Council votes to create “working group” on riverbank issues, tables plan to gate access

District of Kitimat Council voted Monday five to two to create a “working group” of “concerned citizens and community groups” to consider the future of riverbank camping along the Kitimat river. The working group will consider issues such as access to the river, pollution and how to control extended camping along the river.

That vote came after council split five to two  again to defeat a motion by Councillor Mary Murphy to stop riverside camping altogether.

A proposal from District staff to put access gates at three locations, the Giant Spruce Road, the Sewage Plant and the Pump House was tabled for the time being. However, the councilors and staff marked the pump house gate as a priority for study by the engineering staff due to concerns that “the risk of fuel, oil and other contaminants (i.e. Illegal dumping ) occurring. This is the source water area for the city’s water supply, reducing access reduces contamination risks.” Staff said that unlike other portions of the riverbank, the District does “have authority under drinking water protection act to protect this area.”

Council also voted to close Hirsh Creek park immediately because the roads at the camping area were washed out by the flood last week.

Councillors noted that many people still go to Hirsch Creek after the gates are closed at the end of the season to walk dogs or hike. This results in a parking jam at the front of the gate and on busy times, cars park on Highway 37 which could endanger pedestrians.

District staff will study moving the park gate down further to a point that the road narrows near the first campsite to allow safe access for dog walkers and hikers.

The main problem facing the District of Kitimat is that most popular sites along the riverbank for campers are on provincially owned Crown land. In 2014, the former BC Liberal government passed a regulation that says people can camp on Crown land for up to 14 days. As some councillors pointed out this restriction regularly abused by some campers who stay on the riverbank for weeks, some apparently camping from Victoria Day to Labour Day.

A detail from the DoK map of who owns the riverbank shows that many of the popular camping sports along the Kitimat River are on provincial Crown land (dark green) while the municipality controls the land away from the riverbank including the access roads (brown). (District of Kitimat)

During the debate it was pointed out that often those camp on the riverbank like to “claim” a camping/fishing spot and try to prevent others from using it. “I know of a couple of fistfights,” Murphy told Council.

As Councillor Rob Goffinet pointed out, whether or not the District could place gates on municipal land to stop access to provincial Crown land would require a legal opinion.

Murphy told Council that she had received emails, blaming Kitimat for “almost drowning” some of the campers. She said that her views may be unpopular among some residents, but added, “I don’t care if I’m unpopular, I want to keep people safe.”

Councillor Larry Walker, who pointed out that he likes of fish along the river, who supported Murphy’s motion told his colleagues to get their act together and “do something about the riverbank.” He later proposed that if council does nothing, perhaps Kitimat should hold a referendum on the future use of the river bank.

The majority on Council were more cautious, while acknowledging problems. They pointed out that the many of the campers both on the east bank and on the west bank at Radley Park patronize local businesses during the summer months.

While there was wide discussion on social media before the council meeting, only three people showed up to give their opinions, mostly concerned about permitting access to the river for people with mobility issues or small children.

There were many comments and questions about how other areas police provincial Crown Land, with some saying that some places restrict access to only a couple of days. However, no one either on Council or staff had any idea of what exactly other locations are doing, if anything.

There were no details of how the working group would operate and who would participate. During the debate it was pointed out that as well as the province, participants would have to include Rio Tinto, LNG Canada and DFO. As well, Council did not set a deadline for the working group to report back.

As Murphy pointed out back in 2014, Fisheries and Oceans refused to attend a Council meeting or make a public presentations on its views of the river bank situation. (DFO snubs District of Kitimat Council for a second time )  while offering to meet with staff “they will continue to meet at an operational level to provide information on DFO’s regulatory role.”  That, of course came during the Stephen Harper administration which severely restricted any public participation by the civil service on environmental issues. Whether the Justin Trudeau government has changed that policy remains to be seen.

The campsite road at Hirsch Creek park was washed out in the flood. (District of Kitimat)

Was the rain storm an anomoly?

During the debate, Mayor Phil Germuth, pointed to the sudden onslaught of rain during Sunday and Monday September 10 and 11 and called it “an anomaly” which means that Kitimat should not overreact to the storm.

Environment Canada chart of the spike in the Kitimat River levels, as presented to District Council. (Environment Canada)

However, as The New York Times pointed out after Hurricane Harvey hit Texas, scientists have been warning for years that

Climate science has repeatedly shown that global warming is increasing the odds of extreme precipitation and storm surge flooding. Refusing to acknowledge this impairs our ability to prepare for future extreme weather and endangers American lives and property.

And another opinion article in the Times during Hurricane Harvey noted:

Scientists can now even evaluate how much climate change has increased the odds of individual extreme events, including rainfall and flooding.

As the 2015 American Meteorological Society report quoted by The Times indicates, those  unpredictable and extreme events don’t just include floods but the widespread forest fires in Alaska in 2014 and we all know how bad the fire season has been in British Columbia this year.

Report on extreme weather events

As Noah Diffenbaugh  of Standford University pointed out in The Times

Being smart about managing exposure and vulnerability is critical to reducing risks. But doing so requires acknowledging that global warming is happening, that humans are the primary cause and that the odds of catastrophes like Hurricane Harvey are increasing.

Petronas “will not proceed” with Prince Rupert LNG project

Petronas Tuesday issued the following news release:

PETRONAS AND PARTNERS WILL NOT PROCEED WITH PACIFIC NORTHWEST LNG PROJECT

Malaysia’s energy company remains committed to developing its gas assets in Canada

KUALA LUMPUR, 26 July 2017 – PETRONAS and its partners have decided not to proceed with the Pacific NorthWest LNG project at Port Edward in British Columbia, Canada.

