Why the Supreme Court decision on Tsilhqot’in Rights and Title may change the world

One small step for the Supreme Court of Canada, one giant leap for mankind.

A barely-noticed* part of the unanimous Supreme Court of Canada decision on Thursday recognizing the rights and title of the Tsilhqot’in First Nation to their traditional territory may—may— change the way resource companies operate, not just in Canada but around the world.

Spirit of Kitlope
Members of the Spirit of Kitlope Dancers, VIcki Amos, Sandra Grant, Gail Amos and Roberta Grant, celebrate the Supreme Court decision at the Hailsa-owned old hospital site, June 26, 2014 (Robin Rowland/Northwest Coast Energy News)

The ruling isn’t just about consultation, reconciliation and accommodation, it’s about the future.

A close reading of the decision, written by Chief Justice Beverly McLaughlin says the Crown, in its relations with First Nations, cannot “deprive future generations of the benefit of the land.”

While the ruling applies only to First Nations, it upholds the First Nations’ concept of “stewards of the land” for the future and thus could protect the environment for all future generations, aboriginal and non-aboriginal, in Canada and perhaps around the world.

The ruling says:

Aboriginal title, however, comes with an important restriction — it is collective title held not only for the present generation but for all succeeding generations. This means it cannot be alienated except to the Crown or encumbered in ways that would prevent future generations of the group from using and enjoying it. Nor can the land be developed or misused in a way that would substantially deprive future generations of the benefit of the land. Some changes — even permanent changes – to the land may be possible. Whether a particular use is irreconcilable with the ability of succeeding generations to benefit from the land will be a matter to be determined when the issue arises.

While the Supreme Court ruling was about a case in British Columbia, where previous decisions have shown that in that province, aboriginal title was not extinguished at the time of European settlement and, what the court calls, “declaration of sovereignty,” by the colonial powers, the decision is already seen as applying to First Nations across the country where they can prove long term use of the land.

Already there are those in the business community and among the conservative pundits who are raising the alarms about First Nations blocking resource development.

Perhaps, just perhaps, some big corporations are quietly approving the Supreme Court decision because it gives responsible companies a roadmap for their operations, that roadmap will, as the years go by, reduce, not increase, uncertainty.

Some companies, including the world’s biggest corporations are now thinking about the future. It is likely those companies are already planning new procedures and practices that will comply with the Supreme Court’s requirement of consultation and consent on First Nations’ traditional territory.

In May, at an LNG event in Vancouver, I was speaking to a high ranking energy executive whose responsibilities cover half the planet.

“Everything has changed in the past five years,” he told me. “Once all we had to do is talk to presidents and prime ministers, now we listen to everybody.”

What changed, he said, was the rise of social media, Facebook and Twitter.  “In one case five women in one small town shut down a project that would have been worth millions.” (He would not tell me the specifics and assured me it was true but he wasn’t prepared to give the details because it wasn’t his company that was involved).

“Not all my colleagues agree with me,” he said, “But in the end it’s good for business, if we genuinely engage with a community, we actually save on costs and get into profit sooner.” He said that smart companies in the energy sector have staff constantly monitoring social media, not to identify “enemies” but so top management can be aware of growing issues that may complicate their future operations.

This company generally, so far, has good relations with First Nations in British Columbia (although its record elsewhere in the world has been questionable at times in the past).

Kildala Arm
The entrance to the Kildala Arm off Douglas Channel, September, 2013. (Robin Rowland/Northwest Coast Energy News)

If truly responsible resource and other companies either willingly or are compelled to change their practices and investment decisions on First Nations’ land so that those projects consider future generations, and still make a profit, (which my source says they can) then it is likely that the companies will then adopt those practices in other parts of Canada where Rights and Title are not an issue and then around the world.

To use a marketplace phrase, it isn’t going to be “an easy sell.” For more than half a century now, the world has been plagued by the idea from Milton Friedman and other economists that a corporation has only one responsibility to its bottom line and “shareholder value.” With companies that still follow the no responsibility culture, comes the race to the bottom and the environmental degradation we have seen increasing in recent years.

As The Globe and Mail reported, the Business Council of British Columbia, an intervenor, said in its submission

Business groups say the Tsilhqot’in’s approach to title threatens the economy. “A territorial approach undermines the ability of corporations, and indeed First Nations, to ensure the global competitiveness that is required to attract capital … within natural resource sectors dependent on the land base,” a coalition of B.C. business groups, intervening in the case, told the Supreme Court in its written argument.

For years now global competitiveness has been used an excuse for deliberately ignoring or turning a blind eye to practices that “substantially deprive future generations of the benefit of the land.”

Even if no high court in any another country matches or cities the Supreme Court of Canada decision, (and they should for the rights of all indigenous people) smart companies will increasingly recognize their responsibility not to “deprive future generations of the benefit of the land.”

If those companies don’t change,  as the years go on and the environmental crisis worsens, courts in other nations will likely cite the Supreme Court of Canada and force those companies to be responsible.

In the long term, in the future cited by the Chief Justice, those companies that do work toward a true “benefit of the land” for everyone will have a competitive advantage, perhaps not in the coming years, but certainly in the coming decades.

To use another phrase, respecting the rights and title of First Nations and the stewardship of the land will be a “net benefit” to Canada in the 21st century, even if the bean counters don’t believe it.

Legal recognition of the concept of stewardship by a high court might also save the planet from total disaster.

*(Barely-noticed: I can only find one media account that mentions in passing, an op ed opinion piece in the Globe and Mail by Vancouver lawyer Albert Hudec Aboriginal court ruling won’t resolve real-world resource issues)

The Supreme Court decision on Tsilhqot’in Rights and Title is a shot across the bow of the Alberta bound National Energy Board

The response to the Joint Review Panel decision on the Northern Gateway, beginning in December and continuing until this Canada Day,  both in the public and in the media  is sharply divided by the Rocky Mountains.

A lof of  Albertans,   most of  the energy companies and many in the media, especially the Toronto-based business press,  keep telling Canadians that the NEB is an independent, quasi-judicial body, that carefully weighs the scientific and other evidence before coming to a conclusion.

Prime Minister Stephen Harper stands up in Question Period and from his prepared script also claims the  JRP and NEB are independent bodies.

