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

Trans Mountain pipelne
The Trans Mountain Pipeline (Kinder Morgan)

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

Kitimat council calls on Joint Review Panel, Enbridge to ensure viability of town water supply

District of Kitimat council votes on JRP motion
District of Kitimat Council votes unanimously Apr. 2 to inform the Joint Review Panel about concerns about the town's water supply. (Robin Rowland/Northwest Coast Energy News)

District of Kitimat council voted on Monday, April 2, to ask the Northern Gateway Joint Review Panel to ensure that the town’s water supply is protected if the controversial pipeline is built. A second motion called on Enbridge to give the district a detailed and public presentation on its provisions to protect the water supply in the case of a pipeline breach along the Kitimat River.

That second motion was passed after a motion from Councillor Phil Germuth holding Enbridge responsible for any disruption to the water supply was defeated by a vote of 4-3. However, council’s new motion did not preclude Germuth asking Enbridge his original questions about liability.

Germuth had presented council with the two original motions, after a presentation in March
by Douglas Channel Watch about the dangers avalanches could present to the Enbridge twin pipelines along the Kitimat River watershed.

The first motion called on the District of Kitimat to present a written position to the Joint Review Panel based on the district’s status as a government participant emphasizing the potential dangers to the water supply and noting that the mayor and council are “legally responsible to make every effort to ensure the city of Kitimat’s water supply is uninterrupted and of the highest quality.”

Phil Germuth
Councillor Phil Germuth (Robin Rowland/Northwest Coast Energy News)

After introducing the motion, Germuth said he believed the motion went along with council’s position to remain neutral because nothing in the motion took a position for or against the project.
Councillor Mario Feldhoff said he supported the motion without supporting all the details of Germuth’s full statement, a indication of the more intense debate to come over the second motion.

Mary Murphy also supported the motion, pointing to the potential problems of “transporting hydrocarbons” by both tanker and pipeline.

Mayor Joanne Monaghan said she had a problem with the motion because had earlier passed a motion saying it would wait to take a position until after the Joint Review Panel had reported.

Councillor Corinne Scott said she would speak for the motion, agreeing that this was a request for information and not saying council was for or against the project, adding “we are all concerned about the potential of what could happen to our water supply.”

Read Councillor Phil Germuth’s motions (pdf)

Feldhoff agreed that a letter to the JRP was not taking a position, adding, that on receipt of a letter the Joint Review Panel should take a very serious look at the issue of the water supply of Kitimat. Monaghan agreed but said if the council was to write the letter that it be accurate.

Feldhoff then proposed a friendly amendment calling on District staff to write a draft letter to the Joint Review Panel that council could then examine and agree to.

With the amendment, the motion passed unanimously.

Germuth’s second motion was more contentious, calling on Enbridge to provide detailed plans for ensuring the quality of water for the District of Kitimat and accepting “full liability” for the restoration of the Kitimat’s “entire water system” in case of a pipeline breach. Although some councilors had reservations about Germuth’s list of items, they agreed that Enbridge be called to meet council “face to face,” as Monaghan put it, by responding in person rather than by letter.

Enbridge had already responded to the motion from the previous meeting, calling on it to respond to the concerns raised by Douglas Channel Watch about the possibility of avalanche danger in the Nimbus Mountain area.

In an e-mail to council, Michele Perrett of Enbridge maintained that most of the issue had been addressed by Enbridge in either its original filing with the Joint Review Panel or by subsequent responses to information requests to the JRP, adding

Specifically we have filed geotechnical studies and responded to information requests that include information on avalanches, rock fall, glaciomarine clay slides, debris flows and avulsion in the Kitimat area and have reviewed information filed on this subject by intervenors.

The e-mail said that Drum Cavers, a geotechnical specialist would be making a presentation to council on Monday, April 16.

