Tag: Liquified Natural Gas

Haisla outline conditions, concerns for Northern Gateway project

Haisla NationIn its extensive document filed with the Northern Gateway Joint Review panel, the Haisla Nation emphasize their opposition to the project.

However, the Haisla are anticipating that the project will be approved and  therefore submitted a lengthy series of conditions for that project, should it be imposed on the northwest by the federal government.

Nevertheless, if the project were to be approved AFTER the Crown meaningfully consulted and accommodated the Haisla Nation with respect to the impacts of the proposed project on its aboriginal title and rights, and if that consultation were meaningful yet did not result in changes to the proposed project, the following conditions would, at a minimum, have to be attached to the project.

 

1. Conditions Precedent: The following conditions precedent should be met prior to any field investigations, pre-construction activities or construction activities as well as during and subsequent to such investigations or activities. These conditions are necessary to ensure that potential effects of the project can be avoided or mitigated to reduce the likelihood of habitat damage or destruction:

Comprehensive seasonal water quality monitoring throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel that account for seasonal variations in flow, tidal cycles, snowmelt, rainfall, etc.

Parameters for measurement would be have to be agreed upon by the
Haisla Nation prior to certification of the project;

Comprehensive seasonal fisheries surveys of fish habitat utilization  throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel that account for where species and life stages are at different times of the year and accurately define sensitive habitats;

Comprehensive seasonal wildlife and bird surveys of habitat utilization throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel that account for where species and life stages are at different times of the year and accurately define sensitive habitats;

Comprehensive seasonal vegetation surveys of habitat utilization throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel that accounts for the distribution of species and life stages at different times of the year and accurately define sensitive habitats;

Development of comprehensive spill response capability based on a realistic assessment of spill containment, spill response and spill capacity requirements throughout the Kitimat River Valley, Kitmat Arm and Douglas Channel. The Haisla Nation’s past experience has shown that relying onpromises is not good enough. This spill response capability must be demonstrated prior to project approval;

Verification that the proposed project would result in real benefits, economic or otherwise, that would flow to the Haisla Nation, to other First Nations, and to British Columbia.

Whenever any field investigations or activities are proposed, the proposal or permit application would have to include the following environmental protections:

Soil and erosion control plans;

Surface water management and treatment plans;

Groundwater monitoring plans;

Control and storage plans for fuels, lubricants and other potential contaminants;

Equipment deployment, access and use plans;

Habitat reclamation of disturbed or cleared areas.

Prior to any pre-construction or construction activities the following detailed studies would have to be undertaken and provided to the Haisla Nation for review and approval, to ensure that the best design and construction approaches are being used, so that potential effects of the project can be avoided or mitigated to reduce the likelihood of habitat damage or destruction:

Detailed analysis of terrain stability and slide potential throughout the pipeline corridor and at the storage tank and terminal site;

Detailed engineering design to mitigate seismic risk and local weather extremes;

.Development of pipeline integrity specifications and procedures including
best practices for leak detection;

Development of storage tank integrity specifications and maintenance and monitoring procedures;

Assessment of spill containment, spill response and spill capacity requirements throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel;

.Development of detailed tanker acceptance program specifications and
procedures;

Development of detailed tanker and tug traffic management specifications and procedures;

Development of detailed port management specifications and procedures including operating limits for tanker operation, movement and docking.

2. Ongoing Consultation: A commitment to ongoing consultation with and accommodation of the Haisla Nation on all of the activities set out above.

3. Ongoing process for variance, waiver or discharge of conditions: A commitment to ongoing meaningful involvement of the Haisla Nation by the National Energy Board prior to any decision on any changes to or sign off on conditions and commitments to any certificate that is issued.

4. Third Party Oversight of Construction: A requirement that NorthernGateway fund a third party oversight committee, which should include a Haisla Nation representative, to monitor certificate compliance during construction of the marine terminal and the pipeline. This committee would have the ability to monitor and inspect construction and should be provided with copies of allcompliance documents submitted by Northern Gateway to the National Energy Board.

5. Operational Conditions: A number of operational conditions should beincorporated into the certificate, including but not limited to:

The requirement to monitor terrain along the pipeline so that breaches based on earth movements can be anticipated and prevented;

The requirement to implement automatic pipeline shutdown whenever a leak detection alarm occurs;

Conditions on the disposal of any contamination that must be removed as a result of an accident or malfunction resulting in a spill that will minimize additional habitat destruction and maximize the potential for regeneration of habitat and resources damaged by the spill;

Parameters for terminal and tanker operations (including standards for tankers allowed to transport cargo; tanker inspection requirements and schedules; escort tug specifications, standards, maintenance and inspection; pilotage protocols and procedures; environmental conditions and operating limits; etc.) as well as other parameters set out in and reliedon for the TERMPOL review to become conditions of any certificate issued by the National Energy Board, with a provision that the Haisla Nation’s approval of any changes to these conditions is required.

Answering the questions from Enbridge Northern Gateway, the Haisla also outline a long series of concerns.

1. Physical and Jurisdictional Impacts

1.1 Construction

The Haisla Nation is concerned about the direct physical and jurisdictional impacts that the construction of the proposed project will have. These concerns are set out for each of the marine terminal, the pipeline, and tanker traffic, below:

Marine Terminal:

a. The proposed marine terminal will require the alienation of 220-275
hectares (554-680 acres) of land from Haisla Nation Territory, land
to which the Haisla Nation claims aboriginal title.

b. The terminal will require the additional alienation of land for
ancillary infrastructure and development, including:

i. road upgrades,

ii. perimeter access roads and roads within the terminal area,

iii. a potential public bypass road,

iv. an impoundment reservoir,

v. a disposal site for excess cut material outside the terminal
area,

vi. a new 10km long transmission powerline, and

vii. a 100-m waterlot with a 150-m “safety zone”.

c. The terminal proposes to use Haisla Nation aboriginal title land,
including foreshore and waters, in a way that is inconsistent with
Haisla Nation stewardship of its lands, waters and resources and
with the Haisla Nation’s own aspirations for the use of this land.
Since aboriginal title is a constitutionally protected right to use the
aboriginal title land for the purposes the Haisla Nation sees fit, this
adverse use would fundamentally infringe the aboriginal title of the
Haisla Nation.

d. The terminal will require the destruction and removal of
documented culturally modified trees, some with modifications
dating back to 1754. These culturally modified trees are living
monuments to the history of the Haisla people.

e. The terminal will expose two Haisla Nation cultural heritage sites to
increased risk of vandalism and chemical weathering.

f. The terminal will result in the direct loss of 4.85 hectares (11.98
acres) of freshwater fish habitat (harmful alteration, disruption or
destruction (HADD) under the Fisheries Act).

g. The terminal will require dredging, underwater blasting, and
placement of piles and berthing foundations, resulting in an as yet
un-quantified loss of intertidal and subtidal marine habitat.

Pipeline:

a. The proposed pipeline construction right-of-way will require the
alienation of 9,200 hectares (22,734 acres) of Haisla Nation
Territory – land to which the Haisla Nation claims aboriginal title –
and will put this land to a use that is inconsistent with Haisla Nation
stewardship of its lands, waters and resources and with the Haisla
Nation’s own aspirations for the use of this land.

b. The pipeline will require 127 watercourse crossings in Haisla Nation
Territory. Seven of these are categorized as high risk, 5 as
medium high risk, and 7 are medium or medium low risk for harmful
alternation, disruption or destruction (HADD) of fish habitat. This
risk is just from pipeline construction and does not address the
issue of spills.

c. The pipeline is estimated to result in temporary or permanent
destruction of freshwater fish habitat of 3.1 hectares (7.68 acres) in
Haisla Nation Territory.

d. The pipeline will require the clearing of land and vegetation and the
destruction of wetlands. The extent of this is yet to be quantified.

Tanker Traffic:

a. Although Northern Gateway has not made any submission on this
point, it is clear that having adequate spill response capability at
Kitimat will require additional infrastructure upgrades in and around
Kitimat, as well as potential spill response equipment cache sites.
None of this has been considered or addressed in Northern
Gateway’s application material – as such the material is
incomplete.

b. The construction for this additional infrastructure could result
impacts to ecosystems, plants, wildlife and fish, and in additional
HADD or fish mortality from accidents.

All of the land alienations required for the proposed project would profoundly
infringe Haisla Nation aboriginal title which is, in effect, a constitutionally
protected ownership right. The proposed project would use Haisla Nation
aboriginal title land in a way that is inconsistent with Haisla Nation stewardship of
its lands, waters and resources and with the Haisla Nation’s own aspirations for
the use of this land. Since aboriginal title is a constitutionally protected right to
use the aboriginal title land for the purposes the Haisla Nation sees fit, this
adverse use would fundamentally infringe the aboriginal title of the Haisla Nation.

