Special Report: New study identifies earthquake hazards for Hartley Bay, Bella Bella, Kitimat and Terrace

UPDATED with comments from District of Kitimat, Terrace and the Gitga’at Nation

A preliminary seismic hazard assessment by Natural Resources Canada has identified possible earthquake scenarios for the Douglas Channel near Hartley Bay, Terrace and Bella Bella.

The same studies indicate that while Kitimat may not be directly in a seismic zone prolonged earthquakes cause some damage in Kitimat depending on the earthquake and the condition of the soil in certain parts of the District. One model scenario says that in the event of a magnitude 8.0 earthquake off the west coast of Haida Gwaii, given certain soil conditions, there might actually be more damage in Kitimat than on the islands.

Susceptibility to landslides

That assessment, part of the overall the study by the Geological Survey of Canada indicates that the north coast of British Columbia from Prince Rupert to Bella Bella is likely face to “seismically induced ground failure”– mostly landslides.

Overall, the report says that on a scale of 1 to 6 (6 representing the highest
susceptibility), the majority of the west coast of BC “exhibits landslide susceptibility values of 5 to 6, which is significantly higher than the rest of Canada.”

Geological Survey of Canada map showing parts of Canada that are prone to landslides. The BC North Coast study area is outlined by the rectangle. (Geological Survey of Canada)
Geological Survey of Canada map showing parts of Canada that are prone to landslides. The BC North Coast study area is outlined by the rectangle. (Geological Survey of Canada)

In British Columbia the landslides are most likely to be triggered by delayed melting of the annual snow pack, heavy rains, bank erosion and site loading and caused long-lasting damning of the river causing “damage to pipelines, rail, and forestry, as well as fish habitats.”

So far no recent landslides along the northern British Columbia coast are known to be caused by earthquakes, the reports say “the existence of numerous landslides strengthens the likelihood of seismically induced ground failures… due to the high levels of seismicity….it is expected that the increased likelihood of strong ground shaking (with long durations) will increase the landslide susceptibility.”

New studies

It was only after the 2012 Haida Gwaii earthquake and with what the Geological Survey of Canada calls “a growing number of on-going and planned infrastructure projects, BC’s north coast is emerging as a region of high strategic importance to Canada’s economy,” that studies began in area where “there has been minimal research to understand earthquake hazards.”

Now that studies have begun the Geological Survey has given the region its own new acronym BCNC (BC North Coast). Haida Gwaii is not part of BCNC, although earthquakes on those islands would likely impact the coast.

A Geological Survey of Canada map showing the BC North Coast region with earthquakes identified prior to and during recent studies. (Geological Survey of Canada)
A Geological Survey of Canada map showing the BC North Coast region with earthquakes identified prior to and during recent studies. (Geological Survey of Canada)

The Geological Survey says that historically “the BCNC has been seismically quiescent.” As a result “seismic monitoring and research related to the BCNC has been minimal.” That meant while larger earthquakes were “felt and recorded,” the configuration of the Canadian National Seismograph Network did not allow earthquakes less than approximately magnitude 2.1 to be monitored in northern BC.

Now the Geological Survey is looking at “long-term, continuous monitoring of micro seismicity, combined with geodetic and paleo seismic techniques” that could be used to study at the possibility of large earthquakes, including a possible fault on the lower Douglas Channel.

Since the studies began in August 2014, the Geological Survey identified 145 earthquakes within the study area, many too small to be felt since they are less than magnitude 2.0. Those earthquakes, however, were picked up by the new and improved instrumentation used by the earthquake monitors.

The two reports one on “seismic hazards” and the second on “geohazards” says five “temporary seismonitors”  (download reports from links below) were installed within the BCNC while some older stations were upgraded, saying, “It is expected that these new stations will be aid in locating small earthquakes” that were not previously detected by the existing network. The Geological Survey also installed ground movement monitoring GPS units along the coast.

The use of the term “temporary” raises the question about how much ongoing monitoring is planned.

The study also notes that the current data is not included in the seismic standards in the current National Building Code of Canada, which in turn is based on the Natural Resources Canada Seismic Hazard Map. That may mean that municipalities in the BC North Coast region, in the future, as the seismic studies continue, may have to consider updating building codes, especially in areas of “softer soils” as opposed to harder rock.

“Fault-like structure” on Douglas Channel

Detail of a map from the Geological Survey of Canada where the red line shows the 60 kilometre possible (still unconfirmed) fault line running from Gribbell Island to Princess Royal Island (Geological Survey of Canada)
Detail of a map from the Geological Survey of Canada where the red line shows the 60 kilometre possible (still unconfirmed) fault line running from Gribbell Island to Princess Royal Island (Geological Survey of Canada)

Over the years some small earthquakes have also been recorded on what the Geological Survey calls the “recently mapped fault-like structure” on Douglas Channel which was discovered in 2012. The survey is still calling it “fault-like” because it has not yet been confirmed as an active fault. A new map in the study shows that the “fault” runs from the southern tip of Gribbell Island, down the centre of Whale Channel east of Gil Island and then along the western coast of Princess Royal Island.