The decision was made after a careful and total review of the project amid changes in market conditions.

PETRONAS’ Executive Vice President & Chief Executive Officer Upstream, Anuar Taib said, “We are disappointed that the extremely challenging environment brought about by the prolonged depressed prices and shifts in the energy industry have led us to this decision.”

“We, along with our North Montney Joint Venture partners, remain committed to developing our significant natural gas assets in Canada and will continue to explore all options as part of our long-term investment strategy moving forward,” added Anuar.

PETRONAS’ commitment in Canada continues through Progress Energy Canada Ltd and its world-class inventory of natural gas resources where the subsidiary plays a key role in supporting PETRONAS’ growth strategy in North America.

PETRONAS and the project’s partners are thankful for the support received from everyone involved, especially the area First Nations, the District of Port Edward, the City of Prince Rupert and their communities for their invaluable involvement and efforts in the project.

 

LNG Canada looks at possible Final Investment Decision in 18 to 24 months

LNG Canada says the Kitimat liquified natural gas project “has been delayed and not cancelled” with a Final Investment Decision possible in the next 18 to 24 months, Director of External Relations Susannah Pierce  told a company sponsored community pizza party at Riverlodge on Tuesday October 18, 2016.

She paid tribute to the support for the project from Kitimat and the Haisla Nation, saying, “Thanks to you we were very close to have our shareholders take the Final Investment Decision in the New Year,” but she then added, “You also know there were some things we couldn’t control like the state of the marketplace.”

LNG Canada Director of External Relations Sussnnah Pierce updates Kitimat residents on the project at Riverlodge, Tuesday Oct. 18. 2016 (Robin Rowland/Northwest Coast Energy News)
LNG Canada Director of External Relations Susannah Pierce updates Kitimat residents on the project at Riverlodge, Tuesday Oct. 18. 2016 (Robin Rowland/Northwest Coast Energy News)

Pierce used the analogy of someone saving up to buy a car and believing that they have enough money in the bank and then the conditions change. “That is what happened to us,” she said. “You still want the car, but you just have to wait a little longer.”

Pierce said that the current program of site preparation will pause for the winter and holidays in mid-December.  After that “work will begin to wind down over the next few months and then we will preserve the site until we are ready to make the Final Investment Decision.” She said LNG Canada is studying ways to make site preservation cost effective.

“We are doing everything we can to keep our pencils sharp and keep the community informed so that when the project is approved we are ready,” she added.

She pointed out that LNG Canada has already built a fisheries habitat offset in preparation for  full development of the site.

LNG Canada and its partner shareholders are keeping a close eye on the developments of the natural gas market in Asia and Pierce said, “We do expect to be sending LNG to the Asian market in the next decade, so 2023 and beyond is what we’re talking about.”

She said that the Final Investment Decision when it comes will bring opportunities for Kitimat, the province and the whole country.

“Everyone in this room and everyone at LNG Canada is working to make this project real,” Pierce said.

“For those who are staying with us, we’re here, we’re not going anywhere and we’re going to be available to the community for an number of events. Let’s make it happen. We do have a shot at making it real but it may not happen as soon as you’d like it.”

Don’t expect a Final Investment Decision on LNG until (or if) Brexit is resolved

Analysis

Monday’s decision by LNG Canada to postpone the all-important Final Investment Decision for the Kitimat liguified natural gas project came as a momentary shock—but no real surprise. After the Brexit vote, you could see the hold button blinking from across the Atlantic.

Andy Calitz CEO of LNG Canada and a long time, experienced, executive with the lead partner, Royal Dutch Shell blamed the current market conditions for natural gas in both a news release and an investors’ conference call. However, the turmoil in the world economy brought about by Britain’s (largely unexpected) vote to leave the European Union made the postponement inevitable.

Immediately after the vote on June 23, when the now not so United Kingdom voted by 52 per cent to 48 per cent, to leave the European Union, financial analysts predicted that given the uncertainty, companies based in the United Kingdom would immediately begin to adjust their long term planning.

The stock market has stabilized and reached new highs, at least for now, but the British pound remains weak.

Most important, according to reports in the business press around the world, many long term projects by companies not only in the UK but everywhere are being re-examined, postponed or cancelled. All due to the long term uncertainty in world markets.

Even without Brexit, the situation with long term planning for the natural gas market is complicated, as LNG Canada’s External Affairs Director Susannah Pierce explained in this interview on CKNW ‘s Jon McComb show.  ( It is an informative interview. Autoplays on opening the page)

“ Postpone investment decisions”

Royal Dutch Shell is one of the world’s largest corporations. It is based in the United Kingdom although its corporate headquarters are in the Netherlands (also a member of the European Union).

From June 24 to July 11 was just enough time for the bean counters and forecasters in London, Vancouver, Calgary, Tokyo and Beijing to crunch the numbers and decide that the prudent move would be to put the LNG Canada project on hold.

Rio Tinto is also a dual national company, listed on both the London and Australian stock exchanges and with its headquarters in London. (More about Rio Tinto later.)

Although both Shell and Rio Tinto are giant transnationals with operations worldwide, the turmoil in the United Kingdom, in the corridors and cubicles of the home offices, is having a psychological and personal, as well as professional, impact, meaning more of the work in those towers of London will be focused on Brexit.

brexitkitimat

The decision doesn’t mean that the LNG Canada Final Investment Decision will be on hold forever. Of all the world’s energy companies, Shell is one of the oldest and it has a solid reputation for better long term planning than some of its competitors.