Enbridge e-mail to District of Kitimat Council (pdf)

Monaghan noted that Douglas Channel Watch and other groups are limited by council policy to 10 minutes and that Murray Minchin had told council that to be fair, Enbridge’s response should also be limited to 10 minutes. Council agreed that the 10 minute limit is needed to make sure that council meetings finish on time and there was some discussion of allowing Enbridge to make a more lengthy presentation outside of a regular council meeting. That would allow Enbridge to not only respond to the earlier concerns about the Nimbus Mountain avalanche danger but also to the concerns about the town’s water supply.

Some members of council, led by Feldhoff, also expressed reservations about the seven points raised by Germuth; others wanted to possibly add their own concerns to any questions for Enbridge. Feldhoff was not prepared to vote for the original motion without more information.

Feldhoff then asked that the district administration prepare a report on the water supply, saying “I think the concerns may be somewhat overstated at the moment.” Councillor Rob Goffinet also called for a report from district staff on the “ramifications for our water supply,” adding that council should not “engage with Enbridge” until that report was ready.

Germuth’s motion, with all of the original questions, along with the invitation for Enbridge to make a public presentation, was then defeated by a vote of 4-3.

Councillor Scott then moved as part of the presentation that Enbridge was earlier invited to present that water issues be added to the list and that council draft a list of questions for the company, that could include Germuth’s original questions.

Germuth asked if the council could put a time limit on Enbridge’s response because the federal budget calls for limiting to the Joint Review Panel. Feldhoff responded that the new motion concerned council’s concerns just with Enbridge and that council should be respectful of Enbridge and hopefully the company could integrate those questions as well.

Goffinet said he wanted Enbridge to know all of the district’s concerns and so, in effect, this motion would get what Councillor Germuth wanted but by a different route, adding that if Cavers, Enbridge’s geotechnical expert, was unable to answer the question, Enbridge would be asked to return and answer the questions at a later date at a public meeting.

That motion passed unanimously.

 

Update:

Mary Murphy clarified her remarks in an e-mail by saying

I stated I had concerns with all hydro carbons transported along the river coastline…like CN Rail and transporting hydro carbons and the likelihood of a derailment etc, andhow that would also effect our waters. CN Rail is and has been transporting hydro carbons, etc for some time, and have had severe derailments.

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

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

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

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

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

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

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

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

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

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

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

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

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

Leach makes two shaky assumptions.

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

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

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

Or quality evaluation for the people directly affected?

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

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

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

Don Cayo, writing this morning in the Vancouver Sun says

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

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

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

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

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

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

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

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

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

Notes

1. *What is hyperlocal?

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

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

2. Scope creep and dismissing local concerns

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

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

and concludes

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

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

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

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

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

 

 

Enbridge calls National Post story on PetroChina building Northern Gateway “speculation”

Updated

Enbridge late Wednesday, March 28, 2012, issued a statement saying that a story in the National Post/Financial Post that PetroChina could bid to build the Northern Gateway pipeline is “speculation.”

In PetroChina bids to help build $5.5-billion Northern Gateway pipeline columnist Claudia Cattaneo reported  that:

Chinese investment in Canada’s energy sector could move to a new level if PetroChina wins a bid to build the controversial Northern Gateway oil sands pipeline.

The largest of China’s three state-controlled oil companies has expressed an interest in building the $5.5-billion project across the northern Canadian Rockies and is considering purchasing an equity stake, said Pat Daniel, president and CEO of proponent Enbridge Inc.

“They have made the point to us that they are very qualified in building pipelines, and we will take that into consideration when we are looking for contractors,” Mr. Daniel said in an interview. “It’s an open bid process. They are a very big organization, they build a lot of pipelines, and they would love to be involved from what they have told me.”

Within hours, Enbridge Northern Gateway issued its own statement:

To speculate at this time about who might be contracted to build a project that has yet to receive regulatory approval is premature in the extreme.

