Tag: coast

Douglas Channel in Black and White

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The long, magnificent fjord known as Douglas Channel was carved by a glacier thousands of years ago, some of the islands are rock uplifted by tectonic forces, others piled up by retreating glaciers.

So far, since I returned to Kitimat, I have had few chances to “go down the Channel,”  as the people of Kitimat say.

Of course, when I do go,  I always have a camera with me, even in the roughest weather–and the Channel can be rough most of the year.

It is in these waters that the energy industry, both the Enbridge Northern Gateway and the Liquefied Natural Gas projects want to use supertankers to send their products to markets in Asia. Many of the photographers who come to Douglas Channel in high summer choose to capture the brilliant colours of ocean, forest and mountain, as I have on several assignments.

For this gallery, I have chosen to use black and white to show the stark beauty of the mountains, the often menacing seas and the clouds, ever changing, as the westerly winds from the Pacific drive those clouds against the mountains.

Images from this gallery are available for purchase for personal, editorial and commercial  use on Photoshelter. Simply click on the image above.

US calls for study that could relax double-hulled oil tanker regulations, citing costs to build, energy consumption

The United States Department of Transportation Maritime Administration has issued a call for a study that is calling into question the future of double-hulled oil tankers.

On August 6, 2012 the Maritime Administration, also known as MARAD, issued a “solicitation” for a study on the Safety, Economic and, Environmental Issues of Double Hulls.

In the call for the study, MARAD says:

Following the Exxon Valdez disaster, the passing of the Oil Pollution Act of 1990 (OPA 90) led to the requirement to replace single hull petroleum tankers with double hull tank vessels sailing in U.S. waters. This requirement was soon adopted by the International Maritime Organization (IMO) and became a worldwide regulation. This means that, today, tank vessels worldwide are carrying thousands of extra tons of steel in order to meet the double hull requirements.

Though these double hulls reduce the threat of oil pollution as a result of grounding, they significantly increase the amount of energy needed to propel a vessel and increase the amount of air pollution into the atmosphere. As a result, the maritime industry’s carbon footprint and criteria pollutant emissions are increased.
In addition to the need to burn more fuel, it is acknowledged that double hulls can cause several other problems which will be detailed in this study.

Here in Canada, Enbridge Northern Gateway and its supporters, in briefings on maritime and tanker safety on the west coast of British Columbia, have always said that the changes following the Exxon Valdez disaster in Prince William Sound and the subsequent US Oil Pollution Act as almost guaranteeing that such a disaster could not happen again.

Now it appears that some people in the U.S. Department of Transportation may be worried that increased use of double-hulled tankers will cost too much. There’s also the apparent question of balancing the carbon footprint of increased emissions from tankers with the danger from a hydrocarbon spill.

The request for the study was covered by tanker industry sites such as Marine Link but only surfaced in major media on Sunday, when The National, an English-language newspaper in Abu Dhabi broke the story, “US maritime agency considers overhaul of oil-spill regulation”

Reporter David Black notes:

In July last year, the IMO adopted binding regulations to limit the expected gas emissions increase by reducing fuel consumption of ships by as much as 15 million tonnes in 2020, a 14 per cent reduction, and by 2050, by as much as 1,013 million tonnes. This will lead to savings in fuel costs for the shipping industry of up to US$200 billion a year, says the IMO.

Black says that the US agency seems “to suggest by abandoning the additional weight of double hulls the savings would increase and pollution be cut further, adding “On the other hand, since the introduction of double hulls, pollution from major oil spills has been reduced to practically zero.”

The National story says even the tanker industry itself is worried about the move, quoting the the international tanker owners’ organization.

“We have noted reports about Marad’s intended study on tanker double hulls but, except for what we gather from press articles, we have little knowledge on the reasoning behind this,” said Bill Box, Intertanko’s senior manager for external relations.
“From our members’ experience, double-hull designs have evolved into safe and reliable ships with an excellent safety and pollution prevention record. We might provide comments when such a study would be released by Marad.”

 

The requirements for the double-hull study, as posted by the US government are:

1. The Contractor shall conduct an assessment of the history in the evolvement of “The Double Hull Rules”.

2. The Contractor shall conduct the assessment of any rules that are being proposed in bodies such as the IMO, U.S. Congress and other such bodies’ worldwide as they relate to additional hulls for environmental reasons.

3. The Contractor shall assess all the relevant safety issues related to double hulls for each class of vessel. E.g. Double bottoms are difficult and expensive to maintain and can result in corrosion problems. Unchecked corrosion in older double hull vessels can lead to cargo leakage into a double bottom and the buildup of dangerous vapor which could cause an explosion under certain conditions. The Contractor will obtain data from appropriate organizations which details the issues in double bottoms on older vessels including cracking, leakage, and the potential for vapor buildup.

4. The contractor shall conduct a complete economic study of the consequences of Double Hulls. E.g. they significantly add to the construction cost of vessels. They result in the loss of cargo space which also adds to the carbon footprint since an additional vessel(s) is needed to carry the same cargo tonnage.

5. The contractor shall assess the complete consequences of the carbon footprint of designing, constructing, maintaining and operating vessels with double hulls. E.g. Apart from the extra propulsive forces and fuel needed, the carbon footprint of double hull maintenance is substantially increased.