In the news release, Calitz noted

I can’t say enough about how valuable this support has been and how important it will be as we look at a range of options to move the project forward towards a positive FID by the Joint Venture participants.

The news release goes on to say

However, in the context of global industry challenges, including capital constraints, the LNG Canada Joint Venture participants have determined they need more time prior to taking a final investment decision. decision.

How much time? Well, as Theresa May became the Prime Minister of Great Britain, the New York Times noted, like other media, that investment decisions are on hold:

Ms. May does not plan to depart the union quickly because it could put Britain’s negotiators under pressure, and at a disadvantage…

And the longer Britain drifts, the greater the uncertainty for businesses that could postpone investment decisions until things are clearer, potentially pushing the nation into a recession.

As Don Pittis, business columnist for CBC.ca wrote in the immediate aftermath:

The extrication of Britain from Europe will likely be more in the character of the Greek financial collapse, a seemingly endless process where each event and each piece of news has the power to set off a new round of financial fears.
And like the Greek crisis, each piece of bad news will compound fears in markets that were nervous for other reasons.

So once (and when) Theresa May invokes Article 50 that opens a two year window for Britain to leave the European Union, starting negotiations for Brexit.   Then it gets complicated, if Scotland votes to leave the United Kingdom or if Northern Ireland also demands a dual referendum in both the Republic and the North on a united Ireland (as permitted under the Good Friday Peace Agreement).

Although May says she will continue to the UK`s next fixed date election, what if May calls a snap general election, with an uncertain outcome, perhaps another minority government, with seats split among several parties, including those who advocate remaining in the EU?

The price of oil is still low compared to a few years ago. That price is expected to remain low with all that the Saudis are pumping to retain market share, the Iranians want to recover from sanctions, and according to Pittis in another column, that means everyone else is pumping as well

The main thrust for Canadian producers is to build more pipelines so they can expand capacity and push ever more of their relatively expensive oil into the world supply chain. If that’s the strategy for high-cost producers, how could anyone think the world’s lower-cost producers wouldn’t be doing the same thing?

There is the glut of natural gas currently in Asian markets and no one knows what Brexit will mean.  Unless there’s a drastic change in the marketplace, energy project investment will remain on hold for years to come. (So forget any dreams of a refinery anywhere on the coast. )

Rio Tinto

Brexit is also going to be a problem for London based Rio Tinto—and for the current negotiations with the Unifor local in Kitimat. Rio Tinto’s bottom line is weak because the price of iron ore, its main source of income, has been dropping. After completing the $4.8 billion Kitimat Modernization Project, Rio Tinto is spending huge amounts of money on its Oyu Tolgoi copper and gold and other minerals mine in Mongolia, a project that many analysts believe could provide up to 60 per cent of Rio Tinto profits as commodity markets recover.

Add to that US presidential election. Donald Trump has threatened to halt imports of both steel and aluminum into the United States if he actually gets to sit in the White House.

On June 29, outgoing President Barack Obama also looked at aluminum at the recent “Three Amigos” summit in Ottawa, noting in the news conference.

Given the flood of steel and aluminum on the global markets, however, it points to the fact that free trade also has to be fair trade.

That means if Hilary Clinton becomes president, she will also be looking at the state of aluminum imports to the United States market.

World conditions are a warning for the Unifor negotiating team in Kitimat. One reason for last year’s prolonged municipal strike was that Unifor spent a good deal of time planning for negotiations with the District but failed to adjust its contract demands when the price of oil unexpectedly collapsed, which meant the District had less money and a lot less flexibility.

In its negotiations with Rio Tinto, Unifor cannot make the same mistake again. There were a handful of unexpected layoffs down at Smeltersite on June 30; there could be more layoffs in the future. Mandatory overtime is a major sticking point—but that overtime demand is coming from the bean counters in Montreal and London, calculating that the overtime costs are, in the long term, less expensive than a lot of new hires.
Media reports show that Rio Tinto is in tough negotiations with its employees around the world. With LNG on hold, disgruntled employees can’t just turn off Haisla Boulevard to the old Methanex site before reaching Rio Tinto’s property line. That means Unifor should be tough but very realistic in its talks with Rio Tinto, knowing that the powers that be that hold the strings in London are more worried about what Brexit will do to the company bottom line than any temporary shutdown of the smelter by a strike.

What does this mean for Kitimat?

A We Want LNG Canada lawn sign in Kitimat. (Robin Rowland/Northwest Coast Energy News)
A We Want LNG Canada lawn sign in Kitimat. (Robin Rowland/Northwest Coast Energy News)

So the boom and bust cycle once again moves to bust.

Ellis Ross, chief councillor of the Haisla First Nation, speaking to CBC Radio said Ross said

the Haisla nation has been working to get its people jobs in the construction of the facility and related infrastructure, as well as full-time jobs once the plant opens…This was our first chance as Haisla to be a part of the economy, to be part of the wealth distribution in our area. To witness the wealth generation in our territory for the last six years but to not be a part of it, and now to continue to not be a part of it, is really distressing to us, because we had built up our entire future around this.

Mayor Phil Germuth in the same interview said

There’s no doubt that there’s going to be a little bit of hurt for a while, but we still fully believe that Kitimat is by far the absolute best location anywhere on the West Coast [for] a major LNG export facility… We are absolutely confident that it will come.

There’s time in this bust for everyone in town to recover from the hangover of the past few years of the fight over Northern Gateway and the heady hopes of the LNG rush. Demand for natural gas is not going to go away, especially as climate change raises the pressure to eliminate coal, so it is likely that LNG Canada will be revived.

