LNG Canada aims to be “first out of the gate” in the rush to develop in Kitimat

LNG Canada meeting
Residents of Kitimat discuss the proposed LNG Canada facility with company officials at the Rod and Gun, Nov. 27, 2013 (Robin Rowland/Northwest Coast Energy News)

LNG Canada says it wants to be “first out of the gate” in the competitive race to send BC’s liquified natural gas to Asian markets.

The company held a well attended open house at the Kitimat Rod and Gun on November 27, with the usual array of posters and experts, to mark the beginning of the environmental assessment process for what is formally called the “LNG Canada Export Terminal Project.:

The LNG Canada Export Project is a partnership of Shell,Canada Energy, Diamond LNG Canada, an (“affiliate” of Mitsubishi), Korea Gas Corporation and Phoenix Energy (an “affiliate” of PetroChina) filed a draft application for an Environmental Assessment Certificate with the BC Environmental Assessment Office and Canadian Environmental Assessment Agency on November 8. The 30-day public comment period on the draft Application Information Requirements started on November 13, 2013 and end on December 13, 2013.

The extensive documentation can be downloaded in PDF format from the BCEAO site. The documents can also be viewed at the Kitimat and Terrace Public Libraries and the LNG Canada office in Kitimat at the old Methanex site.

“What we want to be able to do is actually to provide information in a way that we can provide a lot of conversation with the community, so we can really have a dialogue, to give them a place where they know than go to get answers. We do believe that we can be the best project in British Columbia, the only way we can do that is if we have the support of the community,” LNG Canada’s Susannah Pierce told reporters.

“We would like to be first out of the gate. This is a competitive industry and we’re not just competing in terms of providing Canadian gas to the Asian markets, we’re competing with everyone else for the opportunity to deliver product to market.”

The application says that the all-important Financial Investment Decision will likely be “made mid-decade followed by 4-5 years of construction with commissioning of the first phase to follow.”

The first phase would have a first phase of about 12 million tonnes a year of LNG, with another MTPA (million tonnes per anum) in “one or two subsequent phases.”

Federal, provincial and municipal governments or agencies, First Nations and the general public have the ability to comment on the proposal.

An aerial photo map included in the application shows the footprint of the proposed LNG Canada operation. Although the LNG Canada project is based at the old Methanex plant, the map shows that the LNG plant will take up a much larger area than the original. The old Methanex access road would be widened parallel to the Rio Tinto Alcan smelter and a Cyrogenic Pipeline would cross the Kitimat River estuary to the marine terminal.

LNG Canada footprint map
A map provided by LNG Canada shows the potential footprint of the liquifaction facility and marine terminal next to the Rio Tinto Alcan aluminum smelter. (LNG Canada)

The scope of the project includes one possibly controversial item: “Onsite power generation,” where natural gas would be used to power the cooling equipment to turn the gas into LNG.

The assessment will also look the natural gas receiving and production facility; “a marine terminal able to accomodate two LNG carriers each with capacity up to 265,000 cubic metres (approximately 122,000 DWT) and a materials offloading area; supporting infrastructure and the construction facilities.

The environmental assessment will examine air quality, green house gas management, the acoustic environment (the noise created by the project), soil, vegetation, wildlife, freshwater, esturine fish and habitat, marine resources including fish and fish habitat and marine mammals, water and ground water quality.

The economic and social assessment includes infrastructure, land use, “visual quality,” odour, marine transportation and use, community health and well being, archaeological heritage and human health.

LNG Canada meeting
District of Kitimat Council member Mario Feldhoff discusses the LNG Canada project with a company official at the Open House at the Rod and Gun, Nov. 27, 2013. (Robin Rowland/Northwest Coast Energy News)

The assessment process will also “assess potential cumulative economic, health, social and heritage effects from the Project…interacting cumulatively with similar effects of past, present and future projects activities. The current table of projects to be considered for cumulative effects include the Rio Tinto Alcan Aluminum Smelter and Modernization Project, the Kitimat LNG and Douglas LNG terminals, the possible Enbridge Northern Gateway porject, the new use for the old Methanex and Cenovus operations, the operations at the Sand Hill, the former Moon Bay and current MK Bay Marinas.

Projects further away include LNG and other projects and associated pipelines at Prince Rupert, including expansion of the current ports and the redevelopment of Watson Island. Cruise ship and BC ferry operations will be only considered where they impact the shipping routes. Any forestry operations will also only be considered where they impact the project.

Updated to fix typos, including spelling of Feldhoff

LNG Canada maps air shed study area

Kitimat Airshed Map
Map released by LNG Canada shows the air shed area that the company will study as part of the environmental assessment. (LNG Canada)

Two of the maps filed by the LNG Canada project with provincial and federal environmental assessment agencies look at the air quality problems from the project, including the controversial prospect of cumulative problems from multiple industrial projects in the Kitimat Valley, one of them the RTA Kitimat Modernization Project which will increase sulphur dioxide emissions while decreasing some other emissions.

One map covers what is being called the airshed, in the case of LNG Canada, air quality will be assessed with the LNG facility at its centre. A second map covers the tanker route, and as well as a 40 km square grid around the plant that will also assess Hartley Bay, Kitkatla and Metalkatia which may be impacted by vessel emissions.

