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Kitimat LNG, Rod and Gun to consult on “legacy” fish and wildlife program at Bish Cove: NEB

Bish Cove, site of the KM LNG (Kitimat LNG) natural gas terminal, photographed on a stormy Sunday, Sept. 18, 2011. (Robin Rowland/Northwest Coast Energy News)

KM LNG (also known as Kitimat LNG) will consult with the Kitimat Rod and Gun club about creating a “legacy” fish and wildlife program at Bish Cove, according to the National Energy Board decision that granted an export licence for liquified natural gas to the partnership.

As part of its consideration of the social, economic and environmental aspects of the project, the NEB noted:

The Kitimat Rod and Gun Association requested that KM LNG and its partners establish a fish and wildlife “legacy” program for the area. In response, KM LNG committed to working with the Kitimat Rod and Gun Association to explore a partnership and stated it and its partners are committed to investing in the communities where KM LNG operates. KM LNG noted it already supported some community initiatives and would set aside funds to support others, after a positive investment decision.

KM LNG has hired the energy services company KBR to do a front end engineering and evaluation study of the project which is expected to be completed in December. The partners will then make the decision whether or not to go ahead with the project.

Mike Langegger of the Kitimat Rod and Gun, who made the presentation to the hearings in June, says the club has had some preliminary talks with the KM LNG public relations staff but so far there have been no formal talks about the legacy program.

In its presentation to the NEB, Kitimat Rod and Gun said it would ask KM LNG for a legacy fund that would be $7.25 million over the twenty-year period of the export licence. The money would be used to preserving fish, wildlife and habitat in the area around the natural gas terminal

Langegger says while it is uncertain if KM LNG will agree to the complete proposal, no matter what the outcome he wants all stake holders to be involved, with they are “consumers” (hunters and anglers) or “non-consumers” (naturalists) so that the habitat is maintained.

NEB decision on KM LNG application(PDF)

Kitimat Rod and Gun submission to NEB (PDF)

B.C. hunting, fishing guides frustrated by lack of government support

Fishery Business

B.C. hunting, fishing guides frustrated by lack of government support: CBC News

By Robin Rowland, CBC News

SPECIAL REPORT: Small business news and features

Along the fjord known as the Douglas Channel in northwestern B.C., the winds are at gale force as Rick Thompson, the owner-operator of a floating fish lodge called the Tookus Inn, sets off from Kitimat harbour to close up for the season. Like many in his industry, he has poured much time and energy into building his outfitting business and he’s frustrated by staffing problems and the fact that guides seem to have fallen off the map when it comes to government support.

NEB approves KM LNG export licence

Energy

The National Energy Board has approved KM LNG’s (also known as Kitimat LNG) application for an natural gas export licence.

A NEB news release says:

The National Energy Board (NEB or the Board) today approved an application by KM LNG Operating General Partnership (KM LNG) for a licence to export liquefied natural gas (LNG) from Kitimat, British Columbia to markets in the Asia Pacific region.

The export licence authorizes KM LNG to export 200 million tonnes of LNG (equivalent to approximately 265 million 10³m³ or 9,360 Bcf of natural gas) over a 20 year period. The maximum annual quantity allowed for export will be 10 million tonnes of LNG (equivalent to approximately 13 million 10³m³ or 468 Bcf of natural gas).

The supply of gas will be sourced from producers located in the Western Canada Sedimentary Basin. Once the natural gas has reached Kitimat by way of the Pacific Trail Pipeline, the gas would then be liquefied at a terminal to be built in Bish Cove, near the Port of Kitimat.

The construction and operation of the pipeline and the terminal will require provincial regulatory decisions.

This is the first application for an LNG export licence that the Board has considered since the de-regulation of the natural gas market in 1985.

In approving the application, the Board satisfied itself that the quantity of gas to be exported does not exceed the amount required to meet foreseeable Canadian demand. The exported LNG will not only open new markets for Canadian gas production, but the Board believes that ongoing development of shale gas resources will ultimately further increase the availability of natural gas for Canadians.

Prior to approving the licence, the Board considered environmental and related socio-economic effects of KM LNG’s application. These effects included matters related to marine shipping, and the proposed LNG terminal and Pacific Trail Pipeline.

The Board also acknowledges the potential economic benefits associated with KM LNG’s project. These benefits include employment opportunities due to the development of the LNG terminal and the Pacific Trail pipeline.

Kitimat mayor Joanne Monaghan said, “I am glad they got it, because now the project can move forward.”

KM LNG is owned by Apache Canada Ltd. (40 per cent), EOG Resources Canada Inc. (20 per cent) and Encana Corp. (20 pre cent). The Front End Engineering for the LNG terminal at Bish Cove is now underway. The companies say a final investment decision will be made in early 2012.