It’s time to seriously consider how to diversify the Valley’s economy, making it less dependent on the commodity cycle. It’s time to stop chasing industrial pipe dreams that promise a few jobs that never appear.

Like it or not, the valley is tied to globalization and decisions made half way around the world impact the Kitimat Valley.

Who knows what will happen in 2020 or 2025 when the next equivalent of a Brexit shocks the world economy?

Suppose, as some here would wish, that all the opposition to tankers and pipelines suddenly disappeared overnight. Does that mean that the projects would then go ahead?

The corporate planners would decide based on their projections for the world economy and the viability of the project for their profit picture. Enbridge was never really able to secure customers for its bitumen. Chevron had no customers for Kitimat LNG. LNG Canada is a partnership, and the partner customers in Asia decided that at this time, the investment is too risky, even if LNG Canada’s longer term prospects are good.

Promoting tourism should now be the priority for Council, for Economic Development, for the Haisla Nation Council, for the local business.

Beyond tourism, it’s time for some innovative thinking to come up with other ideas that would free Kitimat from the commodity cycle. At the moment there are no ideas on the horizon, but unless everyone starts looking for new ideas, practical ideas,  the commodity cycle will rule.

LNG Canada postpones Final Investment Decision

LNG Canada has postponed the Final Investment Decision on the Kitimat project citing the “impact of global industry challenges.”  The latest estimates said that the project would cost $40 billion.

The news release says that despite strong community support and regulatory approval,  what LNG Canada called “the context of global industry challenges, including capital constraints” led to the decision. In other words, the continued low price of oil is constraining projects across the energy industry.

LNG Canada’s Joint Venture Participants Delay Timing of Final
Investment Decision

Impact of global industry challenges, despite strong project fundamentals

Vancouver, British Columbia — Today, LNG Canada announces that its joint venture participants –  Shell, PetroChina, Mitsubishi Corporation and Kogas – have decided to delay a final investment decision on LNG Canada that was planned for end 2016.

LNG Canada remains a promising opportunity – it has strong stakeholder and First Nations’ support, has achieved critical regulatory approvals, has important commercial and engineering contracts in place to design and build the project, and through its pipeline partner Coastal Gas Link, has received necessary environmental approvals and First Nations support along the pipeline right-of-way.

“Our project has benefitted from the overwhelming support of the BC Government, First Nations – in particular the Haisla, and the Kitimat community. We could not have advanced the project thus far without it. I can’t say enough about how valuable this support has been and how important it will be as we look at
a range of options to move the project forward towards a positive FID by the Joint Venture participants,” said Andy Calitz, CEO LNG Canada.

Through their efforts to build a strong LNG sector for Canada, and a critical, cleaner energy alternative for the world, the governments of British Columbia and Canada have developed sound fiscal and regulatory frameworks for success.

LNG-Canada-Media-Release0716However, in the context of global industry challenges, including capital constraints, the LNG Canada Joint Venture participants have determined they need more time prior to taking a final investment decision. At this time, we cannot confirm when this decision will be made.

In the coming weeks, LNG Canada will continue key site preparation activities and work with its joint venture participants, partners, stakeholders and First Nations to define a revised path forward to FID.

LNG Canada Joint Venture Participants are Shell (50%), PetroChina (20%), Mitsubishi Corporation (15%)
and Kogas (15%).

Haisla Nation chief councillor Ellis Ross issued a statement that said:

Haisla Nation Council very firmly believes in the future of liquefied natural gas for the Kitimat Valley and Haisla territory. It is an industry which has the capacity to grow jobs, provide new training opportunities and provide a sustained quality of life for Haisla members. It’s worth remembering that LNG Canada is a relatively new project to the area, and decisions on major projects such as these can take a long time to reach.

Today’s decision was the second time the FID was postponed. Andy Caloz LNG Canada’s CEO was quoted by Bloomberg News as saying that the project hasn’t been canceled. It has all the necessary approvals from regulators in Canada and doesn’t require any more work in the country.

“The whole global LNG industry is in turmoil,” Calitz told a conference call, Bloomberg reported, adding that Western Canada still has advantages including its proximity to customers in Asia. “I’m confident that the Japanese market remains available to LNG Canada.”

BC launching major study of Kitimat River, Kitimat Arm water quality

The Environmental Protection Division of BC’s Ministry of Environment is launching a major study of the water quality in the Kitimat valley, first on the Kitimat River and some of its tributaries and later on the Kitimat Arm of Douglas Channel.

There has been no regular sampling by the province in Kitimat since 1995 (while other organizations such as the District of Kitimat have been sampling).

Jessica Penno, from the regional operations branch in Smithers, held a meeting for stakeholders at Riverlodge on Monday night. Among those attending the meeting were representatives of the District of Kitimat, the Haisla Nation Council, LNG Canada, Kitimat LNG, Rio Tinto BC Operations, Douglas Channel Watch, Kitimat Valley Naturalists and the Steelhead Society.

As the project ramps up during the spring and summer, the ministry will be looking for volunteers to take water samples to assist the study. The volunteers will be trained to take the samples and monitored to insure “sample integrity.” Penno also asked the District, the Haisla and the industries in the valley to collect extra samples for the provincial study and to  consider sharing historical data for the study.

With the growing possibility of new industrial development in the Kitimat valley, monitoring water quality is a “high priority” for the province, Penno told the meeting. However, so far, there is no money targeted specifically for the project, she said.