As well as scientific data, the assessment will also take into consideration traditional knowledge and traditional use from “aboriginal and other groups.”

The possible cumulative effect on the air quality in the Kitimat valley and surrounding areas has prompted the BC government to commission its own study of the Kitimat airshed.
On Oct 3, the provincial ministries of the environment and gas development announced 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.”
It says

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.

BC defines an airshed as

An airshed is generally described as an area where the movement of air (and, therefore, air pollutants) can be hindered by local geographical features such as mountains, and by weather conditions. The most obvious example in British Columbia is a mountain valley. Since air pollution knows no political boundaries, airshed activities may be focused on a single community or on a number of neighbouring communities faced with similar air quality problems and requiring similar action.

The LNG Canada assessment will look at two potential adverse effects, first a change in ambient air quality in the Kitimat airshed or along the marine access route and second any change in acidic deposition pattern in the Kitimat Valley.

The first study will look specifically at estimated levels of “criteria air contaminets” including sulphur dioxide, Nitrogen oxides, carbon monoxide, atmospheric particulate matter and hydrogen sulphide. The particulate matter study will use the international standard of 2.5 micrometres. 

The assessment will also study possible cumulative effects on air quality of multiple projects and those projects over time.

LNG Canada air quality map
LNG Canada map shows the marine and land areas that will be studying for air quality. (LNG Canada)

 

 

Commentary: The earthshaking difference between Enbridge and LNG

Joint Review Panel
The Northern Gateway Joint Review panel, Kenneth Bateman, Sheila Leggett and Hans Matthews, listen to final arguments in Terrace, June 17, 2013. (Robin Rowland/Northwest Coast Energy News)

Buried deep in the LNG Canada environmental assessment application, a reader will find a key difference in attitude with at least one of the group of companies planning liquified natural gas development in the northwest and Enbridge Northern Gateway.

It’s an earthshaking difference, since it’s all about earthquakes.

The documents filed by LNG Canada with the BC Environmental Assessment Office and the Canadian Environmental Assessment Agency acknowledge that there is a possibility of an earthquake (a one in 2,475 year event) at the LNG terminal site.

Northwestern British Columbia was shaken by two major earthquakes in the months before the Joint Review Panel concluded its hearings in Terrace. Both were far from Kitimat, but felt across the District. On October 27, 2012, there was a magnitude 7.8 earthquake on the Queen Charlotte Fault off Haida Gwaii. That quake triggered a tsunami warning, although the actual tsunami was generally limited to the coast of Haida Gwaii. Both landline and mobile phone service in Kitimat was briefly disrupted by both the quake and overloads on the system. Kitimat was also shaken by the 7.5 magnitude earthquake centered at Craig, Alaska a few weeks later on January 9, 2013.

With the exception of one vague reference in its final argument documents presented to the Joint Review Panel, Enbridge has stubbornly refused to consider any seismic risk to the region.

That was the company’s policy long before the October. 27, 2012 Haida Gwaii earthquake and was Enbridge policy after October 27, 2012.

In a public meeting in Kitimat on September 20, 2011, more than a year before the Haida Gwaii earthquake, John Carruthers, Northern Gateway president, insisted to skeptical questioners at a community forum at Mount Elizabeth Theatre that there was no earthquake danger to the proposed Northern Gateway pipeline and bitumen terminal in Kitimat.  One of the questioners, Danny Nunes, of Kitimat, asked could the pipes withstand an earthquake? Carruthers repeated that Kitimat was not in an earthquake zone, that the fault was off Haida Gwaii and so would not affect Kitimat.

After the September, 2011 meeting, I asked Carruthers if Enbridge knew about the March 27,1964 “Good Friday” magnitude 9.2 Alaska earthquake that, because of its high magnitude, had caused major shaking in Kitimat. That earthquake destroyed much of Anchorage and triggered tsunamis that caused damage and death across Alaska and in parts of British Columbia, Oregon and California.

Carruthers promised to get back to me and never did.

On June 17, 2013, six months after the Craig, Alaska earthquake, in his opening summation before the Joint Review Panel, Richard Neufeld, lead lawyer for Northern Gateway, stayed on message track, telling the JRP, referring to pipelines: “The route is not seismically unstable. The seismic risk along the pipeline right-of-way is low, with only a few locations of moderate risk encountered, none of which are within the Haisla territory.”

That brought a gasp from spectators in the room, or at least those who had felt the October and January earthquakes.

The following day, June 18, Murray Minchin of Douglas Channel Watch found an anomaly in the Enbridge documentation, arguing in the group’s summation:

“The Proponent’s written final argument gets on shaky ground regarding design and construction of the storage tanks on a ridge beside Douglas Channel in paragraph 249 where they say:

“‘It also involves the safe construction and operation of the Kitimat terminal in Kitimat Arm in an area subject to seismic activity which encompasses both terrestrial and marine components.’

“Now, that’s interesting because isn’t that the first time — the first admission by the Proponent in a little over 10,000 pages of documents that the area they intend to build their project is in a seismically-active area?

“Haven’t they been telling us all along to this point that the only seismic concerns would be from the distant Queen Charlotte fault off of Haida Gwaii?

“Now, this completely contradicts Mr. Neufeld’s statement yesterday where he described the Project area as not “seismically unstable”. So what is it? This is their final argument and they’re contradicting themselves.”