Most of  those writing about the  attitude of the National Energy Board have never attended a single  hearing,  As for the Joint Review,.  those from the major media who  did attend  were only there for  the opening and closing sessions.

Members of the Joint Review panel make notes at Kitamaat Village (Robin Rowland)
Members of the Northern Gateway Joint Review Panel, left to right, Kenneth Bateman, chair Sheila Leggett and Hans Matthews make notes at the June 25, 2012 hearings at the Haisla Recreation Centre, Kitamaat Village. A map of Douglas Channel can be seen behind the panel. (Robin Rowland/Northwest Coast Energy News)

 

In British Columbia, those attended the Northern Gateway Joint Review sessions saw a strange and arcane bureaucratic system with rules of evidence and procedure often tilted toward a proponent in the energy sector.

Those rules of evidence were created for the cosy club atmosphere of the NEB in Calgary where mostly there are friendly hearings attended only by the proponents and energy sector lawyers. Those same rules were infuriating to those in northwest British Columbia trying and failing to persuade the JRP to take seriously many of  the concerns of the region. The rules of evidence and procedure were baffling to lawyers practicing in BC; even the highly experienced lawyers from the BC Department of Justice were chewed out by the JRP in Prince George for not following proper procedures.

Most egregious was the JRP’s refusal to consider the late evidence on the growing number of humpback whales in Douglas Channel.

Humpback whale in Douglas Channel
The tail fins of a humpback whale are seen in Douglas Channel near Bish Cove, as a fishing boat speeds toward Kitimat harbour in a rain storm on Aug. 21, 2013. (Robin Rowland/Northwest Coast Energy News)

The JRP seemed to believe that time stopped at the evidentiary deadline, and although it acknowledged that Northern Gateway was a 50 year project,  the panel didn’t need to know anything new.

A careful reading of the two volumes of the Joint Review Panel report and decision clearly shows that JRP finding was not, as one columnist called it, a triumph of science over emotion, but a proceeding that was biased from the outset to find in favour of Enbridge. It is clear that even though the Joint Review Panel did impose 209 conditions on Northern Gateway, reading those almost 500 pages one sees time and time again that Northern Gateway’s evidence and assurances were accepted at face value, while the panel treated the evidence and testimony from opponents with a much higher level of skepticism.

Moving to Calgary

One of my sources once told me that the “NEB is nothing more than an extension of the Petroleum Club.” In the 1991 budget, then Prime Minister Brian Mulroney moved the NEB headquarters from Ottawa to Calgary as a political gift to Alberta.

At that time the move was also seen as practical, Alberta was still complaining no one in Ottawa was listening to it. So if the Conservative government moved the NEB to Calgary, it would be there listening to the oil patch.  NEB offices were scattered across the country, consolidating them in Calgary seemed, at the time, to be a way of saving taxpayers’ money and enhancing internal communications.

Seen now, about 25 years later, it’s clear the NEB move from its Ottawa headquarters and regional offices to Calgary was a disaster waiting to happen. Over the past quarter century, despite its claims of independence, the NEB and its staff have become so embedded in the oil patch energy culture of Calgary that (probably subconsciously) the NEB  has shown that it is largely incapable of really taking seriously the culture of British Columbia on issues such as the Northern Gateway and Kinder Morgan projects. The NEB Calgary culture is also colliding,with the concerns and culture of other parts of the country as diluted bitumen pipelines head eastward.

That embedding in Alberta isn’t going to change. It might have been a good idea to move the NEB headquarters back to Ottawa but it’s too late for that. The NEB this week is moving to new quarters in Calgary  at a cost to taxpayers of a staggering $21 million.

The Conservative omnibus bills that gutted environmental protection and speed up the review process has made things much worse–at least until this week.

Now the Supreme Court has sent a shot across the bow of the full steam ahead National Energy Board, compelling the board to put much more weight on the concerns of First Nations.

The decision upholding the Tsilhqot’in claim to its traditional territory means the NEB and any future joint review panel (whether involving multiple federal agencies or federal agencies and a province) are going to have to take the concerns of First Nations and indeed all Canadians a lot more seriously—and the future of the planet as well, as described in the first part of this analysis. Chief Justice Beverly McLaughlin wrote that on First Nations` traditional territory:

that it is collective title held not only for the present generation but for all succeeding generations. This means it cannot be alienated except to the Crown or encumbered in ways that would prevent future generations of the group from using and enjoying it.

“Future generations” is the key phrase.

Future generations could undermine that whole world view of the Joint Review Panel, since the panel so casually dismissed the fears of a major disaster on the coast, saying it was “unlikely” and could be “mitigated.”

The JRP basically had a so-what attitude to British Columbia, arguing that since parts of the British Columbia environment had already been degraded any future environmental problems would be minimal and could be “mitigated.”

Public interest

While in the introduction to its definition of the Public Interest, the JRP says

If approved and built, the Enbridge Northern Gateway Project could operate for 50 years or more. Sustainable development was an important factor in our environmental assessment and our consideration of the public interest. The project would have to meet today’s needs without compromising the ability of future generations.

Sounds like that might match the Chief Justice. But, as the old saying goes, the devil is in the details. And just a few paragraphs later, the JRP says:

Our assessment of the project’s effects on residents and communities Considering Northern Gateway’s project design, its commitments, and our conditions, we concluded that the project’s potential effects on people’s land, water, and resource use could be mitigated. We were not persuaded that construction and routine operations of the project would have a negative effect on the social fabric of communities in the project area. We also were not persuaded that the project would adversely affect the health and well being of people and communities along the route or in coastal areas. We found that the net overall economic effects of the project would be positive and would provide potential benefits and opportunities to those individuals and businesses that choose to participate in the project.

“Trust Enbridge”

The JRP’s attitude toward a major disaster was “trust Enbridge.”

We found that some level of risk is inherent in the Enbridge Northern Gateway project, and that no party could guarantee that a large spill would not occur. We found that a large spill, due to a malfunction or accident, from the pipeline facilities, terminal, or tankers, is not likely.

We found that Northern Gateway has taken steps to minimize the likelihood of a large spill through its precautionary design approach and its commitments to use innovative and redundant safety systems, such as its commitments to address human error, equipment failures, and its corporate safety culture. These commitments and all others made by the company

Oh well, the ecosystem will recover eventually—a conclusion that could be reached only by ignoring the evidence from Prince William Sound, site of the Exxon Valdez spill.

