Kitimat | Northwest Coast Energy News

Northern Gateway Joint Review questioning and final argument hearings skip Kitimat, most of the northwest BC pipeline route

The Northern Gateway Joint Review Panel questioning hearings and final arguments will bypass Kitimat and most of the communities along the proposed pipeline route, according to a letter to all intervenors from the JRP prompted by questions from the Gitxaala Nation.

The Joint Review Panel has not yet issued an official and final procedural directive concerning the final hearings, and in response to the Gitxaala letter, the JRP secreteriat will convene a conference on May 30, in Calgary to set up that procedure. The three panel members will not be present at the conference.

In the letter to the intervenors, the JRP proposes:

Final hearings for questioning will take place in three locations. The Panel intends to hold these hearings in Prince Rupert, BC, Prince George, BC and either Edmonton or Calgary, AB. These locations are centrally located, have adequate facilities and reasonable transportation access. Would fewer than three locations be appropriate? What are your comments on the locations chosen by the Panel?

As for the final argument hearings, the Joint Review Panel says:

The Panel anticipates allowing parties to present final argument either: (i) orally;
or (ii) in writing. On an exception basis, parties may request permission of the
Panel to allow final argument on a specific topic both in writing and orally.
The Panel anticipates holding hearings for final argument in two locations;
namely Prince Rupert, BC and either Edmonton or Calgary, AB. Mechanisms will
be established to allow parties to participate remotely (i.e. via telephone or other
electronic means). Do you have any input on these locations?

For the questioning period, the Joint Review Panel says it anticipates that it will sit from Monday to Saturday for two week periods, followed by a one week break. Standard sitting hours would be from 8:30 a.m. to 1:00 p.m.

Cheryl Brown, representing the Kitimat group Douglas Channel Watch, has already objected to the fact the Joint Review Panel has apparently decided to bypass Kitimat.

The location of the panel should include Kitimat as it is the community
experiencing the highest impact from the project -land and marine. The citizens
of Kitimat need to have the opportunity to hear the proceedings and how it will
potentially impact their future. Accommodations can be provided in Terrace with
bus transportation provided if needed and this is standard practice for other large
events. Air travel into Terrace/Kitimat is reasonable with good transportation to
Kitimat. Rupert has some exposure to the project but to justify that the hearings
take place there due to adequate facilities, that it is central and has reasonable
transportation access is not valid. Rupert is not central for the Northwest and the
issue of getting from the terminal to the city by ferry is hardly reasonable.

The proposed schedule seems adequate. For intervenors with limited financial
resources any length of stay outside their own area can be difficult.

Note that in its letter the JRP asks: “Would fewer than three locations be appropriate?” There is no suggestion that the number of locations be expanded.

This is despite the fact throughout the hearings, Sheila Leggett, the chair has repeatedly told intervenors in each location to hold back their comments until the final hearings. In addition, during the intervenor phase of the hearings, questioning was not permitted, only statements on local or traditional knowledge.

The JRP letter to intervenors goes on to say

The Panel intends to have questioning on oral evidence completed prior to
questioning based on written evidence pertaining to the List of Issues.
Questioning of witness panels will proceed at each location based on issues.
These issues largely mirror the List of Issues set out in the Hearing Order (dated
5 May 2011) and discussed in the Panel Session Results and Decision (dated
19 January 2011). The Panel intends to address each issue listed below in
relation to the entire Project at only one location. The location for each issue is
as follows:

Prince Rupert

(a) Potential Impacts of the Proposed Project on Aboriginal Interests
(socio-economic matters; asserted and proven Aboriginal and treaty
rights)
(b) Environmental Effects
(c) Socioeconomic Effects
(d) Consultation (with the public and Aboriginal groups)
(e) Safety, Accident Prevention and Response (related to the marine
terminal and marine transportation)

Prince George

(a) Potential Impacts of the Proposed Project on Landowners and Land
Use (pipeline crossings; depth of cover; impacts on agricultural soils)
(b) Routing (general route of the pipeline and route selection criteria).
General location of the facilities and siting of a marine terminal.
(c) Design, Construction and Operation
(d) Follow up and monitoring
(e) Safety, Accident Prevention and Response (related to the pipeline)

Edmonton or Calgary

(a) Need for the Proposed Project (supply and markets; commercial
support; economic feasibility)
(b) Potential Impacts of the Proposed Project on commercial interests
(c) Financial and Tolling Matters (tolling structure and methodology;
proposed financing; financial responsibility of the applicant)

The letter asks, “Do you have any additional issues for each hearing location or any input on the general format identified?”

It also asks intervenors questions like: “What parties’ witnesses do you anticipate questioning during the final hearings? What issues do you anticipate you will ask questions about? How much time do you anticipate you will require for questioning for each issue?

The panel says it is considering a process for expert witnesses which would entail having expert witnesses for parties with conflicting opinions seated together in a single witness panel and questioned at the same time, mainly about issues that “are highly technical in nature” so the panel can “assess complex expert evidence, understand differences, and focus on certain technical issues in an efficient manner.”

The letter goes on to say that the panel intends to permit “questioning of witnesses by telephone and is exploring other remote means.”

However, the letter to the Joint Review Panel from Cheryl Brown of Douglas Channel Watch clearly shows the kind of problems faced by those “directly affected” by the pipeline if they live in rural northwestern British Columbia.

Technology is limited as I am rural and do not have high speed internet. Could
the use of local video conferencing facilities be utilized. The panel needs to consider that there are many intervenors that are independent in the process and do not have resources to participate that others may have. It bears on the JRP
to ensure there is the ability of all to participate in the process in a reasonably fair and equitable way and the panel needs to consider other ways to configure the hearings

Telephone questioning during the NEB KMLNG (Kitimat LNG) hearings in Kitimat in June was awkward to say the least, and often plagued by technical problems in getting lines up and staying connected. Telephone questioning also meant that the energy industry lawyers actually in the hearing room at Riverlodge had a distinct advantage over the remote questioners.

The letter of the Joint Review Panel by Cheryl Brown of Douglas Channel Watch also outlines the issues the environmental group will be trying to bring before the panel:

Here are issues that need to be addressed within the communities highly affected
i.e. Kitimat
•Routing: through the tunnel and the difficult terrain of the Kitimat River,
•Siting of the marine terminal,
•Safety, accident prevention response related to the terminal and marine
transportation, environmental effects on the estuary, Douglas Channel
and marine route.
•Socioeconomic and environmental effects are different across the entire
pipeline. To address then in one place does not allow for adequate
participation by intervenors from other areas to address the areas that are
of concern. A significant number of intervenors are without funding and
are privately involved in the process. The hearings have to acknowledge
this.
•Aboriginal interests are unique to different areas and the costs for travel to
one place would be a burden.
•Consultation with the public needs to be represented in more locations.
The public that has been involved as intervenors do not have resources to
travel. The panel needs to consider this.

