Category: Politics & Government

PART TWO: What the State Dept. Keystone EIS says about Kinder Morgan and Vancouver harbour

The US State Department report on the controversial Keystone XL pipeline project also looks at the Kinder Morgan Transmountain pipeline (both the existing line and the proposed second line) and, in at least one part of the report, seems to speculate that, once expansion of the Panama Canal is completed in 2014, there could be larger tankers in Vancouver harbour, something that up until now, both Kinder Morgan and Port Metro Vancouver have denied. However, the State Department report does not say how the port of Vancouver could handle larger tankers.

The State Department EIS says if larger tankers were loaded at Vancouver, it could be economic for crude from the Kinder Morgan Transmountain pipeline to be moved to the US Gulf Coast.

Using heavy crude as a basis, a present day movement via Trans Mountain to Vancouver and thence on a Panamax tanker via the Panama Canal to Houston would have a total freight cost (pipeline tariff plus tanker freight and Panama toll) of around $8.50-9.50/barrel (bbl).

Recognizing that Kinder Morgan plans to enable future shipment in larger Suezmax tankers, and that the Panama Canal Authority is expanding the Canal to take tankers of that size, the rate using a Suezmax would be approximately $1/bbl lower. These rates compare to approximately $8/bbl to move heavy crude via pipeline from Hardisty to Houston. Thus, while in normal markets, a tanker movement from Western Canada would be somewhat more costly than via pipeline, in a scenario where ability to move WCSB crudes by pipeline to the U.S. Gulf Coast were constrained, refiners in the U.S. Gulf Coast could opt for tanker transport.

(The Panama Canal expansion program began in 2006 and is scheduled for completion in 2014)

Latest progress report (pdf)

According to the progress report the current Panama Canal has the capacity for ships that are 32.3 metres wide by 304.6 metres long, This will increase to 49 metres wide by 366 metres long.

Later in the report the State Department goes on to say that bitumen and crude could, as an alternative to Keystone, go to Vancouver:

Under this option, WCSB [Western Canada Sedminetary Basin] would be shipped by existing railways or new pipelines from the Hardisty region to Vancouver or Kitimat, British Columbia for shipment by marine transport through the expanded Panama Canal and delivery to Gulf Coast area refiners. This option considers moving up to 730,000 bpd of heavy crude to the Port of Vancouver and then to the marine docks at the Westridge marine terminal in Vancouver or the port in Kitimat. Under this option, crude oil could move either via rail or by a new pipeline from the Hardisty region.

Currently, Kinder Morgan is planning an expansion of the existing Trans Mountain pipeline originating at Edmonton, increasing its capacity from 300,000 bpd (current) to up to 890,000 bpd(planned for operations in 2017).

The Trans Mountain pipeline runs into Vancouver via the existing Burnaby terminal over to the Westridge dock for loading heavy crude onto vessels. The pipeline has sufficient commitment from shippers to proceed with engineering and permitting processes. Kinder Morgan indicates that the project would significantly increase tanker traffic from about 5 to 34 cargoes per month, or up to about 400 cargoes per year . The increased marine traffic is due to increased volume to be shipped, and lack of sufficient channel draft to load larger vessels.

Kinder Morgan on its website says

The proposed expansion at Westridge Terminal is based on the loading of Aframax tankers, the same tankers currently being loaded at Westridge. Larger tankers are not permitted in the Vancouver harbour, and are not under consideration for the expansion. Proposed changes at the dock include new loading facilities, fire protection, vapour recovery, secondary containment, and emergency response equipment.

To connect the Burnaby Terminal with the Westridge Terminal, the proposed expansion includes two new, four-kilometre pipelines each with a diameter of 762 millimeters (30 inches). These two new delivery lines would provide product deliveries to tankers at two new dock berths, and provide the scheduling flexibility required for a marine operation.

Port Metro Vancouver also says on its website:

The role of Port Metro Vancouver is to conduct a rigorous project review to ensure the safe movement of goods through the Port. Kinder Morgan has yet to submit a formal project proposal to Canada’s National Energy Board. If they do, and should approval be granted, the project would then undergo several other permitting processes, one of which is a Port Metro Vancouver Project Permit Review. Vancouver is a very low volume tanker port. Currently, there are about 100 crude oil and chemical tankers calling the port each year. If the Kinder Morgan project receives approval, that number could increase to approximately 400 tankers a year. Other well-run ports such as the Port of Rotterdam handles 8,206 tankers a year, while Singapore handle 22,280 tankers a year.

Will larger tankers be calling at Port Metro Vancouver as a result of the Kinder Morgan Proposal?

There are no plans to exceed the current maximum size of tankers calling at Port Metro Vancouver. Due to depth restrictions in the Burrard Inlet, the largest dimension of tanker that can be handled is the Aframax, a medium-sized tanker with a maximum capacity of 120,000 tonnes. Even then, these vessels can load to only around 80% of capacity due to draft restrictions.

 

The State Department EIS was cautious about the Kinder Morgan project and did not do the same deailed analysis as it did for Prince Rupert.

The substantial increase in tanker traffic from the proposed Kinder Morgan expansion has raised safety and environmental concerns. Moving additional volumes of crude oil from the proposed Project into the Vancouver market by either a new pipeline or rail would result in 400 or more additional vessels loading at Vancouver each year and would require considerably more storage to be built than the current Kinder Morgan operations. The expansion of storage capacity, potential rail off-loading facilities and logistics, and increased marine traffic may make this option logistically challenging in a relatively compressed and populated geographical area.

Moreover, even if a separate pipeline from Hardisty could be planned, mapped, engineered, designed, and permitted starting today, it would likely not be available as an option until well after the proposed [Keytsone] Project’s planned start date. As a result of the logistical challenges in increasing the amounts of heavy Canadian grades of crude oil coming into the Vancouver/Burnaby region over and above the volumes from the Kinder Morgan expansion, this option was deemed to be less viable than movements from Kitimat and Prince Rupert and was eliminated from detailed analysis.

It’s not clear from the Keystone EIS, if the State Department was simply speculating on larger tankers in Vancouver harbour or if it was made of aware of possible hopes for a deep water tanker port elsewhere in the Vancouver harbour area.

 

Port Metro Vancouver tanker diagram
Port Metro Vancouver diagram showing the tankers that are permitted and not allowed in Vancouver harbour. (Port Metro Vancouver)

 

The State Department EIS goes on to note:

While no new additional pipeline capacity has been added from Canada into the United States or to the Canadian West Coast since the Final EIS in 2011, a number of projects are proposed, including this proposed Project. The 300,000 bpd Kinder Morgan Trans Mountain pipeline that runs from Edmonton to the British Columbia coast at Vancouver, with a spur to Washington State refineries, has been over-subscribed for some time. A successful open season led the Kinder Morgan to announce and file for expansion to 750,000 bpd by potentially 2017. After a
second open season, Kinder Morgan has increased the expansion to 890,000 bpd. The bulk of the incremental crude moved on the line would potentially be destined for Asia. The review process for this project is continuing, but there is significant opposition based on concerns over environmental impacts associated with the oil sands and with additional tanker movements in the Port Vancouver harbor.

As noted above, both of these proposed pipeline projects to Canada’s West Coast face significant resistance and uncertainty, but there are strong cost advantages when compared with moving WCSB crude to the Gulf Coast even if rail were used to access the Canadian West Coast... In fact, using rail and tanker to ship crude oil from the WCSB via the West Coast to China is comparable to the pipeline rate to reach the U.S. Gulf Coast. An increase in the transport costs to the Gulf Coast (utilizing alternative transport options such as rail) would have a tendency to increase the economic incentive to utilize any West Coast export options, if they are available.

 

Northwest Coast Energy News Special report links

What the Keystone Report says about Kitimat and Northern Gateway
What the Keystone Report says about the Kinder Morgan pipeline to Vancouver.
What the Keystone Report says about CN rail carrying crude and bitumen to Prince Rupert.
The State Department Environmental Impact Study of the railway to Prince Rupert scenario.

State Department news release

State Department Index to Supplemental Environmental Impact Study on the Keystone XL pipeline

 

PART THREE: Keystone EIS looks in-depth at the railway to Prince Rupert option for bitumen and crude

There have always been commentators who believe that if the Northern Gateway Pipeline is rejected by the Joint Review Panel or stopped by other means, that the bitumen from Alberta should be carried by rail to Prince Rupert.

