Gaby Poirier, BC operations manager for the Rio Tinto Aluminum metals group called it a shining moment as the first ingots from the new modernized potlines were wheeled into the also new Henning Hall at the Kitimat smelter on Tuesday, July 7. Referring to the nearly complete Kitimat Modernization Project (KMP), Poirier said, “It’s now like these ingots, our time to shine. Let’s all shine together and become the best aluminum smelter in the world.”
The Kitimat Modernization Project increases aluminum production capacity by 48 per cent. “I have no doubt that KMP will help secure the future for Rio Tinto in British Columbia as a supplier of high quality, low carbon footprint aluminium for the Pacific Rim customer,” Poirier told employee and guests at the First Metal ceremony. (The company held similar ceremonies later in the week for employees unable to attend the first event).
“As we move to ramp to full production sometime in 2016, the transition is still at an early stage. Now more than ever we have to keep the focus to have a safe, sustainable ramp up. When we reach our full capacity of 420,000 tonnes sooner than you think… we’ will have been here 60 years. We’re aiming for another 60 years now.
“It’s more than a ramp up for us; it’s our journey to be the best aluminium smelter in the world. And yes the best, nothing less. Everything starts with a dream. So today we’ve got about 10 pots started, there are still 374 to go. And all this ramp up will be done to a scheduled drum beat, with a safe and sustainable. So today’s a well-deserved celebration for first hot metal and we are now preparing our first metal shipment but there are still significant challenges among us that we’ll go through together. One team one goal. That’s the only way we’ll be successful by working together.”
The modernized smelter, which was delivered in line with the revised schedule and budget, is powered exclusively by Rio Tinto’s wholly owned hydro power facility [at Kemano] and uses the company’s proprietary AP40 smelting technology which will effectively halve the smelter’s overall emissions, Rio Tinto said in a news release.
Michel Charron, KMP Project Director with Rio Tinto’s Technology Group, told reporters that the project did come in at the revised budget of $4.8 billion up from the original estimate of $3.3 billion, discounting reports in some media that the costs had reached as high as $5.5 billion. ‘”They gave me 4.8 and I finished at 4.8,” Charron said.
Charron compared what’s left to do with someone moving into a new house. “There’s a bit of asphalt to be put in, there’s a bit of construction on the last part of the potline…. there’s three months to finish up everything, the little things, the painting, so we’re going to be doing that.”
As of July 7, KMP employed 1024 people, Charron said. As the construction finishes, he said, “The work force will be going down quite rapidly at the end of July and through August and September,”
The newly constructed Henning Hall cafeteria, meeting hall and change facility, named in honour of Paul Henning, now Vice President of Strategic Projects, was packed as Charron, Poirier, Henning, Phil Newsome, KMP Project Director for Bechtel, Sean O’Driscoll, Unifor 2301 president, Mayor Phil Germuth and Haisla Nation Deputy Chief Councillor Taylor Cross brought in the two ingots which were actually poured on June 29.
“As we focus on getting a brand new and somewhat very complex facility up to speed, I urge you to remember that safety remains our top priority, ” Poirier said. “If we get this right the start-up and ramp up will be right too. And this is the only way we can be successful in delivering that world class project. So now in a few words, it is now the time to show what four generations of aluminum producers can do,” Poirier said.
Poirier then turned to Haisla Nation hereditary chief Sammy Robinson. Robinson and his wife Rose unveiled a totem pole commissioned by Rio Tinto for Henning Hall.
The pole tells the story of a time when there were a lot eagles in the Kitimat region. One young man was told “to listen to your elders, listen to your mother, not to laugh at handicapped people, not to laugh at old people for they are good in their own way,” Robinson said. Another thing that this young man was told was never to pick up anything shiny, but he didn’t listen and tried to capture a fur seal that has shiny fur. Unfortunately, for the young man, at that moment a giant eel was swallowing the fur seal and dragging them both down to the bottom of the sea. The eagles, however, got together and lifted the seal and the young man from sea and he safely returned to the beach.
Taylor Cross, Deputy Chief Counsellor for the Haisla, said “It’s a great feeling that big companies like this are doing their best to protect the environment we all live in. Every last one of us enjoys this beautiful country we live in. Myself I’m on my boat almost every weekend, down the Channel. I want to that to continue that for the rest of my life and for my kids’ lives. I want to pass that knowledge on that I’m getting. This project created employment opportunities for us, contracting opportunities for the Haisla Nation and training that we would have never gotten.
“Our unemployment rate when from about 60 to 65 per cent down to may be five or eight per cent. Every Haisla Nation member who wanted to work was working. It was a great achievement, it gave them skills, training, anything they wanted to be. And getting ready for the next project that’s going to come through Kitimat.” Cross warned that with KMP ending, unemployment among the Haisla will be going up again. The legacy agreement signed between Rio Tinto and the Haisla will ensure that members of the First Nation will continue to be trained and be part of running the smelter. A Haisla joint venture runs catering for the cafeteria.
Paul Henning, who had pushed the modernization project for years was greeted by a sustained round of applause. He opened his talk by saying how he told Sean O’Driscoll about the intent to modernize the plant. “He was the kind of guy like Gabby is striving and thriving and pushing and pulling. Nothing was a barrier, nothing was too high to climb to get this project and this guy said ‘hey just cool it these mega projects can take a decade.’ Well boy did we show him. Boy did we show him Boy did we show him, we did in it nine years,” as the guests laughed.
“Of course we have a wonderful platform. The platform not only being Kemano…the Douglas Channel and of course the site that… we have here in BC. The modernized smelter we know well. It is world class we have adopted the best technology we can apply in this location coupled to the lowest cost energy supply to a smelter anywhere in the world with access to global markets particularly the Asian Pacific Rim
“Sounds like a factor of success to me. If you’re going to build it, you build it right here.
“Even though the economic climate was difficult during the journey we’ve been through, I always felt that I had support at every level. We continued to get funding, even if it at sometimes it was smaller than we wanted. We got funding to keep this project alive. We engaged at different levels the creativity in construction… to help us get over that threshold and that hurdle to allow us to be here today. to be able to celebrate this fantastic milestone.
“I truly believe that KMP is a catalyst for megaprojects in the northwest. I am fortunate to be involved in other projects that are looking to come to Kitimat and they’re going to come to Kitimat because of its location but what I think you’ve also demonstrated as a community that they’re coming to Kitimat because of its people, As a host community you’ve demonstrated that you can live alongside and support three and half thousand construction professionals at any given time,
“I’m delighted that we’re through. I’m delighted that the team has got through before the next wave comes.
“I hope that legacy of the learning is two things, It’s enabled the community to be ready and be better prepared for the next one, also for those companies to learn from some of the opportunities and challenges we’ve been through and overcome.
“It was built in Kitimat BC by Canadians… I think at one point I think we had a hundred international workers. So the [labour agreement] allowed the ebb and flow of workers here form a Canadian base. I think that is also a true success factor.”
“For myself each milestone that we go through is a pinch. My goodness we actually pulled this off. We actually pulled this off. So my challenge, you know have the tools. you know have the equipment. You have the people, I was never worried about the people, smelting is in our DNA, three perhaps four generations of smelter experts in Kitimat. Now is your time to show what the best smelter in the world can do.”
Haisla Nation Chief Counsellor spoke at Mt. Elizabeth Theatre on June 9, 2015, introducing David Suzuki who was on a speaking tour. This is a lightly edited report on his remarks that outline some of the dilemmas facing the Haisla and the Kitimat valley in an age that needs development but faces climate change.
Among chiefs, I am elected, not hereditary, you are born into that position, I wasn’t born into it.
I am basically a regular commoner just like you guys with a high school education and one year of college and a lot of experience outside my community that I bring back.
These topics about climate change locally, provincially, nationally and worldwide, they’re complicated topics.
There’s no one true fix for all of it. The problem is that the Haisla have been thrust into the middle of it and we have to answer it, which is very unfair.
So when we’re talking about what really is a Haisla value, a west coast, a British Columbia value. I must tell you I value the Haisla people, my people, that land, the territory, I think about the Haisla people because I don’t think anyone has given the Haisla people a priority in the last 40 to 50 years.
All the decisions that were made about Haisla territory, that affected out people, were made without us.
The result was that we ended up with 80 per cent unemployment, historically over the last 40 years we have ended up with cancer and we can’t get rid of it.
Poverty, people couldn’t get enough money to fix their bathrooms when the floor was rotting out.
The saying is that you can always tell when the reserve starts is when the pavement ends is true. Unless there’s a political agenda to actually pave the road to the village. The environmental questions that have been raised over the past ten years are not new to the Haisla.
In the 70s it was the Haisla alone who tried to battle emissions when nobody even knew what emissions meant. They tried to stop the effluent dumping into the river that killed off the river they tried to stop the diking of the river so parts of the land could be protected, parks.
When the Haisla knew that the oolichan that was estimated to be hundreds of thousands of tons, were dying off quickly in the span of five years. Nobody listened.
Now the DFO and Canada is realizing that the demise of the oolichan is a signal that something is wrong with the ecosystem.
I would love that someone would come around to the idea of thanking the Haisla people for all the work that they did and went and unheard even in meetings like this today.
And we’re not even talking about salmon.
In all this time, I’ve read all the documents, all the speeches and listened to all the promises of a better tomorrow for all the people but nobody delivered it.
Countless academic papers have been written about Indian poverty.
Nothing was done.