Brown goes on to say that the use of expert panels “sounds interesting” but she adds she is “not sure how one would interact with the panel. More details are required.”

The Joint Review Panel’s proposed schedule, which basically eliminates effective participation by those most affected by the pipeline, raises a key question at the national political level. Is the fact the panel is skipping most of the communities involved a return to the National Energy Board tradition that it is nothing more than a private club for Calgary energy lawyers or is it a result of pressure from Prime Minister Stephen Harper and Natural Resources Minister Joe Oliver to speed things up?

The controversial Enbridge Northern Gateway twin pipelines, if approved, will transport bitumen from Alberta to the port of Kitimat and condensate from Kitimat to Alberta. Although there is significant opposition to the pipeline in British Columbia, Prime Minister Stephen Harper has made clear the pipeline is a national priority. Natural Resources Minister Joe Oliver has repeatedly condemned people who oppose the pipeline as “radicals.”

Update: District of Kitimat, Haisla Nation to question JRP schedules bypassing Kitimat

In separate e-mails to Northwest Coast Energy News, Kitimat mayor Joanne Monaghan and Haisla Nation Chief Counselor Ellis Ross both say they will be file objections with the Joint Review Panel questioning the JRP’s position in bypassing Kitimat in both the questioning round and final arguments.

JRP Procedural Direction No 7 (pdf)

JRP letter to all parties Procedural Conference on Final Hearings (pdf)

Letter to JRP from Cheryl Brown of Douglas Channel Watch (pdf)

Scientists identify major Japanese-style tsunami hazard for west coast

American scientists studying the aftermath of the March 11, 2011, Tohoku, Japan earthquake and the resulting devastating tsunami say that a similar tsunami could be generated by an earthquake in the Aleutian Islands of Alaska.

The 9.0 magnitude Tohoku earthquake created a tsunami that was a high as 10-metres. The events killed about 18,000 people. Debris from the tsunami is now appearing on the west coast of North America.

The study, published May 8, in EOS, the Transactions of the American Geophysical Society, says:

A tsunami triggered by an earthquake along the AASZ [Alaskan-Aleutian Subduction Zone] would cross the Pacific Ocean and cause extensive damage along highly populated U.S. coasts, with ports being particularly vulnerable.

A subduction zone is where one tectonic plate, in this case, the Pacific plate, is forced down under another plate, the Alaskan continental arc.

Data from the Tohoku earthquake suggests that portions of the Alaskan-Aleutian Subduction Zone could be just as hazardous.

The study, by Holly Ryan, of the Pacific Coastal and Marine Science Center of the US Geological Survey in Menlo Park, Ca. and colleagues says the Japanese earthquake surprised scientists because the magnitude of both the earthquake and the tsunami were much larger than expected for the Tohoku region off northeastern Japan. The scientists say the region was originally considered low risk because the deep water section of the tectonic plate boundary that ruptured had been aseismic [a fault where there are no records of earthquakes] prior to the March 2011 event and was thought to be too weak to accumulate the strain to trigger a major earthquake.

In Japan and the Aleutians, there are seldom records of earthquakes where the upper tectonic plate is made up of weak, water-laden trench sediment accreted [stuck or locked] to the margin along thrust faults. The accreted sediment is not strong enough to fail in an earthquake (stick-slip behaviour) but, rather usually deforms without causing an earthquake.

Now research from the Japan shows that deep water section of the Tohoku region was fully
locked (accumulating strain at the convergence rate). The continental basement rock lies within
20 kilometres of the trench in deep water above the boundary at Tohoku. That created major accumulation of strain on the fault.

So when the earthquake occurred, there were large amounts of slip on the Tohoku megathrust, as well as corresponding movement on a deep water branch fault. Both contributed to the displacement of large volumes of water, creating the giant Japanese tsunami that smashed into the coast.

The Alaskan-Aleutian Subduction Zone is similar to the Tohoku region. The AASZ begins at a deep trench where the Pacific plate under thrusts the Alaskan continental arc and the Aleutian Islands oceanic arc.

Part of that subduction zone triggered the March 27, 1964 Good Friday magnitude 9.2 Anchorage, Alaska, megathrust earthquake. It was the largest quake ever recorded in North America and the second largest worldwide since seismic events were recorded. The epicentre was about 20 kilometres north of Prince William Sound, where a fault ruptured 25 kilometres below the surface. That quake causing major damage in Anchorage, 125 kilometres to the west and in Valdez 64 kilometres to the east. The megathursts along the ocean floor shifts created large tsunamis as high as 67 metres that struck along the North American coast from Alaska to California.

In Anchorage, nine people were killed by the quake, much of the downtown was destroyed and one neighbourhood lost 75 homes in a massive landslide. Two villages near Anchorage were destroyed when the land sank.

According to Wikipedia, the damage to British Columbia alone was estimated at $10 million in 1964 dollars (about $75 million in 2012 dollars according to the Bank of Canada inflation calculator) The Anchorage quake actually shook Kitimat and caused minor damage in the town. Due to factors such as the location of the quake at Prince William Sound , the tides and other factors along Douglas Channel, the tsunami coming into Kitimat was just a few centimetres high. Across the northwest and down the coast, there was more damage, the tsunami that hit Prince Rupert was 1.4 metres. Again to the configuration of the coast, tides and other factors, Port Alberni on Vancouver Island was hit twice, washing away 55 homes and damaging 375 others.

In California, 12 people were killed at Crescent City. There was damage in Los Angeles and as far off as Hawaii.

The study says that an Anchorage type event occurs every 900 years, so that area appears to be out of immediate danger,

According to the study, there was a magnitude 8.6 earthquake near Uninmak Pass in the same region in 1946 that triggered a tsunami that caused damage along the west coast, killed 150 people in Hawaii and inundated shorelines on South Pacific Islands and as far away as Antarctica. Another earthquake near the Andreanof Islands in 1957 also triggered a dangerous tsunami.

The new danger zone could be at the Semidi Islands, southwest of the better known Kodiak Island, where a 400 kilometre-long section of the subduction zone ruptured in 1938, causing a 8.2 magnitude earthquake. In the 1938 earthquake, the study says, that quake was beneath relatively shallow water, so it generated only a modest tsunami.

The Semidi Islands area is now fully locked, the study says, and enough strain has built up to trigger a similar event.

In 1788, a major earthquake in the Semidi Islands was recorded by Russian settlers. It is that area that the study says could trigger a Tohoku type tsunami. The segment of the trench in deeper water has not had a rupture since 1788. Satellite observations show that strain along the fault is accumulating “at a high rate.” The trench is four to five kilometres deep, just like at Tohoku, so displacement of the ocean water could trigger a similar giant tsunami.

