Northern Gateway announces it will not appeal Appeal Court decision that stopped project approval, will continue “consultations”

 

Northern Gateway pipelines says the company will not appeal the Federal Court of Appeal decision that blocked the approval certificate by the Joint Review Panel and the National Energy Board because there had been insufficient consultation with First Nations.

UPDATE  Vancouver Sun reports Federal government will also not appeal decision

OTTAWA — The federal government is joining Enbridge Inc. in not appealing a Federal Court of Appeal ruling quashing a 2014 Conservative decision to approve the $7.9 billion Northern Gateway pipeline, Postmedia has learned.

 

John Carruthers, President of Northern Gateway said in a news release, “We believe that meaningful consultation and collaboration, and not litigation, is the best path forward for everyone involved. We look forward to working with the government and Aboriginal communities in the renewed consultation process.”

Northerngatewayroutemapdec2012w

Northern Gateway news release

VANCOUVER, Sept. 20, 2016 /CNW/ – Northern Gateway will not appeal a recent Federal Court of Appeal decision that reversed the project’s federal approval certificate. The Federal Court of Appeal found that the National Energy Board’s Joint Review Panel recommendation was acceptable and defensible on the facts and the law. The Court, however, concluded that further Crown consultation is required.

Northern Gateway supports the path outlined by the Federal Court of Appeal for the Federal Government to re-engage with directly affected First Nations and Métis communities to ensure thorough consultation on Northern Gateway is undertaken.

Statement from John Carruthers, President, Northern Gateway:

Ray Philpenko
Northern Gateway’s Ray Philpenko gives a presentation on pipeline leak detection to Kitimat Council, Feb. 17. 2014. (Robin Rowland/Northwest Coast Energy News)

“We believe that meaningful consultation and collaboration, and not litigation, is the best path forward for everyone involved. We look forward to working with the government and Aboriginal communities in the renewed consultation process. We believe the government has a responsibility to meet their Constitutional legal obligations to meaningfully consult with First Nation and Métis. It also reflects the first priority of Northern Gateway and the 31 Aboriginal Equity Partners to build meaningful relationships with First Nation and Métis communities and ensure their voice is reflected in the design of the project.

We believe that projects like ours should be built with First Nation and Métis environmental stewardship, ownership, support, and shared control. Northern Gateway, the Aboriginal Equity Partners, and our commercial project proponents remain fully committed to building this critical Canadian infrastructure project while at the same time protecting the environment and the traditional way of life of First Nation and Métis and communities along the project route.

In order to encourage investment and economic development, Canadians need certainty that the government will fully and properly consult with our nation’s Indigenous communities. We look forward to this process and assisting those communities and the Federal Government with this important undertaking in any way we can.

The economic benefits from Northern Gateway to First Nation and Métis communities are unprecedented in Canadian history. As part of the opportunity to share up to 33 percent ownership and control in a major Canadian energy infrastructure project, the project’s Aboriginal Equity Partners will also receive $2 billion in long-term economic, business, and education opportunities for their communities.

The project would add over $300 billion to Canada’s gross domestic product over the next 30 years, 4,000 construction jobs and 1,000 long-term jobs, $98 billion in tax revenue, and an estimated $100 million investment in community programs and services. Northern Gateway will provide a badly needed multibillion dollar private infrastructure investment in Canada’s future.”

Statement from the Aboriginal Equity Partner Stewards (Bruce Dumont, President, Métis Nation British Columbia; David MacPhee, President, Aseniwuche Winewak Nation; Chief Elmer Derrick, Gitxsan Nation Hereditary Chief; Elmer Ghostkeeper, Buffalo Lake Métis Settlement):

“We support Northern Gateway’s decision to not appeal the recent decision by the Federal Court of Appeal. This is a reflection of the commitment to the new partnership we are building together and their support of meeting Constitutional obligations on government to consult.

The Federal government has publically stated they are committed to reconciliation with First Nation and Métis communities. As such, we are now calling on this same government to actively and fully undertake the required consultation as directed by the Federal Court of Appeal in relation to the Northern Gateway project.

The Aboriginal Equity Partners is a unique and historic partnership that establishes a new model for conducting natural resource development on our lands and traditional territories. We are owners of Northern Gateway and are participating in the project as equals.

Environmental protection remains paramount and as stewards of the land and water, and as partners in this project, First Nation and Métis communities have a direct role in the environmental protection of the lands, waters, and food sources along the pipeline corridor and in marine operations. Our traditional knowledge, science, and values will be used to design and operate land and coastal emergency response to make the project better. We believe with this project there is an opportunity to work together with the Federal Government to improve marine safety for all who live, work, and depend on Canada’s western coastal waters.

This ownership ensures environmental stewardship, shared control, and negotiated business and employment benefits. Collectively, our communities stand to benefit from more than $2 billion directly from this Project.

Our communities need the economic and business benefits that Northern Gateway can bring. We are focused on ensuring our communities benefit from this project and are actively involved in its decision making so we can protect both the environment and our traditional way of life through direct environmental stewardship and monitoring.

