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

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

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

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

Susceptibility to landslides

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

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

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

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

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

New studies

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

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

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

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

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

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

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

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

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

“Fault-like structure” on Douglas Channel

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

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

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

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

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

Clay and sand in Kitimat

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

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

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

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

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

Terrace earthquake

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

Bella Bella at risk

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

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

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

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

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

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

Model #1. A magnitude 8.0 Earthquake at Haida Gwaii

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

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

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

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

Model #2. A magnitude 7.2 Earthquake in Douglas Channel

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

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

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

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

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

Model #3  A magnitude 6.3 Earthquake near Terrace

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

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

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

Motivation for study

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Related Commentary: The earthshaking difference between Enbridge and LNG

Download the Geological Survey Studies (PDF)

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

North Coast Geohazards 2016 Seismology Update

Modified Mercalli Intensity Scale

(from US Geological Survey )

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

Northern Gateway announces it will not appeal Appeal Court decision that stopped project approval, will continue “consultations”

 

Northern Gateway pipelines says the company will not appeal the Federal Court of Appeal decision that blocked the approval certificate by the Joint Review Panel and the National Energy Board because there had been insufficient consultation with First Nations.

UPDATE  Vancouver Sun reports Federal government will also not appeal decision

OTTAWA — The federal government is joining Enbridge Inc. in not appealing a Federal Court of Appeal ruling quashing a 2014 Conservative decision to approve the $7.9 billion Northern Gateway pipeline, Postmedia has learned.

 

John Carruthers, President of Northern Gateway said in a news release, “We believe that meaningful consultation and collaboration, and not litigation, is the best path forward for everyone involved. We look forward to working with the government and Aboriginal communities in the renewed consultation process.”

Northerngatewayroutemapdec2012w

Northern Gateway news release

VANCOUVER, Sept. 20, 2016 /CNW/ – Northern Gateway will not appeal a recent Federal Court of Appeal decision that reversed the project’s federal approval certificate. The Federal Court of Appeal found that the National Energy Board’s Joint Review Panel recommendation was acceptable and defensible on the facts and the law. The Court, however, concluded that further Crown consultation is required.

Northern Gateway supports the path outlined by the Federal Court of Appeal for the Federal Government to re-engage with directly affected First Nations and Métis communities to ensure thorough consultation on Northern Gateway is undertaken.

Statement from John Carruthers, President, Northern Gateway:

Ray Philpenko
Northern Gateway’s Ray Philpenko gives a presentation on pipeline leak detection to Kitimat Council, Feb. 17. 2014. (Robin Rowland/Northwest Coast Energy News)

“We believe that meaningful consultation and collaboration, and not litigation, is the best path forward for everyone involved. We look forward to working with the government and Aboriginal communities in the renewed consultation process. We believe the government has a responsibility to meet their Constitutional legal obligations to meaningfully consult with First Nation and Métis. It also reflects the first priority of Northern Gateway and the 31 Aboriginal Equity Partners to build meaningful relationships with First Nation and Métis communities and ensure their voice is reflected in the design of the project.

We believe that projects like ours should be built with First Nation and Métis environmental stewardship, ownership, support, and shared control. Northern Gateway, the Aboriginal Equity Partners, and our commercial project proponents remain fully committed to building this critical Canadian infrastructure project while at the same time protecting the environment and the traditional way of life of First Nation and Métis and communities along the project route.

In order to encourage investment and economic development, Canadians need certainty that the government will fully and properly consult with our nation’s Indigenous communities. We look forward to this process and assisting those communities and the Federal Government with this important undertaking in any way we can.

The economic benefits from Northern Gateway to First Nation and Métis communities are unprecedented in Canadian history. As part of the opportunity to share up to 33 percent ownership and control in a major Canadian energy infrastructure project, the project’s Aboriginal Equity Partners will also receive $2 billion in long-term economic, business, and education opportunities for their communities.

The project would add over $300 billion to Canada’s gross domestic product over the next 30 years, 4,000 construction jobs and 1,000 long-term jobs, $98 billion in tax revenue, and an estimated $100 million investment in community programs and services. Northern Gateway will provide a badly needed multibillion dollar private infrastructure investment in Canada’s future.”

