First Nations historical herring harvest offers “deep time perspective” to modern managers, SFU study says

SFU archaeologists
Iain McKechnie and Dana Lepofsky examine ancient herring fish bones that tell the story about how gigantic herring fisheries were for thousands of years in the Pacific Northwest. (SFU)

The herring, now dwindling on on the Pacific Coast, was once “superabundant” from Washington State through British Columbia to Alaska and that is a warning for the future, a new study says.

A team of scientists lead by Simon Fraser University argue that the archaeological record on the Pacific Coast offers a “deep time perspective” going back ten thousand years that can be a guide for future management of the herring and other fish species.

An archaeological study looked at 171 First Nations’ sites from Washington to Alaska and recovered and analyzed 435,777 fish bones from various species.

Herring bones were the most abundant and dating shows that herring abundance can be traced from about 10,700 years ago to about the mid-nineteenth century with the arrival of Europeans and the adoption of industrial harvesting methods by both settlers and some First Nations.

That means herring were perhaps the greatest food source for First Nations for ten thousand years surpassing the “iconic salmon.” Herring bones were the most frequent at 56 per cent of the sites surveyed and made up for 49 per cent of the bones at sites overall.

The study was published online Monday, February 17, 2014, in Proceedings of the National Academy of Sciences (PNAS). Simon Fraser University researchers Iain McKechnie, Dana Lepofsky and Ken Lertzman, and scientists in Ontario, Alberta and the United States are its co-authors.

The study is one of many initiatives of the SFU-based Herring School, a group of researchers that investigates the cultural and ecological importance of herring.

“By compiling the largest data set of archaeological fish bones in the Pacific Northwest Coast, we demonstrate the value of using such data to establish an ecological baseline for modern fisheries,” says Iain McKechnie. The SFU archaeology postdoctoral fellow is the study’s lead author and a recent University of British Columbia graduate.

Co-author and SFU archaeology professor Dana Lepofsky states: “Our archaeological findings fit well with what First Nations have been telling us. Herring have always played a central role in the social and economic lives of coastal communities. Archaeology, combined with oral traditions, is a powerful tool for understanding coastal ecology prior to industrial development.”

The researchers drew from their ancient data-catch concrete evidence that long-ago herring populations were consistently abundant and widespread for thousands of years. This contrasts dramatically with today’s dwindling and erratic herring numbers.

“This kind of ecological baseline extends into the past well beyond the era of industrial fisheries. It is critical for understanding the ecological and cultural basis of coastal fisheries and designing sustainable management systems today,” says Ken Lertzman, another SFU co-author. The SFU School of Resource and Environmental Management professor directs the Hakai Network for Coastal People, Ecosystems and Management.

Map of First Nations sites with fish bones
Map of First Nations’ archaeological sites with high numbers of fish bones. Herring is abundant in sites throughout the Strait of Georgia. In 71% of sites, herring makes up at least 20 per cent of the bones found at the site. (SFU/PNAS)

Heiltsuk tradition

The paper says that the abundance of herring is additionally mirrored in First Nations’ place
names and origin narratives. They give the example of the 2,400-y-old site at Nulu where herring
made up about 85 per cent of the fish found in local middens. In Heiltsuk oral tradition, it is Nulu where Raven first found herring. Another site, 25 kilometres away at the Koeye River, has only has about 10 per cent herring remains and is not associated with herring in Heiltsuk tradition.

(In an e-mail to Northwest Coast Energy News, McKechnie said “there is a paucity of archaeological data from Kitimat and Douglas Channel. There is considerable data from around Prince Rupert, the Dundas Islands and on the central coast Namu/Bella Bella/ Rivers Inlet area and in southern Haida Gwaii.”)

The study says that the archaeological record indicates that places with abundant herring were consistently harvested over time, and suggests that the areas where herring massed or spawned were more extensive and less variable in the past than today. It says that even if there were natural variations in the herring population, the First Nations harvest did not affect the species overall.

It notes:

Many coastal groups maintained family-owned locations for harvesting herring and herring roe from anchored kelp fronds, eel grass, or boughs of hemlock or cedar trees. Herring was harvested at other times of the year than the spawning period when massing in local waters but most ethnohistorical observations identify late winter and springtime spawning as a key period of harvest for both roe and fish.

The herring and herring roe were either consumed or traded among the First Nations.

Sustainable harvests encouraged by building kelp gardens,wherein some roe covered fronds were not collected, by minimizing noise and movement during spawning events, and by elaborate systems of kin-based rights and responsibilities that regulated herring use and distribution.

Industrial harvesting

Industrial harvesting and widespread consumption changed all that. Large numbers of herring were harvested to for rendering to oil or meal. By 1910, the problem was already becoming clear. In that year British Columbia prohibited the reduction of herring for oil and fertilizer. There were reports at that time that larger bays on the Lower Mainland were “being gradually deserted by the larger schools where they were formerly easily obtained.”

But harvesting continued, in 1927 the fishery on eastern Vancouver Island, Columbia, processed
31,103 tons of herring. The SFU study notes that that is roughly twice the harvest rate for 2012 and would also be about 38 per cent of the current herring biomass in the Strait of Georgia.
In Alaska, reduction of herring began in 1882 and reached a peak of 75,000 tons in 1929.

As the coastal populations dwindled, as with other fisheries, the emphasis moved to deeper water. By the 1960s, the herring populations of British Columbia and Washington had collapsed. Canada banned herring reduction entirely in 1968, Washington followed in the early 1980s.

In the 1970s, the herring population off Japan collapsed, which opened up the demand for North American roe, which targeted female herring as they were ready to spawn. That further reduced the herring population so that the roe fishery is now limited to just a few areas including parts of the Salish Sea and off Sitka and Togiak, Alaska.

The First Nations food, social and ceremonial herring fishery continues.

Government fishery managers, scientists, and local and indigenous peoples lack consensus on the cumulative consequences of ongoing commercial fisheries on herring populations. Many First Nations, Native Americans, Alaska Natives, and other local fishers, based on personal observations and traditional knowledge, hypothesize that local herring stocks, on which they consistently relied for generations, have been dramatically reduced and made more difficult to access following 20th century industrial fishing

Deep time perspective

The SFU study says that some fisheries managers are suggesting that the herring population has just shifted to other locations and other causes may be climate change and the redounding of predator populations.

But the study concludes, that:

Our data support the idea that if past populations of Pacific herring exhibited substantial variability, then this variability was expressed around a high enough mean abundance such that there was adequate herring available for indigenous fishers to sustain their harvests but avoid the extirpation of local populations.

These records thus demonstrate a fishery that was sustainable at local and regional scales over millennia, and a resilient relationship between harvesters, herring, and environmental change that has been absent in the modern era.

Archaeological data have the potential to provide a deep time perspective on the interaction between humans and the resources on which they depend.

Furthermore, the data can contribute significantly toward developing temporally meaningful ecological baselines that avoid the biases of shorter-term records.

Other universities participating in the study were the University of British Columbia, University of Oregon, Portland State University, Lakehead University, University of Toronto, Rutgers University and the University of Alberta.

 

RELATED:

BC First Nations Opposition to Commercial Herring Fisheries supported by DFO

Fisheries minister ignored advice from own scientists

Oil spill caused “unexpected lethal impact” on herring, study shows

Haisla ask cabinet to postpone Northern Gateway decision to allow for adequate consultation with First Nations

Haisla NationThe Haisla Nation are calling on the federal cabinet to postpone its decision on the Northern Gateway project to allow time for adequate consultations with First Nations, according to the Haisla response to the Joint Review Panel, seen by Northwest Coast Energy News.

The Joint Review Panel report and recommendations were released on Dec. 19, 2013 and the cabinet has 180 days from that point to recommend approval of the project.

The Haisla argue that Section 54 of the National Energy Board act allows the Governor-in-Council, the federal cabinet, to extend the timeline if it wants to, if recommended by the Minister of Natural Resources.

So far, the Harper government has refused to extend the deadline. The Haisla response document says Chief Counsellor Ellis Ross spoke to Minister of Natural Resources Joe Oliver on the telephone requesting the extension, but, according to the document, all Oliver did was point to the legislation that calls for the 180 day response to a joint review report.

The Haisla response document also has a long lists of what the Haisla say are flaws in the Joint Review Panel report.

Consultations

In correspondence with the Haisla, Brett Maracle, Crown Consultation Coordinator at the Canadian Environmental Assessment Agency for the Northern Gateway project, says:

the process set out by the Government of Canada in the Aboriginal Consultation Framework was finalized after receiving and carefully considering input from Aboriginal groups….The Government of Canada believes the process outlined in the Aboriginal Consultation Framework provides for a deep level of meaningful consultation with Aboriginal groups with Phase IV being the final step prior to a decision being made on the Project.

The Haisla dispute there has been any “deep level of meaningful consultation,” citing in the document a long list of attempts to engage the federal government with little or no response.

In their response, the Haisla Nation Council says:

Canada, has, to date, refused to engage in meaningful consultations with the Haisla Nation. Instead Canada has unilaterally imposed what it calls a “deep level meaningful consultation” process which is fundamentally flawed for a number of reasons…

The document lists attempts by the Haisla to engage with ministers and government departments including requests for a meeting with then Environment Minister Peter Kent, prior to the opening of the JRP formal hearings in Kitamaat Village in January 2012. Although the Haisla requested a meeting with Kent, several times in 2011, no meeting ever occurred. It was not until April 19, 2012, four months later that Kent replied to the Haisla saying he had asked the President of the Canadian Environmental Assessment Agency to meet with the First Nation prior to the start of the JRP hearings. However, it was apparently impossible to schedule such a meeting in December, 2011.