We found that, in the unlikely event of a large oil spill, there will be significant adverse environmental effects, and that functioning ecosystems recover through mitigation and natural processes.

We found that a large oil spill would not cause permanent, widespread damage to the environment. The extent of the significant adverse effects would depend on the circumstances associated with the spill. Scientific research from past spill events indicates that the environment recovers to a state that supports functioning ecosystems similar to those existing before the spill. We found that, in the unlikely event of a large oil spill, there would be significant adverse effects on lands, waters, or resources used by residents, communities, and Aboriginal groups.

We found that, in rare circumstances, a localized population or species could potentially be permanently affected by an oil spill. Scientific research from a past spill event indicates that this will not impact the recovery of functioning ecosystems.

In other words, some communities, probably aboriginal communities, would have be sacrificed in the public interest and the economics of Alberta while the economy of that part of British Columbia would be destroyed.

Will the JRP have to start over?

The environmental law community and First Nations leaders are already taking a look at another paragraph in the Supreme Court judgement. Paragraph 92 in lawyer speak.

Gerald Amos
At the celebration of the Supreme Court decision, on June 26, Gerald Amos welcomed the suggestion from lawyers that the ruling could force a re-examination of Northern Gateway. (Robin Rowland/Northwest Coast Energy News)

One of the many reports comes from West Coast Environmental Law which noted in an e-mail

[T]he Tsilhqot’in decision, Canada’s highest court brings home the implications of this for Enbridge and other project proponents:

Once title is established, it may be necessary for the Crown to reassess prior conduct in light of the new reality in order to faithfully discharge its fiduciary duty to the title-holding group going forward.

For example, if the Crown begins a project without consent prior to Aboriginal title being established, it may be required to cancel the project upon establishment of the title if continuation of the project would be unjustifiably infringing.

And what about the overhaul of environmental legislation in 2012 to smooth the way for pipeline and other industrial development?

The court notes: “Similarly, if legislation was validly enacted before title was established, such legislation may be rendered inapplicable going forward to the extent that it unjustifiably infringes Aboriginal title.”

Reset

In other words, the Supreme Court decision resets everything.

It could nullify the recent decision by the Prime Minister to permit the Northern Gateway to go ahead. Or it could mean, especially given the number of court challenges just to the JRP, that, in light of the Tsilhqot’in decision the panel will be ordered by a court to go back to the drawing board and reconsider its findings.

Then there are the pending challenges to the Harper decision allowing the Northern Gateway to go ahead. Sources told Northwest Coast Energy News that the first of a number of court challenges were to be filed last week. It is likely that after the holiday weekend, lawyers will be rewriting their filings and their briefs in light of the Tsilhqot’in decision and presenting the Federal Court with those challenges some time in July.

The justices of the Supreme Court did allow a public interest exemption on the use of First Nations land for a larger purpose, but there must now be genuine consultation and the public interest will likely have be proven beyond a reasonable doubt, it can’t just be the whim of a prime minister with a tame, unquestioning caucus who decides what is in the public interest.

Who consults whom?

In the decision, Chief Justice McLaughlin wrote:

Governments and individuals proposing to use or exploit land, whether before or after a declaration of Aboriginal title, can avoid a charge of infringement or failure to adequately consult by obtaining the consent of the interested Aboriginal group

and later

The right to control the land conferred by Aboriginal title means that governments and others seeking to use the land must obtain the consent of the Aboriginal title holders. If the Aboriginal group does not consent to the use, the government’s only recourse is to establish that the proposed incursion on the land is justified under s. 35 of the Constitution Act, 1982.

Compare that again with what the JRP said. As with the environmental impact it begins by saying:

The Panel finds that the magnitude, extent, and potential impacts of this project required an extensive program of public consultation. The Panel considers thorough and effective consultation to be a process that is inclusive of, and responsive to, all potentially-affected groups and individuals.

Then the JRP says:

The Panel notes that, among potentially-affected parties, there were differing perspectives on what constitutes a thorough and effective process of consultation. There were also different views among some parties about how consultation should occur, and their roles and responsibilities during consultation.

And then:

The Panel believes that it is critical for all parties to recognize and understand their respective roles and responsibilities for achieving effective dialogue during consultation. The Panel noted the principles of thorough and effective consultation at the beginning of this chapter. The Panel finds that these principles require that a process must provide timely, appropriate, and effective opportunities for all potentially-affected parties to learn about a project, provide their comments and concerns, and to discuss how these can be addressed by the applicant.

So what does it mean?

The JRP starts off by giving Northern Gateway a slap on the wrist:

The applicant [Enbridge] must be genuinely responsive. Affected parties have an ongoing and mutual responsibility to respond to opportunities for consultation, to communicate concerns they may have, and to discuss how these can be addressed.

But then it goes on in the same paragraph:

Consultation requires trust, mutual respect, and relationship-building. All parties have an obligation to seek a level of cultural fluency, in order to better understand the values, customs, needs, and preferences of the other parties involved in the consultation process. All parties may be required to adjust their expectations in response to the information, concerns, and interests raised and considered through the process. The Panel observed that this approach did not always occur in this proceeding.

Get the phrase “all parties.” It is clear here that the JRP is taking on the First Nations and other opponents for not seeing Northern Gateway’s point of view, since it accepts, as seen below, Northern Gateway’s contention that it is doing a good job with consultation,

And the word “trust.”  Again the Alberta-bound JRP (the panel had no members from British Columbia, two from Alberta, one from Ontario)  are saying “trust Enbridge.”

Unfortunately after a decade of operating in the northwest,  and despite its spin, Enbridge has failed time and time again to establish trust with First Nations  and it has equally failed to establish trust with a significant number non-aboriginal residents of the northwest.

The companies developing LNG projects have, for the most part, established a level of trust.

The joke up here  is now so old it’s a cliche (but still unknown to the eastern media) where an LNG executive says, “We look at what Enbridge did and do the exact opposite.”

The Panel accepts Northern Gateway’s view that consultation is a process which should ensure that all parties are better informed through consultation, and that it involves being prepared to amend proposals in light of information received. In this regard, the Panel notes that Northern Gateway made numerous changes to the design and operation of the project in response to input provided by the public, landowners, governments, and stakeholders

In fact, Northern Gateway is still fumbling the ball.