A news release from Apache said:

“The Kitimat LNG project represents a remarkable opportunity to open up Asia-Pacific markets to Canadian natural gas and we’re leading the way in being able to deliver a long-term, stable and secure supply to the region,” said Janine McArdle, Kitimat LNG President. “This export licence approval is another major milestone for Kitimat LNG as we move forward and market our LNG supply. LNG customers can have even more confidence in a new source of supply.”

“Today marks a historic day for Canada’s natural gas industry and this is fantastic news for our project and the communities where we operate. Kitimat LNG will bring revenues and jobs and the associated benefits to Canada,” said Tim Wall, Apache Canada President. “The Kitimat LNG partners are very pleased with the NEB’s approval of our export licence and we’d like to thank them for their support and confidence in the project.”

Text of NEB Decision on KM LNG(pdf)

EPA finds submerged oil, orders Enbridge to file new Michigan clean up plan by Oct. 20

Environment

A map issued by the US Environmental Protection Agency showing pockets of submerged oil found in the Kalamazoo River during summer 2011 cleanup operations (EPA) Click on map for larger version.

The United States Environmental Protection Agency has ordered Enbridge to “to take additional steps to clean up the July 2010 oil spill that damaged over 35 miles of the Kalamazoo River system.”

The
directive requires Enbridge to submit plans by Oct. 20, 2011 “for
cleanup and monitoring work expected to last through 2012”. EPA news release. Failure to comply could result in civil penalties.

The local newspaper the Battle Creek Courier quotes an EPA official as saying agency has learned a lot in the 14 months since the Enbridge pipeline burst, contaminating five acres of land, part of Talmadge Creek and 35 miles of the Kalamazoo River. The order was based on what the EPA has learned in the past few months.

“As we get near the end of the active submerged oil recovery, we’ll have to have systems in place long-term to do long-term maintenance,” Ralph Dollhopf, the EPA’s on-scene coordinator told the paper. “So we’ve taken all of these elements and packaged them into a set of expectations — specific tasks that Enbridge has to perform through 2012.”

Most of the remaining oil is submerged at the bottom of the Kalamazoo River or on about 200 riverbank sites that haven’t had work done yet, Dollhopf told the paper.

The EPA also is asking Enbridge to install “passive collection devices” in areas where oil commonly accumulates in the river, Dollhopf said. Oil remaining in the river tends to mass at natural deposit points — most commonly near dammed areas.

The EPA says the work will continue to the end of 2012 and even into 2013 if necessary to remove as much remaining oil as it can without harming the environment.

Some parts of the river may be reopened to the public in 2012.

An Enbridge spokesman, Jason Manshum said in an email to the Michigan paper “Enbridge has committed since the outset of this incident to restore the area as close as possible to its pre-existing condition, and to the satisfaction of the U.S. EPA, Michigan DEQ and the local community. We remain fully committed to that goal.”

The EPA situation report says that after a year of extensive cleanup work in the Kalamazoo River system. the EPA identified pockets of submerged oil in three areas covering approximately 200 acres that require cleanup…

To date, more than 766,000 gallons of oil have been recovered and 113,000 cubic yards of contaminated soil and debris have been sent to EPA-approved disposal facilities. Enbridge will be required to repay the government for all response costs.

Work during the summer of 2011 was focused on:

Revisiting shoreline areas cleaned up in 2010 where winter weather and spring floods exposed previously unseen oil or spill impacts.
Excavating oil contaminated soil and weathered tarry oil from the overbank areas.
Recovering pockets of submerged oil in the sediment. EPA has identified three major submerged oil areas including the delta leading into Morrow Lake.

Michigan cleanup by the numbers

766,288 gallons of oil recovered
6 million gallons of oil/water collected and disposed
144,942 cubic yards soil/debris disposed
783 personnel on site
$33.9 million costs to date

Source EPA, Sept. 16, 2011

Kitimat LNG on the agenda at Houston conference

Energy

The Kitimat LNG projects have been added to a conference on LNG exports in Houston, Texas on December 1.

Zeus Events, the commercial organizer of the conference tweeted this morning “Kitimat #LNG Export project added to N. American LNG Exports conference.”

The conference agenda describes the presentation this way:

Kitimat LNG Export Project Update
Kitimat LNG Project, Speaker TBA

Apache is developing the most advanced LNG export project in North America at Kitimat, British Columbia. Construction is expected to begin in early 2012, with operations to start in 2015. The representative has been asked to describe the project and provide an update, discussing what it will mean for British Columbia gas producers.

The conference website describes it as:

Proposals to liquefy and export North American gas as LNG have grown more numerous and controversial since our 2010 conference. At last count, ten liquefaction and export projects have been proposed on both coasts of North America. Analysts warn, however, that the United States is preparing to export its clean, abundant natural gas to countries like China, where it will be used for transportation fuel, while the U.S. will continue to import high-cost crude for its transportation.