Our goal is for Northern Gateway to help our young people to have a future where they can stay in their communities with training and work opportunities. We remain committed to Northern Gateway and the opportunities and responsibilities that come with our ownership. We also remain committed to working with our partners to ensure our environment is protected for future generations.”

 

National Geographic maps Haisla and other First Nations’ traditional territory, pipeline routes and BC ‘s wild salmon

The September issue of National Geographic includes a large map of British Columbia it calls “Claiming British Columbia.”

natgeohaisla3
(National Geographic)

The map has three themes: First Nations’ traditional territory, the routes of proposed pipeline projects, both LNG and diluted bitumen, and it features a sub map that looks at what the map calls the “Troubled Salmon” fishery.

The cartographers at National Geographic are being very careful, avoiding such troubling issues as competing land claims among First Nations, unresolved land claims with the federal and provincial governments and treaty status.

natgeohaisla
(National Geographic)
(National Geographic)
(National Geographic)

So by and large the map groups First Nations by language group unless there are definite treaty or reserve boundaries. Large reserves under the Indian Act are on the map, but given the post stamp size of many reserves in British Columbia, those reserves are too small to be seen on the map. Towns and cities are identified as “First Nations” communities which often overlap with settler communities. Again the map misses many smaller communities, so Kitimat is on the map, while Kitamaat Village is not.

(National Geographic)
(National Geographic)

The map identifies Haisla traditional territory as “Xenaksilakala/Xa”islakala” and also includes the Kitlope Heritage Conservancy Protected area.

The article in the September issue is called The Pacific Coast, but unfortunately there is not much of a tie-in with the map, since it concentrates on California and Alaska with only a passing mention of British Columbia.

On the obverse side of the map is the poster that is promoted on the magazine cover, a beautiful painting of “The Changing Pacific Coast” which covers kelp and every creature from phytoplankton and zooplankton all the way to humpback whales and sea gulls (but for some reason no bald eagles). It is likely that poster will be on display in classrooms up and down the coast before school opens next week.

NEB indefinitely suspends any consideration of Northern Gateway

The National Energy Board has indefinitely suspended its consideration of the $7.9 billion Northern Gateway pipeline project, including the request by Enbridge to extend the deadline for starting the controversial project. The Joint Review Panel conditions had set December 31, 2016 as the time that Enbridge had to start the project.

In a letter to John Carruthers, president of Northern Gateway Pipelines, Sheri Young, secretary to the Board said that suspension came after the Federal Court of Appeal quashed the permission certificates for the project.

As a result of the decisions quashing the Certificates, the Board is suspending indefinitely its consideration of the application to extend the sunset clauses of the Certificates and is not accepting any further comments on it, including comments from Northern Gateway and AEP. The Board is also suspending indefinitely its consideration of all filings related to the conditions attached to the Certificates.

In May the NEB had told Enbridge that is would consider a request by Enbridge to extend the deadline and accept comments from the public until June 27, 2016 and reply comments from the applicants by July 18, 2016.

Cover of JRP ruling
Cover of Volume 2 of the Joint Review ruling on Northern Gateway

In a decision released on 30 June 2016, the Federal Court of Appeal quashed Order in Council P.C. 2014-809 which is the order directing the Board to issue the Certificates for the Project. The Court also quashed the Certificates.

 

The original Joint Review Panel report in December 2013 had set 209 conditions for the construction and operation of the pipeline, which would have carried oil sands bitumen from Bruderheim, Alberta, to Kitimat, for shipment to Asian customers.


Letter to Northern Gateway-Suspension of the sunset clauses-A5D7Z9
(PDF)

Federal Court of Appeal overturns approval of Northern Gateway

In a two to one decision, the Federal Court of Appeal has overturned the Harper government’s approval of the Enbridge Northern Gateway Pipeline, finding that the federal government’s consultation process  with First Nations on the BC coast that occurred after the NEB decision and the Joint Review Panel Report was inadequate, saying:
federalcourtofappeal

We conclude that Canada offered only a brief, hurried and inadequate opportunity in Phase IV—a critical part of Canada’s consultation framework—to exchange and discuss information and to dialogue. The inadequacies—more than just a handful and more than mere imperfections—left entire subjects of central interest to the affected First Nations, sometimes subjects affecting their subsistence and well-being, entirely ignored.

The dissenting judge found that the federal government under Stephen Harper had adequately consulted the First Nations. The split decision means that one of the parties, either the federal government, Enbridge Northern Gateway or the Canadian Association of Petroleum Producers may seek leave to appeal to the Supreme Court of Canada.

Read the decision
Northern Gateway decision  (PDF)

Other Media
Globe and Mail
Appeal court overturns Ottawa’s approval of Northern Gateway pipeline

CBC
Northern Gateway pipeline approval overturned

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.”

“Very low levels” of Exxon Valdez oil threaten salmon and herring survival 25 years later

“Very low levels” of crude oil from the 1989 Exxon Valdez spill in Prince William Sound, Alaska, are a threat to the survival of herring and pink salmon that spawn in the region, according to a study released today by the US National Oceanic and Atmospheric Administration.

