Douglas Channel | Northwest Coast Energy News

Editorial Part II:Commodities dropping: Whether it is a correction or a cyclical downturn, Kitimat needs a plan B

You might not be seeing it at the gas pumps at the moment, but you soon will, the price of gas has gone down by 30 per cent since June.

Prices of key commodities, oil, coal and iron ore are dropping. And the weakness in the market for two of those commodities oil and iron ore should be setting off the alarm bells in Kitimat and the northwest.

The declining price of oil will soon affect all those energy-related projects that are supposed to bring an economic renaissance to northwest British Columbia.

As for iron ore, people might ask, what does iron ore have to do with us, there are no iron mines or steel mills around here.? However, in the highly integrated world economy, Rio Tinto is one of the world’s largest producers of iron ore, the decline in iron ore prices is affecting Rio Tinto’s bottom line and that is why, analysts say, the company may be vulnerable to a take over by the little known commodities giant Glencore.

There are two possibilities with commodity prices. Some analysts see the decline in commodity prices and the accompanying drop in prices on the world’s stock exchanges as a “correction” phase. However, others like Reuters analyst John Kemp says the downturn is an indication that the commodities “supercycle” has reached its peak and is on the way down.

The oil industry has always experienced very long, slow and deep cycles in supply, demand and prices: the current downturn is no exception.

Kemp says the current up cycle began around 2002, with rising oil prices. The financial collapse in 2007 and 2008 briefly interrupted the cycle but now according to Kemp and other analysts there is a glut of oil on the market and prices are falling world wide.

High prices meant not only new plays, especially in the Alberta bitumen sands, but also stronger efforts to save money by increasing energy efficiency and, yes, turning to cheap natural gas.

There are also new factors at play. In the past when there was a downturn in oil prices, OPEC led by Saudi Arabia, would limit supply to keep the price at a profitable level. However, the flood of oil on to the market from shale oil plays, mainly in the United States but also in Canada, has meant that OPEC can’t do that anymore. Too much competition. So the analysts say, the Saudis and other OPEC members are actually starting a price war to retain market share.
When Kemp was writing last week, he said the key marker, North Sea Brent crude:

if prices are adjusted for inflation (using average U.S. hourly earnings), Brent prices are at the lowest level in real terms since October 2007, exactly seven years ago.

There has always been a lot of skepticism among long term residents of Kitimat who have seen boom and bust cycles before and so they, rightly as it turns out, have been wary of industrial promises. Then there’s the current housing debate which may soon see the out of region speculators and developers caught with their pants down in the midst of a Kitimat January blizzard.

The commodity downturn also shows the foolishness of the politicians, business people and commentators who kept saying that BC is a “natural resource economy” and restrictions on corporations and strong environmental requlations will only hurt that economy. Who needs diversification? Who needs a fishing guide anway? It is fairly clear already that Christy Clark’s promises of a debt free province have as much credibility as speculating in Dutch tulip bulbs.

As for the idea among some here that if Kitimat had only voted in favour of Enbridge Northern Gateway, the gates to ecomonic paradise would open, that is foolishness. You can be certain when the Saudi princes decided on a price war to keep themselves in the luxorious lifestyle which they believe they are entitled, they didn’t consider whether Kitimat voted for or against Northern Gateway.

Editorial Part I: Kitimat needs a world class council

So what does Kitimat need to know

The nail in the coffin for Northern Gateway?

The Northern Gateway project was already in deep trouble before the downturn in oil prices.

Writing in The Globe and Mail last week, Jeff Rubin noted.

Part of the impetus behind constructing new pipelines to carry bitumen from northern Alberta to the U.S. Gulf Coast, Kitimat on the Pacific, or even all the way across the country to Saint John, N.B., was to help close the substantial discount between Canadian oil and world prices. Well, crude’s recent drop into the $85‑a‑barrel range has basically collapsed the once wide‑open spread that had existed between West Texas Intermediate and Brent crude with hardly any new lengths of pipe being laid into the ground at all.

Rubin went on to note that the decision by the Saudis to launch the price war has changed everything.

For pipeline companies with major proposals on the table, such as TransCanada and Enbridge, falling oil prices are a game‑changer of the same magnitude that rising prices were a decade ago. Back then, soaring prices created an urgent need to build new pipelines to connect North America’s burgeoning supply to coastal refineries and world markets.

We’re now in a different world. At the root of today’s problem is global demand that is no longer growing quickly enough to support the prices necessary to keep expanding expensive unconventional sources of supply such as the oil sands. Lower prices will effectively strand those reserves regardless of the transportation options that may become available. Even if President Obama approved Keystone XL or the National Energy Board gave the green light to Energy East, falling commodity prices mean that soon there might not be enough oil flowing out of northern Alberta to fill those new pipelines.

This week’s near disaster with the Russian container ship Simushir, where the coast of Haida Gwaii was saved by a change in the wind direction, hasn’t helped either.

Will the refinery fade to black?

Economists have always been skeptical about David Black’s plan for the Kitimat Clean refinery and Black has admitted that he also had not much support for the refinery idea either from the hydrocarbon indusry or from government.

Most important, Black has said that he as a businessman intends to eventually make a profit by selling refined product. In fact on his website, Black said he expected the refinery to go into profit after just seven to ten years of operation.

But now comes the flaw in Black’s business plan. According to the website, the Kitimat Clean project is based on North Sea Brent Crude priced at $110 US a barrel. The refinery would take advantage of the “discount” on deliveries of Alberta bitumen crude which the site estimated at $35 a barrel. Black’s site says the refinery would be profitable if it could purchase bitumen at a $23 discount, making $12 a barrel over the world price.

Unfortunately, as of this writing, 11 am on October 20, the price of Brent Crude is now $85.79 and dropping slightly. West Texas Intermediate Crude, the other bench mark is even lower at $82.79 a barrel.

It looks like the drop in oil prices wipes out Black’s plan for profitability, since Brent Crude is already $25 a barrel cheaper than Black had projected.

What’s that got to do with the price of gas?

The falling price of crude oil is also going to have a major impact on the liquified natural gas projects in the northwest. The current economic situation will soon see the short term players and speculators cut and run, leaving, it is hoped, a couple of long term players in the west coast LNG terminal market. However the volatility in the dropping oil market may mean that the all important Final Investment Decisions are delayed yet again.

That’s because, at the moment, in Asia, the price of natural gas is calculated as a per centage of the price of crude oil, what is called the Japan Cleared Customs price. And as the LNG Journal has reported the price of LNG in Japan has dropped to the 2009 level.

East Asian Delivered LNG Indicator Price hit its lowest level since 2009 at $12.30 million British thermal units with European Brent crude oil prices collapsing to $82.85 per barrel. The East Asia LNG price is based on the Japanese Crude Cocktail method of assessing long-term contract cargo prices for Japan, based on oil which last hit current levels and then slipped below $80.00 per barrel during 2009.

The idea of LNG exports, especially since the Japanese earthquake in 2011, is that the companies can make a big profit by buying natural gas at low North American prices, exporting and then selling at the higher Asia price. In a free market world, however, the Asian countries and companies have, for the past few years been balking at buying at the higher JCC price and attempting to buy at the much lower North American Henry Hub price which at this writing was $3.72 MMBTu. Today’s JCC LNG price was $12.75, still higher than the North American price, but as LNG Journal notes, at a five year low.

Bloomberg reports that slump in oil prices is already threatening the Northwest’s greatest rival in LNG, Australia.