The study identified “a small, unfelt swarm of earthquakes between magnitude 1.7 and 2.0 between September 13 and 14, 2010 near Gil Island.”

There is also the previously identified ancient Grenville Channel Fault (ancient and believed inactive because it dates from the Cretaceous, the age of the dinosaurs) that runs from along Grenville Channel from Porcher Island in the north to Klemtu in the south which has experienced small earthquakes.

The report says geological studies of the Douglas Channel “fault-like structure” are a priority because, “Should this structure be determined to be an active fault, it would pose significant risk of earthquake-triggered landslides (and subsequent tsunami) from the susceptible Douglas Channel hill slopes.”

Clay and sand in Kitimat

The report also calls for more studies the local geology and soil conditions in the Kitimat Valley. A study back in 1984 by John Clague of Simon Fraser University showed that as the glaciers retreated during the last Ice Age there were “periods of stagnation” resulting in sediments that are thicker than other regions of British Columbia, Clague reported that in parts of Kitimat, the glacial moraine is hundreds of metres thick.

After the glaciers were gone, the sea levels rose and glaciomarine sediments (clay, silt up to 60 metres thick) were deposited until the sea level fell to present-day levels. The report says that as these marine deposits were exposed to fresh water, salts were leached out resulting in saturated, porous sediments, including clay, which are prone to failure. Boreholes in the Kitimat area show that the clay and sediments above the bedrock can range from 17 metres to 106 metres.

The report notes the presence of clay soils “can amplify ground shaking and secondary effects” as happened in November 1988 when there was an earthquake in the Saguenay region of Quebec.

Originally reported as a 6.2 magnitude but later downgraded to 5.9, on Nov. 25, 1988, the major earthquake was centered near the Quebec cities of Chicoutimi and Jonquière, with aftershocks felt as far away as Toronto, Halifax and Boston. The quake lasted for two minutes, catching thousands of people off guard and leaving buildings damaged and power out for hundreds of thousands of Quebecers.

CBC Television reported the earthquake caused a leak of toxic gas at the Alcan Aluminum plant at Jonquière, which was quickly contained. “There was no wind, we were basically lucky,” Alcan spokesman Jacques Dubac told CBC News at the time. 

Terrace earthquake

The report says the most significant event within the BC North Coast study region (which as mentioned doesn’t include Haida Gwaii) was a magnitude 4.9 earthquake approximately 20 kilometers southwest of Terrace on November 5, 1973, which was felt as far as 120 kilometers away, with some minor damage (broken windows and cracked plaster) reported near the epicentre. The main shock at Terrace was preceded by a magnitude 2.5 foreshock four hours before, and followed by a felt magnitude 3.7 aftershock the next day.

Bella Bella at risk

Another area most at risk, according to the report, is southern part of the BC North Coast zone, near Bella Bella, which is close to the northern section  Cascadia Subduction Zone  a “1,000 kilometre long dipping fault that stretches from Northern Vancouver Island to Cape Mendocino California” which one day will cause a major earthquake along the fault.

Cascadia subduction zone (USGS)
Cascadia subduction zone (USGS)

The report says that a magnitude 9.0 or higher earthquake in the northern Cascadia Subduction zone close to Bella Bella would be similar to the March 2011 earthquake in Japan and the 1964 Good Friday earthquake in Alaska.

For the northern part of the BC North Coast region, hazards could come from either a major earthquake off Haida Gwaii or a similar earthquake in south-eastern Alaska.

The greatest hazard would come from “long period” earthquakes greater than magnitude 6.75 with an epicentre between 300 and 350 kilometers away where the shaking lasts longer than one second.

The Geological Survey modeled three possible scenarios for major earthquakes in the BC North Coast Region.

Model #1. A magnitude 8.0 Earthquake at Haida Gwaii

The Geological Survey Canada model for an 8.0 magnitude earthquake west of Haida Gwaii. The possible damage is colour coded in the table below the map according to the Modified Mercalli Intensity Scale (Geological Survey of Canada)
The Geological Survey Canada model for an 8.0 magnitude earthquake west of Haida Gwaii. The possible damage is colour coded in the table below the map according to the Modified Mercalli Intensity Scale.  The red polygon represents the area of possible rupture in the model with the star representing the epicentre. (Geological Survey of Canada)

The model looked at a “plausible maximum predicted” magnitude 8.0 thrust fault earthquake off the west coast of Haida Gwaii which would be twice as strong in the fault area as the 7.8 quake on October 28, 2012 (Remember Magnitudes are based on a logarithmic scale. That means for each whole number higher, the amplitude of the ground motion recorded by a seismograph goes up ten times so magnitude 8 earthquake would result in ten times the ground shaking as a magnitude 7 earthquake)

For a short period earthquake, the report estimates that there would be minimal damage on Haida Gwaii similar to the damage from the 2012 earthquake with little or no damage on the BC North Coast.

A long duration, long period earthquake that lasted longer than one second and up to three seconds or longer “may effect taller structures and trigger ground failure (that is liquefaction and lateral shaking).” Kitimat would feel that earthquake with the worst shaking in parts of the District with what the report calls “sensitive soils.” Coastal islands would feel double the amount of shaking as would occur in Kitimat.