A pipeline to Prince Rupert has already been rejected by Enbridge as impractical given the mountainous terrain and the narrow footprint along the Skeena River from Terrace to Prince Rupert.

That means taking bitumen by rail to Prince Rupert has not been seriously studied—until now.

The State Department Environmental Impact Study (EIS) on the controversial Keystone XL pipeline from Alberta to the US Gulf, does give serious consideration to the rail to Rupert option.

That’s because under its mandate the State Department had to consider alternatives to Keystone. The detailed look at carrying crude to the west coast is contained in the “No Action Alternatives” section of the Keystone report (that is telling President Barack Obama what might happen if he takes no action on Keystone)

The EIS took a brief look at the possibilities of rail to Kitmat, but concentrates mostly on Prince Rupert.

As for sending bitumen to the Gulf,via rail and tanker, the Keystone report concludes, as have most analysts that even if bitumen was shipped by rail to Prince Rupert, it would be cheaper to send it to markets in Asia than through the Panama Canal to the US Gulf Coast.

If pipelines to the Canadian West coast are not expanded or approved, even incurring the additional cost of rail transport to the West Coast ports (Vancouver, Kitimat, or Prince Rupert), estimated at $6 per barrel, results in a total transport cost to Asia that is still 40 percent cheaper than going via the Gulf Coast.

Absent a complete block on crude oil exports from the Canadian West Coast, there would belittle economic incentive to use the proposed project as a pass through. The high costs of onward transport to other potential destinations tend to mitigate against WCSB [Western Canada Sedimentary Basin] heavy/oil sands crudes being exported in volume from the Gulf Coast.

As an alternative to Keystone, the State Department examined a scenario where bitumen and possibly Bakken shale crude oil would be:

• Loaded onto rail in Lloydminster and transported to Prince Rupert, British Columbia;

• Transferred to a new/expanded marine terminal at Prince Rupert; and

• Shipped via Suezmax vessels to the Gulf Coast area (Houston/Port Arthur) through the Panama Canal.

If the tanker cars are hauling bitumen, they would be actually loading “railbit” which the report says is “similar to dilbit but with less diluent added” (Dilbit is the standard diluted bitumen in pipelines) There is also, according to the EIS, a possibility that the tank cars would carry raw bitumen without dilutent (although this requires insulated rail cars with steam coils)

New facilities in Prince Rupert would consist of a large rail terminal complex, most likely on themainland, where off-loaded crude oil would be stored until it could be loaded onto tankers, and an expanded port. The entire facility would cover 4,700 acres (1,900 hectares), including 3,500 acres (1,400 hectares) for storage and off-loading/on-loading facilities at the rail terminal and approximately 1,200 acres (487 hectares) of land at the expanded port.

The new tank terminal construction would consist of the following:

• Fourteen petroleum storage tanks (11 oil and three condensate);

• A security fence to encompass the tank terminal;

• A 180-foot-wide (55 metre) firebreak area around the outside perimeter of the terminal;

• Electrical supply and distribution (this terminal would be serviced by the Texada Island

Reactor substation); and

• Buildings (control center and civil infrastructure including roads).

Related Link Prince Rupert Port Authority Performance Report

 

The scenario calls for adding approximately 13 trains with 100 tanker cars per day on the 1,100 miles (1,770 kilometres) of CN and Canadian Pacific rail lines between Lloydminster and Prince Rupert.

(On the other hand, media mogul David Black who has proposed a refinery at Onion Flats half way between Kitimat and Terrace is considering a rail link to Kitimat if the Northern Gateway pipeline is stopped. Black estimates there would be six trains per day, 120 cars in each direction. While there is usually only one train a day to Kitimat or less, that idea would increase traffic along the Skeena and in his news release Black says 

If BC remains set against a pipeline the oil will come to the refinery by rail. CN and the oil companies are keen on this. A great deal of crude in North America is being moved by rail now. The costs are not that different in this case and no permits are required. Rail tankering is, however, not as safe and it is more disruptive. Small towns along the route with level crossings would rue having 12 more trains running through every day.

The State Department scenario says that if the Prince Rupert option actually happened there would be “one to two additional Suezmax tanker vessels per day (430 tankers per year) would travel between Prince Rupert and the Gulf Coast area refinery ports via the Panama Canal.”

The concept of the Suezmax tankers is critical to the west coast, even if none of the scenarios eventually happen, because the State Department report notes that the Panama Canal is now being expanded, so that larger ships, including tankers, can go through the canal after 2014.

The current size is Panamax (maximum size for the current Panama Canal) to Suezmax (the maximum size for the Suez Canal), and, according to the State Department that means even if the even bigger Very Large Crude Carriers are not calling at west coast ports, the newer, larger Suezmax tankers may  be.

It should be noted, however, that if WCSB crude oil reaches a Pacific port, regardless of whether by rail or by pipeline, the economics for movement via tanker would favor shipping the oil to Asia rather than the Gulf Coast area. The cost of transporting crude oil via tanker from Prince Rupert to Houston and Port Arthur is estimated to be approximately $4.70/bbl, whereas the transport cost via tanker from Prince Rupert to refinery ports in Asia (e.g., Ulsan, South Korea and Dalian, China), is estimated to be only approximately $1.70 and $2.00/bbl, respectively. The lower transport cost to Asia versus the Gulf Coast area is attributable to shorter trip duration (30 to 37 days to Asia versus about 45 days to the Gulf Coast area), avoiding the Panama Canal toll(about $0.70/bbl), and being able to use a larger tanker because it would not be constrained by the Panama Canal (a VLCC tanker to China would have a capacity of almost 2 million bbl versus a Suezmax tanker to the Gulf Coast area with a capacity of about 884,000 bbl).

So what would happen if there was a scheme to truck bitumen and crude to Prince Rupert and ship via the Panama Canal to the Gulf?

The State Department EIS says:

 the transport of the crude oil via tankers from Prince Rupert to the Gulf Coast area refineries would not have any effects on geology, soils, groundwater, wetlands, vegetation, land use, socioeconomics, noise, or cultural resources, other than in the event of a spill.

It goes on to note:

The Gulf Coast area refineries already receive crude oil shipments via tankers from Mexico, Venezuela, and other locations; the Rail/Tanker Scenario is expected to simply displace these sources of crude oil with WCSB crude oil. Therefore, no new construction or new operational impacts are expected to occur as a result of this scenario at the Gulf Coast area refineries or surrounding habitats or communities.

In its study of a possible expanded Prince Rupert terminal that would welcome tankers, the State Department says:

The proposed Northern Gateway terminal at Kitimat, British Columbia was used as a surrogateto estimate the marine facilities needed at Prince Rupert. The Northern Gateway facility isdesigned to handle about 525,000 bpd of crude delivered by pipeline for loading on vessels to theWest Coast and Asia. In addition, it is designed to receive about 193,000 bpd of diluent (a verylight oil obtained from natural gas production) from cargoes arriving by water and discharging into storage at the terminal and moving back to Alberta via a parallel pipeline. The total volumeof about 718,000 bpd approximates the volume of WCSB heavy crude oil that would be loaded at Prince Rupert.

 

 

More Details:
Northwest Coast Energy News Special report links

What the Keystone Report says about Kitimat and Northern Gateway
What the Keystone Report says about the Kinder Morgan pipeline to Vancouver.
What the Keystone Report says about CN rail carrying crude and bitumen to Prince Rupert.
The State Department Environmental Impact Study of the railway to Prince Rupert scenario.

State Department news release

State Department Index to Supplemental Environmental Impact Study on the Keystone XL pipeline

 

PART FOUR: State Department assessment of the railway to Rupert route for bitumen

Here are edited portions of the EIS assessment for a major oil terminal at Prince Rupert

Environmental Setting

The EIS says “the local surface geology at the Prince Rupert site consists of bedrock (granitic rocks) overlain by glacial outwash and a thin soil cover.” and goes on to note that “Prince Rupert is located along the coastal region of Canada, which is seismically active.”

Potential Impacts

At Prince Rupert, depth to bedrock is expected to be relatively shallow, so rock ripping and some blasting could be necessary. The impacts of rock ripping and blasting are limited to the immediate area and would not result in any significant impacts to the underlying or nearby geology. Excavation activities, erosion of fossil beds exposed due to grading, and unauthorized collection can damage or destroy paleontological resources during construction.