The study shows that embryonic salmon and herring exposed to very low levels of crude oil can develop hidden heart defects that compromise their later survival.

That means that the Exxon Valdez spill on March 24, 1989 may have had much greater impacts on spawning fish than previously recognized, according to the study published in  Nature’s online journal  Scientific Reports Very low embyronic crude oil exposures cause lasting defects in salmon and herring.

“These juvenile fish on the outside look completely normal, but their hearts are not functioning properly and that translates directly into reduced swimming ability and reduced survival,” said John Incardona, a research toxicologist at NOAA Fisheries’ Northwest Fisheries Science Center (NWFSC) in Seattle. “In terms of impacts to shore-spawning fish, the oil spill likely had a much bigger footprint than anyone realized.”

This is a juvenile pink salmon exposed to low levels of crude oil as an embryo. While these fish appear outwardly normal, they nevertheless developed heart defects that compromised their ability to swim. Fish that are less able to forage and avoid predators are much less likely to survive to adulthood. (NOAA)
This is a juvenile pink salmon exposed to low levels of crude oil as an embryo. While these fish appear outwardly normal, they nevertheless developed heart defects that compromised their ability to swim. Fish that are less able to forage and avoid predators are much less likely to survive to adulthood. (NOAA)

Previous research has shown that crude oil disrupts the contraction of the fish heart muscle cells. Embryonic fish exposed to trace levels of crude oil grow into juveniles with abnormal hearts and reduced cardiorespiratory function.

“With this very early impact on the heart, you end up with an animal that just can’t pump blood through its body as well, which means it can’t swim as well to capture food, form schools, or migrate,” said Mark Carls, toxicologist at the Alaska Fisheries Science Center. “Crude oil is changing basic physiology, or what makes a fish a fish.”

The research builds on earlier work by the Auke Bay Laboratories, part of NOAA Fisheries’ Alaska Fisheries Science Center, which found much reduced survival of pink salmon exposed as embryos to polycyclic aromatic hydrocarbons (PAH) from crude oil.

“Our findings are changing the picture in terms of assessing the risk and the potential impacts of oil spills,” said Nat Scholz, leader of the NWFSC’s ecotoxicology program and a coauthor of the new study. “We now know the developing fish heart is exquisitely sensitive to crude oil toxicity, and that subtle changes in heart formation can have delayed but important consequences for first-year survival, which in turn determines the long-term abundance of wild fish populations.”

The Exxon Valdez aground on Bligh Reef in Prince William Sound in May 1989. (NOAA)
The Exxon Valdez aground on Bligh Reef in Prince William Sound in March 1989. (NOAA)

The Exxon Valdez spill was the largest in U.S. history, with extensive oiling of shoreline spawning habitats for Pacific herring and pink salmon, the two most important commercial fish species in Prince William Sound.

Herring larvae sampled in proximity to oil were visibly abnormal, and mortality rates were higher for pink salmon embryos at oil spill sites than unaffected regions.

The herring fishery collapsed three to four years after the spill, when the herring spawned in oiled areas reached reproductive maturity.

The paper notes that the contribution of the spill to the herring population collapse, if any, was never determined and remains controversial.

Other studies, however, tend to confirm the findings, including heart problems for fish exposed to the Gulf of Mexico Deepwater Horizon spill and even fish exposed to naturally occurring oil seeps.

Oil spill caused unexpected lethal impact on herring, study shows

Gulf oil spill caused heart defects in fish embryos new study finds

The new findings suggest that the delayed effects of the spill may have been important contributors to the declines.

 This image shows transient embryonic exposures to crude oil cause lasting reductions in the swimming speed of salmon and herring, months after additional juvenile growth in clean seawater. (NOAA)

This image shows transient embryonic exposures to crude oil cause lasting reductions in the swimming speed of salmon and herring, months after additional juvenile growth in clean seawater. (NOAA)

Scientists from the Northwest Fisheries Science Center and Alaska Fisheries Science Center temporarily exposed embryonic salmon and herring to low levels of crude oil from the North Slope of Alaska and found that both absorbed chemicals at similar concentrations in their tissues. The embryos were then transferred to clean seawater and raised as juvenile fish for seven to eight months.

Few of the exposed embryos were outwardly abnormal in any way. However, closer examination of the fish revealed subtle defects that could reduce their long-term survival.

Juvenile salmon exposed to oil grew more slowly, with those exposed to the highest concentrations growing the slowest. For salmon, early survival in the ocean is strongly influenced by juvenile growth, with smaller fish suffering higher loss to predators.

Scientists used swimming speed as a measure of cardiorespiratory performance and found that fish exposed to the highest concentrations of oil swam the slowest. Slower swimming is an indication of reduced aerobic capacity and cardiac output, and likely makes fish easier targets for predators.

Exposure to oil as embryos altered the structural development of the hearts of juvenile fish, potentially reducing their fitness and swimming ability. Poor swimming and cardiac fitness is also a factor in disease resistance.