To which the Haisla reply:

For over six years, Canada ignored Haisla Nations requests for meetings. Once the JRP’s oral hearings process commenced, Canada further closed the door on any opportunity for a meeting until the JRP Report was release. This refusal to consult was baseless. The ongoing JRP process was not a rational or justifiable basis for Canada’s refusal to consult…

Canada has yet to meet with the Haisla Nation to discuss the proposed project, other than to tell the Haisla Nation it is only engaging through the JRP process for now. This is not consultation. It is, perhaps, at best an initial step towards a consultation process.
Ignoring the Eyford report

Joe Oliver
Natural Resources Minister Joe Oliver (front far right) answers questions after his news conference at the Northwest Community College Long House, March 19, 2013. Douglas Eyford is standing behind Oliver. (Robin Rowland/Northwest Coast Energy News)

In March 2013, Natural Resources Minister Joe Oliver flew to Terrace for a photo op to announce the appointment of Douglas Eyford to consult First Nations on the Northern Gateway project. Oliver then flew back to Ottawa without meeting anyone in the region. Eyford’s report Forging Partnership Build Relationship was released in November, 2013.

The Haisla say:

Mr. Eyford’s Report recommended that Canada should consider undertaking early engagement to address Aboriginal interests that may not be dealt within a regulatory process. The Haisla Nation has been seeking such early engagement from Canada since the proposed project was first announced.

Mr. Eyford’s Report also recommended that Canada should engage and conduct consultations n addition to those in regulatory processes, as may be required, to address issues and facilitate resolutions in exceptional circumstances. The Haisla Nation also asked for this, identifying early that this proposed project was an exceptional circumstance due to the significant potential impacts on the Haisla Nation.

It is not too late for Canada to correct the deficiencies in its consultation process, but cannot realistically do so by adhering unilaterally by Canada and laid out in Mr. Maracle’s letter of December 16, 2013

The Haisla Nation Council response was sent to Brett Maracle, Crown Consultation Coordinator at the Canadian Environmental Assessment Agency for the Northern Gateway project. The Haisla also sent copies of the response to Joe Oliver, the Minister of Natural Resources, Gaetan Caron, Chair of the National Energy Board, Leon Aqlukkaq, Minister of the Environment, Bernard Valcourt Minister of Aboriginal Affairs and Northern Development, Gail Shea, Minister of Fisheries and Oceans, BC Premier Christy Clark, Steve Thomson, BC Minister of Forests, Lands and Natural Resources and Mary Polak, BC Minister of the Environment.

Related

Ottawa’s Northern Gateway consultation with First Nations limited to three simple questions and 45 days: documents

Haisla consultation reply outlines flaws in Northern Gateway Joint Review report

Haisla response lists evidence rejected by Northern Gateway Joint Review

Haisla consultation reply outlines flaws in Northern Gateway Joint Review report

Haisla NationThe Haisla Nation response to the federal government’s request for consultation on the Joint Review Panel report on the Northern Gateway lists what the First Nation sees as flaws in the panel’s assessment of the project. (The Haisla filed their first list of flaws in the JRP in a court challenge).

In the response, seen by Northwest Coast Energy News, the Haisla are objecting to both the government’s and the JRP’s attitude toward the idea of consultation as well as some of the specific findings by the panel. The Haisla also fault the JRP process for refusing to take into consideration reports and studies that were released after the evidentiary deadlines.

Overall, the Haisla say

 The JRP report is written in a way that prevents an assessment of how or whether the JRP considered Haisla Nation concerns and of how whether the JRP purports to address the Haisla Nation’s concerns. Further the JRP Report is lacking n some of the fundamental justification required to understand how arrived at its recommendations.

So what are the Haisla concerns?

In the document filed with the Canadian Environmental Assessment Agency, the Haisla say:

 The proposed project carries with it an inordinate amount of risk to Haisla Nation Territory. The Haisla Nation is being asked to play host to this proposed project, despite the risk the proposed project poses to the land waters and resources relied on by the Haisla Nation for sustenance and cultural heritage. The risk includes a huge risk to Haisla Nation aboriginal rights to trap, hunt and fish, to gather seafood and gather plant materials. It could result in significant damage to the Haisla Nation cultural heritage—its traditional way of life…..

The terminal site is one of the few areas suitable for terminal development in our territory. It is also home to over 800 Haisla Nation Culturally Modified Trees (CMTs). Northern Gateway proposes to irrevocably alter the land, the use of the land and access to this land for the duration of the proposed project, which is anticipated to be at least 80 years. This irrevocable alteration includes the felling of our CMTS….

By seeking to use Haisla Nation aboriginal title land for the proposed project, Northern Gateway will be effectively expropriating the economic value of this land. Northern Gateway is proposing to use Haisla Nation aboriginal title land for a project with no benefit to the Haisla Nation and which is fundamentally at odds with Haisla Nation stewardship principles.

 

Obstructed clear understanding 

The Haisla say that “Canada has failed to adhere is own framework” for the JRP because in the Aboriginal Consultation Framework says “Federal departments will be active participants in the JRP process to ensure the environmental assessment and consultation record, is as accurate and complete as possible.”

The Haisla say “Canada provided limited written evidence to the JRP” and goes on to say that the “federal governments not only failed to provide relevant information but also obstructed a clear understanding of project impacts.”

Among the evidence relevant to Northern Gateway that the federal government was “unable or unwilling to provide” includes:

  •  Natural Resources had expertise on acid rock damage and metal leaching but did not include evidence on that in their evidence
  •  Fisheries and Oceans did not have a mandate to conduct an assessment of the potential toxicological effects of an oil spill.
  •  Environment Canada did not review or provide information on the spills from pipelines.
  • The federal government witnesses were unable to answer questions about the toxicity of dispersant.
  • Environment Canada was asked if it had studies of the subsurface currents and the movement of submerged oil. Environment Canada told the JRP did not measure hydrodynamic data but relies on DFO. DFO cold not provide any witnesses to the JRP with expertise on subsurface currents.

 

In the formal response on the JRP report, Haisla also say:

  •  The JRP has concluded that the risk of a large spill form the pipeline in the Kitimat River Valley is not likely, despite very significant information gaps relating to geohazards, leak detection and spill response.
  •  The JRP has concluded that a large spill would result in significant adverse environmental effects. However, the JRP appears to base a finding that these effects are unlikely to occur on an unreasonable assumptions about how widespread the effects could be or how long they would last. The JRP has not considered the extent to which a localized effect could impact Haisla Nation.
  •  The JRP relies on the concept of “natural recovery” as mitigation of significant adverse effects. The Haisla Nation asked the JRP to compel information from Northern Gateway about the applicability of its evidence to species found in Haisla National Territory. The JRP, however, refused to compel this evidence from Northern Gateway.
  •  The JRP has accepted at face value that Northern Gateway would shut down its pipeline within 13 minutes in the event of a rupture and has failed to consider the effects of a large spill that is not detected with this timeframe through the control centre (or was in the case of Kalamazoo, is detected by the control centre but is systematically mischaracterized and ignored).

As part of the consultation process the Haisla want 22 changes to the JRP report, changes which echo the Haisla Final Written Argument that was filed at the end of the hearings.

It says:

 The Panel should find that potential impacts to asserted Haisla Nation aboriginal rights and title from the proposed project are such that project cannot be found to be in the public interest in the absence of meaningful consultation… The current status of engagement and the federal government imposition of a 6-month time limit to complete consultation raise serious concerns that meaningful consultation will not be possible. Therefore the proposed project is not in the public interest.

Among the others are:

  • The JRP should have determined the significant of adverse effects to rare ecological communities that cannot mitigated.
  • The JRP should have provided more information to allow a reasonable assessment of the risk of a spill from the pipelines.
  • The JRP would have considered all factors to contribute to the risk of a spill.
  • The JRP should have found that Northern Gateway’s assessment of the toxicity of an oil spill because it did not consider the full range of products to be shipped nor did it consider the potential pathways of the effect of a toxic spill, whether from a pipeline, at the marine terminal or in the case of a tanker spill
  • The evidence had not demonstrated that Northern Gateway’s spill response would be able to mitigate the effects of a spill either at the pipeline, at the Kitimat marine terminal or from a tanker spill.
  • The JRP did not consider the impact of the Kitimat Marine Terminal on their cultural and archaeological heritage, including culturally modified trees.

Related

Ottawa’s Northern Gateway consultation with First Nations limited to three simple questions and 45 days: documents

Haisla ask cabinet to postpone Northern Gateway decision to allow for adequate consultation with First Nations

Haisla response lists evidence rejected by Northern Gateway Joint Review

Haisla challenge JRP, asking Federal Court of Appeal to quash flawed report; Gitga’at also file challenge

Updates with Gitga’at court challenge

Haisla NationThe Haisla Nation have filed a challenge to the Northern Gateway Joint Review Panel with the Federal Court of Appeal requesting that court quash the JRP findings.

The Haisla suit comes at a time that a coalition of environmental groups and the Gitxaala Nation are asking for court reviews of the JRP. The court challenge also comes at time when the District of Kitimat Council has maintained its position on an April 12 plebiscite asking the residents of Kitimat if they approve of the Joint Review Panel’s findings on the Northern Gateway project.

Late Wednesday, the Gitga’at Nation at Hartley Bay also announced they are challenging the JRP.

The Haisla argument filed by Jennifer Griffiths of Donovan and Company, representing the Haisla Nation, points to the Scope of Factors governing the JRP saying the proponent (Enbridge Northern Gateway) must “provide a sufficient description of the local setting to allow the Panel, other regulators, the public and others to clearly understand the rationale for environmental assessment decisions.”