Model #2. A magnitude 7.2 Earthquake in Douglas Channel

 The Geological Survey Canada model for a 7/2 magnitude earthquake in the lower Douglas Channel. The possible damage is colour coded in the table below the map according to the Modified Mercalli Intensity Scale. The red star represents the possible epicentre. (Geological Survey of Canada)

The Geological Survey Canada model for a 7/2 magnitude earthquake in the lower Douglas Channel. The possible damage is colour coded in the table below the map according to the Modified Mercalli Intensity Scale. The red star represents the possible epicentre. (Geological Survey of Canada)

The second model looked at an earthquake in Douglas Channel based on the “fault like structure” if a slip strike rupture occurred along the entire 60 kilometers of the so far unconfirmed fault, resulting in a 7.2 magnitude earthquake. There would be very strong shaking within 20 kilometers radius of the epicentre, with moderate to heavy damage” in the relatively uninhabited islands, major shaking in Hartley Bay, resulting in very strong to strong damage at Hartley Bay and strong to moderate damage in Kitimat.

That earthquake, however, would be felt across the entire province of British Columbia. The report notes:

The expected effects and impacts of such an earthquake would mimic those of the 1946 magnitude 7.3 Vancouver Island earthquake, which occurred slightly west of Courtney and Campbell River. Shaking due to the 1946 earthquake was felt as far as Prince Rupert, BC to the north and Portland, Oregon to the south. In addition to knocking down 75 per cent of the chimneys in the local area, much of the earthquake-related damage was due to landslides, slumping and liquefaction

Model #3  A magnitude 6.3 Earthquake near Terrace

 The Geological Survey Canada model for an 6.3 magnitude earthquake southwest of Terrace. The possible damage is colour coded in the table below the map according to the Modified Mercalli Intensity Scale. The red polygon represents the area of possible rupture in the model with the star representing the epicentre. (Geological Survey of Canada)

The Geological Survey Canada model for an 6.3 magnitude earthquake southwest of Terrace. The possible damage is colour coded in the table below the map according to the Modified Mercalli Intensity Scale. The red polygon represents the area of possible rupture in the model with the star representing the epicentre. (Geological Survey of Canada)

On May 11, 1973, a magnitude 4.7 shallow earthquake took place about 20 kilometers south west of Terrace, on the south side of the Skeena roughly across from the Shames mountain area. The earthquake was felt up to 120 kilometers away. The report says “The event has not been associated with any geologic features in the area and little is known about its rupture process.” The model estimated the results of a larger earthquake 6.3 magnitude in the same area. The model showed there would be strong to very strong shaking in Terrace, light to moderate shaking in Kitimat and light damage elsewhere in the BC North Coast. Most of the damage would be concentrated in a 20 kilometer zone around the epicentre.

Motivation for study

It was not just potential industrial development that motivated the new studies. The discovery of that possible fault line in the lower Douglas Channel was also a factor. Studies between 2007 and 2009 revealed there were two large submarine slides on Hawkesbury Island during the mid-Holocene sometime between 5,000 and 10,000 years ago 

The cause of the two failures is still unknown but the report says “their proximity to a nearby unmapped fault-like structure suggests that the slides could have been triggered by strong ground shaking from rupture along this structure.”

Another factor was the two well-known landslides occurred in the 1970’s in the Kitimat Arm which generated tsunamis but fortunately they occurred at low tide which decreased the impact. On October 17, 1974 a submarine slide generated a 2.8 metre tsunami. The following year on April 27, 1975, a slope failure on the northeast side of Kitimat Arm (which overlapped the 1974 failure area) displaced an estimated upper limit of 26,000,000 cubic metres of material.

“Watermark observations in Kitamaat Village estimated that the tsunami generated by this slide was up to 8.2 metres high.” The report says that while the trigger of the first event is unknown; the latter event coincided with nearby construction at that time. Modelling of the 1975 slide estimates that given the right conditions the generated tsunami waves could have been as high as 11 metres.

The report also notes that numerous landslides have also been mapped by the BC Department of Forestry in an attempt to improve safety measures for forestry workers.

The report says “The culmination of these studies brings awareness to the significant natural hazards present in the fragile coastal environment of the Coast Ranges.”

Another factor is the geology of the BC coast. The granitic mountains have rugged, steep slopes dissected by an intricate fjord system and dotted with islands of lower elevation. At lower elevations the land is covered by wet, coastal hemlock forests, which could be vulnerable to ground failures whereas higher elevations are characterized by barren rock or mountain hemlock subalpine.

Table of Seismic monitoring and GPS stations in northern BC from the Geological Survey of Canada (Geological Survey of Canada)
Table of Seismic monitoring and GPS stations in northern BC from the Geological Survey of Canada (Geological Survey of Canada)

The District of Kitimat said it has “not directly studied these issues but we are aware of potential hazards.” The development department has been advised of potential issues and site concerns.

A spokesperson for Terrace mayor Carol Leclerc told Northwest Coast Energy News in an e-mail. “I have reviewed it and distributed it to the relevant department heads. We are aware that historically Terrace has been at risk for experiencing seismic activity due to its location.”

The District of Kitimat did cooperate with National Resources in finding a location for their recently installed seismic equipment.