(The report notes that The potential for finding paleontological resources in the areas that would be disturbed is unknown. But the area of the coast has been heavily metamorphisized and most fossils, so far, have been found further inland, largely along the Copper River near Terrace)

In terms of geologic hazards, the Prince Rupert terminals would be located along the coastal region of Canada, which is seismically active. In addition, the presence of steep slopes increases the risk of landslides and the port’s coastal location increases the risk of flooding…. The Prince Rupert rail terminals and port facilities would be designed to withstand potential seismic hazards and flooding…

Construction of the proposed terminals and port expansion in Prince Rupert would result in the disturbance of approximately 3,500 acres (1,400 hectares) of land for the construction of the rail terminal complex and approximately 1,200 acres (487 hectares) for the expansion of the port. Potential impacts to the soils resources of the area could result from vegetation clearance, landscape grading, and recontouring to ensure proper drainage, the installation of storm water drainage systems, construction of the required infrastructure, and other construction activities.
One of the primary concerns during construction activities is soil erosion and sedimentation.
Potential impacts to soils from erosion are expected to occur in areas where the slopes are greater than 20 per cent and where the erosion potential due to their nature is high. Based on available landscape and soils information, the soils found in the area are not highly erodible and the required infrastructure would be located in areas that are relatively flat. Therefore, the impact of the proposed terminal complex and port construction activities on soil erosion would be minor.

 

Groundwater
Environmental Setting

The Prince Rupert Terminals and port expansion would occur in British Columbia on Kaien Island, which receives about 102 inches of rainfall per year. The terminals would be located on an inlet that is part of the eastern Pacific Ocean on the Venn Passage near the much larger Inland Passage, which extends from Washington State to Alaska along the islands and mainland of British Columbia, Canada. Venn and Inland Passages are marine (salt water) waterbodies. The islands consist of bedrock (granitic rocks) overlain by glacial outwash and a thin soil cover.
Groundwater is shallow, poor quality, and unused. Drinking water is derived from lakes on the mainland. Water quality in the terminal complex area is seawater and inland brackish.

Potential Impacts

During construction of the facilities at Prince Rupert, the primary potential impacts to groundwater would be spills or leaks from construction equipment. Mitigation for these impacts includes having in place appropriate plans in place and appropriate cleanup materials available.
During operations of the facilities at Prince Rupert, the primary potential impacts to groundwater would again most likely be spills or leaks from operation equipment or associated with crude oil unloading of railcars. Although the initial impacts of potential releases or spills may be contained or limited to soil, potential impacts to groundwater may occur depending on the depth to groundwater, soil characteristics (e.g., porosity, permeability), spill volume and extent, and whether the spill reaches surface water bodies, some of which are interconnected to groundwater.

Surface Water
Environmental Setting

The upland character surrounding the potential Prince Rupert terminal area is dominated by bog forest uplands and the flowing surface water bodies are predominantly precipitation- and shallow groundwater-fed intermittent streams. Some open waterbodies are present in the southeast portion of Kaien Island. Tidal shore zones are of a rugged and rocky nature and receive wave energy generated by naturally occurring fetch and large wakes from marine traffic. Winter winds are strong and from the southeast to southwest, with surface currents predominantly northward from the Hecate Strait. Lighter summer winds have less influence on currents and allow freshwater runoff from land and deep water tidal effects to exert more control and provide variation in summer current patterns. Significant wind and tidal mixing tend to occur where waters are shallow and around islands and rocky points of land. The coastal landscape is predominantly fjords carved into the granitic Coast Mountains, created by the last of several glacial periods approximately 12,000 years ago. Shores tend to be rocky and steep with beaches restricted to sheltered areas adjacent to estuaries and the navigable straits and channels provide a wide variety of exposures and habitats.

Potential Impacts

Construction of the facilities at Prince Rupert would disturb approximately 4,700 acres. The primary potential impacts to surface waters include erosion and sedimentation and spills/leaks of hazardous materials. Mitigation for these impacts includes having in place appropriate SPCC plans in place and appropriate cleanup materials available.
During operations, the primary potential impacts to surface waters include storm water runoff, spills, or leaks from operation equipment or associated with crude oil unloading of railcars.
Provision of storm water management measures would mitigate the impacts of stormwater runoff.

Terrestrial Vegetation
Environmental Setting

The Prince Rupert terminals and port facilities would be located in the Coastal Gap Level III Ecoregion. The vegetation immediately adjacent to the Pacific Ocean includes stunted, opengrowing western red cedar, yellow cedar, and western hemlock with some stunted shore pine and Sitka spruce . There are also open areas present within the affected areas. It is unclear if biologically unique landscapes or vegetation communities of concern exist within the proposed Prince Rupert terminal complex boundary.

Potential Impacts

The proposed rail terminal complex and port facilities at Prince Rupert would require the clearing of up to 4,700 acres of natural vegetation, most of which is forested based on aerial photo interpretation. There does not appear to be any biologically unique landscapes or communities of conservation concern within the terminal complex boundary. Nearly all of these impacts would be permanent as natural habitats are converted for use as rail terminals and port facilities.

Wildlife
Environmental Setting

Many wildlife species use this coastal area for hunting, foraging, roosting, breeding, and nesting (Tourism Prince Rupert 2012). Wildlife characteristic of this ecoregion include grizzly bear (Ursus arctos horribilis), black bear (Ursus americanus), mountain goat (Oreamnos americanus), black-tailed deer (Odocoileus hemionus
columbianus), wolf (Canis lupus), moose (Alces alces), mink (Mustela sp.), bald eagle
(Haliaeetus leucocephalus), seabirds, shorebirds, waterfowl, and grouse (Tetraoninae)
The Prince Rupert terminal complex would be located in the Northern Pacific Rainforest(Region 5) bird conservation region, which is an ecologically distinct region in North America…

The coast of the Northern Pacific Rainforest is characterized by river deltas
and pockets of estuarine and freshwater wetlands set within steep, rocky shorelines. These wetlands provide critical nesting, wintering, and migration habitat for internationally significant populations of waterfowl and other wetland-dependent species. The area includes major stopover sites for migrating shorebirds, especially western sandpipers (Calidris mauri) and dunlins (Calidris alpina). Black oystercatchers (Haematopus bachmani), rock sandpipers (Calidris
ptilocnemis), black turnstones (Arenaria melanocephala), and surfbirds (Aphriza virgata) are common wintering species. Nearshore marine areas support many nesting and wintering sea ducks. Many seabirds breed on offshore islands, including important populations of ancient murrelet (Synthliboramphus antiquus), rhinoceros auklet (Cerorhinca monocerata), tufted puffin (Fratercula cirrhata), common murre (Uria aalge), western gull (Larus occidentalis), glaucouswinged gull (Larus glaucescens), and Leach’s storm-petrel (Oceanodroma leucorhoa). Pelagic
waters provide habitat for large numbers of shearwaters (Calonectris spp. and Puffinus spp.), storm-petrels (Hydrobatidae), and black-footed albatross (Phoebastria nigripes)

Potential Impacts

Direct impacts could occur due to vegetation removal or conversion, obstructions to movement patterns, or the removal of native habitats that may be used for foraging, nesting, roosting, or other wildlife uses (Barber et al. 2010). Indirect impacts to wildlife are difficult to quantify and are dependent on the sensitivity of the species, individual, type and timing of activity, physical parameters (e.g., cover, climate, and topography), and seasonal use patterns of the species (Berger 2004). Most of these impacts would be essentially permanent.

Fisheries
Environmental Setting

Prince Rupert is an important deepwater port and transportation hub of the northern coast of British Columbia. It is located on the northwest shore of Kaien Island, which is connected to the mainland by a short bridge. The town of Prince Rupert is just north of the mouth of the Skeena River, a major salmon-producing river. Key commercial fisheries include Pacific salmon, halibut, herring, and groundfish, which are processed from Prince Rupert.

Prince Rupert area supports a high density of streams and rivers that host an array of valuable recreational fisheries for salmon, steelhead (anadromous rainbow trout), rainbow trout, lake trout, cutthroat trout, char, Arctic grayling, and northern pike .

Potential Impacts

New impacts to commercial and recreational fisheries’ habitats from the construction and operation of the facilities in Prince Rupert could include marine intertidal zones as well as fish spawning zones (e.g., herring), if present. There would likely be short-term impacts to the benthic (bottom dwelling) community during construction of the berths and mooring facilities. Bottom-dwelling
fish (i.e., halibut, flounder, and rockfish) and marine invertebrates (i.e., clams, mussels, crabs, and other bivalves and crustaceans) could potentially be impacted during construction as well, but these affects are expected to be minor and temporary or short-term in duration.