The application asks that courts order that:

  • the findings be referred back to the JRP for further consideration
  • the Panel obtain and consider the necessary information about marine environment and freshwater and marine fish habitat
  • the Panel provide its assessment of effects of the project on Haisla Nation cultural heritage
  • the court direct the Panel to provide it assessment of the adequacy of Crown consultation to date
  • the Panel reconsider its public interest assessment after considering adequacy of consultation, impacts on cultural heritage and impacts on aboriginal rights and interests
  • that the JRP report “as issued on December 19, 2013, does not contain the recommendations required” under the Canadian Environmental Assessment Act.

In the Haisla challenge, the Nation argues the Panel erred by:

  • making findings about potential impacts to the marine environment and freshwater and marine fish habitat without having before it information it was required to consider under the Scope of Factors
  • failing to assess the environmental effects of the project on Haisla Nation cultural heritage
  • failing to provide a rationale for its conclusion that there would be no adverse environmental effects on cultural heritage
  • failing to provide a rationale for its conclusions regarding significant adverse effects, including but not limited to the conclusion that, after mitigation, the likelihood of significant adverse environmental effects resulting from project malfunctions are very low
  • failing to provide a summary of comments received from interested parties on potential conditions
  • concluding that a large spill from pipeline facilities, terminal or tankers is unlikely
  • concluding that, after mitigation, the likelihood of significant adverse environmental effect resulting from the project malfunctions or accidents is low
  • fails to justify its conclusion that a large spill from pipeline facilities terminal or tankers is unlikely
  • fails to justify its conclusion that, after mitigation, the likelihood of significant adverse effects resulting from the project malfunctions is very low.
  • Fails to provide a rationale for the conclusion that there would be no adverse environmental effects on cultural heritage

The Haisla challenge also says the Joint Review Panel failed “to conduct its assessment in a precautionary manner” when it recommended:

  • that the project is not likely to result in significant adverse effects with respect to freshwater fish and fish habitat
  • that project is not likely to result in significant adverse effects with respect to marine fish and fish habitat
  • recommended that the project is not likely to cause significant adverse environmental effects in Canada on cultural heritage
  • concluded that a large spill from the pipelines, terminal or tanker is unlikely
  • concluded that the project is in the public interest.

The Haisla challenge also argues that the “Panel failed to observe procedural fairness in the hearing and deliberation” by:

  • failing to extend timelines a reasonably requested by parties
  • failing to consider all the information available to it about the large spill of oil as a result of the rupture of the Enbridge pipeline in Kalamazoo, Michigan
  • failing to assess impact on aboriginal rights or interests in its public interest assessment
  • failing to fully consider the submission of the Haisla Nation on potential conditions for the project.

The challenge also deals with the issue of cultural modified trees, especially the JRP’s finding that “impacts to Haisla Culturally Modified Trees can be mitigated” and by concluding “that impacts to Haisla Nation Culturally Modified Trees can be mitigated by including a condition that Northern Gateway file a plan to protect and manage post-1846 CMTS.” The part of the challenge dates back to time when Enbridge surveyors entered Haisla traditional territory without permission and as part of the survey cut down or damaged cultural modified trees.

On the afternoon of January 22, the Gitga’at Nation at Hartley Bay also announced they were filing a challenge to the JRP.

A news release from the Gitga’at says “the Joint Review Panel erred in law, including by failing to properly consider all evidence provided by the Gitga’at, whose culture and way of life would be severely threatened by supertanker traffic, shipping bitumen from Alberta and importing condensate from Asia and elsewhere.”

The application states that while the Gitga’at are resilient, they are also highly vulnerable to threats to their local ecosystems and community well being from impacts cause by increased tanker traffic. The negative impacts to Gitga’at society, culture, identity, health, and economy will only increase in the event of an oil spill, with the impacts increasing with the size and consequences of the spill. Traditional foods harvested from the sea comprise the largest portion of the Gitga’at diet.

On January 16, Ecojustice lawyers, representing ForestEthics Advocacy, Living Oceans Society and Raincoast Conservation Foundation, filed the lawsuit seeking a court order to prevent Cabinet from relying on the flawed JRP report to approve the proposed pipeline.

“The JRP did not have enough evidence to support its conclusion that the Northern Gateway pipeline would not have significant adverse effects on certain aspects of the environment,” said Karen Campbell, Ecojustice staff lawyer. “The panel made its recommendation despite known gaps in the evidence, particularly missing information about the risk of geohazards along the pipeline route and what happens to diluted bitumen when it is spilled in the marine environment.”

Ecojustice argued that the JRP panel also failed to meet legal requirements under the Species at Risk Act when it decided to not consider the final recovery strategy for humpback whales, and failed to identify mitigation measures that would reduce the impacts on caribou.

The humpback whale recovery strategy identifies toxic spills and vessel traffic as two threats to the iconic species’ survival and recovery — all relevant information that should have been considered during the review hearings.

Haisla Notice of Appeal  (pdf)

Ecojustice Notice of Appeal (pdf)

Editorial (I) Kitimat Council, major league or bush league?

Kitimat Council vote
Three members of Kitimat Council voted Monday for a clear, concise question on the Northern Gateway plebiscite (Robin Rowland/Northwest Coast Energy News)

Monday’s District of Kitimat Council meeting was a display of mind-numbing, stubborn political mule-headedness.

After a couple of hours of procedural wrangling, confusion over motions and often just plain dumb discussion, four of the seven members of District Council ignored the recommendations from District staff and suggestions from public delegations, and with their majority decided to stick with the confusing, convoluted Enbridge Northern Gateway Plebiscite question for the vote on April 12.

The question (corrected slightly from the previous week’s version) reads:

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?

In May 2012, at the time of the first omnibus bill, Northwest Coast Energy News compared Kitimat Council to a Junior B team up against the NHL All Stars. We hereby apologize to every Junior B player, coach, trainer and referee across this country for comparing them to Kitimat Council. For a community that is in the “bush” one hesitates to use the pejorative term bush league. But in this case the term is correct. District of Kitimat Council is like a bush league beer team playing against the NHL All Stars.

Kitimat has to deal with the major leagues– that is the world’s biggest corporations, Shell, Chevron, Apache, Mitsubishi, PetroChina, Korea Gas, not to mention Rio Tinto. And then there’s Enbridge. Kitimat has to deal with a federal government that sees Kitimat as nothing more than an expendable pawn in Conservative economic and reelection strategies and the province of BC, which under Premier Christy Clark, sees Kitimat as a goose laying golden eggs – as long as most of those eggs go south to the Lower Mainland.

So far in dealing with those companies and higher levels of government, Kitimat Council has acted like Oliver Twist, “Please, sir, can I have some more?”

The Haisla Nation, now under the leadership of Chief Counsellor Ellis Ross, on the other hand, has acted like a top level team (whether NBA or NHL) in dealing with the world’s biggest companies and acted on behalf of the Haisla’s best interests. Ross has not been afraid to admit, on the record, with main stream media interviews, that sometimes he and the Haisla Nation Council have made mistakes in dealing with transnational corporations. But Ross has said he and the HNC learn from those mistakes and do better next time. There appears to be a good working relationship with the Haisla and the companies working to develop Kitimat. Neither side gets everything but the relationship is there.

Now the Haisla have gone to the Federal Court of Appeal and filed an extensive challenge to the Joint Review Panel report, outlining what the Haisla believe are serious flaws in the Joint Review Panel, including asking the court to find that the JRP did not follow requirements of the Canadian Environmental Assessment Agency, while the Kitimat plebiscite presumes the JRP did follow CEAA rules.

Kitimat Council has yet to learn anything from its on going sorry record of making mistake after mistake.

If those council members who voted for the confusing ballot thought that their actions would do anything to unite this community, they were wrong. They’ve already alienated everyone on both sides of the issue who wanted a simple Do you support the Northern Gateway project yes or no question?

Kitimat plebiscite question
The Kitimat Northern Gateway plebiscite question as projected at the Council Chambers Jan 13, 2014. (Northwest Coast Energy News)

Just what does the question mean? Are you in favour of the Joint Review Panel? Or you in favour of Enbridge Northern Gateway? Both? Neither? What if you support Enbridge Northern Gateway but believe the JRP has no credibility? (There are people in Kitimat who are quietly saying that—they support Northern Gateway but have no trust in the JRP or the federal government to enforce the conditions. There are others who say the JRP did a good job and still oppose Northern Gateway). What if you are in favour of 50 or 150 of the JRP recommendations but oppose others—like the use of temporary foreign workers? Rather than two sides with an uncertain middle, there are now multiple sides, with an even more uncertain muddled middle.

When asked Monday night what Council would do with the question, the response was incoherent. It could depend on voter turn out. What happens if the turn out is low because the public doesn’t understand the question? What if the turn out is less than the last municipal election? More? What if the turnout is 90 per cent but a majority vote undecided? Could construction workers who may be eligible to vote because they’ve been here for six months but have no stake in the community overwhelm the votes of long time residents?

Council refused to say whether a simple majority of 50 per cent plus one yes or no (not counting undecideds) is sufficient to decide the issue or whether some super majority, 60 per cent 66 per cent or 75 per cent will mean something? How are Council going to decide? Are they going to decide now or after the vote? Once Council has the vote in hand, what do they do with that vote? Oppose Enbridge if the vote is a majority no? Welcome Enbridge if the vote is yes? Or just keep on doing nothing? (which is not being neutral).

Ask any business analyst and the one thing they will tell you is that business hates uncertainty, uncertainty means hesitation to invest, hesitation to commit. Kitimat Council has just made everything more uncertain than ever. Business will take note.

Big league games mean big league coverage. I know from colleagues that not only the national media, but major international media are considering coming to Kitimat for the April 12 plebiscite. The vote is a “news peg” that lets media that haven’t been covering Kitimat on a regular basis bring their readers and viewers up to date on an important story.