Statement from the Aboriginal Equity Partner Stewards (Bruce Dumont, President, Métis Nation British Columbia; David MacPhee, President, Aseniwuche Winewak Nation; Chief Elmer Derrick, Gitxsan Nation Hereditary Chief; Elmer Ghostkeeper, Buffalo Lake Métis Settlement):

“We support Northern Gateway’s decision to not appeal the recent decision by the Federal Court of Appeal. This is a reflection of the commitment to the new partnership we are building together and their support of meeting Constitutional obligations on government to consult.

The Federal government has publically stated they are committed to reconciliation with First Nation and Métis communities. As such, we are now calling on this same government to actively and fully undertake the required consultation as directed by the Federal Court of Appeal in relation to the Northern Gateway project.

The Aboriginal Equity Partners is a unique and historic partnership that establishes a new model for conducting natural resource development on our lands and traditional territories. We are owners of Northern Gateway and are participating in the project as equals.

Environmental protection remains paramount and as stewards of the land and water, and as partners in this project, First Nation and Métis communities have a direct role in the environmental protection of the lands, waters, and food sources along the pipeline corridor and in marine operations. Our traditional knowledge, science, and values will be used to design and operate land and coastal emergency response to make the project better. We believe with this project there is an opportunity to work together with the Federal Government to improve marine safety for all who live, work, and depend on Canada’s western coastal waters.

This ownership ensures environmental stewardship, shared control, and negotiated business and employment benefits. Collectively, our communities stand to benefit from more than $2 billion directly from this Project.

Our communities need the economic and business benefits that Northern Gateway can bring. We are focused on ensuring our communities benefit from this project and are actively involved in its decision making so we can protect both the environment and our traditional way of life through direct environmental stewardship and monitoring.

Our goal is for Northern Gateway to help our young people to have a future where they can stay in their communities with training and work opportunities. We remain committed to Northern Gateway and the opportunities and responsibilities that come with our ownership. We also remain committed to working with our partners to ensure our environment is protected for future generations.”

 

National Geographic maps Haisla and other First Nations’ traditional territory, pipeline routes and BC ‘s wild salmon

The September issue of National Geographic includes a large map of British Columbia it calls “Claiming British Columbia.”

natgeohaisla3
(National Geographic)

The map has three themes: First Nations’ traditional territory, the routes of proposed pipeline projects, both LNG and diluted bitumen, and it features a sub map that looks at what the map calls the “Troubled Salmon” fishery.

The cartographers at National Geographic are being very careful, avoiding such troubling issues as competing land claims among First Nations, unresolved land claims with the federal and provincial governments and treaty status.

natgeohaisla
(National Geographic)
(National Geographic)
(National Geographic)

So by and large the map groups First Nations by language group unless there are definite treaty or reserve boundaries. Large reserves under the Indian Act are on the map, but given the post stamp size of many reserves in British Columbia, those reserves are too small to be seen on the map. Towns and cities are identified as “First Nations” communities which often overlap with settler communities. Again the map misses many smaller communities, so Kitimat is on the map, while Kitamaat Village is not.

(National Geographic)
(National Geographic)

The map identifies Haisla traditional territory as “Xenaksilakala/Xa”islakala” and also includes the Kitlope Heritage Conservancy Protected area.

The article in the September issue is called The Pacific Coast, but unfortunately there is not much of a tie-in with the map, since it concentrates on California and Alaska with only a passing mention of British Columbia.

On the obverse side of the map is the poster that is promoted on the magazine cover, a beautiful painting of “The Changing Pacific Coast” which covers kelp and every creature from phytoplankton and zooplankton all the way to humpback whales and sea gulls (but for some reason no bald eagles). It is likely that poster will be on display in classrooms up and down the coast before school opens next week.

LNG Canada postpones Final Investment Decision

LNG Canada has postponed the Final Investment Decision on the Kitimat project citing the “impact of global industry challenges.”  The latest estimates said that the project would cost $40 billion.

The news release says that despite strong community support and regulatory approval,  what LNG Canada called “the context of global industry challenges, including capital constraints” led to the decision. In other words, the continued low price of oil is constraining projects across the energy industry.

LNG Canada’s Joint Venture Participants Delay Timing of Final
Investment Decision

Impact of global industry challenges, despite strong project fundamentals

Vancouver, British Columbia — Today, LNG Canada announces that its joint venture participants –  Shell, PetroChina, Mitsubishi Corporation and Kogas – have decided to delay a final investment decision on LNG Canada that was planned for end 2016.

LNG Canada remains a promising opportunity – it has strong stakeholder and First Nations’ support, has achieved critical regulatory approvals, has important commercial and engineering contracts in place to design and build the project, and through its pipeline partner Coastal Gas Link, has received necessary environmental approvals and First Nations support along the pipeline right-of-way.