This year’s conference will expand on our 2010 meeting to address political issues such as FERC’s willingness to approve export plant construction permits as well as examine new proposals. Costs, political hurdles and regulatory issues will be discussed.

The Oregon projects, seen by analysts at the June National Energy Board hearings as Kitimat’s chief rival are also on the agenda at the conference.

US, European companies looking at LNG powered ships

Energy Environment Shipping

As one ship is grounded off New Zealand, causing an environmental “catastrophe” and a second is grounded off Nova Scotia, a shipping company in New Orleans has announced that it will commission two vessels powered by a duel fuel system that includes liquified natural gas.

Harvey Gulf International Marine of New Orleans, Louisiana and Trinity Offshore of Gulfport, Mississippi said Friday it will build two offshore 92 metre (302 foot) supply vessels, with a price tag of $55 million each with an option for a third. These vessels will service the oil and gas rigs in the Gulf of Mexico.

New Orleans City Business report

The vessels will also have environmental features to meet US ENVIRO+ Green Passport Certification by the American Bureau of Shipping.

The ship’s propulsion system will be built by a Finnish company called Wärtsilä, which specializes in natural gas power plants on land and integrated marine engine systems, as well as designing ships, including large ferries.

Wärtsilä

In a news release, John Hatley, a vice president of Wärtsilä North America remarked that “We are witnessing a transformation of the marine industry as it charts a course towards a new era for natural gas. It’s exciting for Wärtsilä to be a trusted partner in this launch with industry leader Harvey Gulf, whose natural gas supply vessel investment actions of today signal a coming paradigm shift. This is aimed at capturing operational savings while simultaneously reducing emissions.”

The company website says it supplies power systems for LNG carriers as well as container vessels, bulk carriers, drilling rigs and ships, offshore research vessels, floating production units, cruise ships and yachts.

The duel fuel system combines conventional marine fuel systems, gasoline, light fuel, heavy fuel or biofuel with liguified natural gas.

European shipping companies are adopting the duel fuel technology to meet emission standards that come into effect 2013.

Wärtsilä

The website says

This dual-fuel capability means that when running in gas mode, the environmental impact is minimized since nitrogen oxides (NOx) are reduced by some 85 per cent compared to diesel operation, sulphur oxide (SOx) emissions are completely eliminated as gas contains no sulphur, and emissions of CO2 are also lowered. Natural gas has no residuals, and thus the production of particulates is practically non-existent.

The shipping industry finds the operational savings that gas offers to be very compelling. Similarly, the significant environmental benefits that LNG fuel provides are of increasing importance. With fossil fuel prices, and especially the cost of low sulphur marine fuel, likely to continue to escalate, gas is an obvious economic alternative.

Two-stroke engine

On September 23, Wärtsilä, announced that it is now working on a two-stroke liquified natural gas engine. The website says:

Wärtsilä… has successfully tested its new low-speed gas engine technology in trials conducted at the company’s facilities in Trieste, Italy….
Wärtsilä successfully demonstrated that the engine performance fully complies with the upcoming IMO Tier III nitrogen oxide (NOx) limits, thereby setting a new benchmark for low-speed engines running on gas.

The new RTX5 2-stroke test engine is part of Wärtsilä’s 2-stroke dual-fuel gas engine technology development programme. This is an important part of the company’s strategy to lower emissions, increase efficiency and to develop its low-speed engine portfolio to include dual-fuel gas engines alongside its medium-speed dual-fuel engines.
“The decision to initiate this project was announced in February 2011, just seven months ago. The fact that we have already conducted a successful test shows that our gas engine technology is at the forefront of meeting the future needs of shipping, a future that stipulates more stringent environmental regulation….

The tests with the RTX5 engine will continue during the autumn and winter of this year, and into 2012. More details about the engine technology and its performance will be announced upon completion of the programme.

Want to catch that fish? Check its personality profile

Environment Fishery

A study at Queen’s University in Kingston seems to indicate that fish not only have individual personalities, but that personality could determine where the fish may be caught.

According to a news release from Queen’s:

Anglers fishing near rocky outcrops or in areas of water with submerged vegetation may be more likely to catch timid fish, while those fishing in open water may be more likely to reel in bolder fish, according to new research conducted at Queen’s University Biological Station.

“Boldness–the tendency of an individual to take risks–is one personality trait of considerable interest to behavioural biologists,” explains lead author Alexander Wilson, a visiting biologist from Carleton University. “Ours is the first study to have characterized a relationship between capture technique and individual boldness in a wild population of fish.”

The researchers studied bluegill sunfish caught either by angling or beach seining (a long net that is dragged through water to encircle fish).

The fish caught angling were more timid than fish captured in the wild using a seine net. However, when a group of fish captured by seine net was then released in a large outdoor pool and angled for, it was the bold individuals who were most often caught in the open.