It is true that Northern Gateway did change its plans and put another $500 million into the plans for the project–after a lot of public pressure  and growing controversy  during the JRP hearings over its plans.

Sheila Leggett
JRP Chair Sheila Legget during the final arguments in Terrace, June 17, 2013. (Robin Rowland/Northwest Coast Energy News)

Equally telling was Northern Gateway’s dismissal in its final arguments (arguments accepted by the JRP)  that there was no earthquake hazard in the region, despite two major earthquakes at Haida Gwaii and southern Alaska just months earlier,  both of which shook Kitimat.

In the final oral arguments, Northern Gateway’s lawyer Richard Neufeld summarily dismissed the fears of the Haida and Heiltskuk First Nations about destruction of the herring spawning beds because, he said,  first, the chances of a tanker disaster were unlikely and second, even if there was a tanker disaster it was even more unlikely that it would occur during the spawning season. (Not that the spawning  season matters, herring beds in San Francisco Bay are still damaged years after a spill there).

Now with the Tsilhqot’in decision, Enbridge can no longer summarily dismiss those fears. The companies who have proposed liquefied natural gas projects  are meeting with anyone, including avowed opponents, and opening dialogues, even if both sides continue to disagree. Despite its spin, accepted by the political pundits and eastern business media, those who live in the northwest know Northern Gateway’s consultations and engagement, so far,  have mostly been with friendly groups and friendly audiences.

The Supreme Court decision is going to change that attitude in the coming weeks. If Enbridge wants Northern Gateway to go ahead, the company is going to have to genuinely engage with First Nations. Given all the damage created by Enbridge over the past decade, that engagement is unlikely to change anything.

The Supreme Court decision is going to have one more consequence.

Eventually, in a few years,  the decision will negate that stupid attitude from the conservative media and some in the business community that the people of northwestern British Columbia are against all development.  That was never true but it’s a convenient excuse for those columnists and conservatives not to question their own assumptions.

If the reporters and columnists had bothered to come up here, if the press-release dispatching business leaders had  bothered to leave their executive suites, they’d know what northwestern BC wants is responsible and sustainable development, not quick in and out profits.

The Supreme Court decision means that any future industrial development in the northwest will be much different from anything seen in the past because First Nations must be involved from the beginning.

Given its sorry track record, it is unlikely that Enbridge will be part of that development. but others will  profit, yes profit, from that failure.

In the coming years it is also likely that there will be a new approach to development from the National Energy Board after they begin to see their narrow oil-patch friendly approach and rulings struck down by the courts quoting the Tsilhqot’in decision.

Haisla purchase old hospital site from province. District agrees to help major new development

The Haisla Nation have purchased the old hospital site in downtown Kitimat from the BC government and are planning what will likely be a multi-million dollar development across from City Centre that will include a condominium-hotel, a new shopping mall and a restaurant.

Premier Christy Clark came to Kitimat Tuesday to announce the sales agreement along with Haisla Nation Chief Counsellor Ellis Ross. The agreement also involves the District of Kitimat indicating the beginning of building a new phase in the sometimes strained relationship between the district council and the First Nation.

Ellis Ross Christy Clark
Haisla Nation Chief Counsellor Ellis Ross presents BC Premier Christy Clark with a gift to mark the sale of the hospital lands to the First Nation. (Robin Rowland/Northwest Coast Energy News)

On the day that the Conservative government approved the Northern Gateway pipeline project, all sides pointed to the hospital site agreement as an example of partnership that could lead to development of liquefied natural gas and other industrial projects in BC’s northwest.

The old pink hospital, built when there were plans for a Kitimat with 50,000 people was closed in 2002 when the new Kitimat General Hospital was opened. The old building was dismantled and then imploded in 2005 at a cost of $1.9 million.  Five years later, in 2010, the land was transferred from Northern Health to the province.

That began four years of negotiations with provincial ministries, the Haisla Nation and the District of Kitimat, so that the First Nation could purchase the land which is on their traditional territory.

The land has sat idle since 2005, although it is prime real estate as the economy of Kitimat begins to boom with the growth of industrial projects like the $3.3 billion Rio Tinto Alcan Kitimat Modernization project at the aluminum smelter as wells the Shell-led LNG Canada and the Chevron-led Kitimat LNG projects.

“It’s an important land transfer from the perspective of the community because this land has sat empty for too long,” Clark said. “It’s time for economic development. It will be such a big part of creating lots of energy, lots of jobs in the community but it’s really a demonstration of the partnerships that we’re going to have to have to make LNG and prosperity work in British Columbia”

Ellis Ross
Haisla Chief Counsellor Ellis Ross speaks at the ceremony transferring the old hospital lands to the Haisla Nation (Robin Rowland/Northwest Coast Energy News)

Haisla Nation Chief Counsellor Ellis Ross told reporters, “This is an example of how things should be done” in regard to First Nations rights and title.  “Case law dictates how consultation must take place and if you respect and abide by them I think it proves we can actually come to a solution. BC’s not going anywhere, Canada’s not going anywhere, and First Nations aren’t going anywhere. None of us are going to get 100 percent of what we want. Where do we find that middle ground? It’s possible to do it if you actually take a page out of BC’s book and learn from the mistakes they made ten years ago to today where they’re doing things right.”

Both remarks were clearly intended to send a message to the federal government and Enbridge about consultations on the controversial Northern Gateway pipeline and tanker project.

Clark concentrated on showing the connection between the land deal and future liquefied natural gas development.

Kitimat Ground Zero

“There are over 13 LNG proposals for British Columbia, all of them are at various stages of developments and if anyone of those and we certainly hope it will be more than one reaches final investment decision, that is going to mean a lot of change,” Clark said.

“To make sure this happens, it means opening our doors, opening our doors to First Nations and of course the Haisla were ready and eager to walk through that door, working with labour to make sure we can build a workforce, working with educational institutions across the province to make sure we are
ready to be sure that British Columbians are first in line for those jobs.”

Christy Clark
Premier Christy Clark at the Kitimat ceremony (Robin Rowland/Northwest Coast Energy News)

“This site is really about nation building, it’s about community building and it’s about partnerships. This transfer of land will enable the Haisla to commercially develop this piece of property and that is going to mean huge opportunities in this community. It’s going to open up economic growth. It’s going to be a big benefit for Kitimat and the entire surrounding region on this piece of land that has sat empty for far far too long.

