Shell, partners, plan giant liquified natural gas project at Kitimat, mayor sees town growing to 15,000 residents

LNG Canada logoShell Canada has confirmed that, with three partners, it is developing a giant proposed liquified natural gas export facility at Kitimat.

The project could see up to 12 million tonnes of LNG exported from Kitimat each year. What the companies are now calling LNG Canada would be built in two “trains” or stages, with each producing six million tonnes. A news release from Shell says there is an option to expand the project beyond the 12 million tonne capacity.

The announcement made international news. The Chicago Tribune said Tuesday. “Kitimat… looks set to become a major supply hub for the Pacific Rim.”

Shell’s partners, Korea Gas Corporation, Mitsubishi Corporation, and PetroChina Company Limited will work to export natural gas, mostly from northeastern British Columbia, combining the “four companies’ extensive development experience, technical depth, financial strength and access to markets required to be the leading LNG developer in Canada.”

The four companies did not say how much money is involved in the project. Reports in the Japanese media said the project could cost as much as $12 billion US.

Shell holds a 40 per cent working interest. The partners KOGAS, Mitsubishi and PetroChina each hold a 20 per cent working interest.

“Our combined expertise, and our focus on technological innovation in delivering safe and environmentally sound LNG projects around the globe, ensures that our LNG Canada project would be well-suited to deliver long-term value for British Columbia and increase access to new export markets for Canada,” says Jose-Alberto Lima, Vice President LNG Americas, Shell Energy Resources Company in a news release.

News releases from both Shell and Petrochina both say:

The proposed LNG Canada project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of liquefied natural gas (LNG), including marine off-loading facilities and shipping. LNG Canada can create significant economic benefit for the province, First Nations, local communities and the region. Such a project can create thousands of jobs during construction and hundreds of full-time, permanent jobs during operations. Such a significant energy project can also bring indirect economic development opportunities to the region.

Shell and PetroChina say:

A decision to move this project into development would be taken after conducting necessary engineering, environmental and stakeholder engagement work with start up around the end of the decade, pending regulatory approvals and investment decisions.
The approval process will begin with a formal consultation process with First Nations and local community residents.

“This project will contribute to a further strengthening of trade relationships between China and Canada and will help China use clean burning natural gas to fuel its economic growth,” Bo Qiliang, Vice President, PetroChina, said in the release.

“We are sitting on the doorstep of a very fast-growing market that actually wants to come to Canada because they see it as long-term stability and a secure source of supply,” Shell Canada president Lorraine Mitchelmore said. “We are now, for the first time in the natural gas industry, very competitive with other countries like Australia.”

Kitimat Mayor Joanne Monaghan said her and the District Council have been working on the project for sometime. “Council have been aware of it and have rolled up their sleeves for almost a year and half to two years,” the mayor said.

Kitimat mayor Joanne Monagahn
Kitimat mayor Joanne Monagahn reads notes on the LNG Canada announcement, May 15, 2012. (Robin Rowland/Northwest Coast Energy News)

One aspect was making sure Kitimat is ready for the project, Monaghan said: “We had to make sure there were hospital facilities, rental facilities, that we had housing available. We were getting all our inventories together. Now we know and now we can go full blast ahead.”

Monaghan hopes that eventually Kitimat will return its population peak of between 10,000 and 15,000 residents. (Since the closure of the Eurocan craft paper mill in 2010, Kitimat’s population dropped to around 8,000 but that number has been growing with the LNG projects and the Rio Tinto Alcan Kitimat Modernization Project, even though the KMP project will eventually mean fewer jobs at the aluminum smelter).

“If they have the five to seven thousand construction workers they’re looking for, they will bring in workers from all over BC, probably all over Canada,” Monaghan said.

Shell purchased the former Methanex plant site and the related Kitimat port terminal last fall, raising worldwide speculation about the LNG project. The Methanex site is now used by Cenovus to transport bitumen condensate by rail from Kitimat to the Alberta oil sands. Much of the old Methanex plant has been decommissioned and is being shipped to a buyer in China.

Most of the natural gas supply will come from the booming Horn River and Montney shale gas formations in northeastern British Columbia.

Reports say that LNG Canada will work with a third party that would build and probably own a pipeline from the northeast to the coat.

The profit picture comes from the fact that LNG prices in Asia, based on a proportion of the world price of oil, are much higher than the price of natural gas in North America, where the shale gas boom has driven gas prices to a record low.

The price boom in Asia could be a windfall for British Columbia, which could receive up to $600 billion in natural gas royalties over the next 25 years.

There is also fierce international competition to send LNG to Asia. The major energy companies are investing heavily in projects in Australia, while traditional suppliers like Qatar and Russia are ramping up their marketing efforts to Asia.

The old Methanex site in Kitimat
The decommissioned Methanex site by the Kitimat River, now owned by Shell. (Robin Rowland/Northwest Coast Energy News)

As of this week, Japan began closing down the last of its nuclear electrical generation capacity. After the March 11, 2011 earthquake, that country became a major customer for current and future liquified natural gas projects.