If Kitimat Council is incapable of explaining the plebiscite question to the people who actually live here, how can Kitimat’s politicians explain the question to a fly-in reporter who has never been to British Columbia and who, at this moment, probably thinks JRP is an energy drink? How does a viewer or reader in New York, London, Sydney or Tokyo understand what people here are voting for or against, if the people here don’t understand it?

A possible plebiscite debacle seen on 24 hour satellite channels and read on millions of tablets and phones (as well as surviving newspapers) around the world won’t do much for Kitimat’s reputation for political competence and ability to play well with others. The world’s business community will take note of that.

The word bush league comes to mind.


An intelligent suggestion

Patricia Lange at Kitimat Council
Patricia Lange asks Council to have both sides of the Northern Gateway issue get together to come up with an acceptable plebiscite question. (Robin Rowland/Northwest Coast Energy News)

There was one intelligent, last minute suggestion about the Enbridge Northern Gateway plebiscite question at Monday’s council meeting, a solution to the conundrum of a proper question, but one that the stubborn council is unlikely to adopt.

Patricia Lange was not a scheduled delegate. She came forward after Mayor Joanne Monaghan asked it there was anyone else with a comment.

“I just want to say that the Plebiscite Question is convoluted and it appears biased to me,” she told Council. “Although I am not a member of an environmental group, I would suggest that the wording of the question be put together by somebody from the Douglas Channel Watch and somebody that’s a proponent of this project so the community can see the question is not biased.”

In our view, Lange has hit on the ideal solution. While the proponent, the Enbridge Northern Gateway company should not be included in deciding the wording of the plebiscite question, the Kitimat Economic Development Association, which generally favours the project, should be.

District Council wasn’t involved the Joint Review Process. They should have been but they weren’t. Right now most on Council are handling the JRP like a student who skipped every class for two years and is now desperately cramming for a final exam. Both Douglas Channel Watch and the Kitimat Economic Development Association, on the other hand, have been deeply involved in the Northern Gateway issue since the beginning and either participated in or closely followed the JRP.

Over the past couple of years, Northwest Coast Energy News has spoken both on the record and on background to members of DCW and KEDA.

Both groups are not that far apart. Both members of DCW and KEDA have told me, independently and without knowledge of their opposite numbers are saying the same thing, that they want an economically prosperous, healthy and environmentally viable future for their grandchildren in Kitimat. They just disagree on how to get there.

KEDA members have said they want proper, enforceable but economically viable environmental restrictions on any industrial development in this region. DCW members have repeatedly said they do not oppose industrial development as long as it respects the environment.

In an ideal world, the District would follow Lange’s suggestion and appoint three members of DCW and three members of KEDA to come up with a proper question or questions. District Deputy CAO, Warren Waycheshen, who is an excellent facilitator, could be the chair of the committee and keep things moving. That committee could probably come up with questions acceptable to the entire community on a retreat lasting just an afternoon.

It’s not an ideal world. The District of Kitimat has a highly competent staff who prepared reports to council on the plebiscite, reports that were ignored and rejected. Delegations, most admittedly from the environmental side, appeared before council to argue for a simple question and presented persuasive and eloquent arguments that were brushed off.

Council spent some time Monday night trying to define the term “leadership.” In the end they decided that leadership was staying in their silos and refusing to deal with big league questions. Council is bush league, that is why they won’t take the risk of adopting Lange’s suggestion for the advocates of both sides to meet, do their civic duty and draw up unbiased questions.

After Monday’s debacle, there is already a lot of talk on social media about “throwing the bums out.” It’s a little early for that. District of Kitimat Council has a few months for members to prove that they are worthy of being called up to the majors, to become (to borrow Christy Clark’s phrase) a “world class” council. If councillors show over the coming months that they are not up to the job, the time will come in the November elections to vote for competent candidates for council who are ready to play in the big leagues (if there are actually candidates who have major league potential willing to run).

Editorial: (II) Kitimat Council in chaos

Peter Ponter at Council
At the January 20 council meeting, Peter Ponter asks what happened to the District of Kitimat’s original motion on neutrality. (Robin Rowland/Northwest Coast Energy News)

The District of Kitimat Council is in chaos. We’re not referring to Monday’s chaotic meeting where often it was hard to figure out what Councillors were saying and where they were going.

We are referring to “Chaos” as it is defined in physics, “sensitive dependence on initial conditions,” known to most people as the “butterfly effect” (the exaggerated notion that a butterfly flapping its wings in one place could cause a storm in another place). Or we could suggest that Kitimat Council has a critical case of bad karma that is now coming back to haunt them.

How can you trust a council that doesn’t understand and follow its own motions?

District Council claims it is neutral on the Enbridge Northern Gateway project. That is wrong.

District Council decided, in violation of its own resolutions, to do absolutely nothing about the Northern Gateway Project until they have to. Doing nothing is not neutrality. Doing nothing is a default notion that actually tilts council in favour of the Enbridge Northern Gateway project. Doing nothing has meant that Council has become incapable of dealing with Gateway related issues within its own jurisdiction because they have no idea of what is going on.

A tale of two motions

So what were the initial conditions? As Peter Ponter pointed out in his presentation to Council Monday night, the original motion on neutrality called on Council to take an active part in the Joint Review proceedings.

As reported in the Kitimat Daily at the time, the motion from Councillor Rob Goffinet read:

”I move that the Mayor and Council of District of Kitimat go on record neither opposing nor supporting the Enbridge Pipeline Super Tanker Proposal and that we wish to, as a Mayor and Council, with our community, take part in the 1-2 year environmental assessment process and the Joint Review Panel to learn and understand whether this will be a beneficial project to Kitimat, the Northwest and British Columbia.

That motion was carried unanimously.

So then what happened? Nothing. The District of Kitimat did register as a government participant in the proceedings but did nothing to actually actively participate “to learn and understand whether this will be beneficial project to Kitimat….”

With the 2011 election over, the new council, sitting for the first time in 2012, was asked to reaffirm its position. At that time, Phil Germuth presented a motion that council survey the residents of Kitimat to find out what their position was on the Northern Gateway project. Our report here and Kitimat Daily’s report here.

At the time Councillor Mario Feldhoff said:

“The perfect time for the community to indicate whether they support is to reflect upon the JRP report. Do we agree with their submissions? Otherwise, our emotions are getting ahead of us and we may be perceive as being late in the game but, we may have, from my perspective, informed comment from the citizenry after they have had a chance to read a report from the JRP would be preferable in my opinion, in opposed to getting a sense of how people feel about things right now.”

So, in fact, there was not one neutrality motion as Council now maintains.

There were two separate motions, on two separate aspects of neutrality. The first called for council to remain neutral but to participate in the Joint Review Panel. The second called for council to survey the community on their feelings after the completion of the JRP.

The two motions did not, repeat not, cancel each other out. But that was, in effect, what happened. The council seems to have decided that Feldhoff’s comment was actually a motion, and that after that January 2012 meeting, they should do absolutely nothing but wait until the Joint Review Process was complete.

Every time after January 2012, when council was asked about anything, they said we are waiting for the Joint Review Process to be complete, even though council had unanimously passed a motion saying it would take part in the JRP. That is proof of Kitimat Council’s incompetence.

As we pointed in May 2012, after the introduction of the Omnibus bills, neutrality has never meant sitting on one’s ass and doing nothing. Neutral nations have always vigorously looked out for their own interests.

We will repeat that in the long history of regulatory hearings, public inquiries and even coroners inquests there have always been a role for neutral parties, represented by competent and properly instructed counsel, who vigorously look out for their client’s interests, without taking an advocacy position on a matter before the tribunal. The District of Kitimat could have, in fact, should have, actively participated and where necessary in the Joint Review and have its representatives ask tough questions of every side on all matters relevant to the District of Kitimat.

Participation didn’t happen, and, unfortunately, that is now all water under the Kitimat River Bridge.

A gift of prophecy

 

Kitimat Council
District of Kitimat Council listens to delegates plea for a simple question on the upcoming plebiscite. (Robin Rowland/Northwest Coast Energy News)

The bigger problem is that a majority on Kitimat council believes that it has the gift of prophecy, naively believing that the Joint Review Panel understands all mysteries and all knowledge. A majority of members on Kitimat council have blind faith, believing that the JRP can safely move pipelines across mountains.

With its gift of prophecy, Kitimat Council believes that all is right with the Joint Review Panel, that its 209 recommendations are gospel and thus council approves a vote question not about the Northern Gateway project but the Joint Review.

Faith is the operative word, for apart from dropping into listen from time to time, council did not participate in the proceedings in any way, and thus did not experience the many flaws in the Joint Review process that led some people to say as early as the middle of 2012 that the JRP had no credibility.

We’re already seeing the flaws in the blind faith in the JRP. As this site pointed out, the costs of the Kalamazoo cleanup now exceed the amount of money the JRP conditions call on Enbridge to set aside in case of a spill. A report by federal scientists show the Joint Review Panel erred in accepting Enbridge’s laboratory evidence that bitumen doesn’t sink.

There are already court challenges to the Joint Review Panel. (Update. A media count as of January 23 says there are now 10 court challenges to the JRP)

Most important for Kitimat, a challenge filed by the Haisla Nation which, among the many flaws it finds with the JRP report, says the JRP improperly concluded that a large spill is unlikely either from the pipeline itself, the terminal facilities or the oil tankers tasked with navigating B.C.’s coastal waters.

It doesn’t do much for the already strained relationship between the District of Kitimat and the Haisla Nation that Council continues its uncritical support of the JRP while the Haisla are challenging it in court. That the Haisla motion to the Federal Court of Appeal includes challenges to the procedural unfairness of the JRP proceedings.