Construction of Northern Gateway would be through an open bid process, and to be successful any bid would have to meet Enbridge’s stringent requirements and meet all federal and provincial employment standards. Enbridge is firmly committed to hiring as many local people as possible to build and operate Northern Gateway and is not anticipating bringing in overseas workers to construct or operate the project.

“British Columbians and Albertans deserve to know that providing local employment is a top priority for Enbridge Northern Gateway,” said Janet Holder, Executive Vice-President of Western Access and the senior executive in charge of the pipeline project. “Ensuring a local workforce is skilled and work-ready in order to fully participate in, and benefit from, the economic benefits associated with the project is a priority for Northern Gateway.”

 

The Financial Post  report says the Chinese company stands a good chance of presenting a competitive bid, but it is likely that Chinese construction of a major Canadian energy project would increase anxiety among Canadians already worried about China’s expanding ownership of Canadian resources.

While there is a labour shortage in the energy sector at the moment, the Financial Post says Canada could use could use a hand from an experienced Chinese oil company, but turning over construction to PetroChina could mean fewer construction jobs in B.C., “where Northern Gateway is a hard sell because of perceptions the province would bear all the risk of a spill, while the rewards would go primarily to Alberta’s oil sands sector.”

The Enbridge statement also  says:

Northern Gateway will shape its hiring and procurement policies so that contractors and sub-contractors working on the pipeline and the proposed marine terminal maximize local hiring and training opportunities, particularly for Aboriginal people – who are expected to comprise approximately 15% of regional construction employment.

An education and training fund of $1.5 million has recently been developed by Northern Gateway. The fund will support flexible community based training associated with the pipeline construction.

 

Kitimat Council invites Enbridge to respond to avalanche worries

District of Kitimat Council voted unanimously Monday, March 19, 2012, to invite Enbridge to make a presentation to council about the concerns about avalanches along the Northern Gateway pipeline route that could threaten the town’s drinking water.

Two weeks earlier Murray Minchin of Douglas Channel Watch gave a detailed presentation that he said showed evidence of major avalanches in the past on the bitumen and condensate pipelines route. Minchin said at the time a major avalanche could breach the diluted bitumen pipeline and quickly threaten Kitimat’s drinking water.

At the time, Minchin asked that council sponsor a new public forum that would include representatives from Enbridge, the Haisla First Nation and an environmental group.

However, Monday’s motion from Councillor Mario Feldhoff read:

That we invite Enbridge to make a presentation to Council addressing issues raised by Douglas Channel Watch in Mr Minchin’s March 5, 2012, presentation to Council entitled Nimbus Mountain area.

The motion was quickly carried with almost no discussion.

Phil Germuth
Councillor Phil Germuth (Northwest Coast Energy News)

The water supply problem is worrying some members of council. Councillor Phil Germuth said that in the future he will be introducing a motion that will call attention to worries that, in case of a pipeline breach, that Kitimat would not have a water supply for months or even years.

At the opening of the meeting, Veronica Bilash, of Douglas Channel Watch, gave a presentation, based on information from West Coast Environmental Law on the responsibilities of municipalities when it comes to the proposed pipeline and presentations to the Northern Gateway Joint Review process.

 

 

Bilash criticized council for not participating in the Joint Review panel.

Administrator Ron Poole said Kitimat is an intervenor in the process, but, so far, Kitimat has not formally taken part in the Joint Review. Kitimat is actually listed as a “government participant.” The district has not filed any documents with the JRP.

Veronica Bilash
Veronica Bilash speaks to Kitimat Counci about municipal responsibilities. (Robin Rowland/Northwest Coast Energy News)

The council has voted to remain neutral and not take any position until the JRP has issued its report. Bilash said that this position is preventing Kitimat from making any views based on municipal responsibilities until it is too late.

In the presentation, written by West Coast Environmental Law staff lawyer, Josh Patterson, points out that municipal governments have responsibility for

  • human occupancy and resource use, social and cultural well-being, health, infrastructure and services, and employment and the economy
  • infrastructure and services for construction-related traffic and transient population
  • Patterson noted that local governments will bear the burden “for any emergency response and clean-up and lasting economic, employment, health, environmental and social impacts form a potential large oil spill.”