6. The Contractor shall prepare a report on the results of the project. The report shall be grammatically correct and must be professionally written to a high level of competence in the English language. The report must clearly specify the safety, economic and environmental issues details above.

 

Rolling Stone discovers Northern Gateway controversy, but gets lost on the way to Kitimat

Rolling Stone article on Canadian pipelines
A screen grab of the Rolling Stone article on the Canadian Northern Gateway and Keystone pipelines.

It’s every muscian’s dream to make it On the Cover of the Rolling Stone. (And when Rolling Stone does investigative journalism, every politician’s nightmare).

Now the venerable, storied music mag has discovered the Northern Gateway pipeline, running a story on August 2 on its website and slated to appear in the next dead tree issue on August 16.

The article by Jeff Goodell is a sort of a primer for hip but not yet clued in Americans on the controversies over Canadian pipelines. It features the usual nasty depiction of the bitumen sands with a file photo from the Washington Post via Getty.

But does Kitimat rate a mention in the magazine that has celebrated the Beatles, the Beach Boys, the (original and real) Rolling Stones, Bob Dylan, the Police, Nirvana, Justin Bieber and The Sheepdogs?

Nope.  Imagine that, an entire article on the Northern Gateway Pipeline and not one mention of Kitimat. Instead Goddell says:

Canada is pushing for a new route called the Northern Gateway, which would cut through three major watersheds in western Canada and turn the fragile coast of British Columbia into a bustling tanker port.

 

In one way Kitimat is in good company, for when the band that originated the “Cover” song, Dr. Hook & the Medicine Show, did make Rolling Stone, the magazine cover had “What’s-Their-Names Make the Cover.”

It’s one thing not to get any respect for Kitimat from the Alberta media, but at least Albertans spell Kitimat right (most of the time–although sometimes they get Kitamaat Village wrong). Here in the northwest we’re used to being dissed by Albertans.

Of course, while the entire coast is endangered by increased traffic in supertankers, it’s Kitimat that is the perhaps maybe, perhaps sometime, perhaps inevitable, perhaps never “bustling tanker port.”

So what could Kitimat do  to make it up from being ignored on the back pages of Rolling Stone to make it to the famous and proverbial cover?

My first idea was a vision of the District of Kitimat Council forming themselves into a rock band.

Joanne and the……  you can come up with an idea for a name, but I am not sure that would work.

Or maybe if we had a Justin Bieber concert at Riverlodge? That might keep young people from leaving Kitimat at least for a while.

Seriously. We’ve been ignored by Rolling Stone up until now. Now we’re that close to being   equal to What’s-Their-Names.

Maybe Kitimat can change that.

So now the people of Kitimat have a new challenge, beyond dealing with Enbridge, the JRP, the province and the feds,  beyond spending those long months clearing snow and those brief summer days of fishing, and that challenge is: get Kitimat on the cover of the Rolling Stone.

 

BC’s desire for “world leading” marine standards collides with Harper’s C-38 chain saw massacre

Today BC Premier Christy Clark’s government outlined a series of “world leading” standards for environmental protection on the ocean and on land, if pipeline projects like the Northern Gateway and the Kinder Morgan expansion are to go ahead.

One has to wonder what Premier Clark told Prime Minister Stephen Harper when she gave him the “heads up” call on the new policy last week?

After all, the BC Liberal’s call for “world leading” standards comes just weeks after the Harper’s government, in Bill C-38, changed environmental assessment into a pro-industry process, gutted the Fisheries Act protection for habitat and severely cut back the Department of Fisheries and Oceans and Environment Canada.

So far, in the province of British Columbia, with both the governing Liberals and opposition New Democrats have been spectacularly unsuccessful in persuading the Harper government to reverse the closure of the Kitsilano Coast Guard station.

In the background paper released along with the news release on the five conditions for pipeline and tanker safety, the BC government is calling for greatly enhanced Coast Guard resources and tanker monitoring as well as payment for oil spill response.

Among the conditions for marine safety enhancement BC is asking:

  • Current response times and planning capacity are less stringent than other jurisdictions like Alaska and Norway. For example, for the types of tankers being proposed for Canada’s west coast, Alaska requires planning for 300,000 barrels. In Canada, response organizations are only required to maintain response plans for spills up to approximately 70,000 barrels (10,000 tonnes). Further, Alaska allows responders 72 hours to reach the spill site, while Canada allows 72 hours plus travel time, which can sometimes add days to the response.
  • In shared bodies of water, the United States’ requirements exceed Canada’s. For example, the United States requires escort tugs for laden tankers and mandates industry pay for designated and strategically placed emergency response tugs. Canada does not have any similar requirements.
  • Ensure the Canadian Coast Guard adopts a unified command/incident command structure.
  • The Canadian Coast Guard has a unique response system which is only used in B.C. The United States, companies and governments worldwide use a unified command/incident command response structure for a range of emergency responses, including marine spills. By bringing the Coast Guard under this system, an effective, co-ordinated response is better ensured while reducing layers of approvals that can delay critical, prompt decision-making.