The Gitxaala First Nation says Joint Review Panel ignored issues surrounding aboriginal rights and title.

A coalition of environmental groups have told the federal court there was not enough  evidence before the JRP to support its conclusion that the Northern Gateway pipeline would not have significant adverse effects on the environment; one key part of the suit is the fact that the JRP refused to consider the federal humpback strategy for Douglas Channel.

Although it is unlikely that the courts will throw out the Joint Review findings before the April vote, it might just happen. At that point, a plebiscite question based on the JRP would look pretty silly.

Who runs the Kitimat River?

We now come to the long term consequences of a do nothing council. We have to ask if the District of Kitimat Council will become lame ducks, at least in some part of town, because they have stood by and, in their misplaced faith in the National Energy Board, ceded the right to decide what happens in Kitimat to the NEB?

According to a report in the Toronto Star, using the new rules under the omnibus bills, this week the National Energy Board approved expansion of the Enbridge Line 7 pipeline in southern Ontario, without a hearing and without notifying Hamilton, the municipality involved (the pipeline actually goes through Hamilton) because the municipality was not “affected in any way” by the project. Since the media got on to the story, Enbridge has kindly said to Hamilton “we have heard and understood it and assured them directly that we will include them in all future consultation and activity on this project.”

There was another decision by the National Energy Board in December, when it agreed with DFO that it would have jurisdiction on fish habitat, if there are pipelines along water bodies such as the Kitimat River.   DFO has since clarified their position, which means we’re not going to see the absurd vision of NEB officials checking fishing licences in Radley Park.

There is already one pipeline along the west bank of the Kitimat River, Pacific Northern Gas. If the LNG projects go ahead, as well as more molecule traffic on the PNG pipeline there will be the Coastal Gas Link serving Shell and the Pacific Trails Pipeline serving Chevron and Apache. If it goes ahead, the Northern Gateway Pipeline will mean four pipelines along the west bank of the Kitimat River.

Four pipelines along the banks of the Kitimat River all under the benign eye of the National Energy Board in Calgary since they have “expertise” on pipelines and water courses.

The NEB has shown recently it doesn’t have much respect for municipalities. While the actual regulations under the DFO-NEB deal are likely to be unclear for some time, we know that what the NEB’s mandate is, to promote the oil and gas industry in this country, not to protect rivers and streams. So if the people of Kitimat, especially those who fish the Kitimat River or work in the Service Centre are in the way of what NEB bureaucrats in Calgary decide is best for us and those three, maybe four, pipelines, well too bad, eh? The NEB has the mandate to act in the national and public interest, not the residents of Kitimat.

Kitimat Council with its blind faith in the National Energy Board may very likely be a case of be careful what you wish for, sitting uselessly in the chambers at Northwest Community College while the NEB in Calgary carves up the District’s jurisdiction and does what it thinks is best for the  oil patch.

Thus the Council deliberations become a sounding brass or a tinkling cymbal, meaning nothing.

 

 

 

 

Enbridge’s Michigan cleanup costs now exceed JRP pipeline conditions for Gateway, SEC filing shows

NTSB staff examine ruptured pipe
US National Transportation Safety Board staff examine a ruptured pipe from the Enbridge oil spill in August, 2010. The photo was released by the NTSB May 21, 2012. (NTSB)

The costs for Enbridge to clean up the 2010 Marshall, Michigan oil spill now far exceeds the maximum estimate that the Joint Review Panel gave for a major spill on the Northern Gateway Pipeline and also exceeds the amount of money the JRP ordered Enbridge to set aside to deal with a spill. Enbridge’s cleanup costs have also now edged past the higher liability amount requested by the Haisla Nation.

According to the US firm Enbridge Energy Partners’ filing with the United States Securities and Exchange Commission, as of September 30, 2013, the cost of cleanup was $1.035 billion US, not including possible additional fines and penalties that might be imposed by US authorities in the future.

In its decision, the Joint Review Panel estimated the cost a major oil spill from the Northern Gateway project would be about $693 million.  As part of the 209 conditions, the JRP ordered Enbridge to set aside “financial assurances” totaling $950 million.

Note all costs in this article are for a pipeline breach. The Joint Review Panel had different estimates for a tanker spill and the liability rules for marine traffic are different from pipelines.

In its filing for the third quarter of 2013, with the SEC, Enbridge Energy Partners say that the cost up until September 2013 had “exceed[ed] the limits of our insurance coverage.” The same filing says that Enbridge is in a legal dispute with one its insurers.

In its SEC filing, Enbridge says:

Lakehead Line 6B Crude Oil Release
We continue to perform necessary remediation, restoration and monitoring of the areas affected by the Line 6B crude oil release. All the initiatives we are undertaking in the monitoring and restoration phase are intended to restore the crude oil release area to the satisfaction of the appropriate regulatory authorities.
As of September 30, 2013, our total cost estimate for the Line 6B crude oil release is $1,035.0 million, which is an increase of $215.0 million as compared to December 31, 2012. This total estimate is before insurance recoveries and excluding additional fines and penalties which may be imposed by federal, state and local governmental agencies, other than the Pipeline and Hazardous Materials Safety Administration, or PHMSA, civil penalty of $3.7 million, we paid during the third quarter of 2012. On March 14, 2013, we received an order from the EPA, or the Environmental Protection Agency, which we refer to as the Order, that defined the scope which requires additional containment and active recovery of submerged oil relating to the Line 6B crude oil release. We submitted our initial proposed work plan required by the EPA on April 4, 2013, and we resubmitted the workplan on April 23, 2013. The EPA approved the Submerged Oil Recovery and Assessment workplan, or SORA, with modifications on May 8, 2013. We incorporated the modification and submitted an approved SORA on May 13, 2013. The Order states that the work must be completed by December 31, 2013.

The $175.0 million increase in the total cost estimate during the three month period ending March 31, 2013, was attributable to additional work required by the Order. The $40.0 million increase during the three month period ending June 30, 2013 was attributable to further refinement and definition of the additional dredging scope per the Order and associated environmental, permitting, waste removal and other related costs. The actual costs incurred may differ from the foregoing estimate as we complete the work plan with the EPA related to the Order and work with other regulatory agencies to assure that our work plan complies with their requirements. Any such incremental costs will not be recovered under our insurance policies as our costs for the incident at September 30, 2013 exceeded the limits of our insurance coverage.

According to the SEC filing, the breakdown of costs include $2.6 million paid to owners of homes adversely impacted by the spill.

Despite the efforts we have made to ensure the reasonableness of our estimates, changes to the recorded amounts associated with this release are possible as more reliable information becomes available. We continue to have the potential of incurring additional costs in connection with this crude oil release due to variations in any or all of the categories described above, including modified or revised requirements from regulatory agencies in addition to fines and penalties as well as expenditures associated with litigation and settlement of claims.
The material components underlying our total estimated loss for the cleanup, remediation and restoration associated with the Line 6B crude oil release include the following:
(in millions)

Response Personnel & Equipment  $454

Environmental Consultants  $193

Professional, regulatory and other $388

Total $ 1,035

For the nine month periods ended September 30, 2013 and 2012, we made payments of $62.3 million and $120.9 million, respectively, for costs associated with the Line 6B crude oil release. For the nine month period ended September 30, 2013, we recognized a $2.6 million impairment for homes purchased due to the Line 6B crude oil release which is included in the “Environmental costs, net of recoveries” on our consolidated statements of income. As of September 30, 2013 and December 31, 2012, we had a remaining estimated liability of $265.9 million and $115.8 million, respectively.

As for insurance, Enbridge Energy Partners say:

The claims for the crude oil release for Line 6B are covered by the insurance policy that expired on April 30, 2011, which had an aggregate limit of $650.0 million for pollution liability. Based on our remediation spending through September 30, 2013, we have exceeded the limits of coverage under this insurance policy. During the third quarter 2013, we received $42.0 million of insurance recoveries for a claim we filed in connection with the Line 6B crude oil release and recognized as a reduction to environmental cost in the second quarter of 2013. We recognized $170.0 million of insurance recoveries as reductions to “Environmental costs, net of recoveries” in our consolidated statements of income for the three and nine month periods ended September 30, 2012 for the Line 6B crude oil release. As of September 30, 2013, we have recorded total insurance recoveries of $547.0 million for the Line 6B crude oil release, out of the $650.0 million aggregate limit. We expect to record receivables for additional amounts we claim for recovery pursuant to our insurance policies during the period that we deem realization of the claim for recovery to be probable.

In March 2013, we and Enbridge filed a lawsuit against the insurers of our remaining $145.0 million coverage, as one particular insurer is disputing our recovery eligibility for costs related to our claim on the Line 6B crude oil release and the other remaining insurers assert that their payment is predicated on the outcome of our recovery with that insurer. We received a partial recovery payment of $42.0 million from the other remaining insurers and have since amended our lawsuit, such that it now includes only one insurer. While we believe that our claims for the remaining $103.0 million are covered under the policy, there can be no assurance that we will prevail in this lawsuit.

 

The Joint Review, Enbridge and Michigan

The Joint Review Panel based its finding on the Marshall, Michigan spill on the figure of $767 million from the summer of 2012 –again showing the limitations of the JRP’s evidentiary deadlines since the costs are now much higher.

The JRP quoted Enbridge as saying:

Northern Gateway considered the high costs of the Marshall, Michigan spill, which were at least $252,000 per cubic metre ($40,000 per barrel), to be an outlier or a rare event because the spill occurred in a densely populated area, because the pipeline’s response time was abnormally long, and because there was the prospect of potentially lengthy legal proceedings.