Minchin went on to quote from the Enbridge argument: “’Seismic conditions in the project area have also been addressed.’

“Well, really? Is that a truthful statement, considering Natural Resources Canada has only submitted a preliminary report concerning a 50-kilometre fault line and massive submarine landslides they accidentally discovered last year in Douglas Channel while doing a modern survey of the Channel for navigation hazards.

“How can the Proponent claim to have adequately addressed seismic forces in their design of this Project when they don’t know what those forces are or for what duration they may be subjected to those forces.

“Has there ever been a paleoseismological study in the Project area to establish past earthquake or tsunami history?

“Wouldn’t it be in the best interest of the Proponent, the Panel and Canadians to know the risks before 1.3 billion litres of liquid petroleum products are allowed to be stored on a low ridge right beside Douglas Channel?”

In his final rebuttal on June 24, Neufeld did not address the contradictions that Minchin had pointed out.

Compare Enbridge’s attitude to the view of LNG Canada, which at very least, appears willing to consider that major events could have adverse consequences on the terminal and liquifaction facilities.

    • The first one is a bit puzzling to Kitimat residents “A 1 in 100 year 24 hour rain event,” after all the town often gets rain for 24 hours straight or more fairly often.
    • The second, 1 in 200 year flood of the Kitimat River. Flooding has always been a concern and will be even more so, because as the pipelines come into town, whether natural gas or bitumen, those pipelines will be close to the river bank.
    • The 1 in 2,475 year seismic event. That figure is probably correct for a local event given the geology of the Kitimat Valley—unless, of course, the fault line discovered by the Geological Survey of Canada on Hawksbury Island proves to be a potential danger.
    • A tsunami.
    • Change in flow of the Kitimat River.
    • Even more interesting is that LNG Canada is willing to consider possible effects of climate change on the project, saying: “Predicted climate change effects during the project lifecycle on sea-level rise, precipitation and temperature. Where relevant and possible, the implications of such climate induced changes to the extreme weather events given above will also be addressed.”

.

Although the hydrocarbon industry as a whole is reluctant to acknowledge climate change, it appears that on a practical level, the LNG Canada partners, if they are about to invest billions of dollars in a natural gas liquifaction plant and marine terminal, will certainly take steps to protect that specific investment from the effects of climate change.

On the other hand, the National Energy Board, as matter of policy and the Northern Gateway Joint Review Panel, both still stubbornly refuse to even consider any effects of climate change, even possible effects locally on a specific project application.

The Joint Review Panel decision on the Northern Gateway is expected sometime in the next three weeks. While most reports seem to indicate that the decision will be released after Christmas before the Dec. 30 deadline, there has been recent media speculation that the decision could be released next week.

In the meantime, Enbridge has pulled out all stops in a public relations campaign to build support for the Northern Gateway. While a recent poll indicates that advertising campaign may be having some success in the Lower Mainland, the same poll showed that 65 per cent of northern BC residents oppose or strongly oppose the Northern Gateway.

The problem for Enbridge is that the new public relations campaign is repeating the blunders that began when they first proposed Northern Gateway in 2005. There have been meetings across the northwest, but those meetings have been invitation only affairs at chambers of commerce and community advisory boards, with possible opponents or skeptics and media perceived as critical of Enbridge not invited. So Enbridge still wants to control the message and will only talk to friendly gatherings.

Then there are the television spots featuring Janet Holder, the Enbridge vice president in charge of Northern Gateway, supposedly showing her commitment to wilderness. Those commercials would have had more credibility if the agency had produced the ads with actual video of Holder walking through the bush, rather than shooting the spots in front of a green screen in a studio, with pristine wilderness stock video in the background, and Holder acting as if she was a model for an adventure clothing company rather than  vice president of a pipeline company.

Right-wing business columnists in Toronto and the countless Albertans fume at the so-called “hypocrisy” of British Columbians who support LNG and oppose bitumen.

Of course, those critics didn’t feel the earth move under their feet.  The critics don’t see the difference between natural gas and bitumen, differences very clear to the people of British Columbia.

It’s more than the fact, that so far, the LNG projects have been relatively open and willing to talk to potential adversaries,  as Chevron has done on the controversial Clio Bay project; more than the fact that if even a fraction of the LNG projects go ahead, the money coming into northwestern BC means that the handful of permanent jobs promised by Enbridge will be literally a drop in a bucket of warm bitumen.

Although there are many other environmental issues on the Northern Gateway project, the fact the potential for earthquakes in Kitimat is brushed off by Enbridge while LNG Canada is at least willing to consider the problem, sums it all up.

 

Updated with link to Sept. 2011  questions and answers

 

 

 

 

 

 

 

BC calls for input on conservation plan for Ashdown Island, one of the “disappeared” on Douglas Channel

Ashdown Island
Sea lions basking on Ashdown Island (BC Parks)

BC Parks and the Gitga’at First Nation are calling for public input as they development a management plan for the K’nabiyaaxl/Ashdown Island Conservancy at the mouth of Douglas Channel.

BC Parks describes the area as:

K’nabiyaaxl/Ashdown Conservancy covers 727 hectares of marine and uplands ecosystem on the northwest coast of British Columbia, south of Gil Island. The conservancy is 40 kilometres south of Hartley Bay and 120 kilometres southwest of Kitimat. The conservancy is in the traditional territory of the Gitga’at First Nation.

