BC Alberta agree on five energy conditions: Twitter reaction

BC Alberta agreement on five conditions: BC news release

VANCOUVER – After officials worked through the night, Alberta Premier Alison Redford and British Columbia Premier Christy Clark today announced a framework agreement between the two provinces on moving energy resources to new markets.

“Agreement on B.C.’s 5 conditions is a necessary first step before any proposals can be considered for approval,” said Premier Christy Clark. “It is the way we do business in B.C. and it works. By working together with Alberta through these principles we can grow our economies, and strengthen Canada’s economy overall.”

The framework will also see the Government of British Columbia endorse Premier Redford’s Canadian Energy Strategy.

“A key part of our Building Alberta Plan is getting Alberta’s resources to new markets at much fairer prices so we can keep funding the programs Albertans told us matter most to them,” said Premier Alison Redford. “Today’s agreement with B.C. is good news for Alberta, for British Columbia and for all Canadians. I welcome Premier Clark’s endorsement of the Canadian Energy Strategy and our shared commitment to create jobs, long-term growth and position Canada as a true global energy superpower. We look forward to continued constructive dialogue with B.C.”

The governments of B.C. and Alberta agree that British Columbia’s conditions are intended to ensure both the responsible production of energy as well as its safe transport to new markets, giving projects the social licence to proceed.

B.C.’s conditions 1-4 are designed to achieve both economic benefit and risk mitigation on increased shipments through B.C. They mirror Alberta’s legislated commitments on responsible energy production. Alberta and B.C. agree that only through intensive environmental review and protection, enhanced marine safeguards and First Nations support, can projects proceed.

On condition five, Alberta agrees that B.C. has a right to negotiate with industry on appropriate economic benefits. Both governments agree it is not for the governments of Alberta and B.C. to negotiate these benefits. Both provinces reaffirmed that Alberta’s royalties are not on the table for negotiation.

BC Alberta agree on Christy Clark’s five conditions: Alberta news release

Office of the Premier
Office of the Premier of Alberta

Alberta and British Columbia reach agreement on opening new markets

VANCOUVER – After officials worked through the night, Alberta Premier
Alison Redford and British Columbia Premier Christy Clark today
announced a framework agreement between the two provinces on moving
energy resources to new markets.

“Agreement on B.C.’s 5 conditions is a necessary first step before any
proposals can be considered for approval,” said Premier Christy Clark.
“It is the way we do business in B.C. and it works. By working together
with Alberta through these principles we can grow our economies, and
strengthen Canada’s economy overall.”

The framework will also see the Government of British Columbia endorse
Premier Redford’s Canadian Energy Strategy.

“A key part of our Building Alberta Plan is getting Alberta’s resources
to new markets at much fairer prices so we can keep funding the
programs Albertans told us matter most to them,” said Premier Alison
Redford. “Today’s agreement with B.C. is good news for Alberta, for
British Columbia and for all Canadians. I welcome Premier Clark’s
endorsement of the Canadian Energy Strategy and our shared commitment
to create jobs, long-term growth and position Canada as a true global
energy superpower. We look forward to continued constructive dialogue
with B.C.”

The governments of B.C. and Alberta agree that British Columbia’s
conditions are intended to ensure both the responsible production of
energy as well as its safe transport to new markets, giving projects
the social licence to proceed.

B.C.’s conditions 1-4 are designed to achieve both economic benefit and
risk mitigation on increased shipments through B.C. They mirror
Alberta’s legislated commitments on responsible energy production.
Alberta and B.C. agree that only through intensive environmental review
and protection, enhanced marine safeguards and First Nations support,
can projects proceed.

On condition five, Alberta agrees that B.C. has a right to negotiate
with industry on appropriate economic benefits. Both governments agree
it is not for the governments of Alberta and B.C. to negotiate these
benefits. Both provinces reaffirmed that Alberta’s royalties are not on
the table for negotiation.

Kinder Morgan files last minute objection to Joint Review’s proposed conditions for Northern Gateway

Kinder Morgan logoKinder Morgan has filed a last minute objection to the Northern Gateway Joint Review Panel’s preliminary conditions for the Enbridge project.

One of the objections from Kinder Morgan is the provision in the JRP’s proposed Gateway conditions for “purpose built tugs” to escort tankers (a measure that Enbridge has proposed for the Gateway project). Another provision Kinder Morgan objects to is “secondary containment facilities at marine terminals” likely to become an issue if the Vancouver terminal is expanded by Kinder Morgan.

Overall, Kinder Morgan warns that if the JRP imposes some of the proposed conditions on the Northern Gateway, it could adversely affect future pipeline projects in British Columbia.

As well, Kinder Morgan, it appears, is already concerned that if the proposed oversight of Northern Gateway goes ahead, the Kinder Morgan plan to twin the pipeline from Alberta to Vancouver and expand terminal operations in Vancouver could face ongoing scrutiny and possible delays.

The Kinder Morgan document, from the company’s Calgary lawyer, Shawn Denstedt, of Osler, Hoskins and Harcourt, filed May 31, appeared among all the final arguments filed on Friday by intervenors and governments to the Joint Review Panel on Northern Gateway.

Kinder Morgan’s letter to the JRP comes long after the final deadline for such comments.

Kinder Morgan is a registered intervenor in the Northern Gateway hearings, but has only filed four previous documents during the entire multi-year process. The company does not appear on the list of intervenors scheduled to appear for oral final arguments in Terrace beginning on June 17.

On April 12, 2013, the JRP issued a preliminary list of 199 conditions for the planning, construction and operation of the Northern Gateway project.

Now Kinder Morgan is worried. Denstedt’s letter notes:

we believe a number of the proposed conditions may have a material impact on pipeline and infrastructure development in Canada and consideration should be given to the conditions from this perspective.

Diplomatically, Denstedt goes on to tell the panel:

Our comments are intended to assist the JRP in understanding the potential outcomes of the proposed conditions if they become generally applicable to industry.

Commercial considerations

Under what Detstadt calls “Commercial considerations”, Kinder Morgan says “we observe that several of the proposed conditions are likely to affect the manner and risks involved in procuring pipeline facilities and services.

The list points to

Three layer composite coating or high performance composite coating is required for the entire pipeline although other pipeline coatings are commonly used in the pipeline industry depending upon ground conditions encountered
.
Complementary leak detection systems must be identified that can be practically deployed over extended distances of pipeline.

The construction of purpose-built tugs involves significant cost and lead time

A volume is prescribed for the secondary containment facilities at the marine terminal without reference to existing codes.

The letter goes on to say that if the conditions proposed by the JRP for the Northern Gateway come into effect, in Kinder Morgan’s opinion, it could adversely affect other pipeline projects in the future.

If broadly applied to industry, such conditions may limit the ability of pipeline companies to obtain competitive quotes because there are few sources of the required materials or services. The effect of conditions that require the use of a particular material or service may be to grant commercial benefits to certain suppliers through the regulatory process beyond the requirements of existing codes. Since several export pipelines are currently proposed, there will be a heightened demand for labour and materials in the coming years. The commercial effect of conditions that may exacerbate shortages of labour and materials should be a relevant consideration for the JRP.

Timing

 

One of Kinder Morgan’s objections is to the timing the JRP proposes for the Northern Gateway project if it applies to other pipelines.

Several of the proposed conditions contain NEB approval requirements and filings deadlines several years prior to operations. For example, plans related to the marine terminal and research programs must be filed for NEB approval three years prior to operations.

We are concerned that requiring reports to be filed for approval several years before operations can create significant schedule risks for infrastructure development projects. For example, a project with a two year construction schedule could take three years to complete with such conditions. Any changes to the construction schedule and anticipated date of operations would affect the filing deadline. Project proponents need sufficient schedule certainty in order to plan major expenditures on labour and materials.