Enbridge assured the JRP that the corporate culture and management changes and equipment upgrades since the Marshall, Michigan spill lowered that chances of a similar event.

The company based its models for the JRP on much smaller spills, including one spill at Lake Wabamun, Alberta from a train not a pipeline (Vol. 2 p 357)

Enbridge’s risk assessment did not “generate an estimate of economic losses caused
by a spill.”

The JRP says Northern Gateway relied on its analysis of literature, and spill events experienced by Enbridge and other liquid hydrocarbon carriers in Alberta and British Columbia. After assessing all of this information, Northern Gateway regarded the high costs of a cleanup as “conservative”–meaning the company expects costs to be lower than its estimates in evidence before the JRP.

In Northern Gateway’s view the most costly pipeline spill incident would be a full-bore oil pipeline rupture, with an estimated cost of $200 million, and an extremely low probability of occurrence.

Haisla evidence

In their evidence, the Haisla (and other First Nations and intervenors) were doubtful about Northern Gateway’s assurances. The Haisla asked that Enbridge have a minimum of $1 billion in liability, an amount Enbridge has now exceeded in Michigan.

Haisla Nation estimated the cost of damage to ecosystem services because of a terrestrial oil spill from Northern Gateway’s pipeline would be in the range of $12,000 to $610 million for a 30-year period.

The Haisla’s cost estimates were based on values for environmental goods and services and probabilities of spills that were independent of Northern Gateway’s parameters for estimating oil spill costs. In contrast to Northern Gateway’s estimated spill frequency and costs, the Haisla predicted that spills would occur more often and placed a higher value on damages to environmental goods and services.

Haisla Nation argued that Northern Gateway overestimated its ability to detect and respond to a spill. In the Haisla’s view this resulted in the cost of a spill and the requisite financial assurances being understated. Haisla cited several factors, including: remote location, limited access, challenging terrain, seasonal conditions, and river flow conditions that would cause the cost of cleaning up a spill in the Kitimat River valley to be significantly greater than the costs associated with Enbridge’s Marshall, Michigan spill.

For these reasons, Haisla proposed that Northern Gateway should be required to obtain a minimum of $1 billion of liability coverage through insurance and financial assurances. Haisla said that Northern Gateway should file annually the report from an independent third party assessing the financial assurances plan. (Vol 2 p359)

In response Northern Gateway said:

Northern Gateway said that Haisla’s findings were based on a number of fundamental methodological flaws and a lack of probability analysis to support the high frequency of occurrence of oil spill events. Northern Gateway argued that Haisla’s estimates of ecosystem service values were inflated because they were based on values from unrelated studies. In Northern Gateway’s view, Haisla relied on high passive use values that were not justified.

JRP ruling

As it has in most of its decision, the JRP accepted Northern Gateway’s evidence, including its explanation of the Marshall, Michigan spill and then went on to base its spill cost estimates not on a pipeline breach but on the 2005 railway spill at Lake Wabumum, near White Sands, Alberta.

The Panel accepts that the cleanup costs for the Marshall, Michigan spill were orders of magnitude higher because of the extended response time. In this application, the Panel accepts Northern Gateway’s commitment to complete the shutdown in no more than 13 minutes after detection. For this reason the Panel did not use the Marshall spill costs in its calculations. The spill volume and the resulting costs are directly dependent on the Northern Gateway’s control room staff and the pipeline control system fully closing the adjacent block valves no longer than 13 minutes from the detection of an alarm event, as well as the amount of oil which would drain out of the pipeline after valve closure due to elevation differences.

The Panel decided on a total unit cost of $138,376 per cubic metre ($22,000 per barrel). This is midway between the unit cost of $88,058 per cubic metre ($14,000) per barrel proposed by Northern Gateway and the unit cost of $188,694 per cubic metre ($30,000 per barrel) for the Lake Wabamun spill. It is about one-half of the Marshall spill’s unit cost. Giving weight to the Lake Wabamun costs recognizes actual costs experienced in a Canadian spill and the greater costs of spills in high consequence areas. In these areas, individuals, populations, property, and the environment would have a high sensitivity to hydrocarbon spills. The deleterious effects of the spill would increase with the spill volume, the extent of the spill, and the difficulty in accessing the spill area for cleanup and remediation.

Using these spill volume and unit cost values in the calculation below, the Panel estimated the total cost of a large spill could be $700 million. Total cost of a spill = 31,500 barrels x $22,000 per barrel = $693 million, or $700 million when rounded up.

(p362)

The Panel based the financial assurances requirements for Northern Gateway on a spill with a total estimated cost of $700 million and directs Northern Gateway to develop a financial assurances plan with a total coverage of $950 million that would include the following components:
i. Ready cash of $100 million to cover the initial costs of a spill;
ii. Core coverage of $600 million that is made up of stand-alone, third party liability insurance and other appropriate financial assurance instruments, and
iii. Financial backstopping via parental, other third party guarantees, or no fault insurance of at least $250 million to cover costs that exceed the payout of components i. and ii.
The financial backstopping would be available to fill the gap if the spill volumes or unit costs were under-estimated or if the payout from the core coverage would be less than 100 per cent.

The Panel noted that:

The evidence indicates that there is some probability that a large oil spill may occur at some time over the life of the project. In these circumstances the Panel must take a careful and precautionary approach because of the high consequences of a large spill. The Panel has decided that Northern Gateway must arrange and maintain sufficient financial assurances to cover potential risks and liabilities related to large oil spills during the operating life of the project.

Northern Gateway committed to investing $500 million in additional facilities and mitigation measures such as thicker wall pipe, more block valves, more in-line inspections, and complementary leak detection systems. This initiative should enhance the safety and reliability of the system and help reduce and mitigate the effects of a spill, but it would not eliminate the risk or costs of spills. This initiative is not a direct substitute for third party liability insurance and does not eliminate the need for liability insurance or any other form of financial assurance to cover the cost of a spill. (p 361)

So the JRP decision comes down to this, if you accept Northern Gateway’s position that pipeline spills are rare and mostly small, then the company has the financial resources to cover the damage. If, however, Northern Gateway is wrong and the costs of a pipeline cleanup exceed the $950 million required by the Joint Review Panel, as has happened in Michigan, then those JRP conditions are already obsolete.

(Northwest Coast Energy News encourages all readers to read the complete JRP report  and SEC filing since space and readability does not permit fully quoting from the report)

Enbridge misses deadline to clean up Michigan’s Morrow Lake; EPA cites reluctance to do winter cleanup

EPA map of Kalamazoo River
EPA map of river closures and dredging operations on the Kalamazoo River during 2013. (EPA)

Enbridge has missed the US Environmental Protection Agency’s deadline to clean up parts of the Marshall, Michigan bitumen spill by December 31, 2013.

Local television news, WOOD-TV says the EPA is now considering “enforcement options.”
The EPA had already granted Enbridge a 10 month extension that the company requested in March, 2013, setting the new December deadline.

In November, Enbridge requested a second extension. The EPA denied that request.

From the EPA letter it appears that, as in previous years, Enbridge is trying to avoid continuing clean up work into the winter. The EPA rejects that position, telling Enbridge it shouldn’t wait until the spring run off could spread the sunken bitumen.

The EPA says that beginning in March, 2013, “Enbridge has successfully removed oil and sediment from two of the three major impoundment areas identified in the order and from several smaller sediment trap locations.”

The area that Enbridge failed to clean up is known as the Morrow Lake and Morrow Lake Delta. The cleanup in that area was delayed when the Comstock Township planning commission unanimously  denied Enbridge a permit for “dredge pad” after fierce public opposition

The letter to Enbridge, from Jeffrey Kimble, Federal On-Scene Coordinator denying the extension is another scathing indictment of Enbridge’s attitude toward the public and the cleanup, citing Enbridge failing to prepare “adequate contingency plans,” by failing to recognize the “serious opposition” the dredging plans.

Although the EPA had told Enbridge to consider alternative plans—and Enbridge claimed it did that—the EPA found the Enbridge’s own logs showed the company didn’t start considering alternatives until it was obvious that Comstock Township would reject their dredging plans.

The EPA letter also reveals that once again Enbridge is reluctant to do further cleanup work during the Michigan winter. The EPA rejects that stance, saying that “Removal of oiled sediments prior to the spring thaw will lessen the potential oiled sediment transport in the spring to Morrow Lake via increased river velocities from rain and ice melt.”

Although we recognize that the work required by the Order is unlikely to be completed by December 31, 2013, U.S. EPA believes that had Enbridge taken appropriate steps earlier as requested, it would not require an extension now. In particular, U.S. EPA believes that Enbridge has continuously failed to prepare adequate contingency plans for a project of this nature. For example, U.S. EPA acknowledges that failure to obtain a site plan approval for use of the CCP property for a dredge pad was a setback in the timely completion of the work in the Delta.

However, Enbridge failed to prepare any contingency plans recognizing the possibility of such an occurrence. Enbridge has known since at least the middle of July 2013 that there was serious opposition to its proposed use of the CCP property. When it became clear in August 2013 that opposition to the site use might delay the project, U.S. EPA directed Enbridge to “conduct a more detailed review of your options in short order.”

Although your letter claims that Enbridge “has considered such alternatives,” your logs indicate that Enbridge did not hold initial discussions with the majority of these property owners until long after the final decision to abandon plans for use of the CCP property. These contact logs do not demonstrate that Enbridge fully explored and reviewed alternative options in a timely manner so as to avoid delay in completion of the work. Although Enbridge claims that use of identified alternative properties would be denied by Comstock Township, Enbridge did not present any site plans to the Township for approval (other than use of the county park for staging of frac tanks). To the extent that any of Enbridge’s contingency plans include the use of land for dredge pads, U.S. EPA believes that Enbridge should begin multiple submissions for property use until one is accepted….