Fishing and camping on the Kitimat River
Camping and fishing on the Kitimat River. (Robin Rowland/Northwest Coast Energy News)

The purpose of the study is to make sure water in the Kitimat valley meet the provinces water quality objectives, which have the aim of watching for degradation of water quality, upgrade existing water quality or protect for designated uses such as drinking water, wildlife use, recreational use and industrial water supplies as well as protecting the most sensitive areas. It also provides a baseline for current and future environmental assessment. (In most cases, testing water quality for drinking water is the responsibility of the municipalities, Penno said.  The province may warn a municipality if it detects potential problems, for example if a landslide increases metal content in a stream).

Under the BC Environment system, “water quality guidelines” are generic, while “water quality objectives” are site specific.

One of the aims is to compile all the studies done of the Kitimat River estuary by the various environmental impact studies done by industrial proponents.

The ministry would then create a monitoring program that could be effectively shared with all stakeholders.

At one point one member of the audience said he was “somewhat mystified” at the role of Fisheries and Oceans in any monitoring, noting that “when you phone them, nobody answers.”

“You mean, you too?” one of the BC officials quipped as the room laughed.

Water quality objectives

The last time water quality objectives were identified for the Kitimat River and arm were in the late 1980s, Penno told the meeting. The objectives were developed by the British Columbia government because of potential conflict between fisheries and industry at that time. The objectives were developed for the last ten kilometres of the Kitimat River and the immediate area around the estuary and the Kitimat Arm. “The Kitimat is one of the most heavily sport fished rivers in Canada,” she said.

However, the work at that time was only provisional and there was not enough water quality monitoring to create objectives that could be approved by the assistant deputy minister.

There has been no monitoring of the Kitimat River by BC Environment since 1995. “We’ve had a lot of changes in the Kitimat region, with the closure of Methanex and Eurocan, the modernization of Rio Tinto and potential LNG facilities.”

The main designated uses for the Kitimat River at that time were aquatic life, wildlife with secondary use for fishing and recreation.

She said she wants the stakeholders to identify areas that should be monitored at first on the river and the tributaries. Later in the summer, Environment BC will ask for suggestions for the estuaries of the Upper Kitimat Arm.

Participants expressed concern that the water supply to Kitamaat Village and the Kitimat LNG site at Bish Cove as well as Hirsch Creek and other tributaries should be included in the study. Penno replied that the purpose of the meeting was to identify “intimate local knowledge” to help the study proceed.

After a decade so of cuts, the government has “only so much capacity,” Penno said, which is why the study needs the help of both Kitimat residents and industry to both design the study and to do some of the sampling.

The original sampling station in the 1980s was at the Haisla Boulevard Bridge in Kitimat. A new sampling station has been added at the “orange” Kitimat River bridge on Highway 37. There is also regular sampling and monitoring at Hirsch Creek. The aim is to add new sampling points at both upstream and downstream from discharge points on the river.

The people at the meeting emphasized the program should take into consideration the Kitimat River and all its tributaries—if budget permits.

Spring freshette

Last year, the team collected five samples in thirty days in during four weeks in May and the first week in June, “catching the rising river quite perfectly” at previously established locations, at the Haisla Bridge and upstream and downstream from the old Eurocan site as well as the new “orange bridge” on the Kitimat River.

The plan calls for five samples in thirty days during the spring freshette and the fall rain and monthly sampling in between.

The stakeholders in the meeting told the enviroment staff that the Kitimat Valley has two spring freshettes, the first in March during the valley melt and later in May during the high mountain melt.

The plan calls for continued discussions with the industry stakeholders, Kitimat residents and the Haisla Nation.

The staff also wants the industrial stakeholders to provide data to the province, some of it going back to the founding of Kitimat if a way can be found to make sure all the data is compatible. One of the industry representatives pointed out, however, that sometimes data is the hands of contractors and the hiring company may not have full control over that data.

There will be another public meeting in the summer, once plans for sampling in the Kitimat Arm are ready.

LNG Canada Kitimat project receives BC facility permit

LNG Canada logoThe Shell-led LNG Canada project in Kitimat has received a facility permit from the B.C. Oil and Gas Commission (OGC), the company said Tuesday.

A news release from LNG Canada says the permit is  one of the key permits required for the construction and operation of the proposed LNG Canada project.

LNG Canada is the first LNG project in British Columbia to receive this permit, which focuses on public and environmental safety, and specifies the requirements the project must comply with when designing, constructing and operating the proposed LNG export facility in Kitimat.

The news release warns “that while today’s announcement is an important step forward for LNG Canada, the project must ensure it is economically viable and meets several other significant milestones including finalizing engineering and cost estimates, supply of labour, and achieving other critical regulatory approvals before making a final investment decision.”

That means that Shell and its partners are still keeping a close eye on factors such as the continuing collapse of the price of oil on world markets,  the volatile natural gas market in Asia and the slowdown in the economy in China.

The news release goes on to  say:

“We have made excellent progress in the past two years, achieving a number of critical milestones,” said Andy Calitz, CEO of LNG Canada. “Receiving our LNG Facility Permit could not have been achieved without the important input we received from the Haisla Nation and the local community of Kitimat. We continue to progress our project and appreciate the ongoing support from First Nations, the local community and other stakeholders.”

“The OGC identified several conditions that must be met by LNG Canada to design, construct and operate the project,” says Calitz. “We have reviewed these conditions and are confident that we will meet these conditions as they are aligned with LNG Canada’s core safety values and commitment to protect the environment, the community and our workers.”

LNG Canada continues to develop a number of important plans to address public safety and minimize the effects on the environment and local community. For example, LNG Canada is working closely with local emergency response organizations, as well as leading safety experts, in the development of an emergency response framework for the proposed project.