Weaker oil prices may put proposed LNG projects “to sleep for a number of years,” Fereidun Fesharaki, chairman of Facts Global Energy, an industry consultant, said in a phone interview. “For the projects that are already under construction, it hits their pocketbooks seriously.”

Prices below $80 a barrel may be a “disaster” for some projects, said Fesharaki, who forecasts Brent may decline to $60 a barrel before the end of the year, then rebound to about $80 by the end of 2015.

and

“There’s no doubt if we were to see the type of crude oil prices we’re seeing now continue they would be looking at lower LNG prices,” Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group Ltd., said by phone. “On face value, it would put pressure on margins.”

Long term LNG prospects

On the other hand, long term prospects for LNG exports are good. Demand in the Asian markets is still growing.

According to the Nikkei Asian Review, the Japanese Ministry of Economy, Trade and Industry projects that by 2020, 70 per cent of Japan’s LNG will come from Australia and North America. That doesn’t mean that Canada won’t have rivals, the projections say that the United States, which is just starting many of its LNG export projects could be Japan’s third largest customer with Canada in fourth place.

There are big benefits to getting LNG from North America and Australia. The unlikeliness of pirate attacks is one. There is also less political uncertainty. And then there is the price. U.S. shale gas, for example, costs about 20% less than what Japan currently pays for LNG.

Diversification

With the Rio Tinto Alcan Kitimat Modernization Project construction phase winding down, with some uncertainty about the future of Rio Tinto itself and with more possible delays in the Final Investment Decisions for LNG Canada and Kitimat LNG, Kitimat needs a Plan B (and a Plan C or D or E).

The idea of a retirement community is no longer viable, costs of housing, even if they drop, are just too great.

Kitimat’s second strength has always been tourism and fishing. In 2015, there must be stronger efforts of support both fishing and tourism, which, in the long term will support that regions economy through good times and bad.

That means the new council must be firm in demanding (yes demanding) full access to the Kitimat waterfront and that includes a well-managed marina or marinas that have the capacity for recreational, adventure and fishing guiding and industrial use.

The District of Kitimat must come up with a plan that will promote the advantages of the region as a tourist and fishing destination. While the Chamber of Commerce has being doing a good job, up to now as the main promoter of tourism, Kitimat’s public image across Canada and the world is soley industrial and the District should assume more responsiblity for changing that image. The economic development staff at the district have been working largely on large scale industry. It should devote more time and money to the natural wonders of the area.

The plan B should also mean balance. Balance between industry and environment. The sneering contempt for those who want to protect the environment of the northwest is short sighted thinking, because a large proportion of the economy will depend for decades to come on attracting visitors to the wild beauty of of this part of British Columbia. That means, as much as it can within municipal powers, the new council must strengthen environmental protection in Kitimat.

Back in the 50s, Kitimat was planned for a future, a future that didn’t exactly work out when the price of aluminum slumped in the early 60s. Now we’re facing a slump in energy prices, so those plans will change. The plan B must include, as much as possible, creating a mainstay base that will smooth out the boom and bust of the commodities cycle.

The motto on the Kitimat snowflake logo is “A marvel of nature and industry.” The new council should make sure that motto is applied during the coming years.

Controlling land and pipelines key to Haisla LNG future NEB filing says

The Haisla Nation’s plan for entering the LNG business is based on the idea that “it is anticipated that the Haisla Projects will be developed using a business model based on controlling two components of the value chain: land and pipeline capacity” according to its application to the National Energy Board for a natural gas export licence.

Cedar LNG Development Ltd., owned by the Haisla Nation, filed three requests for export licences with the NEB on August 28, under the names Cedar 1 LNG, Cedar 2 LNG and Cedar 3 LNG. Another name used in the application is the “Haisla Projects.”

The 25-year export licence request is standard in the LNG business; it allows export of natural gas in excess of projected North American requirements. Thus like the NEB hearings for the Kitimat LNG and LNG Canada projects it is not what is called a “facility” licence which is what Enbridge Northern Gateway requested.

The project anticipates six “jetties” that would load LNG into either barges or ships at three points along Douglas Channel, one where the present and financially troubled BC LNG/Douglas Channel Partners project would be.

A second would be beside the BC LNG project, which may refer to the Triton project proposed by Pacific Northern Gas parent company Altagas.

Both are on land now owned by the Haisla Nation in “fee simple” land ownership under Canadian law.

Map of Haisla LNG sites — Map from the Haisla application to the NEB showing that the Haisla Projects Region will allow for a total of six LNG jetty sites. One of these, on DL99, is currently ear-marked to be used for a project involving a consortium (BCLNG) One will be situated on the DL309 Haisla fee simple land and the other four jetties are to be situated on the Haisla leased lands that surround the Chevron-led LNG development at Bish Cove. The map also shows that the Haisla own land at Minette Bay.

The other four would be on land surrounding the current Chevron-led Kitimat LNG project along Douglas Channel and in the mountains overlooking Bish Cove which the Haisla have leased.

The move last week and the revelation of the Haisla’s plans for the land are a cumulation of Haisla Nation Chief Counsellor Ellis Ross’s idea of restoring more of the First Nation’s traditional territory by buying or leasing the land using standard Canadian land law and at the same time getting around some of the more restrictive provisions of the Indian Act that apply to reserve land.

Just how the Haisla will go into the pipeline business is not as clear as the First Nation’s acquisition of the land. The application says:

The pipeline capacity required to transport sourced LNG to the Haisla Projects will include a mix of new and existing pipeline and infrastructure. The Haisla are in the advanced stages of negotiating and drafting definitive agreements with the major gas producers and pipeline transmission companies located in the vicinity with respect to securing pipeline capacity. It is expected that the Haisla Projects will rely on the Haisla’s business partners or customers to source gas from their own reserves and the market.

With the Haisla basing their business strategy on land and pipelines, the First Nation’s strategy is looking for flexibility in what is a volatile and uncertain market for LNG.

The application says the Haisla “are currently in advanced stage discussions and negotiations with a number of investors, gas producers, LNG purchasers, pipeline transmission companies, technology providers and shippers. As such, the particular business models have yet to be finalized. However, it is anticipated that between the various Haisla Projects, multiple export arrangements may be utilized.”

As part of the idea of flexibility, the actual LNG infrastructure will be constructed and operated with potential partners. That is why there are three separate applications so that each “application will represent a separate project with independent commercial dealings with investors, gas producers, LNG purchasers, pipeline transmission companies, technology providers and shippers.”

The Haisla say that they are “working with a number of entities to develop business structures and partnerships to provide transaction flexibility, adequate financing, modern technology, local knowledge, and marketing expertise specific to Asian targets. The separate projects will accommodate expected production and demand and will also allow for a number of midlevel organizations to be involved with the various projects as well as traditional major gas producers and LNG purchasers.”

The Haisla are working with the Norwegian Golar LNG which had been involved in the stalled BC LNG project, using a Golar LNG’s vessels and technology, using a new design that is now being built in Singapore by Keppel Shipyard.

Golar LNG uses PRICO LNG process technology developed by Black & Veatch, (Wikipedia entry) “which is reliable, flexible and offers simplified operation and reduced equipment count.”

The filing says the project will “be developed using either barge-based or converted Moss-style FLNG vessels. The terminals will consist of vessel-based liquefaction and processing facilities, vessel-based storage tanks, and facilities to support ship berthing and cargo loading”

The jetties to be used for the Haisla Projects may be either individual FLNG vessels or “double stacked”, meaning that the FLNG vessels are moored side-by-side at a single jetty. The Haisla have conducted various jetty design work and site /evaluation studies with Moffat and Nichol.