The Haisla Nation is also concerned about the socio-economic and health
impacts of the proposed project. Northern Gateway has yet to file its Human
Health and Ecological Risk Assessment. Further, the socio-economic impact
analysis submitted as part of the application provides only a limited assessment
of the potential impacts of the project on the Haisla Nation at a socio-economic
level.

Haisla Nation society and economy must be understood within the cultural
context of a people who have lived off the lands, waters and resources of their
Territory since long before European arrival. To limit a socio-economic impact
assessment to direct impacts and to ignore consequential impacts flowing from
those impacts fails to capture the potential impacts of the proposed project on the
Haisla Nation at a socio-economic level.

1.2 Operation

The proposed marine terminal, pipeline corridor and shipping lanes will be
located in highly sensitive habitats for fish, wildlife and plants. Any accident of
malfunction at the wrong time in the wrong place can be devastating ecologically.
The Haisla Nation has identified the following concerns relating to physical
impacts from the operation of the proposed project:

Marine Terminal:

a. Intertidal and subtidal marine habitat impacts as a result of marine
vessels.
b. The likelihood of spills from the marine terminal as a result of operational
mistakes or geohazards.

c. The effects and consequences of a spill from the marine terminal. This
includes impacts on the terrestrial and intertidal and subtidal marine
environment and fish, marine mammals, birds, and other wildlife, as well
as impacts on Haisla Nation culture and cultural heritage that could result
from such impacts.

d. Response to a spill from the marine terminal, including concerns about
spill response knowledge, planning and capability, as well as impacts
flowing from response measures themselves.

Pipeline:

a. The likelihood of spills from the pipeline as a result of pipeline failure,
resulting from inherent pipeline integrity issues or external risks to pipeline
integrity, such as geohazards.

b. The effects and consequences of a spill from the pipelines. This includes
impacts on the terrestrial environment and freshwater environment, and
on plants, fish, birds, and other wildlife, as well as impacts on Haisla
Nation culture and cultural heritage that could result from such impacts.

c. Response to a spill from the pipelines, including concerns about spill
response knowledge, planning and capability, as well as impacts flowing
from response measures themselves.

Tanker Traffic:

a. Increased vessel traffic in waters used by Haisla Nation members for
commercial fishing and for traditional fishing, hunting and food gathering.

b. The likelihood of spills, including condensate, diluted bitumen, synthetic
crude, and bunker C fuel and other service fuels, from the tankers at sea
and at the marine terminal.

c. The effects and consequences of a spill. This includes impacts on the
marine environment and fish, marine mammals, birds, and other wildlife,
as well as impacts on Haisla Nation culture and cultural heritage that could
result from such impacts.

d. Response to a spill, including concerns about spill response knowledge,
planning and capability, as well as impacts flowing from response
measures themselves.

e. Potential releases of bilge water, with concerns about oily product and
foreign organisms.
These issues are important. They go to the very heart of Haisla Nation culture.
They go to the Haisla Nation relationship with the lands, waters, and resources of
its Territory. A major spill from the pipeline at the marine terminal or from a
tanker threatens to sever us from or damage our lifestyle built on harvesting and
gathering seafood and resources throughout our Territory.

Northern Gateway proposes a pipeline across numerous tributaries to the Kitimat
River. A spill into these watercourses is likely to eventually occur. The evidence
before the Panel shows that pipeline leaks or spills occur with depressing
regularity.

One of Enbridge’s own experiences, when it dumped 3,785,400 liters of diluted
bitumen into the Kalamazoo River, shows that the concern of a spill is real and
not hypothetical. A thorough understanding of this incident is critical to the
current environmental assessment since diluted bitumen is what Northern
Gateway proposes to transport. However, nothing was provided in the application
materials to address the scope of impact, the level of effort required for cleanup
and the prolonged effort required to restore the river. An analysis of this incident
would provide a basis for determining what should be in place to maintain
pipeline integrity as well as what should be in place locally to respond to any spill.

The Kalamazoo spill was aggravated by an inability to detect the spill, by an
inability to respond quickly and effectively, and by an inability to predict the fate
of the diluted bitumen in the environment. As a result, the Kalamazoo River has
suffered significant environmental damage. The long-term cumulative
environmental damage from this spill is yet to be determined.

Further, the Haisla Nation is also concerned about health impacts of the
proposed project and awaits the Human Health and Ecological Risk Assessment
which Northern Gateway has promised to provide.

1.3 Decommissioning

Northern Gateway has not provided information on decommissioning that is detailed enough to allow the Haisla Nation to set out all its concerns about the potential impacts from decommissioning at this point in time. This is not good enough. The Haisla Nation needs to know how Northern Gateway proposes to undertake decommissioning, what the impacts will be, and that there will be financial security in place to ensure this is done properly.

2. Lack of Consultation

 

Broadly, the Haisla Nation has concerns about all three physical aspects of the
proposed project – the pipeline, the marine terminal and tanker traffic – during all
three phases of the project – construction, operation and decommissioning.
These concerns have not been captured or addressed by Northern Gateway’s
proposed mitigation. The Haisla Nation acknowledges that a number of these
concerns can only be addressed through meaningful consultation with the
Crown. The Haisla Nation has therefore repeatedly asked federal decision-
makers to commit to the joint development of a meaningful consultation process
with the Haisla Nation. The federal Crown decision-makers have made it very
clear that they have no intention of meeting with the Haisla Nation until the Joint
Review Panel’s review of the proposed project is complete.

The federal Crown has also stated that it is relying on consultation by NorthernGateway to the extent possible. The federal Crown has failed to provide anyclarity, however, about what procedural aspects of consultation it has delegated to Northern Gateway. Northern Gateway has not consulted with the Haisla Nation and has not advised the Haisla Nation that Canada has delegated any aspects of the consultation process.

The Haisla Nation asserts aboriginal title to its Territory. Since the essence of

aboriginal title is the right of the aboriginal title holder to use land according to its
own discretion, Haisla Nation aboriginal title entails a constitutionally protected
ability of the Haisla Nation to make decisions concerning land and resource use
within Haisla Nation Territory. Any government decision concerning lands,
waters, and resource use within Haisla Nation Territory that conflicts with a
Haisla lands, waters or resources use decision is only valid to the extent that the
government can justify this infringement of Haisla Nation aboriginal title.

The Supreme Court of Canada has established that infringements of aboriginal
title can only be justified if there has been, in the case of relatively minor
infringements, consultation with the First Nation. Most infringements will require
something much deeper than consultation if the infringement is to be justified.
The Supreme Court has noted that in certain circumstances the consent of the
aboriginal nation may be required. Further, compensation will ordinarily be
required if an infringement of aboriginal title is to be justified [Delgamuukw].

The Haisla Nation has a chosen use for the proposed terminal site. This land
was selected in the Haisla Nation’s treaty land offer submitted to British Columbia
and Canada in 2005, as part of the BC Treaty Negotiation process, as lands
earmarked for Haisla Nation economic development.

The Haisla Nation has had discussions with the provincial Crown seeking to
acquire these lands for economic development purposes for a liquefied natural
gas project. The Haisla Nation has had discussions with potential partners about
locating a liquefied natural gas facility on the site that Northern Gateway
proposes to acquire for the marine terminal. The Haisla Nation sees these lands
as appropriate for a liquefied natural gas project as such a project is not nearly
as detrimental to the environment as a diluted bitumen export project. This use,
therefore, is far more compatible with Haisla Nation stewardship of its lands,
waters and resources.

By proposing to use Haisla Nation aboriginal title land in a manner that is
inconsistent with Haisla Nation stewardship of its lands, waters and resources,
and that interferes with the Haisla Nation’s own proposed reasonable economic
development aspirations for the land, the proposed project would result in a
fundamental breach of the Haisla Nation’s constitutionally protected aboriginal
title.

Similarly, Haisla Nation aboriginal rights are constitutionally protected rights to
engage in certain activities (e.g. hunting, fishing, gathering) within Haisla Nation
Territory. Government decisions that infringe Haisla Nation aboriginal rights will
be illegal unless the Crown can meet the stringent test for justifying an
infringement.
Main story Haisla Nation confirms it opposes Northern Gateway, demands Ottawa veto Enbridge pipeline; First Nation also outlines “minimum conditions” if Ottawa approves the project

Haisla Nation Response to NGP Information Request  (pdf)

Haisla Nation confirms it opposes Northern Gateway, demands Ottawa veto Enbridge pipeline; First Nation also outlines “minimum conditions” if Ottawa approves the project

Haisla NationThe Haisla Nation has confirmed in a filing with the Northern Gateway Joint Review Panel that it opposes the Enbridge Northern Gateway project.