At Harley Bay, Gitga’at First Nation CEO Ellen Torng said the Gitga’at have been “ working with NRCan on their research in the Douglas Channel and in Hawksbury. NRC has been meeting with First Nations along the coast and have conducted community sessions on their research.

“We hosted one community session here in Hartley Bay and have regular updates from their technical team when they are in the area,” Torng said.

In addition, the District of Kitimat told Northwest Coast Energy News that Community Planning & Development department also provided local land information to geoscientists in the years leading up an international study called Batholiths on land in 2009.

Batholiths are large zones of molten rock that have solidified in the earth’s crust and are believed to play a key role in the formation and growth of continents. The Coast Mountain Range has a large concentration of batholiths, which means Kitimat was an excellent place to study the earth’s crust.

The project, which involved more than 50 scientists from nine Canadian and American universities, was set up to examine how mountain belts form and change over time and why continental mountain ranges are made of granite not basalt. Seismic imaging of the crust and mantle below the mountains required deploying thousands of seismic sensors and recorders, and recorded responses to several man-made detonations. Field work was completed in July 2009, and several scientific papers and dissertations have followed.

The Heiltsuk Nation was unable to respond to a request for comment due to the ongoing crisis from the sinking of the tug Nathan E. Stewart and the resulting spill of diesel fuel and other contaminants near Bella Bella.

Related Commentary: The earthshaking difference between Enbridge and LNG

Download the Geological Survey Studies (PDF)

Baseline Assessment of Seismic Hazards in British Columbia’s North Coast 2016

North Coast Geohazards 2016 Seismology Update

Modified Mercalli Intensity Scale

(from US Geological Survey )

Intensity Shaking Description/Damage
I Not felt Not felt except by a very few under especially favorable conditions.
II Weak Felt only by a few persons at rest,especially on upper floors of buildings.
III Weak Felt quite noticeably by persons indoors, especially on upper floors of buildings. Many people do not recognize it as an earthquake. Standing motor cars may rock slightly. Vibrations similar to the passing of a truck. Duration estimated.
IV Light Felt indoors by many, outdoors by few during the day. At night, some awakened. Dishes, windows, doors disturbed; walls make cracking sound. Sensation like heavy truck striking building. Standing motor cars rocked noticeably.
V Moderate Felt by nearly everyone; many awakened. Some dishes, windows broken. Unstable objects overturned. Pendulum clocks may stop.
VI Strong Felt by all, many frightened. Some heavy furniture moved; a few instances of fallen plaster. Damage slight.
VII Very strong Damage negligible in buildings of good design and construction; slight to moderate in well-built ordinary structures; considerable damage in poorly built or badly designed structures; some chimneys broken.
VIII Severe Damage slight in specially designed structures; considerable damage in ordinary substantial buildings with partial collapse. Damage great in poorly built structures. Fall of chimneys, factory stacks, columns, monuments, walls. Heavy furniture overturned.
IX Violent Damage considerable in specially designed structures; well-designed frame structures thrown out of plumb. Damage great in substantial buildings, with partial collapse. Buildings shifted off foundations.
X Extreme Some well-built wooden structures destroyed; most masonry and frame structures destroyed with foundations. Rails bent.

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.

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.”

Photo gallery: Preparing for the Pacific Trail Pipeline

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

Complete photo gallery at my photography site.

Petronas and partners announce conditional Final Investment Decision for Lelu Island subject to environmental assessment

In a news release this afternoon, Pacific Northwest LNG announced that the company has given a positive, but conditional, Final Investment Decision, to build an LNG facility on the environmentally sensitive Lelu Island at Port Edward. BC.

pacificnorthwestlogo100Pacific NorthWest LNG (PNW LNG) announced today that the required technical and commercial components of the project have been satisfied. Consequently, PNW LNG has resolved to move forward with a positive Final Investment Decision, subject to two conditions.

The Final Investment Decision will be confirmed by the partners of PNW LNG once two outstanding foundational conditions have been resolved. The first condition is approval of the Project Development Agreement by the Legislative Assembly of British Columbia, and the second is a positive regulatory decision on Pacific NorthWest LNG’s environmental assessment by the Government of Canada.

“In parallel with work to support the Final Investment Decision, Pacific NorthWest LNG will continue constructive engagement with area First Nations, local communities, stakeholders and regulators,” said Michael Culbert, President of Pacific NorthWest LNG. “The integrated project is poised to create thousands of construction and operational careers in the midst of the current energy sector slowdown.”

ProgressenergyProgress Energy Canada and the North Montney Joint Venture partners will continue to invest in its North Montney natural gas resources. The investment to date has proved and probable natural gas reserves of over 20 trillion cubic feet (tcf) with $2 billion-plus invested annually, representing approximately 4,000 sustainable jobs in northeast British Columbia.

“A Final Investment Decision is a crucial step to ensure that the project stays on track to service contracted LNG customers,” Culbert continued. “Pacific NorthWest LNG is poised to make a substantial investment that will benefit Canada for generations to come.”