Since the earthquake last year, two other projects in Kitimat have proceeded. The Kitimat LNG project, a partnership called KM LNG led by Apache Corporation, Encana Corp, and EOG Resources plan to start up a Kitimat LNG plant in 2015, at Bish Cove with an initial capacity of five million tonnes a year. That project has been approved by the National Energy Board but is still waiting for a final go ahead from the boards of the three corporations, expected now in the fourth quarter of 2012.

A second project, called BC LNG, owned by the Haisla Nation in partnership with Houston-based LNG Partners, will act as broker and exporter for other LNG companies, facilitating exports to Asia from a barge based facility at North Cove, with the first shipment expected in 2014 or 2015.

There are also reports that Malaysia’s Petronas in partnership with Calgary-based Progress Energy Resources Corp., which have major stakes in B.C. shale are also looking for a possible LNG terminal on the west coast. As well, Talisman Energy, Nexen and Imperial Oil are also looking at west coast projects.

Related Links

News release from BC Premier Christy Clark Premier Applauds Progress on Kitimat Project: LNG Canada

Mitsubishi news release

More oil leaking from sunken WWII US transport near Hartley Bay, Gitga’at warn

Oil slick in Grenville Channel (Gitga`at First Nation Guardians)
Oil slick in Grenville Channel (Gitga`at First Nation Guardians)

The Gitga’at First Nation at Hartley Bay report that a large oil slick  has been spotted in Grenville Channel near Hartley Bay.  It is believed that the oil is coming from the  USAT Brigadier General M.G. Zalinski, a U.S. army transport ship that sank in 1946 with 700 tonnes of bunker fuel on board.

A news release from the Gitga’at says the oil spill is between  between two and five miles (four to eight kilometres) long and 200 feet wide (70 metres) inside the Grenville Channel.

A Canadian Coast Guard vessel from Prince Rupert is expected in the area sometime this afternoon.

The Gitga’at are sending their own Guardians to take samples and have chartered a plane to take aerial photos of the spill, the release says.

“If this spill is as big as the pilots are reporting, then we’re looking at serious environmental impacts, including threats to our traditional shellfish harvesting areas,” says Arnold Clifton, Chief Councillor of the Gitga’at Nation. “We need an immediate and full clean-up response from the federal government ASAP.”

The USAT Brigadier General M.G. Zalinski was carrying Bunker C when it sank. The First Nation says the Canadian government has been saying it would remove the oil and munitions from the ship since 2006, but with no results.

“Right now we’re focused on getting a handle on the size of the spill and the clean-up that’s required,” says Clifton. “But this incident definitely raises questions about the federal government’s ability to guard against oil spills and to honour its clean-up obligations. As a result, our nation has serious concerns about any proposal to have tankers travel through our coastal waters, including the Enbridge proposal.”

The spill is just the latest in a series of spills of bunker oil and diesel coming from the Zalinski and the BC Ferry Queen of the North, which sank in 2006. Despite government assurances of clean-up, both wreckages continue to leak fuel, fouling the marine environment, and heightening the fear of future oil spills.

The Gitga’at depend on the ocean for 40 per cent of their traditional diet.

According to Wikipedia, the Zalinksi was enroute from Seattle to Whittier Island, Alaska, when it struck rocks at Pitt Island on Grenville Channel 0n September 26 1946, 55 miles (88 kilometres)  south of Prince Rupert. The ship sank within twenty minutes, while her crew of 48 were rescued by the tug Sally N and the passenger steamer SS Catala. According to a report in The Vancouver Sun on  September 30, 1946, at the time of her sinking she was transporting a cargo of at least twelve 500-pound (230 kg) bombs, large amounts of .30 and .50 caliber ammunition, at least 700 tonnes of bunker oil, and truck axles with army type tires.

Oil was first spotted leaking in Grenville Channel in 2003 and the wreck of the Zalinski was identified later that year by a remotely operated undersea vessel.

Hartley Bay is the entrance to Douglas Channel where tankers will go to Kitimat for the proposed Northern Gateway pipeline and three liquified natural gas projects.

 

 

 

 

BC NDP formally opposes Northern Gateway in letter to Joint Review Panel

The British Columbia New Democratic Party has written to the Northern Gateway Joint Review panel formally opposing the controversial pipeline project, while at the same time supporting the Kitimat LNG projects, as long as there are strong environmental controls on those projects.

Adrian Dix
NDP leader Adrian Dix (BC NDP)

A long letter from NDP leader Adrian Dix to the panel concludes by saying

as the Official Opposition, we have carefully weighed the risks and benefits of the NGP to British Columbia, and to Canada. After much consideration and consultation, we have come to the conclusion that the risks of this project far outweigh its benefits. We believe that the NGP will cause significant adverse economic and environmental effects and is not in the public interest. Therefore the NGP should not be permitted to proceed.

The letter also calls on the federal government to legislate a permanent ban on tankers for the west coast. The letter goes over the history of the Exxon Valdez spill

Eight of 11 cargo tanks were punctured, releasing about 258,000 barrels of crude oil, most of which was lost in the first eight hours. There were widespread ecological and economic impacts….To this day, vital shore habitats remain contaminated, the herring fishery has been closed for 15 seasons since the spill, and herring are not considered recovered. The clean-up costs alone are estimated at $3.7 billion…Wildlife and natural resource damages range from $8.5 billion to as high as $127 billion…. Related to the economic hardship felt by families and communities, a wave of social problems followed – alcoholism, high divorce rates and even suicides swept through the Sound’s small towns….