Non-profit organizations used the Haisla to further their cause and left town when they had achieved what they had achieved.
At the same time all the decisions continued to be made without us. And everybody benefited except us.
What happened in the end and the corporations made their billions and made enough money to pay off the mortgage and move down south, the Haisla were left with the mess to clean up. Today we’re still battling to get some of these sites cleaned up and we’re still not getting help.
I don’t blame anyone for this. Whether you’re am environmental organization, a government or a corporation or a non-profit organization, I don’t blame you for this because you have a mandate, you have a special interest. That’s what you’re trying to achieve.
I have a mandate. I do have an organization now that is fully equipped to look at every single permit that comes from the provincial government and the federal government and try to mitigate it given our capacity and our lack of funding.
But some of that benefit has to flow to the Haisla people. It’s our territory.
When you think about what has happened to us, the Haisla, we think about residential schools and I’ve been reading the debate on whether or not it’s genocide or not and I think people are missing the point.
Residential schools were only 10 per cent of a larger program to get rid of the Indian.
The ninety per cent was what was stolen from us as well. The land was taken away and we were put on a chunk of land across the Channel, that was described by the Indian Agent as worthless, it’s not even good for agriculture so give it to the Indians. We had to get permission from the federal government to leave that reserve. We had to get a piece of paper that said he’s allowed to leave the reserve and go pick berries.
We also have had no help other than some academic programs and some sort of study to deal with our suicides. I’m not just talking Haisla here. I really thought that one suicide every five years was really a bad thing. But finding out that my neighbors down the road from here to Prince George are dealing with ten suicides in the first quarter of this year.
It breaks my heart.
Who is responsible for that? If it’s not the government, if it’s not the non-profits, if it’s not corporations, who is it?
I stepped up and said I’ll take full responsibility for this but that means I have a hard message to deliver and I will deliver it on behalf of the Haisla people.
When it comes to climate change, we are living at a very unfortunate time, because finally we’re accepted at the provincial table, at the federal table, the corporate table.
We’re being included but unfortunately, we have to look at climate change as well. It’s a very tough position to be in when you’ve got a Grade 12 education from 1984 and one year of college education in 1985.
It’s a very tough topic, I can tell you. I’ve been to China, I’ve been to Korea and no matter what you say about the emissions there, Canada and BC have no problems with emissions here until you visit China.
They’re not going to get off crude oil, they’re not going to get off diesel fuel, they’re not going to give up coal because a billion people there want the same standard of living that you have in Canada. And I’m talking about India as well. They want the same standard. They want good houses; they want to own a car. They are not going to stop their thirst for energy.
I don’t have the answers.
I still believe that natural gas is a lot cleaner than coal and even if you put a small dent in it, it’s not enough to get these guys off nuclear power.
And the solar power you’re talking about, they do it for show but that’s not going to meet the energy needs of China. We’re not even talking about India; we’re not even talking about Korea.
You say can you help get China off dirty fuel, but all their pollution keeps getting dumped on South Korea.
I represent 1700 people, how am I going to do that?
We’re being asked to do a near impossible task while I’m trying to dig my people out of poverty. At the same time, when we get this opportunity we’re giving our members very mixed messages, including our young people which is heart breaking for me.
Because we’re telling them get an education, don’t be a burden on society, get a job, but by the way there are no jobs here, there’s no way to get into existing industries so you better go to the oil fields of Alberta to get a job. A lot of our people head over there or to Vancouver.
I’ve been following this debate on climate change for quite a while now, for over six years. I’ve been listening to everybody, I’ve been listening to corporations, being listening to governments, been listening to non-profits, but on behalf of the Haisla Nation Council, I’m here to tell you, that when it comes to the future of the Haisla I have very little patience with this. I don’t want to see another essay about what to do about Indian suicides.
I believe that our people are being sick and tired of being left out and left behind, while everyone else is moving on with their lives. I do want to what’s best for the region I do want to do what’s best for the province and Canada and the world. But I will not do it at the expense of the Haisla people. We’ve been at the dirty end of the tick for the last 40 years. It’s going to stop. Thank you very much and enjoy your evening.
Bob McLeod, who recently retired as the District of Kitimat’s emergency coordinator, told Northwest Coast Energy News: “I think we’ve done quite a bit. One of the biggest issues in the first one was trying to get information out. We’ve come a long way on that. Whether you reach everyone or not, that’s another thing, because you never reach everybody. One of the critical things to me is getting the information out so you avoid all this Facebook, Twitter speculating and rumour. The communications aspect has improved a hundred fold.
“We did more work on the mapping and planning. Over the course of the last year, there were a lot of meetings with industry and various stakeholders, discussing emergency preparedness in general but touching on some of these other things as well.
“One of the things we did was to try to set up some shelter points. We have an agreement with the Baptist Church, the Catholic Church and the Seventh Day Adventists. They’re strategically located and could be gathering points for the various neighborhoods if necessary.
“We’ve also done quite a lot of work on Riverlodge as a group lodging centre, thinking in terms of an earthquake where there may be damage and you have to move people.
“We did look at the evacuation planning and we’ve had a couple of exercises involving that, looking strategically about how can you move people from certain neighborhoods, asking which neighborhoods would be at the most risk if you ended up with a tsunami situation.
As for tsunamis, McLeod said, “From everything we’ve heard and been told, tsunamis in extremely deep water like that is not going to be as dangerous as one in shallower water, but the possibility is still there.
“The thrusts are the killers when it comes to tsunamis, but there is a very good warning system on the tsunamis. We do get very very rapid feedback on the earthquakes.
“The only danger in that regard is if you have a severe earthquake and you have part of a mountain drop into the salt chuck, you’re going to get a massive wave and you’re going to get no warning whatsoever, like the Moon Bay collapse in the seventies.
“The emergency plan is in good shape. We scheduled a number of exercises last year through training programs.
“One of the things I personally push is personal preparedness. I think as a community, we fail greatly at that. That was evident even during the snowstorm. People are not just prepared to look after themselves, it’s unfortunate. You just have to keep chipping away.”
Last week, Northwest Coast Energy News asked Rio Tinto Alcan and the Haisla Nation Council if either could comment on updated earthquake or tsunami response plans. So we have received no answers.
Chevron, the lead corporation in the Kitimat LNG project announced on January 23 that the Moricetown Indian Band had agreed to join the First Nations Limited Partnership, in effect, approving the Pacific Trail Pipeline that would take natural gas to the project in Kitimat.
Here is the news release from all parties involved.
Vancouver, British Columbia, January 23, 2015 – The First Nations Limited Partnership (FNLP) today announced that Moricetown Indian Band (Moricetown) has joined the FNLP. The FNLP is a commercial partnership that, with the addition of Moricetown, now includes all of the 16 First Nations whose traditional territory is located along the proposed 480 kilometre Pacific Trail Pipeline (PTP) route from Summit Lake to Kitimat, B.C.
“The decision of the Moricetown First Nation Band Council to join the First Nations Limited Partnership is one that we warmly welcome,” said the Honourable Bob Rae, Chairman of FNLP.
“It means all 16 First Nations along the proposed Pacific Trail Pipeline route are partners in a unique approach that combines environmental stewardship, extensive job, procurement, and other economic benefits, and direct financial transfers on a regular basis to each First Nations community.”
The FNLP is without precedent in the Canadian energy industry and the Pacific Trail Pipeline is the only proposed natural gas pipeline for a liquefied natural gas (LNG) facility in B.C. with such a benefits agreement. The proposed PTP and Kitimat LNG Facility projects are owned by Chevron and Apache through a 50/50 joint venture and are operated by Chevron.
“This agreement is unparalleled in balancing strong economic growth measures with preserving our cultural heritage and the environment. There is, quite simply, no other deal that comes close to what we’ve been able to achieve in this partnership,” said Chief Dan George of Ts’il Kaz Koh (Burns Lake).
The commercial partnership ensures that FNLP Nations receive immediate and long-term benefits from the PTP project. These include up to $550 million in direct financial benefits over the life of the PTP project, including a recent enhanced benefit of $10 million a year operating life of the PTP project from the Province of British Columbia. The FNLP Nations also receive substantial economic development, skills training, employment and contracting benefits from PTP under the terms of the agreement.
“Chevron Canada wishes to commend all parties for creating a partnership between industry and First Nations based on mutual respect, trust and economic self-determination. We welcome Moricetown as the 16th member of the FNLP, and look forward to building the Pacific Trail Pipeline with First Nations in a manner that places the highest priority on protecting people and the environment,” said Jeff Lehrmann, President, Chevron Canada Limited.
Measures that reflect environmental protection, vitality of traditional cultural values, protection of aboriginal rights and title, economic self-determination and a sustainable future for First Nations are also part of the FNLP agreement. Members of the FNLP have already received significant benefits to date from the agreement, including $17 million in financial payments.
“We have already seen over 1,600 First Nations members receive skills training through the PTP Aboriginal Skills to Employment Partnership, better known as PTP ASEP. Over 900 of these trainees have found jobs,” said Chief Karen Ogen of the Wet’suwet’en First Nation.
First Nations employment currently accounts for 54 per cent of all early works construction workforce hours to date on the Pacific Trail Pipeline. To date, FNLP members have also been awarded over $245 million in PTP construction contracts, and over 65 per cent of construction contract expenditures have been made to member First Nation businesses.
The agreement also facilitates joint ventures between FNLP and companies engaged in the PTP Project. As such, the FNLP Nations not only have a clear financial interest in the pipeline construction but, just as importantly, also have a strong voice in ensuring the preservation of environmental and cultural integrity.