The Haisla Projects anticipate that the construction will be in 2017 to 2020, “subject to receiving all necessary permits and approvals” and is expected to continue for a term of up to twenty five years. There is one warning, “The timelines of the Haisla Projects will also depend on the contracts and relationships between the Applicant and its partners.”

The filing goes on to say:

Haisla Nation Council and its Economic Development Committee are committed to furthering economic development for the Haisla. The Haisla’s business philosophy is to advance commercially successful initiatives and to promote environmentally responsible and sustainable development, while minimizing impacts on land and water resources, partnering with First Nations and non-First Nations persons, working with joint venture business partners, and promoting and facilitating long-term development opportunities.

The Haisla Applications will allow the Haisla to be directly involved as participants in Canada’s LNG industry, rather than having only royalty or indirect interests. The Kitimat LNG and LNG Canada projects, and the associated Pacific Trails Pipeline and Coastal Gas Link Pipeline, have increased economic opportunities in the region and the Haisla are very supportive of these projects locating within the traditional territory of the Haisla. The support of the Haisla for these two projects reflects a critical evolution of the Haisla’s economic and social objectives.

You can see the filing on the NEB projects page at http://www.neb-one.gc.ca/clf-nsi/rthnb/pplctnsbfrthnb/lngxprtlcncpplctns/lngxprtlcncpplctns-eng.html

Map from the Haisla Nation application to the NEB showing the proposed LNG developments in relation to Douglas Channel.

Bitumen map — Map from the Enbridge filing with the Joint Review Panel showing the same area with the proposed Northern Gateway bitumen terminal.

Haisla Nation starting their own LNG export project: industry reports

The Haisla Nation have filed an application with the National Energy Board for their own liquified natural gas export project, according to industry newsletters.

There is nothing at this point in the public section of the NEB website, probably due to the holiday weekend. Northwest Coast Energy News is contacting Haisla leaders for confirmation.

According to both the Daily Oil Bulletin and Natural Gas Intelligence the Haisla have formed three companies, Cedar 1 LNG Export, Cedar 2 LNG Export and Cedar 3 LNG Export, and have applied to the NEB for three standard 25 year export licences.

According to Natural Gas Intelligence:

The filings with the National Energy Board (NEB) envision construction starting in 2017-2020 of a network of six jetties or docks jutting out from Haisla land on the shore of Douglas Channel for floating LNG vessels. Each requested export license would enable operations by two jetties.

The plan calls for a mini-armada of six mobile processing plants, with each one capable of converting up to 400 MMcf/d of gas into liquid cargo for overseas deliveries.

Work is under way with international tanker firm Golar LNG to commission construction of the vessels in Singapore at the Keppel Shipyard, according to the applications.

With the project still in planning stages, Cedar LNG did not disclose cost estimates. Names of prospective partners in the terminals; Asian customers, BC gas suppliers and pipeline service providers were also undisclosed. Discussions are under way on all fronts with an array of industry participants, Cedar told the NEB.

The Hasila are partners in the stalled BC LNG project that ran into trouble when the original Texas based investors got into financial difficulty. AltaGas, parent company of Pacific Northern Gas, is also involved in Triton, a floating LNG project that would be at an old log sort on Douglas Channel, the same site as the BC LNG project.

Map of current LNG and other projects in the Kitimat area from the BC airshed report. (Environment BC)

MORE TO COME

Chevron applies to update permit to discharge storm water to Bish Cove and Douglas Channel

Chevron has applied to the BC Ministry of the Environment for a permit to discharge storm water from the liquified natural gas construction site at Bish Cove and along the shore of Douglas Channel.

The construction site is currently operating on a Waste Water Discharge Approval that expires on Oct. 31.

Map of Bish Cove — Map showing construction areas at the Kitimat LNG site at Bish Cove likely to discharge storm water into the Douglas Channel. (Chevron/ McElhanney Consulting)

The application sets new objectives that “will be protective of the receiving environment.” Various construction areas will discharge storm water (likely due to clearing of the bush cover) from areas at Bish Cove itself and the Bish Creek watershed “including the following watercourses and associated tributaries: Bish Creek, West Creek, Skoda Creek and Renegade Creek.”

The application says that the “maximum rate of effluent discharged from this project and support areas will vary based upon seasons and weather.” Areas and amounts of water may change as the construction proceeds. “The characteristics of the stormwater runoff will be water produced from precipitation, including snowmelt that contains suspended sediment from earthworks and construction.” The application adds, “The types of treatment to be applied to the discharges are: erosion prevention and sedimentation control management practices and devices which may include sedimentation ponds, oil water separators, pH adjustment, flocculent addition and sand filtration.

The public and concerned individuals or groups can provide “relevant information” to the Regional Manager, Environmental Protection, #325-1011 Fourth Ave, Prince George BC V2L 3H9 until September 20, 2014 or call Marc Douglas at 844-800-0900.

Kitimat can accommodate industrial growth, air shed study says. But where’s Northern Gateway?

The long awaited Kitimat air shed study, released by the province Friday, July 17, 2014, says “that with proper management, Kitimat’s ai rshed can safely accommodate new industrial growth” without major affects on either human health or the environment.
Link to news release : Study shows Kitimat airshed can handle new industrial development

The Kitimat Airshed Assessment looked at the cumulative effects of industrial air emissions, primarily sulphur and nitrogen oxides, and their potential impacts on both human health and the environment from

Rio Tinto Alcan’s existing aluminium smelter and its planned modernization
David Blacks proposed “Kitimat Clean” oil refinery at Onion flats
Four proposed LNG facilities; Shell-led LNG Canada, Chevron lead Kitimat LNG, the floating Douglas Channel LNG at the old log dump and a second floating LNG project called Triton.
BC Hydro gas turbine powered electrical generation facilities in Kitimat and near Terrace
Predicted increased to marine shipping in Douglas Channel.

The study was divided into two zones.

Health results were first examined for Kitimat townsite, the Kitimat Industrial Service Centre and Kitamaat Village.

The wider study included Gitga’at Old Town, Hartley Bay (Kulkayu), Kitimat-Stikine, Kitselas, Kitsumkaylum, Kshish, and Terrace.

Enbridge missing

There was one big factor missing from the study, it does not include the Enbridge Northern Gateway project, although the consultants who did the study do cite a couple of the air quality studies that Enbridge filed with the Northern Gateway Joint Review Panel. That despite the fact the Joint Review Panel under Condition 82 required that Enbridge file with the NEB for approval, at least four months prior to commencing construction, “an Air Quality Emissions Management and Soil Monitoring Plan for the Kitimat Terminal.”

The JRP report acknowledged that emissions from the Enbridge terminal would be minimal but would contribute to the cumulative effect of pollutant emissions from other industries and required Enbridge to consult with the District of Kitimat, the environment ministries and other industries in planning for emissions.

The map from the airshed study also shows that the possible marine terminal for David Black’s proposed Kitimat Clean refinery project is at or close to where the proposed Enbridge Northern Gateway terminal would be.

Health and environment

The study looked at proposed emission levels and the effect of emissions elsewhere in the world and then compared those studies with the Kitimat Valley. It found that the risk of sulphur dioxide was “directly related to proximity to industrial area”–largely the Kitimat Service Centre area–and that there would be a minor increase in respiratory incidents of 0.5 per cent to 2 per cent, with a slight increase of nitrogen dioxide but those were within existing guidelines.