At Enbridge community briefings in Kitimat last year, the company’s own marine experts said that the 72 hour  response time from Vancouver and Victoria for a possible spill in the Douglas Channel was completely inadequate. In its fillings with the Joint Review Panel, Enbridge has proposed setting up and funding its own response stations along the BC coast, although so far, Enbridge has not provided any details on how the response stations would be set up and how they would work.

In 2010, the auditor general reported that Transport Canada and the Canadian Coast Guard have not used a consistent or systematic approach to tanker traffic and spills nor are there formal processes for ensuring that risks are reassessed.

Sheila Fraser found that

  • Procedures are not in place to verify the Canadian Coast Guard’s readiness. In other words, there is currently no process for providing assurance that the federal component of the oil spill response system is ready to respond effectively.
  • The Coast Guard had not conducted a comprehensive assessment of its response capacity since 2000.
  • The results of the Coast Guard’s response efforts—which range from identifying the source of pollution to full cleanup—are poorly documented. There are also limitations with the Coast Guard’s system for tracking oil spills and other marine pollution incidents. These gaps affect its ability to conduct reliable analysis of trends in spills and know how well it is achieving its objectives of minimizing the environmental, economic, and public safety impacts of marine pollution incidents.

In the United States Senate, Canadian Coast Guard response for an oil spill in the Strait of Juan de Fuaca  was described as “call the Americans”

For some search and rescue missions the federal government has indicated that it will rely more on the all-volunteer Royal Canadian Marine Search and Rescue service (formerly the Coast Guard Auxiliary) which is already stretched thin in some areas of the Pacific Coast, rather than the full time professionals from the Coast Guard service itself.

On the industry response, BC says

The federal government should review its rules and requirements to ensure industry-funded response funds are sustainable and adequate to fully cover a major response without requiring public money. Currently, the total amount of ship owner insurance and industry funding available for spill response is $1.3 billion. By comparison, the U.S. federal government maintains a spill fund that is forecast to grow to nearly $4 billion by 2016.

Again given the government backs and the Conservative government’s close ties with the energy industry, one has to wonder what if those provisions can be enforced, especially since more and more of the energy industry in Canada is owned off shore, increasingly in China with its sorry environmental record. (Globe and Mail CNOOC’s Nexen bid: A new test for Harper)

If there are to be “world-leading” standards for environmental protection in this country, it has to be paid for. So the question remains, who will pay for it? The federal government is cutting back, Alberta doesn’t want to raise the relatively small royalties it charges the energy industry and Canada is not likely to get a contribution from China.

Who pays to protect the coast and the northern interior going to be a big question for Stephen Harper in the coming months. With the polls showing Adrian Dix and the NDP leading in contention for a provincial election next year, and now with Christy Clark, apparently, demanding higher standards, will Harper open the Ottawa wallet now, will he wait until he faces a much tougher BC premier in Adrian Dix next year, or will he stubbornly hold his course of forcing Canada into his vision of a conservative, limited government nation, with, in the case of an oil spill on land or sea, that will cost the federal treasury billions, even if the energy industry picks up some of the tab?

 

Auditor General 2010 Report (pdf)

Auditor General 2007 report  (pdf)

 

 

 

 

 

 

 

Enbridge pipeline controversy now on both coasts, Maine residents object to plan to send bitumen to Portland

It didn’t take long for the plans to send bitumen eastbound, perhaps as an alternative to Kitimat, to start controversy. The bitumen would go through the Montreal-Portland pipeline, thus the terminal could be at Portland, Maine.

The Maine coast is likely even more delicate than the British Columbia coast, and environmental groups are already gearing up to fight the pipeline as reported in the Kennebec (Maine) Journal, in tomorrow’s edition, June 21, 2012.

Tar sands oil transit meets objections

As speculation grows about the possibility of tar sands oil flowing from Canada through Maine, environmental advocates are banding together to oppose what they see as a risky proposition.

On Tuesday at Portland City Hall, [fisher Brooke] Hidell joined representatives from the Natural Resources Council of Maine, the Natural Resources Defense Council and the local chapter of the Sierra Club to protest what they say is a growing threat to Maine’s quality of life.

Enbridge Corp., a major petroleum company in Canada, has applied for a permit to reverse the flow of oil between Ontario and Montreal. Dylan Voorhees of the Natural Resources Council of Maine and others predict a similar reversal of the Portland-Montreal Pipe Line, so Canadian oil could be loaded onto tankers in Casco Bay, then shipped to refineries.

Voorhees said that would provide no real benefits to Maine but would threaten the environment while increasing profits for oil companies.

If Enbridge thinks the fight in British Columbia was a headache, it is likely that any plan to use Maine as a conduit for bitumen, will be as equal, if not more controversial.

The area is often home to prominent members of the American establishment.  The Bush family compound, summer retreat for presidents George W and George H. W. Bush, is in nearby Kennebunkport.

The state is also home to a large, vibrant and vocal artistic community.

Editor’s note:  Thirty years ago, in 1983, I took an Outward Bound course on the coast of Maine at the Hurricane Island School (it has since closed).  Unlike the rugged islands of the coast of British Columbia, the offshore islands where I sailed in Maine, are considered environmentally delicate and there are restrictions on the number of visitors and use of the island.