Wilson says the researchers caught more fish in the areas with refuge–a habitat that appeals more to timid fish. On the other hand, beach seining or angling in open water are both capture techniques that are more likely to target bolder, risk-taking fish.

This research was recently published in the Canadian Journal of Fisheries and Aquatic Science.

Northern Gateway Pipeline will benefit all Canadians, Daniel says

Energy Link

Enbridge CEO Patrick Daniel, writing on the Troy Media site says Northern Gateway Pipeline will benefit all Canadians

With the second largest proven
petroleum reserves in the world, Canada may like to flatter itself that
it is a global energy superpower, but it’s not true.

It could be. One day it might be. But it is not an energy superpower yet…

The Enbridge Northern Gateway
pipeline project, which will run from Edmonton, Alberta, to Kitimat,
British Columbia, is one step on the road to Canada becoming an energy
superpower. With Northern Gateway we will be able to safely move energy
to the West Coast, open new markets for Canadian petroleum and create
thousands of construction and supplier jobs as well as significant
permanent employment right across Canada.

Washington Post editorial argues that Northern Gateway will go ahead

Energy Link (Editorial)

An editorial in the Oct. 10, 2011 issue of the Washington Post argues that it is realistic that the Northern Gateway pipeline (without actually mentioning the name) will go ahead.

In Keystone XL pipeline is the wrong target for protesters

The Post takes aim at the protestors who oppose the Keystone pipeline, seeing it as a passionate fight against fossil fuels. The editorial then goes on to say

True, the petroleum that comes from Alberta’s “tar sands” isn’t very clean; it produces more carbon emissions than light sweet crude. And, true, pipelines can leak, as recent ruptures in Michigan and under the Yellowstone River demonstrate.

But rejecting the pipeline won’t reduce global carbon emissions or the risk of environmentally destructive spills.

Canada’s government — and rising world petroleum prices — guarantee that the country will extract the oil from its tar sands, and that Asia will take it if America doesn’t. That means using pipelines to transport Canada’s heavy crude hundreds of miles to the West Coast and then shipping it abroad, burning fossil fuels and risking ocean spills along the way. China already has a large stake in Canadian oil production. Plans are already in the works to build the necessary pipelines.

The Post notes the allegations that the bitumen sands crude, once refined will not benefit the US but will be exported through the Gulf Coast. Then adds, “But if export markets are that attractive, Canadian crude will reach them without transiting the United States, and American refineries will get their low-grade crude from somewhere else.” For the Post the bottom line is American security, preferring low-grade crude form Canada rather than from hostile Venezuela or the volatile Middle East.

The Post concludes:

Producing energy is a dirty business, and it will remain so for a long time, even with the right policies. Part of facing this reality is admitting that how the world produces energy must change over time. But another part is accepting that oil production will continue for decades and clear-headedly managing the risks — not pretending we can wish them away

The online comments, as you might expect, are about one third in favour (jobs and the economy), one third opposed (climate change, oil spills) and the rest the usual nasty diatribes.

Editors note: Whether or not one supports or opposes the Northern Gateway pipeline, the editorial is a prime example of arm chair rhetoric probably composed by a writer comfortably living in a Georgetown brownstone who will never come within 1000 kilometres of Douglas Channel. It is well known that The Washington Post is not the paper it was 20 years ago. The muddled talk about “clear-headedly managing the risks” shows how the once-great paper has declined. The editorial is actually insulting to both sides, since it is obvious that the Post editorial board have no knowledge of the thousands of pages filed by Enbridge that outline the risks of the Northern Gateway and the company’s contingency plans nor the reservations about the pipeline outlined by the environmental movement, First Nations and local residents.

But then not many news organizations these days bother to assign reports to actually come to the scene of any story. In recent months, just three, Alberta Oil, The Calgary Herald and The Globe and Mail have come here. The rest are content to sit at their desks and work on, as one former managing editor of a major Canadian daily put it, “telephone-assisted reporting.”

US Coast Guard seizes “stateless” drift net boat off Alaska: AP

Fishery

Associated Press reporter Becky Bohrer in Juneau reports on the Bangun Perkasa a rat-infested illegal fishing boat with a 10 mile long drift net seized off Alaska.

Seized Vessel Shines Light on Illegal Fishing

The recent seizure of a stateless ship in international waters 2,600 miles off Alaska’s coast has spotlighted the challenge that the U.S. and other nations face in trying to crackdown on illegal fishing, an activity that accounts for up to $23.5 billion a year in global economic losses.

Finding rogue vessels in the vast, open ocean can be like finding a needle in a haystack. But U.S. officials and some environmentalists say progress is being made, including multinational patrol and enforcement agreements and the potential for sanctions against countries that engage in illegal, unreported and unregulated (or IUU) fishing.