Potential rupture of the near-trench section of the plate boundary is worrisome in that similar to the plate boundary near Tohoku, it is composed of rigid basement rock that extends beneath the margin to water depths of four to five kilometres. The presence of rigid basement rock close to the trench allows for an earthquake source beneath deep water, which would significantly amplify the height of the resultant tsunami. In addition, the possible additional rupture of an as yet undiscovered splay or branch fault, similar to circumstances during the Tohoku earthquake, would further increase the tsunami height.

The authors of the study call for more studies to compare the Aleutian area with the Tohoku region of Japan. Scientists are now working on “Paleotsunami studies” so there is a a history of tsunamis generated in the Aleutians that can be correlated to specific earthquakes.

Most of the attention on the west coast of North America has been centred on the Cascadia fault from northern California to southern British Columbia, which could also trigger a major earthquake and tsunami. It is time that scientists, emergency planners and government paid more attention to Alaska.

Link to Study Tsunami Hazards to U.S. Coasts form Giant Earthquakes in Alaska (pdf)

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What about the Northern Gateway?

My family was just sitting down for dinner in Kitimat on that Good Friday evening in 1964 when the whole house began to shake. The quake in Anchorage lasted for four minutes, the shock that hit Kitimat was probably less than a minute.

After dinner, tuning to the local TV station, CFTK, the Friday night broadcasts was interrupted by a news special, an extraordinary even for a small station, which in those days had no microwave communications with the rest of the television universe, with the local anchor telling the story based on wire service and other reports that were already trickling in, giving the people of the Kitimat-Terrace-Prince Rupert region the news of the devastation in Alaska.

Fast forward 48 years and the big question on the northwest coast is the Enbridge Northern Gateway pipeline and whether or not the pipeline and the terminals in Kitimat harbour are vulnerable to earthquake and tsunami.

In public presentations in Kitimat, Enbridge officials have always minimized the potential danger to the Northern Gateway from earthquake and tsunami. In its latest presentation, to District of Kitimat Council on April 16, 2012, Enbridge engineer Drum Cavers told council that “all of the major earthquakes have occurred well off shore on the Queen Charlotte Fault,” and that “seismic activity is low relative to south coastal BC.” Cavers also said “the Kitsumcalum-Kitimat Valley is not the site of unusual seismic events or faults.” The presentation points to an 1973 quake in the Skeena River valley that Enbridge says was small and the planned pipeline is within “seismic design parameters.”

Cavers’ presentation said “No fault breaks to surface are known near the pipeline route, but if one should be found during further work, there are methods to mitigate fault motion if required.”

There has been no mention by Enbridge Northern Gateway of the potential problems that could be caused to the Kitimat pipeline and the terminal by a major earthquake or tsunami from the Alaska Aleutian region.

I was out of town during Cavers’ presentation but I have asked questions about the 1964 quake and potential problems from Alaska at three public meetings, including a direct question to Northern Gateway president John Carruthers at the September, 2011, public forum at Kitimat’s Mount Elizabeth Theatre. Despite promises, Enbridge has so far not responded to my questions.

Bechtel, RTA want to bring in Foreign Temporary Workers for Kitimat Modernization Project

Updated with Rio Tinto Alcan statement and CAW negotiations bulletin

Rio Tinto Alcan and Bechtel are proposing to bring in temporary foreign workers for the Kitimat Modernization Project, because, according to a letter from Bechtel obtained by Northwest Coast Energy News, a “labour shortage” is “a possible risk to the project schedule.”

The letter was sent by Dawn Perry, Field Contracts Manager, to Bechtel/RTA contractors on April 30.

The key paragraph in the letter says

Over the past several months, Bechtel and RTA have been working with government agencies to understand and establish a process to bring Temporary Foreign Workers to the project in the event there is a shortage of qualified craft workers in British Columbia and Canada. The process will benefit Contractors on the KMP that may experience labour shortages.

The Bechtel letter does say the company is consulting with trades unions involved

It is imperative that we all work together to identify labour needs in advance to provide the Building Trades Unions sufficient time to provide qualified labour.

Bringing in temporary foreign workers, whether by RTA, Bechtel or a contractor, must be approved by Citizenship and Immigration Canada.

In past news conferences, RTA managers have said there are problems in getting skilled workers or contractors for the $3.3 billion project, due to high demand locally from the proposed liquified natural gas projects and labour shortage as far away as the bitumen sands at Fort McMurray. On the other hand, there are continuing complaints from contractors who say that even trying to bid on a KMP project is a bureaucratic nightmare. There are also complaints that people from the Kitimat region that they are still are on waiting lists for jobs at KMP.

Colleen Nyce, a spokesperson for Rio Tinto Alcan in Kitimat said, “We actually hope to not have to hire temporary foreign workers. We prefer to hire from the local area and BC. This will, among other things, keep our costs down to hire from this jurisdiction.

“As of the present time, we have 54 per cent local workforce on the Kitimat Modernization Project. We are very proud of this. However, we are now entering the stage where, within the next four months we will be seriously ramping up the construction schedule and will need to hire qualified craft on a quick turn around basis.

“Since Notice to Proceed was given to KMP on December 1st, 2011, our Project burn rate is $3.1 million/day. We therefore cannot risk the project with workforce shortage issues and delays.

“As a precautionary measure, and given the length of time to receive government approvals, we made application for Temporary Foreign Workers, from the United States only, back in January. Our application for this has been supported by the unions affiliated with our project. We routinely have labour studies and labour surveys completed, as do the unions, and all intelligence is advising us that we will most likely be facing a skilled labour shortage.

Nyce says RTA is looking at: “All craft – electricians, carpenters, pipefitters; operators to name a few. We must search across Canada first. We are partnered with 16 different building trades unions. All of these unions have connections and members across the province, country and some into the United States.”

The date of the letter is already causing concern in Kitimat, coming as it does at almost the same time as Rio Tinto Alcan presented Canadian Auto Workers Local 2301 with a series of tough initial contract proposals that would see all but the most core jobs at the aluminum smelter contracted out.

Nyce, however, says, “This has absolutely nothing to do with BC Operations negotiations with CAW Local 2301.”

RTA locked out 780 United Steelworker members at the Alma, Quebec, smelter on December 31. The USW says talks with RTA broke down over the use of subcontractors and contracting out. RTA says its over all aluminum production dropped 12 per cent to 520,000 tonnes in the first quarter of 2012, mainly due to the lockout in Quebec, where smelter production dropped by about two-thirds.