The public has until December 9 to read the management plan and file comments with BC Parks and the Gitga’at Nation.

Although not well known outside the Kitimat region, Ashdown Island did receive some measure of fame because it was one of the islands that disappeared from Enbridge’s promotional animation of the tanker route for diluted bitumen from Kitimat to Asia if the controversial Northern Gateway project goes ahead. As well as a haven for wildlife, Ashdown is known as a prime halibut fishing area.

Ashdown Island
Ashdown Island study area (BC Parks)

Ashdown Island is on the proposed “Southern Approach” for Enbridge’s tanker traffic routes.

Tanker routes (Wikipedia from Living Oceans)
Tanker routes (Wikipedia from Living Oceans)

 

Recent studies by both Fisheries and Oceans and scientists have identified the area as “critical habitat” for the rebounding humpback whale population visiting the BC Coast. The Northern Gateway Joint Review panel recently refused to consider those studies because they were released after the deadline for filing evidence.

The BC management plan notes:

The area and nearby waters have been and continue to be intensively used by the Gitga’at people for cultural, social and economic purposes. In Tsimshian language (Sm’algyax), K’nabiyaaxl means “place where cliff” – which is located on the west side of Ashdown Island.

The conservancy encompasses all of Ashdown Island and the foreshore area
and land covered by water within 200 metres of the high tide line. It
has high intertidal values, especially for seaweed, and contains an important
Steller Sea Lion haulout. The waters around the island support important Gitga’at
community fisheries.

 

Although in Gitga’at traditional territory, the plan notes that the Haisla, the Kitasoo community of Klemtu; and Gitxaala community of Kitkatla on Dolphin Island should be consulted.

It goes on to say:

The conservancy protects an entire small island representative of the Hecate Lowlands Ecosection. The island’s foreshore marine environments include high value intertidal areas which provide high value habitat for important marine wildlife species and migratory birds. The conservancy also protects a haulout for Stellar Sea Lions (Eumetopias jubatus), a species of concern (provincially blue- listed3)…

Stellar Sea Lions use small islets off the south end of Ashdown Island as a winter
haulout, with up to 12 pups and 107 adults observed

The plans lists the Humpback Whale (Blue-listed, S1N); the. Killer Whale (Red- or Blue-listed, S2 or S3 depending on sub-species); and the Fin Whale; as Ashdown Island species at risk. (SARA species schedule procedure site)

As well:

The conservancy contains seven hectares of potential Marbled Murrelet habitat
which, although small, may provide important habitat when combined with core
Marbled Murrelet habitat in nearby areas.

K’nabiyaaxl’s remote location provides an excellent opportunity for maintaining
biological diversity and natural environment values. This habitat should not be
disturbed by conservancy use and development.

The island and the near shore are also part of the Gitga’at’s rich cultural heritage.

The conservancy is near the seasonal Gitga’at village camp of K’yel. The Gitga’at
travel in the spring from Hartley Bay to K’yel, which they use as a base for conducting intensive marine and intertidal harvesting and hunting activity.

Since time immemorial, the Gitga’at people have harvested fish and marine
mammal species in waters adjacent to K’nabiyaaxl. They also collect seaweed,
plants and berries from intertidal and upland areas on the island.

Archaeological sites are known to exist in the area. That the BC Archaeological
Branch does not have archaeological sites registered in the conservancy is not
indicative of the rich history of Gitga’at occupancy and use of K’nabiyaaxl.

Second floating LNG terminal eyed for Kitimat at Douglas Channel log sort

PNG Pipeline Looping Project map (PNG)
PNG Pipeline Looping Project map (PNG)

A second floating liquified natural gas terminal may be planned for Kitimat, Northwest Coast Energy News has learned.

According to multiple sources in Kitimat, Altagas, the parent company of Pacific Northern Gas plans the terminal at the old log sort site on Douglas Channel, where the barge carrying the liquifaction equipment would likely be moored next door to the already planned BC LNG/Douglas Channel Partners LNG project which would be served by gas delivered by the PNG pipeline system.

Pacific Northern Gas has filed an application with the BC Environmental Assessment Office to construct and operate an approximately 525 kilometre, 610 millimetre (24 inch) diameter natural gas pipeline from the natural gas hub at Summit Lake, near Prince George, to Kitimat that would loop or twin the existing PNG existing natural gas pipeline.

The application to the BCEAO says: “The proposed Project would supply natural gas to proposed liquefied natural gas (LNG) export facilities as well as the Proponent’s existing customers. The proposed Project would include the replacement of four existing compressor stations and would have an initial capacity of 600 million standard cubic feet per day.”

PNG Open House
PNG Pipeline Looping Project Open House at Tamitik. Nov. 26, 2013. (Robin Rowland/Northwest Coast Energy News)

On Tuesday, November 26, Pacific Northern Gas held a sparsely attended open house at Tamitik Arena as part of the BCEAO public comment procedure.

A 38 day public comment period on the application information requirements started on November 25 and will end on January 2, 2014.

At the open house,  PNG officials explained that “looping” means that there would be a second or twin pipeline that would mostly be on a parallel route to the existing pipeline. Since both pipelines would begin at the Summit Lake terminal and end at the Kitimat terminal that is where the term “looping” comes in.