Earlier studies on the ecosystem-scale crash of the Prince William Sound herring population  several years after the Exxon Valdez spill were based on higher levels of exposure to the oil. The new study shows that that cardiac injury occurs in normal-appearing fish that survive even lower level exposures.

The scientists reviewed data on measured oil concentrations in surface water samples collected in Prince William Sound after the oil spill and during the 1989 herring spawning season. Most of the 233 samples contained less oil than was believed to be toxic to herring at the time, based on visible gross developmental abnormalities. However, nearly all of the samples contained oil at or above concentrations shown in the new study to alter heart development.

If the Exxon Valdez spill impacted heart development among a large majority of fish that were spawned in proximity to oiled shorelines, the subsequent losses of juveniles to delayed mortality would have left fewer adults to join the population. Although not direct proof, this provides a plausible explanation for the collapse of the Prince William Sound herring stock four years later, when fish spawned during the oil spill would have matured.

The study concludes that the impacts of the Exxon Valdez spill on near shore spawning populations of fish are likely to have been considerably underestimated in terms of both the geographic extent of affected habitat and the lingering toxicity of low levels of oil. The findings will likely contribute to more accurate assessments of the impacts of future oil spills, Incardona said. “Now we have a much better idea of what we should be looking for,” he said.

That means, according to the study “that the impacts of the Exxon Valdez oil spill on populations of near shore spawning fish are likely to have been considerably underestimated, in term of both the geographic extent of affected habitats and the lingering toxicity of low levels of residual oil.”

The report calls for more studies of the sensitivity of the developing fish heart since the vulnerability “also has implications for other pollution sources in marine ecosystems, including increasing maritime vessel traffic and expanding land-based urban runoff.”

In 2013, the Northern Gateway Joint Review panel said this about the Exxon Valdez  oil spill.

Scientific studies after the Exxon Valdez spill indicated that the vast majority of species recovered following the spill and that functioning ecosystems, similar to those existing pre-spill, were established.

Species for which recovery is not fully apparent, such as Pacific herring, killer whales, and pigeon guillemots, appear to have been affected by other environmental factors or human influences not associated with the oil spill. Insufficient pre-spill baseline data on these species contributed to difficulties in determining the extent of spill effects.

Based on the evidence, the Panel finds that natural recovery of the aquatic environment after an oil spill is likely to be the primary recovery mechanism, particularly for marine spills. Both freshwater and marine ecosystem recovery is further mitigated where cleanup is possible, effective, and beneficial to the environment.

Natural processes that degrade oil would begin immediately following a spill. Although residual oil could remain buried in sediments for years, the Panel finds that toxicity associated with that oil would decline over time and would not cause widespread, long-term impacts.

Related

25th anniversary of Exxon Valdez disaster looms over Northern Gateway dispute

Photo gallery: Preparing for the Pacific Trail Pipeline

pipelineslashwedeene1bw

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.

Courts, costs stall Northern Gateway

Updated Feb. 26, 2015

Enbridge logoCourt challenges and rising costs will stall the Northern Gateway project for most of 2015, Enbridge says in its Fourth Quarter (2014) Strategic Update, released Friday. That means if the Northern Gatway project actually goes ahead, the company now says it will not be completed until at least 2020 or 2021.

The strategic planning report also contains cryptic references that Enbridge may be planning a second pipeline project to the “west coast” possibly to carry LNG, that could also be completed by 2020 or 2021.

Editor’s Note: Some readers have pointed out that the obscure reference to the second pipeline to the west coast might also refer to the proposed twinning of the Kinder Morgan pipeline to the Lower Mainland.

Enbridge executives made no direct references to Northern Gateway during the conference call marking the release of the company’s 2014 results, nor did financial analysts nor media participants ask any questions about the Northern Gateway, an indication, that for now, the controversial project has dropped off the media and financial radar.

As for a possible new Enbridge pipeline to the British Columbia coast, the strategic planning report notes:

Based on the prospect for higher global LNG demand, the large resource base in western Canada and the changing North American natural gas flow patterns discussed above, there is an increasing probability that additional projects to export LNG from the continental United States or potentially off the west Coast of Canada will proceed. However, a sustained period of low crude oil prices or other changes in global supply and demand for natural gas could delay such opportunities.

Then in the conference call, Guy Jarvis, Enbridge president of Liquids Pipelines, made this reference to a slide that projected Enbridge’s future earnings.

In our base case, which is the green line and which we discussed at Enbridge Day, Keystone XL is in service in 2019 and Energy East plus one of the two West Coast projects is in service in 2020. In this scenario, we are currently chockablock full and we remain full as we bring on the two faces of Alberta Clipper expansion capacity and as we squeeze the last bit of capacity availability out of our system leaving about 200,000 barrels a day of capacity that we can’t get at due to upstream bottlenecks and crude slate versus line allocations.

So that means Enbridge expects one of  two West Coast projects to be online by 2020. One, of course, is Nothern Gateway, the second, perhaps a LNG project now on the drawing boards in Edmonton. If, however, the reference is to Kinder Morgan, that too may be delayed by opposition to that project. Sources indicate that pipeline companies often have various scenarios and plans on backburners that may be activated if market conditions are favourable.