“Our project has benefitted from the overwhelming support of the BC Government, First Nations – in particular the Haisla, and the Kitimat community. We could not have advanced the project thus far without it. I can’t say enough about how valuable this support has been and how important it will be as we look at
a range of options to move the project forward towards a positive FID by the Joint Venture participants,” said Andy Calitz, CEO LNG Canada.

Through their efforts to build a strong LNG sector for Canada, and a critical, cleaner energy alternative for the world, the governments of British Columbia and Canada have developed sound fiscal and regulatory frameworks for success.

LNG-Canada-Media-Release0716However, in the context of global industry challenges, including capital constraints, the LNG Canada Joint Venture participants have determined they need more time prior to taking a final investment decision. At this time, we cannot confirm when this decision will be made.

In the coming weeks, LNG Canada will continue key site preparation activities and work with its joint venture participants, partners, stakeholders and First Nations to define a revised path forward to FID.

LNG Canada Joint Venture Participants are Shell (50%), PetroChina (20%), Mitsubishi Corporation (15%)
and Kogas (15%).

Haisla Nation chief councillor Ellis Ross issued a statement that said:

Haisla Nation Council very firmly believes in the future of liquefied natural gas for the Kitimat Valley and Haisla territory. It is an industry which has the capacity to grow jobs, provide new training opportunities and provide a sustained quality of life for Haisla members. It’s worth remembering that LNG Canada is a relatively new project to the area, and decisions on major projects such as these can take a long time to reach.

Today’s decision was the second time the FID was postponed. Andy Caloz LNG Canada’s CEO was quoted by Bloomberg News as saying that the project hasn’t been canceled. It has all the necessary approvals from regulators in Canada and doesn’t require any more work in the country.

“The whole global LNG industry is in turmoil,” Calitz told a conference call, Bloomberg reported, adding that Western Canada still has advantages including its proximity to customers in Asia. “I’m confident that the Japanese market remains available to LNG Canada.”

NEB indefinitely suspends any consideration of Northern Gateway

The National Energy Board has indefinitely suspended its consideration of the $7.9 billion Northern Gateway pipeline project, including the request by Enbridge to extend the deadline for starting the controversial project. The Joint Review Panel conditions had set December 31, 2016 as the time that Enbridge had to start the project.

In a letter to John Carruthers, president of Northern Gateway Pipelines, Sheri Young, secretary to the Board said that suspension came after the Federal Court of Appeal quashed the permission certificates for the project.

As a result of the decisions quashing the Certificates, the Board is suspending indefinitely its consideration of the application to extend the sunset clauses of the Certificates and is not accepting any further comments on it, including comments from Northern Gateway and AEP. The Board is also suspending indefinitely its consideration of all filings related to the conditions attached to the Certificates.

In May the NEB had told Enbridge that is would consider a request by Enbridge to extend the deadline and accept comments from the public until June 27, 2016 and reply comments from the applicants by July 18, 2016.

Cover of JRP ruling
Cover of Volume 2 of the Joint Review ruling on Northern Gateway

In a decision released on 30 June 2016, the Federal Court of Appeal quashed Order in Council P.C. 2014-809 which is the order directing the Board to issue the Certificates for the Project. The Court also quashed the Certificates.

 

The original Joint Review Panel report in December 2013 had set 209 conditions for the construction and operation of the pipeline, which would have carried oil sands bitumen from Bruderheim, Alberta, to Kitimat, for shipment to Asian customers.


Letter to Northern Gateway-Suspension of the sunset clauses-A5D7Z9
(PDF)

Federal Court of Appeal overturns approval of Northern Gateway

In a two to one decision, the Federal Court of Appeal has overturned the Harper government’s approval of the Enbridge Northern Gateway Pipeline, finding that the federal government’s consultation process  with First Nations on the BC coast that occurred after the NEB decision and the Joint Review Panel Report was inadequate, saying:
federalcourtofappeal

We conclude that Canada offered only a brief, hurried and inadequate opportunity in Phase IV—a critical part of Canada’s consultation framework—to exchange and discuss information and to dialogue. The inadequacies—more than just a handful and more than mere imperfections—left entire subjects of central interest to the affected First Nations, sometimes subjects affecting their subsistence and well-being, entirely ignored.