To mitigate such risks, it is relevant for regulators to consider whether the filing deadlines and approval requirements prescribed in conditions could materially alter a project’s schedule. Filing deadlines should be set at a reasonable time before operations in order to minimize the risk that such deadlines materially affect the critical path for a project.

Many of the conditions require NEB approval, and in some cases the participation of other parties in the approval process, in order to be satisfied. Fulfillment of those conditions will require additional time, a Board process and potentially litigation. For example, certain reports must be filed with the NEB for approval prior to commencing construction activities. Other conditions require reports to be filed for approval by the NEB prior to construction with a summary of how concerns from other government agencies and Aboriginal groups were addressed.

So Kinder Morgan says:

In our view, conditions that require subsequent board approvals and that attract the potential for additional regulatory processes should be the exception and not a new standard or norm. There must be clear, well understood rationales given as to why additional approvals are in the public interest.

And so Kinder Morgan asks:

As an alternative, the NEB may utilize its existing powers and processes to ensure that when filings are made to satisfy imposed conditions an additional approval process is not required.

Overall the company sees the rules for Northern Gateway as a step back to the days before deregulation.

A number of the conditions may be interpreted as reflecting a return to a prescriptive approach to regulation. These conditions prescribe detailed audit requirements instead of setting a goal oriented approach to allow the proponent flexibility in mitigating any adverse effects. Such conditions tend to focus on operational aspects that are covered by existing codes and regulations rather than setting goals for the proponent to mitigate any significant adverse effects.

Denstedt, again diplomatically, concludes by saying:

Kinder Morgan wishes to thank the JRP for the opportunity to present these high level perspectives regarding its proposed conditions. Our comments are intended to ensure that the wider implications of the proposed conditions on the pipeline industry and infrastructure development are given appropriate consideration in the deliberations and final recommendations of the JRP.

Kinder Morgan letter to JRP

“Trust me is not good enough,” harsh BC government argument slams Enbridge, rejects Northern Gateway project

The government of British Columbia has filed a harsh assessment of Enbridge Northern Gateway in its final arguments submitted May 31 to the Joint Review Panel—much harsher than the government press release giving notice of the rejection suggests.

“‘Trust me’ is not good enough in this case,” the filing by BC government lawyer Christopher Jones says of Enbridge’s plans to handle any possible disaster from either a pipeline rupture or a tanker spill.

Some of the arguments from the province’s lawyers echo points about the Kitimat Valley raised by Douglas Channel Watch and the Haisla Nation, at one point, pointing directly to evidence from Douglas Channel Watch’s Dave Shannon.

The news release repeats Premier Christy Clark’s five conditions for the Northern Gateway and other projects, putting a positive spin on the much harsher legal argument.

“British Columbia thoroughly reviewed all of the evidence and submissions made to the panel and asked substantive questions about the project including its route, spill response capacity and financial structure to handle any incidents,” said Environment Minister Terry Lake. “Our questions were not satisfactorily answered during these hearings.”

“We have carefully considered the evidence that has been presented to the Joint Review Panel,” said Lake. “The panel must determine if it is appropriate to grant a certificate for the project as currently proposed on the basis of a promise to do more study and planning after the certificate is granted. Our government does not believe that a certificate should be granted before these important questions are answered.”

The provincial government has established, and maintains, strict conditions in order for British Columbia to consider the construction and operation of heavy-oil pipelines in the province.

  • Successful completion of the environmental review process. In the case of Northern Gateway, that would mean a recommendation by the National Energy Board Joint Review Panel that the project proceed;
  • World-leading marine oil spill response, prevention and recovery systems for B.C.’s coastline and ocean to manage and mitigate the risks and costs of heavy-oil pipelines and shipments;
  • World-leading practices for land oil spill prevention, response and recovery systems to manage and mitigate the risks and costs of heavy-oil pipelines;
  • Legal requirements regarding Aboriginal and treaty rights are addressed, and First Nations are provided with the opportunities, information and resources necessary to participate in and benefit from a heavy-oil project; and
  • British Columbia receives a fair share of the fiscal and economic benefits of a proposed heavy-oil project that reflect the level, degree and nature of the risk borne by the province, the environment and taxpayers.

Final argument

In its filing the province tells the JRP:

While the Joint Review Panel (“JRP”) may of course consider other factors in its recommendation, the Province submits that the JRP must accord very significant weight, in the case of this project, to the fact that NG’s plans for terrestrial and marine spill response remain preliminary and that it cannot, today, provide assurance that it will be able to respond effectively to all spills. Given the absence of a credible assurance in this regard, the Province cannot support the approval of or a positive recommendation from the JRP regarding, this project as it was presented to the JRP.

In the alternative, should the JRP recommend approval of the pipeline, the JRP must impose clear, measurable and enforceable conditions that require NG to live up to the commitments it has made in this proceeding.

Hazards from Kitimat’s geoglacial clay

The provincial government identifies a major potential hazard in the Kitimat valley, glacio-marine clay deposits that “threaten the integrity of the pipeline.”

Overall the province appears to accept the arguments from Douglas Channel Watch and other environmental groups that geo hazards along the pipeline route present a significant risk, one perhaps underestimated by Enbridge Northern Gateway.

NG does not dispute that spills from the pipeline may occur. While the project will be new, and built using modern technology, the fact remains that pipeline spills do happen. Indeed, Enbridge had 11 releases greater than 1000 barrels between 2002 and 2012…

The Province has concerns about the assertions NG has made regarding the probability for full-bore releases resulting from geohazards. NG asserts that full-bore spills will be very rare. However, this assertion must be considered in light of the fact that NG’s analysis of the geohazards that the pipeline could face is at a preliminary stage….

The rugged topography of West Central British Columbia is prone to slope failures.
Terrain instability may pose significant challenges for linear development.
Despite these challenging admits that its assessment of existing and potential geohazards along the pipeline route is not complete and that further investigations and more detailed geohazard mapping are required. For instance, although NG acknowledges that the potential presence of glacio-marine clays in the lower Kitimat Valley can threaten the integrity of a pipeline; its report on glacio-marine clay fails to identify a significant area of potential instability that had been previously reported in the relevant literature…

Since all geotechnical hazards have not been identified with the investigations carried out to date, and since comprehensive investigations will not be completed until the detailed design phase, NG has but a rough idea of the mitigation measures that may be employed in order to mitigate the geotechnical hazards that may be encountered…

Spill response

The province’s arguments also indicates that Enbridge Northern Gateway has not done a good enough job regarding spill response, whether from a full bore rupture or a pin hole leak.

it must be remembered that full-bore spills are less frequent than smaller spills, which could still have a significant environmental effect. Indeed, since risk equals consequence times probability, smaller spills could pose a higher risk as they are more frequent. While NG has produced considerable evidence with respect to the likelihood and effects of full-bore spills… the evidence concerning the potential for other spills is limited. While the Province supports assessing the effects of any spill based on a full-bore release, as it would allow for an analysis of the worst-case scenario, focus on full-bore releases should not eliminate consideration of the potential impact of smaller events…

NG stated that [a] table [in the evidence], which includes probabilities for medium sized spills, would be “replaced by. a detailed characterization of each pipeline kilometre and region as part of the ongoing risk assessment work,” but the province says, a later table that “now replaces the concept of large and medium spills”. focussed only on full-bore releases, a relatively rare event.