“Safety is our first priority. Safety as it relates to people and the environment is embedded into the design and planning of our proposed facility, and will carry into the construction and operation phases of our project should the project go ahead,” said Andy Calitz.

Social and economic benefits from the LNG Canada project include local employment and procurement opportunities, federal, provincial and municipal government revenue and community investments. Since 2012, LNG Canada has distributed more than $1 million to community initiatives, such as emergency services, trades scholarships and community services. LNG Canada has also contributed more than $1.5 million in programs to build awareness and help provide training for trades careers in all industries, and particularly the emerging LNG industry.

LNG Canada is a joint venture company comprised of Shell Canada Energy (50%), an affiliate of Royal Dutch Shell plc, and affiliates of PetroChina (20%), Korea Gas Corporation (15%) and Mitsubishi Corporation (15%). The joint venture is proposing to build an LNG export facility in Kitimat that initially consists of two LNG processing units referred to as “trains,” each with the capacity to produce 6.5 million tonnes per annum of LNG annually, with an option to expand the project in the future to four trains.

 

Haisla celebrate incremental treaty pact with BC, see more traditional lands returned

The Haisla Nation celebrated the signing of an incremental treaty agreement with the British Columbia government Tuesday at the Haisla Recreation Centre in Kitamaat Village. The treaty will see the return of Haisla lands on the shore of Douglas Channel of Lots 305 and 306 south of the Kitamaat Village, designated Indian Reserve #2 and Indian Reserve #3, also known as the Walsh Reserve, thus connecting the two reserves.

In a news release, the BC Ministry of Aboriginal Relations and Reconciliation said that under the agreement, approximately 120 hectares of Crown land will be transferred to the Haisla Nation.

The land lies in the heart of the Haisla Nation territory and will support the community’s goal of expanding housing, commercial and public space for its members, and opening new business opportunities.

The release went on to say, “The agreement continues the productive relationship between the Haisla Nation and B.C., which is furthering economic development opportunities and improving social conditions.”

Map from the treaty agreement showing the lands transferred back to the Haisla Nation. (Ministry of Aboriginal Relations and Reconciliation)
Map from the treaty agreement showing the lands transferred back to the Haisla Nation. (Ministry of Aboriginal Relations and Reconciliation)

It took decades for the land to be returned to the Haisla.

At the ceremony, Allan Donovan, the Haisla’s lawyer said, “We are here to celebrate the achievement of something that should have happened when the Haisla reserves were set aside in 1889. At that point, the reseve commissioner noted the Haisla reserves were the smallest and least desirable in the whole nation.

Allan Donovan began working for the Haisla as a young lawyer and is still representing the Nation. (Robin Rowland/Northwest Coast Energy News)
Allan Donovan began working for the Haisla as a young lawyer and is still representing the Nation. (Robin Rowland/Northwest Coast Energy News)

“But he left it at that, but in the years and decades afterward, the Haisla sought to extend their reserve holdings and their lands and have done so with an increasing degree of success.

“The actual negotiations to see the lands returned actually started over 60 years ago with limited success. But the Haisla are always persistent when it comes to issues of land, when it comes to issues of justice.

“In the 25 years since then there have been a number of attempts over the years This time with Haisla leadership and cooperation from the government of British Columbia, that dream has become a reality. The land has been returned to the rightful owners, joining up these two reserves.

Building goodwill

The ministry said the British Columbia introduced incremental treaty agreements “to help speed up the treaty process by building goodwill among parties and bringing the benefits of treaty faster to First Nations. These agreements also provide increased certainty on the land base and with natural resource development.”

At the ceremony, John Rustad, the Minister of Aboriginal Relations and Reconciliation said that so far the province has signed 18 incremental treaty agreements with various BC First Nations.

“This is a relationship building step between the Haisla Nation and the province, to lay foundations for things we can continue to do in the future,” Rustad said, “Over the past number of years now the Haisla and the province have made great strides and have a very good relationship (at least I believe a very good relationship, … As we move forward in developing our relationship.”

BC Minister of Aboriginal Relations and Reconciliation John Rustad presented Chief Counsellor Ellis Ross with a certificate commemorating the incremental treaty agreement (Robin Rowland/Northwest Coast Energy News)
BC Minister of Aboriginal Relations and Reconciliation John Rustad presented Chief Counsellor Ellis Ross with a certificate commemorating the incremental treaty agreement (Robin Rowland/Northwest Coast Energy News)

Rustad noted that representatives of the Shell-led LNG Canada project, Chevron and AltaGas were at the Recreation Centre to witness the ceremony.

“It’s about embracing those opportunities and ways to find a balance between environment and economics. No one has been better than the Haisla in being able to do that, working with the companies working with the province, working with their neighbors to create opportunity.

“It is through hard work and through partnerships that is truly a path forward toward building a prosperous future.

“We are very proud as a province to be working with the Haisla as a partner,” Rustad said. “We have our difference, we have things we may not agree on but I also believe very strongly that as we work together the steps to ensure prosperity for all of British Columbia but also especially for the prosperity of the Haisla nation This agreement between the Haisla and the province is an example of some of the things we can do right and we can try to correct the situations that have existed for such a long period of time, to find a way to build a prosperous future.”

Stop dwelling on the past

Ellis Ross, the Haisla elected Chief Counsellor told the Haisla and their guests. “It’s time to stop dwelling on the past and start building the future. All the pieces are there Everybody wants to help us get to a better place. Our partners from LNG Canada are here.Chevron is here. It’s everyone working together for the future, to bring the pieces of the puzzle to ensure our future generations.