Lelu Island, the flat area in the left of the image, across from the harbour at Port Edward is the potential site of the Petronas  Pacific Northwest LNG project.  (Robin Rowland/Northwest Coast Energy News)
Lelu Island, the flat area in the left of the image, across from the harbour at Port Edward is the potential site of the Petronas Pacific Northwest LNG project. (Robin Rowland/Northwest Coast Energy News)

Although Pacific Northwest LNG is first off the mark with a positive, if conditional, Final Investment Decision, putting a shovel in the ground is not guaranteed. Of all the proposed liquified natural gas projects for northwestern BC, the location on Lelu Island, right at the mouth of the Skeena River, is probably the most environmentally sensitive. Even if the Canadian Environmental Assessment Agency does give its approval, probably with a long list of conditions, it is highly likely the decision will be challenged in court by First Nations and environmental groups.

The environmental process was put on hold in early June after the agency asked Pacific Northwest to provide more information about building the terminal. The island sits near Flora Bank, where young salmon shelter in eel grass after coming down the Skeena, taking time to grow before venturing out into the Pacific. Flora Bank has been called the “nursery” for one of the world’s most important salmon runs.

The fact that Pacific Northwest LNG has to supply more studies means that any final environmental assessment decision will come after October’s federal election.

After initial proposals to dredge the area where met with loud and sustained opposition, Pacific Northwest proposed a suspension bridge and trestle which means the LNG tankers would tie up well off the island in Chatham Sound.

Lelu Island is on the traditional territory of the Lax Kw’alaams First Nation. Members of the First Nation recently voted overwhelmingly against accepting a billion dollars over the life of the project from Pacific Northwest.

Pacific NorthWest LNG filed a report, prepared by engineering and environmental company Stantec Inc., that said there would little or no environmental impact impact from building the $11.4-billion LNG terminal. Stantec’s report, however, is unlikely to reassure many people in the northwest because of Stantec’s close to ties to the energy industry.  Stantec did major studies for the controversial Enbridge Northern Gateway project, studies that were challenged by other environmental studies opposing that pipeline project.

Petronas_LogoPetronas holds  62-per-cent of Pacific NorthWest LNG.

Partners are China’s Sinopec, which holds 10 per cent, Indian Oil Corp. Ltd. which holds 10 per cent, Japan Petroleum Exploration, 10 per cent, China Huadian Corp., 5 per cent and Petroleum Brunei, 3 per cent.

As well some First Nations and environmental groups in the northwest of British Columbia, in the northeast, Blueberry River First Nations who live in the North Montey natural gas region have said they are worried about increased drilling in their traditional territory are concerned about increased drilling by Progress Energy for natural gas within their traditional territory.

The Blueberry River group says it plans request judicial review of the B.C. Natural Gas Development Ministry’s decision to sign the 23-year royalty agreement for the region.

 

Why the media coverage of the Tim Hortons boycott is a double double failure

The headline on Thursday’s CBC.ca coverage of the sudden controversy over a boycott  in British Columbia of Tim Horton’s over the Enbridge ads sums up everything that’s wrong about media coverage not only of the boycotts, but of northwest energy and environment issues overall.

“Tim Hortons yanks Enbridge ads, sparks Alberta backlash.” The anger at Tim Hortons across northwest British Columbia over those Enbridge ads, the calls for a boycott have been building for more than two weeks but no one in the media noticed despite widespread posts on Facebook and other social media.

CBC.ca

As usual, the concerns of the northwest didn’t really become a story until Alberta got involved and  the story has become the “Alberta backlash.”  Now, there’s a backlash on social media to the Alberta backlash, with northwestern British Columbians tweeting and posting their displeasure, angry at the usual blinkered views of Alberta-centric coverage of energy issues.

Let’s make one thing clear– despite the outraged cries of the usual suspects like Defence Minister Jason Kenney, Conservative MP Michelle Rempel, who represents Calgary Centre-North and Kyle Harrietha, the Liberal candidate for Fort McMurray-Cold Lake that the boycott was aimed  at Alberta’s entire energy industry and the province’s views of a manifest destiny as an energy super power, the doughnut boycott was really aimed specifically at Enbridge, and the company’s arrogance and incompetence.

This morning Wildrose party leader Brian Jean has joined the Alberta boycott and is demanding the Enbridge ads be reinstated. “I’ll pick up my Tim’s coffee again when they decide to apologize for taking jabs at our industry, which is so important to Albertans,” Jean is quoted on CBC.ca.

Of course Jean, like most Albertans, isn’t  looking at the bigger picture. The question that Jean should really be asking, is the continuing unquestioning support for Enbridge actually harming the rest of the Alberta energy industry by increasing the resistance in northwestern BC to other energy projects? When are Alberta politicians, whether federal or provincial, ever actually going to show even a Timbit of respect for the issues in northwestern British Columbia?

Look at what Enbridge is doing

There is strong support (with some reservations) for the liquified natural gas projects. There is a level of support for pipelines that would carry refined hydrocarbons to the coast, something that the new premier of Alberta, Rachel Notley is seriously considering.  But it is so typical of Alberta, the Alberta media and most of the Canadian media, to believe that the boycott was an attack on the entire energy industry.