The document, filed June 29, 2012, is one of the most significant filed with the JRP during all the years of the debate over the controversial Northern Gateway, setting out a three stage process that will govern, whether Enbridge or the federal government like it or not, the future of the Northern Gateway pipeline project.

First, the Haisla Nation affirms that it opposes the Northern Gateway project

Second, the Haisla Nation is demanding that the federal government, in recognition of aboriginal rights and title, reject the Northern Gateway project on Haisla traditional territory.

Third, probably anticipating that Stephen Harper and his government will attempt to force the Northern Gateway on British Columbia, the Haisla are demanding meaningful consultation and set out a stringent set of minimum conditions for the project on Haisla traditional territory.

The Haisla Nation’s lawyers filed the document today late today, June 29, in response to a series of questions posed to the First Nation by Enbridge through the Joint Review process.

The Haisla also say that there already projects that are better suited to their traditional territory, the liquified natural gas projects.

The Haisla position that Ottawa must reject the pipeline if First Nations oppose it is the opening round in the constitutional battle over not just the pipeline, but entire question of aboriginal rights and title. So far the government of Stephen Harper has said that First Nations do not have a “veto” on the pipeline and terminal project.

The Haisla also refuse to answer questions that Enbridge posed on the liquified natural gas projects because the filing argues, the questions are beyond the scope of the current Joint Review inquiry.

Detailed excerpts

Haisla outline where they believe Enbridge Gateway plans are inadequate

Haisla outline conditions, concerns for Northern Gateway project

 

 

Why the Haisla oppose Northern Gateway

In the filing with the Joint Review panel, the Haisla outline nine reasons for opposition to the Northern Gateway project:

1. Northern Gateway is proposing to site its project in a location that places at risk the ecological integrity of a large portion and significant aspects of Haisla Nation Territory and resources.

2. All three aspects of the proposed project – the pipelines, the marine terminal and tankers – have the potential to impact Haisla Nation lands, waters and resources.

3. Northern Gateway has neither conducted sufficient due diligence nor provided sufficient information with respect to the assessment of a number of critical aspects of the proposed project, including but not limited to project design, impacts, risks, accidents and malfunctions, spill response, potential spill consequences and the extent, degree and duration of any significant adverse environmental effects.

4. There are significant risks of spills of diluted bitumen, synthetic crude, and condensate from corrosion, landslide hazards, seismic events along the pipeline route and at the terminal site; as well asloss of cargo or service fuels from tanker accidents, with no realistic plan provided for spill containment, cleanup, habitat restoration or regeneration of species dependent on the affected habitat.

5. Diluted bitumen, synthetic crude and condensate are all highly toxic to the environment and living systems and the consequences and effects of a spill could be devastating on the resources that support the Haisla Nation way of life, and would therefore have significant adverse effects on Haisla Nation culture and cultural heritage and aboriginal rights.

6. Risk assessments and technology have not overcome the potential for human error, wherein it is well established that 80% of oil tanker accidents that cause oil spills at sea are a result of human errors: badly handled manoeuvres, neglected maintenance, insufficient checking of systems, lack of communication between crew members, fatigue, or an inadequate response to a minor incident
causing it to escalate into a major accident often resulting in groundings and collisions (http://www.black-tides.com/uk/source/oil-tanker-accidents/causes-accidents.php). It has also become increasingly obvious that maintenance of pipeline integrity and the remote detection of pipeline ruptures is inadequate as exemplified by major environmental damage from recent pipeline ruptures in Michigan and Alberta.

7. The proposed project requires the alienation of Haisla Nation aboriginal title land, and the federal government has refused to engage in consultation with the Haisla Nation about the potential impacts of the proposed project on Haisla Nation aboriginal rights, including aboriginal title.

8. The proposed project would require the use of Haisla Nation aboriginal title land for a purpose that is inconsistent with Haisla Nation stewardship principles and with the Haisla Nation’s own aspirations for this land.

9. For the reasons set out above, the proposed project would constitute an unjustified infringement of Haisla Nation aboriginal title and rights. It would therefore be illegal for the Crown to authorize the project.

Canada is obliged to decline approval of the project

Up until now, the federal government has refused to engage First Nations in the northwestern region over the issue of the Northern Gateway pipeline and terminal, saying that the constitutionally mandated consultation will take place after the Joint Review Panel has released its report. However, the government’s Bill C-38, which gives the federal cabinet (actually the prime minister) the power to decide the pipeline means that the JRP report will be less significant than it would have been before the Conservatives gained a majority government in May, 2010.

The Haisla say the nation has “repeatedly requested early engagement by federal government decision-makers to develop, together with the Haisla Nation, a meaningful process for consultation and accommodation in relation to the proposed project.”

The filing says JRP and “the federal government’s ‘Aboriginal Consultation Framework’ have been imposed on the Haisla Nation and other First Nations, with significant aspects of the concerns expressed by the Haisla Nation about this approach being ignored.”

The Haisla says it “continues to seek a commitment from the federal government to the joint development of a meaningful process to assess the proposed project and its potential impacts on Haisla Nation aboriginal rights, including aboriginal title.”

Later in the filing the Haisla say:

The Haisla Nation has…  repeatedly asked federal decision-makers to commit to the joint development of a meaningful consultation process with the Haisla Nation. The federal Crown decision-makers have made it very clear that they have no intention of meeting with the Haisla Nation until the Joint Review Panel’s review of the proposed project is complete…

The federal Crown has failed to provide any clarity, however, about what procedural aspects of consultation it has delegated to Northern Gateway. Northern Gateway has not consulted with the Haisla Nation and has not advised the Haisla Nation that Canada has delegated any aspects of the consultation process.

The Haisla then go on to say:

Canada is legally required to work with the Haisla Nation to develop and follow such a process. If the process establishes that the approval of the proposed project would constitute an unjustified infringement of Haisla Nation aboriginal rights or aboriginal title, then Canada would be legally obliged to decline approval.

Deficiencies and Conditions

Enbridge asked the Haisla that if there are conditions of approval that would nonetheless
address, in whole or in part, the Nation’s concerns; and then asked for details “on the nature of any conditions that the Haisla Nation would suggest be imposed on the Project, should it be approved.”

The Haisla reply that because there are “significant deficiencies in the evidence provided by Northern Gateway to date.” The nation goes on to say that “the acknowledged risks that have not been adequately addressed in the proposed project.” The Haisla Nation then says it “does not foresee any conditions that could be attached to the project as currently conceived and presented that would eliminate the Haisla Nation’s concerns.”

The Haisla then repeat that Enbridge has not provided sufficient information so that

it is difficult for the Haisla Nation to identify conditions to attach to the proposed project as it is still trying to fully understand the potential impacts of the project and the proposed mitigation. This is primarily because there is insufficient information provided by Northern Gateway in its application material.

Although we have attempted to elicit additional information through the JRP’s information request process, Northern Gateway has not provide adequate and complete answers to the questions posed.

The Haisla then anticipate that Stephen Harper will force the pipeline and terminal on British Columbia and say:

Nevertheless, if the project were to be approved AFTER the Crown meaningfully
consulted and accommodated the Haisla Nation with respect to the impacts of
the proposed project on its aboriginal title and rights, and if that consultation were
meaningful yet did not result in changes to the proposed project, the following
conditions would, at a minimum, have to be attached to the project.

The emphasis of the word “after” is in the original document.

The document that then goes on to present an extensive list of list of conditions the Haisla believe should be imposed on the Enbridge Northern Gateway if the project goes ahead.

The conditions include comprehensive monitoring of water quality, fisheries, wildlife and birds, vegetation throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel; development of comprehensive spill response capability throughout the Kitimat River Valley, Kitmat Arm and Douglas Channel.

The Haisla also want soil and erosion control plans; water management plans; control and storage plans for fuels, lubricants and other potential contaminants; detailed plans for equipment deployment and habitat reclamation of disturbed or cleared areas.

The Haisla also want much more detailed studies before any construction, including analysis of terrain stability and slide potential throughout the pipeline corridor and at the storage tank and terminal site; engineering designs to mitigate seismic risk and local weather extremes; development of pipeline integrity specifications and procedures including best practices for leak detection; storage tank integrity specifications, maintenance and monitoring; assessment of spill containment, spill response and spill capacity requirements throughout the Kitimat River watershed, Kitimat Arm and Douglas Channel.

On tankers the Haisla want more details beyond the plans already filed by Enbridge including
detailed tanker specifications, detailed tanker and tug traffic management procedures; detailed port management specifications and procedures including operating limits for tanker operation, movement and docking.

The Haisla are also demanding “on going consultation” on all issues involved by the National Energy Board prior to any decision on any changes to or sign off on conditions and commitments to any certificate that is issued.

The Haisla want an independent third party be part of a committee to oversee the construction proecess to monitor certificate compliance during construction of the marine terminal and the pipeline.