The PNG officials said that the pipeline was initially designed to service the first floating LNG terminal at the old log sort site on Douglas Channel south of Kitimat, but north of the KM LNG site at Bish Cove.

It would be operated by  BC LNG Energy Cooperative, through Douglas Channel Energy Partnership, a partnership with the Haisla Nation and LNG Partners, the energy investors mainly from Texas,

Unlike the bigger project Kitimat LNG or KM LNG, a partnership between Chevron and Apache (and according to reports possibly Sinopec) or the Shell-led partnership LNG Canada, the BC LNG project would allow smaller companies to provide LNG to Asian customers.

At the open house, the PNG officials said the two pipelines could also service “another Kitimat floating LNG project” but declined to give details for confidentiality reasons. The same officials also said the proponent of that project was also looking at Prince Rupert as a possible site for the second floating terminal.

Kitimat sources have confirmed that AltaGas has told them that the company is also considering Prince Rupert as a site for a floating LNG terminal.

However, the current documentation and maps filed with the BCEAO show the PNG looping pipeline terminating at Kitimat, not Prince Rupert.

PNG pipeline map
Detail of the PNG Pipeline Looping proposal. The existing pipeline is shown at the dashed line, the new pipeline is shown in purple. (PNG)

According to the maps filed with the BCEAO and made available at the open house, the new pipeline would not be twinned completely along the existing route across the mountains west of Smithers to Terrace, but would head north at Telkwa parallel to Highway 16 before making its own way through the mountains, crossing the existing pipeline at the Zymoetz River east of Terrace and then taking a westerly route toward Lakelese Lake before joining the existing pipeline corridor along Highway 37.
AltaGas took over Pacific Northern Gas in the fall of 2011.

The Texas-based arm of Douglas Channel Energy partnership, LNG Partners,  is currently in financial difficulty. Reports say that the Texas investors in the company are having difficulty repaying a $22.5 million loan from China’s ENN Group.

The problems currently faced by the Texas group have no affect, at this point, on the Haisla Nation investment in the BC LNG Energy Cooperative. There is already speculation in Kitimat that if the LNG Partners get into further financial difficulty, AltaGas may step in and take over. The would raise the question whether or not there would still be two floating LNG terminals on Douglas Channel, or just the one, as originally planned, but under new ownership.

In it’s project proposal PNG says

The Project will generate approximately 1800-2400 direct person years of employment during construction. Additionally, tax benefits will be generated for Kitimat and the regional districts crossed by the pipeline. PNG anticipates the project will also result in a significant reduction in natural gas transportation rates for its existing customers.

Natural gas transportation costs are a major issue in the northwest, for those costs appear to keep going up while the price of natural gas in North America is generally going down. Natural gas transportation costs in Kitimat spiked after the closure of the Methanex plant and have continued to be quite high, which is just one of the increasing burdens for residents of Kitimat on fixed or low incomes, who are not benefiting as others from the current boom town economy.

Another problem facing PNG is that the new pipeline will cross the traditional territory of the Wet’suwet’en First Nation, where one house, the Unist’ot’en oppose both the Northern Gateway and Pacific Trails Pipeline and have set up a blockade camp on access roads.

The PNG filing with the BCEAO promises consultation with both the Wet’suwet’en Council, and the Office of the Wet’suwet’en, which represents the hereditary chiefs and matriarchs, as well as other First Nations along the proposed route.

 

PNG Open houses for the project are scheduled for:

Vanderhoof
Friendship Centre Hall
Thursday, November 28, 2013

Terrace
Best Western Inn
Monday, December 2, 2013

Smithers
Hudson Bay Lodge
Tuesday, December 3, 2013

Burns Lake
Chamber of Commerce
Wednesday, December 4, 2013

Summit Lake
Community Hall
Thursday, December 5, 2013

 

Sinopec in talks to buy into Kitimat LNG Wall Street Journal says

sinopeclogoThe Wall Street Journal is quoting sources that Sinopec, China’s largest  petroleum refining company, “is in early talks with U.S.-based oil-and-gas producer Apache to buy a minority stake in a liquefied natural gas project on Canada’s Pacific coast.”  And since Apache is a partner with Chevron in KM LNG, that means the project commonly known as Kitimat LNG.

Wall Street Journal story (subscription required)

Costs rising

Sinopec is looking at several of the at least 13 LNG projects in the northwest BC region. The reports say that Sinopec management has not yet signed off any investment and say that any Sinopec investment would go toward the rising costs of the KM LNG project’s costs, which Apache now estimate will be about $15 billion US.

“Apache is moving forward with the project, and we’re looking for partners,” says an Apache spokesman, according to the reports. It appears that Apache is once again recalculating the cost of the Kitimat project.

Sinopec, the China Petroleum and Chemical Corporation is the world’s fifth largest company by revenue.   It has a $4.65 billion stake in the bitumen sands giant Syncrude and owns the Canadian energy company Sinopec Daylight Energy Ltd through Sinopec Canada.

It was a Sinopec pipeline that exploded in Qindao in Eastern China, killing 55 people on Friday, as well as spilling oil into the nearby sea.