A slide from the Enbridge presentation speaks of "one" west coast pipeline coming into operation in 2020 or 2021  (Enbridge)
A slide from the Enbridge presentation speaks of “one” west coast pipeline coming into operation in 2020 or 2021 (Enbridge)

Northern Gateway

As for Northern Gateway itself, Enbridge’s report on the project is buried deep in the  strategic review, after almost every other project and pipeline the company is working on.

Enbridge begins by noting the history of the twin 1,177-kilometre (731-mile) pipeline system from near Edmonton, Alberta to a new marine terminal in Kitimat, British Columbia. It then mentions the pipline would carry “crude oil for export” from the Edmonton area to Kitimat, fudging that the pipeline would actually carry diluted bitumen. The other pipeline would carry natural gas based condensate back to the oil sands. On June 17, 2014,  the federal government approved the Northern Gateway project subject to the 209 conditions imposed by the Joint Review Panel six months earlier.

First Nations and enviromental groups then filed court challenges to the project.

The report notes that on December 17, 2014, the Federal Court of Canada consolidated all the challenges to Northern Gateway in a single proceeding.

Those challenging the Northern Gateway have until May 22, 2015 to file with the Federal Court the Appellants’ Memoranda of Fact and Law.

Northern Gateway must respond with a Respondents’ Memoranda by June 5, 2015.

The company says the Federal Court hearing will open sometime in the fall of 2015, with a decision possibly late in 2015. Enbridge expects either one side or the other to seek Leave to Appeal to the Supreme Court of Canada which could delay the project into 2016 or 2017.

Current proposed route for the Northern Gateway pipeline. (Enbridge)
Current proposed route for the Northern Gateway pipeline. (Enbridge)

Gateway costs

The report says that in October, 2014, Enbridge began reviewing its cost estimate for Northern Gateway, “based on full engineering analysis of the pipeline route and terminal location.” Now the companys says “the final cost of the project will be substantially higher than the preliminary cost figures included in the Northern Gateway filing with the JRP, which reflected a preliminary estimate prepared in 2004 and escalated to 2010.”

What is raising the cost of Northern Gateway include “significant costs associated with escalation of labour and construction costs” probably due to LNG other projects, as well as satisfying the JRP’s 209 conditions. It appears also that Enbridge is finally actually looking at the costs of building the pipeline over BC’s rugged terrain, “a larger portion of high cost pipeline terrain, more extensive terminal site rock excavations and a delayed anticipated in-service date.”

Enbridge adds: “The updated cost estimate is currently being assessed and refined by Northern Gateway and the potential shippers.”

It may be that Northern Gatway’s future is becoming more precarious, especially with the collapse in world oil prices.

Enbridge notes: “Subject to continued commercial support, receipt of regulatory and other approvals and adequately addressing landowner and local community concerns (including those of Aboriginal communities), the Company now estimates that Northern Gateway could be in service in 2019 at the earliest. The timing and outcome of judicial reviews could also impact the start of construction or other project activities, which may lead to a delay in the start of operations beyond the current forecast.” (The 2020 or 2021 figure came from the conference call and slide presentation, not the strategic report)

Enbridge concludes:

Given the many uncertainties surrounding Northern Gateway, including final ownership structure, the potential financial impact of the project cannot be determined at this time.

The Joint Review Panel certificate granting Enbridge permission to proceed expires, under Condition 2, on December 31, 2016. Under Condition 187, Northern Gateway must assure the JRP and National Energy Board that it has sufficient financial resources to both build the project and to implement all the safety and environmental conditions imposed by the JRP and accepted by Stephen Harper’s cabinet when it approved the project.

Photo op or engagement? How the Harper government failed in the northwest

Bear totem at UNBC
The bear totem at the University of Northern British Columbia, one of the backdrops considered by Natural Resources for an announcement by Joe Oliver. (UNBC)

If anyone wanted a snapshot (or for younger folks a selfie) of why the Harper government grounded out at home, never even getting to first base  with northwestern British Columbia on Northern Gateway and other resource projects, it can be found in about sixty pages of  documents, obtained by Northwest Coast Energy News under the Access to Information Act, documents that outline the planning for former Natural Resources Minister Joe Oliver’s first visit to Terrace in March 2013

  • The documents reveal the priority for Natural Resources communications staff was mainly finding an appropriate First Nations visual backdrop for Oliver’s speech announcing the appointment of Douglas Eyford as special representative to First Nations, the Harper government’s attempt to smooth relations as it dawned on the government that opposition to Northern Gateway wasn’t just going to disappear.
  • Despite years of media coverage from both those opposed to and even those who support the Northern Gateway project that highest priority issue was preventing oil spills whether from tankers or pipelines, the Ottawa-based communications planners in Natural Resources Canada were talking about how aboriginal and non-aboriginal communities could respond to oil spills.
  • For an event that was supposed to engage the First Nations of coastal British Columbia and gain their support for resource projects, all the economic examples are about Alberta First Nations who are working the extraction of bitumen in Alberta, there are no example of how BC First Nations might profit from Northern Gateway (that is if any BC First Nations actually wanted to do so)
  • A visit to Kitimat, the centre of the debate, wasn’t even on the radar in March, 2013, as Joe Oliver, then Minister of Natural Resources, even though Kitimat is just a 40 minute drive from the site of the announcement at the Terrace campus of Northwest Community College.