We simply cannot let this happen in British Columbia: the risk is just too great. Therefore, we are calling on the federal government to legislate a permanent moratorium on oil tankers and oil drilling activity on B.C.’s north coast to ensure the ecological integrity and economic and social vitality of the lands and waters of this unique region.

The letter also takes Premeir Christy Clark to task for not taking a stand on the Northern Gateway Issue

The Government of British Columbia agreed to the Joint Review Panel (JRP) process, limiting its ability to give voice to B.C.’s interests. In addition, the Province did not seek government participant status and has failed to exercise its intervenor status to fully represent the interests of British Columbians.

We note that other government agencies including an Alberta municipality, the Province of Alberta and Alberta’s Transportation Ministry, as well as the federal Department of Indian and Northern Affairs, Department of Justice, Environment Canada, Fisheries and Oceans Canada, Natural Resources Canada and Transport Canada have registered as government participants in the JRP.

We also note that the Union of British Columbia Municipalities, and a number of local
governments have passed motions opposing the NGP. These include: the Village of Queen Charlotte, Sandspit, Masset, Port Clements, Prince Rupert, Terrace and Smithers.

As the Official Opposition, we take our responsibility to represent and to protect the interests of British Columbia and British Columbians seriously. We have listened to the concerns and diverse perspectives of constituents throughout the province and we have met with stakeholders and experts about the NGP.

The letter also expresses concern about the fairness of the Joint Review Process

Four New Democrat MLAs are actively participating in the JRP, as intervenors or as presenters. Three of these MLAs represent constituencies that will be directly impacted if the NGP proceeds. The fourth MLA is our environment critic. All of them, like the thousands of other British Columbians who are participating in the JRP, are doing so in good faith.

We are very troubled by statements of the Prime Minister and Minister of Natural Resources that have caused several commentators and JRP participants to question the objectivity of the process and ask if its outcome is predetermined.

Dix is quick to point out that the New Democrats are not against sustainable economic development.

The importance of sustainable economic development International trade and responsible resource extraction are essential to B.C. and Canada’s economy.

International trade creates good-paying jobs and vital communities. To this end, we are committed to building on our tradition of further developing trade relations with China and other Asia Pacific markets to build a strong B.C. economy.

Further, we have been clear about our support for the Kitimat liquefied natural gas project while emphasizing it comes with the serious responsibility to ensure strong environmental protections. We acknowledge that all resource development and extraction has inherent risks.

Other points in the NDP letter were:

  • The tanker traffic to ship Alberta oil to Asian markets will require lifting of the current tanker moratorium and the Tanker Exclusion Zone, and will put the British Columbia coastline at serious risk of devastating environmental and economic damage from potential oil spills;The NGP will traverse remote and highly valued areas of B.C., and will cross almost 800 streams. The risk of spills from the proposed pipeline will put these valuable
    environments and species, such as salmon, at risk;The impact of an oil leak or spill would be most severely felt by First Nation
    communities. As has been affirmed by the Supreme Court of Canada, First Nations must be consulted effectively and be respected on a government-to-government level;• The greenhouse gas emissions generated by NGP-related oil sands development will
    contribute to the economic, social, and environmental costs of climate change;
    The NGP provides few long-term and sustainable economic benefits for British
    Columbia, while shipping raw bitumen forgoes important value-added economic
    development opportunities involving upgrading and refining the oil in Canada;• The NGP is forecast to increase Canadian oil prices for Canadian consumers.

 NDP BC news release 

BC NDP caucus letter to Joint Review Panel (pdf)

NDP BC backgrounder on the Northern Gateway  (pdf)

Cullen to Northern Gateway Joint Review panel, can you justify your existence?

Joint Review Panel at Kitimat
Members of the Northern Gateway Joint Review Panel and Haisla elders stand during the welcome ceremony for the panel at Kitamaat Village, Jan. 10, 2012. After the government announcement that it can overrule any recommendation from the panel, more people are questioning its credibility. (Robin Rowland/Northwest Coast Energy News)

The members of the Northern Gateway Joint Review must now justify their jobs and the existence of the panel, now that the government will likely overrule any recommendations they make about the controversial pipeline, Nathan Cullen, NDP House Leader and MP for Skeena Bulkley Valley said Friday, April 20.

Ever since the Joint Review hearings began in Kitimat in January, witnesses have repeatedly challenged the panel about the fairness of the proceedings, whether or not the panel is rigged in favour of the pipeline and whether or not the government will listen to the panel.

Chair Sheila Leggett has always ruled the questions out of order or cut off the witness.

Now that the government has said that it doesn’t have to abide by any decision or provisions from the Joint Review Panel, Cullen says that the panel members must make it clear where they stand.

“I think it’s a fair question. It was always there though. You’ve been to the hearings, people have been asking the question does any of this matter? Are you guys actually going to listen and is anyone going to listen to you, the panel, is the government going to listen?

“So the question has been out there and unfortunately it’s been confirmed in the negative. I don’t want dissuade people from showing up. Because it is about our voice, it’s about being able to express yourself publicly.”