As for environmental impact, the study says nitrogen dioxide impacts will be low. There wil be “some increased risk of soil impacts” from sulphur dioxide. The study says there will be “no negative impacts to vegetation across all scenarios” but did find “potential for acidification” of seven small lakes. Lakelese Lake is not one of those affected.

The study also doesn’t include particulate matter and although it does consider climate change, did not take into consideration possible increase of green house gases in the Kitimat Valley.

The consultants, Esssa Technologies of Vancouver, based its findings on an earlier study by Rio Tinto Alcan on emissions from the Kitimat Modernization Project and worked on those findings by adding new industries and a greater area to the models they used.

The province and industry says they will continue to monitor air, water, soil and vegetation “to ensure these values are protected.”

The higher levels of sulphur dioxide emissions from the Rio Tinto Alcan Kitimat Mondernization Project will be allowed to continue under the current permit. Environment Minister Mary Polack told reporters that will only change if the current court challenge to the sulphur dioxide levels are successful.

Map of Kitiamt — A map by Essa Technologies and Environment BC of the Kitimat valley airshed study shows locations for existing and proposed industrial or infrastructure development. It does not include the proposed Enbridge Northern Gateway project.

What Northern Gateway Joint Review said about emissions in the air shed

Among the 209 conditions imposed on the Enbridge Northern Gateway project is No. 82, an Air Quality Emissions Management and Soil Monitoring Plan.

Northern Gateway must file with the NEB for approval, at least 4 months prior to commencing construction, an Air Quality Emissions Management and Soil Monitoring Plan for the Kitimat Terminal…

This plan must include:
a) a description of the baseline, pre-construction conditions, informed by relevant modelling results and recent, existing monitor data;
b) locations of both air and soil monitoring sites on a map or diagram, including the rationale for the locations selected and the timing for installation;
c) methods and schedule of ambient monitoring for contaminants of potential concern in air (e.g., NO2, SO2, and H2S) and in soils (e.g., pH; major plant nutrients K, P, N, and S; and trace metals), and emissions source tracking;
d) data recording, assessment, and reporting details;
e) a description of the public communication and complaint response process;
f) additional measures that will be implemented as a result of monitoring data or ongoing concern;
g) the criteria or thresholds that will require implementing additional measures;
h) a description of the plan updating process;
i) a summary of Northern Gateway’s consultation with Environmental Canada and the British Columbia Ministry of Environment regarding the Air Quality Emissions Management and Soil Monitoring Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them; and
j) a summary of discussions with the District of Kitimat and local or regional industrial emitters regarding collaborating on the plan’s design and implementation.

One of the things that the Joint Review Panel noted in requiring Enbridge Northern Gateway to have an updated plan and to collaborate with Kitimat and other industries is that levels of acceptable sulphur doixide in the atmosphere are changing and much of Northern Gateway’s modelling was based on standards that were becoming obsolete.

In the Joint Review Panel report, section 8.7, the JRP said:

Northern Gateway assessed changes in the atmospheric environment, including a modelled assessment of criteria air contaminant, hazardous air pollutant, and greenhouse gas emissions. Criteria air contaminants assessed by modelling included sulphur dioxides, nitrogen oxides, carbon monoxide, hydrogen sulphide, and particulate matter. Hazardous air pollutants were also modelled and included total volatile organic compounds (VOCs), benzene, toluene, ethylbenzene, and xylene (combined, BTEX), as well as hydrogen fluoride.

The provincial air shed report considered only two contaminants, sulphur dioxide and nitrogen dioxide.

Northern Gateway said there would be minimal atmospheric emissions from the construction and operation of the pipeline. The focus was on the Kitimat marine terminal.

The modelled assessment for the Kitimat Terminal included emissions associated with terminal operations, with the largest sources being vehicle traffic and
hydrocarbon storage tanks Northern Gateway used the conservative assumption of continuous ship berthing…emission rate) in order to capture the worst case scenario of concurrent adverse meteorology and maximum potential emissions. From the model results, Northern Gateway predicted that sulphur dioxide associated with operating the Kitimat Terminal would exceed the provincial air quality objectives (Level A) for all time periods. This after mitigation.

Environment Canada said that Northern Gateway took appropriate measures in designing and siting its proposed facilities to minimize adverse effects on air quality. It acknowledged Northern Gateway’s commitments to adopt best practices and to use economically-feasible best-available technologies in designing the Kitimat Terminal to minimize effects on air quality.

Northern Gateway ackknowledged that “due to the project interacting with nearby topographical features, where the largest sulphur dioxide emissions are from the
marine vessels, the highest concentrations were predicted to occur infrequently and immediately adjacent to the terminal fence line.

Northern Gateway, Transport Canada, the Heiltsuk First Nation and other stakeholders did acknowledge that eventually the vessels coming to Kitimat “would be subject to the reduced sulphur fuel requirements associated with the joint United States-Canada North American Emission Control Area.

Based on this, marine fuel sulphur requirements permitted in Canadian coastal waters (200-nautical-mile limit) would be 1.0 per cent in 2012, reducing further to 0.1 per cent by 2015. Northern Gateway predicted that sulphur dioxide emissions from marine vessels should be approximately 96 per cent lower than modelled once these new international fuel standards take effect. Northern Gateway also predicted exceedances of provincial air quality objectives in the area for carbon monoxide, particulate matter, hydrogen sulphide, and total reduced sulphur.

Northern Gateway said there “no exceedances of hazardous air pollutant guidelines were predicted as a result of the project itself” but there could be a cumulative effect with other industries in the Kitimat waterfront.

The Joint Review Panel ruled:

By the Kitimat Terminal’s proposed in-service date, there will have been significant changes to the number and magnitude of existing air emission sources since
the provincial emission inventory of 2000 was compiled, and since Northern Gateway completed its modelling assessment.

Regarding the sulphur emissions attributable to the terminal, marine vessel berthing would account for 97 per cent. Given that Northern Gateway used conservative assumptions regarding berthing in the modelling and that regulations coming into force regarding the sulphur content of marine fuels would further decrease predicted missions, the Panel finds that the modelling results presented in the application and subsequent filings are not predictive of the realistic potential effects on local air quality.

Based on the filed information about sulphur dioxide emissions, the Panel is satisfied that new modelling based on the updated information would indicate that sulphur dioxide associated with the Kitimat Terminal’s operations would not exceed provincial air quality objectives.

The Panel requires that further modelling, reflecting the current level of activity, equipment, and marine sources, must inform Northern Gateway’s design of the Air Quality Emissions Management and Soil Monitoring Plan for the Kitimat Terminal.

Updated modelling would be used to inform the monitoring program’s design, as well as to help ensure that the monitors are placed effectively to monitor both human and environmental health.

Cumulative effects on the atmospheric environment

Northern Gateway said that, during the Kitimat Terminal’s operations, tank maintenance and marine berthing would add a potential measureable contribution to regional cumulative environmental effects from air emissions. Northern Gateway incorporated the existing industrial sources in the Kitimat area in its modelling assessment, using the British Columbia Ministry of Environment’s emissions inventory. At the time the modelling was run, the available emission estimates from 2000 were used to characterize the existing sources in the airshed.

The Joint Review panel noted that over the time of the hearings”it heard of many changes to the industrial make-up of the Kitimat area since the 2000 emissions inventory was developed.”

Combining these with the predicted project emissions, the model results indicated predicted exceedances of regulatory thresholds for sulphur dioxide, carbon monoxide, particulate matter, hydrogen sulphide, and total reduced sulfur, though not at every averaging period.