The dissenting judge found that the federal government under Stephen Harper had adequately consulted the First Nations. The split decision means that one of the parties, either the federal government, Enbridge Northern Gateway or the Canadian Association of Petroleum Producers may seek leave to appeal to the Supreme Court of Canada.

Read the decision
Northern Gateway decision  (PDF)

Other Media
Globe and Mail
Appeal court overturns Ottawa’s approval of Northern Gateway pipeline

CBC
Northern Gateway pipeline approval overturned

BC launching major study of Kitimat River, Kitimat Arm water quality

The Environmental Protection Division of BC’s Ministry of Environment is launching a major study of the water quality in the Kitimat valley, first on the Kitimat River and some of its tributaries and later on the Kitimat Arm of Douglas Channel.

There has been no regular sampling by the province in Kitimat since 1995 (while other organizations such as the District of Kitimat have been sampling).

Jessica Penno, from the regional operations branch in Smithers, held a meeting for stakeholders at Riverlodge on Monday night. Among those attending the meeting were representatives of the District of Kitimat, the Haisla Nation Council, LNG Canada, Kitimat LNG, Rio Tinto BC Operations, Douglas Channel Watch, Kitimat Valley Naturalists and the Steelhead Society.

As the project ramps up during the spring and summer, the ministry will be looking for volunteers to take water samples to assist the study. The volunteers will be trained to take the samples and monitored to insure “sample integrity.” Penno also asked the District, the Haisla and the industries in the valley to collect extra samples for the provincial study and to  consider sharing historical data for the study.

With the growing possibility of new industrial development in the Kitimat valley, monitoring water quality is a “high priority” for the province, Penno told the meeting. However, so far, there is no money targeted specifically for the project, she said.

Fishing and camping on the Kitimat River
Camping and fishing on the Kitimat River. (Robin Rowland/Northwest Coast Energy News)

The purpose of the study is to make sure water in the Kitimat valley meet the provinces water quality objectives, which have the aim of watching for degradation of water quality, upgrade existing water quality or protect for designated uses such as drinking water, wildlife use, recreational use and industrial water supplies as well as protecting the most sensitive areas. It also provides a baseline for current and future environmental assessment. (In most cases, testing water quality for drinking water is the responsibility of the municipalities, Penno said.  The province may warn a municipality if it detects potential problems, for example if a landslide increases metal content in a stream).

Under the BC Environment system, “water quality guidelines” are generic, while “water quality objectives” are site specific.

One of the aims is to compile all the studies done of the Kitimat River estuary by the various environmental impact studies done by industrial proponents.

The ministry would then create a monitoring program that could be effectively shared with all stakeholders.

At one point one member of the audience said he was “somewhat mystified” at the role of Fisheries and Oceans in any monitoring, noting that “when you phone them, nobody answers.”

“You mean, you too?” one of the BC officials quipped as the room laughed.

Water quality objectives

The last time water quality objectives were identified for the Kitimat River and arm were in the late 1980s, Penno told the meeting. The objectives were developed by the British Columbia government because of potential conflict between fisheries and industry at that time. The objectives were developed for the last ten kilometres of the Kitimat River and the immediate area around the estuary and the Kitimat Arm. “The Kitimat is one of the most heavily sport fished rivers in Canada,” she said.

However, the work at that time was only provisional and there was not enough water quality monitoring to create objectives that could be approved by the assistant deputy minister.

There has been no monitoring of the Kitimat River by BC Environment since 1995. “We’ve had a lot of changes in the Kitimat region, with the closure of Methanex and Eurocan, the modernization of Rio Tinto and potential LNG facilities.”

The main designated uses for the Kitimat River at that time were aquatic life, wildlife with secondary use for fishing and recreation.

She said she wants the stakeholders to identify areas that should be monitored at first on the river and the tributaries. Later in the summer, Environment BC will ask for suggestions for the estuaries of the Upper Kitimat Arm.

Participants expressed concern that the water supply to Kitamaat Village and the Kitimat LNG site at Bish Cove as well as Hirsch Creek and other tributaries should be included in the study. Penno replied that the purpose of the meeting was to identify “intimate local knowledge” to help the study proceed.

After a decade so of cuts, the government has “only so much capacity,” Penno said, which is why the study needs the help of both Kitimat residents and industry to both design the study and to do some of the sampling.

The original sampling station in the 1980s was at the Haisla Boulevard Bridge in Kitimat. A new sampling station has been added at the “orange” Kitimat River bridge on Highway 37. There is also regular sampling and monitoring at Hirsch Creek. The aim is to add new sampling points at both upstream and downstream from discharge points on the river.