“We’re going to continue to work with the Haisla that have shown such vision and courage in leading the argument for LNG across this country and we want to make sure, as Ellis says that this property gets developed as soon as you possibly can. We’re very happy to work with the region of Kitimat, with industry with labour with First Nations to make sure we’re growing this opportunity for the future.

“We’re here because this was the day that worked for everybody. If there is a message for the country is that liquefied natural gas is a nation building opportunity. Ground zero is right here in Kitimat, this community is going to build our country the way that energy has built the country in the past. We have the resources in British Columbia to create hundreds of thousands of jobs and prosperity for every Canadian. I really want Canadian to know that this is not just a BC project. It’s not just a northwest BC project. It’s all these projects that are of national importance.

Ross did not put a cost on the project, since the first step is to do a survey for environmental remediation of the site.

An agreement in April between the Haisla and the District of Kitimat on how the lands will be developed was hailed at the ceremony as a step in healing the sometimes strained relationship between the District and the First Nation.

Ross praised the District of Kitimat for “their willingness to sit down and work with us,” adding that Tuesday’s agreement will lead to discussions on other issues.

Ross said Tuesday’s agreement is “a small step but significant” step in making the Haisla Nation members “self-determining from the ground up,” so they can get jobs without being dependent on either the Haisla Nation Council or other levels of government.

 

Spirit of Kitlope dancers
The Spirit of Kitlope dancers opened the land transfer ceremony. (Robin Rowland/Northwest Coast Energy News)

Northern Gateway

At the end of her speech, Clark deliberately brought up Northern Gateway, saying that “no heavy oil” project, including the Enbridge Northern Gateway, has met the province’s five conditions to proceed.

“We settled the five conditions, they’re very clear, they’ve been on the table for a very long time now,” Clark said. “It is up to the proponent in the private sector to figure how, if and when they’re going to be able to meet them. None of them have yet. So I want to assure people, that whatever decision the federal government announces today, our five conditions are not changing and none of the proposals have met those conditions, so we don’t support any of the projects as they stand.”

On the other hand, Clark said the proposed liquefied natural gas projects are “meeting all those five conditions. The companies that have invested in natural gas here in British Columbia are going to show the country that you can do business in British Columbia and we do it in a way that protects our environment and respects First Nations. We are proving we can do it, because we’re proving we can do it with LNG,”

Ross repeated that the Haisla are opposed to the Northern Gateway Project and that should the government’s decision approve the project, the next step is to go to court. He said that consultation by both the federal government and by Enbridge since the first contact in 2009 has been inadequate.

He told reporters, “One of the five conditions is that aboriginal interests are met and on behalf of the Haisla, I can say that one of the conditions that without a doubt that has gone wrong. The rest of the conditions are up to BC.”

 

 

Conservative government approves Northern Gateway project

As expected, the federal government has approved the Northern Gateway project.  In a news release this afternoon, Natural Resources Canada said that the “Government of Canada”  had accepted the 209 conditions set by the Joint Review Panel for the Northern Gateway.

In recent years, Stephen Harper’s government has usually issued news releases headlined “the Harper government.” The  headline on the NRC website also emphasizes the 209 JRP conditions and not the approval of the overall project, which is mentioned formally in the last line instructing the National Energy Board to issue the ” Certificates of Public Convenience and Necessity.”

 

Government of Canada Accepts Recommendation to Impose 209 Conditions on Northern Gateway Proposal
Proponent must demonstrate how conditions will be met, undertake further consultations with Aboriginal communities as part of next steps in regulatory process

Ottawa
Natural Resources Canada

The Honourable Greg Rickford, Canada’s Minister of Natural Resources, today issued the following statement outlining the Government of Canada’s decision after the Joint Review Panel’s independent review of the Northern Gateway Pipelines proposal to construct and operate two parallel pipelines to transport crude oil between Bruderheim, Alberta and Kitimat, British Columbia, and a marine terminal at the port of Kitimat. The proposal was submitted by Northern Gateway Pipelines Limited Partnership to the National Energy Board (NEB) for an environmental assessment and regulatory examination in 2010. This constituted the beginning of the regulatory process.

The Joint Review Panel for the Northern Gateway Project was an independent body established by the Minister of the Environment and the National Energy Board to review the project. The Panel’s rigorous science-based review included feedback from over 1,450 participants in 21 different communities, reviewing over 175,000 pages of evidence and receiving 9,000 letters of comment. The NEB is responsible for regulating some 73,000 kilometres of pipelines transporting crude oil, natural gas and petroleum products across Canada.

“In December 2013, the Joint Review Panel found that construction and operation of the Northern Gateway Pipelines project is in the public interest, subject to 209 conditions being met by the proponent. After carefully reviewing the report, the Government accepts the independent Panel’s recommendation to impose 209 conditions on Northern Gateway Pipelines’ proposal.

“Today constitutes another step in the process. Moving forward, the proponent must demonstrate to the independent regulator, the NEB, how it will meet the 209 conditions. It will also have to apply for regulatory permits and authorizations from federal and provincial governments. In addition, consultations with Aboriginal communities are required under many of the 209 conditions that have been established and as part of the process for regulatory authorizations and permits. The proponent clearly has more work to do in order to fulfill the public commitment it has made to engage with Aboriginal groups and local communities along the route.”

The National Energy Board will now issue Certificates of Public Convenience and Necessity.

 

 

LNG Canada chooses international consortium for front-end engineering

Sammy Robinson
Haisla Chief Sammy Robinson opens the LNG Canada FEED signing ceremony watched by Hiroyuki Shimizu from CSFW LNG Constructors, left, and Wim Ravesloot, Project Director – LNG Canada, right, May 20 2014. (Robin Rowland/Northwest Coast Energy News)

LNG Canada has chosen CFSW LNG Constructors, a consortium of four engineering companies Constructors as its main contractor for Front End Engineering and Design (FEED) as well as project execution services for the proposed liquified natural gas export facility.

The contractors will begin FEED activities for the LNG Canada project on June 1, 2014.

Final go ahead is still subject to a Final Investment Decision which will come, yay or nay, sometime in the next couple of years.