Cullen said that he believes that people must continue to participate in the hearings, even if they are cut short by the government, because what the Conservatives really want is for people to abandon the political process.

Cullen was answering several questions from northwestern reporters during a regular conference call, where the reporters noted that many residents of the BC northwest are wondering if attending the hearings are worth it.

“This is a forum that we’re paying for, it’s apparently going to continue on. So when I sit in front of the panel, which I’m planning to still do, I’ll have a question for them, which is: ‘Did you know this was coming? And now that it’s happened do you feel that you’re even credible? Do you still exist, if your mandate has been ripped away from you?’

“If I was one of the panel members, those are answers I’d be wanting from the minister, [Minister of Natural Resources] who assigned them all, who appointed them all because they are great and smart people who should be making a decision, [Now] the government doesn’t think they’re so smart after all.

“It’s like ripping a judge off the bench half way through the trial. You must have a reason. Either you don’t like the evidence that was coming forward or you didn’t like the judge or you never believed in the process. I don’t know which one of those are true for the government, but one of them is.

“Things have changed, normally you wouldn’t have a judge asking questions about a judge’s mandate because it is obvious that the judge has authority.

“Well, the judge’s authority just got absolutely stripped away. So is that a question for the judge? I think so.

“I don’t really expect them to answer, they’re going to have to say something to somebody about why they’re still there. Why are we still spending this money if the government is going to listen to science or to the opinions of the people who are impacted?

“The public still has a right to speak , despite what this government thinks. I’ve always said that the people impacted by this project should be the ones making the final decision, and not a prime minister from Calgary,” Cullen said.

“In terms of our voices, I don’t know if it’s in the hearing or in the general discourse of our country, that’s what they want you to do, they want young people to turn away, they want people to say that none of this matters, it’s all very cynical. I am committed to not allow myself to feel that cynicism and just double down in our efforts. It’s about a pipeline, but it’s about so much more. It’s about whether we get to participate in the way our country functions. And we do and we will despite the Conservative view of the world might be.

“It’s a question that everyone who wants to participate will answer for themselves. I think the nature of the forum will change, [now] it’s a way to connect with neighbour with neighbour.”

 

BC approves Pacific Trails Pipeline amendments

Anti-Pacific Trails Pipeline banner
A couple from Vancouver, who refused to give their names, unfurl an anti-Pacific Trails Pipeline banner at the British Columbia legislature in Victoria, Sunday, April 15, 2012. The man said he against all pipelines and that he was supporting the Wet’suwet’en First Nation. About 1,000 people marched through downtown Victoria to oppose the Enbridge Northern Gateway pipeline and coastal tanker traffic. (Robin Rowland/Northwest Coast Energy News)

 

The BC Environmental Assessment Office has approved an application to increase the capacity of the proposed 463 kilometre Pacific Trails Pipeline from the Summit Creek natural gas hub near Prince George to Kitimat.

The $1 billion pipeline project is crucial to the success of the KM LNG liquified natural gas export terminal at Kitimat, a partnership of Apache Corp., Ecana and EOG Resources.

The main thrust of the application was to increase the capacity of the pipeline to 1066.8 mm (42 inch) from the originally proposed 914 mm (36 inch). Pacific Trails will change the location of pump stations since the original proposal was for an import pipeline while now it is for export. There are also minor changes.

The proposal was generally considered pro forma since the main environmental review was completed under the original application approval in 2008 and the BC government was only considering the changes proposed by PTP.

The government report says officials were convinced that Pacific Trails would be able to handle problems with increased traffic and any potential risk involved in drilling under watercourses.

The Haisla submitted a number of technical questions about the impact of the larger pipes. While the BC Assessment office noted in its report that the Pacific Trails Pipeline is generally outside Haisla traditional territory, it is clear from the documentation that one of the Haisla concerns are any impacts on the Kitimat River watershed, as the questions concern the Stuart and Endako Rivers, the Morice and Gosnell Creeks and Weedene and Little Wedeene Rivers. The EAO ruled that the Haisla questions were outside the scope of the amendment or should be addressed in the “permitting process.”

Some Wet’suwet’en houses have been vocal in their opposition to the Pacific Trails Pipeline crossing their traditional territory, The Office of the Wet’suwet’en filed a strong objection to certain parts of the plan.

Given that the Minister of Natural Resources Joe Oliver and the federal government are now working to fast tracking all major resource projects, a comment from David de Wit, Wet’suwet’en natural resources manager is significant:

Fast tracking projects may result in overlooking important details [that] can have detrimental consequences. It is important to point out that the diligence required post-certification to ensure that impacts and effects on important resources are prevented or avoided is not satisfactory. This leaves the burden and legacy of any impacts to be borne by the Wet’suwet’en.

The letter goes on

We have invested considerable time and resources in the BC EAO review only to find that the level of detail required pre-certification leaves far too many unanswered questions critical for ensuring environmental effects and identification of potential infringements to our Title and associated rights from the project are avoided or minimized.