The people at the meeting emphasized the program should take into consideration the Kitimat River and all its tributaries—if budget permits.

Spring freshette

Last year, the team collected five samples in thirty days in during four weeks in May and the first week in June, “catching the rising river quite perfectly” at previously established locations, at the Haisla Bridge and upstream and downstream from the old Eurocan site as well as the new “orange bridge” on the Kitimat River.

The plan calls for five samples in thirty days during the spring freshette and the fall rain and monthly sampling in between.

The stakeholders in the meeting told the enviroment staff that the Kitimat Valley has two spring freshettes, the first in March during the valley melt and later in May during the high mountain melt.

The plan calls for continued discussions with the industry stakeholders, Kitimat residents and the Haisla Nation.

The staff also wants the industrial stakeholders to provide data to the province, some of it going back to the founding of Kitimat if a way can be found to make sure all the data is compatible. One of the industry representatives pointed out, however, that sometimes data is the hands of contractors and the hiring company may not have full control over that data.

There will be another public meeting in the summer, once plans for sampling in the Kitimat Arm are ready.

Prepare now for drastic climate change, UBC study warns First Nations’ fishery, other stakeholders

Fewer salmon; many more sardines.

That’s one of the predictions from a new study from the University of British Columbia, looking at the future of the fishery on the coast.

The study concentrates on the First Nations fishery and warns that aboriginal people could face a catastrophic decline in the harvest of traditional species, especially salmon and herring roe on kelp over the next thirty years, a decline that will also have an equally devastating effect on commercial and recreational fishing.

The main cause of the decline is climate change and the warming of the coastal waters. The study projected “modest to severe declines in catch potential” for all current commercial fisheries along the coast.

The study says that for the First Nations the between $28 million to $36 million in revenue they got from fishing between 2001 and 2010 could fall by up to 90 per cent depending on how the climate changes.

A chart from the UBC study shows possible decline in fish species under different climate scenarios. (PLOS1)
A chart from the UBC study shows possible decline in fish species under different climate scenarios. (PLOS1)

One scenario calls for a decline of up to 40 per cent in chinook and pink salmon.

If there is any good news, if you can call it that, the decline will be not as bad in northern coastal waters as it will be the warmer waters near the Lower Mainland and southern Vancouver Island. The range of some species, including salmon, herring, halibut and possibly oolichan will move to farther north along the BC Coast and into Alaskan waters.

That means in time the warming waters will also encourage an increase in other species, including sardines and some clams.

The changing oceans mean that “an increase in the relative abundance of warmer-water species was projected to lead to new or increased opportunities for commercial harvests by 2050.”

The study is urging the First Nations and other stakeholders in the British Columbia fishery to start long term planning immediately to  anticipate changes in the coming decades.

The team of scientists led by Lauren Weatherdon, a graduate student at UBC, noted that while previous studies have looked at the impact of climate change on large-scale commercial fisheries, “few efforts have been made to quantitatively project impacts on small-scale subsistence and commercial fisheries that are economically, socially and culturally important to many coastal communities.”

The study Projected Scenarios for Coastal First Nations’ Fisheries Catch Potential under Climate Change: Management Challenges and Opportunities is published in the online journal PLOS One

The study was conducted in cooperation with the BC First Nations Fisheries Council and looked its seven coastal administrative regions “forming a sample of groups with diverse marine resources, geographical locations, territorial sizes, and treaty statuses.”

Within those regions 16 First Nations participated in the study, some under their treaty councils, including the Council of the Haida Nation, the Tsimshian Nations Treaty Society (including the Gitga’at at Hartley Bay and the Kitselas and Kitsumkalum near Terrace) and the Maa-nulth First Nations. The Heiltsuk First Nation at Bella Bella participated as an independent group.

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The FNFC’s administrative regions intersect with five distinct ecological regions: the North Coast, comprising the Hecate Strait and Dixon Entrance; Haida Gwaii, which includes the waters surrounding the islands; the Central Coast, including Queen Charlotte Sound, Queen Charlotte Strait, and the southern tip of Hecate Strait; the Strait of Georgia; and the west coast of Vancouver Island (WCVI) .

The study says First Nations are likely to be exposed to different climate-related impacts on fisheries due to the differing ecological and biogeographical characteristics of these regions and to differing traditional and commercial harvests.