Bilash said that Kitimat would face major impacts in these areas and that by remaining neutral, council was not facing its responsibilities.

 

Minister issues non-denial denial on taking habitat protection out of the Fisheries Act

On Friday, March 16, Fisheries Minister Keith Ashfield released a brief statement denying that the government had made a decision to take habitat protection for fish out of the Fisheries Act (Earlier in the week reports had leaked saying that government intended to take protections for fish habitat out of the act, as way of clearing the way for industry.)

Ashfield’s statement, which came at 4:40 p.m. Eastern Time appeared to be the classic buried government news release issued late on  a Friday.  The release actually did not deny facts of  the leak, making it also a classic non-denial denial.

Ottawa (Ontario) – The Minister of Fisheries and Oceans today issued the following statement:

“The government is reviewing fish and fish habitat protection policies to ensure they do not go beyond their intended conservation goals. Recent speculation about the current review is inaccurate. No decision has been made.

“The government has been clear that the existing policies do not reflect the priorities of Canadians.

“We want to focus our activities on protecting natural waterways that are home to the fish Canadians value most instead of on flooded fields and ditches.”

It is clear that Conservative policy, such as proposed changes to the Environmental Assessment Act and budget cuts at Environment Canada, is to eliminate as many environmental protections as possible, and so the sentence that policies “do not go beyond their intended conservation goals” must be interpreted in light of the environmental record of the Conservative government.

On March 13, media including The Globe and Mail  Ottawa wants to bow out of regulating fish habitat, documents show and The Vancouver Sun, Canada poised to ‘gut’ fish protection laws, biologist claims reported that the Conservatives want to get government out of the job of regulating fish habitat, so projects such as the Enbridge Northern Gateway pipeline can be fast tracked.

Otto Langer, an aquatic ecologist who worked for the federal government for 32 years, obtained the documents and made them available to the media.

He said the documents show that the government intends to remove the requirement in the Canada Fisheries Act to protect fish habitats for any fish that is not of “economic, cultural or ecological value.”

Langer told The Globe and Mail: “Probably the main reason why the oil industry, especially in the Prairie provinces, wants it out of the act is its use triggers [a review under] the Canadian Environmental Assessment Act. If you are going to do harm to habitat, you have to do an environmental review and that takes time and money.”

Speaking to The Vancouver Sun Langer asked how the government could define
“what is a fish of economic, cultural or ecological value?”

Documents obtained by PostMedia news, as reported in The Vancouver Sun story, say that energy and other industries consider the Fisheries Act a irritant that holds up projects.  One of the documents say:

“Some of the largest and most complex natural resource and industrial development projects across the country are affected by Fisheries Act requirements, which are consistently identified as one of the top federal regulatory irritants by stakeholders across the country,”

In his bi-weekly conference call with northwestern reporters, earlier Friday, before Ashfield issued his statement, Skeena Bulkley Valley NDP MP Nathan Cullen said he has heard the “the government is planning to take the word ‘habitat’ of Section 35 of the Fisheries Act and then ram that potential change into a budget bill.

“This is what the fisheries act is for, to protect habitat,” Cullen said. “Protecting habitat is one of the most crucial factors in protecting fish stocks. If you can’t protect habitat, then how do you protect fish?

If they do this,” Cullen said, “They’ll rip the very heart out of the Fisheries Act. The heart and soul of the act is that if you want to protect fish, you must consider habitat. You don’t have to be a genius or a fish biologist to know that if the fish don’t have anywhere to spawn, you’ll kill the fishery.”

Cullen said if the government does go ahead with the changes, “it will further compound all the problems and stresses we’ve been putting on the fishery. Essentially the government is saying that wild fish populations will not matter, that oil and gas is going to trump them every single time.