Similarly, NG also calculated spill return periods for pinhole and greater-than-pinhole events. Taking the figures NG for “greater-than-pinhole” releases results in a spill return figure of 76.7 years. The Province also has concerns about the information that NG has provided in this regard. First, because it focussed on spill events, there is no information about spill size, which, we submit is a critical issue in considering the risk posed by these kinds of events. Second, NG does not include the potential for spills that could occur as a result of “operating and maintenance procedures” that deviate from the norm. Finally, NG assumes that all geotechnical threats would result in a full-bore rupture. This assumption appears to be incorrect…

Premier Christy Clark has, as part of her five conditions, said there must be a world class spill response system. Enbridge responded by saying there will be. The province then turns around and says Enbridge has failed to do prove it.

Because of the potential for spills, and their impact, NG has committed to develop a comprehensive spill response capability. Indeed, NG has stated that it intends to have a “world-class response capability” for the Project. Given the real potential for spills to occur, and the devastating effect of a spill should a significant one take place, the Province submits that NG must show that it would be able to effectively respond to a spill. As set out below, the Province submits that it has failed to do so.

High stream flow, heavy snow at Kitimat

Again, the province appears to accept arguments from Douglas Channel Watch that Enbridge has underestimated the challenges of handling a spill in a remote area. The province also accepts the argument that booms are ineffective in high stream flow in the Kitimat River.

Although it asserts that it will be able to effectively respond to any spill, NG admits that responding to a spill from the pipeline will be challenging. In particular, it admits that a spill into a watercourse at a difficult to access location would present the greatest difficulty for clean-up and remediation…

Many parts of the pipeline will be located in remote areas, located some distance from road networks and population centres. For example, many of the rivers… are identified as remote or having no access. Road access to the pipeline and places where a spill might travel down a watercourse is important to allow for effective spill response…

In some cases, the steepness of the terrain will make responding to spills very challenging. NG acknowledges that the Coast Mountains’ topography is extreme…

As the JRP noted during cross examination by the Province of NG with respect to the Clore River, it has had the opportunity to take a view of the entire route. It will therefore know the steep and rugged terrain through which the pipeline would pass.

The presence of woody debris could also pose a challenge to spill response, requiring a shift of response activities to upstream locations…

If a spill were to occur during a period of high flow conditions, a common occurrence in British Columbia rivers, then some aspects of the response may have to be curtailed, or at least delayed until the high flow event recedes. At certain water velocities, booms become ineffective, and are potentially unsafe to operate.

The presence of heavy snow could also impede access during response operations, requiring use of snowmobiles, snow cats, and helicopters. In the Upper Kitimat and Hoult Creek Valleys, snow accumulation can reach 8-9 metres. However, weather may limit the ability of helicopters to aid in spill response…

Many of these challenges are recognized by NG. In the Preliminary Kitimat River Drainage Area Emergency Preparedness Report (“Kitimat Report”), NG refers to the challenges of winter conditions, avalanches and debris slides, heavy snow, spring melt, Fall freeze-up, patchy ice, and fast-flowing watercourses.

Sinking dilbit

The province also accepts the argument that under some circumstances that diluted bitumen can sink, arguments raised by David Shannon of Douglas Channel Watch.

These challenges are compounded by the fact that in certain conditions diluted bitumen (“dilbit”) can sink in a watercourse. This occurred in the case of Enbridge’s spill in Michigan. This was, as a result, an issue of significant importance to the parties in this proceeding…

The evidence presented by NG in this regard is inconsistent. For example, some evidence it presented suggests that dilbit may sink when it enters water, after a process of weathering; other evidence it has submitted suggests that dilbit will only sink if it combines with sediment. In its response to [a submission by the Haisla Nation] NG states that “If diluted bitumen becomes heavily weathered some oil may sink in fresh water environments.” Similarly, in its response to Dave Shannon’s IR No. 1, NG states that 

Diluted bitumen emulsions will remain buoyant in waters with densities greater than approximately 1.015 g/cc. If the water density drops below approximately 1.015 g/cc,in zones of fresh-water intrusion, weathered and emulsified diluted bitumen products may sink to the depth where the density increases to above 1.015 g/cc.

Similar also is NG’s response to Dr. Weir’s IR No. 2.6, where NG states:

The weathered diluted bitumen would have a density approaching 1.0 g/cc, which indicates that once the diluted bitumen weathers it may be susceptible to sinking in fresh water.

Finally, in the Kitimat Report NG states that:

Examples that may lead to oil not remaining on the water surface include:
• Oils with specific gravities equal to or greater than the receiving medium (fresh- or saltwater)
• Oils that have weathered and, in losing lighter-end fractions, have reached a specific gravity equal to or greater than the receiving water
• Oil that is near the same density as the receiving water and that is characterized as a 3-dimensional flow (non-laminar to turbulent flow such as found in streams, rivers, areas with fast tidal currents, breaking waves)
• Oil with sediment (mixed into oil or adhered to oil droplets)…

…submerged oil may eventually sink with increased weathering, if in receiving water with lower density, or if sufficient sediment is incorporated.

Northern Gateway contradictory

The province’s argument goes on to point more inconsistencies with Northern Gateway’s submission on dilbit in rivers, telling the JRP “In short, what dilbit will do when it enters water remains unclear.”

On the other hand, another NG witness stated that dilbit cannot sink, as this would be contrary to an “immutable fact of physics”. In cross examination, Dr. Horn, Mr. Belore and other witnesses maintained that dilbit will only sink in the presence of suspended solids, or after a long period of weathering.

However, NG’s evidence with respect to the type of sediment that could combine with dilbit to form material that may sink in water is unclear. Dr. Horn testified that “fine grain sediments…provide the greatest amount of surface area which is one of the reasons that oil sank in [Michigan]”. On the other hand, Mr. Belore appeared to suggest that, in the marine context at least, finer sediments reduce the potential for oil to sink as they are lighter. The evidence with respect to the material that may bind to dilbit and contribute to its sinking is unclear…

NG’s views with respect to the flow conditions under which dilbit may sink is also contradictory. On the one hand, it states that “Higher flow rates and increased turbulence typically will entrain more oil into the water column leading to the potential for oil to enter pore spaces in permeable sediments.” On the other, it states that “Oil sinking is unlikely to occur in areas with fast currents…”

Evidence provided by other parties suggests that dilbit may sink when weathered. In particular, Environment Canada’s evidence in this proceeding contrasts sharply with NG’s. For example, Environment Canada states that:

Northern Gateway’s response planning model does not account for sinking oil or for oil suspended particulate matter interactions…For oils with densities close to that of water, like both the diluted bitumen and synthetic crude products, even small amounts of sediment can cause sinking. Environment Canada is concerned that oil sinking and oil-sediment interactions have been
underestimated in the provided scenarios. In the cases of both the Enbridge-Kalamazoo and the Kinder Morgan-Burnaby spills, significant oil-sediment interactions occurred.

The changes to dilbit as it ages in the environment may affect cleanup. Although initially buoyant in water, with exposure to wind and sun, as well as by mixing with water and sediment in the water, the density of dilbit can increase to the point that the oil may sink. Recovery and mitigation options for sunken oils are limited.

Not only has Environment Canada expressed the view that even small amounts of sediment may cause oil to sink, its witness also stated under cross-examination that high velocity rivers may carry high suspended sediment concentrations, and that, at certain times of the year, sediment load could enter the marine environment. Although NG acknowledges that sediment loads and oil-sediment interactions are a critical factor in predicting the behaviour of spilled oil, it has not, in Environment Canada’s opinion, provided a complete baseline data set on sediment loads, despite requests that such data be provided.