“The FNLP is an innovative model for how industry and First Nations can cooperate effectively with respect to major economic development projects,” said the Honourable Bob Rae.
About First Nations (PTP) Group Limited Partnership (FNLP)
The First Nations (PTP) Group Limited Partnership (FNLP) is a limited partnership of 16 First Nations whose traditional territories are located along the transportation corridor between Summit Lake and Kitimat, British Columbia.
FNLP was formed to secure significant, reliable and long-term economic benefits for its limited partners from the proposed PTP Project.
FNLP member Nations are:
* Haisla Nation
* Kitselas First Nation
* Lax Kw’alaams Band
* Lheidleh T’eneh First Nation
* McLeod Lake Indian Band
* Metlakatla First Nation
* Moricetown Indian Band
* Nadleh Whut’en First Nation
* Nak’azdli Band
* Nee Tahi Buhn Indian Band
* Saik’uz First Nation
* Skin Tyee First Nation
* Stellat’en First Nation
* Ts’il Kaz Koh First Nation (Burns Lake Indian Band)
* West Moberly First Nations
* Wet’suwet’en First Nation
About PTP and the Pacific Trail Pipelines Limited Partnership
The proposed 480-kilometre Pacific Trail Pipeline Project is jointly owned by Chevron Canada Limited (Chevron) and Apache Canada Ltd. (Apache) through the Pacific Trail Pipelines Limited Partnership (PTPLP). The PTP is intended to deliver natural gas from Summit Lake
B.C. to the proposed Kitimat LNG facility on B.C.’s north coast. The Pacific Trail Pipelines Limited Partnership (PTPLP) acquired the project in February 2011 from Pacific Northern Gas.
The fact that the Moricetown Band had held out for so long was seen as one of several factors that was holding up a Final Investment Decision by Chevron and its soon to be new partner, Australia’s Woodside Pretroleum, which is currently finalizing a deal to buy Apache’s stake in the project. Chevron vice chairman, George Kirkland was asked about it during an investor conference call in August, 2014 At the time, Kirkland hinted at the potential problems with the Pacific Trails Pipeline, where there is still a dispute with members of the Wet’suwet’en First Nation. “We’re going to focus on the pipeline and the end of the pipeline corridor. That’s important and we’re putting some money into that to finalize the pipeline routing, get all our clearances and then we’ve got work going on.”
The Unist’ot’en Camp group which opposes energy development in the traditional territory of that House has not yet commented on the announcement. However, earlier Friday at a protest in Winnipeg, Freda Huson, Spokesperson for the Unist’ot’en People and Hereditary Chief Toghestiy of the Likhts´amisyu Clan, issued this statement.
¨The Hereditary Chiefs of the Wet´suwet´en People will stop all attempts from Pipeline Companies, Colonial Governments, and their sell-out employees from bringing Tar Sands Bitumen or Fracked Gas onto our lands. We have ancestral integrity which guides us and will help us ensure that we make the right decisions to protect our lands for all of our unborn generations. We will hold ALL those accountable for attempting to enable destructive agendas to take hold on our sacred lands. We will use our traditional governing systems, the colonial courts, grassroots Indigenous Peoples, and our media savy to make everyone associated with Pipelines, Tar Sands, and Fracking activity from affecting our unceded lands. We are armed with our indomitable spirit and 2 Supreme Court of Canada decisions and will use them against any more aggressors on our unceded lands. Consider this a warning for attempting to trespass on our homelands. We have defended our lands for countless generations and we will stand up like our ancestors have to ensure that we never are viewed as weak in the eyes of our ancestors or children.
If anyone wanted a snapshot (or for younger folks a selfie) of why the Harper government grounded out at home, never even getting to first base with northwestern British Columbia on Northern Gateway and other resource projects, it can be found in about sixty pages of documents, obtained by Northwest Coast Energy News under the Access to Information Act, documents that outline the planning for former Natural Resources Minister Joe Oliver’s first visit to Terrace in March 2013
The documents reveal the priority for Natural Resources communications staff was mainly finding an appropriate First Nations visual backdrop for Oliver’s speech announcing the appointment of Douglas Eyford as special representative to First Nations, the Harper government’s attempt to smooth relations as it dawned on the government that opposition to Northern Gateway wasn’t just going to disappear.
Despite years of media coverage from both those opposed to and even those who support the Northern Gateway project that highest priority issue was preventing oil spills whether from tankers or pipelines, the Ottawa-based communications planners in Natural Resources Canada were talking about how aboriginal and non-aboriginal communities could respond to oil spills.
For an event that was supposed to engage the First Nations of coastal British Columbia and gain their support for resource projects, all the economic examples are about Alberta First Nations who are working the extraction of bitumen in Alberta, there are no example of how BC First Nations might profit from Northern Gateway (that is if any BC First Nations actually wanted to do so)
When Natural Resources Canada started planning Joe Oliver’s announcement they created what was called a “Message Event Proposal” which even in its title shows how the government and the communications staff think. The message is more important than the event.
The planning documents from Natural Resources, starting on March 5, 2013, indicate that from the beginning the announcement was being treated as a photo op. Invitations to or participation by “stakeholders” are listed as N/A “not applicable,” which meant that meetings, even private meetings, with representatives of northwestern First Nations and other communities either weren’t considered or the communications staff weren’t informed. (If there were such plans they were not part of the access documents released and as far as Northwest Coast Energy News can find out no meetings took place since Oliver left for Ottawa immediately after the announcement)
The Natural Resources communications staff were working on multiple angles in March, as part of what the planning documents call “a suite of events in Vancouver on marine and pipeline safety.”
The first set of those events would eventually take place on March 18, 2013, in Vancouver, and included the announcement, without consulting either Rio Tinto Alcan or the District, that Kitimat’s private port run by Alcan since it was first built would be turned in a federal public port.
That location certainly wasn’t clear at first. The first documents suggested the announcement take place in Vancouver, and then a day later on March 6, the proposed venue, according to the staff, was in either Prince Rupert or Prince George.
According to the internal e-mails, sometime that week what Ottawa bureaucrats call MINO — the minister’s office– decided that the venue should be Terrace. On March 11, e-mails among Natural Resources staff show that the choice had changed to either Terrace or Prince George.
Since the “special representative” whom we now know would be Douglas Eyford, would report directly to Prime Minister Stephen Harper, the political level was involved. MINO took over writing Oliver’s speech and the arrangements were copied to the Privy Council Office, the civil service branch that has overall supervision of the federal bureaucrats and works directly with the Prime Minister. So the speech that the communications branch had drafted for Oliver became “can please turn the one we had done for him into the remarks for the new guy?”
Plan B in Prince George
The choice of Terrace left the Natural Resources Ottawa staff hedging their bets, looking for a “potential plan B” in Prince George. The e-mails indicate that Ottawa asked Natural Resources west coast communications officer for a list of suitable locations in Prince George.
The communications officer replied with three locations at the University of Northern British Columbia “a moving bear totem on campus” the main administration building which the e-mail said “ has a strong First Nations focus,” adding “Environment Canada has done…events there. Strong FN visuals.” The third choice was “a new bio energy facility that looks industrial.”
Backups were The College of New Caledonia trade centre and the Prince George industrial park.
E-mails from the staff on Wednesday, March 14 and Thursday, March 15, showed while they were now aware the event would be in Terrace, and probably at Northwest Community College, there was still a lot of uncertainty. “We haven’t been able to contact them to confirm, but as soon as we do, we will let you know the exact details as well as what is required in terms of logistics.”
Remembering that Natural Resources and Transport Canada were also planning the Vancouver event on Monday, March 18, it appears that even as Oliver arrived on the morning of March 19, the minister’s staff both political and bureaucratic were still scrambling.
On March 19, the NWCC staff on site were complaining that as soon as the Ottawa delegation saw the standard arrangements for an event at the Waap Galts’ap community long house they ordered the NWCC staff to immediately rearrange the room, so that the podium was in front of one wall with what Oliver’s staff thought was a better First Nations painting. That rearranging was still going on when I arrived to cover the announcement.
Even after the furniture was rearranged, the start was delayed as Oliver and his staff disappeared into an upstairs room for a meeting before the news conference began, and Oliver announced Eyford’s appointment.
During the question and answer session with the media during the news conference, the students that had essentially been brought in as props for the photo op and to help promote Northwest Community College’s industrial training program, began to ask questions.
One student asked Oliver if Eyford’s appointment was going to replace “all talks” with First Nations about resource projects. The Natural Resources public relations staff tried to cut off one student, since the national media were waiting on a telephone conference call. To his credit, Oliver did answer the student’s question, saying Eyford’s appointment was not intended to “replace the independent, regulatory review.” He went on to explain the Northern Gateway Joint Review would continue its work and report at the end of 2013.
What was Ottawa thinking? You too, can respond to an oil spill.
If the aim was to engage the First Nations and other residents of northwestern BC, it is clear that the concerns of this region hadn’t reached out Ottawa.
It appears from the planning documents for Joe Oliver’s trip to Terrace, that a main concern of everyone in the northwest, aboriginal and non-aboriginal, opponents and supporters of the Northern Gateway pipeline, preventing oil spills also wasn’t on the government radar, rather it was preparing and responding to oil spills.
Guess who would respond?
As part of the measures to strengthen Canada’s Marine Oil Spill Preparedness and Response Regime, the Government of Canada will strengthen the engagement and involvement of Aboriginal and non-aboriginal communities in preparing for and responding to oil spills.