One of the partners in CFSW familiar to Kitimat residents is WorleyParsons.(company website) Others are Chiyoda, a Japanese company specializing largely in LNG construction (Chiyoda website  in Japanese), Foster Wheeler, an international company with expertise in LNG, off shore oil and similar projects and SAIPEM an Italian based engineering company again with energy industry expertise.

WorleyParsons is also a contractor with the Apache/Chevron Kitimat LNG project.

The announcement was made at the LNG Canada facility at the old Methanex office building in Kitimat. Company representatives, members of council and representatives of the Haisla Nation, including Chief Sammy Robinson were at the ceremony.

LNG Canada’s Susannah Pierce said, subject to the final investment decision, Shell and its partners “We want to make this the first LNG project out of British Columbia, serving the energy needs of Asia.” (repeating a similar statement she made in November 2013 at the environmental assessment open house .)

Wim Ravesloot
Wim Ravesloot, Project Director – LNG Canada at the FEED signing ceremony in Kitimat, May 20 2014. (Robin Rowland/Northwest Coast Energy News)

Wim Ravesloot, LNG Canada Project Director said one of the reasons for choosing the consortium was “experience in developing modular construction.”

Rio Tinto Alcan’s Kitimat Modernization project is also highly dependent on modular construction, with many components of the new aluminum smelter are produced in China, brought to Kitimat and then used to create the new potlines and related facilities. Publisher David Black also recently told Kitimat audiences that the reason for the possible location of his refinery near Kitimat, rather than Alberta, is due to the need for large scale modular construction.

“So we are here today to make a statement that we are here to deliver our project in a safe way without any incidents and with out having any impact on the environment.” Raveslook said. “We also want to make a statement that we want to develop this project responsibly with close cooperation with the local people that live here in this town, in the village, here in Haisla lands where we are a guest and hopefully in the future as a respected neighbor.”

Pierce introduced two documents that outlined what she said is LNG Canada’s commitments to the community.

The first said:

LNG Canada is committed to an approach that the First Nations and local communities in the northwest realize economic benefits from this project. These benefits may come in the form of direct employment opportunities for qualified workers and potential contract opportunities for competitive businesses. Most of the employment and contract opportunities during the construction phase will be through CFSW….as a result CFSW and LNG Canada is committed to work together so that local residents can become qualified to work for LNG including investing in skills training, developing long ter partnerships with local education and training facilities in the region to develop and maintain a skilled workforce to support LNG development….a key component of this contract with the community is for you to develop the skills and training for sustainable employment at this project when it proceeds.

The second concerned Health, safety and the environment.

Health, safety and environment is integral in everything at LNG Canada. Our HSE objectives are Goal Zero, meaning no harm to people, no uncontrolled releases to the environment. We comply with life saving rules we respect and care for people and the environment. We are engaged, committed and lead by example. We set clear expectations for staff and contractors. We communicate openly and honestly, encouraging everyone to speak up. We are learning organization with a focus on continuous improvement. We hold each other accountable, share information and celebrate success.

Related

FosterWheeler News release

Kitimat Council endorses David Black’s Kitimat Clean refinery proposal

David Black
Publisher David Black chats with members of the environmental group Douglas Channel Watch, prior to Kitimat Council, May 5, 2014. (Robin Rowland/Northwest Coast Energy News)

District of Kitimat Council Monday endorsed, in a six to one vote, publisher David Black’s proposal for a refinery at Onion Flats north of Kitimat.

The motion, proposed by Councillor Mario Feldhoff was:

 

That the District of Kitimat write a letter to the Prime Minister, copying the Premier of BC, endorsing Mr. David Black’s Kitimat Clean refinery proposal and asking that it be supported  by senior levels of government, thereby reducing  environmental impacts and risks associated with the Northern Gateway, while significantly increasing economic value-added  and associated taxation benefits to the Pacif Northwest, BC and Canada.

The lone dissenting vote came from Councillor Rob Goffinet, who wanted a more generic motion, dropping direct references to David Black’s proposal and replacing it with the term “value added.”

Before the vote, Black made a presentation to Council outlining details of the proposal. Black will be hosting a public meeting on the proposal at Riverlodge at 7:30 p.m. Tuesday.

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.

LNG Canada final investment decision 18 to 24 months away, CEO says. Has concerns about air shed, pipelines

LNG Banada
The LNG Canada site at the old Methanex plant in Kitimat, April 29, 2014. (Robin Rowland/Northwest Coast Energy News)

The final investment decision for the LNG Canada project is 18 to 24 months ahead,  Andy Calitz, CEO LNG Canada said Wednesday.

Calitz said that the project must go through a series of what are called “stage gates” before the respective corporate boards of the partners make that decision. Calitz said the project has already completed three stages, identifying the project, testing the idea, selecting what exactly the proponents are going to do. “Then there is the so-called design stage when all the design experts come in. We are hundred per cent certain we are tackling the next phase.” It is when the design phase is complete and then depending on world market conditions, that the final investment decision will be made.

Caltiz also pointed to one reason that while the LNG Canada project is moving ahead slowly,it appears to be moving faster than the rival Chevron-Apache Kitimat LNG project. That’s because the four investors in the LNG Canada project, Shell, PetroChina, Mitsubishi and KoGas (Korea Gas) are the customers, shipping their own product via the proposed TransCanada Coastal Gaslink pipeline, to the jointly owned terminal that will be built on the old Methanex site in Kitimat.

Caltiz’s comments came at a Vancouver news conference called to announce a joint venture agreement between the four partners. Under today’s agreement, Shell has increased its stake in the project to 50 per cent from 40 per cent; PetroChina will hold 20 per cent and each of Kogas and Mitsubishi Corporation holding 15 per cent. PetroChina and Shell increased their holdings by buying from the other partners.

Calitz said, “They each bring their own gas, they each put their own capacity in the pipeline to be transported by Transcanada, they together own the energy plant, then they lift the cargo in the same proportion, taking in to their own potrfolios, for every cargo that is produced, say for every 100,000 cubic metres, 15 will go Kogas 15 to Mitsubishi 20 will go Petrochina and 50 will go to Shell.”

One reason, along with the volatility and uncertainty of the liquified natural gas market that the Chevron Apache Kitmat LNG project appears to have stalled is a lack of customers. Kitimat LNG has said it is looking for equity partners similar to what was said today about the LNG Canada project.