While NG has submitted information respecting the laboratory testing of dilbit, an Environment Canada expert testified that tests conducted in a laboratory setting provide only limited information that cannot be relied upon in isolation to predict the fate and behaviour of hydrocarbons spilled into the environment. Instead, information gathered from real spill events must inform the analysis, and consideration must be given to the conditions, including water temperature, suspended sediment concentrations and wind speed, to be encountered in the “real world”.

Environment Canada has also made it very clear that the evidence provided to date by NG does not allow for a full understanding of the behaviour of spilled dilbit. In the opinion of Environment Canada witnesses, the evidence has not provided sufficientclarity with respect to the weathering, evaporation or sedimentation processes dilbit may be subjected to in the environment. Given the unique nature of this product, further research is warranted before one can ascertain whether dilbit will sink or remain on the water surface. Those concerns were echoed by an expert retained by the Gitxaala Nation.

In addition, the evidence of other parties raises the possibility of the need to respond to submerged oil. NUKA research, on behalf of the Haisla Nation, opined that “submission documents overall still grossly underestimate the potential for sunken or submerged oil, particularly for pipeline spills to rivers.” EnviroEmerg Consulting, for the Living Oceans Society summarizes well the uncertainty that remains with respect to the behaviour of oil:

There are no definitive statements in the [Environmental Impact Statement] EIS to explain if bitumen diluted with condensate will emulsify, sink or do both if spilled. The supporting technical data analysis in the EIS is based on laboratory tests. There are no in-situ field tests, empirical studies, nor real incidents to validate these findings. This raises significant uncertainty that current spill response technologies and equipment designed for conventional oil can track and recover the diluted bitumen in temperate marine waters. In essence, the assumption that the diluted bitumen can be recovered on-water has yet to be tested.

In short, what dilbit will do when it enters water remains unclear. NG recognizes this lack of clarity itself. As was stated by one of its witnesses, “it’s extremely difficult to predict the behaviour of this product”.

NG admits that additional research needs to be done with respect to understanding how dilbit behaviour.

The provincial argument concludes:

The Province has serious concerns about the lack of clarity and certainty about what dilbit will do if it were to enter the water, the preliminary and indeed contradictory nature of the evidence with respect to NG’s remediation strategies and actions to address sunken oil, and the fact that its proposed tactics have not been evaluated for use in British Columbia. These factors, taken together, suggest that, at least as of today, NG is not yet prepared to deal with sunken oil in the event there were a spill of dilbit into a British Columbia watercourse. By itself this is a cause for serious concern in relation to the fundamental question in this proceeding, namely whether the JRP should recommend approval of this project. But at the very least, this means that a strong condition must be imposed requiring further research on the behaviour of dilbit.

Spill response only preliminary “All roads are driveable”

The provincial argument says, in italics, that the Northern Gateway’s spill response plans are “only preliminary” and adds Northern Gateway’s plan to provide detail operational plans six months before the beginning of the pipeline operations is not good enough. “It is not possible for NG to assert, nor for the JRP to conclude, that NG will be able to access all those places where a spill may travel, and to respond effectively.”

Despite the challenges to responding to a spill from the pipeline, including the challenge of responding to submerged and sunken oil, NG’s plans for responding to a spill have not yet been developed. NG has committed only to providing its detailed oil spill response plans to the National Energy Board 6 months in advance of operations. In the context of this project, the Province remains very concerned that NG has not yet demonstrated its ability to respond effectively to spills from the pipeline.

When specifically asked “In the absence of that planning…to address the challenges that we’ve been discussing, how is it we are to be confident that Northern Gateway will, in fact, be able to effectively respond to a spill?” NG replied that “There is a lot of work that needs to be done.”

Of particular concern, despite its admission that a spill into a watercourse in a remote location would pose a significant challenge, NG has not yet determined those locations it could access to respond to a spill, including the control points utilized for capturing and recovering oil passing that location. Such access will only be determined, if possible, during detailed planning. At this time, NG also does not know what portion of water bodies would be boat-accessible in the event of a spill. The 2010 Michigan spill, which was the subject of much questioning during the hearing, occurred in a populated area, where there were many potential access locations. This will of course not be the case if a spill were to occur in a remote river in British Columbia.

While NG has prepared a document showing some possible control points that might be used for spill response in the event of a spill in some rivers, NG concedes that its work in this regard is preliminary, and only pertains to some of the control points that would ultimately have to be established. NG helpfully provided additional information to that which was originally filed with respect to the travel distance between pump stations or the terminal and certain potential control points. However, travel times to the control points that have been identified do not take into account mobilization time, and assumes all roads are drivable.

Given the incompleteness of NG’s evidence in this regard, the Province submits that NG cannot currently assert that there would in fact be viable control points where a spill could travel to. In addition, even if accessibility to control points had been fully validated, in order for NG to assert that it could respond effectively to a spill, it would also have to know the means by which personnel and equipment would gain access to respond to oil that had come ashore or sunken to the sediment. Given the preliminary nature of the evidence presented by NG, this is of course not known.

The Province is very concerned that, in the event of a spill, some places where a spill could reach will be inaccessible, and therefore not amenable to spill recovery actions. While NG states that it will be able to access control points at any location along the pipeline, it has simply not provided the evidence in this proceeding to substantiate this assertion. The Province submits that, as of today, it is not possible for NG to assert, nor for the JRP to conclude, that NG will be able to access all those places where a spill may travel, and to respond effectively.

In addition to access, there are a number of other challenges to operating in British
Columbia in respect of which NG has completed only very preliminary work.

• The pipeline could be covered by heavy snow at different times of the year; NG states that it will have to review alternative methods of access to deal with this, but has presented no specific evidence on how this challenge will be addressed.
• NG has not yet developed specific plans about how it would deal with oil recovered from a spill, and has not yet determined disposal locations.
• NG has not yet determined the location or the contents of the equipment caches to be used to respond to spills.
• It has not determined year-round access to the pipeline, which will be evaluated as part of detailed planning.

Kitimat River response

The province takes a harsh look at Northern Gateway’s plan for a response on the Upper Kitimat River and Hunter Creek.

Similarly, the Province is concerned about the ability of NG to respond to a spill in the Upper Kitimat Valley. When asked by the Douglas Channel Watch

“…in the context of the Upper Kitimat Valley, does this mean because of the steepness of the terrain and limited road access to the river, that containment at some locations at the source will be impossible, and the majority of your efforts will be at the first accessible locations downstream?”

NG was only able to reply that:

“again it depends on the specific conditions. But as Dr. Taylor indicated, in the development of the response plans we would need to look at various scenarios, various times of year, develop plans so that it would identify the appropriate response locations at those times.”

NG’s targeted spill response time of 6-12 hours needs to be set against the reality that, in the case of a watercourse spill, oil may travel many kilometres downstream while NG is still mobilizing. In this proceeding NG has provided considerable information with respect to how far and fast oil can travel in a watercourse. For example, with a spill into Hunter Creek, NG has stated:

Based on water velocities, a release at this location could reach the Kitimat River estuary 60 km downstream within four to ten hours, depending on river discharge.

Dr. Horn has indicated that these figures are very conservative, and that the actual times to reach Kitimat would be a longer period. However, no other definitive evidence on these times was presented by NG.

Enbridge doesn’t learn from its mistakes

The provincial argument then goes on to say, again in italics, Enbridge does not follow procedures or learn from mistakes and concludes “while NG asserts that its spill detection systems will be world-class, it has not yet chosen to adopt spill detection technologies that would achieve that objective.”

The provincial argument goes over Enbridge’s spill record in detail, including the Marshall, Michigan spill which was harshly criticized by the US National Transportation Safety Board.