When Natural Resources Canada started planning Joe Oliver’s announcement they created what was called a “Message Event Proposal” which even in its title shows how the government and the communications staff think. The message is more important than the event.

Northwest Coast Energy News
Finding a background with a First Nations focus was a high priority for Natural Resources Canada in choosing Northwest Community College in Terrace for an announcement by Minister Joe Oliver on March 19, 2013. (Robin Rowland/Northwest Coast Energy News)

The planning documents from Natural Resources, starting on March 5, 2013, indicate that from the beginning the announcement was being treated as a photo op. Invitations to or participation by “stakeholders” are listed as N/A “not applicable,” which meant that meetings, even private meetings, with representatives of northwestern First Nations and other communities either weren’t considered or the communications staff weren’t informed. (If there were such plans they were not part of the access documents released and as far as Northwest Coast Energy News can find out no meetings took place since Oliver left for Ottawa immediately after the announcement)

The documents show that there were no plans to involve "stakeholders" in Joe Oliver's announcement.
The documents show that there were no plans to involve “stakeholders” in Joe Oliver’s announcement.

The Natural Resources communications staff were working on multiple angles in March, as part of what the planning documents call “a suite of events in Vancouver on marine and pipeline safety.”

The first set of those events would eventually take place on March 18, 2013, in Vancouver, and included the announcement, without consulting either Rio Tinto Alcan or the District, that Kitimat’s private port run by Alcan since it was first built would be turned in a federal public port.

The announcement of Eyford’s appointment  would eventually take place at the Waap Galts’ap community long house at Northwest Community College in Terrace on the morning of March 19.

That location certainly wasn’t clear at first. The first documents suggested the announcement take place in Vancouver, and then a day later on March 6, the proposed venue, according to the staff, was in either Prince Rupert or Prince George.

According to the internal e-mails, sometime that week what Ottawa bureaucrats call MINO — the minister’s office– decided that the venue should be Terrace. On March 11, e-mails among Natural Resources staff show that the choice had changed to either Terrace or Prince George.

Since the “special representative” whom we now know would be Douglas Eyford, would report directly to Prime Minister Stephen Harper, the political level was involved.  MINO took over writing Oliver’s speech and the arrangements were copied to the Privy Council Office, the civil service branch that has overall supervision of the federal bureaucrats and works directly with the Prime Minister. So the speech that the communications branch had drafted for Oliver became “can please turn the one we had done for him into the remarks for the new guy?”

Plan B in Prince George

The choice of Terrace left the Natural Resources Ottawa staff hedging their bets, looking for a “potential plan B” in Prince George. The e-mails indicate that Ottawa asked  Natural Resources west coast communications officer for a list of suitable locations in Prince George.

The communications officer replied with three locations at the University of Northern British Columbia “a moving bear totem on campus” the main administration building which the e-mail said “ has a strong First Nations focus,” adding  “Environment Canada has done…events there. Strong FN visuals.” The third choice was “a new bio energy facility that looks industrial.”

Backups were The College of New Caledonia trade centre and the Prince George industrial park.

UNBC adminstration building
Natural Resources Canada also considered the “strong First Nations visuals” at the University of Northern British Columbia administration building. (UNBC)

NRCan email

 

UNBC bioenergy lab
The University of Northern British Columbia’s bioenergy facility. (UNBC)

E-mails from the staff on Wednesday, March 14 and Thursday, March 15, showed while they were now aware the event would be in Terrace, and probably at Northwest Community College, there was still a lot of uncertainty. “We haven’t been able to contact them to confirm, but as soon as we do, we will let you know the exact details as well as what is required in terms of logistics.”

Remembering that Natural Resources and Transport Canada were also planning the Vancouver event on Monday, March 18, it appears that even as Oliver arrived on the morning of March 19, the minister’s staff both political and bureaucratic were still scrambling.

On March 19, the NWCC staff on site were complaining that as soon as the Ottawa delegation saw the standard arrangements for an event at the Waap Galts’ap community long house they ordered the NWCC staff to immediately rearrange the room, so that the podium was in front of one wall with what Oliver’s staff thought was a better First Nations painting. That rearranging was still going on when I arrived to cover the announcement.

Joe Oliver
Joe Oliver tries out a heavy equipment simulator at Northwest Community College on March 19, 2013, prior to his speech. (Robin Rowland/Northwest Coast Energy News)

Even after the furniture was rearranged, the start was delayed as Oliver and his staff disappeared into an upstairs room for a meeting before the news conference began, and Oliver announced Eyford’s appointment.