Once the pipeline and terminal operational, the Haisla want conditions imposed on the project that include ongoing monitoring of the terrain along the pipeline, a system that would automatically shut down the pipeline shutdown whenever a leak detection alarm occurs.

The Hasila want conditions “on the disposal of any contamination that must be removed as
a result of an accident or malfunction resulting in a spill that will minimize additional habitat destruction and maximize the potential for regeneration of habitat and resources damaged by the spill.”

As well as more detailed parameters for the tankers, tugs, and pilotage procedures, the Haisla want approval of any future changes in those procedures.

The Haisla are also concerned about the “alienation” of a large area of their traditional territory by the construction of the Northern Gateway project as well as the “additional infrastructure” required by adequate spill response capability and spill response equipment cache sites.

The Haisla say “all of the land alienations required for the proposed project would profoundly
infringe Haisla Nation aboriginal title which is, in effect, a constitutionally protected ownership right” and goes on to say “proposed project would use Haisla Nation aboriginal title land in a way that is inconsistent with Haisla Nation stewardship of its lands, waters and resources and with the Haisla Nation’s own aspirations for the use of this land.”

The Haisla filing then goes on to say:

Since aboriginal title is a constitutionally protected right to use the aboriginal title land for the purposes the Haisla Nation sees fit, this adverse use would fundamentally infringe the aboriginal title of the Haisla Nation.

The report also expresses concerns about the ongoing socio-economic affects of such a large project.

It concludes by saying:

These issues are important. They go to the very heart of Haisla Nation culture.
They go to the Haisla Nation relationship with the lands, waters, and resources of
its Territory. A major spill from the pipeline at the marine terminal or from a
tanker threatens to sever us from or damage our lifestyle built on harvesting and
gathering seafood and resources throughout our Territory.

Northern Gateway proposes a pipeline across numerous tributaries to the Kitimat
River. A spill into these watercourses is likely to eventually occur. The evidence
before the Panel shows that pipeline leaks or spills occur with depressing
regularity.

One of Enbridge’s own experiences, when it dumped 3,785,400 liters of diluted
bitumen into the Kalamazoo River, shows that the concern of a spill is real and
not hypothetical. A thorough understanding of this incident is critical to the
current environmental assessment since diluted bitumen is what Northern
Gateway proposes to transport. However, nothing was provided in the application
materials to address the scope of impact, the level of effort required for cleanup
and the prolonged effort required to restore the river. An analysis of this incident
would provide a basis for determining what should be in place to maintain
pipeline integrity as well as what should be in place locally to respond to any spill.

The Kalamazoo spill was aggravated by an inability to detect the spill, by an
inability to respond quickly and effectively, and by an inability to predict the fate
of the diluted bitumen in the environment. As a result, the Kalamazoo River has
suffered significant environmental damage. The long-term cumulative
environmental damage from this spill is yet to be determined.

Looking to the future, the Haisla are also asking for a plan for the eventual decommissioning of the project, pointing out that “ Northern Gateway has not provided information on decommissioning that is
detailed enough to allow the Haisla Nation to set out all its concerns about the
potential impacts from decommissioning at this point in time.”

Haisla leaders have already expressed concern about the legacy of the Eurocan paper plant. Now it tells Enbridge

This is not good enough. The Haisla Nation needs to know how Northern Gateway proposes to undertake decommissioning, what the impacts will be, and that there will be financial security in place to ensure this is done properly.

Asserts aboriginal title

The section of the report concludes by saying:

The Haisla Nation asserts aboriginal title to its Territory. Since the essence of
aboriginal title is the right of the aboriginal title holder to use land according to its
own discretion, Haisla Nation aboriginal title entails a constitutionally protected
ability of the Haisla Nation to make decisions concerning land and resource use
within Haisla Nation Territory. Any government decision concerning lands,
waters, and resource use within Haisla Nation Territory that conflicts with a
Haisla lands, waters or resources use decision is only valid to the extent that the
government can justify this infringement of Haisla Nation aboriginal title.

The Supreme Court of Canada has established that infringements of aboriginal
title can only be justified if there has been, in the case of relatively minor
infringements, consultation with the First Nation. Most infringements will require
something much deeper than consultation if the infringement is to be justified.
The Supreme Court has noted that in certain circumstances the consent of the
aboriginal nation may be required. Further, compensation will ordinarily be
required if an infringement of aboriginal title is to be justified [Delgamuukw].

The Haisla then go on to say that the preferred use of the land in question is for the liquified natural gas projects:

The Haisla Nation has a chosen use for the proposed terminal site. This land
was selected in the Haisla Nation’s treaty land offer submitted to British Columbia
and Canada in 2005, as part of the BC Treaty Negotiation process, as lands
earmarked for Haisla Nation economic development.

The Haisla Nation has had discussions with the provincial Crown seeking to
acquire these lands for economic development purposes for a liquefied natural
gas project. The Haisla Nation has had discussions with potential partners about
locating a liquefied natural gas facility on the site that Northern Gateway
proposes to acquire for the marine terminal. The Haisla Nation sees these lands
as appropriate for a liquefied natural gas project as such a project is not nearly
as detrimental to the environment as a diluted bitumen export project.

Northwest Coast Energy News is attempting to contact Enbridge Northern Gateway for comment on the Haisla filing. Response may be delayed by the Canada Day holiday.

 

Haisla Nation Response to NGP Information Request  (pdf)

The Enbridge Empire Strikes Back II: The Haisla “fishing expedition”

Kitamaat Village dock
The Kitamaat Village dock seen on June 27, 2012. Enbridge has filed questions asking the Haisla what they know about current vessel traffic on Douglas Channel. (Robin Rowland/Northwest Coast Energy News)

A series of questions filed by Enbridge Northern Gateway with the Joint Review Panel appear to be a “fishing expedition” to find out not only what the Haisla Nation feel about the Northern Gateway project but also seeks details of Haisla agreements with the various Kitimat liquified natural gas projects.

In its May filing, Enbridge asks the Haisla Nation 28 pages of questions, many of them political, and also try to find out the sources of funding the Haisla Nation is using for its participation in the Northern Gateway Joint Review process, questioning the credentials of the experts hired by the Haisla and are likely setting up the First Nation for Enbridge’s propaganda campaigns about current vessel traffic on the Douglas Channel.

( See: The Empire Strikes Back I: Enbridge takes on First Nations, small intervenors )

On May 11, Enbridge filed a series of questions with 24 intervenors and First Nations asking detailed questions not only about the technical issues raised by those groups but also their funding sources and their political actvity.

In its questions to the Haisla Nation, Enbridge asks a series of technical questions around the questions of “acceptable risk” and it appears, despite the fact Enbridge officials have listened to the Haisla official presentation at Kitamaat Village last January (and the speeches of Haisla members this week at the pubic comment hearings) that Enbridge is preparing to use a paper-based or Alberta-based concept of “acceptable risk,” as opposed to listening to the First Nation that will be most directly affected by any disaster in the Kitimat harbour or estuary.

The first questions Enbridge asks the Haisla Nation are blunt, and again, appear to contradict what Enbridge has been saying about First Nations agreeing to back the pipeline.

(a) Please confirm that the Haisla Nation opposes the approval of Northern Gateway’s Application for the Project.(b) If the Haisla Nation opposes the approval of the Application, please advise as to whether there are conditions of approval that would nonetheless address, in whole or in part, the Nation’s concerns.

(c) If so, please elaborate on the nature of any conditions that the Haisla Nation would suggest be imposed on the Project, should it be approved.

(d) Please summarize the effects that the Haisla Nation considers would be created by the Project, should it be approved and constructed. Include both positive and negative effects.

(e) Please describe the mitigation measures proposed by the Haisla Nation (if any) to reduce potentially adverse Project effects on the Haisla Nation’s rights and interests.

Another section of questions asks about the funding Haisla may or not be receiving.
The Haisla Nation has expressed the view that inadequate funding has been provided to participate in this proceeding.

Request:
(a) Please confirm that the Haisla Nation has received participant funding from the Canadian Environmental Assessment Agency to participate in this proceeding.
(b) Please advise as to the amount of participant funding received to date from the Canadian Environmental Assessment Agency.
(c) Please confirm that the Haisla Nation has received significant funding from the Northern Gateway Project for the purpose of preparing traditional use studies in relation to this Project.
(d) Please advise as to the amount of funding received by the Haisla Nation from any other external sources to participate in this proceeding, or otherwise oppose the Northern Gateway Project.
(e) Is the Haisla Nation a member of the Turning Point/Great Bear Initiative?
(f) Has the Haisla Nation received funding, directly or indirectly, from the Turning Point/Great Bear Initiative for the purpose of participating in this proceeding, or otherwise opposing the Northern Gateway Project? If so, how much funding was received?
(g) Has the Haisla Nation received funding from Tides Canada or any similar organization for the purpose of participating in this proceeding or otherwise opposing the Northern Gateway Project? If so, how much funding was received and from whom?
(h)Have any members of the Kitimaat Village Council received funding from Tides Canada or similar organizations to participate in this proceeding or to otherwise oppose the Northern Gateway Project, either directly or indirectly? If so, how much funding was received and by whom? Please include funding received by the Headwaters Initiative in this response.
(i) Are there agreements or understandings in place as between coastal First Nations whereby no
coastal First Nation will oppose LNG development supported by the Haisla First Nation, and no coastal First Nation, including the Haisla First Nation, will support the Northern Gateway Project?