Ask any executive of an energy company that wants to do business in northwestern British Columbia and they’ll come  up with the a joke that is now so old and so often repeated that it’s become a cliché, “We look at what Enbridge is doing and then do the exact opposite.”

timmysamos

The fact is that Enbridge has been dealing with northwestern British Columbia for more than ten years and they still can’t do anything right. Shell, Chevron, Petronas (and before them Apache) and even TransCanada make more efforts to listen to the people, First Nations and non-Aboriginal residents alike, than Enbridge ever has or ever will (despite their claims in their PR campaigns).

While these energy giants may not agree with what they hear, they are respectful and depending on their corporate culture are making genuine efforts to come up with ways to make their projects work. After a decade of blunders, however, Enbridge still hasn’t shown that much respect for anyone here. Those touchy feely ads that appear on television and at Tim Horton’s are just another example of how not to run a public relations campaign.

There are those who oppose any bitumen sands extraction who signed the online petition, but the core of opposition, as always, comes from northwestern BC and the issue is an ill-conceived pipeline.

Enbridge has been successful in one area of its public relations strategy. They’ve convinced Albertans that Enbridge and the Northern Gateway pipeline is an essential part of not only the Alberta economy but Alberta culture. Any attack on Enbridge becomes an attack on Alberta. Hence the unreasoned anger when after Tim Hortons pulled the ads.

The big blame America lie

The other Big Lie we keep hearing from the Harper Government, is that this all orchestrated by American NGOs and activists. Again this shows Alberta-centric contempt for British Columbia. It’s very easy and convenient to keep believing that everyone in northern British Columbia are dumb and stupid and are being led by the ear by those nasty green Americans who have it in for the efforts to make Canada an energy superpower. That idea, promoted by the more conservative Canadian media has always been animal waste. The battle to protect the environment of northwestern British Columbia while at the same time attracting resource projects that have recognized and obtained social licence to operate has always and will always in BC on a case by case, community by community basis.

Macleans

The only media that so far has managed to get it half right is Jason Kirby writing in MacLean’s who notes that the trouble began on May 18 when Enbridge put up the Tim Hortons ad on their own website. (Did I mention that Enbridge is both incompetent and arrogant?) and it was immediately noticed by those individuals and activists that monitor the Enbridge website.

A morning shock with your morning coffee and Timbits

Social media across northwestern British Columbia, mostly Facebook, began spreading the news within hours of the ads appearing in the local Timmys. There were angry posts from individuals who had walked in Tim Hortons and saw the ads.

Post in the Kitimat Politics Facebook group.
Post in the Kitimat Politics Facebook group.

Why didn’t the media get the story?

So why wasn’t the story covered by the media at least ten days ago?

That’s because in this age of tight budgets, it’s considered easy and economical to try to all of northern BC cover from either Vancouver or Calgary; that means covering from far away both the coast where the pipelines and tankers may or may not operate to the east near the Rockies where the natural gas extraction is on going

If you look at map of northern BC, and the two federal ridings Skeena Bulkley Valley and Prince George–Peace River–Northern Rockies, the population is about 200,000 spread over an area about half the size of Europe. Both ridings in this region are supposedly vital to the future of the Canadian economy, but you wouldn’t know it from most of the media. (The Globe and Mail is an exception, with more ongoing coverage of northern BC than you will find in either The Vancouver Sun or The Province).

Elections Canada map showing just how big the two northern BC ridings are.  (Elections Canada)
Elections Canada map showing just how big the two northern BC ridings are. (Elections Canada)

As for CBC, there are just eight radio staff, two in Prince Rupert and six in Prince George to cover all the apparently vital issues across half the province. ( Almost all the staff work mostly for the Daybreak North morning show which dominates the regional rates but it looks like with the latest CBC cutbacks that at least one of those positions will be eliminated). CBC TV and Global cover the region from Vancouver.

At least the Vancouver based media make efforts to cover the north from time to time. The Alberta media, however, especially the Calgary Herald, is hopeless, and so biased against British Columbia and so dismissive of the issues here, that the coverage across Alberta is completely unreliable about 90 per cent of the time—it’s no wonder that the majority of Albertans have no understanding of British Columbia culture and issues.

Then there are the punditi, pontificating from their cubicles in Ottawa and Toronto without a clue, without doing the basic journalism of picking up the phone (or writing an e-mail) to actually find out what’s going on.

coyne1

coyne2

Andrew Coyne, for example, made these rather silly two tongue-in-cheek tweets Thursday night. While Coyne’s tweets do often exhibit a sense of humour, his excellent coverage of the decline of our democratic parliament has to be compared with his blind, unchecked ideological assumptions about the issues of the northwest, which are simplistic, cubicle bound and far off the mark. The same can be said for Jeffrey Simpson in his occasional writing about this region. Neither the view from the Hill, where you can see as far as the Queensway, nor from Bloor Street, where you can see part of the Don Valley, are vantage points to understand what is going in northern British Columbia.