Additional shipping traffic would increase underwater sound because large vessels, including tankers, put out relatively high noise levels. Fish and other aquatic organisms (including invertebrates and marine mammals) use sound as a means of communication and detection within the marine acoustic environment. Increased shipping traffic could mask natural sounds by increasing the ambient noise environment from Prince Rupert Harbor and along the marine route to the Gulf Coast area. Long-lasting sounds, such as those caused by continuous ship operation, can cause a general increase in background noise and there is a risk that such sounds, while not causing immediate injury, could mask biologically important sounds, cause hearing loss in affected organisms, and/or have an impact on stress levels and on the immune systems of aquatic species.

Exotic and invasive species are sometimes transferred in the ballast water of tanker ships.
Monitoring and controls would need to be implemented to treat ballast water discharged into Prince Rupert Harbor such that invasive or exotic species would not be released into the marine environment.

Threatened and Endangered Species

This section focuses on animal and plant species present in the Prince Rupert area that are Canada SARA protected. As a coastal area along the Pacific Migratory Bird Route, and an area that receives a lot of precipitation and is heavily forested, many wildlife species inhabit the area, as discussed in Section 5.1.3.6, Wildlife. According to the British Columbia (B.C.) Conservation Data Centre (2012), only one SARA threatened/endangered species is known to occur in Prince Rupert—the green sturgeon (Acipenser medirostris), a Pacific Ocean inhabitant. In addition, several SARA special concern species occur in Prince Rupert, including western toad (Anaxyrus boreas), coastal tailed frog (Ascaphus truei), North American racer (Coluber constrictor), grey whale (Eschrichtius robustus), and Stellar sea lion (Eumetopias jubatus)

Potential Impacts

The green sturgeon is typically found along nearshore marine waters, but is also commonly observed in bays and estuaries. The expansion of the proposed port facility could have minor adverse effects on the green sturgeon, but the sturgeon could readily avoid the port area.
Increased shipping traffic at Prince Rupert and as the vessels transit to the Gulf Coast area refineries may affect the feeding success of marine mammals (including threatened and endangered species) through disturbance, because the noise generated by tankers could reduce the effectiveness of echolocation used by marine mammals to forage for food. Whales use underwater vocalizations to communicate between individuals while hunting and while engaged in other behaviors. Increased underwater noise from additional shipping traffic could disrupt these vocalizations and alter the behavior of pods of whales. Moreover, additional boat and
tanker traffic could also increase the potential for collisions between marine mammals and shipping vessels. These effects would be additive in nature and could potentially add to existing disturbance effects and collision risks caused by the current level of shipping traffic, commercial and recreational fishing, and cruise ship passage.

Land Use, Recreation, and Visual Resources
Environmental Setting

Land use, recreation, and visual resources for the Prince Rupert area where the new terminals and expanded port facilities would be built differ sharply from the other terminal sites. Prince Rupert is located on an inlet of the Pacific Ocean in a heavily forested area of British Columbia.
Urban land use is generally limited to the communities in and around the city of Prince Rupert, with some small outlying communities and villages in the area. Given Prince Rupert’s role as a terminus of the Alaska Ferry System, many people see the port and surrounding areas in a recreational context. The area is largely undeveloped and would be sensitive to changes in the visual landscape.

Potential Impacts

If constructed on previously undeveloped land, the new facilities would primarily impact mixed forest… The construction and operational impacts on land use, recreation, and visual resources at the Lloydminster, Epping, and Stroud terminal complex sites and along the Cushing pipeline route would be the same as for the Rail/Pipeline Scenario.

Socioeconomics
Environmental Setting

Population/Housing

Construction and operations activities are not expected to have a significant effect on population and housing for this scenario. Because construction and operations job estimates have not yet been determined for this scenario, worker requirements for Prince Rupert, Lloydminster, and Epping are assumed to be minor..additional temporary housing could be needed in Prince Rupert… Prince Rupert only has about 740 hotel/motel rooms

Local Economic Activity

Tanker infrastructure and operations would be affected as ships transport crude oil from Prince Rupert through the Panama Canal to Texas ports near Houston.

Direct construction expenditures for facilities at Prince Rupert would be approximately $700 million, with approximately 1,400 annual construction jobs, based on the cost estimates of the proposed Enbridge Northern Gateway marine terminal in Kitimat

Despite the large population of First Nations people in the Prince Rupert area, Canada does not have a similar definition to minorities as the Keystone report applied under US law and so it notes “Impacts to minority and low-income populations during construction and would be similar to those described for the proposed [Keystone] Project and could possibly result in increased competition for medical or health services in underserved populations. Canada does not define HPSA and MUA/P, so it is unknown whether or not the minority populations in Prince Rupert or Lloydminster exist in a medically underserved area.

Tax Revenues and Property Values

It says construction of a new terminal Prince Rupert would generate provincial sales taxes, goods and services taxes, and hotel taxes. Construction of the tank and marine terminals at Prince Rupert…would involve large numbers of road trips by heavy trucks to transport construction materials and equipment to and from the sites. Construction in Prince Rupert could also potentially involve vessel deliveries of material. This traffic could cause congestion on major roadways, and would likely require temporary traffic management solutions such as police escorts for oversize vehicles.

Cultural Resources

Despite the rich heritage of First Nations in the Prince Rupert area, the Keystone alternative study reported;

No cultural resources studies have been conducted for the Prince Rupert area. Review of aerial photographs shows that a small portion of the area that could potentially be developed has already been disturbed by development, including port facilities, structures, and roads. This preliminary review shows that most of the area appears undeveloped and would have the potential for intact buried cultural resources.

The report notes that “Any ground disturbance, especially of previously undisturbed ground, could potentially directly impact cultural resources.”

It goes on to note that the potential to

include intact buried cultural resources would require evaluation through research and cultural resources surveys. If cultural resources were identified, follow-up studies could be required. In general terms, the archaeological potential of heavily disturbed areas, such as might be found in active rail yards or within developed transportation corridors, is normally lower than in undisturbed areas.

Archaeological potential is also contingent upon factors such as access to water, soil type, and topography, and would have to be evaluated for each area to be disturbed. Aboveground facilities have the potential to indirectly impact cultural resources from which they may be visible or audible. The potential for increased rail traffic to contribute to indirect impacts would require consideration.

Air and Noise

The report also summarizes the possible green house gas emissions for the rail and tanker project as whole from Prince Rupert to the Gulf Coast refineres and notes that overall

On an aggregate basis, criteria pollutant emissions, direct and indirect GHG emissions, and noise levels during the operation phase for this scenario would be significantly higher than that of the proposed [Keystone XL] Project mainly due to the increased regular operation of railcars, tankers, and new rail and marine terminals.

Air Quality

The rail cars and tankers transporting the crudes would consume large amounts of diesel fuel and fuel oil each day….The criteria pollutant emissions would
vary by transportation segment, particularly during marine-based transit. Oil tankers traveling from the Prince Rupert marine terminal through the Panama Canal to Houston/Port Arthur pass through several different operational zones, including reduced speed zones leading into and out of the ports, North American Emission Control Areas where the use of low-sulfur marine fuel is mandated, and offshore areas where the tankers travel at cruise speeds.

During the return trip, tankers are filled with seawater (ballast) to achieve buoyancy necessary for proper operation, which affects the transit speeds of the vessel. Furthermore, the tankers spend several days loading or unloading cargo at each marine terminal with auxiliary engines running (an activity called hoteling). The tanker emissions accounted for return trips (i.e., both loaded cargo going south and unloaded cargo going north).

In aggregate, the total operational emissions (tons) estimated over the life of the project (50 years) are several times greater than those associated with the combined construction and operation of the proposed Keyston XL Project

Greenhouse Gases

Direct emissions of GHGs would occur during the construction and operation of the Rail/Tanker Scenario. GHGs would be emitted during the construction phase from several sources or activities, such as clearing and open burning of vegetation during site preparation, operation of on-road vehicles transporting construction materials, and operation of construction equipment for the new pipeline, rail segments, multiple rail and marine terminals, and fuel storage tanks.