 

“Conservatives’ hatred for science intentional part of their environmental policy,” Cullen says

Skeena Bulkley Valley MP and NDP House Leader, reacting to  Northwest Coast Energy News exclusive story that the  Northern Gateway Joint Review Panel has refused to consider a Fisheries and Oceans report on humpback whales says in a  Facebook posting “Like many of you, I’ve come to see the Conservatives’ hatred for science as more than a passing tendency – it’s an intentional part of their environmental policy.”

Cullen has issued an open letter to Natural Resources Minister Joe Oliver and Fisheries Minister Gail Shea that says:

 

21 November 2013

Dear Ministers,

This is an open letter regarding the 21 October 2013 report, entitled Recovery Strategy for the North Pacific Humpback Whale (Megaptera novaeangliae) in Canada, from the Department of Fisheries and Oceans on a recovery strategy for humpback whales in Canada. As you are likely aware, it is part of the DFO’s mandate to help this species recover from a century of whaling that nearly drove the species into extinction. The report identified four areas of “critical habitat” for humpbacks, one of which is at the mouth of the Douglas Channel, the gateway from Kitimat to the Pacific Ocean. The report also identified vessel traffic and toxic spills as two of the greatest threats to the recovery of this species.

Thus, it was with shock and dismay I recently learned of the decision by the federal joint review panel for the Northern Gateway project to ignore the report as evidence in its ruling, as though vessel traffic and the potential for toxic spills were not two of the primary environmental concerns surrounding this proposal.

It is particularly stunning given that the report, submitted to the panel last week, was authored by a federal government agency, and yet the federal government is now saying it refuses to take into account its own information when ruling on this project. It begs the question of why we even have a federal government agency devoted to ensuring the health and viability of our fisheries and our waters when the research and recommendations they produce are ignored by the very same federal government.

The purpose of the joint review panel hearings is to weigh the available scientific evidence in determining whether this project will negatively impact habitat and endangered species.  The purpose of the work of the DFO is to ensure that information is considered when the government is weighing projects which will impact habitat and endangered species. The decision by the JRP to ignore the DFO report is not only wasteful indifference; it’s a double-play failure and abrogation of the duty of both of your departments to protect endangered species and our natural environment.

I wish I could feign some measure of surprise on this matter. But like many Canadians, I have come to see this kind of negligence as not only a passing tendency of the Conservative government but as a very intentional aspect of the government’s resource and environmental policy.

When the government of Canada ignores its own science on endangered species protection, it’s no wonder why Canada has lost all credibility on environmental stewardship among both its own citizens and the international community.

Nathan Cullen

MP Skeena—Bulkley Valley

 

 

 
Copy of Nathan Cullen’s open letter on his website
 

 

New poll shows some people in Vancouver more in favour of Northern Gateway

A poll released this morning by Insights West, and already being heavily promoted by Enbridge Northern Gateway claims to show: “Opposition to the proposed Enbridge Northern Gateway Pipelines has subsided over the past 10 months in British Columbia, with the province’s residents now being staunchly divided on the project…”

It goes on to report:

In the online survey of a representative sample of British Columbians, support for the proposed Northern Gateway Pipelines stands at 42%, a seven-point increase since an Insights West poll conducted in February. Conversely, opposition to the project has dropped by 14 points, from 61% at the start of 2013 to 47% today.

It is important to note that the level of “strong opposition” to the project has fallen to 29% (down 9 points since February), while “strong support” increased to 16% (+5).

What the press release doesn’t tell you is that opposition to the Northern Gateway, according to the poll, is at 65 per cent in Northern British Columbia, with 50 per cent strongly opposed and 15 per cent somewhat opposed.

The Insight Poll assumes the findings of the online poll are within the usual margin of error

We have assumed that the same margins of error apply as if it were a true unweighted random probability sample with a margin of error of +/- 3.7 percentage points, nineteen times out of twenty.

The problem with the Insight West poll, like all other polls on the Northern Gateway, is that it is weighted toward the population heavy Lower Mainland. The tables released by Insight West show that the online poll had 504 respondents in Vancouver and 25 in Northern BC.

Northwest Coast Energy has spoken to pollsters both on the record and on background and it is clear that the polling entire province distorts the issue along the pipeline route.

The problems with these polls are two fold:

First is the standard polling definition of Northern British Columbia, which is based on Census data. “Northern BC” actually begins at Williams Lake, although most people believe Northern BC begins around Prince George.

Second the polls, due to small population and sample size, do not usually divide northwestern British Columbia, where the opposition is strongest to the Northern Gateway project, and northeastern British Columbia, where the energy industry is a major employer and support for the project is likely stronger.

The tables released by Insight West shows that poll surveyed just 25 people in “Northern British Columbia” but 504 in “Metro Vancouver.”

In a 2012 Ipsos Reid poll conducted on behalf of Enbridge, public affairs spokesperson Kyle Braid said their survey covered 168 people in “Northern British Columbia.” As Northwest Coast Energy News reported at the time:

Braid says the 168 people represents 17% of the sample. These interviews would have been weighted down to about 7% in the overall results to reflect the actual population of the North in BC. The margin of error in the North is about +/-7.6%, 19 times out of 20.

 

So with a total sample of 749 in the Insight West online poll and just 25 people in Northern BC surveyed, that means the Insight West poll survey of Northern BC covers just 3.3 per cent of the total sample. In contrast, 504 people in Vancouver were surveyed, accounting for 67.2 per cent of the sample.