When it comes to a key section on benefits from the Northern Gateway and other resource projects, there is no mention of benefits to British Columbia; rather it appears all the examples of benefits for aboriginal communities come from Alberta, including $1.3 billion in contract work for oil sands companies not including construction, for the year 2010, and $5 billion since 2001. The Message Event Proposal also cites a joint venture between the Bigstone Cree and Bronco Energy, “the biggest oil sands project every undertaken on First Nations reserve lands.”
Overall the plan was to “Promote Canada’s commitment to achieving its goals under its plan for Responsible Resource Development, including increased consultations with Aboriginal peoples.”
The “media lines’ issued by Natural Resources also outlined the Harper government’s attitude to the Northern Gateway, noting that Eyford’s appointment was independent of the Northern Gateway Joint Review, and went to indicate that the JRP was “conducting a rigorous, extensive, open, science-based assessment.” It adds that “we will continue to rely on the integrity of this process,” again showing how out of touch Natural Resources was (at least in talking points) since by March 2013, there was growing consensus in the northwest that the JRP had lost its credibility.
The media lines also show that the Harper government believed that “Aboriginal consultations are fully integrated into the review process to ensure meaningful consultation occurs,” a position that most First Nations in British Columbia reject, insisting on meaningful consultations between the Crown and the First Nation.
When Eyford presented his report to the Prime Minister in December, 2013, Eyford called for stronger action to engage First Nations opposed to new oil and gas pipelines.
“It’s never too late to engage and do so in a process of good faith negotiations… “This won’t be an easy process. I hope my report is perceived as providing objective and blunt advice to all the parties engaged in this process.’’
The 53 page report contained dozens of recommendations mainly concerned with a more open and principled dialogue with First Nations.
“The development of West Coast energy infrastructure provides an opportunity to forge partnerships and build relationships. There is a strong interest and real opportunity for Canada and aboriginal Canadians to more effectively collaborate to address their respective interests.’’
Editor’s note: On the port issue, an RTA spokesperson noted that talks with the federal government are continuing. He noted that all the Kitimat port facilities are privately owned, by Rio Tinto Alcan or by LNG Canada and there are “multiple stakeholders” involved.
There’s a dumb, dumb, really dumb idea that just won’t go away—that Enbridge could solve all its problems if only, if only, it would send the Northern Gateway Pipeline to Prince Rupert.
Enbridge long ago rejected the idea. Before Enbridge updated its website to make Gateway Facts, to make it slick and more attractive, the old website had an FAQ where Enbridge explained why it wasn’t going to Prince Rupert.
Did you consider running the pipeline to Prince Rupert where a major port already exists?
We considered Prince Rupert and Kitimat as possible locations. We carried out a feasibility study that took into account a number of considerations. The study found that the routes to Prince Rupert were too steep to safely run the pipeline, and that Kitimat was the best and safest option available.
Here in the northwest even the supporters of the Northern Gateway roll their eyes when they hear the old Prince Rupert story come up again and again – and it’s not just because these people support the Kitimat plans for Northern Gateway, it’s because those supporters (not to mention the opponents) have driven along the Skeena from Terrace to Prince Rupert.
There just isn’t any room for a pipeline. It’s a game of centimetres.
Alternatives to Kitimat?
Now the new premier of Alberta, Jim Prentice, who should know better if he’s going to lead that province, is hinting that Kitimat isn’t the only possible solution for the Northern Gateway.
Without specifying Prince Rupert, according to Gary Mason reporting in The Globe and Mail, Prentice was speculating about an alternative to Kitimat.
Asked whether he believes the Gateway terminus should be relocated to Prince Rupert or another destination, Mr. Prentice said, “Everything I’ve heard from the Haisla who live there is they don’t agree with the terminal being in Kitimat.” Is it possible to get First Nations approval if there is no support at the planned terminus site? “It’s pretty tough,” the Premier said.
Prince Rupert has a thriving local fishing industry that employs hundreds of people and is critically important to the local First Nations. He is convinced the community would not be willing to put that at risk.
“Overwhelmingly people in my community are much more comfortable with liquefied natural gas, with wood pellets, with coal, than any oil product,” he said.
The Prince Rupert Port Authority also rejected the idea
A spokesman for the Prince Rupert Port Authority said Wednesday there is currently no room for Enbridge to build at the port even if it wanted to. “We are fully subscribed,” Michael Gurney said. There are two large vacant lots within the port authority’s jurisdiction, but both are locked by other energy companies, earmarked for LNG projects.
So not only is there no room on the road to Prince Rupert, there is no room in Prince Rupert.
Let’s just consider for a moment that if Prince Rupert was the ideal location for the Northern Gateway terminal (which it is not), what would be needed to get the project going today.
The Northern Gateway Joint Review Panel would have be reconstituted or a new JRP created by the National Energy Board. That’s because the bitumen comes from Bruderheim, Alberta, crossing provincial boundaries and thus it’s in federal jurisdiction.
Even under the fast track rules imposed on the NEB by Stephen Harper’s Conservative government, new environmental and social impact studies would be required, starting from scratch. So add another five years of paperwork before a single shovel goes into the ground.
The pipeline would have to cross the traditional territory of First Nations that, so far, have not been part of the negotiations, mostly the Tsimshian First Nation as well as the Nisga’a First Nation which has a treaty establishing local rule over their territory.
In February 2012, the largest anti-Enbridge demonstration outside of the Lower Mainland took place in Prince Rupert, with the elders of the Tsimshian First Nation welcoming the elders and members of the Gitga’at First Nation, at Hartley Bay, which had organized the protest.
When I say there isn’t room for a pipeline along the Skeena, it also means that there isn’t any room for the pipeline corridor right-of-way. Enbridge, in its submissions to the Joint Review Panel, said it requires a 25 metre wide right of way for the pipeline corridor. (For the record that’s just over 82 feet).
Along that highway, as you will see, there’s barely enough room for the CN mainline and Highway 16 (also known as the Yellowhead Highway) and on a lot of places both the highway and the railway roadbed are built on fill along the side of a cliff.
Albertans’ desperate desire to see the Northern Gateway go to anywhere to what they call “tide water” keeps coming up like the proverbial bad penny. The latest came when Jim Prentice speculated about a new route for the Northern Gateway.
I knew I had an appointment coming up in Prince Rupert on Monday, September 29. So I decided that only way to prove to people sitting in Calgary, Edmonton and Fort McMurray playing with Google Maps that the pipeline to Prince Rupert was a really dumb idea was to shoot photographs to show just why the Northern Gateway will never go to Prince Rupert—at least along the Skeena.
As you drive out of Terrace, you pass two large swing gates (also called by some “Checkpoint Charlie” gates after the Cold War era crossing in Berlin.) At the first rest stop west of Terrace, there are another set of gates at the Exstew. There’s a third set of gates just outside Prince Rupert.
The swing gates are avalanche gates and, in the winter, Highway 16 can be shut down if an avalanche closes the highway or the danger from avalanche is too great to allow motorists to proceed. When you drive the highway from Terrace to Prince Rupert in the winter (the signs were covered up when I drove Monday) you are warned “Avalanche danger Next 13 kilometres. No stopping.”
The drive along the Skeena from just west of Exchamsiks River Provincial Park all the way to Tyee where the highway turns inland to reach northwest to Prince Rupert on Kaien Island is one of the most spectacular drives on this planet. The highway snakes along a narrow strip of land with steep mountain cliffs on one side and the vast river on the other.
The problem is that apart from locals and tourists, none of the “experts” whether journalist, think tanker, bureaucrat or politician have, apparently ever driven from Prince Rupert to Terrace.
When both Opposition Leader Tom Mulcair and Liberal Leader Justin Trudeau were in the northwest earlier this summer to “engage” with the local people, apart from short boat trips down Douglas Channel, they flew everywhere. Scheduling you know. Stephen Harper has never visited northwest BC and probably never intends to. His cabinet members fly in for photo ops and then are on the next plane out of town.
Of all the visiting journalists who have come to the northwest only a couple have bothered to drive around the region. Most fly-in fly-out. These days, most often budget-strapped reporters never leave their offices, interviewing the same usual suspects by phone on every story.
On Monday, I took most of the photographs on my way back from Prince Rupert to Terrace after my appointment, so the sequence is from west to east. There are also very few places along the river where you can safely stop. There are concrete barricades on both sides of the highway to prevent vehicles either going into the river or onto the narrow CN right-of-way.
There are, however, two rest stops and a number of small turnoffs on the highway, the turnoffs mainly intended for use by BC Highways, but which are also used by tourists, fishers and photographers.
The first image was taken at one of those highway turnoffs just east of Aberdeen Creek. This is what the highway and rail corridor are like all along the Skeena, the highway, bounded by concrete barricades, the CN rail line and then the towering mountains. Note where the telegraph and telephone lines are—further up the cliffside.
A closer view of the highway and rail corridor just east of Aberdeen Creek.
Here is the view of the Skeena River from the Aberdeen Creek turnoff. You can see to the east, a mountain and the narrow strip of fill land that supports the highway and the rail line.
You see the broad width of the mighty Skeena, the Misty River, as it is called by the Tsimshian First Nation and by everyone else who lives in the northwest and on the right side of the image, the highway and rail corridor built on fill.
Any room for a pipeline?
There’s another turnoff on the other side of the headland east of Aberdeen Creek, looking back the way we came.