“We don’t have to beg to be part of the BC agenda. We should be equal particpants.in everything in our territory. That’s what we should be focused on Stop getting distracted with the minor little differences, where infighting stopped us from the promises that have been promsed us for the past forty or fifty years.”

He said the Haisla started working with the Christy Clark government in 2009.

“We both took different approaches to our relationship We both agreed there is a common goal to be achieved if we just put aside our differences. I am not sure how many people know this but the provincial government actually helped us acquire the hospital lands (the site of the old “pink lady” hospital across from the City Centre mall)

“In terms of the water lot that the Haisla own, we’re the only First Nation in Canada that owns water lots and that ‘s because of the provinical government support for us.”

Chief Counsellor Ellis Ross presented BC Minister of Aboriginal Relations and Reconciliation John Rustad with a painting of two paddles, representing how people have to work together to accomplish goals. (Robin Rowland/Northwest Coast Energy News)
Chief Counsellor Ellis Ross presented BC Minister of Aboriginal Relations and Reconciliation John Rustad with a painting of two paddles, representing how people have to work together to accomplish goals. (Robin Rowland/Northwest Coast Energy News)

He also thanked the province for helping the Haisla lease land with an option to purchase near Bish Cove (Beese in traditional Haisla terminology) and worked with the federal government so that the Minette Bay lands could also be added to the reserve lands. He said Haisla staff consult on a regular basis with provincial officials.

“Our staff are working on permits for the benefit of the Haisla as well as everybody else. I think the Haisla are a working definition of what reconciliation actually means and it matters to the average Haisla citizen…

“There are different definitions out there about what reconciliation means. Everyone has a different definition Right how BC and the Haisla are proving that reconciliation is possible without getting into politics.

“It’s agreements like this what we’re talking about today that truly set the stage for the future of the Haisla people.

“We’re not going to be around in a hundred years but in a hundred years the future if Haislas are still talking about the same issues they talked about 50 years ago, we as leaders failed today.

“This is only one of the many agreements that we sign with the provincial govt and with LNG Canada and with Chevron and everybody else that’s willing to sit down and work out some sort of agreement with us.

“In fifty, a hundred years I am sure our descendants won’t be talking about poverty, they won’t be talking about unemployment, they wont be talking about extra land so we can build more houses. they’ll be talking about issues we can’t even understand yet but they won’t be dealing with the issues we’re trying to deal with today.

“What is the next agreement? The only thing that makes this possible is two parties sitting down and saying ‘let’s get an agreement for the betterment of all.’”

The incremental treaty ceremony begins at the Haisla Recreation Centre (Robin Rowland/Northwest Coast Energy News)
The incremental treaty ceremony begins at the Haisla Recreation Centre (Robin Rowland/Northwest Coast Energy News)


Quick Facts:

    • Haisla Nation has approximately 1,840 members, with 700 people living in Kitamaat Village, at the head of Douglas Channel, about 10 kilometres south of Kitimat.
    • The incremental treaty agreement provides for the early transfer land to Haisla Nation, ahead of a final agreement with the Haisla.
    • The Province and Haisla Nation have collaborated on a number of initiatives, including facilitating negotiations for the Haisla to purchase former District of Kitimat hospital lands; the purchase of MK Bay Marina; and transfer of foreshore lots in the Douglas Channel
    • In 2012, Haisla Nation and the Province signed the Haisla Framework Agreement allowing for the purchase or lease of approximately 800 hectares of land adjacent to Indian Reserve No. 6, intended for LNG development. The framework agreement also commits the parties to land-use planning around the Douglas Channel, helping to create certainty and allowing other projects in the area to proceed.
    • Haisla is a member of the First Nations Limited Partnership, a group 16 First Nations with pipeline benefits agreements with the Province for the Pacific Trail Pipeline. Haisla and the Province also have a forestry revenue sharing agreement and a reconciliation agreement.
    • Haisla Nation is a member of Marine Planning Partnership for the North Pacific Coast, which provides recommendations on stewardship and sustainable economic development of the coastal marine environment.
    • Over the past decade, the Haisla Nation has engaged in 17 joint ventures with industries seeking to support economic activity for the region

(Source Ministry of Aboriginal Relations and Reconciliation)

Text of the incremental treaty agreement (Pdf)

Cullen punts leadership questions after Skeena landslide, then calls on NDP to go “back to basics”

Updated with later results. Also , Romeo Saganash of the NDP was declared elected after original publication of this story, so his name has been dropped from the list of NDP stars who lost seats.

 

Skeena Bulkley Valley NDP MP Nathan Cullen retook the riding in landslide in the federal election, Monday October 19.   As one of the party’s  few clear winners in a disastrous night for the NDP, Cullen  immediately had to face questions from local reporters about a possible leadership bid.

As of  noon October 20, with 217 out of 219 polls reporting, Cullen had 51.2 per cent,  11,545 votes ahead of Conservative Tyler Nesbitt with 24.7 per cent and Liberal Brad Layoton with 18.7 per cent.

The Liberals did much better nationally, winning a clear majority, with elected in 184 seats. The Conservative government was knocked back to 99 seats to form the official opposition, while the NDP had to settle for 44 seats. Elizabeth May of the Green Party retained her seat  and the Bloc Quebecois has 10.

Even though current NDP leader Thomas Mulcair said he plans to stay on as leader, the party will certainly review his leadership after the party lost half its seats from the all time high of 95.

The very first question Cullen was asked in a victory teleconference with northwest region  reporters from across the huge riding was about his leadership ambitions. Cullen finished second to Mulcair in the NDP leadership contest three years ago.