The study used a “dynamic bioclimate envelope” computer model to look at the changes to the distribution and relative abundances of the BC coastal species under two climate change scenarios, a high greenhouse gas model where society can’t curb emissions and a low greenhouse gas emission scenarios, depending on how society is able to curb the increase.

The study looked at ocean properties—including sea surface temperature, sea bottom temperature, salinity, oxygen concentration, surface action, and net primary production—using data from the US National Ocean and Atmospheric Administrations’  climate-related earth system model.

Climate change will mean that current species on the BC coast will “shift polewards.”

The study showed that by 2050, there could be declines in 87 of the 98 species in the study.

Greater losses in  what the study calls “species richness” is likely to occur towards the southern coast of British Columbia, falling primarily between 48°N and 51°N. But, overall,  species richness along coastal BC will continue—only with different species.

Most significantly the study projects a decline in the overall salmon catch from 17.1 per cent to 29.2 per cent, depending on the region and climate.

All aspects of the herring fishery, including roe herring, spawn-on-kelp, and the food and bait fishery could decline between 28.1 per cent and 49.2 per cent depending on the region.

The future of the oolichan is the most uncertain. One of the models studied projected a further 37.1 per cent decline in the oolichan, while other models called for for a decline between 5 per cent and 6.8 per cent. That will depend on how well, the oolichan already threatened in most regions of British Columbia are able to adapt to warmer waters or find a way to move their range northward.

The study says white sturgeon and Pacific sardines were projected to increase in abundance under both climate change scenarios, while manila clams were projected to increase in abundance by 14.5 per cent in one of the models. The eight remaining species showed little change.

The study suggests that the southern territories (Tsawwassen, Tla’amin, and Maa-nulth First Nations) will likely see a reduction in catch potential between -15.2 per cent and -27.8 per cent depending on how the climate changes.

On the north coast. The Haida and Tsimshian First Nations and those situated along the central or north-eastern coasts of Vancouver Island (Heiltsuk and ‘Namgis First Nations)  would likely see smaller reductions in relative catch for each territory, with estimates falling between -3.2 per cent and -8.2 per cent.

The study shows that for the First Nations along the North and Central Coasts of British Columbia (Gitga’at and Haida, and Heiltsuk and ‘Namgis) there will be neutral or positive shifts in catch potential for white sturgeon, kelp greenling, and two species of perch under both scenarios.

While varying regionally, both scenarios also suggested either a slight cumulative decline or negligible change in catch potential for clams, rockfish, lingcod, and sculpins across the North and Central Coast.

One potential problem the study suggests is that fishers in southern British Columbia may, in the future, try to move north to follow the harvest, leading to potential conflicts.  The cost of travel, may, however, discourage that.

One of the recommendations from the study is that First Nations revive the traditional clam gardens.

Traditional clam beds serve as an ideal example of a method that could be applied to offset climatic impacts through internalized mechanisms, using local cultivation to generate increased productivity by enhancing native habitat rather than redirecting extraction efforts towards other regions or species. Clam gardens constructed in a manner akin to those situated near ancient settlements of the Northern Coast Salish and Laich-kwil-tach First Nations have been found to generate higher clam densities, biomass, and growth rates than non-walled beaches . These benefits were observed for Pacific littleneck clams and butter clams , two clams that are of cultural, economic, and ecological importance to the region Reinstating clam beds in First Nations’ territorial lands has been suggested as a means of simultaneously achieving local conservation and cultural objectives and may thereby provide a politically and ecologically viable option for mitigating climate-related impacts.

The most important recommendation is that the First Nations and other stakeholders start cooperating immediately to offset how the changing climate with affect the fishery:

Management of salmon and herring stocks has been highly contentious due to the myriad of stakeholders who depend upon them, which include First Nations, recreational fisheries, and commercial fisheries….

Aside from fulfilling societal needs, salmon serve as key ecological components of the Pacific Northwest Coast, functioning as the mechanisms by which nutrients are transferred from the ocean to freshwater and terrestrial ecosystems

It says the projections show that a “redistribution of fishing effort” will not “fully offset declines in salmon and herring”

attaining a state of collaboration between First Nations, DFO, and other sectors has the potential to yield beneficial ecological and political results, if implemented correctly. Parallels exist between First Nations’ traditional fisheries management approaches and “modern” approaches (e.g., spatial management, mariculture, selective fishing, fishing closures), with differences arising primarily due to diverging worldviews.