Northern Gateway said that, due to the existing large emission sources and the region’s complex meteorology and topography, the exceedances are primarily attributable to the other industrial activities around Kitimat and not from the project itself.

Because there would be adverse project effects remaining after mitigation that could combine with the effects of other past, present, and future projects, and because cumulative effects are of primary concern, the Panel’s significance recommendation is given below in its analysis of cumulative effects.

The Panel finds that the emissions associated with the Kitimat Terminal’s operation would be minimal compared to the existing sources presented.

Although the modelled cumulative emissions exceeded many regulatory thresholds, the exceedances were predicted based on an out-of-date emissions inventory, and were predicted to occur prior to adding emissions from the project. Based on the information about sulphur dioxide emissions on the record, in addition to the modelling included in the application, the Panel is satisfied that new modelling based on updated information would indicate that sulphur dioxide associated with the Kitimat Terminal’s operations would not contribute to an increased exceedance of provincial air quality objectives, either through limited emissions or berthing management to limit emissions in particularly adverse conditions.

Kitimat Council urges heavy turnout for North Coast Draft Marine Plan meeting

Marine planning map — Zone maps for the North Coast marine draft plan. (MAPP)

District of Kitimat Council has urged residents to turn out in large numbers for consideration of the North Coast Draft Marine Plan at the Kitimat Valley Institute Tuesday, May 13, from 5:30 to 8:30.

In introducing the motion, Mayor Joanne Monaghan said she was worried that not enough Kitimatians, especially charter operators, boaters and fishers were aware of the meeting.

Another council member privately said he was worried that the Open House and Forum weren’t publicized enough so that the town could be checked off as having “been consulted.”

Residents can download the plan from the Mappocean website at http://mappocean.org/north-coast/draft-plan-for-input/.

MAPP stands for Marine Planning Partnership for the North Pacific Ocean.

According to the documents the purpose of the North Coast Marine Plan “is to provide recommendations for achieving a sustainable balance between ecosystem health, social and cultural well-‐being and economic development through an ecosystem-‐based approach to planning and management.”

The plan is all about managing “common First Nation and provincial interests related to marine areas.”

The parners include the province and the Skeena First Nations Stewardship Society (NCSFNSS), representing the Metlakatla, Kitsumkalum, Kitselas, Haisla, Gitga’at, and Gitxaala Nations.
According to the doucments the North Coast plan area covers 27,000 kilometres of coastline;

that is indented with deep fjords and dotted with thousands of islands. It is a region of profound beauty, significant ecological diversity and remarkable cultural richness. Prince Rupert, Terrace and Kitimat are the largest communities in the North Coast plan area, which supports an overall population of approximately 42,000.

According to the summary of the plan:

The physical complexity of the North Coast includes a range of ecosystem types, including important estuaries that support distinct marine ecosystems and species. A diverse range of economic and community activities occur within the North Coast plan area. Commercial fisheries and associated processing facilities and logging have supported communities along the coast since the early 1900s. These activities continue to be important to the well-‐being of coastal communities. Port activities centered around the communities of Prince Rupert, Kitimat and Stewart, and active recreational fishing and tourism sectors, continue to be strong economic drivers in the area. North Coast First Nations living in the region have distinct cultural and spiritual heritages that are intricately linked to the marine environment and the long-‐standing sustainable use and management of marine resources.

The plan appears to overlap some areas where there have been environmental assessments of the Northern Gateway and the numerous liquified natural gas proposals.

The plan summary goes on to say:

The draft plan brings together science and Aboriginal knowledge, input from the technical staff of NCSFNSS (representing the Gitga’at, Gitxaała, Metlakatla, Kitsumkalum, Kitselas and Haisla Nations) and the Province. Key information and direction was provided by First Nations strategic marine use plans and existing provincial planning and policy documents.
Ecological, cultural and social and economic data sources were compiled and analysed by the joint technical team and contract support. Relevant background scientific reports and technical documents from the Pacific North Coast Integrated Management Area (PNCIMA) process were also used, along with the BC Marine Conservation Analysis. Additional information was drawn from government reports and publications, academic literature, industry or sector publications, discussions with experts and local knowledge. Advice was also incorporated from the North Coast Marine Plan Advisory Committee and public and stakeholder engagement.

The Pacific North Coast Integrated Management Area process was killed by the Harper government in the fall of 2011 . The decision to kill the PNCIMA was officially for budget reasons, but general speculation at the time was that Harper and then Natural Resources Minister Joe Oliver wanted to kill PNCIMA as one way of ensuring the government could push through the Northern Gateway project. The MAPP program was set up by the province and First Nations as a reaction to Harper’s decision.

Draft Marine Plan Summary (pdf)

Harper’s Northern Gateway strategy and why it will end up in a muddy mess

It appears that the Stephen Harper’s strategy for approving Northern Gateway has been revealed on background to The Globe and Mail’s Gary Mason. (Either it’s a revelation or a trial balloon).

It comes down to the idea that Harper will approve Gateway “in the national interest,” count on a vote split between the NDP and Liberals in British Columbia to avoid any consequences to the Conservative majority and then leave it up to Enbridge to actually get the job of building the pipeline and terminal project done.

Mason quotes “ a senior member of Mr. Harper’s government,” and while Mason doesn’t say what part of Canada the source is from, (unlikely in my view the source is from BC) what the member told Mason reveals that the Harper government is still mired in it the Matrix-world that has always governed its policy on Northern Gateway.

The first step, apparently coming in the next few days, is that the Harper government “rigorous” new tanker protocols for traffic along the west coast.

Tanker protocols
So the obvious question is, will these protocols be new or will the government simply be reannoucing paper policies that they did in the March 2013? How many of the recommendations of the tanker task force is the government actually going to accept?

Even if the protocols are new, just who is going to enforce those policies?

Mason says:

Even if Gateway and the Kinder Morgan expansion went ahead, he argued, B.C. would still only see about 60 per cent of the annual oil tanker traffic the neighbouring state of Washington deals with. And yet Washington has an exceptionally clean record when it comes to the safe transport of oil in and out of its harbours – this, he noted, while operating under marine safety regulations that are not as rigorous as the ones Ottawa intends to put in place for the shipment of oil along the West Coast.

There are a lot big problems with that statement.

First, there’s an organization that the Mason’s source may have heard of known as the United States Coast Guard. The United States rigorously enforces its “weak” regulations, while Canada’s Coast Guard is plagued by staff shortages and budget cuts.

Second, the State of Washington also rigorously enforces its environmental regulations, not only on the coast but across the state. I have been told by retired British Columbia forestry and environmental officials (not to mention Fisheries and Oceans) that there are often more state environmental watch dogs in most Washington State counties than in all of northern British Columbia where the Northern Gateway is supposed to be going.

The September 2013, report by the US National Oceanographic and Atmospheric Administration on the export of Canadian bitumen sands through the US shows that the Washington Department of Ecology is working on strengthening regulations for both pipelines and (where it’s in state jurisdiction) tanker traffic. The same report says the state of Alaska Department of Environmental Conservation is updating its plans and possible regulations in anticipation that bitumen filled tanker traffic from Kitimat would come close to the coast en route to Asia.

Third, the coast of northern British Columbia is more rugged and stormy than the waters off Washington.

Who pays?

The one factor that the urban media seems to ignore, is the big question.

Who pays?

Who pays to enforce the 209 conditions that the Joint Review Panel imposed on the Northern Gateway project?