 

 

Kitimat gets ready for Joint Review hearings, protest rally and visit by NDP federal caucus

Kitimat is getting ready for the next round of Joint Review hearings in the district on the Enbridge Northern Gateway project.

The JRP is scheduled to hold the ten minute comment hearings at the Haisla Recreation Centre on the afternoon of June 25 and 26. The hearings scheduled for June 27 have been cancelled because, the JPR says: “The number of registered participants does not require the hearing session on 27 June.”  As with other locations, it appears that many people are dropping out of the hearings because given Prime Minister Stephen Harper’s determination to push through the pipeline no matter what and they feel their voices will not matter.

On Monday night, June 18, the District of Kitimat Council approved a request from Douglas Channel Watch for a protest rally to be held Sunday, June 24, at 2 p.m. in the lower parking lot at City Centre Mall. The application to the council said that a number of speakers will also address the issue of the government’s omnibus Bill C-38.

Margaret Ouwehand of Douglas Channel Watch, also noted in her application, “we wish to have a short march where participants would walk on sidewalks and obey all traffic signals.” In the report on the application, District staff noted that under the BC Municipal Code, a march of more than 30 people is considered a parade and in the case of Kitimat would also require the permssion of the local RCMP. The protest rally is being heavily promoted on Twitter and Facebook as well as more traditional media, so it is likely that there will be more than 30 people participating in the rally and march.

At the same time, some members of the federal NDP caucus will be in Kitimat for the second day of the hearings. A release from the NDP says Deputy Leader and Environment Critic Megan Leslie will lead the delegation to the northwest.

“Our caucus feels so strongly about the risks of Enbridge that many MPs are joining Megan to stand up to heavy-handed Conservative tactics,” said Skeena-Bulkley MP and House Leader Nathan Cullen. “The government has gutted environmental assessments and is trying to ram this project through and we’re not going to let that happen.”

The NDP Enbridge tour begins on Monday, June 25 with events and a public forum in Vancouver, a clear attempt to gain major media attention there, especially in an era where budget-strapped news organizations are always reluctant to send people to Kitimat.

Leslie and Cullen will then lead a smaller delegation to meet with Haisla Chief Councillor Ellis Ross and will tour a portion of the proposed marine route that oil supertankers would take to transport raw bitumen to Asia from Kitimat.

As well as attending the JRP hearings at Kitamaat Village, the NDP caucus plan to meet with local muncipal leaders in Kitimat as well as municipal officials and First Nations leaders from other communities.

“I’m really looking forward to key members of our Opposition caucus meeting with people who are directly affected by Enbridge,” Cullen said in his news release.

“Having taken part in dozens of Enbridge rallies and meetings over the years, I know there will be many very powerful moments. It’ll be pretty up front and personal.

“Megan and our caucus are here to stand in solidarity with residents of the Northwest in opposing a dangerous project that brings us so many risks and really only benefits Enbridge shareholders.”

In the evening after the JRP hearings, the NDP will then hold a public forum at the Best Western Inn in Terrace, starting about 6:30 p.m. (depending on the length of the afternoon JRP hearings)

Terrace mayor Dave Pernarowski and perhaps members of other local councils will make a welcoming statement, followed by an address from MEgan and then an information session with presentations from individuals & organizations, followed by a question and answer session and break-out groups for those interested.

With the June 27 JRP hearings now cancelled, there may be a second public meeting in Kitimat that afternoon starting at 12:30 p.m. but that is yet to be confirmed.

 

(Typo fixed, correcting day of rally from Monday to Sunday)

Strong support for Joint Review questioning and final hearings in Kitimat, draft report says

The Northern Gateway Joint Review secretariat has issued a draft final report on the May 30 procedural conference concerning the final two phases of the hearings, questioning and final arguments. There was strong support from some participants, including Northern Gateway, for holding  portions of the questioning round and final arguments in Kitimat.

The JRP released the draft report on June 6, 2012. The JRP’s original plan for final hearings for questioning will take place in three locations Prince Rupert, BC, Prince George, BC and either Edmonton or Calgary, AB.

The JRP had argued that the three locations were centrally located, have adequate facilities and reasonable transportation access. The most contentious issue was that the plans bypassed Kitimat, which is to be the terminal for the Northern Gateway pipeline and the shipping point to send the diluted bitumen to Asia.

The Joint Review secretariat reports that eight participants wanted a hearing at Kitimat. According to the report, Northern Gateway suggested that the discreet issue of “shipping and navigation” could be moved to Kitimat, due to the local interest.  Northern Gateway told the JRP that they would have upwards of 10 to 20 witnesses on the issue of marine environment, as well as related support personnel and asked for a early scheduling decision because their “experts on this issue would be arriving from distant locations and need some timing certainty for their appearance.”

The JRP says the District of Kitimat agreed with Gateway and also suggested issues relating to the marine terminal component of the Project, potential impacts on aboriginal interests, environmental effects of the marine terminal and construction through the coastal mountains.

Cheryl Brown, of Douglas Channel Watch, suggested that issues relating to the “marine terminal site” could be added to this location.