It recommends local application of First Nations’ traditional management strategies to “provide opportunities to collaboratively engage in adaptive ecosystem-based management and to coordinate efforts to attain conservation objectives.”

They give an example of how the Nisga’a Nation have ensured their equal partnership in management by employing traditional fish wheel technology to monitor and assess stocks and by leveraging traditional ecosystem-based management practices that could be applied to plan long-term objectives and management approaches.

It concludes by saying that joint-management will not only work to reduce the impact of climate change but also head off potential conflict.

Through such joint-management regimes, traditional fisheries management strategies could be applied to advance localized research directives and to reduce impacts on stocks under unprecedented environmental change. Moreover, the risk of conflict over declining resources underlines the need to establish common and equitable ground to ensure successful joint management of fisheries, and to leverage collective expertise.

Chart from the study showing which fish species will move north up the coast as the climate changes. (PLOS1)
Chart from the study showing which fish species will move north up the coast as the climate changes. (PLOS1)

BC Supreme Court rules province failed to consult First Nations on Northern Gateway

The B.C. government acted improperly and “breached the honour of the crown” when it signed away a provincial review and gave the federal Joint Review Panel for responsibility for assessing the environmental impact of the proposed Northern Gateway pipeline, Madam Justice Marvyn Koenigsberg of the Supreme Court of B.C. ruled Wednesday.

In a largely technical decision,  Justice Koenigsberg ruled that British Columbia must come to its own decision on Northern Gateway. That’s because what is called the “equivalency agreement” that handed the decision over to the federal agency was not “was reasonable or correct for the Province to exercise its discretion.”

She ruled the equivalency agreement “is invalid” and said the project cannot begin until a provincial environmental assessment certificate has been issued.

“The province is required to consult with the Gitga’at about the potential impacts of the project on areas of provincial jurisdiction and about how those impacts may affect the Gitga’at’s aboriginal rights, and how those impacts are to be addressed in a manner consistent with the honour of the Crown and reconciliation,” Koenigsberg ruled.

Read the judgement (pdf)

Justice_Koenigsberg_Coastal-First-Nations-v-British-Columbia-Environment

That may be the final nail in the Northern Gateway’s coffin. The province opposed the project at the JRP because the Northern Gateway had not met the five conditions for heavy oil transport that was set down by the government.

The court ruling comes shortly after British Columbia told the National Energy Board that it also opposed the $6.8-billion Kinder Morgan TransMountain pipeline because, at this point, that project cannot meet BC’s five conditions.

B.C. Justice Minister Suzanne Anton said the province is reviewing the Supreme Court decision.

There are 19 more court challenges to the Northern Gateway and to the Joint Review process, most  before the Federal Court of Canada.

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The Gitga’at First Nation and Coastal First Nations which brought the suit in January 2015 say that the ruling means Enbridge pipeline must now face provincial environmental assessment decision, which includes consultation with First Nations across the province.

“Approval of the project falls within federal jurisdiction and this decision from the B.C. Supreme Court does not change that approval or the project’s environmental assessment,” said Ivan Giesbrecht, communication manager for Northern Gateway, in a statement to the CBC.

Northern Gateway says the federal decision stands, and its still working to meet the 209 conditions set out by the NEB, along with the B.C. government’s conditions.

“Northern Gateway and the project proponents, including Aboriginal Equity Partners, remain committed to this essential Canadian infrastructure,” Giesbrecht told the CBC.

But among the 209 conditions attached to the approval by the  Joint Review Panel  Condition 2 said that construction must begin before December 31, 2016.  Under Conditions 20 and 21, Enbridge must have secured commitments for at least 60 per cent of the pipeline’s capacity at least six months before starting construction.

Enbridge still doesn’t have any customers and with the world price of oil below $40 US a barrel, the chances of getting customers are slim.  In its most recent NEB filing on December 21, 2015, Enbridge stated, “Further to its filing of June 29, 2015, Northern Gateway has not executed firm [transportation service agreements] with its prospective shippers.”

Koenigsberg ‘s ruling doesn’t official stop the Northern Gateway as some are celebrating.  Rather the decision means that  British Columbia must  set up its own review process and then come to a decision.  That decision could, in theory, approve Northern Gateway with  conditions just as the Joint Review Panel did.