The final small turnoff is just by the Kylex River. Again you can see how narrow the highway and rail corridor are.
A few kilometres further along—as I said the highway snakes and curves its way along the riverbank– you come to the Basalt Creek rest area. So this telephoto image shows a logging truck heading west, taken from Basalt Creek, looking back at the highway.
Again you can see both the highway and CN line are built on fill. Is there any room for a pipeline?
Any room for a 25 metre pipeline right-of-way?
Between Basalt Creek and Telegraph Point, a few kilometres to the east, again the highway and rail line hug the narrow strip between the river and mountains.
This shot, taken from Telegraph Point, in October 2013, shows a CN intermodal container train heading to Prince Rupert. The container trains and the coal trains usually have between 150 and 180 cars. If a winter avalanche took out a train, there would be environmental damage, but that damage would be insignificant from coal or containers compared to a train of railbit tankers carrying diluted bitumen.
At Telegraph Point, the second of the three rest stops between Prince Rupert and Terrace, again there is just a narrow strip between the mountain, the highway and the river.
Across the highway from the rest stop, you can again see the narrow corridor, the first shot looking west the rail line close to the cliff face, the second, east, with the waterfall, which you don’t see during the rest of the year, fed by the fall monsoon.
Two shots from the same location, Telegraph Point, taken in March, 2013, of a CN locomotive hauling empty coal cars back to the fields around Tumbler Ridge. (No waterfall in March)
Everyone has assumed that if Northern Gateway changed its route, the most likely choice given the configuration of the pipeline at the moment is to follow the Skeena.
If Enbridge wanted to try a northern route, similar to the one TransCanada contemplates for Petronas, Northern Gateway would again run into trouble.
It would require reopening or creating a new Joint Review Panel, many more years of environmental and social impact studies of the route, even under Stephen Harper’s fast track system. The TransCanada/Petronas pipeline would also cross the traditional territory of the Gitxsan First Nation and if Enbridge tried that the company would have to deal with the fact that it signed a controversial agreement with Elmer Derrick that was immediately repudiated by most members of the Gitxsan First Nation and eventually dropped by Enbridge.
So why does this idea of a pipeline to Prince Rupert keep coming up?
In most cases, the idea of the pipeline to Prince Rupert is always proposed by Albertans, not from any credible source in British Columbia, or the suggestions come from desk bound analysts in Toronto and Ottawa both in think tanks and in the newsrooms of dying newspapers who have never seen the Skeena River apart from a tiny handful who have looked at Google Street View
(Yes you can Google Street View Highway 16 along the Skeena, I recommend it if you can’t do the drive)
Perhaps the worst example of this failure of both analysis and journalism came in the Edmonton Journal on July 7,2014, when it published a piece by Bob Russell, entitled Opinion: Make Prince Rupert the terminus, which went over the same old inaccurate arguments.
The overland route currently proposed by Enbridge is fraught with environmental issues because it goes over coastal mountains and streams before entering Kitimat’s port. This port will also be the base of perhaps as many as four liquefied natural gas terminals, which will result in the channel always busy with LNG ships outbound and returning from many Asian ports.
There are existing rights of way for the major highway, the Yellowhead, and CN Rail line from Edmonton to the Port of Prince Rupert, so this eliminates the issue of transgressing First Nations lands. The technical issues of narrow passages can be overcome with engineering. In fact, the pipeline can be buried in the roadway at some restricted locations if absolutely necessary, but two different engineers have assured me that for the most part, the right of way should be able to handle the pipeline. A vital factor, of course, is to reduce the impact by eliminating the need for two pipelines.
The clue is how the Edmonton Journal describes Russell;
Bob Russell has an extensive background in planning and was a member of the Edmonton Metro Regional Planning Commission. He has flown the Douglas Channel, visited Kitimat and toured the Port of Prince Rupert.
This is so typical of the Albertan attitude toward northwest British Columbia, people fly in for a couple of days, make a quick observation, and fly out again and present themselves as experts on the region. (Some “experts” on Kitimat, very active on Twitter have apparently never left Calgary).
It obvious that the “two engineers” who assured him “the right-of-way could handle of pipeline” have no idea what they’re talking about. As the photos show there is barely enough room for a highway and a rail line much less a 25 metre wide pipeline corridor.
If the pipeline was to be built as Russell proposed, the only highway between Prince Rupert and the rest of Canada would have to be closed for years, there are no detours. All so a pipeline can be buried under the asphalt not in solid ground, but in the fill on the side of a riverbank in an avalanche zone?
Of course, closing a highway up here won’t inconvenience anyone in Edmonton or Calgary, will it?
Would CN be happy with years of disruption of their lucrative traffic to Prince Rupert with grain and coal outbound to Asia and all those containers coming in to feed Chinese products to the North American market? (you can be sure Walmart wouldn’t be happy about that, not to mention prairie farmers including those from Alberta)
There are existing rights of way for the major highway, the Yellowhead, and CN Rail line from Edmonton to the Port of Prince Rupert, so this eliminates the issue of transgressing First Nations lands.
Is also inaccurate.
I was told by First Nations leaders during the Idle No More demonstrations in the winter of 2013, that, a century ago, when the Grand Trunk built the railway along the Skeena , they did just that, built it without consulting the First Nations along the route, sometime digging up native cemeteries and sacred spots.
While apparently CN has worked in recent years to improve relations with the First Nations along the rail line, according to those leaders some issues of right-of-way remain to be resolved.
If there were any plans to build a diluted bitumen pipeline along that route, that would likely mean another court battle adding to those already before the Federal Court, a court battle that would cost Enbridge, CN, the federal government, environmental NGOs and the First Nations more millions in lawyers’ fees.
It’s doubtful if in the long gone (and perhaps mythical) days of “get it right” journalism that the Russell opinion piece would have passed the scrutiny of an old fashioned copy editor and fact checker.
In 2012, the Edmonton Journal (in a story no longer available on their website) also cited former Alberta Premier Peter Lougheed and former Bank of Canada governor David Dodge, as also favouring Prince Rupert.
Dodge, who was in Edmonton Tuesday to deliver a speech on the global economic outlook at MacEwan University, said Enbridge’s proposed Northern Gateway pipeline to Kitimat looks like even more of a long shot.
“I think the project to Kitimat looks, objectively, more risky. So why hasn’t much greater effort gone into looking at Prince Rupert and taking (bitumen) out that way? My guess is, the easiest place to get B.C. to buy into the project would be to go to Rupert.”
Dodge’s views echo those of former Alberta Premier Peter Lougheed, who also favours looking at an alternate pipeline route to Prince Rupert, where ocean-going supertankers can navigate more easily.
Back in 2012, I finished my piece for the Huffington Post by saying:
So why do people insist, despite the evidence, that the Northern Gateway go to Prince Rupert? It’s no longer an pipeline; it’s emotion and ideology. Ideology in that opposition to the Northern Gateway is seen by conservatives as heretical opposition to free enterprise itself. Emotion among those who see promoting the oil patch as an issue of “Alberta pride” and even Canadian patriotism.
For the promoters of the pipeline to Prince Rupert, ignoring the science of geology and the study of geography across all of northwestern B.C. is no different than repeatedly knocking your head against the Paleozoic metamorphic greenstone of the mountain cliffs along the Skeena. It only gives you a headache.
Things haven’t gotten much better in the past two years. In fact they’re getting worse as opposition to pipelines mounts.
It seems that in 2014 the Alberta and the federal government policy in promoting pipelines Northern Gateway, KinderMorgan’s TransMountain, Keystone XL, Line 9 Reversal and Energy East (slick PR and smiling representatives at open houses, politicians at strictly controlled photo ops) is to ignore facts on the ground and to refuse to deal with the concerns of local people from coast to coast.
There could, perhaps, be a more inclusive and truly science-based pipeline planning process that could see pipelines go on optimum routes but that isn’t happening.
The policy for the oil patch and its politician supporters when it comes to pipelines is facts and geology don’t really matter. So they put on ruby slippers, knock their heels together three times and send pipelines down a yellow brick road to an Emerald City (while telling the locals to ignore the man behind the curtain)
The Haisla Nation’s plan for entering the LNG business is based on the idea that “it is anticipated that the Haisla Projects will be developed using a business model based on controlling two components of the value chain: land and pipeline capacity” according to its application to the National Energy Board for a natural gas export licence.
Cedar LNG Development Ltd., owned by the Haisla Nation, filed three requests for export licences with the NEB on August 28, under the names Cedar 1 LNG, Cedar 2 LNG and Cedar 3 LNG. Another name used in the application is the “Haisla Projects.”
The 25-year export licence request is standard in the LNG business; it allows export of natural gas in excess of projected North American requirements. Thus like the NEB hearings for the Kitimat LNG and LNG Canada projects it is not what is called a “facility” licence which is what Enbridge Northern Gateway requested.
The project anticipates six “jetties” that would load LNG into either barges or ships at three points along Douglas Channel, one where the present and financially troubled BC LNG/Douglas Channel Partners project would be.
A second would be beside the BC LNG project, which may refer to the Triton project proposed by Pacific Northern Gas parent company Altagas.
Both are on land now owned by the Haisla Nation in “fee simple” land ownership under Canadian law.
The other four would be on land surrounding the current Chevron-led Kitimat LNG project along Douglas Channel and in the mountains overlooking Bish Cove which the Haisla have leased.