Enbridge claims that it cannot install winter containment in the Delta to prevent the potential migration of sediments to the lake. To support that claim, Enbridge has attached a letter from STS directing Enbridge to remove anchors and associated soft containment during winter monthsas these structures could damage STS’s turbines. However, none of the correspondence provided by Enbridge discusses the use of more secure containment methods, such as metal sheet piling, which may not pose the same risks as soft containment structures. Enbridge should consider using sheet piling to construct cells which would both allow winter work and contain the sediment during that work. Enbridge should therefore try to obtain access from STS for this specific work, and for other appropriate work, for the winter timeframe. Use of sheet pile cells would allow continued operations during the winter, especially in the southern zone of the Delta outside of the main river channel. Removal of oiled sediments prior to the spring thaw will lessen the potential oiled sediment transport in the spring to Morrow Lake via increased river
velocities from rain and ice melt.

Finally, U.S. EPA is unwilling to allow Enbridge to wait until after the likely spring high
velocity river flush to reinstall the E-4 containment structures. U.S. EPA has reviewed Enbridge’s modeling, which Enbridge claims supports its requested timeline, and has found it incomplete. The model has not incorporated, and does not match, field observation of flow velocities and water levels and their potential to impact upstream critical structures if containment is in place. Moreover, U.S. EPA completely disagrees with Enbridge’s assertion that there is no evidence of migration of submerged oil during high flow events. The results of three years of poling and sheen tracking demonstrate that Line 6B oil is mobile during periods of
high flow. Now that Enbridge has a five year permit from MDEQ for the E-4 containment system, U.S. EPA reiterates that this containment must be in place immediately upon thawconditions in the spring….

Although Enbridge’s proposed two phase approach may have components that can be incorporated into a final plan, it should not be considered the approved way forward. U.S. EPA believes that pausing the work cycle until new poling can be done in June or July of 2014 could again result in a wasted construction season in the Delta. Enbridge should consider and utilize a combination of techniques in the plan. For example, several dredge pad sites have been identified by Enbridge. Enbridge should obtain approval for one of these sites, or a combination of smaller sites, so as to support hydraulic dredging in conjunction with the current approved
approach and any potential dry excavation techniques. Enbridge should also consider other winter work techniques, such as cell build out and dewatering in the Delta via sheet piling.

As always, U.S. EPA will continue to work with Enbridge to develop adequate plans and complete the work required by the Order. However, nothing in this letter excuses any noncompliance with the Order nor does it serve as the granting of any extension to any deadline in the Order. U.S. EPA reserves all its rights to pursue an enforcement action for any noncompliance with the Order.

The EPA letter also calls into question the ruling of the Joint Review Panel on the Enbridge Northern Gateway. The JRP accepts, without question, Enbridge’s assurances that the company has changed its attitude and policies since the long delay in 2010 in detecting the pipeline rupture in Marshall, Michigan.

The JRP, on the other hand, accepts, without question, Enbridge’s assurances that it has expertise in winter oil recovery from a pipeline spill.

Parties questioned Northern Gateway about locating and recovering oil under ice. Northern Gateway said that Enbridge conducts emergency exercises in winter and that Northern Gateway would learn from those experiences.
Northern Gateway outlined a number of oil detection techniques including visual assessment (at ice cracks and along the banks), drills, probes, aircraft, sniffer dogs, and trajectory modelling. It said that, once located, oil would be recovered by cutting slots into the ice and using booms, skimmers, and pump systems to capture oil travelling under the ice surface.

The company said that oil stranded under ice or along banks would be recovered as the ice started to melt and break up. It discussed examples of winter oil recovery operations during Enbridge’s Marshall, Michigan incident, and said that operational recovery decisions would be made by the Unified Command according to the circumstances.

Northern Gateway said that equipment caches would be pre-positioned at strategic locations, such as the west portal of the Hoult tunnel. It said that decisions regarding the location or use of pre-positioned equipment caches would be made during detailed design and planning, based on a number of considerations including, but not limited to, probability of a spill, access, site security,
environmental sensitivities, and potential for oil recovery at the response site.

(vol 2 page 153)

In its ruling, the Joint Review Panel said

The Panel finds that Northern Gateway’s extensive evidence regarding oil spill modelling, prevention, planning, and response was adequately tested during the proceeding, and was credible and sufficient for this stage in the regulatory process.
Parties such as the Province of British Columbia, Gitxaala Nation, Haisla Nation, and Coalition argued that Northern Gateway had not provided enough information to inform the Panel about proposed emergency preparedness and response planning. The Panel does not share this view.

Northern Gateway and other parties have provided sufficient information to inform the Panel’s views and requirements regarding malfunctions, accidents, and emergency preparedness and response planning at this stage of the regulatory process.

Many parties said that Northern Gateway had not demonstrated that its spill response would be “effective.” Various parties had differing views as to what an effective spill response would entail.

The Panel is of the view that an effective response would include stopping or containing the source of the spill, reducing harm to the natural and socio-economic environment to the greatest extent possible through timely response actions, and appropriate follow-up and monitoring and long-term cleanup. Based on the evidence, in the Panel’s view, adequate preparation and planning can lead to an effective response, but the ultimate success of the response would not be fully known
until the time of the spill event due to the many factors which could inhibit the effectiveness of the response. The Panel finds that Northern Gateway is being proactive in its planning and preparation for effective spill response….

The Panel is of the view that an effective response does not guarantee recovery of all spilled oil, and that that no such guarantee could be provided, particularly in the event of a large terrestrial, freshwater, or marine spill.

The oil spill preparedness and response commitments made by Northern Gateway cannot ensure recovery of the majority of oil from a large spill. Recovery of the majority of spilled oil may be possible under some conditions, but experience indicates that oil recovery may be very low due to factors such as weather conditions, difficult access, and sub-optimal response time, particularly for large marine spills. …

To verify compliance with Northern Gateway’s commitments regarding emergency preparedness and response, and to demonstrate that Northern Gateway has developed appropriate site-specific emergency preparedness and response measures, the Panel requires Northern Gateway to demonstrate
that it is able to appropriately respond to an emergency for each 10-kilometre-long segment of the pipeline.

The Panel notes the concerns of intervenors regarding Northern Gateway’s ability to respond efficiently and effectively to incidents in remote areas, and its plan to consider this during detailed design and planning. The Panel finds that Northern Gateway’s commitment to respond immediately to all spills and to incorporate response time targets within its spill response planning is sufficient to
address these concerns. Northern Gateway said that its emergency response plans would incorporate a target of 6 to 12 hours for internal resources to arrive at the site of a spill. It also said that it would target a response time of 2 to 4 hours at certain river control points.

The Panel agrees with Northern Gateway and several intervenors that access to remote areas for emergency response and severe environmental conditions pose substantial challenges. The Panel notes that the company has committed to develop detailed access management plans and to evaluate contingencies where timely ground or air access is not available due to weather, snow, or other logistic
or safety issues.

Despite the EPA letter (which admittedly was released long after the JRP evidentiary deadline) that shows that Enbridge did not consult the people of Comstock Township, Michigan, the JRP says

The Panel accepts Northern Gateway’s commitment to consult with communities, Aboriginal groups, and regulatory authorities. The objective of this consultation is to refine its emergency preparedness and response procedures by gaining local knowledge of the challenges that would be present in different locations at different times of the year
(Vol 2 p 165-167)

EPA letter to Enbridge denying deadline extension  (pdf)

DFO hands over fisheries protection along pipelines to the NEB

 

The Department of Fisheries and Oceans has handed responsibility for fish and fish habitat along pipeline routes over to the National Energy Board. The same agreement also gives the National Energy Board responsibility for dealing with First Nations fisheries if a pipeline or power line crosses their traditional territory.

DFO and NEB quietly announced a memorandum of agreement on December 16, 2013, that went largely unnoticed with the release three days later of the Joint Review Panel decision on Northern Gateway and the slow down in news coverage over the Christmas holidays.

Update January 16, 2013: DFO clarifies relationship with NEB on fisheries protection along pipeline routes

As of December 16, 2013,  Enbridge no longer has to apply to DFO for permits to alter fish habitat along the Northern Gateway route. It was also on December 16 that Kinder Morgan filed its application with the NEB for the expansion of its pipeline from Alberta to Burnaby.

Fish and fish habitat along those pipeline is now the responsibility of the Alberta-based, energy friendly National Energy Board.

On its website, the NEB says

Applications submitted to the NEB shall be reviewed under the Fisheries Protection Provisions of the Fisheries Act to determine if impacts shall occur, and if an authorization will be required under the Fisheries Act. The NEB shall also become responsible to determine if proposed projects will impact aquatic species at risk and require permitting under the Species at Risk Act. If the NEB determines than an authorization or permit will be required, DFO shall be notified and will be responsible for issuing the authorization or permit.

This MOU better integrates the Government of Canada’s initiative to streamline application processes by eliminating the requirement for duplicate reviews.

In the “Guiding Principles” of the memorandum of understanding between DFO and NEB, the first provision is

The Parties will use the provisions of this MOU to support the Government of Canada’s regulatory process improvement objectives through coordination to:
Facilitate effective and efficient use of government resources in order that regulatory decisions are made in a timely manner by applying a one-project one-review approach;
Promote clarity and consistency of the regulatory decision making process; and
Ensure responsibilities for mitigation, monitoring and reporting, compliance and enforcement, follow-up monitoring, and Aboriginal consultation are addressed.

Protecting fisheries and fish habitat is only the third priority in the MOU

Conservation and protection of fish and fish habitat, and listed aquatic species at risk and their critical habitat, will be managed in accordance with DFO’s regulatory and policy frameworks for the application of the fisheries protection provisions of the Fisheries Act and SARA [Species at Risk Act] respectively.