Concerns about NG’s inability to respond to a spill are magnified by Enbridge’s conduct with respect to the spill which took place in Michigan. NG concedes that, in that case, there were procedures in place that were not followed. NG asserts that it now has in place a number of “golden rules”, including that whenever there is a doubt with respect to whether the spill detection system has detected a leak, the pipeline must be shut down. However, NG concedes that this rule was in place before the Michigan spill; it self-evidently was not followed. In fact, the rule under which Enbridge would shut down its pipeline system within 10 minutes of an abnormal occurrence which could be immediately analyzed was put into place following a spill in 1991. At that time, similar commitments were made indicating that procedures would change and that a spill of that nature wouldn’t take place again….

despite the fact that the relevant technologies had been in existence for some
10 years, and despite the existence of crack-related failures that led to the development of such technologies, Enbridge had failed to put in place a program that would have detected the Marshall spill

The province wraps up the response saying by telling the JRP:

In short, if NG is relying on its ability to respond effectively to a spill for a positive recommendation from the JRP, then it must show that it will in fact have that ability. The Province submits that NG has not shown that ability in this proceeding.

The Province submits that requiring NG to show now that it will in fact have the ability to respond effectively to a spill is particularly important because there will be no subsequent public process in which that ability can be probed and tested. NG has pointed out that its oil spill response plans will be provided to the NEB for review, and has committed to a third party audit of its plans. However, it also acknowledges that there will be no means by which those plans could be tested through a public process.

On the pipeline project, BC concludes

The Province submits that the evidence on the record does not support NG’s contention that it will have a world-class spill response capability in place. The challenges posed by the pipeline route, the nature of the product being shipped, the conceptual nature of its plans to date and Enbridge’s track record mean that the Province is not able to support the project’s approval at this time. The Province submits that its concerns in this regard should be seriously considered by the JRP as it considers the recommendation it will be making to the federal government.

From the Orange Coast: The pollsters lost big in the BC election–but not for the reason everyone is talking about

Updated with clarification

The pollsters were the biggest losers in the British Columbia provincial election on May 14—but not in the way everyone is talking about.

It’s clear to the Wednesday morning quarterbacks that the big issue in BC was the economy, and voters chose that economy over the environment.

That’s where the pollsters failed and have failed time and time again for the past decade. As long as the pollsters keep asking the stupid question “What’s more important the environment or the economy?” a majority of voters, especially in uncertain times, will choose the economy. Politicians will campaign, as Christy Clark did brilliantly, by promising that there are better economic days ahead, putting the environment far down the priority  list.

By the time Canadians and all human beings realize that a viable economy is based on a sustainable environment it may be too late to save either.

The Liberal majority under Christy Clark was a big surprise; the polling data indicated, at first, that there would be a big NDP majority and in the final days that the Adrian Dix and the NDP would sneak into the Legislature still in majority territory.

Instead, Christy Clark, who until (if) she finds a seat, will be running the province as premier from the legislature galleries.

The BC free-enterprise coalition is satisfied, for the moment. The usual cabal of University of Calgary economic pundits are cheering for their sponsors in the oil patch, with the National Post,  Globe and Mail  and Sunmedia acting as their echo chamber. (Why the eastern media insist on always having Calgary academics write about BC is rather mind boggling. If they want ultra conservative BC point of view, there’s always the Fraser Institute, but even the Fraser Institute is junior to Alberta it seems)

The trouble is that the eastern establishment mainstream media are as out of touch as the pollsters.  The Globe and Mail editorial, like most of the eastern media, once again sees British Columbia as nothing more than a junior partner in Confederation, existing to serve the interests of Alberta, with the concerns about our future secondary.

 It now falls to Ms. Clark, who was cagey about her position on the Trans Mountain project, to take an objective look at the proposal, let go of her populist, B.C.-first rhetoric, and ensure that her government is an open-minded partner with Alberta in its bid to get its oil to tidewaters for export. Any reviews of the pipeline project must be done quickly and with a deadline.

It’s just plain unmitigated arrogance, but rather typical,  to tell a premier who just won  a majority in the legislature and the popular vote to “let go of her populist BC-first rhetoric.”

 

Christy Clark
Christy Clark laughs at a joke at the Kitimat Valley Institute, April 4, 2013, where she announced her plan to eliminate the provincial debt in 15 years via taxes and other payments from LNG (Robin Rowland)

The liquifaction factor

There’s one big problem, a very big problem, with Clark’s promises. She opened her campaign in Kitimat by promising that the liquified natural gas developments will not only slay the deficit but pay down the BC provincial debt in 15 years.

I asked Clark in the media scrum after her announcement how she could make such a prediction when the LNG market is so volatile. She replied that her predictions were based on very conservative estimates. That was spin.

Clark based her election campaign on a promise that not only hopes to foretell the future for the next fifteen years but on liquifaction.

Now liquifaction has two meanings. First is the freezing of natural gas to LNG. Second is the problem that occurs during an earthquake when water saturated ground turns into a liquid, bringing about the collapse of countless buildings with the death and injury that follows.
Clark based her campaign on the hope that the LNG market will not liquify—as in the second meaning.

The LNG market looked so simple two years ago. Buy natural gas at low North American prices, pipeline it to the west coast, load it on tankers and sell it in Asia at the higher natural gas price there which is based on the price of oil. But, wait, the free market doesn’t work that way (sorry free enterprise coalition). Customers in Asia don’t want to pay the full oil-based price for natural gas if they can get it via the US Gulf ports at a cost plus North American price. If the export price of LNG falls, even if the BC projects proceed, the price will be a lot lower than Clark and the energy cheerleaders expect and there will be no new golden age for the BC economy.

Changes in the LNG market are happening at warp speed and it is hard to keep up (And many people in Kitimat are trying to keep up with the daily volatility since the future of the town may depend on LNG). Unfortunately, the dying mainstream media failed to explain, even in the simplest terms, that Christy Clark’s LNG promises might be as empty as a mothballed tanker. This is one case where concentrating on the horse race—and the grossly inaccurate polls—was a blunder, when there should have been reality checks on the LNG promise. The conservative cheerleaders in the media actually didn’t do their readers much good when they failed as  reporters to check out the real state of the energy industry or predicted economic catastrophe if there was an NDP victory.

The NDP failure

The NDP campaign under Adrian Dix was not up to its appointed task of explaining the need for both a viable economy and a sustainable environment.  Most pundits point to Dix’s  mid-campaign switch to opposing the Kinder Morgan pipeline expansion as the beginning of the NDP decline.

More telling, for me, was Dix’s failure to explain the proposed two-year moratorium on fracking. There are lots of moratoriums and holds on fracking in North America and around the world. The Canadian media, however, failed miserably (if it even bothered to check) that fracking moratoriums are becoming a standard, although controversial, practice worldwide. A moratorium on fracking today is prudent given the uncertainty over current practices.

Yes, fracking has been used for 50 years but on a much smaller scale. There are two new factors. First is the sheer volume of operations, with no idea what the massive increase in fracking will do to the environment, especially the ground water. Second is the stubborn refusal of companies to release proprietary information on the chemicals they use—the same “public be damned”  attitude toward environmental concerns that has got pipeline companies in trouble as well.

Christy Clark and the conservative commentators successfully painted the fracking moratorium as stopping all economic development in the province. Dix and the NDP completely failed to emphasize that their platform was that the party wanted industrial development in the province, but didn’t want to rush into development that will cost the province and its taxpayers down the road. (And taxpayers will eventually have to pay to clean up unfettered development long after the companies that profited have left town, something deficit and debt hawks always conveniently ignore.)