Enbridge then goes on a fishing expedition to find out more about their agreements with the LNG projects.

Position Regarding LNG Projects 1.5
Reference:
(i)
Kitimat LNG, News Release, “Canada, BC, Join Haisla Nation and Kitimat LNG Partners in Marking
Project Go-Ahead; ‘A Very Big Day for Our People’ Says Chief Councillor Pollard” (9 March
2011)
online: Kitimat LNG
<http://mediacenter.kitimatlngfacility.com/Mediacenter/view_press_release.as
px?PressRelease.ItemID=2807>.
(ii) Dina O’Meara, “National regulator approves BC LNG export licence Co-operative
a partnership with Haisla First Nation”, The Calgary Herald (3 February 2012) online The Calgary Herald <http://www.calgaryherald.com/business/National+regulator+approves+export+
licence/6093310/story.html>.

Preamble:
Northern Gateway would like to confirm the Haisla Nation’s position with respect to certain liquefied
natural gas (“LNG”) projects.

Request: (a) Please confirm that the Haisla Nation supports construction and operation of the Kitimat LNG Project (also known as the KM LNG Project).
(b) Please confirm that Kitimat LNG holds an export licence to ship 200 million tonnes of LNG over  20 years from the Kitimat LNG Terminal, to be located at Bish Cove, near the Port of Kitimat, BC, to Pacific Rim markets by marine vessel.

(Note since the National Energy Board approved the export licence, and that is available on the NEB site, why is Enbridge asking the Haisla and the NEB to provide information that is so readily available?)


(c)Please provide copies of all environmental assessment studies, risk assessments, TERMPOL review studies and Aboriginal Traditional Knowledge (“ATK”) studies pertaining to the Kitimat LNG Project. If such studies do not currently exist, please advise when they will be completed and provided. If confidentiality concerns exist in respect of the ATK study, please indicate whether the Haisla Nation is prepared to provide it to the Panel in confidence.
(d) Please provide copies of all agreements that the Haisla Nation has entered into with Kitimat LNG including, impact benefit agreements and lease agreements.
(e) Please confirm that the Haisla Nation supports construction and operation of the BC LNG Export Cooperative Project.
(f) Please confirm that the Haisla Nation is a joint venturer or partner with LNG Partners of Houston, in the BC LNG Export Cooperative.
(g) Please confirm that the BC LNG Export Cooperative holds an export licence to ship 36 million
tonnes of supercooled natural gas over 20 years from floating terminal off Kitimat, BC to
Pacific Rim markets by marine vessel.
(Again this information is publicly available on the NEB website, so why is Enbridge asking the question?)
(h) Please provide copies of all environmental assessment studies, risk assessments, TERMPOL review studies and ATK studies pertaining to the BC LNG Export Cooperative Project. If such studies do not currently exist, please advise when they will be completed and provided. If  confidentiality concerns exist in respect of the ATK study, please indicate whether the Haisla Nation is prepared to provide it to the Panel in confidence.
Position Regarding Kitimat – Summit Lake Pipeline Looping Project
1.6  Reference: (i) BC Environmental Assessment Office, “Kitimat
–
Summit Lake Pipeline Looping Project Assessment Report With Respect to Review of the Application for an Environmental Assessment Certificate Pursuant to the Environmental Assessment Act, S.B.C. 2002, c. 43” (12 May 2008) at page 7, online: BC Environmental Assessment Office
<http://a100.gov.bc.ca/appsdata/epic/documents/p270/1214599791218_8e248
a8d30d995f6590f6f694d7789f6e20e141ef52b.pdf>.

(i) states: “The Haisla Nation wrote to the EAO indicating that they support the Project receiving a Provincial EA Certificate, subject to certain conditions (which are being
met).” Reference (ii) provides a First Nations Consultation Report in respect of the Haisla Nation.
Request:
(a) Please confirm that the Haisla First Nation supports the construction and operation of the Pacific Trails Pipeline Project (also known as the Kitimat-Summit Lake Looping Project).
(b)
Please confirm that Reference (ii) accurately describes the nature and strength of claim by the Haisla First Nation in respect of those portions of the Kitimat-Summit Lake Looping Project that will traverse Haisla traditional territory.
(c) Please confirm that
(ci) Reference (ii) lists the mitigation measures proposed by the Kitimat-Summit Lake Looping Project to address construction-related impacts on Haisla First Nation traditional territory, and that such measures are acceptable to the Haisla First Nation. If any such measures are not acceptable, please identify them and advise as to modifications considered appropriate by the Haisla First Nation.

(d) Please advise as to whether similar measures would be requested by the Haisla First Nation to deal with construction-related impacts of the Northern Gateway Project.
(e) Please file a copy of the report entitled Haisla Traditional Use and Occupancy of the Proposed PNG Pipeline Corridor through the lower Kitimat River Valley cited on page 124 of Reference
(ii).] If confidentiality concerns exist in respect of the study, please indicate whether the Haisla are prepared to provide it to the Panel in confidence.

Enbridge also asks the Haisla to provide examples of how the Haisla Nation currently regulates,
or purports to regulate, vessel movements within its Traditional Territory.

(c) Please confirm that the Haisla Nation is aware of existing and proposed marine vessel activity within its Traditional Territory, including:
(i) fuel barges
(ii) cargo/container ships
(iii) commercial fishing vessels
(iv) condensate tankers
(v) liquefied natural gas tankers

On its website Northern Gateway claims

According to numbers from the Port of Kitimat, not only have vessels carrying industrial products been travelling the channels safely for some 35 years, but so too have ships carrying petroleum products—like the one featured arriving in the Port of Kitimat through the Douglas Channel in the picture above.
In fact, some 1,560 vessels carrying methanol and condensate called on Kitimat port from 1982 to 2009 – that’s over 3,100 transits of vessels dedicated to the transport of petroleum products.
When you add vessel traffic of all industrial activity into Kitimat port, the number jumps to 6,112.
To be clear…the number of ships servicing industry arriving at Kitimat port between 1978 and 2009 is 6,112. That’s 12,224 transits!

This Enbridge propaganda campaign has been quite successful in Alberta, leading to constant tweets over the past year, mostly from Albertans such as this one from

@jeffreylowes “Tanker traffic in Kitimat today” So I wonder what the problem is? #northerngateway #cdnpoli http://t.co/w38dt7KA

(Lowes’ Twitter profile describes him as Director of Government & Industrial Relations at MREP Communications A Social Conservative, Opinions are my own. RTs not necessarily endorsements.)

That page is frequently cited on Twitter, again mostly by tweeters from Alberta and Saskatchewan who have never been within 1,000 kilometres of the the BC coast as justification for the increased tanker traffic.

Ellis Ross
Haisla Nation Chief Counselor Ellis Ross testifies before the Northern Gateway Joint Review Panel at Kitamaat Village, January 10, 2012 (Robin Rowland/Northwest Coast Energy News)

Countering the Enbridge propaganda, at least in BC, but largely ignored in the rest of Canada,  was the eloquence of the Haisla elders at the January 2012 hearings in Kitimat which described the destruction of the local environment by 60 years of industrial development and the testimony of Haisla Chief Counsellor Ellis Ross about the major problems caused by a relatively minor spill in Kitimat harbour.

In addition, many of those who testified at this week’s public comment hearings, noted the difference between the current vessel traffic—no supertankers or Very Large Crude Carriers have yet sailed Douglas Channel and the fears of the vast increase in tanker traffic that will happen if all the various projects including LNG and Enbridge go ahead.

Many of the remaining questions to the Haisla are highly technical responses to their questions or filings with the Joint Review Panel.

 

Enbridge Information request to the Haisla (pdf)

 

TransCanada to build Shell’s “Coastal Gaslink” natural gas pipeline to Kitimat

Trans Canada logoShell Canada and its Asian partners have chosen TransCanada Corporation to design, build, own and operate the proposed natural gas pipline to Kitimat, now called the Coastal GasLink project.