“The leadership is the farthest thing from my mind tonight,” Cullen replied. “The first preoccupation I had here was in Skeena and how we would do and that feels very good.”

While Cullen said he was disappointed by the NDP results, he added, “I am encouraged that Mr. Harper’s platform was rejected for a much more progressive one.”  Stephen Harper resigned as Conservative leader after his party’s loss.

Cullen said, “I want to go see my kids again and have a normal meal, maybe. and get off the road. We put almost 20,000 kilometers on the car. It was a long, long campaign. Tonight, I’m focused on phoning my colleagues, old ones and new ones and seeing how everybody’.s doing.”

Asked about his leadership ambitions a  second time  later in the teleconference, Cullen said, “I am not considering any of that right now. I want to go back to my family and my home, maybe hang out with my kids a little bit.I just ran a two and half month campaign, I’m not really looking to run another one right away.”

NDP candidate Nathan Cullne at the Kitimat all candidates meeting, October 8, 2015. (Robin Rowland/Northwest Coast Energy News)
NDP candidate Nathan Cullen at the Kitimat all candidates meeting, October 8, 2015. (Robin Rowland/Northwest Coast Energy News)

Sounding like a leader

At the same time, however, Cullen was sounding like a potential leader, calling on the NDP to get back to basics.

“I think we attempted to tack to the centre on a number of things, particualy fiscal policy,” he said. “This was obviously an election about change and rejection of the Conservative approach,” adding,  “Three weeks ago there was a different narrative and that shows it was a very tumultuous electorate, people were changing their minds,making their minds up late, We just didn’t have that finishing push. maybe the length of the election, contributed to that.”

“We actually suffered from high expectations. To get more than 30 seats, that was [once] considered a real breakthrough. Now going from about a hundred down to the thirties or forties is disappointing.

“We were effective when we were 19. We’ve been able as a caucus to fight for attention on the issues that we’ve considered important. We’re going to have to go back to basics. We have to go back to the real campaign tactics that we’ve used before and can’t rely on the platform of offcial opposition or government to get things done. We’ve had practice at that, we know we’re good at it. We have to rebuild ourselves to be ready in four years time, when we go back to the polls and present alternatives to Canadians, particularly if the Liberals are not able to meet the very high expectations in place right now.”

Asked by one reporter if the result would have been different he had succeeded in his leadership bid, Cullen replied, “That was three years ago [when] I ran. We did better than expected but I was very confident of Tom’s leadership.  And again until a few short weeks ago, many, many people were talking about Tom Mulcair as the next prime minister. The difficult thing about politics; it can go up, it can do down. It’s fate sometimes.”

Northern Gateway “finished”

Turning to local issues, Cullen said that it is now likely the controversial Enbridge Northern Gateway pipeline will be stopped. “The efforts of Enbridge to build their pipleine to Kitimat are finally finished, since the new government has said it will reject it.”

As for the proposed Liquified Natural Gas projects, Cullen said,  “We have to do LNG properly” adding that the Liberals “are a little harder to pin down on LNG” which was not in their national platform, although local Liberal candidate Brad Layton was in favour of LNG development. “So we’ll find out, we’ll find out in the next number of weeks, where they stand as a government.”

Cullen said that on other issues, there was agreement among most candidates in the campaign over revisiting environmental assessment and an inquiry into missing and murdered aboriginal women. One issue that came to the forefront during the campaign, he said, was federal subsidies for northern coastal ferry service.

“We’ve been able to make the concerns and issues we have here in the northwest into national issues, missing and murdered women, Enbridge Northern Gateway and the need to reinvest in our communities,” Cullen said. “They’re all things that I’ve been pushing for, that the Liberal party has now made into their mandate. The real issue isn’t that the issues get raised but whether we hold their feet to the fire or ensuring what they said in the elction is what they actually do in government and that will be the biggest trick with them having that majority.”

Progressive potential for a leader

If the NDP does decide on a leadership review, Cullen is one of the few front bench stars left. Deputy leader Megan Leslie, foreign affairs critic Paul Dewar and incumbents Nycole Turmel, Peter Stoffer, Jack Harris, Andrew Cash, Mathieu Ravignat, and Ève Péclet all lost their seats.

The reasons for the NDP defeat are “going to take a number of days, if not weeks to sort out. There were issues like national pharamcare and our child care plan that didn’t get enough attention,” Cullen said.

“I think there were very negative politics around the niqab Mr. Harper and Mr. Duceppe played that stalled our momentum. I’m very proud of the principled stand the party continued to take, even if it meant costing us votes. We’re not just a party that’s willing to win at all costs at the expensive of our values and our princples. I think some of those distractions and negative politics hurt but it will be in a lot of exit polling and polling in the next few weeks to understand what didn’t go right for us.

“I think the positive thing that we take from this is that the country overwhelmingly decided on progressive platforms, the Liberals presented a program that was broadly progressive. We were not able to outshine them in the broad narrative in the campaign.

“I take some comfort in the fact if anything we were criticized for being too centrist in our fiscal policy. It’s an intereting criticism to make that we were too careful with the books, or too careful with not runing deficits. As for what the party does, that’s a conversation that after any difficult loss, that takes a number of months to happen and that’s natural.

“There is some reflection. I don’t expect to spend a lot of time on that reflective phase. I have a lot of work to do, there’s a lot things we need to do for the northwest and spending too much time navel gazing is not on my agenda for the next months.”

Photo gallery: Preparing for the Pacific Trail Pipeline

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A pile of slash at a quarry site for the Pacific Trail Pipeline near the Little Wedeene River. (Robin Rowland)

Complete photo gallery at my photography site.