The Orange Coast

The Orange coast
BC election map shows the coastal areas where tankers and pipelines are the biggest issue went solidly for the NDP

As Tyler Noble (formerly with CFTK News and now with the District of Kitimat) pointed out in a Facebook post, the electoral map shows perhaps the real story of the election. The British Columbia coast is entirely NDP orange. The Interior of BC went Liberal. The fight over tankers and pipelines is not going to go away with the result of this election, it’s going to get louder and a lot nastier.

So the University of Calgary pundits, the conservative columnists and editorialists from Calgary to Toronto and the Globe and Mail editorial board will soon have to forget their cheers and go back to complaining about the BC peasants who have to be “educated” about how good pipelines are for the economy.

The polls

The pollsters are now trying to find out what went wrong, and beginning to ask how to find out who will actually turn up at the voting booth?

Even with the problems pollsters face with call display refusals, fewer landlines and the possible unreliability of internet panel polling, even with the flawed polling data some things are clear.

The turnout, as currently reported, was 52 per cent. The student vote (an actual vote) went heavily to the NDP and the Greens. Part of the student vote result is traditionally, younger people generally tend to vote “progressive” parties. Young people, increasingly disillusioned by partisan politics, are not turning out to actually vote. With high unemployment among millennials and teenagers, these potential voters want jobs, but they’re also worried about the future of the planet. They’re not turning out to vote because many say they have no one to vote for (despite the appeals of the NDP and the Greens.)

Many older people, both on the left and the right are trapped in an obsolete world view of progressive views versus big business or the dreaded socialism versus free enterprise. Older people, worried about their economic future do vote and are often more small c conservative.

Clark campaigned on that paradigm and she won.

Be careful for what you wish for.

The failure of the economy vs environment question

It may be that by the next federal election in 2015 and by the next BC election in 2017, there might be, it is hoped, a profound change in the political narrative. If the pollsters hadn’t asked that obsolete and stupid question about the environment verus the economy, business versus socialism, they might actually have had some good data in this election.

The times, as Bob Dylan sang, they are a changing. The paradigm is shifting. In just the past few months there are hints of the rise of a growing “green conservative” movement.

Preston Manning, the founder and first leader of the Reform Party is now promoting the “green conservative”

In the United States, green conservatives are adding to the ruptures in the Republican Party. There is even a branch of the Christian Coalition, that is splintering because it too supports the idea of green values because it sees green as supporting family values, helping the poor and the idea of stewardship.

We see lots of green conservatives here in northwest BC among the hunters, fishers and fishing guides and those who work in the industrial sector who like hunting, fishing, hiking and boating. Did they vote for the NDP or the Liberals?  Usually the sample size in northwest BC is too small, but drilling down might indicate that there were  enough green conservatives who voted for what should now be called the Orange Coast.

If Adrian Dix and the NDP had campaigned effectively with an eye on the green conservatives, there might actually be an NDP majority. If Christy Clark actually keeps her hints of a possible tilt toward green conservatism and moves away from the free enterprise at any cost faction of the Liberals (including that 801 coalition that died at 802), she might actually be in for a long run as BC premier.

If, on the other hand, as the Globe and Mail advocates this morning, if Clark does move,  bowing to Alberta’s demands, toward more unfettered development, as environmentalists fear and the aging free entrerprisers would love, the next provincial election will be one to watch, perhaps with the Greens filling a vacuum created by the Liberals and the NDP.

As for the pollsters, there have been two major failures in Canada, the BC and Alberta elections. The pollsters were wrong about the Israeli election as well, which means polling failure is not confined to Canadian politics. It’s time for the pollsters to stand down, go back to the beginning, and take a look at all their practices, including the basic questions they are asking and to wonder if the questions reflect an unconscious bias in favour of the party paying for the poll (good professional pollsters do usually try to avoid open bias question sequences).

If the polling companies don’t change, they too will soon follow the dying mainstream media into oblivion, so neither will be around to see a possible future where the concerns for the environment are a given and the debate is over the real solution to stave off catastrophe.

 

This post has been updated to clarify that those who I call Conservative cheerleaders failed to be clear about the energy industry, not the overall campaign.

 

 

 

 

 

 

SFU study says spill hazards for Kitimat from tankers and pipelines much greater than Enbridge estimate

A study by two scholars at Simon Fraser University says that the Enbridge Northern Gateway project is much more hazardous to Kitimat harbour, Douglas Channel and the BC Coast than Enbridge has told the Joint Review Panel.

The study by Dr. Thomas Gunton, director of the School of Resource and Environmental Management at SFU and Phd student Sean Broadbent, released Thursday May 2, 2013 says there are major methodological flaws in the way Enbridge has analyzed the risk of a potential oil spill from the bitumen and condensate tankers that would be loaded (bitumen) or unloaded (condensate) at the proposed terminal at Kitimat.

Enbridge Northern Gateway responded a few hours after the release of the SFU study with a statement of its own attacking the methedology used by the two SFU scholars and also calling into question their motivation since Gunton has worked for Coastal First Nations on their concerns about the tanker traffic.

Combination of events

One crucial factor stands out from the Gunton and Broadbent study (and one which should be confirmed by independent analysis). The two say that Enbridge, in its risk and safety studies for the Northern Gateway project and the associated tanker traffic, consistently failed to consider the possibility of a combination of circumstances that could lead to either a minor or a major incident.

Up until now, critics of the Northern Gateway project have often acknowledged that Enbridge’s risk analysis is robust but has consistently failed to take into consideration the possibilty of human error.

As most accidents and disasters happen not due to one technical event, or a single human error, the SFU finding that Enbridge hasn’t taken into consideration a series of cascading events is a signficant criticism.

Overall the SFU study says there could be a tanker spill every 10 years, not once in 250 years, as calculated by Enbridge.

It also says there could be 776 oil and condensate spills from pipelines over 50 years, not 25 spills over 50 years as projected by Enbridge. (And the life of the project is estimated at just 30 years, raising the question of why the 50 year figure was chosen)

Enbridge track record

The study also bases its analysis of the possibility of a spill not on Enbridge’s estimates before the Joint Review Panel but on the company’s actual track record of pipeline spllls and incidents and concludes that there could be between one and 16 spills (not necessarily major) each year along the Northern Gateway pipeline.

 

Findings for Kitimat

Among the key findings for Kitimat from the SFU study are:

  • Enbridge said the possibility of tanker spill was 11.3 to 47.5 per cent over the 30 year life of project. The SFU study says the possibility of a spill within the 30 years is 99.9 per cent.
  • The SFU study says it is likely there will be a small spill at the Kitimat Enbridge terminal every two years.
  • The SFU study estimates that there will be eight tanker transits each week on Douglas Channel if the Northern Gateway project goes ahead and more if it is expanded.  (This, of course, does not include LNG tankers or regular traffic of bulk carriers and tankers for Rio Tinto Alcan)
  • The SFU study says that while Endridge did study maneuverability of tankers, it paid little attention to stopping distance required for AfraMax, SuezMax tankers and Very Large Crude Carriers.
  • The SFU study says Enbridge inflated effectiveness of the proposed tethered tugs and maintains the company did not study ports and operations that use tethered tugs now to see how effective tethering is.
  • The SFU says Enbridge’s risk analysis covered just 233 nautical miles of the British Columbia coast, where as it should have covered entire tanker route both to Asia and California, raising the possibility of a tanker disaster outside British Columbia that would be tied to the Kitimat operation.
  • Based on data on tanker traffic in Valdez, Alaska, from 1978 to 2008, the SFU study estimates probability of a 1,000 barrel spill in Douglas Channel at 98.1 per cent and a 10,000 barrel spill at 74.2 per cent over 30 year Gateway life. The Valdez figures account for introduction of double hulls after Exxon Valdez spill in 1989 and notes that spill frequency is much lower since the introduction of double hulled tankers.
  • According to a study by Worley Parsons for Enbridge in 2012, the Kitimat River is the most likely area affected by an unconstrained rupture due to geohazards in the region. According to the Worley Parsons study, geohazards represent the most significant threat to the Northern Gateway pipeline system.