If the Harper government announces new tanker regulations in the coming days, who pays to enforce those regulations?

There were no provisions in the February budget for enforcing the 209 conditions. Rather there were continuing budget cuts to the very departments that the JRP ruled must be involved in the studying, planning, implementation and enforcement of the 209 conditions, Environment Canada, Fisheries and Oceans and Transport Canada.

So while Mason says “The federal government will play its part in meeting the five conditions laid out by the B.C. government for support of the project,” the response must be “Show me the money!”

During the recent plebiscite campaign, Northern Gateway finally revealed its plans for the “super tugs” that will escort tankers along the coast and up Douglas Channel. Owen McHugh, a Northern Gateway emergency manager said, “Adding these four or five tugs to the north coast provides a rescue capability that doesn’t exist in this format. So for any large commercial vessel that is traveling on our coast, this capacity to protect the waters of the north coast.” Those tugs and Northern Gateway’s plans to station teams at small bases along the coast means that the company is, in effect, creating a parallel, private, coast guard on the BC Coast.

What about the Coast Guard itself? The Harper government has been gutting Coast Guard resources along the coast even before it had its majority. It closed and dismantled the Kitsilano Coast Guard station in Vancouver. There is more dependence on the Royal Canadian Marine Search and Rescue volunteers, who have to raise money locally for modern rescue boats which cost up to $750,000. The money that government was “generously” giving to RCMSAR had to be split up to 70 stations in 42 communities along the coast as well as its administrative and training staff.

And speaking of boats, what about Coast Guard vessels on the coast? As the Globe and Mail has reported, the government’s shipbuilding program is already over budget and behind schedule. The aim is Arctic/Offshore Patrol Ships and new destroyers. With the crippling of HMCS Protecteur that has raised the concerns about the already troubled supply ship program.

Does anyone notice what is missing from that list? What’s missing are better Coast Guard vessels just to police all the expected tanker traffic on the west coast (whether LNG or bitumen) and no mention of dedicated spill response vessels, which under the “polluter pay” policy will likely be left to private contractors (and hope that the ships are available at the time of a spill)

How will we know?

Then there is the question of how will people even know if the 209 conditions are being enforced; whether or not the reports demanded by the Joint Review Panel are going be sitting on the National Energy Board server and ignored.

There is every indication, given the government’s obsession with secrecy that until there is a disaster the Canadian public will never know what’s going on. Harper’s muzzling doesn’t just cover government scientists, it covers the lowest level of bureaucrats, as District of Kitimat Council found out when low level DFO bureaucrats refused to appear publicly before council to discuss the risk to the Kitimat River.

So the scenario is, according to Mason’s source

“I think once this decision is made, Enbridge could have shovels in the ground the next day,” the member said. “They are ready to go. This means the First Nations could start realizing profits from this right away, as opposed to the promised profits from LNG, which may never materialize. I think they need to think about that.”

First, as part of the blunders is that the Conservatives have always made is the assumption that eventually the First Nations of British Columbia can be paid off, ignoring the commitment of the First Nations, especially on the coast, to protect the environment that sustained them for thousands of years.

While the LNG market is volatile, the “member” forgets that most of the First Nations of British Columbia have opposed the Northern Gateway since Enbridge first floated the idea in 2001. The current LNG rush didn’t start until after Japan shut down its nuclear power plants after the March 2011 earthquake, The first major anti-Enbridge rally, “The Solidarity Gathering of Nations” was held at Kitamaat Village in May 2010.

Writing off BC

It appears that Conservatives, in their election strategy have already written off Gateway opponents:

Still, there is a raw political calculus that needs to be taken into account. Polls measuring support for the pr.oject in B.C. vary, but generally have shown that anywhere from 55 to 60 per cent of the province opposes Gateway and 40 to 45 per cent support it. Isn’t that enough to scare off a government that needs critical votes in B.C. to win another majority?
“Let’s say 60 per cent are against it,” he said. “And that vote splits between the Liberals and the NDP come the next election. Who are the 40 per cent going to vote for?”

As for the cabinet, it has consistently shown its contempt for northwestern British Columbia and that is unlikely to change.

Mason also speculates that Harper will approve Gateway to stick it to Barack Obama and the delays on Keystone XL. As he points out that’s a political, not an economic decision.

There are civil disobedience classes being held across northwestern BC this month. Access to Information requests by the Vancouver Observer revealed increased RCMP surveillance of the anti-Gateway movement. There has always been talk of a “war in the woods” if the pipeline project is forced on an unwilling population.

So it comes down to a question that Mason and the Conservatives are avoiding. Mason’s source says Northern Gateway is crucial to the national interest:

“At the end of the day, you have to do what’s right, not what’s politically expedient,” he said. “You have to ask: What’s in the best interests of all Canadians?”

So given all that will the Harper government leave Enbridge to tough it out on its own?

Highly unlikely.

But will the Harper government, with its bean counting obsession on balancing the budget be willing to pay for all that is needed?

Highly likely.

There’s lots of marine clay along the pipeline route, laid down by ancient oceans. That brings to mind just one word. Quagmire, not just the wet, sticky BC mud but a political quagmire.

Editorial Cartoon: Wanted: Used Klingon warbird

Ottawa announces upgrades to Douglas Channel, Kitimat, navigation systems

Smart Ocean Systems map — Map from the Smart Ocean Systems website showing navigation upgrades. The map also shows potential LNG development and what it calls “Tidewater Oil Exports” in Kitimat and Vancouver. (Smart Ocean Systems)

The federal government today announced that it is going to spend $9,127,000 through the Western Diversification Program to support “the development of Ocean Networks Canada’s (ONC) Smart Oceans BC program” to upgrade radar and other navigation aids on the BC coast.

The upgrades include adding the Automatic Identification System (AIS) ship tracking system, which means that those using a web-based ship tracker will be able to monitor major vessel traffic in Douglas Channel.

A news release from Michelle Rempel, Minister of State for Western Economic Diversification said:

The project will add small scale underwater observatories, high frequency coastal radars and an Automatic Identification System to ONC’s existing marine observatory footprint including near Port Metro Vancouver, Campbell River, Kitimat, the Douglas Channel waterway, as well as Prince Rupert.

The news release goes on to say an “expanded footprint” will contribute to what the Conservatives call “responsible resource development” by helping to prevent accidents, predicting and warning of natural hazards, and “improving overall marine operational situational awareness.”

The government says that IBM is developing a system to monitor the data streams from the hundreds of sensors that are being expanded as part of the Smart Oceans BC program. Improved data collection will allow modeling systems to better support disaster planning. In addition, highly qualified personnel will be trained in ocean analytics.

Additionally, SMEs will gain access to technology demonstrations and commercialization assistance, as well as international business development services offered by the ONC Innovation Centre.

The news release places special emphasis on Kitimat saying:

This project will allow for real-time monitoring of vessel traffic, waves, currents and water quality, in areas such as the Douglas Channel, a shipping artery leading to Kitimat.

The news release quotes David Fissel, Chair and Senior Oceanographer, ASL Environmental Sciences, Inc, as saying: “This substantial investment in Smart Oceans BC will also benefit British Columbia’s many ocean science and technology SME’s. Access to ONC’s observatories and their innovative technology provides a competitive advantage to BC companies seeking to expand their export sales. Our success in global markets also benefits from the support of the ONC Innovation Centre’s international business development services.”

The Smart Oceans website describes the project this way: “Smart Oceans BC is the next phase in the world-class Ocean Networks Canada system that will position Canada as a global leader in ocean technology that delivers science and information for good ocean management and responsible ocean use.”