Due to limited activity data, GHG emissions from construction of the Rail/Tanker Scenario were not quantified; however, these emissions would occur over a short-term and temporary period, so construction GHG impacts are expected to be comparable to the proposed [Keystone XL] Project.
During operation of the railcars and tankers that comprise this scenario, GHGs would be emitted directly from the combustion of diesel fuel in railcars traveling over 4,800 miles (7,725 km) and fuel oil in marine tankers traveling over 13,600 miles (21,887 km) round-trip.

The Rail/Tanker Scenario would also result in indirect emissions of GHGs due to the operation of 16 new rail terminals, an expanded port, and potential pumping stations. The new rail terminal in Prince Rupert would be projected to require 5 MW of electric power to operate, possibly bring indirect GHG emissions

Noise

Noise would be generated during the construction and operation of the Rail/Tanker Scenario. Noise would be generated during the construction phase from the use of heavy construction equipment and vehicles for the new pipeline, rail segments, and multiple rail and marine terminals, and fuel storage tanks. Due to limited activity/design data, noise levels from the construction of this scenario were not quantified; however, this noise would occur over a short term and temporary period, so construction noise impacts are expected to be comparable to those
of the proposed Project. During operation of the railcars and tanker ships that comprise this scenario, noise would be generated from the locomotives, movement of freight cars and wheels making contact with the rails as the train passes, train horns, warning bells (crossing signals) at street crossings, and tanker engines during hoteling and maneuverings at the new rail and marine terminals in Prince Rupert.

(Noise from ocean going vessels which is a concern for coastal First Nations and environmental groups is covered later on impact on wildlife)

 

Climate Change Effects on the Scenario
Environmental Setting

The Keystone study looks at the affects of climate change, but concentrates largely on the Gulf Coast beause the most of the Rail/Tanker Scenario was outside of the boundaries of the study, but it does note that the sea levels are projected to rise due to glacial melting and thermal expansion of the water. The rate, total increase, and likelihood of the rise is in part dependent on how rapid the ice sheets warm and is a source of ongoing scientific uncertainty.

The United States Global Change Research Program (USGCRP) estimates that sea level rise could be between 3 to 4 feet by the end of the century.

Increasing sea level projected due to climate changes as described above shifts the impact of mean high tide, storm surge, and saltwater intrusion to occur further inland and this would negatively affect reliable operation of the port infrastrucure for tanker traffic. Mitigation of these climate effects could be addressed by making engineering and operational changes at the port.

Potential Risk and Safety
Environmental Setting

The Rail/Tanker Option would combine the risk inherent in both pipeline and oil tanker
transport. However, the risks and consequences for using oil tankers to transport the hazardous materials are potentially greater than the proposed Project. Overall, crude oil transportation via oil tankers has historically had a higher safety incident rate than pipelines for fire/explosion, injuries, and deaths.

Spills have been reported while the vessel is loading, unloading, bunkering, or engaged in other operations

The main causes of oil tanker spills are the following:
• Collisions: impact of the vessel with objects at sea, including other vessels (allision);
• Equipment failure: vessel system component fault or malfunction that originated the release of crude oil;
• Fires and explosions: combustion of the flammable cargo transported onboard;
• Groundings: running ashore of the vessel; and
• Hull failures: loss of mechanical integrity of the external shell of the vessel.

From 1970 to 2011, historical data shows that collisions and groundings were the maincauses of oil tanker spills worldwide.

Potential Impacts

Loading and unloading of the railcars at tank farms near seaports could allow spills to migrate and impact seawaters and shorelines.

However, the loading and unloading are generally carried out under supervision and would be addressed promptly by the operators, limiting the potential migration and impacts of the spill to the immediate area.

Once the tanker is loaded and at sea, the propagation and impacts of a spill could become significant. Oil tankers may carry up to 2,000,000 bbl of oil

A release of oil at sea would be influenced by wind, waves, and current. Depending on the volume of the release, the spreading of oil on the surface could impact many square miles of ocean and oil birds, fish, whales, and other mammals and could eventually impact shorelines. Oil would also mix with particulates in sea water and degrade. As this occurs some oil will begin to sink and either be retained in the water column (pelagic) or settle to the ocean floor (sessile).

Pelagic oil could be consumed by fish or oil fauna passing though the submerged oil. Sessile oil could mix with bottom sediment and potentially consumed by bottom feeding fauna. Spills in ports-of-call could affect receptors similar to an open ocean release but also could temporarily affect vessel traffic and close ports for cleanup activities.

The identification of key receptors along the rail route alternative was not available for this evaluation. Therefore a comparison to the proposed project was not completed.

Surface Water

The Lloydminster to Prince Rupert portion of this route would begin in the western plains at the Saskatchewan/British Columbia border and travel west through an area of high-relief mountains with large valleys, referred to as the Cordillera region. From a water resource perspective, the plains region of Canada is characterized by relatively large rivers with low gradients. The plains rivers drain the Rocky Mountains to the Arctic Ocean. The Cordillera region is largely composed of northwest-southwest trending mountain ranges that intercept large volumes of Pacific
moisture traveling from the west towards the east. River systems in this region are supplied by a combination of seasonal rainfall, permanent snowfields, and glaciers.

The following are larger rivers crossed by the existing rail lines between Lloydminster and Prince Rupert:

• North Saskatchewan River, Alberta
• Pembina River, Alberta
• McLeod River, Alberta
• Fraser River, British Columbia
• Nechako River, British Columbia
• Skeena River, British Columbia

Wetlands

Spills within wetlands would most likely be localized, unless they were to occur in open, flowing water conditions such as a river or in the ocean. A crude oil spill in a wetland could affect vegetation, soils, and hydrology. The magnitude of impact would depend on numerous factors including but not limited to the volume of spill, location of spill, wetland type (i.e., tidal versus wet meadow wetland), time of year, and spill response effectiveness. The construction of additional passing lanes to accommodate increased train traffic resulting from this scenario could
result in permanent impacts to wetlands if passing lanes were constructed where wetlands occur.
However, as there is some leeway regarding the exact location of the passing lanes, it is expected that wetlands would be avoided by design.

Fisheries

The Rail/Tanker Scenario railroad route would cross numerous major streams and rivers in Canada, many of which support anadromous fish species such as salmon.

Anadromous species are those that spawn and rear in freshwater but migrate to the ocean at a certain size and age. Pacific salmon are large anadromous fish that support valuable commercial and recreational fisheries. Commercial fisheries for salmon occur in marine water and most recreational fishing for salmon occurs in freshwater. Salmon eggs are vulnerable to the effects of fine sediment deposition because female salmon deposit their eggs in stream bed gravels.

Despite this vulnerability, the overland railway route is not expected to present any new impacts to salmon unless there is a spill into its habitat, although the risk of spills does increase under this scenario due to the increase in the number of trains that would use the route.

Potential new impacts under the Rail/Tanker Scenario on commercially or recreationally significant fisheries along the route would be minor because the railroads that would be used are already built and in operation. However, the risk of an oil spill or release of oil or other materials still exists. The tanker portion of this route scenario is also subject to oil spill risk.

Threatened and Endangered Species

The rail route would cross over the Rocky Mountain region of western Alberta, which is inhabited by species such as the woodland caribou (Rangifer tarandus) (a SARA threatened species) and grizzly bear (a SARA special concern species). This region of British Columbia is home to a number of SARA threatened/endangered species, including the peregrine falcon (Falco peregrinus anatum) (SARA threatened), salish sucker (Catostomus sp.) (SARA endangered), white sturgeon (Acipenser transmontanus) (SARA endangered), caribou (southern mountain population) (SARA threatened), northern goshawk (Accipiter gentilis laingi) (SARA threatened), and Haller’s apple moss (Bartramia halleriana) (SARA threatened).

A number of additional SARA special concern species inhabit the regions of Canada that would be traversed by the Rail/Tanker Scenario, including but not limited to those special concern species expected to occur in the Prince Rupert region, and discussed above (B.C. Conservation Centre 2012).

Northwest Coast Energy News Special report links

What the Keystone Report says about Kitimat and Northern Gateway
What the Keystone Report says about the Kinder Morgan pipeline to Vancouver.
What the Keystone Report says about CN rail carrying crude and bitumen to Prince Rupert.
The State Department Environmental Impact Study of the railway to Prince Rupert scenario.