The move last week and the revelation of the Haisla’s plans for the land are a cumulation of Haisla Nation Chief Counsellor Ellis Ross’s idea of restoring more of the First Nation’s traditional territory by buying or leasing the land using standard Canadian land law and at the same time getting around some of the more restrictive provisions of the Indian Act that apply to reserve land.
Just how the Haisla will go into the pipeline business is not as clear as the First Nation’s acquisition of the land. The application says:
The pipeline capacity required to transport sourced LNG to the Haisla Projects will include a mix of new and existing pipeline and infrastructure. The Haisla are in the advanced stages of negotiating and drafting definitive agreements with the major gas producers and pipeline transmission companies located in the vicinity with respect to securing pipeline capacity. It is expected that the Haisla Projects will rely on the Haisla’s business partners or customers to source gas from their own reserves and the market.
With the Haisla basing their business strategy on land and pipelines, the First Nation’s strategy is looking for flexibility in what is a volatile and uncertain market for LNG.
The application says the Haisla “are currently in advanced stage discussions and negotiations with a number of investors, gas producers, LNG purchasers, pipeline transmission companies, technology providers and shippers. As such, the particular business models have yet to be finalized. However, it is anticipated that between the various Haisla Projects, multiple export arrangements may be utilized.”
As part of the idea of flexibility, the actual LNG infrastructure will be constructed and operated with potential partners. That is why there are three separate applications so that each “application will represent a separate project with independent commercial dealings with investors, gas producers, LNG purchasers, pipeline transmission companies, technology providers and shippers.”
The Haisla say that they are “working with a number of entities to develop business structures and partnerships to provide transaction flexibility, adequate financing, modern technology, local knowledge, and marketing expertise specific to Asian targets. The separate projects will accommodate expected production and demand and will also allow for a number of midlevel organizations to be involved with the various projects as well as traditional major gas producers and LNG purchasers.”
The Haisla are working with the Norwegian Golar LNG which had been involved in the stalled BC LNG project, using a Golar LNG’s vessels and technology, using a new design that is now being built in Singapore by Keppel Shipyard.
The filing says the project will “be developed using either barge-based or converted Moss-style FLNG vessels. The terminals will consist of vessel-based liquefaction and processing facilities, vessel-based storage tanks, and facilities to support ship berthing and cargo loading”
The jetties to be used for the Haisla Projects may be either individual FLNG vessels or “double stacked”, meaning that the FLNG vessels are moored side-by-side at a single jetty. The Haisla have conducted various jetty design work and site /evaluation studies with Moffat and Nichol.
The Haisla Projects anticipate that the construction will be in 2017 to 2020, “subject to receiving all necessary permits and approvals” and is expected to continue for a term of up to twenty five years. There is one warning, “The timelines of the Haisla Projects will also depend on the contracts and relationships between the Applicant and its partners.”
The filing goes on to say:
Haisla Nation Council and its Economic Development Committee are committed to furthering economic development for the Haisla. The Haisla’s business philosophy is to advance commercially successful initiatives and to promote environmentally responsible and sustainable development, while minimizing impacts on land and water resources, partnering with First Nations and non-First Nations persons, working with joint venture business partners, and promoting and facilitating long-term development opportunities.
The Haisla Applications will allow the Haisla to be directly involved as participants in Canada’s LNG industry, rather than having only royalty or indirect interests. The Kitimat LNG and LNG Canada projects, and the associated Pacific Trails Pipeline and Coastal Gas Link Pipeline, have increased economic opportunities in the region and the Haisla are very supportive of these projects locating within the traditional territory of the Haisla. The support of the Haisla for these two projects reflects a critical evolution of the Haisla’s economic and social objectives.
The Haisla Nation have filed an application with the National Energy Board for their own liquified natural gas export project, according to industry newsletters.
There is nothing at this point in the public section of the NEB website, probably due to the holiday weekend. Northwest Coast Energy News is contacting Haisla leaders for confirmation.
According to both the Daily Oil Bulletin and Natural Gas Intelligence the Haisla have formed three companies, Cedar 1 LNG Export, Cedar 2 LNG Export and Cedar 3 LNG Export, and have applied to the NEB for three standard 25 year export licences.
According to Natural Gas Intelligence:
The filings with the National Energy Board (NEB) envision construction starting in 2017-2020 of a network of six jetties or docks jutting out from Haisla land on the shore of Douglas Channel for floating LNG vessels. Each requested export license would enable operations by two jetties.
The plan calls for a mini-armada of six mobile processing plants, with each one capable of converting up to 400 MMcf/d of gas into liquid cargo for overseas deliveries.
Work is under way with international tanker firm Golar LNG to commission construction of the vessels in Singapore at the Keppel Shipyard, according to the applications.
With the project still in planning stages, Cedar LNG did not disclose cost estimates. Names of prospective partners in the terminals; Asian customers, BC gas suppliers and pipeline service providers were also undisclosed. Discussions are under way on all fronts with an array of industry participants, Cedar told the NEB.
The Hasila are partners in the stalled BC LNG project that ran into trouble when the original Texas based investors got into financial difficulty. AltaGas, parent company of Pacific Northern Gas, is also involved in Triton, a floating LNG project that would be at an old log sort on Douglas Channel, the same site as the BC LNG project.
1. Why was the study suddenly released after the province said it was “privileged?”
2. Did the apparently rushed release mean that the study, as far as the public is concerned, is incomplete?
3. While most people in Kitimat believed that the study would be a wide ranging look at all parameters of industrial development in the valley, it was limited to just two factors, sulphur dioxide and nitrogen dioxide.
4. It appears that everyone involved were consulted prior to the release with one key execption, the District of Kitimat. Why?
5. The study appears to have changed in its criterion from the time of the request for proposal and the final release one issue—an oil export terminal, which went from “crude” in the request for proposal to refined in the final report.
While the study is spun has a showing that industrial development in the Kitimat Valley can proceed as long as the environment is properly managed, the gaps and the spin will likely bring doubt to the results. That means that a wider ranging and truly independent study of the air shed is needed so that both residents and industry can then make the proper decisions.
In October 2013, the Ministry of the Environment issues a “request for proposal” to “study potential cumulative effects to environment and human health from existing and proposed industrial facilities in the Kitimat airshed.” to be filed by March 31, 2014.
The Province will fund a $650,000 scientific study to help inform regulatory and policy development for future industrial activity in the Kitimat area. The goal is to ensure the potential impacts from industrial air emissions are clearly understood prior to new projects being approved and in operation.
The Kitimat Airshed Impact Assessment Project will look at the cumulative effects of existing and proposed industrial air emissions in the airshed. These include emissions from: an existing aluminium smelter, three proposed LNG terminals, a proposed oil refinery, a crude-oil export facility, and gas-turbine-powered electrical generation facilities. The study will focus on sulphur dioxide and nitrogen dioxide emissions from these facilities.
The study will assess the impact of emissions through a number of scenarios, including their potential effects on water and soil, as well as on vegetation and human health from direct exposure.
With that news release, it appears that many people assumed that “cumulative effects of existing and proposed industrial air emissions in the air shed,” would include all possible scenarios and contaminants.
The report, when it was released on Friday, covered just the “focus” sulphur dioxide and nitrogen dioxide and no other factors in air quality.
Crude or refined oil export?
As Northwest Coast Energy News noted that the report, as released, doesn’t include any references to the Enbridge Northern Gateway project, even though Northern Gateway is a source of “proposed industrial air emissions in the air shed.” The request for proposal also mentions “a crude-oil export facility” but the report as issued concerns a marine terminal for Black’s refinery
The products will be exported via a marine terminal on the Douglas Channel. Projected volumes include 320,000 barrels per day of diesel fuel, 110,000 barrels per day of gasoline and 60,000 barrels per day of jet fuel.
The map in the main report clearly shows that the study concerned the “Kitimat Clean Refinery Port” not a crude oil export facility—in other words likely Enbridge Northern Gateway.
On October 21, 2013, District of Kitimat Council endorsed a motion by former Councillor Corinne Scott:
“The BC Government has recently announced a budget of $650,000 to study the cumulative effects on the air quality due to the proposed industrial development in the District of Kitimat. It would be beneficial to have a representative from the District of Kitimat as an active participant on the committee to provide input and feedback as the study progresses.”
At the time Chief Adminstrative Officer Ron Poole told council that the minister’s office had called and promised to “involve the District.”
At that meeting, Councillor Mary Murphy reported that member were “vocal” at the Union of BC Municpalities that it was essential that Kitimat be involved. Councillors suggested that the study be wide ranging and include emissions already in the area and residual emissions left over from the closed Eurocan and Methaex operations.
The provincial final air shed report makes no mention at all of the District of Kitimat, Eurocan or Methanex.
In April, 2014, after the March 31, reporting deadine, the District and Council had heard nothing from the province. So in April, District Council passed a motion asking for a report on the status of the study.
In June, the province refused to release the report to lawyers involved in a suit against the Environmental Assessment Board which is challenging Rio Tinto Alcans’ permit to increase sulphur dixoide emission in the valley. According to the Globe and Mail, Dennis Doyle, a lawyer with the Ministry of the Attorney General, in the RTA suit, wrote to the Environmental Law Centre in Victoria
In a follow-up letter dated June 12, Mr. Doyle said, “On the matter of the Kitimat Airshed Study I am instructed that this report was prepared to guide development of government policy on industrial development in the Kitimat area and to assist the executive council in its ongoing deliberations. It is not a report that was prepared for the Respondent and played no part of the decision-making process for the permit amendment which is now under appeal.”