According to the JRP report, the Haisla Nation recommended that hearings be held in the town and not Kitimaat village. Both the Haisla and District of Kitimat emphasized that there would be no logistical issues in terms of accommodation or transportation. “Both groups noted that many hearings have been held in the community in the past, without any problems,” the JRP report notes.

The Haisla noted that if there were no hearings in Kitimat, the nation would prefer that hearings on its issues be held in Vancouver.

The JRP said the majority of parties either took no issue with Prince Rupert or suggested an additional venue be added (such as Kitimat), but five participants questioned why Prince Rupert was considered as it is not directly along the proposed pipeline route.

Those interested in the Alberta hearings appeared to be evenly split over whether the hearings should be in Edmonton or Calgary.

In the conference, as it had in an written submission, Coastal First Nations suggested that Vancouver be added as a final hearing location with videoconferencing of the hearings to both Prince Rupert and Kitimat because of the number of counsel, witnesses and experts coming from, or flying through Vancouver.

The Wet’suwet’en Nation repeated that they would like to have hearings either in Burns Lake or Smithers if more hearing locations were added.

The Gitxaala suggested potentially having Gateway’s cross-examination in one location and cross-examination of intervenors in other locations more convenient to them (i.e. Gitxaala in Prince Rupert). Gateway opposed this idea, stating that if an issues based hearing is going to be adopted, it should be used in its entirety.

All of the participants in the conference agreed that a location be centrally located, have adequate facilities and reasonable transportation access. The JRP notes: “The Haisla in particular noted the centrality of Kitimat and the fact that all three Project components are contained in their territory. The Wet’suwet’en noted that it is important that its hereditary chiefs be able to witness the hearings.”

Most of the participants in the conference supported the use of technology and remote access during the final hearings. The report notes:

The Haisla raised some general concerns about the integrity of the evidence obtained and, for that reason, is of the view that parties who seek to have their witnesses participate remotely should first have to obtain the consent of those that would cross-examine the witness. The Haisla also agreed that procedures need to be implemented to ensure that the information is being provided by witnesses and not prompted by others.

According to the JRP report: “The use of video conferencing facilities was generally seen to be preferable to teleconference capability only. The Wet’suwet’en noted the importance of seeing those providing evidence.”

The Haisla and other parties argued that Aboriginal groups need a clear understanding of the Project before answering questions on potential impacts; questioning Gateway witnesses will assist with that. As such, issues of Aboriginal and treaty rights, the potential impacts of the Project on Aboriginal interests and consultation should be addressed last.

The Government of Canada agreed that it made sense to have issues relating to Aboriginal interests and consultation addressed after other technical issues. Gateway did not believe that these issues needed to be addressed all together at the end of the entire hearing. Rather, issues relating to Aboriginal and treaty rights and interests could be heard at the end of the coastal hearings (either in Prince Rupert or Kitimat). Issues relating to Aboriginal and treaty rights and interests could similarly be dealt with at the end of the Prince George hearings to address these issues for the pipeline component of the Project.

There was also discussion over the location of final arguments.

The JRP suggested that final arguments take place in Prince Rupert and either Edmonton or Calgary with mechanisms to allow parties to participate remotely.

Northern Gateway and ten other participant recommended that final arguments take place in Kitimat instead of Prince Rupert. One party suggested that final argument should take place entirely in one single location (Calgary or Edmonton) while again there was pretty well an even split between the two Alberta cities. Again, the Coastal First Nations suggested that Vancouver be added as a final hearing location with videoconferencing of the hearings to both Prince Rupert and Kitimat.

 

Participants

Northern Gateway Pipelines Inc. (Gateway or applicant)

Alberta Federation of Labour (AFL)

Alexander First Nation (AFN)

Cheryl Brown

Canadian Association of Petroleum Producers (CAPP)

Cenovus Energy Inc (Cenovus);

Nexen Inc (Nexen);

Suncor Energy Marketing Inc (Suncor) and Total E&P Canada Ltd (Total)

Coastal First Nations (CFN)

Communication Energy and Paperworkers Union (CEP Union)

Council of the Haida Nation (Haida)

District of Kitimat

East Prairie Metis Settlement (East Prairie)

Horse Lake First Nation (Horse Lake)

Enoch Cree Nation,

Ermineskin Cree Nation,

Samson Cree Nation

 Kelly Lake Cree Nation (Cree Nations)

Fort St. James Sustainability Group (FSJ)

Gitxaala Nation (Gitxaala)

Government of Alberta

Government of Canada

Haisla Nation (Haisla)

Living Oceans Society,

Raincoast Conservation Foundation and ForestEthics Advocacy (Coalition)

MEG Energy Corp. (MEG)

Northwest Institute for Bioregional Research (NWI)

Office of the Wet’suwet’en (Wet’suwet’en)

Province of British Columbia (BC)

Sherwood Park Fish & Game Association (Sherwood Park F&G Assn)

Swan River First Nation (Swan River)

Terry Vulcano

Josette Wier

   Panel Commission Draft Final Report Procedural Conference 30 May 2012  (pdf)

Enbridge claims support from 60 % of First Nations on pipeline route; company also sticks to repudiated Gitxsan deal.