State Department news release

State Department Index to Supplemental Environmental Impact Study on the Keystone XL pipeline

 

Harper government stalling on earthquake readiness for Haida Gwaii, Cullen says

The Harper government is stalling on requests for better earthquake preparation on Haida Gwaii, according to the NDP MP for Skeena Bulkley Valley, Nathan Cullen.

Speaking to northwest reporters on Thursday, February 28, Cullen who is NDP House Leader, said: “The government has been stalling since November when we’ve been asking them to meet the communities and meet their demands for funding, because as we see more earthquakes come, the support hasn’t been there from the federal government.”

The Skeena Bulkley Valley riding includes Haida Gwaii which was hit by a major 7.7 magnitude earthquake on October 27, 2012. Haida Gwaii and the northwest coast was shaken with numerous aftershocks through the rest of October and November. The most recent were 4.3 magnitude aftershock on February 24 and 4.5 magnitude aftershock on February 25. 

On January 5, 2013, another 7.5 magnitude earthquake struck near Craig, Alaska. That quake was also felt throughout northwestern BC.

Both big quakes prompted tsunami warnings.

“The communities have done their work,” Cullen said. “We’ve given the government three months now. Earthquakes continue to still happen,

“Rather than shedding tears if something goes wrong, the government should fix the problems. We know exactly where the funding can be coordinated and effective particularly in Haida Gwaii, there’s been a lot of work done on behalf of their communities especially by their municipal leaders.

“The federal government simply has to say yes, to meet with them, to find some of those funding solutions. This is not rocket science.

“Maybe because there aren’t earthquakes in Ottawa, the Harper government doesn’t seem to think these things are a concern to people. But they are. And let’s not wait until a tragedy happens before we start to make some moves.”

Cullen noted that the federal government had recently budgeted $680,000 for new LED lights for the communities on Haida Gwaii.

“I am not going to speak against the need to put LED lights in but’s obvious that the federal government’s priorities are not aligned with what’s actually needed on the ground. People have been calling for this for years. We’ve seen tsunami warnings before. And there’s some good and reasonable fixes.

“The role of the federal government emergency preparedness requires this,” Cullen said, but then he added that, “Now one thing to keep in mind is that this federal conservative government wants to get out of anything to do with emergency readiness and response,” pointing to cutbacks in the budget for First Nations police forces.

Unmentioned at the news conference was that likely also includes the Coast Guard cutbacks on the west including, including the highly unpopular and controversial closing of the Kitsalano Coast Guard base in Vancouver

Cullen said he was hoping to meet with the cabinet ministers responsible to get more action on earthquake readiness on Haida Gwaii.

Related:

After the earthquake: Kitimat must immediately upgrade its emergency communications
Oct. 28, 2012

The tsunami, Twitter and the Zones: Did social media amplify government generated confusion?
Nov. 4. 2012

DFO study on ancient Douglas Channel tsunamis shows minimal impact on Kitimat, devastation at Hartley Bay
Nov. 17, 2012

 

Environment agency calls for comments on Prince Rupert LNG pipeline

The Canadian Environmental Assessment Agency is calling for comments on the proposed LNG project at Prince Rupert.

An agency news release says:

As part of the strengthened and modernized Canadian Environmental Assessment Act, 2012 (CEAA 2012) put in place to support the government’s Responsible Resource Development Initiative, the Canadian Environmental Assessment Agency must decide whether a federal environmental assessment is required for the proposed Pacific Northwest LNG Project in British Columbia. To assist it in making its decision, the Agency is seeking comments from the public on the project and its potential effects on the environment.

Progress Energy Canada Ltd. is proposing to construct and operate a liquefied natural gas (LNG) facility and marine terminal near Prince Rupert, within the District of Port Edward. The Pacific Northwest LNG facility would be located on Lelu Island. The proposed project would convert natural gas to LNG for export to Pacific Rim markets in Asia.

The agency says written comments must be submitted by March 11, 2013.

The CEAA says it will post its decision on the website if a federal environmental assessment is required.

It goes on to say:

If it is determined that a federal environmental assessment is required, the public will have three more opportunities to comment on this project, consistent with the transparency and public engagement elements of CEAA 2012.
Projects subject to CEAA 2012 are assessed using a science-based approach. If the project is permitted to proceed to the next phase, it will continue to be subject to Canada’s strong environmental laws, rigorous enforcement and follow-up, and increased fines.

nwpipemapBy “CEAA 2012,” the agency is referring to the omnibus bill, best known as C-38, which actually weakened the CEAA’s ability to review projects. “Science-based approach” has become a stock phrase used by the government of Stephen Harper on resource issues, while it weakened environmental review procedures, terminated the jobs of hundreds of scientists and restricted those who are left in the government from speaking to the media or commenting on issue.

In December,the CEAA called for similar input for the Coastal GasLink project to Kitimat, with a deadline of January 30. No decision has been announced for that project. which would be built by TransCanada for the Shell LNG Canada project.

Harper, Enbridge “poisoning the well” for northwest BC industrial development, Cullen says

Both the Conservative government of Stephen Harper and Enbridge Northern Gateway have “poisoned the well” against industrial developers in the northwest of BC and that is increasing resistance to all projects, Skeena Bulkley Valley MP and NDP House Leader told reporters Thursday, February 14.

Cullen was speaking during a regular conference call held with northwest BC media and was promoting his current Renewal Northwest tour of the riding.

“[There is a] huge amount of investment in the northwest,” Cullen said. The Renewal Northwest tour, he said, is intended to “bring the public into it, knowing good from bad, right from wrong.because some of these projects that will be excently suited for the northwest and others pose far too many risks. And how do you make that decision?”

“It’s a conversation a lot of people have been itching to get at.” Cullen said because in northern British Columbia a significant number of people have resisted development, whether it’s the proposed Northern Gateway pipline or fracking in the Sacred Headwaters of the Skeena, Stikine and Nass Rivers.

“Once you get past the conversation of what you don’t want, comes the conversation of what we do want.” Cullen said. “That means good jobs that fit in with our local ecology and our own values. It’s never been really been brought altogether.”

“To be honest most of the developers I talk to, most ofthe people looking to do mining or a gas pipeline or some other project are also looking for those same guidelines. What is it that the northwest wants? How is it that we can the social licences we call it to operate here?

“I’ve spoken to a number of these proponents and a lot of them realize that the well has been poisoned in part by the Harper government who has tried to bully people and call them names and shut down their voices. People get their backs up when they do that. It’s won them no friends.” Cullen said.

“In the case of Enbridge, a lot of those proponents will privately talk to you about how much harder it is to have a conversation in a community after Enbridge has been through town and offended people or just presented something in such a way that people get very resitant.

“I think that there has to be some repair work that has to be done. People do not have faith in the Harper government to protect some of these other values.

“Some of these companies have an up hill struggle based on recent community experience from which the likes of Enbridge has made them quite aware.

“A lot of them are picking up best practices.which is ‘don’t do what Enbridge did,’ do something smarter, more inclusive, and less abrasive. So people are learning there’s a path. We just have to describe what that path looks like.”

(An executive of one company planning an LNG development told Northwest Coast Energy News some months ago, “We’re looking at what Enbridge did and doing the opposite.”)

On the other hand, Cullen believes Enbridge is continuing to go in the opposite direction.

“Enbridge has been learning from the Harpter government doing these omnibus revisions to their pipeline and routing plans, dumpng huge amounts of paper, including increasng the amount of bitumen increasing the threat. All the time the federal government doesn’t seem to mind, Consistently British Columbia residents remain opposed and consistently opposed, with very at all supportive, I think the last poll had 11 per cent strongly support the project.”

Cullen was asked about reports, first from PostMedia News Scientist calls new confidentiality rules on Arctic project ‘chilling’ and later on CBC Canadian federal research deal ‘potentially muzzles’ U.S. scientists
that the Harper government is moving beyond trying to control information released by scientists who are government employees to any scientist who may work alongside those scientists or participate in a federally sponsored research project.

“This is a continuation of a pattern from this government, they are now trying to muzzle people , they don’t actually control and folks are resisting cause it goes against every princple of what good science is you put it out into the public sphere for debate and learning,” Cullen said. “It shows that the government isn’t interested in those facts.

“So it gets worse and worse. It goes back to an earlier question about what it’s like to work in the northwest , the well is poisoned by the Harper government when it comes to any of these questions because thy do things like this and people lose any confidence that the government’s impartial. Well, it’s obviously not, It’s only looking for one answer with anything to do with oil and gas in particular. Anyone who presents anything like science or evidence to the contrary is just shut down and muzzled and I am glad to see the scientific community shows backbone and resists.”