The estimated $4-billion pipeline will transport natural gas from the Montney gas-producing region near Dawson Creek, in northeastern British Columbia to the proposed natural gas export facility at Kitimat, BC.

The LNG Canada project is a joint venture led by Shell, with partners Korea Gas Corporation, Mitsubishi Corporation and PetroChina Company Limited.

A news release from TransCanada says “Shell and TransCanada are working toward the execution of definitive agreements on the Coastal GasLink project.”

In the release, Russ Girling, TransCanada president and CEO says:

Our team has the expertise to design, build and safely operate pipeline systems. We look forward to having open and meaningful discussions with Aboriginal communities and key stakeholder groups, including local residents, elected officials and the Government of British Columbia, where we will listen to feedback, build on the positive and seek to address any potential concerns. Coastal GasLink will add value to British Columbians, particularly Aboriginals and communities along the conceptual route, by creating real jobs, making direct investments in communities during construction and providing economic value for years to come.

TransCanada says the company has approximately 24,000 kilometres of pipelines in operation in western Canada including 240 kilometres of pipelines in service in northeast BC. Another 125 kilometres of proposed additions either already having received regulatory approval or currently undergoing regulatory review. These pipelines form an integral and growing part of TransCanada’s NOVA Gas Transmission Ltd. (NGTL) System, which brings natural gas from Alberta to British Columbia to a hub near Vanderhoof.

Girling said in the release:

TransCanada is a leading energy infrastructure company in North America, with a 60-year history of safe, efficient and reliable operation of our assets and a respect for the communities and environments where we operate. We appreciate the confidence that Shell and its partners have placed in us to build, own and operate this natural gas pipeline in British Columbia. We will work collaboratively with them, Aboriginals and other stakeholders as we launch into the initial phases of consultation and regulatory review.

LNG Canada logo

Project parameters

 

In it’s release TransCanada describes the potential Coastal GasLink pipeline project this way:

  • Receipt point: Near Dawson Creek, BC
  • Delivery point: Proposed LNG Canada facility near Kitimat, BC
  • Product: Natural gas from BC’s abundant Montney, Horn River and Cordova basins and elsewhere from the Western Canada Sedimentary Basin
  • Length of route: Approximately 700 kilometres of large diameter pipe
  • Initial pipeline capacity: In excess of 1.7 billion cubic feet of gas per day
  • Anticipated jobs: Estimated 2000-2500 direct construction jobs over a 2- during construction 3 year construction period
    Estimated cost: Detailed cost information will be developed following completion of project scoping and planning. The current estimate is approximately $4 billion
  • Regulatory process: Applications for required regulatory approvals are expected to be made through applicable BC provincial and Canadian federal processes
  • Estimated in-service date: Toward the end of the decade, subject to regulatory and corporate approvals

Pipeline route

TransCanada says: “The final pipeline route will take into consideration Aboriginal and stakeholder input, the environment, archaeological and cultural values, land use compatibility, safety, constructability and economics.:

Pacific Trails Pipeline
The Pacific Trails Pipeline would go cross country to Kitimat. (PTP)

At this point there are two possible routes for the pipeline west of Vanderhoof. One route would be to follow the existing Pacific Northern Gas route that roughly parallels Highway 16. The second possibility is a cross-country route, which may lead to controversy. The Pacific Trails Pipeline, which would feed the KM LNG partners (Apache, Encana and EOG) goes across the mountains from Smithers. While the PTP project has the approval of most First Nations in the regions, Apache and PTP are still in negotiations with some Wet’suwet’en houses over portions where the pipeline would cross the traditional territory of the houses. The much more controversial Enbridge Northern Gateway pipeline follows a similar cross-country route and faces much stiffer opposition than the Pacific Trails Pipeline, due to the content of that pipeline, mainly diluted bitumen and because, critics say, Pacific Trails managed to secure the most geologically stable cross country route earlier in this decade when the pipeline was originally planned to import, not export, natural gas.

TransCanada says the Coast Gaslink pipeline will also have an interconnection with the existing Nova Gas (NGTL System and the liquid NIT) trading hub operated by TransCanada.  The company says:

A proposed contractual extension of TransCanada’s NGTL System using capacity on the Coastal GasLink pipeline, to a point near the community of Vanderhoof, BC, will allow NGTL to offer delivery service to its shippers interested in gas transmission service to interconnecting natural gas pipelines serving the West Coast. NGTL expects to elicit interest in and commitments for such service through an open season process in late 2012.

That means that the Asian customers will not be just dependent on natural gas from northeast British Columbia.  Instead the “molecules” of natural gas from Alberta will join the stream heading to Kitimat. “Open season” in the energy industry is an auction where potential customers or transporters bid for use the pipeline.

In the release Girling says:

The potential Coastal GasLink pipeline project will allow British Columbians, and all Canadians, to benefit from the responsible development of valuable natural gas resources and will provide access to new markets for that gas. The project will also create substantial employment opportunities for local, skilled labourers and businesses as part of our construction team,” concluded Girling. “We know the value and benefits that strong relationships in British Columbia can bring to this project and we look forward to deepening those ties as our extensive pipeline network grows to meet market and customer needs.

TransCanada Corp. is no stranger to controversy, the company is the main proponent of the Keystone XL pipeline from Alberta to the US Gulf Coast. Portions of that pipeline were put on hold by President Barack Obama pending further review and Keystone has become a hot issue in the current American presidential election.

Anti-Enbridge group adopts Quebec students’ “red square” campaign

An anonymous group opposing the Enbridge Northern Gateway pipeline is calling for a demonstration at the site of an oil and gas export conference in Vancouver on May 30 and 31 and asking participants to wear the red square that has become symbolic of the Quebec student protests first against tuition fee hikes and later against Bill 78 aimed at controlling demonstrations in the province.

A notice posted on the website Infoshop News, which describes itself as an anarchist news service, calls for the demonstration at the Four Seasons hotel in Vancouver, site of the Canada Oil and Gas Export Summit. The notice is being widely circulated on Twitter.

The notice adds: “Don’t forget your red squares. Let’s bring the Maple Spring to BC and join Quebec students in opposing the 1% agenda of austerity and environmental destruction.”

Calling the demonstration, “Green Jobs, Not Oil Spills,” the notice says:  “On May 30th/31st the 1% are meeting at the Four Seasons hotel for a two day conference to plot their strategy for Exporting raw tar sands bitumen across BC and overseas to China via pipelines and super tankers.”

The website for the Canadian Oil and Gas Export Summit,  says “The oil and gas industry is at a critical crossroads and now is the time to take a hard look to alternative outlets for Canadian oil and gas,” meaning alternative markets to the United States.  The energy companies are worried about the future of  their American market share due to the effect of political gridlock on the US economy and the growing exploitation of American shale gas deposits which are cutting into Canadian export markets.

The site says the conference highlights include:

  • The latest updates on opening new market opportunities – Moving Canada oil and
    gas exports beyond U.S. markets
  • The impact of the U.S. pipeline decision on the Canadian oil and gas sector
  • The benefits for Canadian producers to tap into Asian markets and
    addressing the perceptions of the two markets
  • The most cost effective strategies of getting to market in light of opposition
  • Infrastructure requirements necessary for accessing Canada’s East and West Coast
  • The legal and regulatory issues surrounding west coast energy corridors, terminals and
    shipping in British Columbia

The conference speakers will tackle a large number of hot button issues in BC, from the energy industry point of view: Paul Fisher, vice present, Commercial, Western Access for Enbridge Pipelines speaks on “Exploring Canada’s Ability to Compete in a Global Marketplace.” Gordon Houlden, Director of the China Institute at the University of Alberta, has a talk touching on “Balancing the complexities of unresolved land claims, environmental and infrastructure issues and the economic development of Western Canada.” Tracy Robinson, Vice President Marketing & Sales, Canadian Pacific Railway, speaks on exporting crude by rail. Douglas Ford, of Communica Public Affairs Inc. handles a large number of issues from the PR point of view, including “the regulatory processes related to British Columbia coastal development,” “the complexity of project development in BC vis a vis First Nations,” with advice on “How to effectively engage community, NGOs, and aboriginal stakeholders.” Van Zorbas of Deloitte Canada speaks about the problems from the current labour shortage.

 

Apache expects first LNG cargo from Kitimat in 2016

Map of Apache Corp LNG projects in the Pacific Region
A map of Apache Corp's liquified natural gas projects, including Ktimat, as presented to the UBS conference on May 22, 2012 (Apache)

Apache said Tuesday, May 22, 2012, that it expects the first LNG cargo leave the Kitimat terminal for Asia sometime in 2016, with possible further expansion in the future.

Patrick Cassidy, director of Apache’s Investor relations division, was making a presentation to the UBS Global Oil and Gas Conference in Houston, Texas, on the company’s future plans.