The EAO responded by saying the issues were covered by the original assessment and through the Oil and Gas Commission permit process. The letter from the Wet’suwet’en was, however, passed on to the Executive Director for further consideration

The Pacific Trials Pipeline, also known as the the Summit-to Kitimat pipeline will supply the Kitimat LNG project, a venture of the KM LNG partners, Apache Corp., Encana Corp., Apache Canada and EOG Resources. The $4.5-billion LNG terminal and facility will likely be operational by 2015, depending on how long it takes for the partners to line up Asian buyers.

Documents

BC Environmental Assessment office ruling on Pacific Trails Pipeline  (pdf)

Wet’suwet’en submission to the BC EAO  (pdf)

 

 

Hundreds protest in Victoria to stop the Northern Gateway pipeline and to protect “Mother Earth”

Anti-Enbridge protest in Victoria, April 12, 2012
Hundreds of protesters march down Douglas Street in Victoria, BC, Sunday, April 12, 2012. The Day of Action Against the Enbridge Northern Gateway pipeline, also had a larger aim, organizers said, to protect Mother Earth. (Robin Rowland/Northwest Coast Energy News)

About a thousand people gathered in front of the British Columbia legislature on Sunday, April 12, 2012, for the Day of Action Against the Northern Gateway pipeline. But unlike protests, marches and gatherings here in the northwest of British Columbia, which are often tightly focused on the controversial pipeline and the associated tanker traffic and the potential dangers to northwestern BC, the protests in Victoria had a wider focus.  Speakers on the steps of the legislature spoke, not only of stopping the pipeline and protecting the coast against tanker spills, but also of protecting “Mother Earth” and the wider BC environment.

The speeches on the steps of the legislature began with a group of children from the Oak and Orca Bioregional School in Victoria, who spoke of their fears for the future of the planet.

Lisa MerCure, who spent years searching for First Nations roots, only to discover her Cree family lives in Fort Chipewyan in Northeastern Alberta  and are suffering from cancer. She spoke of the dangers from the bitumen sands development, from the tailing ponds and the effluent in the Athabaska River.

Other First Nations speakers spoke of the dangers to the rivers and coast of northern BC.

The recent announcement that Kinder Morgan would greatly increase the capacity of its pipeline from Alberta to the Vancouver area added new impetus to the protest.

After the rally at the legislature, the protesters marched along Douglas Street to Centennial Park for an afternoon of workshops.

Slideshow  “Our Coast Our Decision” Signs of Protest

 

Protest sign  Our Coast Our Decision

 

 

 

Kinder Morgan announces plans to increase capacity of Trans Mountain pipeline to Vancouver

Trans Mountain pipelne
The Trans Mountain Pipeline (Kinder Morgan)

Kinder Morgan, of Houston, Texas,  said Thursday, April 12, 2012, it plans to proceed with expansion of the Trans Mountain pipeline system from Alberta to the BC Lower Mainland. The company made the announcement after what the energy industry calls an “open season,” a search for customers where it received “strong binding commitments” from existing and new shippers. They pledged commercial support to an additional 660,000 barrels per day of bitumen sands crude from the pipeline. Demand has been high and reports say Kinder Morgan has had to ration petroleum products for its existing customers.

The 20 year commitment from the customers means the pipeline capacity would increase to 850,000 barrels per day from 550,000 barrels. That would make the eventual capacity of the Kinder Morgan pipeline much larger than Enbridge Northern Gateway’s proposed 525,000 barrels per day.

In a release,  Ian Anderson, president of Kinder Morgan Canada said, “We are extremely pleased with the strong commercial support that we received through the open season, which reinforces the appeal of our project and our approach. This strong commercial support shows the market’s enthusiasm for expanding market access for Canadian crude by expanding an existing system.”

Now Kinder Morgan has to get approval from the National Energy Board and acceptance from the local communities along the pipeline route from the Alberta bitumen sands to the terminals and refineries in Vancouver and in Washington state and for tanker export.

“This support from the market better defines the project and enables Kinder Morgan Canada to fully engage the local communities. We are still early in the engagement process of the project,” Anderson said in the release. “We share respectful, open relationships with many communities and organizations interested in our business. We are committed to an 18 to 24 month inclusive, extensive and thorough engagement on all aspects of the project with local communities along the proposed route and marine corridor, including First Nations and Aboriginal groups, environmental organizations and all other interested parties. We will also consider providing financial support to local communities for environmental initiatives. We have been planning for this day for many years and we are keen to start in depth engagement this summer.”

Kinder Morgan says the preliminary scope of the proposed project includes:

 

  • Projected capital cost of approximately $5 billion.
  • Twinning the existing pipeline within the existing right-of-way, where possible.
  • Adding new pump stations along the route.
  • Increasing the number of storage tanks at existing facilities.
  • Expanding the Westridge Marine Terminal.

Anderson added, “We anticipate filing a facilities application initiating a regulatory review with the National Energy Board in 2014. If our application is approved, construction is currently forecast to commence in 2016 with the proposed project operating by 2017.”

In addition to extensive engagement, the company will conduct traditional land use and environmental and socio-economic studies, and undertake detailed engineering and design studies, the release says.

The Trans Mountain proposal, like the Enbridge Northern Gateway pipeline is a “facilities application,” and one uncertainty facing the company will be the highly controversial decision by Stephen Harper’s Conservative government to speed up all future project applications of that type. Environmental groups have already expressed strong opposition to the speed up, while the energy industry has said faster application approval is long over due.