The EAB told the province to respond to that question by July 18. Instead there was a hastily called news conference and the report was released. However, a close look at the report shows that it was likely rushed to meet the EAB deadine and was incomplete—rather surprising for a report that was supposed to be complete by March 31.
What evidence is there that the report was rushed out by the Ministry of the Environment? The most compelling indication is that instead of a public-friendly Summary Report with an executive summary and clear conclusions, there was nothing more than a short Power Point presentation.
Most people in Kitimat who follow the energy debate are familiar with the approach of combining a readable summary with technical data. It is most evident in the report of the Enbridge Northern Gateway Joint Review, which issued a relative short summary, Connections along with the long technical report, Considerations.
Let’s take as a prime example, the original report on the Kitimat airshed commissioned by Rio Tinto Alcan. In that case, ESSA Technologies Ltd of Vancouver, the company hired by the RTA Kitimat Modernization Project to study the effects of increased sulphur dioxide emissions in the Kitimat Valley, issued three documents, an easy to understand 37-page summary report, a much longer 456 page Technical Assessment Report and a third 332 page volume of appendices, technical data and tables.
It was the same company, ESSA Technologies, that was retained by the province to do the much larger study of the airshed. However, the only public-friendly information was the 16 page highly simplified Power Point presentation.
The ESSA summary report for RTA shows in plain language, the reasons for its conclusions that the increased sulphur dioxide from KMP on human health “is characterized as moderate, an acceptable impact, but in need of closer scrutiny with moderate monitoring.” That report also outlines the limitations and uncertainties of the study.
There was no similar plain language summary released for the overall provincial air shed study, even though it was produced by the same company and came to similar conclusions. To find any limitations or uncertainties in the provincial air shed study you have to do a computer search for those key words.
So it is apparent that intended audience for the report is not really those who live in Kitimat, where over the past five years there is wide knowledge that a summary release along with a technical report is considered a standard procedure.
Kitimat not consulted
At the Friday news conference, reporters asked Environment Minister Mary Polak several times about the delay in releasing the report, and then why it was suddenly released.
In answer to the initial question, Polak said, “We had always intended to release it.” She refused to comment on the claim of cabinet privilege, saying that was the responsibility of government lawyers at the Ministry of the Attorney General. She said that the government had received the March 31 report “by the end of April and “it went through quite a rigorous and thorough review by different agencies… we are satisfied now that the findings have been given the kind of rigorous overview and we’re pleased with what has resulted from that.”
Polak said the Haisla Nation were consulted before the commissioning of the report.
Asked again about who the BC government consulted during the review period, she replied, “There were a number of other groups involved in technical review, so not just Ministry of Environment, you’ll be aware of Northern Health authority, but Ministry of Natural Gas Development, Health Canada, Environment Canada and also specialist reviewers from the Province of Quebec, the University of Helsinki, UBC, also private consultants. Then we spent some time going over and having a technical review with Gitga’at and Coastal Coastal First Nations. So it was a matter of ensuring that we had done the very best review of the work before the occasion on which we released it.”
Which leaves one big question, why was the Province of Quebec and the University of Helsinki consulted and Kitimat, despite requests, was not?
Not in the report, not my department
The provincial government called for a report on the “cumulative effects of existing and proposed industrial air emissions” and noted it would focus “ focus on sulphur dioxide and nitrogen dioxide emissions from these facilities.” It is clear that the report did not go beyond the narrow focus on those two substances.
At the Vancouver news conference, a reporter asked Polak why green house gases were not included.
She replied, “That’s not what this study was intended to look at. This department deals with pollutants and pollution and protecting our environment from it, whereas GHG [green house gas] emissions are dealt with in our department around climate change and climate action. These particular substances have an immediate impact on human health and vegetative health and the receiving environment generally unlike GHGs which are a more global impacted and of course have an impact on climate change. This study only looked at those pollutants sulphur doixide and nitrogen dioxide
Then a second reporter asked here about particulate matter, to which Polak replied, “Coming from the Fraser Valley I am very aware of the impact of particulate matter. Any industrial development that we permit in British Columbia or receives an environmental assessment certificate, particulate matter and the release of particulate matter is one of the things that gets evaluated as we determine whether or not to grant those permits. Or to put stipulations on those permits in order to ensure a reduction or management of particulate matter. That’s where that’s dealt with and we have some pretty good understanding of how that operates. We also have some modelling from this study.
“The reason this study didn’t report on that because we hadn’t asked them to. We specifically wanted to get at the issue of sulphur disoxide and nitrogen dioxide but please do not take frm that because it’s not in the study, it doesn’t get looked at. It simply gets looked at in a different process. In this case it was the understanding of the Kitimat air shed with respect to sulphur dixoide and nitrogen dioxide that we needed to have a better answers and better information.”
In other words, despite what the original proposal said: “The goal is to ensure the potential impacts from industrial air emissions are clearly understood prior to new projects being approved and in operation,” the provincial government is content to wait until the permit phase to consider particulate matter, rather than include particulate matter in the long term planning for the air shed.
And for green house gases, the same attitude seems to apply, either it’s not her department or it will be dealt with sometime in the future.
What’s going on in the air shed?
Although the provincial government has been able to spin that the air shed report clears the way for more industrial development in the region, the report isn’t much help for long term planning for those both for and against industrial development in the valley.
First one has to wonder just how comprehensive was the study, even when it comes to sulphur dioxide and nitrogen dioxide?
The report for Rio Tinto Alcan for just one substance—sulphur dixoide—from one industry—aluminum smelting–led to a 456 page technical report with 332 pages of appendices.
The provincial technical report adds one more substance, nitrogen dioxide, and adds four LNG facilities, an oil refinery, different export terminals for those industries, and two hydro generating stations plus related shipping, including a passing mention of vehicular and train traffic. The new report is 363 pages, including the appendices. (It should be noted that the air shed report does reference some of the information in the RTA report)
The various studies for the Enbridge Northern Gateway, which often contained material on air emissions, included a much longer list of what in industry jargon are called CPOC “chemicals of potential concern,” including chemicals that might be released in trace amounts from the Northern Gateway terminal, but may be of more concern from LNG projects. Who knows unless those substances are studied?
As was required by the Joint Review Panel, Enbridge also studied potential problems from accidental release of air-borne contaminants from the Northern Gateway project. There is no mention of accidental release in the current air shed study.
Although the increase in truck traffic in Kitimat is clearly visible to people who live in the town, the air shed report also speculates that with LNG and a possible refinery, there will also be a significant increase in rail traffic coming into Kitimat, hauled, of course, by diesel locomotives, which the report says is “expected to be conservatively captured within the background concentration adjustment.”
Can the Valley “handle industrial expansion”
Stakeholders in the region from the District of Kitimat to the Gitga’at First Nation to various environmental groups asked for a comprehensive review of what is going to happen in the Kitimat air shed with industrial expansion.
So the answer to the question can the valley “handle industrial expansion” after the flawed and limited report from the provincial government is not “yes,” but “we don’t know yet.”
It appears that the report is part of Christy Clark’s ongoing campaign that LNG will save the provincial economy.
There are two factors the report ignores.
First the energy companies are going to make their final investment decision on cold hard facts, including their own assessment of the potential problems from the air shed, not spin from the provincial government.
Second, until there is a proper air shed study, the First Nations, including the Haisla in Kitimat, the Gitga’at at Hartley Bay, the Kitselas in Terrace will not have solid evidence to make a decision on the details of the LNG or refinery development on their traditional territory and increased ship traffic along the coast and that will come into immediate conflict with the Supreme Court ruling on the Tsilhqot’in decision and the finding that “Whether a particular use is irreconcilable with the ability of succeeding generations to benefit from the land will be a matter to be determined when the issue arises.”
There is a new Orwellian phrase used by both the federal and provincial government. Every report is “independent” and “science-based,” although all they all tend to support the policy of the commissioning agency.
What the Kitimat Valley, Douglas Channel and the Terrace region need is a truly independent and truly science based and truly comprehensive evaluation of the air shed. At the moment, that doesn’t exist. It should whether it comes from industry or if the local governments can find the budget to fund a proper study or some combination of the two.
The long awaited Kitimat air shed study, released by the province Friday, July 17, 2014, says “that with proper management, Kitimat’s ai rshed can safely accommodate new industrial growth” without major affects on either human health or the environment. Link to news release :Study shows Kitimat airshed can handle new industrial development
The Kitimat Airshed Assessment looked at the cumulative effects of industrial air emissions, primarily sulphur and nitrogen oxides, and their potential impacts on both human health and the environment from
Rio Tinto Alcan’s existing aluminium smelter and its planned modernization
David Blacks proposed “Kitimat Clean” oil refinery at Onion flats
Four proposed LNG facilities; Shell-led LNG Canada, Chevron lead Kitimat LNG, the floating Douglas Channel LNG at the old log dump and a second floating LNG project called Triton.
BC Hydro gas turbine powered electrical generation facilities in Kitimat and near Terrace
Predicted increased to marine shipping in Douglas Channel.
The study was divided into two zones.
Health results were first examined for Kitimat townsite, the Kitimat Industrial Service Centre and Kitamaat Village.
The wider study included Gitga’at Old Town, Hartley Bay (Kulkayu), Kitimat-Stikine, Kitselas, Kitsumkaylum, Kshish, and Terrace.