The question most people on the northwest coast and along BC’s rivers will ask (whether or not they support or oppose pipeline projects): Just how much expertise, if any, in fisheries and fish habitat can be found in the Calgary offices of the National Energy Board?

According to the FAQ posted on the NEB website, it is now up to the NEB to determine whether a project impacts fisheries or species at risk.

How will the MOU affect authorizations under the Fisheries Act?

The NEB will assess a project application and determine if mitigation strategies are needed to reduce or prevent impacts to fish or fish habitat. If the project could result in serious harm for fish then the NEB will inform DFO that a Fisheries Act authorization under paragraph 35(2)(b)  is likely to be required. DFO will review and issue an authorization when appropriate, prior to project construction. Authorizations issued by DFO would relate to those watercourses impacted, not the entire project.

How will the MOU affect permits under SARA?

The NEB will assess a project application for potential impacts to aquatic species at risk. If an impact to a SARA-listed aquatic species may occur, the NEB will inform DFO.  DFO will review and issue a permit under SARA when appropriate, prior to project construction.

The NEB claims that the MOU will not affect environmental protection

Will this MOU reduce environmental protection?

No, the NEB has always considered impacts to fish and fish habitat and aquatic species at risk when making its decisions. The initial assessment of impacts of federally regulated pipeline and power line projects

 

Another potentially troubling aspect of the agreement is that it makes the National Energy Board the lead agency in dealing with First Nations.

when the Crown contemplates conduct that may adversely affect established or potential Aboriginal and treaty rights in relation to the issuance of authorizations under the Fisheries Act, and/or permits under SARA, the NEB application assessment process will be relied upon by DFO to the extent possible, to ensure Aboriginal groups are consulted as required, and where appropriate accommodated;

 

Canada’s First Nations have dealt with DFO for generations and by and large both sides understand each other’s aims, even if they don’t always agree.  The NEB, however, at least as seen during the JRP hearings, often showed little understanding or respect for First Nations.  That means that already troubled relationship between First Nations and the Crown over pipelines is going to get a lot more troubled.

 

The memorandum of understanding between DFO and MOU is yet another result of the Harper government’s omnibus bills, which have the aim of efficiently approving energy projects while downplaying environmental costs.

It also means that from now on there must be a much more careful reading of the 209 conditions imposed by the Joint Review Panel on Enbridge to see if those conditions are actually going to be rigorously enforced or if all Enbridge has to do is to file reports with the NEB.

It also appears that the new and highly restrictive NEB procedures that restrict input from all but those the NEB considers “directly affected’ by a project will also apply to their new responsibility for fisheries.

 

How Gateway’s plans to dredge Douglas Channel show the limitations of the JRP mandate and ruling

(First in series of reports on how the Joint Review Panel report will affect the Kitimat region)

JRP map of blasting on Douglas Channel
Joint Review map of Northern Gateway plans for dredging and blasting on Douglas Channel (JRP)

 

If there is a significant flaw in the Joint Review Panel report on Northern Gateway, it can be found in the panel’s analysis of Enbridge Northern Gateway’s plans to blast and dredge at the proposed Kitimat terminal site.

While the Joint Review Panel does consider what it calls “cumulative effects,” the panel plays down those effects and offers no specifics about interaction between the Northern Gateway project and the two liquified natural gas projects, the KM LNG project at Bish Cove and the BC LNG floating terminal at the old log dump.

It appears the JRP considered the legacy effects of the Rio Tinto Alcan smelter and other Kitimat industries while not taking into consideration future development.

The dredging and blasting planned by Northern Gateway, as Enbridge said in its evidence,  appears to have only a minimal effect on Douglas Channel.

A glance at the map in the Joint Review ruling shows that that the dredging and blasting site is directly opposite Clio Bay, where Chevron, in partnership with the Haisla Nation, plan a remediation project using marine clay from the Bish Cove construction site to cap decades of sunken and rotting logs.

The Clio Bay project was not part of the evidence before the Joint Review Panel, the plans for the project were not formulated until well after the time for evidence before the JRP closed. But those deadlines show one area where the rules of evidence and procedure fail the people of northwestern BC.

The JRP is a snapshot in time and changes in the dynamics of the industrial development in the Kitimat Arm are not really considered beyond the terms of reference for the JRP.

It appears from the report that Enbridge plans to simply allow sediment from the blasting and dredging to float down Douglas Channel, dispersed by the currents and the outflow from the Kitimat River.

Northern Gateway said that dredging and blasting for marine terminal construction would result in a sediment plume that would extend over an area of 70,000 square metres for the duration of blasting activities.

Approximately 400 square metres of the assessed area of the marine terminal is expected to receive more than 1 centimetre of sediment deposition due to dredging. Outside of this area, typical sediment deposition levels alongshore where sediment is widely dispersed (a band approximately 4 kilometres long and 400 metres wide) are very low; in the range of 0.001 to 0.1 centimetres. Dredging and blasting activities are expected to occur over a period of approximately 18 weeks.

Northern Gateway expected most of the sediment plume created by construction activities to be minor in relation to natural background levels.

Northern Gateway would use bubble curtains to reduce pressure and acoustic effects of blasting, and silt curtains to reduce the effect of sedimentation from dredging. It said that bubble curtains are used extensively for other activities, such as pile driving, to reduce the effect of high pressure pulses that can cause injury to fish.

It added that bubble curtains have been tested extensively with blasts, and literature shows they are effective.

Northern Gateway said that physical effects from suspended sediment on marine fish and invertebrates could include abrasion and clogging of filtration mechanisms, which can interfere with ingestion and respiration. In extreme cases, effects could include smothering, burial, and mortality to fish and invertebrates. Direct chemical-related effects of suspended sediment on organisms, including reduced growth and survival, can also occur as a result of the uptake of contaminants
re-suspended by project construction activities, such as dredging and blasting, and as a result ofstorm events, tides, and currents.

The Haisla Nation and Raincoast Conservation objected to Northern Gateway’s figures, noting

Northern Gateway’s sediment and circulation model and its evidence related to contaminated sediment re-suspension at the terminal site. Both parties said that the sediment model was applied for the spring, when the increase in total suspended solids would be negligible compared to background values. In the event of delays, blasting and dredging would likely occur at other times of the year when effects would likely be higher, and these scenarios were not modelled.

The panel’s assessment of the area to be blasted found few species:

Species diversity within Kitimat Arm’s rocky intertidal community is generally low. Barnacles, mussels, periwinkles, and limpets can be found on rocky substrate. Sea urchins, moon snails, sea anemones, sea stars, and sea cucumbers are in shallow subtidal areas. Sandy areas are inhabited by commercially-harvested bivalves such as butter clams and cockles.

Northern Gateway told the JRP that it would “offset” any damage to Douglas Channel caused by the blasting and dredging

Northern Gateway said that construction, operations, and decommissioning of the marine terminal would result in both permanent and temporary alteration of marine fish habitat. Dredging and blasting, and installing physical structures in the water column for the marine terminal would permanently alter marine fish habitat. Based on the current terminal design, in-water site preparation would result in the physical alteration of approximately 1.6 hectares of subtidal marine habitat and 0.38 hectares of intertidal marine habitat. Northern Gateway expected approximately 353 square metres of subtidal marine habitat and 29 square metres of intertidal habitat to be permanently lost.This habitat would be compensated for by marine habitat offsets.

The project’s in-water vertical structures that would support the mooring and berthing structures could create new habitat, offsetting potential adverse effects. The structures may act as artificial reefs, providing marine fish habitat, food, and protection from predation. Although organisms currently inhabiting the work area would be killed, the exposed bedrock would be available for colonization as soon as the physical works are completed.

In its finding on marine sediment, the panel, as it does throughout the ruling, believes that the disruption to the environment caused by previous and ongoing human activity, means that the Northern Gateway Kitimat terminal won’t make that much difference.

Sediment quality in the marine environment is important because sediment provides habitat for benthic aquatic organisms. Northern Gateway’s baseline data for the area immediately surrounding the marine terminal indicated some contamination of water, sediments, and benthic organisms from previous industrial activity. Industrial activities in the Kitimat area have released contaminants through air emissions and effluent discharges since the 1960s. Sources of contaminants to Kitimat Arm
include effluent from a municipal wastewater treatment plant, the Alcan smelter, Methanex Corporation’s methanol plant, and the Eurocan pulpmill, as well as storm water runoff from these operations and the municipality.

Area is largely controlled by natural outflow from the Kitimat River with suspended sediment levels being highest during peak river runoff (May to July, and October) and lowest during winter. Storm events, tides, and currents can also suspend sediments. Levels of total suspended solids fluctuate seasonally and in response to climatic variations, but are generally highest during the summer.

Commercial and recreational vessels currently operating in the area may increase suspended solids by creating water turbulence that disturbs sediments. Given the current sediment contamination levels and the limited area over which sedimentation from construction activities would be expected to disperse, the Panel finds that the risk posed by disturbed contaminated sediment is low. Northern Gateway has committed to monitoring during construction to verify the predicted effects on sediment and water quality for both contaminants and total suspended solids..

The dredging and blasting section of the Joint Review Report is small when compared to the much more extensive sections on pipeline construction and tanker traffic, and the possible effects of a catastrophic oil spill.

Although minor, the marine sediment section exposes the question that was never asked, given the disruptions from years of log dumping at Clio Bay and Minette Bay and the decades of  developments at the mouth of the Kitimat River, and future development from LNG, when do cumulative effects begin to overwhelm? How much is enough? How much is too much? If every project continues to be viewed in isolation, what will be left when every project is up and running?