As well as the facilities application, Kinder Morgan says it will file “a commercial tolling application to review the company’s proposed commercial structure for the expansion. This filing, which is anticipated in summer 2012, will seek National Energy Board approval on how the company will charge its customers for transporting their product through the proposed expanded pipeline.”

Kinder Morgan says that for almost 60 years, the 1,150-km Trans Mountain pipeline system has been safely and efficiently providing the only west coast access for Canadian oil products, including about 90 percent of the gasoline supplied to the interior and south coast of British Columbia.

However, the continuing controversy over the Enbridge Northern Gateway and other pipeline projects, together with some accidents including the spill of 100,000 barrels of light crude near Abbotsford, has raised the profile of the Kinder Morgan line and therefore will likely bring more public scrutiny. Any increase in the capacity of the pipeline will also mean more tanker traffic in the already crowded waterways of the Vancouver harbour system and along the west coast.

Last June, Kinder Morgan also proposed the building of second pipeline from the bitumen sands to the west coast, roughly following the route of the Northern Gateway pipeline to Kitimat. There was no mention of that project in today’s announcement.

 

Nuxalk First Nation withdraws as Joint Review intervenor, Heiltsuk hearings end with more controversy

The Nuxalk First Nation at Bella Coola has withdrawn from the Enbridge Northern Gateway Joint Review process. Both the hereditary chiefs and elders and the elected council say the federal government “has already predetermined its approval of the project.”

A release from the Nuxalk says their withdrawal “withdrawal is another sign that the federal government is mishandling its relationship with First Nations, including its statements last week that it will change the rules for the Enbridge pipeline hearings retroactively, which is unfair and will likely further compromise the regulatory review.”

“There is no honour in the federal Crown’s approach to consulting with First Nations on the Enbridge project,” says Andrew Andy, the elected Chief of the Nuxalk Nation. “Recent statements make it clear that the Prime Minister has already decided to approve the super-tanker project that would violate First Nations’ Title and Rights and put our coastal waters at risk of a major oil spill.”

The Nuxalk support the decision of other Nations to oppose the process through the Joint Review Panel, but say the review is not being done in good faith and has been undermined by repeated and controversial public statements by the Prime Minister and Natural Resources Minister that suggest a predetermined approval.

“Despite our serious concern about this process, including the lack of any decision-making role for First Nations, we entered the process in good faith,” says Andy. “The government’s disrespectful behaviour these past months makes clear that our good faith is not being returned.”

“How can we participate in a process driven by a government that has labelled us ‘socially dysfunctional’?” says Charlie Nelson, a Hereditary Chief of the Nuxalk Nation, referring to recent controversial statements by Natural Resources Minister Joe Oliver. “Where is the honour in the Crown stating that it’s prepared to violate our constitutionally-protected Title and Rights before the work of gathering information on the scope of infringement is even done?”

The Nuxalk say the Joint Review Panel has no mandate to consult with First Nations, and there has been no clarity provided by the federal government about how it will consult on issues that fall outside of the Joint Review Panel process.

Meanwhile, hearings in Bella Bella ended on Thursday afternoon, with more controversy as they did at when they opened late on Tuesday. Hearings were delayed after a peaceful community demonstration Sunday against the proposed Enbridge project with drumming and singing at the airport. That delay cut one and half days from the hearings and as they ended today, numerous tweets from Bella Bella described how the Joint Review Panel told the Heiltsuk Chief Counsellor Marilyn Slett to “move on” after which some audience members walked out in protest. Later tweets said that a number of speakers were not able to testify and those tweets called that “shameful.” The tweets say that demonstrators followed Joint Review Panel and staff as they left for the Bella Bella airport.

JRP hearings to resume in Bella Bella Tuesday, Heiltsuk group says

A notice posted on the Heiltsuk Oppose Heiltsuk Oppose Oil Pipelines and Super Oil Tankers Facebook page says the Joint Review Hearings will resume at Bella Bella on Tuesday.

The notice, posted about 4 p.m. Pacific says

As you may have already heard, the JRP has since cancelled our first day of hearings that were supposed to start today, Monday, April 2nd, 2012, due to reason unknown!

We have since received notice that the hearings will commence at 1:00 p.m. Tuesday, April 3rd, 2012. However, we are not sure whether or not the time will be made up to allow all our Heiltsuk Warriors (Witnesses) to present their evidence. Stay tuned for more details!

The Joint Review hearings were cancelled for Monday due to security concerns after the panel members and staff were met by protoestors at Bella Bella airport on Sunday.

Members of the Joint Review Panel met with Heiltsuk elders and leaders during the day to come to an agreement for resumption of the hearings.

So far there has been no confirmation of the resumption of hearings from the Joint Review staff.

Editorial: Pipeline politics are now hyperlocal. Government and energy companies must deal with it.

There’s a glaring misconception in the move by Stephen Harper’s government in Thursday’s budget to speed up the review of resource projects, including the Northern Gateway Pipeline. The government wants reviews to last between 12 and 24 months and to avoid duplication between the federal and provincial governments. The buzzword is “one project, one review.”