Update: Rex Murphy, writing in the National Post,  has now joined the fray, no longer making a secret of his absolute disbelief in climate change and support for Enbridge. However, if you read his column, it is scathing in its contempt for the working men and women of British Columbia who want sustainable environmentally safe resource projects. It appears that to Murphy the only people in this country who actually work for a living in Canada are in Alberta and Newfoundland and no where else.   Kitimat has been an industrial town since it was founded in the 1950s, Kitimat rejoiced when former Mayor Joanne Monaghan succeeded in bringing a Timmys to Kitimat and the majority of Kitimat residents voted in the plebiscite against Enbridge.  But, of course, all those facts are irrelevant to Murphy and the other conservative pundits who never come within a thousand kilometres of northwestern BC, who believe we can’t think for ourselves and are easily misled by American environmentalists.  No wonder journalism is in a death spiral.


Error checks

So let’s look at the specific errors in the media coverage of the Tim Horton’s story.

globetimmys

Both Shawn McCarthy in the Globe and Mail and Kyle Bakyx on CBC.ca seem to accept without question that SumofUs, was the instigator of the petition. Like many issues in northwestern BC, the Lower Mainland or US based activist groups follow the lead of northwestern BC and jump on the bandwagon, not the other way around. Jason Kirby in MacLean’s says the boycott movement began a week ago. Here in Kitimat, it began within hours of the ads appearing in the local Timmys and was picked up on activist social media groups before the SumofUs petition site.

McCarthy repeats the conventional wisdom: “The Conservatives and oil industry supporters have been waging a public relations war with the environmental groups that oppose expansion of the oil sands and construction of new pipelines.”

When is the media ever going to learn that opposition to Enbridge is widespread across most of northern British Columbia, from First Nations to city and regional councils to a plurality of residents? When is the media going to drop the stock phrase “First Nations and environmentalists”? Does anyone remember the vote in Kitimat last April against the Northern Gateway project?

CBC.ca quotes Alan Middleton of York University “Enbridge, of course, is not just pipelines and oilsands; they are a whole range of products including heating people’s homes. Tims should have thought about that.” Again a mistake. I lived in Toronto for many years. A company called Consumers Gas supplied natural gas to homes until it was taken over by Enbridge, so Enbridge does heat the homes in Toronto. But what has that got to do with northwestern British Columbia? Why didn’t CBC.ca call the University of Northern British Columbia? Easier to call York (which by the way is where I got both my BA and MA)

McCarthy quotes Rempel as saying, “One has to wonder whether head office talked to their franchise owners in Alberta before making the decision. I imagine those calls are being made this afternoon – certainly there are a lot of people voicing their displeasure.”

The question that should have been asked whether or not Tim Hortons consulted their franchise owners in British Columbia before ordering them to play the ads. People here were “voicing their displeasure” from the moment the first Kitimatian walked into the local Timmys for an early morning coffee and had to stand in line while being told how wonderful Enbridge is.

Of course, if Albertans force Tim Hortons into reinstating the ads, that will only trigger a bigger boycott in British Columbia.  As Maclean’s asks, “what were they thinking?”

Jason Kenney, flying in, flying out

As for Jason Kenney, who is quoted by the CBC as tweeting:  “I’m proud to represent thousands of constituents who work for Enbridge & other CDN energy companies,” if Kenney aspires to be Prime Minister one day, he had better start thinking about representing more Canadians than just those employed by the energy industry—a mistake that his boss Stephen Harper keeps making.

Jason Kenney did visit Kitimat for a just a few hours in February 2014  for a tour of the Rio Tinto modernization project and an obligatory and brief meeting with the Haisla First Nation council. If Kenney had actually bothered to stick around a few more hours and talk to the community, everyone from the environmentalists to the industrial development advocates, he might not have been so quick on the trigger in the Twitter wars.

Not one of the major media who covered this story, not The Globe and Mail, not CBC.ca, not MacLean’s, no one else, once bothered to actually call or e-mail someone who lives along the Northern Gateway pipeline route in British Columbia, the area where the boycott movement actually began to ask about Enbridge’s track record in this region. The media still doesn’t get it. This morning’s stories are all about Alberta. As usual, my dear, the media doesn’t give a damn about northwestern British Columbia.

That is why the coverage of the Tim Hortons boycott is a double double failure of the Canadian media.

timmyskpoljune4




Where else the media is failing northwestern BC

Full disclosure. Since I took early retirement from CBC in 2010 and returned to Kitimat, I have worked as a freelancer for CBC radio and television, Global News, Canadian Press, The National Post, The Globe and Mail and other media.

However, largely due to budget cuts, freelance opportunities, not only for myself, but others across the region have dried up. The media seems to be concentrating more on the major urban areas where there is larger population base and at least more of the ever shrinking advertising dollar. I am now told more often than I was a couple of years ago that “we don’t have the budget.”

Now this isn’t just a freelancer who would like some more work (although it would be nice). If the media these days actually had environmental beats for reporters the boycott of Tim Hortons in northwest BC would have been flagged within a couple of days, not almost two and half weeks and later only when Alberta got hot under its oily collar.

So as well as the Tim Horton’s boycott here are two major ongoing stories from Kitimat that the media haven’t been covering.