The Insight West survey does acknowledge that:

British Columbians continue to be of two minds on the Northern Gateway,” continues Canseco. “There is a large proportion of the population that remains concerned with the possibility of oil spills and environmental problems, but the argument about economic benefits has gained traction over the past few months.

The actual tables show that of the 25 people surveyed in Northern BC, 50 per cent “strongly oppose,” (13 out of the 25 people surveyed) 15 per cent “somewhat oppose” Northern Gateway. Twelve per cent “somewhat support” the project, four per cent (one person) “strongly support” the project.

Those numbers, although small, are likely an accurate reflection of the sentiments in northern BC, although a breakdown between the western and eastern parts of Northern BC would have been helpful.

As for the residents of Vancouver, the poll shows that area is divided  (as the Insight West news release says) with 22 per cent strongly supporting (119 people) and 27 per cent somewhat supporting the project and 19 per cent somewhat opposed and 27 per cent strongly opposed (123 people).

You can see the poll tables here.

The “growing support” for the pipeline project that Enbridge is promoting from the poll likely shows that their advertising campaign is having some impact on the Lower Mainland but is ineffective in the north.

It is possible to do more accurate polling on energy issues in Northern British Columbia. Earlier this year, a significant number of Kitimat residents reported that they had received calls from a polling company representing TransCanada which will be building the Coastal GasLink pipeline project for LNG Canada, a project where Shell will operate the terminal in Kitimat.

On Monday, when TransCanada officials appeared before District of Kitimat council, they did acknowledge that they have been polling people along the pipeline route so they can understand their concerns.  So far, TransCanada has not released the results of that poll.

 

 

JRP refuses to consider latest DFO findings on Humpback Whales

The Northern Gateway Joint Review Panel has refused to consider the latest findings from the Department of Fisheries and Ocean on humpback whale critical habitat on the coast of British Columbia, including areas of ocean that could be on the route of tankers carrying diluted bitumen from Kitimat.

On October 21, 2013, Fisheries and Oceans released a report called Recovery Strategy for the North Pacific Humpback Whale (Megaptera novaeangliae) in Canada. The DFO report notes that humpback whales are a species of “special concern” by the Committee on the Status of Endangered Wildlife in Canada.

It is DFO policy to assist the humpback whale population to recover from the century of whaling that almost drove the species to extinction. The report identified four areas of “critical habitat” for humpbacks. One critical habitat zone is Gil Island at the mouth of Douglas Channel.

DFO map of humpback habitat
DFO map of humpback sightings on the BC coast. (DFO)

Last week, on November 13, Smithers based environmental activist Josette Weir filed a notice of motion with the JRP requesting that the panel consider the DFO report as late evidence.

Weir acknowledged that the JRP proceedings closed on June 24, after final arguments in Terrace, but she noted that rules allow the Board to override the final closure. She argued that the humpback report fell within the JRP’s mandate since the DFO report is “is likely to assist the Panel.”

Weir noted in her motion that there was insufficient information before the JRP that would identify critical humpback habitat.

She argued:

Three of the four critical known habitats are on the proposed tanker routes, and the Recovery Strategy acknowledges that other areas have not been identified. Without such information, it is impossible to assess the potential effects of the marine transport of bitumen on this endangered species.Activities likely to destroy or degrade critical habitat include vessel traffic, toxic spills, overfishing, seismic exploration, sonar and pile driving (i.e., activities that cause acoustic disturbance at levels that may affect foraging or communication, or result in the displacement of whales).

The report clearly identifies vessel traffic and toxic spills, which are associated with the Project as potential causes for destruction or degradation of the Humpback Whales’ critical habitat.

Weir went on to argue that the JRP had “insufficient information to develop relevant protection measures” because the humpback studies are ongoing, “meaning their results will not be available before decision.”

The Panel must consider this significant risk to an endangered listed species for which no meaningful protection measure can be offered against the risks associated with the Project.

Weir also noted that “No similar submission has been made by others, but I cannot predict if others will not see fit to do so.”

The JRP didn’t take long to reject Weir’s request, replying the next day, November 14.

In its response, the JRP cited the amended Joint Review Panel Agreement, signed after the passage of of the Jobs, Growth and Long-term Prosperity Act, the Omnibus Bill C-38, that “provides that the Panel’s recommendation report is to be submitted to the Minister of Natural Resources by 31 December 2013.”

The JRP then told Weir it didn’t have jurisdiction over endangered species (even if those species inhabit the tanker route) saying:

The Panel notes that the Recovery Strategy has been released in accordance with the provisions of the Species At Risk Act, as part of a legislative scheme that operates independently of this joint review process.

It goes on to say: “In this case, the Panel also notes that the Recovery Strategy was not authored by or for Ms. Wier.”