Expansion of proposed Kitimat bitumen terminal urgent to get offshore markets, Enbridge tells JRP

Enbridge Northern Gateway has told the Joint Review Panel that expansion of the proposed bitumen and condensate terminal in Kitimat is urgent so the company can access offshore markets for Alberta bitumen sands crude.

Northern Gateway filed an update on its plans for the Kitimat in response to a ruling from the JRP, after Smithers-based activist Josette Weir questioned how Enbridge filed a route update with the panel which included the plans to expand the terminal.

The JRP ruled against two of Weir’s motions but upheld, in part, her objection that the terminal plans were not part of a route revision.

In the Motion, Ms. Wier argues that there are a number of completely unrelated documents embedded within the route revision changes including, for example, a “noticeable increase in the number of oil tanks at the Kitimat terminal” with “significant size increases included.” There is no discussion in the update documents on how these changes are related to the proposed routing change. Ms. Wier further notes that this evidence was submitted after the completion of questioning on engineering (including regarding the Kitimat tank farm) in Prince George last
November.

The Panel notes that it may be of use to parties for Northern Gateway to identify which of the exhibits submitted on 28 December, 2012, were: (i) directly related to Route Revision V; (ii)corollary to Route Revision V; or (iii) unrelated to Route Revision V. Accordingly, the Panelorders Northern Gateway to submit, on or before 1 February 2013, a chart setting out this information for each of the exhibits submitted in the 28 December 2012 update. Further, where the documents are listed as “unrelated to Route Revision V”, Northern Gateway is to provide a
brief description as to why this evidence is being filed at this time.

 

In response, Northern Gateway filed a spreadsheet with the JRP to clarify the reasons for including the expansion of the tank farm. As the JRP requested, the explanation is brief, but significant.

Northern Gateway stated that “the size and spacing of tanks will be optimized during detailed design.”

In recognition of the urgency of accessing offshore markets, Northern Gateway and its Funding Participants have recently agreed to proceed with engineering and design activities.

Brief description as to why this evidence is being filed at this time required:

…for preparation of a Class III Cost Estimate, at an expected cost of over $150 million. Discussions with the Funding Participants in late 2012 resulted in a more detailed analysis of the tankage required by shippers, with particular emphasis on ensuring an adequate degree of commodity segregation within the tank farm. That analysis, which concluded in December 2012, revealed that additional tankage would be required to satisfy commodity segregation requirements.

Northern Gateway included this information along with its Route V filing as a matter of convenience to all involved.

In respone to Weir’s objection that the Enbridge Northern Gateway filed a major change to the project and noted that most intervenors are limited to the deadlines set by the JRP, and that the engineering hearings in Prince George had already concluded.

In response, the panel ruled that Enbridge could present the evidence at the marine hearings in Prince Rupert that resumed today.

In its letter enclosing the 28 December 2012 update on Route Revision V, Northern Gateway noted that, “to the extent that there are questions regarding this filing that have not been previously addressed, members of the Northern Gateway Kitimat River Valley engineering design and emergency preparedness witness panel will be available to answer same when they appear in Prince Rupert.”

The Panel is of the view that any substantive questions on the updated evidence could best be
addressed through questioning in Prince Rupert, as suggested.

At the opening of the hearings in Prince Rupert, Coastal First Nations withdrew from the process, citing the cost and complexity of the hearings. Both events once again call into question the fairness of the Joint Review Process and whether or not there is a double standard, with one set of standards for Enbridge Northern Gateway and another for intervenors.

Northern Gateway Response to JRP Ruling 141 Route_Rev_V

Ruling No. 141 Notice of Motion by Josette Weir

 

 

CNOOC-Nexen deal makes “absolutely no sense” Cullen says, fears Beijing will dictate Canadian resource policy

Skeena Bulkley Valley MP and NDP House leader says the Harper government’s approval of the takeover by CNOOC, the China National Offshore Oil Corporation of the Alberta-based energy company, Nexen Inc.  makes “absolutely no sense.” Cullen also told northwest reporters in an end-of-year news conference that if the Conservatives continue their present policies, “Beijing will be directing Canadian energy policy and what we do with natural resources.”

Cullen said the approval of the CNOOC Nexen deal was a major development: “The other big news was the reluctant, but enthusiastic approval of the CNOOC Nexen deal; this is the purchase of by the Chinese state-owned company CNOOC. Nexen [is] the 12th largest group in the oil sands, which is also meant to be the source for the Northern Gateway pipeline.

“Stop if anyone thinks this is a coordinated conspiracy to turn the oil sands into an entirely Chinese government owned project.

“[It is] very, very unpopular in Canada, very unpopular in Alberta and the government did this very strange thing where they approved the deal and then said never again because the net benefit test is not being met and that it’s bad for Canada but this deal can go ahead.

“It makes absolutey no sense whatsoever. This combined with the agreement with China, the Foreign Investment Protection Agreement, it now allows the Chinese government to buy up as many oil sands leases as they want. This will very much put a chill on any government in Canada, provincial or federal from introducing laws that hurt Chinese interests because we are now open to lawsuits.”

Cullen was also asked about the PetroChina’s purchase of a stake in the Browse LNG project in Australia. (Cullen’s news conference took place before the announcement that PetroChina had bought into an Encana project as well) and the prospect for LNG projects at Kitimat and Prince Rupert.

“I don’t think the market has the capacity for all of these projects to go ahead and that’s coming from people who know a lot more about LNG shipping than I do.

“I don’t think we have the carrying capacity in the northwest for all of them to go ahead. It will be the first two or three through the gate that will be successful and I think there’s some concern from folks when they look at the whole sweep of projects being proposed what the total shipping traffic would be and what the impact would be just in general. I can see people’s hesitation.

“We’ve been trying to work with those companies so they are out and meeting with the communities. Like any industry there are some companies that are quite open and good at consulting and actually accommodating peoples’ concerns. There are others are not so good. So we’ve been trying to encourage everyone to get to the gold standard and know that they need a social licence to operate in the northwest and if they don’t ahve it, it’s very difficult for the project to get off the ground.

Wild, wild west

“When we don’t have good laws in Canada talking about saying what foreign state control over our natural resources can and can’t be, it’s the wild, wild west. So as this thing goes along, the concerns will become more and more clear that the interests being served will not be Canadian.

“To give the Chinese credit, they’re absolutely up front and explicit about this. To the Conservative government’s complete shame, they don’t seem to care. Beijing will be directing Canadian energy policy and what we do with natural resources.

“All of this to win the government a little bit of favour with the Chinese is just maddening to me.

“Again I recall the old line the Conservatives used to use in elections ‘we’re going to stand up for Canada.’ Wow, did that ever turnout to be an outright lie.

So it’s frustrating and its very worrisome. This isn’t a right-left thing, I’m hearing from a lot of conservative commentators and folks back in the northwest who are very strong supporters of Conservative politics that this not their kind of conservative government, they don’t even recognize it any more.

“This happens to prime ministers from time to time. They get sucked in to the lobbyists and the global circuit and really start to lose touch with what Canadian values are. I think, unfortunately that’s what happened to our prime minister.

Related Links

Nexen news release

Norton Rose law firm guidelines for State Owned Enterprises in Canada

DFO study on ancient Douglas Channel tsunamis shows minimal impact on Kitimat, devastation at Hartley Bay

A follow up study by the Department of Fisheries and Oceans on the discovery of prehistoric slope failure tsunamis in Douglas Channel concludes that the events would have had minimal impact on Kitimat but would have destroyed Hartley Bay.

The studies were filed by DFO with the Northern Gateway Joint Review Panel on Friday, November 16, following an earlier study the Geological Survey of Canada that reported the discovery of the submarine slope failures. The filing comes just three weeks after the region was shaken by a 7.7 magnitude earthquake off Haida Gwaii and a subsequent coast-wide tsunami warning.

The DFO follow up study was aimed at better understanding the dynamics of tsunamis during the two slope failure events on the southern end of Hawkesbury Island during the mid-Holecene period, between 5,000 and10,000 years ago.

The wave dynamic model study does not address the discovery by the Geological Survey of Canada of a possible fault line along Hawkesbury Island which could have been the cause of the slope failures.