He went to say, “They did this with the Navigable Waters Act a few years ago They killed off a one hundred year old act that was designed to protect waterways in Canada. You know who it upset, and this is something the government is going to have to be paying attention to is the BC Wildlife Federation, the anglers and hunters associations, any of those groups that likes the go out into nature and actually see some nature. All of those groups got upset last time and now its going to be that times ten.“

Ashfield’s statement about flooding referred to a couple of incidents where the Department of Fisheries and Oceans would not allow draining of  flooded areas. He told the House of Commons “Last year in Saskatchewan, a long-running country jamboree was nearly cancelled after newly flooded fields were deemed fish habitat by fisheries officials. In Richelieu, the application of rules blocked a farmer from draining his flooded field.”

In response, The Globe and Mail quoted Adam Matichuk, fisheries project co-ordinator for the Saskatchewan Wildlife Federation, said that, during high-water events, many fish species move into flooded areas to feed and reproduce.

“The Craven area is basically a flood plain,” he said. “It doesn’t flood every year, but, when it does, fish take advantage of it. There were hundreds of thousands of young fish, mostly pike and walleye, in there when they turned on those pumps,” he said.

 

Enbridge presents strong case for marine safety planning

Enbridge made its strongest public case yet Tuesday, March 13, that improvements in marine safety worldwide since the Exxon Valdez disaster in 1989, make the chances of an accident involving ships carrying bitumen and condensate in Douglas Channel and the BC Coast highly unlikely.

But one of Enbridge’s own invited experts somewhat undermined the case by pointing out that in the event of a major tanker incident (as unlikely as Enbridge believes it may be) the resources of the federal and provincial governments are spread far too thin to deal with a major disaster.

The Enbridge Community Advisory Board held a public meeting Tuesday at Mt. Elizabeth Theatre, with three guests presenting a case that they also gave to the regular meeting of the advisory board earlier in the day.

The three guests were Capt. Stephen Brown, of the BC Chamber of Shipping, Capt. Fred Denning, of British Columbia Coast Pilots and Norm Fallows, an emergency response officer with the BC Ministry of the Environment, based in Smithers.

There were only a few dozen people in the theatre for the presentation, compared the full house for last year’s community forum that was sponsored by the District of Kitimat. One reason may be that many Kitimat residents preferred being in the stands for the Coy Cup hockey championships at Tamitik Arena rather than sitting through yet another presentation on the Northern Gateway pipeline.

Denning opened the presentations by explaining the role of the BC Coast Pilots. The BC Coast Pilots is a private firm that contracts with government’s Pacific Pilotage Authority to provide pilots to ships plying the coast of British Columbia. By law all vessels larger than 350 gross registered tonnes are required to use a marine pilot.

Both in his presentation and in the question and answer period, Denning stressed that pilots are traditionally independent from government and industry, with the responsibility to ensure the safety of shipping.

In the question and answer period, when an audience member pointed out that under the Transport Canada TERMPOL process, use of tugs in Douglas Channel and use of tethered tugs was “voluntary,” Denning replied that the pilots would be insisting on tethered escort tugs for tankers on Douglas Channel.

He explained that BC pilots are highly experienced mariners, usually with 25 years or more experience on the coast, the majority of that time as a ship’s officer. An applicant to become a pilot is put on a waiting list, and if accepted, then is trained both on ships and simulators and serves a six to 12 month apprenticeship.

He said that BC coastal pilots have a 99.89 per cent incident safety record.

BC pilots now carry a large laptop called a Portable Pilot Unit, which operates independent of the ship’s navigation and computer systems gathering navigation and other data, as a redundant safety system.

Denning expects that marine traffic on the BC coast will continue to increase because the ports of Vancouver and Prince Rupert are the closest to Asia by the Great Circle routes. Both cargo and the energy projects, whether the Enbridge Northern Gateway or the the liquified natural gas terminals will mean more ships and more work for the pilots.