There are already rumours in Kitimat that the temporary foreign workers would be used to keep the Kitimat Modernization Project on schedule in the case of a lockout or strike at the smelter itself.

UPDATE: CAW Local 2301 has issued its latest negotiation bulletin.In the bulletin, the local expresses its feelings of betrayal after negotiating a transition agreement with the company in 2007.The number of jobs at the new smelter will drop from a miniumum of 850 (although 1,000 jobs was the figure used most often) to 699.

The company’s position on the modernized smelter was an insult to the Union, tore away any sense of credibility that may have existed and has set the stage for a collision at this set of negotiations.

Rio Tinto Alcan has presented the union with a long list of jobs that would be contracted out but where those contractors would be working alongside union members in the new smelter and nearby locations.

CAW 2301 is now considering its response to RTA. There are membership meeting this week.

The letter also comes at time when the national level of the Canadian Auto Workers is expressing doubts about the Conservative government’s push to increase the number of Temporary Foreign Workers.

In an phone interview, Ken Lewenza, president of the CAW, said Tuesday, “I am not totally convinced that there is a shortage of worker problem with a little under 10 per cent unemployment. The real problem is where is the work and how do we fit the skills of our Canadian work force to meet those particular requirements and if for any reason we can’t do that based on knowledge, based on recognizing the kind of skills that are needed and how you prepare workers who are working in precarious situations who are unemployed, how we can better prepare for these kind of work opportunities, I think what government is doing, employers contractors, are seeing foreign workers as the first priority when it should be that absolute last.”

As for the rumours that temporary foreign workers could be used to keep the KMP going or even become possible replacement workers, Lewenza said, “If foreign workers were to replace our members at 2301 at a time we’re in labour negotiations, as replacement workers, then that would lead to a huge confrontation, at a time when quite frankly it’s not necessary. The whole idea of bringing in foreign workers is if there is a shortage of labour, a labour disruption isn’t a shortage of labor, it’s a shortage of getting a collective bargaining agreement.”

The RTA contract proposals were also on the table at Monday’s District of Kitimat Council meeting, where Councillor Phil Germuth led off the discussion by saying that he was disappointed by the RTA proposals, saying that over the past several years council has granted RTA every variance and development proposal it wanted and has agreed to forgo $7 million in tax revenue for the Kitimat Modernization Project, and, “We were promised there was going to be about 1000 jobs, now they are down to 700. I find it hard to believe that they would propose 300 job losses and not expect any problems at all, This council and previous councils have been working with them and now to have another 300 jobs cut that’s a big disappointment.”

Sources have told Northwest Coast Energy News that some members of middle and upper management at the Kitimat smelter are also not happy with the contract proposals, which together with the Alma lockout, are bringing back a corporate culture clash between the former Alcan management and the different attitudes brought to Canada by Rio Tinto, a London based multinational.

Olympic medals

A group calling itself Off the Podium, led by former Olympian Bruce Kidd, is asking the London 2012 Olympic committee (LOCOG) to drop RTA as the official supplier of gold, silver and bronze for athletes’ medals.

Signed by Steelworkers National Director Ken Neumann, the complaint asserts that Rio Tinto’s actions in Alma violate the Games’ ethical procurement standards because they consist of an illegally-declared lockout, serious and significant violations of the workers’ health and safety, shirking its obligations by sub-contracting out work to low paid workers, and paying wages and benefits below industry benchmark standards.
Neumann’s complaint letter goes on to request that LOCOG follow its ethical guidelines to reject Rio Tinto as a supplier.

: Bechtel’s April 30 letter to contractors about bringing in Foreign Temporary Workers

BC NDP formally opposes Northern Gateway in letter to Joint Review Panel

The British Columbia New Democratic Party has written to the Northern Gateway Joint Review panel formally opposing the controversial pipeline project, while at the same time supporting the Kitimat LNG projects, as long as there are strong environmental controls on those projects.

A long letter from NDP leader Adrian Dix to the panel concludes by saying

as the Official Opposition, we have carefully weighed the risks and benefits of the NGP to British Columbia, and to Canada. After much consideration and consultation, we have come to the conclusion that the risks of this project far outweigh its benefits. We believe that the NGP will cause significant adverse economic and environmental effects and is not in the public interest. Therefore the NGP should not be permitted to proceed.

The letter also calls on the federal government to legislate a permanent ban on tankers for the west coast. The letter goes over the history of the Exxon Valdez spill

Eight of 11 cargo tanks were punctured, releasing about 258,000 barrels of crude oil, most of which was lost in the first eight hours. There were widespread ecological and economic impacts….To this day, vital shore habitats remain contaminated, the herring fishery has been closed for 15 seasons since the spill, and herring are not considered recovered. The clean-up costs alone are estimated at $3.7 billion…Wildlife and natural resource damages range from $8.5 billion to as high as $127 billion…. Related to the economic hardship felt by families and communities, a wave of social problems followed – alcoholism, high divorce rates and even suicides swept through the Sound’s small towns….

We simply cannot let this happen in British Columbia: the risk is just too great. Therefore, we are calling on the federal government to legislate a permanent moratorium on oil tankers and oil drilling activity on B.C.’s north coast to ensure the ecological integrity and economic and social vitality of the lands and waters of this unique region.

The letter also takes Premeir Christy Clark to task for not taking a stand on the Northern Gateway Issue

The Government of British Columbia agreed to the Joint Review Panel (JRP) process, limiting its ability to give voice to B.C.’s interests. In addition, the Province did not seek government participant status and has failed to exercise its intervenor status to fully represent the interests of British Columbians.

We note that other government agencies including an Alberta municipality, the Province of Alberta and Alberta’s Transportation Ministry, as well as the federal Department of Indian and Northern Affairs, Department of Justice, Environment Canada, Fisheries and Oceans Canada, Natural Resources Canada and Transport Canada have registered as government participants in the JRP.

We also note that the Union of British Columbia Municipalities, and a number of local
governments have passed motions opposing the NGP. These include: the Village of Queen Charlotte, Sandspit, Masset, Port Clements, Prince Rupert, Terrace and Smithers.

As the Official Opposition, we take our responsibility to represent and to protect the interests of British Columbia and British Columbians seriously. We have listened to the concerns and diverse perspectives of constituents throughout the province and we have met with stakeholders and experts about the NGP.

The letter also expresses concern about the fairness of the Joint Review Process

Four New Democrat MLAs are actively participating in the JRP, as intervenors or as presenters. Three of these MLAs represent constituencies that will be directly impacted if the NGP proceeds. The fourth MLA is our environment critic. All of them, like the thousands of other British Columbians who are participating in the JRP, are doing so in good faith.

We are very troubled by statements of the Prime Minister and Minister of Natural Resources that have caused several commentators and JRP participants to question the objectivity of the process and ask if its outcome is predetermined.