One slide in the Power Point presentation summed up Apache’s Pacific strategy, both at Kitimat and its chief rival, the Wheatstone project in Western Australia.

Apache said the final investment decision for the first train or phase the Kitimat LNG is still expected later this year. Previous reports have indicated the decision will likely come in the fourth quarter as Apache and its partners line up customers in Asia.

Originally the KM LNG partners said the project would start up in 2015, but delays, including the unusually harsh winter in Kitimat, which slowed construction at the Bish Cove site,  and the search for customers for the natural gas, has pushed the date back to 2016.

Apache  Corp. owns 40 per cent the KM LNG partnership,  Canada’sEncana Corp. and EOG Resources each  own 30 per cent each.

Two other projects are planned for Kitimat, the smaller BC LNG co-owned by Houston-based investors and the Haisla Nation and a larger project announced last week by Royal Dutch Shell.

LINK: Apache presentation to UBS Conference

 

Editorial: It’s time for the District of Kitimat to play hardball on Gateway

EDITORIAL

Who speaks for Kitimat?

Someone has to speak for Kitimat on the Northern Gateway project.

The District of Kitimat Council no longer has a choice. It’s time to play hardball with Ottawa and Enbridge on the Northern Gateway Pipeline.

You can’t negotiate from a position of weakness.

The game of pipelines changed forever in recent weeks, when the Conservative government introduced Bill C-38, the Budget Implementation Act.

Bill C-38, which passed Second Reading on May 14, 2012 is an affront to basic democratic principles, a 425 page omnibus monster that will not permit the kind of careful consideration of major changes in Canadian society that what was once normal in a free and democratic society. The omnibus bill not only concerns the federal budget but also repeals the environmental assessment process and guts fisheries protection for the smaller spawning streams where salmon are born. By giving the federal cabinet the power to overrule the National Energy Board, the decision on the pipeline rests with just one man, Prime Minister Stephen Harper, who has made no secret that he intends to push the project through no matter how fierce the opposition to the project.

This week has seen devastating cutbacks along the west coast, to environmental monitoring and pollution control, to Coast Guard protection.  It is now clear that protection of the environment  along the BC coast and the lives of the mariners who sail those waters are of little importance to Ottawa, and of no importance to the war room types counting votes in Alberta and suburban ridings outside Toronto and Vancouver.

The District of Kitimat Council has voted to wait to make a decision until after the report of the Joint Review Panel, when “all information” is available.

The news this week that the Joint Review Panel decided to bypass Kitimat, that the town that is to be the terminal of the proposed pipeline is irrelevant to the process, shows more than any other move what the JRP thinks of Kitimat. Not much.

The Joint Review Panel has lost all credibility. Even if the JRP does produce a fair and honest report with valid recommendations for conditions and restrictions, it is highly unlikely that those recommendations will be fully implemented, because the final decision will be made in the Prime Minster’s Office and that decision will be build, baby, build.

Media reports in recent months have shown that Enbridge has easy access to the senior levels of the Conservative government and Enbridge lobbying preceded the changes to the Fisheries Act in Bill C-38.  Enbridge  walks the halls of power in Ottawa. Kitimat, on the other hand, counts for little, as the JRP schedule clearly shows.

So, for example, even if the Joint Review Panel recommends strict conditions on the pipeline to insure the safety of Kitimat’s water supply, and if Enbridge doesn’t like those conditions, there is no guarantee that Harper and the cabinet will implement those recommendations. That would leave the District of Kitimat holding the water barrel for several years.

(One of the many reasons, it seems, that the JRP wants to have all the northwest hearings is in Prince Rupert is so the high-priced energy lawyers from Calgary can have comfortable accommodation. So, if any protests from the District and the Haisla Nation are successful and there actually are final hearings in Kitimat,  perhaps the District could arrange for the lawyers to camp in Radley Park, so they can actually grasp the realities of living in Kitimat by the Kitimat River.)

The District of Kitimat Council has a duty to make sure that this region is protected.

So what does this mean?

“Armed neutrality”

It is now too late for the District Council to take a position for or against the pipeline. It no longer matters whether Mayor and Councillors support the pipeline, are sitting on the fence or oppose the pipeline. Bill C-38 has made the decision for the Council.

Council must assume that Stephen Harper will impose the pipeline on Kitimat and will impose conditions that could be determinable to the District in favour of Alberta and Enbridge.

From now on Council must unify and work to protect the District from Stephen Harper. The Council must make sure that the District is an aggressive force at any negotiating table or court battle.

That means Council should retain its position of neutrality, leaving opposition to the pipeline to others like Douglas Channel Watch. Given the growing witch hunt against the environmental movement, an official position of neutrality is negotiating from a position of strength and protects the District from any accusation that “radicals” are distorting the District’s position.

In international affairs, countries like Switzerland and Sweden are neutral, robustly neutral. Both Switzerland and Sweden practice what is called “armed neutrality.”

“Armed neutrality” means that Kitimat Council can no longer continue its current wishy-washy neutrality, arguing over the nuances of words in letters to the Joint Review Panel and Enbridge. To protect Kitimat, Council must adopt its own policy of “armed neutrality,” an aggressive stance that represents the entire community, both opponents and supporters of the pipeline.

So what now?

Professional advice

The announcement this week that Shell is planning to build a liquified natural gas facility in Kitimat, in combination with the KMLNG and BC LNG projects plus Enbridge, means it is vital for the District to have independent, professional advice on energy issues.

The District must immediately start paying much closer attention to the all the relevant documents that are filed with the Joint Review Panel. The District Council and staff must have their own independent advisers rather than juggling the views of Douglas Channel Watch and Enbridge and hoping for the best. That means hiring more professionals to supplement current staff that will understand the technicalities of both the Enbridge pipeline and the LNG projects; staff who can advise the senior administration and Council about how to proceed where the issues of the pipeline construction, terminal construction and management of the terminal come under municipal jurisdiction or could adversely affect the municipality.

That takes money, even though money is tight, Council must budget for that staff. When it comes to negotiating factors within the responsibility of the municipality, Kitimat must be at the table at full strength.

All the way to the Supreme Court

It is now certain that after Stephen Harper orders the pipeline to go ahead, disputes over the Northern Gateway Pipeline will end up in the courts. Lawyers are already talking about the constitutional necessity to consult First Nations, that pushing the pipeline across aboriginal traditional territory will violate Rights and Title.

First Nations across British Columbia are already represented by some of the best lawyers in Canada.

Vancouver is already looking at what powers a municipality has to make sure that city is fully protected in case of a catastrophic tanker accident from the Kinder Morgan pipeline and project.

Yes, the District is wary because of the long and bitter fight over power allocation, but that is in the past. Again Bill C-38 gives the District no choice but to prepare for new legal battles, probably all the way to the Supreme Court of Canada.

The District of Kitimat must immediately budget for, seek out, retain and instruct a law firm that  can advise the District on its rights and responsibilities now and in the future once the Harper government imposes the pipeline on Kitimat. As we have seen from the Joint Review and other National Energy Board hearings, the energy industry hires the best lawyers money can buy.

If Kitimat has to face those lawyers, the District can’t act like a Junior B team facing the NHL All-Stars. That law firm should be able to advise Kitimat on the constitutional issues involved and what powers a municipality has to protect the community from unwanted and unwarranted aspects of pipeline and tanker development. That law firm must also be able to participate in hardball business negotiations.

Seeking Alliances

The District must build better bridges with the Haisla Nation and find where there is common ground in the Kitimat region as Stephen Harper imposes the pipeline on the northwest. They may be arguments before the courts or with Enbridge where both the Haisla and the District of Kitimat are allies in a fight.

Stephen Harper and his government are prepared to impose the pipeline, terminals and tanker traffic on northwestern British Columbia, again no matter what local municipalities and regions say. All the environmental and Coast Guard safeguards that might have brought acceptance of the Enbridge project are being cut to the bone. That means Kitimat must also forge alliances with those municipalities and regions, again to make sure that local rights and responsibilities are fully protected once the government decides to impose the pipeline on the northwest.

It is highly likely that the constitutional consultation and Rights and Title cases on the pipeline will end up at the Supreme Court of Canada. If there are other cases, perhaps raised by Vancouver or other Lower Mainland or northern communities or even the Province of British Columbia, it may be that the Supreme Court, as it has with some cases in the past, could consolidate all the pipeline cases into one. That means Kitimat will need to be a participant in any case on the pipeline before the Supreme Court.

Unless District of Kitimat Council starts playing hardball, Stephen Harper will drive a bulldozer down bank of the Kitimat River to Douglas Channel, ignoring the council standing and watching from the hill looking over the pipeline trench. 

Alterra acquires coastal island wind farms to supply LNG plants, but how will it get to Kitimat?