Flawed studies

The SFU scholars list a series of what they say are major methological or analytic flaws in the information that Enbridge has presented to the Joint Review Panel, concluding that “Enbridge significantly understates the risk of of spills from the Northern Gatway.

Enbridge’s spill risk analysis contains 28 major deficiencies. As a result of these deficiencies, Enbridge underestimates the risk of the ENGP by a significant margin.
Some of the key deficiencies include:

  • Failure to present the probabilities of spills over the operating life of the ENGP
  • Failure to evaluate spill risks outside the narrowly defined BC study area
  • Reliance on LRFP data that significantly underreport tanker incidents by between 38 and 96%.
  • Failure to include the expansion capacity shipment volumes in the analysis
  • Failure to provide confidence ranges of the estimates
  • Failure to provide adequate sensitivity analysis
  • Failure to justify the impact of proposed mitigation measures on spill likelihood
  • Potential double counting of mitigation measures
  • Failure to provide an overall estimate of spill likelihood for the entire ENGP
  • Failure to disclose information and data supporting key assumptions that were used to reduce spill risk estimates
  • Failure to use other well accepted risk models such as the US OSRA model

 

SFU reports that Enbridge provides separate estimates of the likelihood of spills for each of the three major components of the project:

      • tanker operations,
      • terminal operations,
      • the oil and condensate pipelines.

The SFU scholars say Enbridge does not combine the separate estimates to provide an overall estimate of the probability of spills for the entire project and therefore does not provide sufficient information to determine the likelihood of adverse environmental effects……

It notes that “forecasting spill risk is challenging due to the many variables impacting risk and the uncertainties in forecasting future developments affecting risk. To improve the accuracy of risk assessment, international best practices have been developed.”

Part of the problem for Enbridge may be that when the company appeared before the Joint Review Panel it has repeatedly said that will complete studies long after approval (if the project is approved), leaving large gaps in any risk analysis.

The SFU study may have one example of this when it says Enbridge did not complete any sensitivity analysis for condensate spills at Kitimat Terminal or the condensate pipeline.

Enbridge response

Enbridge responded by saying

Our experts have identified a number of omissions, flawed assumptions and modeling errors in the study and have serious concerns with its conclusions:
The spill probability numbers are inflated: The author uses oil throughput volumes that are nearly 40 per cent higher than those applied for in this project which also inflates the number of tanker transits using these inflated volumes
The pipeline failure frequency methodology adopted by Mr. Gunton is flawed, and does not approximate what would be deemed a best practices approach to the scientific risk analysis of a modern pipeline system
Mr. Gunton based his failure frequency analysis on a small subset of historical failure incident data. Why would he limit the source of his data to two pipelines with incidents not reflective of the industry experience and not reflective of the new technology proposed for Northern Gateway?
The study results are not borne out by real world tanker spill statistics. Based on Mr. Gunton’s estimates we should expect 21 to 77 large tanker spills every year worldwide while in reality after 2000 it has been below 3 per year and in 2012 there were zero.

Most of Enbridge’s rebuttal is a personal attack on Gunton, noting

We are very concerned about the misleading report released by Mr. Gunton, who was a witness for the Coastal First Nations organization during the Northern Gateway Joint Review Panel process.
Mr. Gunton should have made his study available to the JRP process, the most thorough review of a pipeline that’s ever taken place in Canada. All of Northern Gateway’s conclusions have been subject to peer review, information requests and questioning by intervenors and the Joint Review Panel.

In response, Gunton told the Globe and Mail “the report took over a year to complete and it was not ready in time to be submitted as evidence before the federal Joint Review Panel which is now examining the proposed pipeline.”

Enbridge’s statement also ignores the fact under the arcane rules of evidence, any study such as  the  one from Simon Fraser had to be submitted to the JRP early in the process, while evidence was still being submitted.

The recent ruling by the JRP for closing arguments also precludes anyone using material that was not entered into evidence during the actual hearings.

That means that the SFU study will be ignored in the final round of the Joint Review Panel, which can only increase the disillusionment and distrust of the process that is already common throughout northwest British Columbia.

Joint Review Panel confirms closing arguments to begin in Terrace June 17

The Northern Gateway Joint Review Panel has confirmed that final, closing arguments for the controversial Enbridge pipeline project will take place in Terrace for approximately two weeks, beginning on Monday, June 17, 2013.

The Panel says the purpose of closing arugments is to provide Parties Northern Gateway, intervenors, and government participants the opportunity to:

    • tell the Panel their views and opinions about the Project including whether Parties believe it is in the public interest;
    • persuade the Panel to recommend approval or denial of the Project;
    • make their case about the relevance and weight of any evidence on the Panel’s public registry;
    • discuss the merits of conditions that the Panel might place on any Certificate that may be issued for the Project;
    • suggest additional conditions should the Project be approved

.

As is common with National Energy Board and Joint Reivew procedures, final arguments argument should be in writing, followed by oral responses. Only one arugment document is permitted.

The written final arguments must be based on JRP evidence that is on the public record. No one can introduce new evidence in either the written argument or in their oral response.

The “aids to cross-examination” used during the questioning phase of the final
hearings cannot be used unless they were admitted onto the record by the Panel as evidence.
However a witness’ answer to questions given when an aid was used is evidence and can be
relied upon.

The absolute deadline for filing the written arugment is noon Pacific Time (1:00 pm Mountain
Time) on 31 May 2013.

Participants can take part either in the hearing room or remotely via a conferencing system.

A party of the proceeding cannot make an oral argument unless they have filed a written arugment.

The purpose of the oral argument is to let one party respond orally to the written argument filed by others. A party may also respond to the Oral Argument of other Parties who have presented Oral Argument before them and whose arguments they disagree with.

Participants are expected to have read in advance all the written arguments they may wish to challenge and are restricted from repeating arguments made by others but are allowed to indicate they agree with the earlier argument.

Top Down Bottom Up

There are very specific rules for how the closing arguments will proceed, which the JRP calls “Top Down Bottom Up”

In order to allow all Parties to respond to all of the Oral Arguments of other Parties, they will be given two opportunities to provide Oral Argument in what is referred to as a “Top Down –Bottom Up” process….

During either the Top Down or Bottom Up portion, parties may simply state that they adopt the position of specific parties who have gone before them.

In the Top Down portion, Northern Gateway will first provide its Oral Argument in response to the Written Argument of other Parties. This will be followed by the Oral Argument of intervenors and government participants in the order set out in the Order of Appearances (alphabetically, A-Z). During the Top Down, Parties will respond to the Written Argument of Parties they are opposed to as well as the Oral Argument of those who have argued before them.

Intervenors and government participants will have up to one (1) hour each to provide their Oral Argument. Since Northern Gateway has the burden of proving its case and will be responding to all other Parties, it will have up to two (2) hours for its Oral Argument.

After the Top Down Oral Argument, Parties will have the opportunity to very briefly reply to any new matters that were raised in the Oral Argument of other Parties who presented after them. This will proceed in a Bottom Up format where the Panel will start at the bottom of the Order of Appearances and proceed up from there (alphabetically, Z-A), ending with Northern Gateway.

During the Bottom Up Oral Argument, Parties can only reply to new matters that arose in Oral Argument after they presented their Oral Argument. For this reason, the Bottom Up Oral Argument should be very brief. Parties who do not have any reply comments specifically related to arguments they have not had the opportunity to address should not provide Bottom Up Oral Argument.