Dix is quick to point out that the New Democrats are not against sustainable economic development.

The importance of sustainable economic development International trade and responsible resource extraction are essential to B.C. and Canada’s economy.

International trade creates good-paying jobs and vital communities. To this end, we are committed to building on our tradition of further developing trade relations with China and other Asia Pacific markets to build a strong B.C. economy.

Further, we have been clear about our support for the Kitimat liquefied natural gas project while emphasizing it comes with the serious responsibility to ensure strong environmental protections. We acknowledge that all resource development and extraction has inherent risks.

Other points in the NDP letter were:

The tanker traffic to ship Alberta oil to Asian markets will require lifting of the current tanker moratorium and the Tanker Exclusion Zone, and will put the British Columbia coastline at serious risk of devastating environmental and economic damage from potential oil spills;The NGP will traverse remote and highly valued areas of B.C., and will cross almost 800 streams. The risk of spills from the proposed pipeline will put these valuable
environments and species, such as salmon, at risk;The impact of an oil leak or spill would be most severely felt by First Nation
communities. As has been affirmed by the Supreme Court of Canada, First Nations must be consulted effectively and be respected on a government-to-government level;• The greenhouse gas emissions generated by NGP-related oil sands development will
contribute to the economic, social, and environmental costs of climate change;
The NGP provides few long-term and sustainable economic benefits for British
Columbia, while shipping raw bitumen forgoes important value-added economic
development opportunities involving upgrading and refining the oil in Canada;• The NGP is forecast to increase Canadian oil prices for Canadian consumers.

NDP BC news release

BC NDP caucus letter to Joint Review Panel (pdf)

NDP BC backgrounder on the Northern Gateway (pdf)

Analysis: The Murdoch inquiry’s lessons for the Northern Gateway Joint Review Panel

The members of the Northern Gateway Joint Review panel and Stephen Harper’s cabinet, especially Natural Resources Minister Joe Oliver, should take a lesson from the Mother of Parliaments at Westminster and today’s parliamentary debate on the Leveson inquiry into the phone hacking scandal centered around Rupert Murdoch’s News International.

Fortunately for the United Kingdom, by and large, the House of Commons there still features rigorous debate by (mostly) intelligent Members of Parliament, unlike the current Parliament in Ottawa, where it appears that the members on the government benches are not even the “trained seals” they used to be, but mindless robots reading scripts prepared by operatives in the prime minister’s office.

(Although as the honourable Speaker at Westminster observed today, like Ottawa, debate can get out of hand at times. “Whatever strong views Members hold on this subject—as on many others—let me just remind them of the importance… of moderation in the use of language in this House. )

So what is the connection between Rupert Murdoch and the Northern Gateway Joint Review Panel? Simple. The debate in the UK House of Commons on Wednesday, April 25, 2012, was all about inappropriate political interference in a “quasi-judicial” proceeding.

In the case of the UK, we’re talking about inappropriate political interference in Rupert Murdoch’s application to own all of the the satellite broadcaster, BSkyB.

In Canada, we’re talking about the ongoing interference by Stephen Harper and Joe Oliver and other members of the Conservative cabinet in the proceedings of the Northern Gateway Joint Review Panel, which is also a quasi-judicial proceeding and should be independent of the government and should hear all sides of a debate, and come to a fair recommendation for the government.

Yet it is increasingly obvious, that up until now, the Joint Review Process is pre-determined to find the Enbridge Northern Gateway Pipeline in the “national interest” and even if the Joint Review Panel puts a large number of environmental restrictions and conditions on the pipeline, it is highly likely that the Harper cabinet will overrule those conditions. If the members and staff of the JRP read today’s UK Hansard, (See note on links below) perhaps it will give them some motivation and backbone to come up with an independent ruling and recommendation or if they can’t, they should do the honourable thing and resign.

So what happened in the UK? Yesterday’s testimony at the phone hacking inquiry by Lord Justice Brian Levenson showed that the UK Culture Secretary Jeremy Hunt had a series of meetings in the United States with News International executives prior to the Murdoch announcement that company was going to bid for full control of BSkyB. A special assistant to Hunt, a man named Adam Smith, also had meetings with News International officials and exchanged alleged “back channel” information. Smith has resigned. Hunt, for now, remains UK cultural secretary, with the Opposition demanding his head (not on London Bridge as a few centuries ago, just his resignation)

In a statement to the Commons, Hunt said

As part of this process, my officials and I have engaged with News Corporation and its representatives, as well as other interested parties—both supporters and opponents of the merger. Transcripts of conversations and texts published yesterday between my special adviser, Adam Smith, and a News Corporation representative have been alleged to indicate that there was a back channel through which News Corporation was able to influence my decisions. That is categorically not the case—[Interruption.]
Mr Speaker:
Order. The House must calm down a bit. The statement must be heard. There will be a full opportunity for questioning of the Secretary of State, as he would expect. Whether he expects it or not, that is what will happen. That is right and proper, but it is also right and proper that the statement should be heard with courtesy.
Mr Hunt:
However, the volume and tone of those communications were clearly not appropriate in a quasi-judicial process, and today Adam Smith has resigned as my special adviser. Although he accepts that he overstepped the mark on this occasion, I want to set on record that I believe that he did so unintentionally and did not believe that he was doing anything more than giving advice on process. I believe him to be someone of integrity and decency, and it is a matter of huge regret to me that this has happened.

So the volume and tone of communications between News International and the minister responsible for looking over the BskyB bid were “not appropriate.”

Here in Canada, Enbridge has been lobbying the Conservative government for years to tilt the process in their favour. As exposed by reporting by both PostMedia News and Canadian Press, Enbridge lobbying occurred just before the government pulled out of the PNCIMA– the Pacific North Coast Integrated Management Area, which was to safeguard the environment of the Pacific coast of BC.

At the same time the government continues to attack the other side, the environmentalists, as “radicals.” Hardly a fair approach.

Just today, Post Media News pointed to a report from the lobbying commission of a meeting between Enbridge and Fred Nott, chief of staff for the Minister of Fisheries and Oceans, and Pat Daniel, outgoing CEO of Enbridge, on Dec. 8, 2011 and now we have changes to the Fisheries Act that are clearly in Enbridge’s favour.

Back to the Mother of Parliaments. In response to Hunt, Harriet Harman of the Labour Party talked about ministers making up their minds on a major economic issue before a report is finished.

Everyone recognises that the £8 billion News Corp bid for BSkyB was of huge commercial importance and that it had profound implications for newspapers and for all of broadcasting, including the BBC. The Business Secretary had been stripped of his responsibility for deciding on the bid because he had already made up his mind against it, but the Culture Secretary too had made up his mind, in favour of the bid, so how could he have thought it proper to take on that decision? Of course he could take advice, but the decision as to whether he should do it, and could do it fairly, was a matter for him and him alone.