The study estimates that the wave amplitude of the first tsunami reaching the proposed Enbridge Northern Gateway terminal site near Kitimat would have been about .09 to .12 metres. Since the actual wave height hitting land from a tsunami is one half of the amplitude, the height of tsunami waves reaching Kitimat at the time would have been about 60 centimetres or 23 inches. At Hartley Bay, on the other hand, the maximum estimated wave amplitude from the second tsunami would have been 15 metres, meaning a wave height of 7.5 metres or about 25 feet.

The main reason for the difference is that both the submarine slope failures occurred south of  the dogleg in Douglas Channel at Gertrude Point. That meant the configuration of the channel from Gertrude Point up to Kitimat would lessen the amplitude whereas because Hartley Bay was so close, it would be hit by a higher amplitude. The report says that because of their relatively short wavelengths, the tsunami waves undergo multiple reflections that the “high degree of scattering from the complex shoreline and bottom topography in Douglas Channel” would “combined with the flux of tsunami energy through adjoining waterways and channels” have caused a rapid decrease in the energy of the waves with distance south and north of the slide area.

The study also points out a crucial difference between the ancient slides and the two that occurred near Kitimat in 1974 and 1975, while the land near the head of the Kitimat arm were largely composed of material laid down by the glaciers, the large slope failures on Hawkesbury Island were blocks of an extremely hard igneous rock called diorite. Each of the prehistoric slides would have consisted of about 65 million cubic metres of rock.

The DFO report says

Coastal British Columbia is an area of steep slopes, extreme seasonal variations in soil moisture, large tidal ranges, and the highest seismicity in Canada. Hazards of this form have been well documented for the coastal region of British Columbia, and other fjord regions of the world’s oceans, including Alaska and Norway. These factors increase the potential for both submarine and subaerial slope failures in the region. Such events generally take place in relatively shallow and confined inner coastal waterways, and can present hazards in terms of tsunami wave generation.

The two prehistoric submarine slides are located about 10 kilometres apart on the
slope of southern Douglas Channel, near the southern end of Hawkesbury Island

The report says:

The failures are defined by scallop-shaped hollows located along the edge of the fiord wall and appear to be associated with detached blocks that extend out several hundred metres into the channel. The two block slides identified in Douglas Channel are characteristic of rigid-body submarine landslides, which differ considerably from the well-documented viscous submarine landslides with a lower specific gravity (density relative to water) of about 1.5 that occurred to the north of Douglas Channel along the inner slope of Kitimat Arm in 1974 and 1975.

The report’s modelling is “considered minimum values” because the do not include debris that would have spread into the fiord after initial slide. That debris is now buried by a thick layer of post-slide sediment.

DFO diagram of the model of Slide A on Hawkesbury Island (DFO)

The reconstruction model shows that the head of the more northern slide began at a depth of around 60 to 100 metre, while that of the more southern slide began at a depth of 75 to 120 metres.

The slides would have moved down slope at about 25 metres per second, coming to rest after about 30 seconds, 250 to 350 metres from the slope at a depth of 400 metres.

The northern slide, called by the scientists Slide A:

would have generated extremely large waves in the immediate vicinity of the failure
region within a minute of the submarine landslide. Waves in the numerical simulations reach amplitudes of 30 to 40 metres at the coast near the slide area

Submarine landslides cause delays between the arrival of the first waves and the arrival of subsequent higher waves, increasing in distance from the slide, because of “reflections and non-linear interaction” along the shoreline. For Slide A, the maximum wave amplitudes at Hartley Bay would have been six metres (meaning three metre waves) “Large amplitude waves with typical periods of around 50 seconds would continue for several tens of minutes.”

The leading tsunami waves generated by Slide A reach Kitimat Arm in roughly 20 min and have small amplitudes of only a few centimetres. Although later waves have higher amplitudes, the maximum wave amplitudes (which occur 50-55 minnutes after the failure event) are still only around 0.09 to 0.12 metres.

The southern slide on Hawkesbury, called Slide B by the scientists, would have moved 400 metres before stopping. It stared at a greater depth than Slide A, with not as much vertical displacement than Slide A. That means Slide B was slower than Slide A.

Slide B:

would have generated large waves in the vicinity of the failure region. Simulated waves reach the coast adjacent to the slide region within a minute of the failure event, with wave amplitudes of up to 10 metres. The waves also hit the opposite site of the channel within a minute of the failure event and then take an additional minute to reach Hartley Bay where waves reach amplitudes of 15 metres/ Powerful oscillations in the bay last for tens of minutes.
Waves with high amplitudes (more than 2 metres) also occur in the southern part of Douglas Channel, and in certain locations of Verney Passage.

According to the models, the leading tsunami waves would have reached the Kitimat Arm 22 minutes after the start of the slide. The maximum waves would have had amplitudes of 0.08 metres to 0.3 metres (6 inches), reach the Kitimat Arm 45 to 60 minutes after the start of the failure event.

The the tsunami waves generated by Slide B that impact Kitimat Arm,  although still of low amplitude, were somewhat higher than those generated by Slide A, despite the fact that Slide B was located further to the south and generated less energetic waves in the source region than Slide A.

This seeming paradox is explained by the slower motion of Slide B, which causes it to generate more wave energy in the low frequency band…Due to their reduced scattering and reflection, the relatively long and lower frequency waves generated by Slide B propagate more readily through the complex fjord system than the relatively short and higher frequency waves generated by Slide A.

Specifically addressing the proposed site of the Enbridge bitumen terminal, as well as potential tanker traffic in Douglas Channel, the detailed explanation of the modelling accompanying the DFO report says:

If similar submarine slides were to occur again somewhere in the same general area, they could present a significant risk to navigation and to nearby shore installations and coastal communities….

As with the tsunami generation regions, the highest waves and strongest currents in any particular region of the coastal waterway would occur near the shoreline. Based on the numerical findings, tsunamis generated by submarine landslides of the form identified for the southern end of Douglas Channel would have heights and currents that could have major impacts on the coastline and vessel traffic at the time of the event throughout much of Douglas Channel, but a minor impact on water levels, currents and hence vessel traffic in Kitimat Arm. Hartley Bay, at the southern end of Douglas Channel, would be impacted by high waves and strong currents, whereas Kitimat, at the northern end of Kitimat Arm, would experience negligible wave effects. Additional modelling would be required to assess the characteristics of possible tsunamis originating beyond the area of the two identified slope failures.

At the estimated propagation speeds of about 65 metres per second, the detailed model says it takes roughly 10 to 15 minutes for the simulated waves to propagate approximately 40 to 45 kilometres to the intersection of Douglas Channel and Kitimat Arm, where peak wave amplitudes would be diminished to less than one metre. It takes another 15 minutes for the waves to reach sites near the proposed Enbridge facilities in Kitimat Arm where wave amplitudes would be reduced to a few tens of centimetres and associated currents to speeds less than a few tens of centimetres per second.

 

 

Slide tsunami area map
Slide tsunami area study map (DFO)

 

Fisheries and Oceans-Modelling Tsunamis Associated with Recently Identified Slope Failures in Douglas Channel  (pdf)

Numerical data for DFO tsunami study (link to JRP)

 

Northern Gateway JRP increases time for maritime hearings in Prince Rupert

The Northern Gateway Joint Review Panel has released an updated schedule for the “Questioning Hearings” in Prince Rupert,which will cover maritime issues and for the public comment sessions in Vancouver, Victoria and Kelowna.

The comment hearings in Victoria will take place from January 3 to January 12, 2013, in Vancouver from January 14 to January 18 and January 30 to February 1, with a hearing in Kelowna on January 28.

The questioning hearings in Prince Rupert have been expanded due to demand, according to the JRP, opening on February 4, 2013, going to February 9, then from February 18 to 23, February 25 to March 5; March 11 to March 16; March 18 to March 22; April 2 to April 6; April 8 to April 12; April 22 to April 27; April 29 to May 3; May 13 to May 18.

Final arguments will begin on May 20 and continue to late June. The Joint Review Panel has not yet announced the location for final arguments. The JRP refused to hold the questioning hearings in Kitimat, but some supporters of hearings in the larger locations did support that the idea that the final arguments be held, at least in part, in Kitimat. The final arguments just be completed by June 29, according to the JRP.

The JRP will begin its deliberations in July with the final report due on December 29, 2013.

 

Panel Commission Updated Hearing Schedule for 2013  (pdf)