The misconception is that natural resource reviews can go on as they have since the 1980s when the deregulation craze made any kind of resource hearing, especially those before the National Energy Board, into a private club for the oil patch, government and energy lawyers. NEB hearings are plagued by arcane rules of procedure and evidence that were, probably in an “out of mind out of sight” way, created to exclude the public. The public, despite the consultation mandates of the review agencies, didn’t really matter a damn. It is likely with the changes brought in by the Harper government, with its vocal hostility to the environmental, the public will matter even less.

A second misconception promoted by the government, by right-wing think tanks and supported by a lot of the media is that the Northern Gateway Joint Review Panel has been sort of hijacked by the green movement with sole purpose of delay, delay, delay.

The problem is that none of these people, not Finance Minister Jim Flaherty, not the Prime Minister, not the columnists, nor academics for universities or think tanks have attended many (or any) of the hearings or read the transcripts. They don’t look at the lists of intervenors, those who have said they want the opportunity for a 10 minute comment or filed letters of comments.

What has changed in just the last five years or so, just as Northern Gateway was getting underway, was the rise of social media, blogging, Facebook, Twitter, YouTube. The widespread use of social media means that despite the efforts of Stephen Harper to stifle opposition, pipeline hearings now and in the future will be governed by —let’s call it the “British Columbia Spring.” If the hearings are curtailed by the government, social media isn’t going away and those opposed to the pipeline will simply find ways to escalate their protests.

It’s not green manipulation that is delaying the hearings, it is that pipeline hearings have become “hyperlocal”* as social media makes everyone aware of what’s going on. That means that each neighbourhood, each village, each block, each wharf now know how a pipeline will affect their lives. This applies to the First Nations across the pipeline route and down the coast; anyone who drives BC’s highways and sees avalanche gates and avalanche warnings; commercial salmon, halibut and herring fishers; the ailing forestry industry. It’s not just BC, it’s a farmer in Nebraska, a rancher in Texas, a homeowner in Michigan, a shrimp fisher in Louisiana. Their worries are available on Google, Facebook, Twitter in a way that wasn’t possible just a few years ago, when stories about NEB hearings were buried in small paragraphs on the back pages of the business section of a newspaper.

Although the right-wing media loves to concentrate on a couple of people from Brazil who may or may not have signed up inadvertently, the vast majority of the 4,000 people who are scheduled to speak before the Joint Review Panel are vitally concerned about strictly local issues. Scheduled to speak is now the operative term because it is likely that the Harper government will cut off the opportunity to speak, and that will only further decrease the already shaky credibility of the Joint Review Panel with the people of British Columbia directly affected by the Northern Gateway.

One of the most perceptive academics in the energy field, economist Andrew Leach (albeit based at the University of Alberta) led a discussion on Twitter opening it with this question

Can anyone provide a single piece of evidence that longer environmental processes, beyond a certain point, yield higher quality evaluation?

Again, no evidence of this beyond a certain pt. Long process often cited as evidence of sound analysis, but two are not same.

IMO, there’s no reason that, w proper resources, you could not fully assess impacts & set appropriate conditions for major projects in 2yrs.

Context: NGP JRP decision is expected now at the end of 2013, roughly 4 years after hearing order issued, but <2 yrs after first hearings.

Leach makes two shaky assumptions.

The first assumption is that the hearings can come up with a quality evaluation and sound analysis. But a quality evaluation, sound analysis for whom? For the private club that the NEB has been for the past quarter century? Sound analysis from a government that muzzles its own scientists and cuts funding for proper research and now wants to have the Canada Revenue Agency harass its environmental opponents? As the responses by First Nations and local groups to the filings by Enbridge show, counter analysis often takes years of research and lots of money. Sound analysis if the opponents are given limited opportunity to respond to a proposal?

The second assumption is that the current and future hearings are going to be fair, independent and transparent. In his conference call yesterday with local reporters, Skeena Bulkley Valley MP Nathan Cullen said the Joint Review and future hearings are “rigged,” predicting that “people won’t stand for this” and it “will only hurt the company it’s supposed to protect.”

The panel has already heard a large number of intervenors in various communities across the northwest tell them directly that the process has no credibility. The decision by the Harper government to speed things can only increase the belief that the hearings are unfair, are rigged, that building the pipeline is a foregone conclusion.

Or quality evaluation for the people directly affected?

Testimony before the Joint Review Panel has been about hyperlocal issues, the state of an estuary, the legacy of the poisoning of a stream by now defunct paper mills, one aboriginal family’s traditional trapline, the shellfish beds polluted by the Queen of the North sinking, the danger to culturally modified trees, the fact that the pipeline will bring no more than a handful of jobs to British Columbia, while endangering thousands fishing and tourism jobs. You might want to call that “Not In My Back Yard” but then the Calgary water supply won’t be out of operation for four years as could happen in a worst case scenario for the Kitimat River in case of a pipeline breach along the river or its tributaries.

If the public believes that future hearings are not “quality evaluation” but rigged in favour of the energy industry, then there will be resistance there as well. What kind of resistance the decision will bring remains to be seen. But that resistance, whatever form it takes will likely also be a factor in any future resource hearings.