It adds:

The Smart Ocean BC footprint will cover areas critical to Canada’s economic future including:

Strait of Georgia and Port of Vancouver
Proposed oil and gas export facilities located at the Port of Prince Rupert, Kitimat, Campbell River, Port Alberni, and Douglas Channel waterways
Associated shipping routes to the high seas

The announcement came just two days after the residents of Kitimat voted in a plebiscite against the Northern Gateway project. The ballot count from Saturday’s vote was 1,793 opposed versus 1,278 who supported the multi-billion dollar project — a margin of 58.4 per cent to 41.6 per cent.

Kitimat votes: High turnout expected for Gateway ballot but what will the results mean to Kitimat?

Members of the Haisla Nation wear No Enbridge t-shirts at the finals of the Kitamaat Open Basketball Tournament, April 6, 2014. (Robin Rowland/Northwest Coast Energy News)

A high turnout is expected Saturday for the non-binding plebiscite where residents of the District of Kitimat can, perhaps, say yes or no to the Enbridge Northern Gateway project. In some ways, it all depends on how people interpret the convoluted question.

Warren Weychasen, Kitimat’s Deputy Administrative Officer said Thursday 910 people voted during advance polls on April 2 and April 9, compared to 470 over the two days of advance voting in the 2011 municipal election.

Even who can vote has can be the matter of heated debate. Members of the Haisla Nation who live in Kitamaat Village feel strongly that they should have a voice, even though legally they live outside the municipal boundaries. “It’s our land they’re talking about,” one Haisla member, who wouldn’t give his name, said Friday as he was getting off the Village bus at City Centre.

The District also decided to allow residents of Kitimat who have been here longer than 30 days to vote, even if they are not Canadian citizens.

Another group that can’t vote, many from outside the northwest region, are living at the Rio Tinto Alcan Kitimat Modernization Camp or at smaller camps for the developing LNG projects. An informal poll of those workers at City Centre Friday showed that if camp workers had been allowed to cast a vote, many would have voted “yes,” something the opponents of Northern Gateway said they feared would overwhelm local residents.

The $6.5 billion project would see two pipelines, one carrying oil sands bitumen from Alberta to the port of Kitimat, and a second carrying a form of natural gas used to dilute the bitumen from Kitimat to Alberta. The bitumen would then be loaded onto tankers for shipment to Asia along environmentally sensitive areas of the British Columbia coast.

Enbridge Vice President Janet Holder talks about the Northern Gateway project at an Open House April 8. (Robin Rowland/Northwest Coast Energy News)

Northern Gateway’s campaign has concentrated on the promise of 180 permanent direct local jobs worth $17 million and more spinoff jobs for contractors and suppliers. The company also promises that the District will receive $5 million in property taxes.

Northern Gateway also emphasized its commitment to safety and the environment, saying that the National Energy Board Joint Review Panel that held two years of hearings on the project, has made many of the company’s voluntary commitments a mandatory part of the conditions for granting permission to go ahead.

The main opponent, Douglas Channel Watch, maintains that the risk from either a tanker accident or pipeline breach is too high for the small number of jobs Northern Gateway will bring to the community.

Advance voting — District residents vote in the advance poll, Wednesday, April 9. (Robin Rowland/Northwest Coast Energy News)

Controversial question

Even the question, as chosen by the District of Kitimat Council, is controversial, because it focuses on the 209 conditions placed on the project by the Joint Review Panel:

Do you support the final report recommendations of the Joint Review Panel (JRP) of the Canadian Environmental Assessment Agency and National Energy Board, that the Enbridge Northern Gateway project be approved, subject to 209 conditions set out in Volume 2 of the JRP’s final report?

After the district council decided on that question, debate on the wording continued through several council sessions in January and February.

Public delegations, some from Douglas Channel Watch, told council that there should be a simple yes or no question.

On January 13, Donny van Dyk, Northern Gateway’s local manager for coastal aboriginal and community relations, told council that the company preferred a series of simple questions, because “We avoid an adversarial feeling plebiscite and we generate dialogue and debate amongst the plebiscite but also so we as a proponent can come away with value and create a better project.”

Council rejected a proposal for a series of simple of questions, leaving voters to decide on whether or not they supported the Joint Review recommendations. That raised the question of whether voters would make their choice on some of the provisions of the report and not the project itself.

What does it mean?

That means that even Council is unsure of what the vote will mean.

The main reason for holding the non-binding plebiscite is that it fulfills a promise from an all candidates meeting during the municipal election in November 2011, where every candidate agreed to “poll” the citizens of Kitimat on Northern Gateway.

After the new council took office, on Jan. 16, 2012, it voted to hold some sort of poll or vote to find out whether the community supports the Enbridge Northern Gateway pipeline project. At the time, it was unclear after the vote how the survey would take place.

For the almost two years of the Joint Review Panel, the District of Kitimat did little more than act as spectators when the JRP was in town, claiming its neutrality policy precluded participation.

The District could have participated without violating the neutrality provisions, but chose not to do so. It’s now clear that decision angered the Haisla Nation, as Chief Counsellor Ellis Ross said in a letter to the media, “the District stood by and did nothing”

The debate in the District of Kitimat Council on March 3 showed that even members of council were uncertain what the vote would mean.

Councillor Corinne Scott said, “As much as we wanted to know what the feeling of the community is, all we know so far is that we’re split. What the percentage of split is, we don’t know,” said Scott.

Councillor Phil Germuth said the vote is not on the project itself, but on the Joint Review decision. “We’re asking about 209 conditions that nobody understands fully. Even Enbridge doesn’t fully understand them.”

Councillor Edwin Empinado said once the results are known, that would give the District “more bargaining power” in future dealing with company and the federal government, a sentiment echoed by Douglas Channel Watch which admits the vote will do little more than send a message to Ottawa.

It was Northern Gateway’s decision to put major resources into the campaign that raised the profile of what was originally intended as way of discovering the feeling in the small community. With the ruling from the Joint Review Panel that Northern Gateway is in the national interest and the final decision in the hands of the federal cabinet, it is equally uncertain what effect, if any, the vote will have on Ottawa.

Acrimonious debate

Throughout the hearings, most people in Kitimat kept their views to themselves. When the campaign began in earnest, which in turn, triggered a fierce and often acrimonious debate on social media, mainly on the Facebook group Kitimat Politics, showing the divide in the community, although it appears from the comments that there are more opponents than supporters on the forum. The e-debate on Kitimat Politics is continuing up to the last minute Friday night and will likely get hotter once the results are known.

The adversarial feeling that van Dyk had said the company wanted to avoid was amplified in the past month when Northern Gateway began an aggressive public relations campaign with newspaper ads, glossy brochures and a door-to-door campaign by employees, some brought in from Alberta.

When news of Northern Gateway’s campaign effort spread on social media, which in turn prompted a counter campaign using the hashtag #adsforkitimat. Ads created by people from across BC were posted on Facebook and YouTube.

Campaign signs on Haisla Blvd. (Robin Rowland/Northwest Coast Energy News)

Campaign spending

Douglas Channel Watch positioned itself as the David vs. the Enbridge Goliath.

On Monday, Murray Minchin of Douglas Channel Watch told Council, “When Kitimat and northern BC residents found out how many resources Enbridge was pouring into their Kitimat plebiscite advertising campaign, some of those citizens made unsolicited donations to Douglas Channel Watch. This has allowed our small group to mount an advertising campaign of our own.” Minchin said donations went up after the group launched a website adding, “People began handing us money on the street while we were putting up lawn signs. Somebody, anonymously, left a $2,000 money order in one of our member’s mailboxes.