Air shed

Asked a general question about environmental concerns, Calitz singled out local concerns about the air shed quality in the Kitimat valley and similar concerns up in Prince Rupert, saying, “We are at all times very sensitive to our environmental impact… In the case of the airshed around the LNG plant, it is being quantified, it;s being looked at cumulatively in Prince Rupert, in Kitimat. We also make sure that we work with the government about the sensitivity of air shed impact to the communities of Terrace and Kitimat. I can confirm your point it is high on our agenda. We understand the issues we all developed energy projects before and will continue to be vigilant.”

He said there were three main concerns that would affect the final investment decision: “Where does the Asian gas price go? Two will we have enough labor and what will the labor rates and labor productivity be and three between the various companies that have a lot of experience in Canada specifically TransCanada pipelines into Kitimat, and the other pipeline company going into Prince Rupert, we need to get those pipelines through the mountains.”

While it may be reading too much into one statement, it appears that LNG Canada and its partners are taking a more careful approach to pipeline construction than the Enbridge Northern Gateway project where that company was always certain its plans for crossing the rugged northwest BC mountains would yield few problems.

Russia crisis

The other major factor governing any decision on LNG plants in British Columbia is the volatile marketplace.

Reporters at the Vancouver news conference asked Caltiz about reported talks between China and Russia where Russia, now facing economic sanctions for its actions against Ukraine, would ship natural gas to China and if that would affect BC plans to export LNG to China.

“One can always draw linkages between any two subjects but I would say the linkage is between very weak and non existant,” Calitz said. “The closeest that anyone can come to a linkage is do the events in Europe and Ukraine increase the likelihood of a major pipeline between Russia and China, that’s for Russia and China to decide, but apart from that very very weak linkage.”

That state of prices remains a concern among reports that several Asian nations including the giants India and China plan to form a sort of buyers club, to drive down the high price of natural gas, which in Asia is a percentage of the price of crude oil, while in North America, market conditions have driven the price of natural gas much lower.

“There is a very active daily debate about prices paid for LNG in Asia. That debate, I am sure, will continue as long as the Henry Hub [the North America market price] is at $4 and Europe is at $8 and Asia based is somewhat from 12 to 18 dollars, depending on whether its contract or spot.

“If you ask is that of concern, then every project here will be affected by changes in price, whether the price goes up or down. will impact the final investment decision and it will impact in the way say the Pacific Northwest or the Kitimat LNG project.

“We as an energy project in British Columbia, like all other energy projects, like even from East Africa are looking at production costs and what the Asian prices are. So by 2015, what happens to that price and what happens in those negotiations will feature in the decisions of all the players.”

In a prepared statement, Calitz said,”“While we are in the early evaluation process and a decision to build the project is still a while away, this agreement reinforces our commitment to developing an LNG facility in British Columbia and allows us to proceed with the next steps in our project assessment, We will need to continue to work closely with the provincial and federal government to ensure that the project is economically viable, as well as working closely with First Nations, the local communities, and regulatory agencies, and move forward on a number of commercial agreements and contracts. We remain cautiously enthusiastic about the potential opportunity in B.C. and look forward to exploring it further.”

Premier Christy Clark, who made a brief appearance at the news conference before leaving to a prepare for another sales trip to Asia, was more optimistic, saying: “The private sector doesn’t make billion dollar investment decisions if they don’t think there isn’t going to be a return on it. It’s not for me … to determine what the market looks like, it’s the private sector that does that and I think the answer to them is you would not see those major companies taking the next step signing a joint venture agreement today if they didn’t think there was a market for BC gas.

“The other advantage that BC has that we will never sacrifice is our reputation as a dependable, reliable, honourable trading partner. When people do business in British Columbia on natural gas, they know we won’t play politics with them.They know we will keep our promises about where the tax levels will be and how they’re going to be treated as trading partners. That is a tremendous advantage for us in an unstable world.”

 

Temporary foreign workers

Asked by a reporter about LNG projects using temporary foreign workers, Clark replied. “The thing about temporary foreign workers is that temporary workers should come for temporary jobs, And in the process of building these huge facilities and pipelines with peaks in construction that we will not be able to meet within British Columbia or even Canada. There’s no question about that.
“Our view is very much British Columbians first, and the way to do that is to make sure people have all the skills training that they need to take advantage of those jobs, second reach out to the rest of the country and then third work with the unions and other organizations when needed to support temporary foreign workers coming in.

“We’ve had remarkable consensus with the trade unions, recognizing the need for some temporary foreign workers at some point in the construction of these projects. That’s why we’ve gone about planning it so carefully because we want to make sure when we will need workers in what skill set in what month and what years. We’re really breaking it down so we can be sure we have exhausted British Colunbia’s potential to fill those jobs before we start to look across the country or around the world.”

LNG Canada signing
LNG Canada joint venture agreement signing cermony in Vancouver, April 30, 2014, left to right, Jorge Santos Silva, Executive Vice President Shell Upstream Americas Commercial, Bi Jingshuang, Director – Legal Department of China National Oil and Gas Exploration and Development Corporation (CNODC), representing PetroChina, Andy Calitz, CEO, LNG Canada, Hiroki Haba, Vice President, Natural Gas Business Division, Mitsubishi and Jongkook Lim, Vice President, LNG Business Department, Korea Gas. Standing wathc are Christy Clark, Premier of British Columbia and Rich Coleman, Minister of Natural Gas Development. (LNG Canada)

Projects on the go

The news release listed the many LNG projects under way from the four partners.

Shell currently has ten LNG projects in operation with approximately 26.1 million tonnes per annum (mtpa) operational LNG capacity, in nine countries, and two projects
with an additional 7.5 mtpa under construction. Shell is also one of the largest LNG vessel operators in the world, with interests in around a quarter of the LNG vessels in operation.

Phoenix Energy Holdings Limited (an affiliate of Petro-China Investment (Hong Kong) Limited) (“PetroChina”) is China’s largest oil and gas producer and supplier, as well as
one of the world’s major oilfield service providers and a contractor in engineering construction. PetroChina officially launched three LNG projects in June 2004, two of
which started operations in the first half of 2011.

Kogas Canada LNG is the world’s largest LNG importer. As the nation’s sole LNG provider, KOGAS currently operates three LNG terminals and a nationwide pipeline network, supplying natural gas fromaround the world to power generation plants, gas-utility companies and city gas companies throughout the country.