The Secretary of State took on the responsibility, and assured the House that he would be acting in a quasi-judicial role, like a judge, and that he would be transparent, impartial and fair. However, is it not the case that James Murdoch was receiving information in advance about what the Secretary of State was going to do and what he was going to say—information that was given to only one side, which had not been given to those who were opposed to the bid, and before it was given to this House…

When it comes to the transparency that the Secretary of State promised, there appears to have been a great deal of transparency for Murdoch, but precious little for opponents of the bid or for this House. If, as suggested on the right hon. Gentleman’s behalf in the media, he was negotiating with Murdoch, why did he not tell the opponents of the bid and why did he not tell the House? Will he tell us now whether he believed himself to have been negotiating? Is that what was going on?

Chris Bryant, Labour member for Rhondda, could perhaps give the Canadian House of Commons, or at least the Canadian Conservative members, a lesson in the meaning of “quasi-judicial.”

Chris Bryant
Every councillor in the land knows what “quasi-judicial” means. They know that it means that if they are on the planning committee, they cannot tip the wink to anybody on one side or the other, and that they have to be cleaner than clean, whiter than white.

In the United Kingdom, as in Canadian Parliament, the underlinings take the fall for the Minister, but in a quote widely reprinted in the media today, one honourable member from the UK objecting to the minister’s action put it much better than anyone in Canada.

Mr Dennis Skinner (Bolsover) (Lab):
The Culture Secretary’s adviser has now lost his job. Does that not prove the theory that when posh boys are in trouble, they sack the servants? Why doesn’t the Secretary of State do the decent thing: tell dodgy Dave and Gideon, and get out and resign?
Mr Hunt:
Adam Smith’s resignation is a matter of huge regret to me. I believe him to be a person of integrity and decency, but my responsibility to this House is to the integrity of this process—the objectivity and impartiality with which this process was conducted—and I believe I have presented evidence to the House that demonstrates that I behaved in a judiciously impartial way throughout.

One other key difference between the House of Commons in Ottawa and the House of Commons at Westminster is that the Speaker actually tries to get ministers to answer the questions put to them by the Oppositon and also comes down hard on irrelevancies.

Mr Speaker:
Order. The hon. Gentleman is asking a question that is completely irrelevant to the terms of the statement. [Interruption.] It is simply not relevant. The hon. Gentleman should go and do his homework.

Jeremy Hunt asked to testify before the Leveson inquiry to tell his side of the story, so to be fair, until he has completed his testimony, the public will not know all that transpired between the Murdoch’s News International and the Conservative government in the UK.

It also should be noted that Hunt had a dual role, both as a cabinet minister and the quasi-judicial action of deciding on the BskyB application, which certainly seems to be a conflict of interest, while the Joint Review Panel is made up of three nominally independent individuals.

However, the fact remains, that statements from Stephen Harper, Joe Oliver and Peter Kent, with their open support for the Enbridge Northern Gatway pipeline while the JRP proceedings continue, are in the words of a much more honourable member than they are: “the volume and tone of those communications were clearly not appropriate in a quasi-judicial process.”

This also means that Canadians, especially the people of British Columbia, and the national media, should, from now on, be paying closer attention to the Leveson Inquiry. As of this week, the inquiry goes beyond the Shakespearean nature of the Murdoch clan, the titillation of the scandal of hacking the phones of Royals, celebrities, footballers and murder victims, not to mention the excesses of the British tabloids. Political interference in supposedly independent quasi-judicial proceedings is a threat to the checks and balances of any democracy and we should watch the testimony in London and be on guard for the future of Canada’s already shaky democracy.

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Cullen to Northern Gateway Joint Review panel, can you justify your existence?

Joint Review Panel at Kitimat — Members of the Northern Gateway Joint Review Panel and Haisla elders stand during the welcome ceremony for the panel at Kitamaat Village, Jan. 10, 2012. After the government announcement that it can overrule any recommendation from the panel, more people are questioning its credibility. (Robin Rowland/Northwest Coast Energy News)

The members of the Northern Gateway Joint Review must now justify their jobs and the existence of the panel, now that the government will likely overrule any recommendations they make about the controversial pipeline, Nathan Cullen, NDP House Leader and MP for Skeena Bulkley Valley said Friday, April 20.

Ever since the Joint Review hearings began in Kitimat in January, witnesses have repeatedly challenged the panel about the fairness of the proceedings, whether or not the panel is rigged in favour of the pipeline and whether or not the government will listen to the panel.

Chair Sheila Leggett has always ruled the questions out of order or cut off the witness.

Now that the government has said that it doesn’t have to abide by any decision or provisions from the Joint Review Panel, Cullen says that the panel members must make it clear where they stand.

“I think it’s a fair question. It was always there though. You’ve been to the hearings, people have been asking the question does any of this matter? Are you guys actually going to listen and is anyone going to listen to you, the panel, is the government going to listen?

“So the question has been out there and unfortunately it’s been confirmed in the negative. I don’t want dissuade people from showing up. Because it is about our voice, it’s about being able to express yourself publicly.”

Cullen said that he believes that people must continue to participate in the hearings, even if they are cut short by the government, because what the Conservatives really want is for people to abandon the political process.

Cullen was answering several questions from northwestern reporters during a regular conference call, where the reporters noted that many residents of the BC northwest are wondering if attending the hearings are worth it.

“This is a forum that we’re paying for, it’s apparently going to continue on. So when I sit in front of the panel, which I’m planning to still do, I’ll have a question for them, which is: ‘Did you know this was coming? And now that it’s happened do you feel that you’re even credible? Do you still exist, if your mandate has been ripped away from you?’

“If I was one of the panel members, those are answers I’d be wanting from the minister, [Minister of Natural Resources] who assigned them all, who appointed them all because they are great and smart people who should be making a decision, [Now] the government doesn’t think they’re so smart after all.

“It’s like ripping a judge off the bench half way through the trial. You must have a reason. Either you don’t like the evidence that was coming forward or you didn’t like the judge or you never believed in the process. I don’t know which one of those are true for the government, but one of them is.

“Things have changed, normally you wouldn’t have a judge asking questions about a judge’s mandate because it is obvious that the judge has authority.

“Well, the judge’s authority just got absolutely stripped away. So is that a question for the judge? I think so.

“I don’t really expect them to answer, they’re going to have to say something to somebody about why they’re still there. Why are we still spending this money if the government is going to listen to science or to the opinions of the people who are impacted?

“The public still has a right to speak , despite what this government thinks. I’ve always said that the people impacted by this project should be the ones making the final decision, and not a prime minister from Calgary,” Cullen said.