On Thursday, Douglas Channel Watch released its advertising budget showing that the organization spent $10,970.00 on print media ads, $792.92 on supplies, and has an outstanding debt of approximately $2,600.00 in radio ads, for a total of $14,362.92. Minchin challenged Enbridge to release its own ad budget.

Ivan Giesbrecht, a spokesperson for Northern Gateway said in an e-mail to the media that the company “will discuss our advertising spending after it’s over [the plebiscite] this weekend.” Late Friday, Giesbrecht released partial figures to the Northern Sentinel, saying the company had spent $6,500 in print and $3,100 on radio advertisements during the campaign.

Those figures don’t include the glossy brochures Northern Gateway distributed in the community, sponsored posts on Facebook, or the signs the dot the streets of Kitimat.

Douglas Channel Watch did put up signs. Many were recycled from earlier protests, came from Friends of the Wild Salmon or were created by volunteers from as far away as Smithers.

Giesbrecht told the Sentinel said the company felt that the discussion in the community about which side of the vote has spent more had “become a distraction” from the real issues. But instead of a discussion on jobs and taxes, on Friday night there was a raging debate on Kitimat Politics on Facebook about the Gateway release on its spending and what was missing from those figures.

Owen McHugh of Northern Gateway — Northern Gateway’s Owen McHugh explains the “supertugs” during a Powerpoint presentation at the Open House (Robin Rowland/Northwest Coast Energy News)

Super tugs

On a cold and rainy Tuesday afternoon, Northern Gateway hosted an Open House and barbeque at the Rod and Gun. Northern Gateway not only outlined the jobs they say the project would create, but emphasized how far along the company is coming in meeting BC Premier Christy Clark’s condition for a “world-class” tanker spill prevention and response system.

Janet Holder, Enbridge Vice President of Western Access described what she and Northern Gateway staff called “super tugs,” 50 metres long. “One will be tethered to the tanker, one will be following the tanker,” Holder said. “So there will be two escorts whenever that tanker is in Canadian waters. The important thing about the tugs is not just they can move that tanker if it get into difficulty. It also contains emergency response equipment right with the tankers. We’ll also have strategically placed barges with emergency response equipment along the shorelines. We will be bringing in an enormous amount of equipment before we even start operating.”

Owen McHugh, a Northern Gateway emergency manager said, “Adding these four or five tugs to the north coast provides a rescue capability that doesn’t exist in this format. So for any large commercial vessel that is traveling on our coast, this capacity to protect the waters of the north coast.” The tugs will also have firefighting capability. “The salvage capability that BC describes as ‘world-class,’ Northern Gateway is bringing that to the north coast,” McHugh said.

The plebiscite has raised tensions between the District of Kitimat and the nearby Haisla First Nation, which adamantly opposed to Northern Gateway.

Haisla anger

Haisla chief counsellor Ellis Ross wrote a scathing letter to local media, saying, in part:

Deciding to hold a referendum at this late date is a slap in the face to all the work done by the Haisla Nation on this project. The Haisla Nation dedicated time and money toward testing Northern Gateway’s evidence and claims about safety and environmental protection, while the District stood by and did nothing.

The review process for this project has already left town, with the District taking no position on the project. Still undecided on what its views are on the project, the District now proposes to conduct a poll, instead of examining the facts in the JRP process. A poll to vote on a JRP report that we view as wrong to begin with including the flawed process itself!

On Sunday, the Haisla Senior Women were playing the Prince Rupert Thunder in finals of the annual Kitimat Open Basketball Tournament which has the aim of promoting “Cultural Warming” among everyone living in northwestern BC. At half time, members of the Haisla Nation distributed black T-shirts labelled with “No Enbridge” to spectators in the bleachers. After the Haisla won the game, 67 to 45, as Kitimat mayor Joanne Monaghan was called on to congratulate the winners, she was greeted by chants of “No Enbridge, No Enbridge.”

At Tuesday’s Open House, one of the audience asked Enbridge officials, including Janet Holder, “Why are you ignoring the Haisla?”

Donny van Dyke responded, “We are actively working to strengthen that relationship….” Then when the questioner persisted, van Dyke said, “With this question perhaps it’s better to take it offline.” Then he asked, “Are there any other questions?”

Special meeting

Monaghan has said the council will wait for the outcome before taking a stand. District Council has called a special meeting on Monday night to consider the results of the plebiscite.

For years the District of Kitimat has been officially neutral but voting over the past years shows that council is evenly split on Enbridge issues with swing votes sometimes going one way and sometimes another on what are often four to three votes.

The federal cabinet has until mid-June, 180 days after the release of the Joint Review decision to approve the panel’s findings. It is expected by most observers that Prime Minister Stephen Harper will give the go ahead. That doesn’t mean the project will start immediately, the Joint Review findings already face about a dozen court challenges from First Nations and environmental groups.

Minchin said Saturday’s non-binding plebiscite “is not going to affect the Prime Minister’s decision per se. But it’s very important for Enbridge to squeak out a win here in Kitimat. It’s just my feeling that this proposal is associated with way too many risks for very little gain.

“If it comes back as a ‘no’ from Kitimat, it’s a clear signal back to Ottawa that they really need to rethink their priorities. For the amount of bitumen that would be coming here and exported as a raw product’ that same amount of bitumen would provide a couple of thousand direct jobs in Alberta. It seems crazy to be shipping off all our raw resources without any upgrading, it’s like raw log exports.”

Enbridge Vice President Janet Holder, speaking at the Open House said, “This is not a pie in the sky type project, it is real, we do have the shippers behind us, we have First Nations behind us.”

Outreach continues

No matter what happens Saturday, both sides will continue to push their positions.

Holder said she would not speculate on the outcome of the plebiscite, “We’re going to communities throughout British Columbia, talking to citizens, providing the information, listening to their concerns. We’re just continuing with that outreach and we’ll continue with that outreach over the next year.”

How Kitimat voters cast their ballots depends on factors that go beyond the simple environment versus economy and jobs argument, so the outcome of Saturday’s plebiscite is far from certain.

In 2010, West Fraser’s Eurocan paper mill closed, with the loss of 500 jobs, a devastating blow to Kitimat’s economy. The Eurocan closure, the earlier closure of a Methanex plant and cutbacks at the Rio Tinto Alcan smelter and the abandonment of mills and mine across the northwest in recent years have left many people skeptical of corporate promises of jobs. Others believe the Northern Gateway project, along with proposed Liquefied Natural Gas projects in Kitimat and Prince Rupert will bring a much needed boost to a struggling economy.

Even though Kitimat has been an industrial town since the aluminum smelter was built in the 1950s, most residents fish in the Kitimat River, boat on Douglas Channel and hike or hunt in the back country, which means environmental concerns are always high on the agenda. There are fears even among some supporters of Northern Gateway of an environmental disaster.
Northern Gateway, which has admitted that its relations with northern communities started off badly in the early stages of the project, has a lot of catching up to do, no matter what the outcome of the plebiscite.

Nathan Cullen, NDP MP for Skeena Bulkley Valley and Opposition Finance Critic came to Kitimat last week to assist Douglas Channel Watch with its door-to-door campaign. “There will be PhDs written on how Enbridge blundered this,” Cullen told reporters at the time.

(Spelling of van Dyk was corrected. We regret the error)