The news release from the Coastal First Nations goes on to say:

The ruling, which is a major victory for the Gitga’at First Nation, means the equivalency agreement is invalid, that the government must now make its own environmental assessment decision regarding the Enbridge Northern Gateway pipeline, and that it must consult with and accommodate First Nations along the pipeline route about potential impacts to their Aboriginal rights and title.

“This is a huge victory that affirms the provincial government’s duty to consult with and accommodate First Nations and to exercise its decision-making power on major pipeline projects,” said Arnold Clifton, Chief Councillor of the Gitga’at First Nation.

“This ruling is an important victory for our communities and presents another hurdle to the Enbridge Northern Gateway pipeline,” said Chief Marilyn Slett, President of the Coastal First Nations. “It means the province must now sit down with First Nation communities across BC and find ways to address the severe and irreversible impacts of this project.”

The constitutional challenge was brought by the Gitga’at First Nation and the Coastal First Nations, and was argued by Joseph Arvay, Q.C., (and his colleagues Catherine Boies Parker and Tim Dickson at Farris LLP ) one of Canada’s pre-eminent constitutional lawyers and an expert in Aboriginal and administrative law.

“The province has been talking a lot about its opposition to oil pipelines in recent days,” said Art Sterritt, a member of the Gitga’at First Nation. “Now it must put its money where its mouth is and apply the same rigorous standards it advocated for during the Joint Review Panel process, while consulting with every single First Nation who would be affected by this project. We’ve said it before: The Enbridge Northern Gateway pipeline is dead.”

The ruling means that, until the province makes a decision on the Enbridge Northern Gateway pipeline and issues an Environmental Assessment Certificate, none of the approximately 60 permits, licenses and authorizations necessary for the project to proceed can be issued.

LNG Canada Kitimat project receives BC facility permit

LNG Canada logoThe Shell-led LNG Canada project in Kitimat has received a facility permit from the B.C. Oil and Gas Commission (OGC), the company said Tuesday.

A news release from LNG Canada says the permit is  one of the key permits required for the construction and operation of the proposed LNG Canada project.

LNG Canada is the first LNG project in British Columbia to receive this permit, which focuses on public and environmental safety, and specifies the requirements the project must comply with when designing, constructing and operating the proposed LNG export facility in Kitimat.

The news release warns “that while today’s announcement is an important step forward for LNG Canada, the project must ensure it is economically viable and meets several other significant milestones including finalizing engineering and cost estimates, supply of labour, and achieving other critical regulatory approvals before making a final investment decision.”

That means that Shell and its partners are still keeping a close eye on factors such as the continuing collapse of the price of oil on world markets,  the volatile natural gas market in Asia and the slowdown in the economy in China.

The news release goes on to  say:

“We have made excellent progress in the past two years, achieving a number of critical milestones,” said Andy Calitz, CEO of LNG Canada. “Receiving our LNG Facility Permit could not have been achieved without the important input we received from the Haisla Nation and the local community of Kitimat. We continue to progress our project and appreciate the ongoing support from First Nations, the local community and other stakeholders.”

“The OGC identified several conditions that must be met by LNG Canada to design, construct and operate the project,” says Calitz. “We have reviewed these conditions and are confident that we will meet these conditions as they are aligned with LNG Canada’s core safety values and commitment to protect the environment, the community and our workers.”

LNG Canada continues to develop a number of important plans to address public safety and minimize the effects on the environment and local community. For example, LNG Canada is working closely with local emergency response organizations, as well as leading safety experts, in the development of an emergency response framework for the proposed project.

“Safety is our first priority. Safety as it relates to people and the environment is embedded into the design and planning of our proposed facility, and will carry into the construction and operation phases of our project should the project go ahead,” said Andy Calitz.

Social and economic benefits from the LNG Canada project include local employment and procurement opportunities, federal, provincial and municipal government revenue and community investments. Since 2012, LNG Canada has distributed more than $1 million to community initiatives, such as emergency services, trades scholarships and community services. LNG Canada has also contributed more than $1.5 million in programs to build awareness and help provide training for trades careers in all industries, and particularly the emerging LNG industry.

LNG Canada is a joint venture company comprised of Shell Canada Energy (50%), an affiliate of Royal Dutch Shell plc, and affiliates of PetroChina (20%), Korea Gas Corporation (15%) and Mitsubishi Corporation (15%). The joint venture is proposing to build an LNG export facility in Kitimat that initially consists of two LNG processing units referred to as “trains,” each with the capacity to produce 6.5 million tonnes per annum of LNG annually, with an option to expand the project in the future to four trains.