle, the senior executive in charge of the Kitimat LNG project at Houston-based Apache Corp., said the facility’s planned startup will take an extra year as the company continues to look for firm contracts with buyers in Asia…
The first cargo is now expected to leave Canada in 2017, a year behind the latest plans. The project has regulatory approval, but Apache needs to be sure it has a market for the gas and that the project is economic before taking a final investment decision, Ms. McArdle, senior vice-president for gas monetization at Apache, North America’s largest oil and gas independent producer, said Wednesday.
Reporter Claudia Cattaneo writes that McArdle made the statement “on the sidelines of an industry conference” without giving a location. She is based in Calgary. So far no other media outlet has matched the story.
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.
An anonymous group opposing the Enbridge Northern Gateway pipeline is calling for a demonstration at the site of an oil and gas export conference in Vancouver on May 30 and 31 and asking participants to wear the red square that has become symbolic of the Quebec student protests first against tuition fee hikes and later against Bill 78 aimed at controlling demonstrations in the province.
A notice posted on the website Infoshop News, which describes itself as an anarchist news service, calls for the demonstration at the Four Seasons hotel in Vancouver, site of the Canada Oil and Gas Export Summit. The notice is being widely circulated on Twitter.
The notice adds: “Don’t forget your red squares. Let’s bring the Maple Spring to BC and join Quebec students in opposing the 1% agenda of austerity and environmental destruction.”
Calling the demonstration, “Green Jobs, Not Oil Spills,” the notice says: “On May 30th/31st the 1% are meeting at the Four Seasons hotel for a two day conference to plot their strategy for Exporting raw tar sands bitumen across BC and overseas to China via pipelines and super tankers.”
The website for the Canadian Oil and Gas Export Summit, says “The oil and gas industry is at a critical crossroads and now is the time to take a hard look to alternative outlets for Canadian oil and gas,” meaning alternative markets to the United States. The energy companies are worried about the future of their American market share due to the effect of political gridlock on the US economy and the growing exploitation of American shale gas deposits which are cutting into Canadian export markets.
The site says the conference highlights include:
The latest updates on opening new market opportunities – Moving Canada oil and
gas exports beyond U.S. markets
The impact of the U.S. pipeline decision on the Canadian oil and gas sector
The benefits for Canadian producers to tap into Asian markets and
addressing the perceptions of the two markets
The most cost effective strategies of getting to market in light of opposition
Infrastructure requirements necessary for accessing Canada’s East and West Coast
The legal and regulatory issues surrounding west coast energy corridors, terminals and
shipping in British Columbia
The conference speakers will tackle a large number of hot button issues in BC, from the energy industry point of view: Paul Fisher, vice present, Commercial, Western Access for Enbridge Pipelines speaks on “Exploring Canada’s Ability to Compete in a Global Marketplace.” Gordon Houlden, Director of the China Institute at the University of Alberta, has a talk touching on “Balancing the complexities of unresolved land claims, environmental and infrastructure issues and the economic development of Western Canada.” Tracy Robinson, Vice President Marketing & Sales, Canadian Pacific Railway, speaks on exporting crude by rail. Douglas Ford, of Communica Public Affairs Inc. handles a large number of issues from the PR point of view, including “the regulatory processes related to British Columbia coastal development,” “the complexity of project development in BC vis a vis First Nations,” with advice on “How to effectively engage community, NGOs, and aboriginal stakeholders.” Van Zorbas of Deloitte Canada speaks about the problems from the current labour shortage.