Oliver confirms Kitimat to become a public port

Joe Oliver
Minister of Natural Resources Joe Oliver answers a reporter’s question during a news conference in Terrace, March 19, 2013 (Robin Rowland)

Joe Oliver, the Minister of Natural Resources, has confirmed that the federal government intends to make Kitimat a public port.

Oliver was in Terrace, March 19, 2013, to announce the appointment of Vancouver lawyer Douglas Eyford as “Special Federal Representative on West Coast Energy Infrastructure.” Eyford’s job will be to “engage aboriginal communities in British Columbia and Alberta that are most likely to have an interest in West Coast energy infrastructure.”

Oliver was asked to confirm statements on the Transport Canada website that Kitimat would become a public port.

Oliver replied: “The news release was accurate. What the purpose is to make sure that the absolute highest standards of marine safety apply in the port of Kitimat. And we have as I announced yesterday and I had spoken about before at the port of Vancouver we have an extremely robust marine safety regime in place but we want to make sure that as resource development continues and as technology improves, we are at the world class level. As I also mentioned there has never been off the coast of British Columbia a major tanker spill and we want to keep that perfect record.”

No visit to Kitimat

Oliver was also asked if he intended to visit Kitimat during his visit to the northwest (Kitimat is a 40 minute drive from Terrace).  Oliver replied, “Not in this particular visit, I have to get back [to Ottawa] There’s a budget coming and I have to be in the House for that but I certainly expect to be going up there.”

The federal budget will be released on Thursday.

At Monday’s meeting of District of Kitimat council, some members quietly expressed frustration, to say the least, that Oliver, the man responsible for pushing the Northern Gateway pipeline through British Columbia to Kitimat had not bothered to include the town in his visit to the northwest.

Members of the District of Kitimat council, which on paper at least, is responsible for the port of Kitimat (even though it is really run by Rio Tinto Alcan) also expressed frustration that no one in Ottawa gave the council advance notice of the government decision to take the port public.

Asked for comment on Oliver’s statement, Rio Tinto Alcan officials in Kitimat also seemed unaware of the government announcement and promised a statement in the near future.

Oliver’s announcement in Vancouver Monday about a “world class” marine safety system and today’s announcement about the appointment of Douglas Eyford, appear to be a campaign by the Harper government to establish a stake in the middle ground in the pipeline debates, in hopes of undermining the opponents of the projects.

Skeena Bulkley Valley MP Nathan Cullen, in a news release, expressed reservations about Eyford’s appointment.

“The primary concern with the appointment, Cullen said, is that Mr. Eyford will report to the Prime Minister, not to Parliament or the public. “So, if Mr. Eyford’s report is in any way unfavourable to the Conservative pipeline agenda, what assurances do we have that his report will make its way into the public eye?

“It is also unclear how the appointment would affect Eyford’s work as the chief government negotiator for the federal government’s comprehensive land claims process, and what kind of effect his absence will have on that process.”

 

 

 

Harper government outlines new tanker safety measures for west coast

The federal government outlined new tanker safety measures in Vancouver Monday, measures aimed at increasing support for the Enbridge Northern Gateway project and the Kinder Morgan pipeline twinning projects.

The detailed announcement as it appears on the Transport Canada website (as of 2250 PT Monday March 18) seems to redesignate the port of Kitimat, which has been private since the town was built 60 years ago, as a public port, saying (and misspelling the town’s name)

Public port designations: More ports will be designated for traffic control measures, starting with Kimitat.

The Transport Canada news release which also says Kitimat will be a public port does spell the name correctly.

Bill C-57 which was introduced in the House of Commons on Monday makes no mention of redesignating Kitimat as a public port. Bill C-57 is the bill needed to implement the measures announced by the government on Monday.

Other measures as outlined in the news release are:

 

Today, the government has also tabled the Safeguarding Canada’s Seas and Skies Act, which is amending the Canada Shipping Act, 2001. The proposed amendments will:

strengthen the current requirements for pollution prevention and response at oil handling facilities;
increase Transport Canada’s oversight and enforcement capacity by equipping marine safety inspectors with the tools to enforce compliance;
introduce new offences for contraventions of the Act and extend penalties relating to pollution; and
enhance response to oil spill incidents by removing legal barriers that could otherwise block agents of Canadian response organizations from participating in clean-up operations.
In addition, the Ministers announced eight measures to strengthen Canada’s tanker safety system:

Tanker inspections: The number of inspections will increase to ensure that all foreign tankers are inspected on their first visit to Canada, and annually thereafter, to ensure they comply with rules and regulations, especially with respect to double hulls.

Systematic surveillance and monitoring of ships: The government will expand the National Aerial Surveillance Program.

Incident Command System: The government will establish a Canadian Coast Guard (CCG) Incident Command System, which will allow it to respond more effectively to an incident and integrate its operations with key partners.

Pilotage programs: We will review existing pilotage and tug escort requirements to see what more will be needed in the future.

Public port designations: More ports will be designated for traffic control measures, starting with Kitimat.

Scientific research: The government will conduct scientific research on non-conventional petroleum products, such as diluted bitumen, to enhance understanding of these substances and how they behave when spilled in the marine environment.

New and modified aids to navigation: The CCG will ensure that a system of aids to navigation comprised of buoys, lights and other devices to warn of obstructions and to mark the location of preferred shipping routes is installed and maintained.

Modern navigation system: The CCG will develop options for enhancing Canada’s current navigation system (e.g. aids to navigation, hydrographic charts, etc) by fall 2013 for government consideration.

 

Skeena Bulkley Valley MP Nathan Cullen called the statement by Natural Resources Minister Joe Oliver and Transport Minister Denis Lebel as “greenwash.”

Cullen called the announcement in Vancouver “another attempt to distract from the real and serious environmental, social and economic threat the Northern Gateway pipeline poses to British Columbia.”

The government’s announcement that it will take new steps to increase inspections and aerial surveillance of tankers does not come close to addressing the real concerns that British Columbians and Canadians have about oil spills on the majestic BC coast, said Cullen.

“I think concerned citizens will look at these proposals and, like we have, conclude they’re half-measures,” said Cullen. “People have credible fears about the project,” noting a recent study from the University of British Columbia which pegged the potential costs of a major oil spill on BC’s north coast at $9.6 billion, and the fact that Northern Gateway hasn’t provided convincing real-world evidence that their primary spill response mechanisms – booms, skimmers and dispersants – will be able to work along the BC coast. Cullen also pointed to calculations by a 25-year veteran in the oil spill response industry, which used Enbridge’s own research to show a 8.7% to 14.1% chance of a major oil spill in the project’s first fifty years.

“The risks are enormous, and the consequences of a spill would be devastating,” Cullen noted. “But the prime minister and his cabinet appear to have already made up their minds about the project, so rather than actually listen and respond to the concerns of British Columbians, they’ll resort to half-measures and playing the public relations game.

“Since they came to a majority, the government has taken every opportunity to undermine our environmental assessment process, muzzle scientists, and slash protections for our lakes and rivers. And now they’re realizing they’ve axed their own credibility on the environment and public engagement. If the government were serious about convincing the public that this is a safe project, they’d take the time to sit down with the communities and address the big picture facts about this project, instead of going for the low-hanging fruit like they’ve done today.”

Links to Transport Canada backgrounders

Creation of the Tanker Safety Expert Panel

World-Class Tanker Safety System: Amendments to the Canada Shipping Act, 2001 (Safeguarding Canada’s Seas and Skies Act)

World-Class Tanker Safety System: Safe tankers through rigorous inspection and prevention

World-Class Tanker Safety System: liability and compensation

 

MORE TO COME