Enbridge Northern Gateway says that 60 per cent of the aboriginal communities on the route of the $5.5 billion Northern Gateway oil pipeline have agreed to accept an equity stake in the project.

In releases to the media today, June 5, 2012, Enbridge says that half of the communities that signed up for a piece of the 10 per cent equity stake on offer are in British Columbia and the other half in Alberta.

There was immediate controversy because Enbridge is refusing to release the names of the communities that have signed up for the deal for “privacy reasons.”

The controversy was heightened late Tuesday when Enbridge spokesman Paul Stanway told The Terrace Standard  the company’s deal with the Gitxsan First Nation still stands, despite the fact both a majority of the heriditary leadership of the Gitxsan and the elected council have rejected the agreement signed by one chief Elmer Derrick.

A blockade of the Gitxsan treaty office is continuing despite a court injunction ordering an end to the blockade.

“We feel we certainly have an agreement,” said Enbridge official Paul Stanway told the Standard in describing discussions it has subsequently had with Gitxsan officials. Stanway said the deal followed a protocol arrangement signed with Gitxsan chiefs several years ago.

“We are confident we were negotiating with the right people,” he said of discussions with treaty society chief land claims negotiator Elmer Derrick and other society officials.

In addition, Art Sterritt, executive director of the Coastal First Nations issued a news release   that called Enbridge’s claims about aboriginal equity partners a “complete sham”.

“We’ve checked with all First Nations on the pipeline route west of Prince George and only two First Nations have signed equity agreements,” Sterritt says in the release.  “Enbridge expanded its pipeline corridor by 80 kilometres  to increase its numbers. Many of those communities that have signed on are located outside of the areas that will be impacted by a spill.”

Sterritt also challenged Enbridge’s contentions on the Gitxsan deal, saying that the Gitxsan people have made it clear they don’t support the project. “They have strongly rejected the agreement.”

Sterritt concluded. “We intend to stop this project.”

Sterrit says his coastal alliance is “absolutely mystified” about the inclusion of the Metis — who don’t have aboriginal rights and title within the corridor — in Enbridge’s 60 per cent. (Representatives of the Metis have taken part in the Joint Review hearings from the opening days of hearings in Kitimat last January).

Enbridge has announced before that First Nations support the pipeline project but, with the exception of Derrick, has never publicly discussed which nations support the project.

The near simultaneous announcement by Enbridge of First Nation’s support for the pipeline and the statement that the company is sticking with its agreement with Elmer Derrick could raise more controversy by causing more splits within First Nations if a few individuals sign and then the agreement is repudiated by other leaders, as happened with the Gitxsan Nation.

The pipeline which would run more than 1770 kilometres from the Alberta bitumen sands to Kitimat, carrying 525,000 barrels of diluted bitumen in the first train and as much as 825,000 barrels in the second train. If everything is approved, Enbridge hopes to ship the bitumen by 2017.

“It’s a good place for us to start in demonstrating that there is aboriginal support for Northern Gateway,” Stanway said. “It’s not 100 per cent, but neither is it the wall of opposition that our opponents sometimes claim.”

The 10 per cent equity ownership for the First Nations who signed the deal will give them about $280 million over 30 years. They would see cash flow starting in the first year of the pipeline’s operation.

There are 45 First Nations along the pipeline, but Stanway wouldn’t give a final figure on how many signed on.

“Some of those are willing to partner with us. That’s not to say they still don’t have some concerns. They want to make sure that we build and operate the pipeline as safety as possible.”

Wilf Adam of the Lake Babine First Nation in Burns Lake, B.C., the Canadian Press (as reported on the  Global BC  site)  he refused to sign the equity agreement because Enbridge was unwilling to release more details in the contract.

“I’d been asking for the financial figures and I’d been asking about the employment. They said there would be a lot of employment.”

Adam told CP it appeared to him that there would be few jobs available for his people. Hesaid there was a flurry of emails and phone calls from Enbridge officials after the company moved the deadline for signing the equity agreement up to May 31.
Related links

Reuters: Enbridge Northern Gateway wins some native support

Globe and Mail: Some first nations want equity in Northern Gateway, but opposition remains

Common Sense Canadian Tough Questions for Enbridge on its Alleged Support from First Nations

CBC Majority of aboriginal communities sign on to Northern Gateway

Editorial: It’s time for the District of Kitimat to play hardball on Gateway

EDITORIAL

Who speaks for Kitimat?

Someone has to speak for Kitimat on the Northern Gateway project.

The District of Kitimat Council no longer has a choice. It’s time to play hardball with Ottawa and Enbridge on the Northern Gateway Pipeline.

You can’t negotiate from a position of weakness.

The game of pipelines changed forever in recent weeks, when the Conservative government introduced Bill C-38, the Budget Implementation Act.

Bill C-38, which passed Second Reading on May 14, 2012 is an affront to basic democratic principles, a 425 page omnibus monster that will not permit the kind of careful consideration of major changes in Canadian society that what was once normal in a free and democratic society. The omnibus bill not only concerns the federal budget but also repeals the environmental assessment process and guts fisheries protection for the smaller spawning streams where salmon are born. By giving the federal cabinet the power to overrule the National Energy Board, the decision on the pipeline rests with just one man, Prime Minister Stephen Harper, who has made no secret that he intends to push the project through no matter how fierce the opposition to the project.