During the question and answer session with the media during the news conference, the students that had essentially been brought in as props for the photo op and to help promote Northwest Community College’s industrial training program, began to ask questions.

news conference
Joe Oliver listens to a question from a student at the Northwest Community College news conference. (Robin Rowland/Northwest Coast Energy News)

One student asked Oliver if Eyford’s appointment was going to replace “all talks” with First Nations about resource projects. The Natural Resources public relations staff tried to cut off one student, since the national media were waiting on a telephone conference call. To his credit, Oliver did answer the student’s question, saying Eyford’s appointment was not intended to “replace the independent, regulatory review.” He went on to explain the Northern Gateway Joint Review would continue its work and report at the end of 2013.

What was Ottawa thinking? You too, can respond to an oil spill.

If the aim was to engage the First Nations and other residents of northwestern BC, it is clear that the concerns of this region hadn’t reached out Ottawa.

It appears from the planning documents for Joe Oliver’s trip to Terrace, that a main concern of everyone in the northwest, aboriginal and non-aboriginal, opponents and supporters of the Northern Gateway pipeline, preventing oil spills also wasn’t on the government radar, rather it was preparing and responding to oil spills.

Guess who would respond?

As part of the measures to strengthen Canada’s Marine Oil Spill Preparedness and Response Regime, the Government of Canada will strengthen the engagement and involvement of Aboriginal and non-aboriginal communities in preparing for and responding to oil spills.

oilspill

When it comes to a key section on benefits from the Northern Gateway and other resource projects, there is no mention of benefits to British Columbia; rather it appears all the examples of benefits for aboriginal communities come from Alberta, including $1.3 billion in contract work for oil sands companies not including construction, for the year 2010, and $5 billion since 2001. The Message Event Proposal also cites a joint venture between the Bigstone Cree and Bronco Energy, “the biggest oil sands project every undertaken on First Nations reserve lands.”

economicbenefit

Overall the plan was to “Promote Canada’s commitment to achieving its goals under its plan for Responsible Resource Development, including increased consultations with Aboriginal peoples.”

The “media lines’ issued by Natural Resources also outlined the Harper government’s attitude to the Northern Gateway, noting that Eyford’s appointment was independent of the Northern Gateway Joint Review, and went to indicate that the JRP was “conducting a rigorous, extensive, open, science-based assessment.” It adds that “we will continue to rely on the integrity of this process,” again showing how out of touch Natural Resources was (at least in talking points) since by March 2013, there was growing consensus in the northwest that the JRP had lost its credibility.gateway1
gateway2

The media lines also show that the Harper government believed that “Aboriginal consultations are fully integrated into the review process to ensure meaningful consultation occurs,” a position that most First Nations in British Columbia reject, insisting on meaningful consultations between the Crown and the First Nation.

consultation1

When Eyford presented his report to the Prime Minister in December, 2013, Eyford called for stronger action to engage First Nations opposed to new oil and gas pipelines.

“It’s never too late to engage and do so in a process of good faith negotiations… “This won’t be an easy process. I hope my report is perceived as providing objective and blunt advice to all the parties engaged in this process.’’

The 53 page report contained dozens of recommendations mainly concerned with a more open and principled dialogue with First Nations.

“The development of West Coast energy infrastructure provides an opportunity to forge partnerships and build relationships. There is a strong interest and real opportunity for Canada and aboriginal Canadians to more effectively collaborate to address their respective interests.’’

Editor’s note:  On the port issue, an RTA spokesperson noted that talks with the federal government are continuing. He noted that all the Kitimat port facilities are privately owned, by Rio Tinto Alcan or by LNG Canada and there are “multiple stakeholders” involved.

Documents

Natural Resources Media Lines  (pdf)

Natural Resources Message Event Proposal  (pdf)

Forging Trust Douglas Eyford’s final report  (pdf)

Related Links

Joe Oliver makes flying visit, meets Haisla, snubs Kitimat (almost)

Harper government to District of Kitmat Drop Dead

Phil Germuth, Enbridge’s “What the….” moment and what it means for British Columbia

Phil Germuth
Councillor Phil Germuth questions Northern Gateway officials about their plans for leak detection, Feb. 17, 2014 (Robin Rowland/Northwest Coast Energy News)

Enbridge Northern Gateway officials are loath (to put it mildly) to speak to the media but sometimes they let things slip. Earlier this summer, at a social event, I heard an Enbridge official (probably inadvertently) reveal that when the company’s engineers came before District of Kitimat Council earlier this year they were surprised and somewhat unprepared to fully answer the detailed technical questions from Councillor Phil Germuth on pipeline leak detection.

In January, 2015, Phil Germuth will take the centre chair as mayor at the Kitimat Council Chambers.

The results of the municipal election in Kitimat, and elsewhere across BC show one clear message; voters do want industrial development in their communities, but not at any price. Communities are no longer prepared to be drive by casualties for giant corporations on their road to shareholder value.

The federal Conservatives and the BC provincial Liberals have, up until now, successfully used the “all or nothing thinking” argument. That argument is: You either accept everything a project proponent wants, whether in the mining or energy sectors,  or you are against all development. Psychologists will tell you that “all or nothing thinking” only leads to personal defeat and depression. In politics, especially in an age of attack ads and polarization, the all or nothing thinking strategy often works. Saturday’s results, however, show that at least at the municipal level,  the all or nothing argument is a political loser. Where “all politics is local” the majority of people are aware of the details of the issues and reject black and white thinking.