Since pioneering the first LNG import to Japan from Alaska in 1969, Mistubishi handles 40 per cent of Japan’s LNG imports and has successfully built a portfolio of LNG export investments across Australia, Indonesia, Malaysia, Brunei, Oman, Russia and North America.

With the joint venture agreement, the group has incorporated a new federal corporation, LNG Canada Development Inc. The project’s corporate offices will continue to be located in Vancouver and Calgary, with the project office based in Kitimat.

Although pegged as a “major milestone” in the development of LNG Canada, the Kitimat social media rumour mill was correct in speculation Tuesday that the news conference concerned a corporate name change and sale of assets.   The event was probably more a kickoff for Christy Clark’s upcoming tour of Asia.

 

Kitimat Council votes 4 to 1 to oppose Enbridge Northern Gateway

Kitimat Council vote
Four members of District of Kitimat Council voted April 22 to uphold the town plebiscite and oppose Enbridge Northern Gateway. (Robin Rowland/Northwest Coast Energy News)

District of Kitimat Council voted four to one Monday night to officially oppose the Northern Gateway pipeline, terminal and tanker project.

After a lengthy debate, Mayor Joanne Monaghan, Councillors Phil Germuth, Mario Feldhoff and Rob Goffinet voted in favour of the motion. Councillor Edwin Empinado voted against the motion. Councillors Mary Murphy and Corrine Scott were absent due to illness.

Part of the debate was a search for unanimity and that meant simplifying the original motion from Phil Germuth, eliminating references to the Haisla Nation and “neighboring communities,” largely at the insistence of Mayor Monaghan.

Germuth’s original motion read:

That Mayor and Council support the results of the April 12th plebiscite, the Haisla and our neighboring communities by adopting a position of being opposed to the Enbridge Northern Gateway project.

What passed is:

That Mayor and Council support the results of the April 12th plebiscite by adopting a position of being opposed to the Enbridge Northern Gateway project.

Council was in a search for unanimity, so Germuth eventually agreed to a friendly amendment that eliminated the references to neighboring communities. Mayor Monaghan, in the debate, said that Germuth’s full motion was against the spirit of the plebiscite, which she argued was just for Kitimat.

In opening the debate, Germuth specifically told council that it was time for Kitimat to join and support both the Haisla Nation and neighboring communities Terrace, Prince Rupert and Smithers which had earlier voted to oppose the Northern Gateway project.

Germuth noted that Kitimat is an industrial town and does support industrial projects but for him and the people who voted against the project, Enbridge Northern Gateway is the wrong project.

Mario Feldhoff, who earlier in the year had said he supported Northern Gateway, told council that with the plebiscite result, it was time for council to support the will of the majority of Kitimat residents. Feldhoff went on to say that he had reservations about rejecting Gateway. He added that he hoped that newspaper magnate David Black’s plan for a refinery at Onion Flats outside Kitimat would bring thousands of jobs to the region.

Rob Goffinet
At one point during the lengthy debate, Councillor Rob Goffinet sat back and buried his head in hands. (Robin Rowland/Northwest Coast Energy News)

Rob Goffinet pointed out residents of Kitimat, if anyone, were experts on the Northern Gateway, after five years of presentations before council from Enbridge Northern Gateway, from Douglas Channel Watch and others. He said that Kitimatians also had the opportunity to read the full report from the Joint Review Panel. Overall, Goffinet said he was in “favour of certain industrial development,” but Northern Gateway failed the test. He called on Prime Minister Stephen Harper to respect the decision by the people of Kitimat.

Edwin Empinado asked council to consider five questions, mainly about potential changes in the future for scientific and technical advances. Empinado also worried that saying no to Northern Gateway was beyond the powers of a municipality. He said he would vote against the motion because he preferred council to remain neutral.

Monaghan said she was having difficulty with Germuth’s motion because she felt that it went further than what Kitimat had voted for. She also said she supports the David Black refinery, believing that it would bring much need jobs to the region.

At the point it looked as the motion would pass three to two and council struggled to find a compromise. Feldhoff suggested an amendment dropping the references to the Haisla and neighbors. Goffinet pointed out that if the simplified motion passed, Kitimat would be joining the Haisla, Terrace, Prince Rupert and Smithers anyway. Germuth then agreed to make the amendment “friendly.”

Empinado maintained his position against the motion, saying that the motion would not allow the council to make changes in the future. Empinado stuck by his position that there must be scientific rigour applied to the Northern Gateway issue and his belief that the motion did not allow for future changes.

Feldhoff then said there was nothing in the motion that precluded council for re-examining the issue in the future.

Monaghan then called the motion and it passed with Empinado’s dissenting vote.

Both Feldhoff and Monaghan said that they had been approached by people who did not vote but who were in favour of Northern Gateway. Feldhoff said he hoped that would be a lesson for those who do not turn out at the polls.

Monaghan had opened the debate by asking that it be tabled until Councillors Scott and Murphy could be present. That motion was defeated 4 to 1.

 

Rio Tinto donates $19 million Pebble Mine stake to charity: Financial Times

Britain’s Financial Times is reporting that Rio Tinto has donated its stake in Alaska’s controversial Pebble Mine to two Alaska charities, one run by a local First Nation.

Rio Tinto donates Alaska copper mine stake to charities  (registration/subscription required)

Rio Tinto had a 19 per cent stake in Northern Dynasty, a Vancouver-based mining company whose main asset is the Pebble project in Alaska.

The FT reports that Pebble is one of the world’s largest known undeveloped copper resources. The project is mired in disagreement because of concern over its potential effect on salmon stocks.

The FT report says the US Environmental Protection Agency said that it would investigate whether fisheries in the region could be protected. The EPA investigation stops any award of environmental permits for the mine in the meantime, and could lead to a permanent block on the project by the EPA.

According to the report, Rio Tinto said it would donate its shares in Northern Dynasty – worth about $19 million Canadian – to two charitable foundations in Alaska: the Alaska Community Foundation, which funds educational and vocational training, and the Bristol Bay Native Corporation Education Foundation, which supports educational and cultural programmes in the region.

The Pebble Mine would be near rich salmon rivers which flow into Bristol Bay, Alaska. Opponents of the project fear that the giant mine would irreversibly damage salmon stocks for centuries to come.

Related:

Pension funds pressure Rio Tinto to dump out of controversial Alaska Pebble Mine