This week has seen devastating cutbacks along the west coast, to environmental monitoring and pollution control, to Coast Guard protection.  It is now clear that protection of the environment  along the BC coast and the lives of the mariners who sail those waters are of little importance to Ottawa, and of no importance to the war room types counting votes in Alberta and suburban ridings outside Toronto and Vancouver.

The District of Kitimat Council has voted to wait to make a decision until after the report of the Joint Review Panel, when “all information” is available.

The news this week that the Joint Review Panel decided to bypass Kitimat, that the town that is to be the terminal of the proposed pipeline is irrelevant to the process, shows more than any other move what the JRP thinks of Kitimat. Not much.

The Joint Review Panel has lost all credibility. Even if the JRP does produce a fair and honest report with valid recommendations for conditions and restrictions, it is highly unlikely that those recommendations will be fully implemented, because the final decision will be made in the Prime Minster’s Office and that decision will be build, baby, build.

Media reports in recent months have shown that Enbridge has easy access to the senior levels of the Conservative government and Enbridge lobbying preceded the changes to the Fisheries Act in Bill C-38.  Enbridge  walks the halls of power in Ottawa. Kitimat, on the other hand, counts for little, as the JRP schedule clearly shows.

So, for example, even if the Joint Review Panel recommends strict conditions on the pipeline to insure the safety of Kitimat’s water supply, and if Enbridge doesn’t like those conditions, there is no guarantee that Harper and the cabinet will implement those recommendations. That would leave the District of Kitimat holding the water barrel for several years.

(One of the many reasons, it seems, that the JRP wants to have all the northwest hearings is in Prince Rupert is so the high-priced energy lawyers from Calgary can have comfortable accommodation. So, if any protests from the District and the Haisla Nation are successful and there actually are final hearings in Kitimat,  perhaps the District could arrange for the lawyers to camp in Radley Park, so they can actually grasp the realities of living in Kitimat by the Kitimat River.)

The District of Kitimat Council has a duty to make sure that this region is protected.

So what does this mean?

“Armed neutrality”

It is now too late for the District Council to take a position for or against the pipeline. It no longer matters whether Mayor and Councillors support the pipeline, are sitting on the fence or oppose the pipeline. Bill C-38 has made the decision for the Council.

Council must assume that Stephen Harper will impose the pipeline on Kitimat and will impose conditions that could be determinable to the District in favour of Alberta and Enbridge.

From now on Council must unify and work to protect the District from Stephen Harper. The Council must make sure that the District is an aggressive force at any negotiating table or court battle.

That means Council should retain its position of neutrality, leaving opposition to the pipeline to others like Douglas Channel Watch. Given the growing witch hunt against the environmental movement, an official position of neutrality is negotiating from a position of strength and protects the District from any accusation that “radicals” are distorting the District’s position.

In international affairs, countries like Switzerland and Sweden are neutral, robustly neutral. Both Switzerland and Sweden practice what is called “armed neutrality.”

“Armed neutrality” means that Kitimat Council can no longer continue its current wishy-washy neutrality, arguing over the nuances of words in letters to the Joint Review Panel and Enbridge. To protect Kitimat, Council must adopt its own policy of “armed neutrality,” an aggressive stance that represents the entire community, both opponents and supporters of the pipeline.

So what now?

Professional advice

The announcement this week that Shell is planning to build a liquified natural gas facility in Kitimat, in combination with the KMLNG and BC LNG projects plus Enbridge, means it is vital for the District to have independent, professional advice on energy issues.

The District must immediately start paying much closer attention to the all the relevant documents that are filed with the Joint Review Panel. The District Council and staff must have their own independent advisers rather than juggling the views of Douglas Channel Watch and Enbridge and hoping for the best. That means hiring more professionals to supplement current staff that will understand the technicalities of both the Enbridge pipeline and the LNG projects; staff who can advise the senior administration and Council about how to proceed where the issues of the pipeline construction, terminal construction and management of the terminal come under municipal jurisdiction or could adversely affect the municipality.

That takes money, even though money is tight, Council must budget for that staff. When it comes to negotiating factors within the responsibility of the municipality, Kitimat must be at the table at full strength.

All the way to the Supreme Court

It is now certain that after Stephen Harper orders the pipeline to go ahead, disputes over the Northern Gateway Pipeline will end up in the courts. Lawyers are already talking about the constitutional necessity to consult First Nations, that pushing the pipeline across aboriginal traditional territory will violate Rights and Title.

First Nations across British Columbia are already represented by some of the best lawyers in Canada.

Vancouver is already looking at what powers a municipality has to make sure that city is fully protected in case of a catastrophic tanker accident from the Kinder Morgan pipeline and project.

Yes, the District is wary because of the long and bitter fight over power allocation, but that is in the past. Again Bill C-38 gives the District no choice but to prepare for new legal battles, probably all the way to the Supreme Court of Canada.

The District of Kitimat must immediately budget for, seek out, retain and instruct a law firm that  can advise the District on its rights and responsibilities now and in the future once the Harper government imposes the pipeline on Kitimat. As we have seen from the Joint Review and other National Energy Board hearings, the energy industry hires the best lawyers money can buy.