The pilots are always consulted in the development of any new traffic or terminal projects in BC. Including design, testing the ship’s courses in simulators, recommending new navigational aides and training for the pilots. Pilots were consulted during the development of Deltaport and Fairiew container terminals as well as the cruise ship terminals in Victoria, Nanaimo and Campbell River.

The pilots are being consulted on both the Enbridge and LNG projects at Kitimat as well as the proposed expansion of the Kinder Morgan facility in Vancouver. For the existing Kinder Morgan terminal, pilots were involved in creating navigation aides and tug procedures for the Second Narrows.

Stephen Brown is a member of the Community Advisory Board as well as representing the Bureau of Shipping. He began with a detailed timeline of how shipping regulations have been tightened over the years since what is now the International Maritime Organization, a United Nations agency, was founded in 1948. He said the Exxon Valdez accident in 1989 triggered even tighter regulations, including the 1990 US Oil Pollution Act passed by Congress which required all ships have containment capability and a spill clean up plan. The act also ordered US shippers to phase out single hulled tankers beginning in 1995. In 1992, the IMO adopted a similar measure.
Since the 1990s, there have been new regulations preventing the dumping of ballast and creating higher standards for crew and officer training, including hours of work, watch keeping standards and environmental awareness.

Brown then went on to discuss shipping in narrow waterways which he said were similar to Douglas Channel, including the Straits of Dover between Britain and France, the Straits of Malacca between Singapore and Malaysia and the island of Sumatra, the Dardanelles and Bosporus Strait in Turkey (which traditionally are said to join Europe with Asia) and the Panama Canal. All those areas, he said, see heavy shipping traffic, including tankers, each year.

The narrowest passage is in the Bosporus, which is 698 metres wide, a little less than one half nautical mile.

Comparing the Bosporus with Douglas Channel, Brown said Douglas Channel is much wider, about three kilometres, meaning that inbound and outbound ships can pass a half kilometre apart.
He went over how tanker management has improved with double hulls and better overall construction standards,vetting of ships and crews, and creating “a culture of safety and respect for the environment.”

The final speaker Norm Fallows, from the BC Ministry of the Environment Emergency Management,  outlined the current emergency response system in the province. Central to any response to a oil spill or any other hazard materials problem is the “incident command system.” also used most often for fighting forest fires. The incident command system ensures that all public agencies and the private sector are cooperating and coordinating with one overall person in charge.

The province has a “polluter pay” policy, Fallows said, meaning that the “responsible party” must pay for all the cost involved. Sometimes, int he case of a meth lab, it is the unfortunate owner of a house that may have been rented by drug dealers.

Fallows said he is one of only 10 emergency response officers stationed across the province of British Columbia, In contrast, the State of Washington, with a much smaller land area than BC, has 79.

Any response to a spill has to do the best possible in the situation, Fallows said. He gave the example of burning off an oil spill in some circumstances because that was both the most cost effective solution that at the same time in those circumstances did the least harm to the environment.

In the early part of the first decade, Fallows said, some staff at the environment department were proposing what was called “Geographic Response Planning,” which involved surveying an area for both potential hazards and solutions, and bringing in local responders including fire, police and local industry. Planning for the GRP program had minimal funding, which was later dropped by the province.

In contrast, Fallows said, the state of Washington has spent millions of dollars creating a geographic response program for that state.

In response to questions from the audience, Fallows said that adequate emergency response in British Columbia needed “more resources” from both the provincial and federal governments.

Kitimat Council to consider new Enbridge forum after warning about avalanches on pipeline route

Douglas Channel Watch
Angus McLeod and Margaret Stenson, members of the environmental group Douglas Channel Watch, wear "ocean blue" scarves at a meeting of the District of Kitimat Council, March 5, 2012. The "ocean blue" scarves represent the group's determination to protect the oceans. (Robin Rowland/Northwest Coast Energy News)

District of Kitimat Council will consider a motion at its next meeting on March 19 to hold a second community forum on the controversial Enbridge Northern Gateway pipeline.