“In terms of our voices, I don’t know if it’s in the hearing or in the general discourse of our country, that’s what they want you to do, they want young people to turn away, they want people to say that none of this matters, it’s all very cynical. I am committed to not allow myself to feel that cynicism and just double down in our efforts. It’s about a pipeline, but it’s about so much more. It’s about whether we get to participate in the way our country functions. And we do and we will despite the Conservative view of the world might be.

“It’s a question that everyone who wants to participate will answer for themselves. I think the nature of the forum will change, [now] it’s a way to connect with neighbour with neighbour.”

Government move has “utterly destroyed” JRP, no excuse to wait for final report on Gateway, Cullen says

MP Nathan Cullen makes a point during an NDP leadership campaign stop in Kitimat, Nov. 11. 2011 (Robin Rowland/Northwest Coast Energy News)

The Northern Gateway Joint Review process has been “utterly destroyed” by the Conservative government, Skeena Bulkley Valley NDP MP Nathan Cullen told reporters Friday, April 20, adding a warning those who were waiting for the JRP to complete its hearings before making up their minds, “all those people like the premier and others who said there’s a good process in place, that excuse has been ripped away.”

Earlier that week, Natural Resources Minister Joe Oliver announced that the government that would introduce legislation to “streamline” the review process for major resource developments that would include such provisions as limiting the time and the number of participants and allowing the cabinet to overrule any decision or recommendation from the National Energy Board.

Cullen, who was just named Opposition House Leader, was holding his regular conference call with northwest BC reporters.

He called the changes proposed by the Conservative government for environmental assessment, ”brutal,” adding, “the already weakened rules have become fundamentally more weak.” He said it seems that the government is going to further weaken the role of the Department of Fisheries and Oceans in checking environmental impacts.

The bill, which has yet to be tabled in the Commons, will download federal responsibility for the environment to the provinces, which Cullen said could be subject to a constitutional challenge.

On the controversial Enbridge Northern Gateway project, which would see twin bitumen and condensate pipelines from Alberta to Kitimat, Cullen said, while the government’s Northern Gateway policy was not mentioned in the news conference or briefing documents, it was buried deep on the website and that indicated “it will not be up to the NEB anymore, they will retroactively apply these new rules it will now become a purely political decision. The prime minister, with all his wisdom, is going to make the final decision on the pipeline, totally undermining the process we are in now across the region.”

(The key bureaucratic phrase actually reads: “Establish clearer accountability for decisions on major pipeline projects in the national interest by giving government authority to make the “go/no go” decisions, based on the recommendations of the National Energy Board.” )

Cullen said he is already hearing that people in the northwest are frustrated and angry by the announcement. “They feel that they’ve been duped and the credibility of the panel has been destroyed by this government. And so all those people like the premier, who said the process was what they were waiting for, that process has now been utterly, utterly, destroyed.”

Cullen was inferring any decision to support or oppose the pipeline is now back in the courts of BC Premier Christy Clark and groups like District of Kitimat Council and Terrace Chamber of Commerce who have, up until now, remained neutral, waiting for the final report from the Joint Review Panel.

The Terrace Chamber of Commerce, for example, said:

We want the objective panel of experts to assess the concerns of affected parties and contrast them with procedures and equipment being positioned to mitigate any and all perceived risks. It is important that all voices are heard and all questions are asked and answered.

“The process was always threatened, a lot of people suspected that Stephen Harper would not accept a ‘no’ when it comes to this pipeline and now that’s been made explicit. And all those people like the premier and others who said there’s a good process in place that excuse has been ripped away,” Cullen said.

Cullen said he believes that people should still participate in the hearings but the panel now has to justify its existence.

“At the same time.“ Cullen said, “the government has shut down the oil response group in Vancouver and moved it 5,000 kilometres to Quebec, they’ve cut funding on our ability to protect the coast, even after the auditor general has pointed out that the current ability to protect our waters is lacking, so it looks that they are going to do everything and anything to approve this pipeline and put at risk so much of what we care about. It’s a shame but I don’t think it will lessen the resolve of people.”

Cullen called Joe Oliver’s statement that there would be more money for enforcement of environmental regulations a “shell game.”

“They cut they cut $80 million and put back $13 million and tried to pretend that’s an increase.
There is less protection for our ocean environment. At the same time, they’re pushing two major pipelines to the west coast and increasing the risk dramatically. Shutting down the operations in Vancouver, while trying to put a pipeline right into Vancouver, smacks of some sort of hypocrisy or arrogance. I mean they’re claiming budget cuts, but the prime minister is spending more on is own office, and they’re not making a single dollar cut to the F-35, which are in the billions. It’s peanuts they’re pretending to save here and it’s putting very important things at risk in our oceans.”

He expects the bill changing the rules for resource development to be introduced next week. But, Cullen added, that it is clear that government has been planning this for sometime, a fact that further undermines the credibility of the Northern Gateway Joint Review Panel. “What the government has just said is, ‘We simply don’t care. We’ve already made up our minds before hearing any testimony.’ I think they’ve made up their minds in advance of this but now it’s obvious that it was always true. You don’t put legislation like this together in a week. The bill that they are going to introduce and the press conference they had last weekend were months in the making. I know how Ottawa works. This has been around for a long time and they knew this for a long time. It’s entirely cynical.”

He expects the government will try and ram the legislation through the House and one of his jobs as NDP and Opposition House leader will be to slow it down.

“I think the very cynical anti-democratic move by the government is only going to increase the number of Canadians that will be opposed to this. So getting the message out specifically, getting people rallied around this cause and letting the government know they’re not going to steamroll us…. Continuing to try to bully us into submission is about the dumbest tactic imaginable, but I guess that’s the only one available to them. If the only tool you have the toolbox is a hammer, I guess every problem is a nail.

“Fundamentally this is a question of trust, do we trust that this government will protect the environment when it comes to oil and gas projects? And I can’t imagine an oil pipeline that Steven Harper doesn’t love. Maybe if the project went right through his living room, he may have some questions about it, but outside of that, there isn’t been a single thing that the oil industry has wanted from this government that they haven’t got, not one thing. So do you trust them to protect fisheries, do you expect them to protect us from oil spills? The answer has got to be no.”

Apache posts job for Kitimat LNG construction manager

The Apache Corporation website has a posting for a construction manager for the Kitimat LNG project.

The posting says the job will initially based in Houston, Texas, with the manager coming to Kitimat sometime in the future.

The posting calls for the manager to provide an overall construction plan, co-ordinate and control the construction project from inception to completion aimed at meeting the Project’s requirements in order to produce a functionally and financially viable safe project that will be completed on time within the authorized budget and to the required quality standards.