If Kitimat has to face those lawyers, the District can’t act like a Junior B team facing the NHL All-Stars. That law firm should be able to advise Kitimat on the constitutional issues involved and what powers a municipality has to protect the community from unwanted and unwarranted aspects of pipeline and tanker development. That law firm must also be able to participate in hardball business negotiations.

Seeking Alliances

The District must build better bridges with the Haisla Nation and find where there is common ground in the Kitimat region as Stephen Harper imposes the pipeline on the northwest. They may be arguments before the courts or with Enbridge where both the Haisla and the District of Kitimat are allies in a fight.

Stephen Harper and his government are prepared to impose the pipeline, terminals and tanker traffic on northwestern British Columbia, again no matter what local municipalities and regions say. All the environmental and Coast Guard safeguards that might have brought acceptance of the Enbridge project are being cut to the bone. That means Kitimat must also forge alliances with those municipalities and regions, again to make sure that local rights and responsibilities are fully protected once the government decides to impose the pipeline on the northwest.

It is highly likely that the constitutional consultation and Rights and Title cases on the pipeline will end up at the Supreme Court of Canada. If there are other cases, perhaps raised by Vancouver or other Lower Mainland or northern communities or even the Province of British Columbia, it may be that the Supreme Court, as it has with some cases in the past, could consolidate all the pipeline cases into one. That means Kitimat will need to be a participant in any case on the pipeline before the Supreme Court.

Unless District of Kitimat Council starts playing hardball, Stephen Harper will drive a bulldozer down bank of the Kitimat River to Douglas Channel, ignoring the council standing and watching from the hill looking over the pipeline trench. 

Alterra acquires coastal island wind farms to supply LNG plants, but how will it get to Kitimat?

Updated with Alterra comments.
Alterra Corp logoA Vancouver-based energy company, Alterra Power Corp, today, May 18, 2012, announced the acquisition of three wind farm sites off the northernwestern British Columbia coast.

A news release from Alterra notes that the three “early-stage wind farm” sites, on Banks Island, Porcher Island and McCauley Island are “all within 150 kilometres of several proposed power-intensive LNG plant sites at Kitimat.”

The three sites plus one on Vancouver island will have an estimated generation capacity of over 1,000 megawatts for the four sites.

Alterra acquired the sites from English Bay Energy Limited. Alterra says “the sellers will receive royalty payments during the operations phase of the projects, and under certain circumstances the sellers may receive additional compensation of up to 1.34 million Alterra shares.”

The release quotes John Carson, Alterra’s Chief Executive Officer, as saying, “This transaction further positions us to play a major role in B.C.’s clean energy future. We look forward to advancing and ultimately building these wind projects as a part of the continued growth of Alterra and British Columbia.”

 

Satellite map of BC showing Kitimat and wind farm locations
A satellite image of northwestern BC showing the location of Kitimat and the three islands that are the location of the proposed windfarms to supply to Kitimat’s LNG projects. (Satellite image NASA/MODIS)

When informed of the announcement, Kitimat mayor Joanne Monaghan asked, “How are they going to get it here?”

While the three islands are within 150 kilometres of Kitmat, any transmission lines would have to somehow cross the Inside Passage and its heavy ship traffic, including cruise ships, ferries, fishing vessels and bulk carriers (not to mention potentially tankers),  and then also get over some of the most rugged mountain territory in Canada to reach any of the three liquified natural gas sites in Kitimat.

“I know that all of the LNG plants considering coming in here, including Shell, are talking about co-gen [co-generation of electricity using natural gas], because if they don’t do co-generation they’re going to have to bring all of this in from the Site C Dam and that is going to make it totally out of the range of their price,” Monaghan said. She also remarked that the cost of building transmission lines from the three off shore islands could also be prohibitive.

Alterra spokesman Anders Kruus said that supplying power from the islands to Kitimat a major consideration but added it  “would not be an insurmountable problem.”

He said the company’s predecessor before a merger, Plutonic Power, had built “the province’s largest run-of-river hydro facility at Toba Inlet not far from Powell River  (80 kilometres) and in the process of building that, beause the run-of-river facilty was quite far back, not accessible by roadway, you have to barge in, we built a 120 kilmetre long tranmission line out to Saltery Bay. So we’ve done it over the mountains.”  Kruus said.

“It’s early days,” Kruus said and the company now plans to compile more wind data before proceeding.  He acknowledged that the “intermittency of the wind” could be a problem with an LNG plant that requires a consistent, balanced power load and so the best “off-taker” (customer) for the wind energy electricity might likely be BC Hydro who could balance the power from the project within  its own system before supplying it to customers.

On its website, Alterra Power Corp describes itself as

a leading global renewable energy company, formed in 2011 through the merger of Magma Energy Corp and Plutonic Power Corp.  We operate six power plants totaling 570 MW of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia’s largest run of river hydro facilities and the province’s largest wind farm. Our 300 MW share of production generates over 1,400 GWh of clean power annually. We have an extensive portfolio of exploration and development projects, a skilled international team of explorers, builders and operators as well as the strong financial capacity to support our aggressive growth plans.