There was one big factor missing from the study, it does not include the Enbridge Northern Gateway project, although the consultants who did the study do cite a couple of the air quality studies that Enbridge filed with the Northern Gateway Joint Review Panel. That despite the fact the Joint Review Panel under Condition 82 required that Enbridge file with the NEB for approval, at least four months prior to commencing construction, “an Air Quality Emissions Management and Soil Monitoring Plan for the Kitimat Terminal.”
The JRP report acknowledged that emissions from the Enbridge terminal would be minimal but would contribute to the cumulative effect of pollutant emissions from other industries and required Enbridge to consult with the District of Kitimat, the environment ministries and other industries in planning for emissions.
The map from the airshed study also shows that the possible marine terminal for David Black’s proposed Kitimat Clean refinery project is at or close to where the proposed Enbridge Northern Gateway terminal would be.
Health and environment
The study looked at proposed emission levels and the effect of emissions elsewhere in the world and then compared those studies with the Kitimat Valley. It found that the risk of sulphur dioxide was “directly related to proximity to industrial area”–largely the Kitimat Service Centre area–and that there would be a minor increase in respiratory incidents of 0.5 per cent to 2 per cent, with a slight increase of nitrogen dioxide but those were within existing guidelines.
As for environmental impact, the study says nitrogen dioxide impacts will be low. There wil be “some increased risk of soil impacts” from sulphur dioxide. The study says there will be “no negative impacts to vegetation across all scenarios” but did find “potential for acidification” of seven small lakes. Lakelese Lake is not one of those affected.
The study also doesn’t include particulate matter and although it does consider climate change, did not take into consideration possible increase of green house gases in the Kitimat Valley.
The consultants, Esssa Technologies of Vancouver, based its findings on an earlier study by Rio Tinto Alcan on emissions from the Kitimat Modernization Project and worked on those findings by adding new industries and a greater area to the models they used.
The province and industry says they will continue to monitor air, water, soil and vegetation “to ensure these values are protected.”
The higher levels of sulphur dioxide emissions from the Rio Tinto Alcan Kitimat Mondernization Project will be allowed to continue under the current permit. Environment Minister Mary Polack told reporters that will only change if the current court challenge to the sulphur dioxide levels are successful.
What Northern Gateway Joint Review said about emissions in the air shed
Among the 209 conditions imposed on the Enbridge Northern Gateway project is No. 82, an Air Quality Emissions Management and Soil Monitoring Plan.
Northern Gateway must file with the NEB for approval, at least 4 months prior to commencing construction, an Air Quality Emissions Management and Soil Monitoring Plan for the Kitimat Terminal…
This plan must include:
a) a description of the baseline, pre-construction conditions, informed by relevant modelling results and recent, existing monitor data;
b) locations of both air and soil monitoring sites on a map or diagram, including the rationale for the locations selected and the timing for installation;
c) methods and schedule of ambient monitoring for contaminants of potential concern in air (e.g., NO2, SO2, and H2S) and in soils (e.g., pH; major plant nutrients K, P, N, and S; and trace metals), and emissions source tracking;
d) data recording, assessment, and reporting details;
e) a description of the public communication and complaint response process;
f) additional measures that will be implemented as a result of monitoring data or ongoing concern;
g) the criteria or thresholds that will require implementing additional measures;
h) a description of the plan updating process;
i) a summary of Northern Gateway’s consultation with Environmental Canada and the British Columbia Ministry of Environment regarding the Air Quality Emissions Management and Soil Monitoring Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them; and
j) a summary of discussions with the District of Kitimat and local or regional industrial emitters regarding collaborating on the plan’s design and implementation.
One of the things that the Joint Review Panel noted in requiring Enbridge Northern Gateway to have an updated plan and to collaborate with Kitimat and other industries is that levels of acceptable sulphur doixide in the atmosphere are changing and much of Northern Gateway’s modelling was based on standards that were becoming obsolete.
In the Joint Review Panel report, section 8.7, the JRP said:
Northern Gateway assessed changes in the atmospheric environment, including a modelled assessment of criteria air contaminant, hazardous air pollutant, and greenhouse gas emissions. Criteria air contaminants assessed by modelling included sulphur dioxides, nitrogen oxides, carbon monoxide, hydrogen sulphide, and particulate matter. Hazardous air pollutants were also modelled and included total volatile organic compounds (VOCs), benzene, toluene, ethylbenzene, and xylene (combined, BTEX), as well as hydrogen fluoride.
The provincial air shed report considered only two contaminants, sulphur dioxide and nitrogen dioxide.
Northern Gateway said there would be minimal atmospheric emissions from the construction and operation of the pipeline. The focus was on the Kitimat marine terminal.
The modelled assessment for the Kitimat Terminal included emissions associated with terminal operations, with the largest sources being vehicle traffic and
hydrocarbon storage tanks Northern Gateway used the conservative assumption of continuous ship berthing…emission rate) in order to capture the worst case scenario of concurrent adverse meteorology and maximum potential emissions. From the model results, Northern Gateway predicted that sulphur dioxide associated with operating the Kitimat Terminal would exceed the provincial air quality objectives (Level A) for all time periods. This after mitigation.
Environment Canada said that Northern Gateway took appropriate measures in designing and siting its proposed facilities to minimize adverse effects on air quality. It acknowledged Northern Gateway’s commitments to adopt best practices and to use economically-feasible best-available technologies in designing the Kitimat Terminal to minimize effects on air quality.
Northern Gateway ackknowledged that “due to the project interacting with nearby topographical features, where the largest sulphur dioxide emissions are from the
marine vessels, the highest concentrations were predicted to occur infrequently and immediately adjacent to the terminal fence line.
Northern Gateway, Transport Canada, the Heiltsuk First Nation and other stakeholders did acknowledge that eventually the vessels coming to Kitimat “would be subject to the reduced sulphur fuel requirements associated with the joint United States-Canada North American Emission Control Area.
Based on this, marine fuel sulphur requirements permitted in Canadian coastal waters (200-nautical-mile limit) would be 1.0 per cent in 2012, reducing further to 0.1 per cent by 2015. Northern Gateway predicted that sulphur dioxide emissions from marine vessels should be approximately 96 per cent lower than modelled once these new international fuel standards take effect. Northern Gateway also predicted exceedances of provincial air quality objectives in the area for carbon monoxide, particulate matter, hydrogen sulphide, and total reduced sulphur.
Northern Gateway said there “no exceedances of hazardous air pollutant guidelines were predicted as a result of the project itself” but there could be a cumulative effect with other industries in the Kitimat waterfront.
The Joint Review Panel ruled:
By the Kitimat Terminal’s proposed in-service date, there will have been significant changes to the number and magnitude of existing air emission sources since
the provincial emission inventory of 2000 was compiled, and since Northern Gateway completed its modelling assessment.
Regarding the sulphur emissions attributable to the terminal, marine vessel berthing would account for 97 per cent. Given that Northern Gateway used conservative assumptions regarding berthing in the modelling and that regulations coming into force regarding the sulphur content of marine fuels would further decrease predicted missions, the Panel finds that the modelling results presented in the application and subsequent filings are not predictive of the realistic potential effects on local air quality.
Based on the filed information about sulphur dioxide emissions, the Panel is satisfied that new modelling based on the updated information would indicate that sulphur dioxide associated with the Kitimat Terminal’s operations would not exceed provincial air quality objectives.
The Panel requires that further modelling, reflecting the current level of activity, equipment, and marine sources, must inform Northern Gateway’s design of the Air Quality Emissions Management and Soil Monitoring Plan for the Kitimat Terminal.
Updated modelling would be used to inform the monitoring program’s design, as well as to help ensure that the monitors are placed effectively to monitor both human and environmental health.
Cumulative effects on the atmospheric environment
Northern Gateway said that, during the Kitimat Terminal’s operations, tank maintenance and marine berthing would add a potential measureable contribution to regional cumulative environmental effects from air emissions. Northern Gateway incorporated the existing industrial sources in the Kitimat area in its modelling assessment, using the British Columbia Ministry of Environment’s emissions inventory. At the time the modelling was run, the available emission estimates from 2000 were used to characterize the existing sources in the airshed.
The Joint Review panel noted that over the time of the hearings”it heard of many changes to the industrial make-up of the Kitimat area since the 2000 emissions inventory was developed.”
Combining these with the predicted project emissions, the model results indicated predicted exceedances of regulatory thresholds for sulphur dioxide, carbon monoxide, particulate matter, hydrogen sulphide, and total reduced sulfur, though not at every averaging period.
Northern Gateway said that, due to the existing large emission sources and the region’s complex meteorology and topography, the exceedances are primarily attributable to the other industrial activities around Kitimat and not from the project itself.
Because there would be adverse project effects remaining after mitigation that could combine with the effects of other past, present, and future projects, and because cumulative effects are of primary concern, the Panel’s significance recommendation is given below in its analysis of cumulative effects.
The Panel finds that the emissions associated with the Kitimat Terminal’s operation would be minimal compared to the existing sources presented.
Although the modelled cumulative emissions exceeded many regulatory thresholds, the exceedances were predicted based on an out-of-date emissions inventory, and were predicted to occur prior to adding emissions from the project. Based on the information about sulphur dioxide emissions on the record, in addition to the modelling included in the application, the Panel is satisfied that new modelling based on updated information would indicate that sulphur dioxide associated with the Kitimat Terminal’s operations would not contribute to an increased exceedance of provincial air quality objectives, either through limited emissions or berthing management to limit emissions in particularly adverse conditions.