Then there is the question of jobs. There just aren’t going to be that many jobs in British Columbia from the Northern Gateway pipeline. First Nations communities, in the unlikely event they agreed to a pipeline, will see no long term benefit from temporary construction jobs. How many Canadian jobs will there be, if the rumours that been circulating in Kitimat for months now are true that PetroChina will build the pipeline? ( recently somewhat confirmed by the Financial Post, although also characterized by Enbridge as speculation)

Don Cayo, writing this morning in the Vancouver Sun says

But the biggest deal in the budget by far, at least as far as the West is concerned, has nothing to do with spending. It is the intention to clean up, at long last, the snarl of red tape that has become such an impediment to development in the resource sector….

it’s a spurious argument to try to link the efficiency of the regulatory process and the fairness of it. “Slow” is not a synonym for “good” nor is “faster” another word for “worse.” It does immense harm to the economy and no good to anyone at all, as history proves, to have a Byzantine process that is obscenely expensive for both the public and private sectors.

Nor is the pipeline the only project in need of fair and reasonably fast assessment. The West in general and B.C. in particular are awash in potential projects — mines, energy developments and more — and we’ll all be better off knowing sooner rather than later which ones are appropriate to move forward.

This simply shows that the advocates of the fast track process don’t get it. They are stuck in the small c conservative mantra of cutting “red tape.” There have been no recent changes in the red tape. The National Energy Board procedures, as I said, are already unfriendly to the ordinary public.

What has changed is that with the web, with social media, the people directly affected, who in the past would have been frozen out of the procedures by lack of communication, are now participating to the fullest extent possible, using information gleaned from the web and empowered by social networks. That isn’t going to change.

As much as the Conservative government believes it control the agenda, and the procedures of the resource hearings, it can’t. All it takes for a hearing to be overwhelmed is a lot of concerned residents, acting on their own, not pushed by ENGOs, prodded by a single e-mail, Tweet or Facebook post.

It may be that the energy industry, a decade from now, will regret what they wished for, a fast track process that is actually bogged down in all the kinds of court challenges that lawyers can work up, regional and municipal zoning barriers, sympathetic bureaucratic delays at the provincial level, civil disobedience, including blockades on land and sea bringing Canada a growing international media black eye, beyond the current impression of the bitumen sands as Mordor. As much as Harper may not like it, if an Oscar-winning star is arrested at a pipeline blockade it will be international news.

To use a a current analogy, with the centenary of the sinking of the Titanic approaching, the Steerage passengers are now demanding a place at the First Class table, along with the haughty oil barons, the high priced lawyers and holier than thou consultants. Stephen Harper and Jim Flaherty may close some of the gates between Steerage and First Class, but eventually the Third Class passengers will find a way to the upper decks.

(Every time someone from Enbridge at a Kitimat meeting says how safe the oil tankers and their escorts will be, one audience member always brings up the Titanic in a question and answer session)

Notes

1. *What is hyperlocal?

Hyperlocal is usually a term in online journalism, referring to coverage of a specific neighbourhood. In some ways, Northwest Coast Energy News, based in Kitimat is a hyperlocal site. That is why it is easy to recognize the hyperlocal nature of those who testify at the Joint Review Hearings. It can be as hyper hyper local as the pipeline crossing a skiing/hiking trail.

For a longer, somewhat academic definition of hyperlocal, the Wikipedia entry may be valuable.

2. Scope creep and dismissing local concerns

In a paper for the conservative C. D. Howe Institute, Leach’s colleague Joseph Doucet, Interim Dean of the University of Alberta School of Business, UnClogging the Pipes; Pipeline Reviews and Energy Policy, complains about what he calls “scope creep” in NEB hearings and says:

It is not simply not efficient or effective to attempt to solve broad, far-reaching societal challenges such as First Nations land claims or greenhouse gas emissions policy through individual project reviews.

and concludes

Regulatory review should focus on relatively narrow project definitions consistent with the impacts of the project , including its relevant costs and benefits and the scope of the activity of the proponent, Other issues, broader and more general in nature should be dealt with in statue or in policy, not in regulatory review.

There is one thing missing in Doucet’s analysis. The “scope of activity” of people directly affected by a pipeline project. What he calls “scope creep” has occurred due to the rise of public awareness due to the web and social media. In his paper, the lives of the local residents and hyperlocal issues are simply written off.

Doucet ignores that fact this government’s policy, while spinning respect for the environmental issues in single paragraphs, is to bulldoze the pipeline across BC, no matter what the consequences. On one hand, the Harper government pushes the pipeline as a gateway to Asian markets. On the other hand, with the $80 million cut to the Department of Fisheries and Oceans, with cuts to Environment Canada and support for independent environmental research, cuts to the Canadian Coast Guard, the policy is clear, the Harper government is ignoring the potential catastrophe from an oil pipeline breach or tanker disaster.

Enbridge Northern Gateway, on the other hand, does have contingency plans for such events, but at meetings in Kitimat, even Enbridge officials have expressed public scepticism about how much government support there could be in the event of a disaster.  In fact, if the Harper government had more respect for the environment and actually had plans to counter a potential disaster, there likely would be less opposition to the Northern Gateway.

The only way to have any check and balance on the Harper bulldozer is to have an effective, thoroughly independent and wide ranging inquiry process, not a narrow one aimed at tweaking regulations.