100 day municipal strike

-Kitimat’s municipal workers, Unifor 2300, have been on strike since February 28. Three rounds of mediation have failed, the union has refused binding arbitration, the pool, gym and community meeting halls have been closed since February, the municipal parks and byways are now returning to the wilderness. Only essential services are being maintained (but residents still have to pay their property taxes by July 2, taxes that are skyrocketing due to increased assessments for home values based on LNG projects that haven’t started) By the time most people read this the strike will have been on for 100 days. There is no settlement in sight and both sides, despite a mediator ordered blackout, are fighting a press release war on social media. Can you imagine any other place that had a 100 day municipal workers strike with no coverage in the province’s main media outlets, whether newspaper or television? Local CBC radio has covered the strike, as has the local TV station CFTK.  (Update: District of Kitimat says in a news release that the mediator has now approved the DoK news releases.)

Of course, in the bigger picture the media concentrates on business reporting. There haven’t been labour reporters for a generation.

Kitimat air shed hearings

-The environmental hearings on the Rio Tinto Alcan proposal to increase sulphur dioxide emissions in the Kitimat Terrace air shed, after two weeks in Victoria, where there was no media coverage, are now continuing in Kitimat, where again there is little media coverage. CFTK is covering the hearings; otherwise the main coverage comes from the activist group DeSmog, hardly a credible or unbiased source. I made the decision not to cover the hearings either. I can’t afford any longer to sit around for two weeks, unpaid, no matter how vital the hearings are to the community.

So if most Canadians were surprised that there was a boycott of the unofficial national symbol, Tim Hortons, it’s because of that double double media fail and as the media continues to decline, as budgets are cut, as “commodity news” disappears, expect more surprises in the future. Oh by the way Kitimat is vital to the national economy but we can cover it from a cubicle in Toronto.

Final disclosure: I am not a coffee drinker. When I go to Timmy’s I prefer a large steeped tea and an apple fritter.

Bish Forest Service Road reopens to the public on March 1, 2015

The Bish Forest Service Road will reopen to the public on March 1, 2015. With the upgrades created by the Chevron-led Kitimat LNG project, the single lane logging rough logging is now a high quality gravel “resource road.”

The first 12 kilometres of the road will be open “to provide public access to connecting roads, recreational areas and natural hiking trails,” Chevron says.

“In terms of Kitimat specifically we’ve completed a number of key projects,” said David Molinski, Chevron’s lead for Regulatory and External Affairs. “We’ve made the upgrades to the Forest Service Road, and the Early Works we’ve been doing on site at the Bish Cove site.

Bish FSR
A construction check point on the Bish Forest Service Road during a media tour, October, 2014. (Robin Rowland/Northwest Coast Energy News)

“So we’ve been for the past couple of years putting a lot of effort on advancing that part of the project. We’ve completed the key elements of the Forest Service Road upgrades over the past four years,”  Molinksi said, “When we got there it was essentially a single track logging road and it was very difficult to access the Bish Cove site. So we wanted to make sure we had a road that would help support the project. That means having an all weather access all year round. That’s a very substantial development.

“It’s a public road, it’s always has been a public road, in fact it’s owned by the Crown.

“It’s time now for us to reopen that road. We had it closed for safety reasons. We wanted to make sure we completed the work on the road. There was blasting, moving rock, breaking down rock, stabilizing slopes.

“We had to make sure we could that work done in a safe way. Now that’s done, we’ve completed the road upgrades and we’re very happy to reopen it to the public. We look at it as being a long term legacy for the community.

Safety poster
Safety rules for travelling on the Bish Forest Service Road. (Chevron poster)

“The road is available for people in the community to use. There’s a number of recreation sites people in the community have used for many generations. So we’re pleased we can turn that road back into being publicly available and they can use it safely so they can get access to the areas they love around this community.”

In 2015, Chevron says, some work may continue on the road and “may include power line installation, paving and other construction activities.” There is also a need for the road to “stabilize” Molinksi said. “We’ll come back down the road and make a decision about what the right timing is to cap that road. Right now we don’t have a specific schedule It’s good for the road to stabilize and settle over the next couple of seasonal cycles.”

The decision about the future of the road will depend on the uncertain investment climate, due to the downturn in the energy industry.

In a panel at the open house on Feb. 24, Chevron said that projects like Kitimat LNG “are significant, very large and extremely complex with multiple moving parts that must all come together through hard work and perseverance in order to be successful.”

Open house
The Kitimat LNG open house at Riverlodge, Feb. 25, 2015. (Robin Rowland/Northwest Coast Energy News)

Chevron will continue to make a capital investment on the Kitimat side of the project but “the pace of field work in Kitimat at the LNG Plant will be decreasing as we focus capital spending on other aspects of the project.

For 2015, Chevron will concentrate on exploration in northeast British Columbia, Molinksi said, “That’s where the Liard Basin and the Horn River Basin are located and that’s where we’re developing the natural gas, substantial natural gas resources to support this project… This year we’re going to focus on getting additional data on the natural gas that we have a number of rigs that are running right now. We’re going to be drilling wells over 2015 and make sure we have a good understanding of those wells that are going to be supplying gas to this project. We have to know as much about that resource as this site here.”

“As a result there will be a decrease in site preparation work associated with the Kitimat LNG project and the Pacific Trails Pipeline during 2015,” the Chevron panel said.

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.