The notice of motion was introduced by Councillor Mario Feldhoff after a request for a new forum by the environmental group Douglas Channel Watch.

Murray Minchin called for the forum after a presentation to council about the avalanche dangers at Nimbus Mountain, where Enbridge plans a tunnel through the mountain.

Minchin said Enbridge has not done a forest survey on Nimbus Mountain where the pipeline would emerge from the tunnel. However, a survey by Douglas Channel Watch members of tree growth on Nimbus Mountain, Hoult Creek on the pipeline route and Hunter Creek which are tributaries of the Kitimat River, shows strong evidence of previous avalanches which could cause serious damage to the twin bitumen and condensate pipelines.

Minchin says that documentation filed by Enbridge with the Joint Review Panel shows that while an Enbridge response crew could reach a breached pipeline in that area in four hours, it would also take four hours for as much as two million litres of diluted bitumen spilled in that area to reach the Kitimat River estuary.

The lower slopes in the area have a large population of young, small, closely packed trees and lumpy rock material on the forest floor that show that it is periodically “swept clean by avalanches,” Minchin told the council.

The young trees in the area are small because they are growing on rockfall, and there are no mature trees. There are large boulders on the lower slopes, another indication of avalanche or rock fall, Minchin said.

He showed images of middle aged hemlocks farther up the slope near the proposed tunnel exit that sometime in the past had their tops ripped off. Damage to the spreading branches of the trees on one side indicate that the trees were hit by an avalanche when they were young.

There is evidence of a major rockfall on the mountain about 50 metres above the proposed tunnel exit with rock fall material clearly visible on the forest floor. The curve of the hemlocks in the area indicate that there is still downhill movement on the slope, Minchin said.

That means, he said, that with the plans calling for the twin pipelines to be suspended 200 metres in the air over Hoult Creek, that could be hit by an avalanche.

He said the presence throughout the area of “avalanche alders” combined with the fact that there are no hemlocks, is an indication, Michin said, of regular avalanche activity.

Giant boulder brought to Houlte Creek by an avalanche
This photograph from Douglas Channel Watch shows a giant boulder and a fallen hemlock in area close to the proposed Enbridge Northern Gateway pipeline at Houlte Creek, BC. (Douglas Channel Watch)

He showed a photo of a large boulder, perhaps the size of a carport, 100 metres from the proposed tunnel exit that was brought to the area by an avalanche.

He said a study of the age of young balsam would tell an expert when the last massive avalanche occurred “but it won’t tell us when the next one will occur.” The steep slopes on Mount Houlte, leading to the pipeline route along Houtle creek mean that area which feeds the Kitimat River has seen many avalanches in the past.

The pipeline then goes into the Hunter Creek area, which Minchin says, Enbridge’s own experts have warned is also vulnerable to avalanches. At Hunter Creek, avalanche debris could temporarily dam the creek, and then, when the debris is released by spring melt or water pressure, that could a create a flash flood; a flash flood that could damage the pipelines.

He pointed to the fact the cleanup of the Kalamazoo River spill in Michigan had been shut down for the winter because the bitumen becomes too sticky to move. He then asked how much longer would it take to clean up a spill under the winter conditions of the Kitimat area. Noting that Enbridge has admitted the Kitimat river would be closed for fishing for “at least four years” he asked “How long will the cleanup take…eight twelve? And where would Kitimat get its water?”

Minchin concluded by saying if there is a pipeline breach at Hoult or Hunter Creeks, despite Enbridge’s plans, the Kitimat River downstream from those creeks would be polluted for years.

He then asked that council organize a new public forum, with three representatives, one from the Haisla First Nation, one from Enbridge and one from an environmental group, adding. “The mayor of Dawson Creek has been trotted out at every one of these forums and is irrelevant, which is why we ask that three people speak to the forum.”

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