Ray Philpenko
Northern Gateway’s Ray Philpenko gives a presentation on pipeline leak detection to Kitimat Council, Feb. 17. 2014. (Robin Rowland/Northwest Coast Energy News)

The Enbridge official went on to say that for their company observers, Germuth’s questions were a “what the…..” moment.  As in “what the …..” is this small town councillor doing challenging our expertise?

But then Enbridge (and the other pipeline companies) have always tended to under estimate the intelligence of people who live along the route of proposed projects whether in British Columbia or elsewhere in North America, preferring to either ignore or demonize opponents and to lump skeptics into the opponent camp. The Northern Gateway Joint Review Panel also lost credibility when it accepted most of Northern Gateway’s arguments at face value while saying “what the ……” do these amateurs living along the pipeline route know?

Pro Development

“I am pro-development,” Germuth proclaimed to reporters in Kitimat on Saturday night after his landslide victory in his campaign for mayor.

On the issue of leak detection, over a period of two years, Germuth did his homework, checked his facts and looked for the best technology on leak detection for pipelines. That’s a crucial issue here where pipelines cross hundreds of kilometres of wilderness and there just aren’t the people around to notice something is amiss (as the people of Marshall, Michigan wondered at the time of the Line 6B breach back in 2010). Enbridge should have been prepared; Germuth first raised public questions about leak detection at a public forum in August 2012. In February 2014, after another eighteen months of research, he was ready to cross-examine, as much as possible under council rules of procedure. Enbridge fumbled the answers.

So that’s the kind of politician that will be mayor of Kitimat for the next four years, technically astute, pro-development but skeptical of corporate promises and determined to protect the environment.

Across the province, despite obstacles to opposition set up by the federal and provincial governments, proponents are now in for a tougher time (something that some companies will actually welcome since it raises the standards for development).

We see similar results in key votes in British Columbia. In Vancouver, Gregor Roberston, despite some problems with policies in some neighborhoods, won re-election on his green and anti-tankers platform. In Burnaby, Derek Corrigan handily won re-election and has already repeated his determination to stop the twinning of the Kinder Morgan pipeline through his town. In Prince Rupert, Lee Brain defeated incumbent Jack Musselman. Brain, who has on the ground experience working at an oil refinery in India, supports LNG development but has also been vocal in his opposition to Northern Gateway.

The new mayor in Terrace Carol Leclerc is an unknown factor, a former candidate for the BC Liberal party, who campaigned mainly on local issues. In the Terrace debate she refused to be pinned down on whether or not she supported Northern Gateway, saying,  “Do I see Enbridge going ahead? Not a hope,” but later adding, “I’d go with a pipeline before I’d go with a rail car.”

 

election signs
Kitimat election signs. (Robin Rowland/Northwest Coast Energy News)

Plebiscite confirmed

Kitimat’s mayor and council elections also confirm that Northern Gateway plebiscite vote last April. Kitimat wants industrial development but not at the price of the community and the environment. The unofficial pro-development slate lost. A last minute attempt to smear Germuth on social media was quickly shot down by people from all sides of the Kitimat debate. Smears don’t usually work in small towns where everyone knows everyone.

Larry Walker, an environmentalist with a track record in municipal politics as an alderman in Spruce Grove, Alberta, won a seat. Together with Rob Goffinet and Germuth, that is three solid votes for the environment. The other new councillor is Claire Rattee who will be one to watch. Will the rookie be the swing vote as Corinne Scott was?

Mario Feldhoff who came to third to Goffinet in the overall vote (Edwin Empinado was second) is a solid councillor with a strong reputation for doing his homework and attention to detail and the unofficial leader of the side more inclined to support development. Feldhoff got votes from all sides in the community.

During the debates, Feldhoff repeated his position that he supports David Black’s Kitimat Clean refinery. But as an accountant, Feldhoff will have to realize that Black’s plan, which many commentators say was economically doubtful with oil at $110 a barrel, is impractical with oil at $78 a barrel for Brent Crude and expected to fall farther. Any idea of a refinery bringing jobs to Kitimat will have to be put on hold for now.

LNG projects are also dependent on the volatility and uncertainty in the marketplace. The companies involved keep postponing the all important Final Investment Decisions.

There are also Kitimat specific issues to deal with. What happens to the airshed, now and in the future? Access to the ocean remains a big issue. RTA’s gift of land on Minette Bay is a step in the right direction, but while estuary land is great for camping, canoeing and nature lovers, it is not a beach. There is still the need for a well-managed marina and boat launch that will be open and available to everyone in the valley.

Germuth will have to unite a sometimes contentious council to ensure Kitimat’s future prosperity without giving up the skepticism necessary when corporations sit on a table facing council on a Monday night, trying to sell their latest projects. That all means that Germuth has his job cut out for him over the next four years.