Map of Gil Island
Humpback whale sightings at the Gil Island critical habitat. (DFO)

The executive summary of the DFO report noted:

Critical habitat for Humpback Whales in B.C. has been identified to the extent possible, based on the best available information. At present, there is insufficient information to identify other areas of critical habitat or to provide further details on the features and attributes present within the boundaries of identified critical habitat. Activities likely to destroy or degrade critical habitat include vessel traffic, toxic spills, overfishing, seismic exploration, sonar and pile driving (i.e., activities that cause acoustic disturbance at levels that may affect foraging or
communication, or result in the displacement of whales). A schedule of studies has been included to address uncertainties and provide further details on the critical habitat feature(s), as well as identify additional areas of critical habitat. It is anticipated that results from these studies will also assist in development of relevant protection measures for the critical habitat feature(s).

In the part of the report on the danger of toxic spills to humpbacks, the DFO report mentions that sinking of the BC ferry Queen of the North:

Toxic spills have occurred impacting marine habitat along the B.C. coast. For example, the Nestucca oil spill (1988) resulted in 875 tonnes of oil spilled in Gray’s Harbor, Washington. Oil slicks from this spill drifted into Canadian waters, including Humpback Whale habitat. In 2006, a tanker ruptured in Howe Sound, B.C. spilling approximately 50 tonnes of bunker fuel into coastal waters. In 2007, a barge carrying vehicles and forestry equipment sank near the Robson Bight-Michael Bigg Ecological Reserve within the critical habitat for Northern Resident Killer Whales, spilling an estimated 200 litres of fuel. The barge and equipment (including a 10,000L
diesel tank) were recovered without incident. When the Queen of the North sank on March 22, 2006, with 225,000 L of diesel fuel, 15,000 L of light oil, 3,200 L of hydraulic fluid, and 3,200 of stern tube oil, it did so on the tanker route to Kitimat, which is currently the subject of a pipeline and port proposal and within the current boundaries of Humpback Whale critical habitat

The DFO report also takes a crtical look at vessel strikes

In B.C. waters, Humpback Whales are the most common species of cetacean struck by vessels, as reported to the Marine Mammal Response Network. Between 2001 and 2008, there were 21 reports of vessel strikes involving Humpback Whales. Of these, 15 were witnessed collision events while the remaining 6 were of live individuals documented with fresh injuries consistent with recent blunt force trauma or propeller lacerations from a vessel strike.

Overall, vessel strikes can cause injuries ranging from scarring to direct mortality of individual whales. Some stranded Humpback Whales that showed no obvious external trauma, have been shown from necropsy to have internal injuries consistent with vessel strikes… It is unknown how many whales have died as a result of vessel strikes in B.C. waters. To date, only one reported dead Humpback Whale presented with evidence consistent with blunt force trauma and lacerations resulting from a vessel strike…

There are no confirmed reports of Humpback Whale collisions in B.C. waters attributed to shipping, cruise ship or ferry traffic. However, larger ships are far less likely to detect the physical impact of a collision than smaller vessels, and this could account for the lack of reported strikes. Collisions with large vessels may be more common than reported, especially in areas where larger vessel traffic is concentrated.

Despite the fact that collisions may only affect a small proportion of the overall Humpback Whale population, vessel strikes may be a cause for concern for some local and seasonal areas of high ship traffic.. In B.C., areas of high probability of humpback-vessel interaction include Johnstone Strait off northeast Vancouver Island, Juan de Fuca Strait off southwest Vancouver Island, Dixon Entrance and the “Inside Passage” off the northern B.C. mainland which include portions of two of the identified critical habitat areas..

The JRP also said

As the Panel has mentioned previously during the hearing, the later in the joint review process that new evidence is sought to be filed the greater the likelihood of the prejudice to parties. The Panel is of the view that permitting the Recovery Strategy to be filed at this late stage in the hearing process would be prejudicial to the joint review process.

Weir’s submission to the JRP did not mention an academic study published on September 11, 2013, that also identified Gil Island as critical humpback habitat.

RELATED:

“Conservatives’ hatred for science intentional part of their environmental policy,” Cullen says

DOCUMENTS:

DFO report on Humpback Recovery strategy  (PDF)

Josette Weir notice of motion on Humpback Whales (PDF)

Panel Commission Ruling on Humpback Whales (PDF)

 

 

Defend our coast rally in Kitimat

Protest rally
Protesters march down Kingfisher Ave, during the Defend Our Coast Rally in Kitimat, Nov. 16, 2013. (Robin Rowland/Northwest Coast Energy News)

About 250 people took part in the Defend Our Coast Rally at Mount Elizabeth Secondary School, Saturday, Nov. 16, 2013. The Kitimat protest was part of what organizers said were 130 rallies across Canada to protest environmentally threatening energy developments including the Alberta bitumen sands and various pipeline projects under the labels of Defend Our Climate or Defend Our Coast.

 

Gerald Amos
Gerald Amos addresses the rally. (Robin Rowland/Northwest Coast Energy News)
Kelly Marsh
Kelly Marsh speaks about his studies that show small or mid-level pipeline breaches are inevitable. (Robin Rowland/Northwest Coast Energy News)
Protest
Family at the rally. (Robin Rowland/Northwest Coast Energy News)
Patricia Lange
Patricia Lange addresses the rally. (Robin Rowland/Northwest Coast Energy News)
Protesters join arms
Protesters join arms, a feature of every one of the rallies across Canada. (Robin Rowland/Northwest Coast Energy News)
Protest march
The protest march on Kingfisher. (Robin Rowland/Northwest Coast Energy News)
Protest march
The protest march. (Robin Rowland/Northwest Coast Energy News)