Some of the job requirements give hints of the project to come:

Previous LNG Project experience including construction
Experience of modular and stick built construction
Working knowledge of safety system and management to maintain world class safety performance
Working knowledge environment system and management to maintain world class environmental performance
Knowledge of logistics in remote sites
Knowledge of heavy haul and lift works
Proven ability with advanced project management principles
Proven ability with people management
Experience in Canadian labor law and have deep experience working with unionized labor
Experience in working through cold weather climates

The site also has a posting for a Contracts and Procurement Manager.

Both postings expire on May 2, 2012.

Although Apache and its partners, Encana and EOG Resources now say that they have postponed the final go-ahead decision on the KM LNG project until the fourth quarter of 2012, as negotiations continue with Asian natural gas customers, the postings are indication that the project is progressing.

Kinder Morgan announces plans to increase capacity of Trans Mountain pipeline to Vancouver

Trans Mountain pipelne — The Trans Mountain Pipeline (Kinder Morgan)

Kinder Morgan, of Houston, Texas, said Thursday, April 12, 2012, it plans to proceed with expansion of the Trans Mountain pipeline system from Alberta to the BC Lower Mainland. The company made the announcement after what the energy industry calls an “open season,” a search for customers where it received “strong binding commitments” from existing and new shippers. They pledged commercial support to an additional 660,000 barrels per day of bitumen sands crude from the pipeline. Demand has been high and reports say Kinder Morgan has had to ration petroleum products for its existing customers.

The 20 year commitment from the customers means the pipeline capacity would increase to 850,000 barrels per day from 550,000 barrels. That would make the eventual capacity of the Kinder Morgan pipeline much larger than Enbridge Northern Gateway’s proposed 525,000 barrels per day.

In a release, Ian Anderson, president of Kinder Morgan Canada said, “We are extremely pleased with the strong commercial support that we received through the open season, which reinforces the appeal of our project and our approach. This strong commercial support shows the market’s enthusiasm for expanding market access for Canadian crude by expanding an existing system.”

Now Kinder Morgan has to get approval from the National Energy Board and acceptance from the local communities along the pipeline route from the Alberta bitumen sands to the terminals and refineries in Vancouver and in Washington state and for tanker export.

“This support from the market better defines the project and enables Kinder Morgan Canada to fully engage the local communities. We are still early in the engagement process of the project,” Anderson said in the release. “We share respectful, open relationships with many communities and organizations interested in our business. We are committed to an 18 to 24 month inclusive, extensive and thorough engagement on all aspects of the project with local communities along the proposed route and marine corridor, including First Nations and Aboriginal groups, environmental organizations and all other interested parties. We will also consider providing financial support to local communities for environmental initiatives. We have been planning for this day for many years and we are keen to start in depth engagement this summer.”

Kinder Morgan says the preliminary scope of the proposed project includes:

Projected capital cost of approximately $5 billion.
Twinning the existing pipeline within the existing right-of-way, where possible.
Adding new pump stations along the route.
Increasing the number of storage tanks at existing facilities.
Expanding the Westridge Marine Terminal.

Anderson added, “We anticipate filing a facilities application initiating a regulatory review with the National Energy Board in 2014. If our application is approved, construction is currently forecast to commence in 2016 with the proposed project operating by 2017.”

In addition to extensive engagement, the company will conduct traditional land use and environmental and socio-economic studies, and undertake detailed engineering and design studies, the release says.

The Trans Mountain proposal, like the Enbridge Northern Gateway pipeline is a “facilities application,” and one uncertainty facing the company will be the highly controversial decision by Stephen Harper’s Conservative government to speed up all future project applications of that type. Environmental groups have already expressed strong opposition to the speed up, while the energy industry has said faster application approval is long over due.

As well as the facilities application, Kinder Morgan says it will file “a commercial tolling application to review the company’s proposed commercial structure for the expansion. This filing, which is anticipated in summer 2012, will seek National Energy Board approval on how the company will charge its customers for transporting their product through the proposed expanded pipeline.”

Kinder Morgan says that for almost 60 years, the 1,150-km Trans Mountain pipeline system has been safely and efficiently providing the only west coast access for Canadian oil products, including about 90 percent of the gasoline supplied to the interior and south coast of British Columbia.

However, the continuing controversy over the Enbridge Northern Gateway and other pipeline projects, together with some accidents including the spill of 100,000 barrels of light crude near Abbotsford, has raised the profile of the Kinder Morgan line and therefore will likely bring more public scrutiny. Any increase in the capacity of the pipeline will also mean more tanker traffic in the already crowded waterways of the Vancouver harbour system and along the west coast.

Last June, Kinder Morgan also proposed the building of second pipeline from the bitumen sands to the west coast, roughly following the route of the Northern Gateway pipeline to Kitimat. There was no mention of that project in today’s announcement.

Reports say Shell near deal for Kitimat LNG project, as Oliver approves the BC LNG

The Minister of Natural Resources, Joe Oliver, has confirmed the approval of the 20 year export licence for the BC LNG Export Cooperative. The National Energy Board had approved the licence in February.

Earlier the government had also approved the export for the KM LNG project.

In a statement, Oliver said, “This export licence is another example of our Government’s commitment to diversifying our energy export markets and strengthening our trading partnership with Asia. Canada is a safe, responsible, and reliable supplier of energy contributing to global energy security.”

“Canada is well positioned to grow as a global energy superpower. Projects such as this will show the world that we are serious about getting our energy resources to market.”

The liquefied natural gas facility would be located on the west bank of the Douglas Channel at small cove near Kitimat. BC LNG Export Co-operative intends to ship up to 1.8 million tonnes of liquefied natural gas annually to markets in Asia.

Natural gas would be transported to the proposed Douglas Channel terminal on the existing Pacific Northern Gas Pipeline and potentially on the proposed Pacific Trail Pipeline. The proposed liquefied natural gas facility is undergoing an environmental assessment in accordance with the Canadian Environmental Assessment Act. The initial phase of the facility is expected to be in operation by late 2013 or early 2014 and, if it proceeds, would represent the very first liquefied natural gas exports from Canada.

Meanwhile, Reuters quoting the Japanese Nikkei, reported that Royal Dutch Shell together with Mitsubishi Corp, China National Petroleum Corp and Korea Gas Corp are in the final stages of negotiations to build a US$12.35-billion liquefied natural gas (LNG) terminal at Kitimat.
The companies will ship gas from their Canadian fields for the project and expect to begin production around 2020 at an annual rate of 12 million tons, Nikkei reported.

Nikkei said a broad agreement is expected as early as this month, after which the four companies will start seeking approval for the project.

Shell brought the old Methanex site and marine terminal in Kitimat last fall.