Updated with Alterra comments.
Alterra Corp logoA Vancouver-based energy company, Alterra Power Corp, today, May 18, 2012, announced the acquisition of three wind farm sites off the northernwestern British Columbia coast.

A news release from Alterra notes that the three “early-stage wind farm” sites, on Banks Island, Porcher Island and McCauley Island are “all within 150 kilometres of several proposed power-intensive LNG plant sites at Kitimat.”

The three sites plus one on Vancouver island will have an estimated generation capacity of over 1,000 megawatts for the four sites.

Alterra acquired the sites from English Bay Energy Limited. Alterra says “the sellers will receive royalty payments during the operations phase of the projects, and under certain circumstances the sellers may receive additional compensation of up to 1.34 million Alterra shares.”

The release quotes John Carson, Alterra’s Chief Executive Officer, as saying, “This transaction further positions us to play a major role in B.C.’s clean energy future. We look forward to advancing and ultimately building these wind projects as a part of the continued growth of Alterra and British Columbia.”

 

Satellite map of BC showing Kitimat and wind farm locations
A satellite image of northwestern BC showing the location of Kitimat and the three islands that are the location of the proposed windfarms to supply to Kitimat’s LNG projects. (Satellite image NASA/MODIS)

When informed of the announcement, Kitimat mayor Joanne Monaghan asked, “How are they going to get it here?”

While the three islands are within 150 kilometres of Kitmat, any transmission lines would have to somehow cross the Inside Passage and its heavy ship traffic, including cruise ships, ferries, fishing vessels and bulk carriers (not to mention potentially tankers),  and then also get over some of the most rugged mountain territory in Canada to reach any of the three liquified natural gas sites in Kitimat.

“I know that all of the LNG plants considering coming in here, including Shell, are talking about co-gen [co-generation of electricity using natural gas], because if they don’t do co-generation they’re going to have to bring all of this in from the Site C Dam and that is going to make it totally out of the range of their price,” Monaghan said. She also remarked that the cost of building transmission lines from the three off shore islands could also be prohibitive.

Alterra spokesman Anders Kruus said that supplying power from the islands to Kitimat a major consideration but added it  “would not be an insurmountable problem.”

He said the company’s predecessor before a merger, Plutonic Power, had built “the province’s largest run-of-river hydro facility at Toba Inlet not far from Powell River  (80 kilometres) and in the process of building that, beause the run-of-river facilty was quite far back, not accessible by roadway, you have to barge in, we built a 120 kilmetre long tranmission line out to Saltery Bay. So we’ve done it over the mountains.”  Kruus said.

“It’s early days,” Kruus said and the company now plans to compile more wind data before proceeding.  He acknowledged that the “intermittency of the wind” could be a problem with an LNG plant that requires a consistent, balanced power load and so the best “off-taker” (customer) for the wind energy electricity might likely be BC Hydro who could balance the power from the project within  its own system before supplying it to customers.

On its website, Alterra Power Corp describes itself as

a leading global renewable energy company, formed in 2011 through the merger of Magma Energy Corp and Plutonic Power Corp.  We operate six power plants totaling 570 MW of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia’s largest run of river hydro facilities and the province’s largest wind farm. Our 300 MW share of production generates over 1,400 GWh of clean power annually. We have an extensive portfolio of exploration and development projects, a skilled international team of explorers, builders and operators as well as the strong financial capacity to support our aggressive growth plans.

Shell, partners, plan giant liquified natural gas project at Kitimat, mayor sees town growing to 15,000 residents

LNG Canada logoShell Canada has confirmed that, with three partners, it is developing a giant proposed liquified natural gas export facility at Kitimat.

The project could see up to 12 million tonnes of LNG exported from Kitimat each year. What the companies are now calling LNG Canada would be built in two “trains” or stages, with each producing six million tonnes. A news release from Shell says there is an option to expand the project beyond the 12 million tonne capacity.

The announcement made international news. The Chicago Tribune said Tuesday. “Kitimat… looks set to become a major supply hub for the Pacific Rim.”

Shell’s partners, Korea Gas Corporation, Mitsubishi Corporation, and PetroChina Company Limited will work to export natural gas, mostly from northeastern British Columbia, combining the “four companies’ extensive development experience, technical depth, financial strength and access to markets required to be the leading LNG developer in Canada.”

The four companies did not say how much money is involved in the project. Reports in the Japanese media said the project could cost as much as $12 billion US.

Shell holds a 40 per cent working interest. The partners KOGAS, Mitsubishi and PetroChina each hold a 20 per cent working interest.

“Our combined expertise, and our focus on technological innovation in delivering safe and environmentally sound LNG projects around the globe, ensures that our LNG Canada project would be well-suited to deliver long-term value for British Columbia and increase access to new export markets for Canada,” says Jose-Alberto Lima, Vice President LNG Americas, Shell Energy Resources Company in a news release.

News releases from both Shell and Petrochina both say:

The proposed LNG Canada project includes the design, construction and operation of a gas liquefaction plant and facilities for the storage and export of liquefied natural gas (LNG), including marine off-loading facilities and shipping. LNG Canada can create significant economic benefit for the province, First Nations, local communities and the region. Such a project can create thousands of jobs during construction and hundreds of full-time, permanent jobs during operations. Such a significant energy project can also bring indirect economic development opportunities to the region.

Shell and PetroChina say:

A decision to move this project into development would be taken after conducting necessary engineering, environmental and stakeholder engagement work with start up around the end of the decade, pending regulatory approvals and investment decisions.
The approval process will begin with a formal consultation process with First Nations and local community residents.

“This project will contribute to a further strengthening of trade relationships between China and Canada and will help China use clean burning natural gas to fuel its economic growth,” Bo Qiliang, Vice President, PetroChina, said in the release.

“We are sitting on the doorstep of a very fast-growing market that actually wants to come to Canada because they see it as long-term stability and a secure source of supply,” Shell Canada president Lorraine Mitchelmore said. “We are now, for the first time in the natural gas industry, very competitive with other countries like Australia.”

Kitimat Mayor Joanne Monaghan said her and the District Council have been working on the project for sometime. “Council have been aware of it and have rolled up their sleeves for almost a year and half to two years,” the mayor said.

Kitimat mayor Joanne Monagahn
Kitimat mayor Joanne Monagahn reads notes on the LNG Canada announcement, May 15, 2012. (Robin Rowland/Northwest Coast Energy News)

One aspect was making sure Kitimat is ready for the project, Monaghan said: “We had to make sure there were hospital facilities, rental facilities, that we had housing available. We were getting all our inventories together. Now we know and now we can go full blast ahead.”

Monaghan hopes that eventually Kitimat will return its population peak of between 10,000 and 15,000 residents. (Since the closure of the Eurocan craft paper mill in 2010, Kitimat’s population dropped to around 8,000 but that number has been growing with the LNG projects and the Rio Tinto Alcan Kitimat Modernization Project, even though the KMP project will eventually mean fewer jobs at the aluminum smelter).

“If they have the five to seven thousand construction workers they’re looking for, they will bring in workers from all over BC, probably all over Canada,” Monaghan said.

Shell purchased the former Methanex plant site and the related Kitimat port terminal last fall, raising worldwide speculation about the LNG project. The Methanex site is now used by Cenovus to transport bitumen condensate by rail from Kitimat to the Alberta oil sands. Much of the old Methanex plant has been decommissioned and is being shipped to a buyer in China.

Most of the natural gas supply will come from the booming Horn River and Montney shale gas formations in northeastern British Columbia.

Reports say that LNG Canada will work with a third party that would build and probably own a pipeline from the northeast to the coat.

The profit picture comes from the fact that LNG prices in Asia, based on a proportion of the world price of oil, are much higher than the price of natural gas in North America, where the shale gas boom has driven gas prices to a record low.

The price boom in Asia could be a windfall for British Columbia, which could receive up to $600 billion in natural gas royalties over the next 25 years.

There is also fierce international competition to send LNG to Asia. The major energy companies are investing heavily in projects in Australia, while traditional suppliers like Qatar and Russia are ramping up their marketing efforts to Asia.

The old Methanex site in Kitimat
The decommissioned Methanex site by the Kitimat River, now owned by Shell. (Robin Rowland/Northwest Coast Energy News)

As of this week, Japan began closing down the last of its nuclear electrical generation capacity. After the March 11, 2011 earthquake, that country became a major customer for current and future liquified natural gas projects.

Since the earthquake last year, two other projects in Kitimat have proceeded. The Kitimat LNG project, a partnership called KM LNG led by Apache Corporation, Encana Corp, and EOG Resources plan to start up a Kitimat LNG plant in 2015, at Bish Cove with an initial capacity of five million tonnes a year. That project has been approved by the National Energy Board but is still waiting for a final go ahead from the boards of the three corporations, expected now in the fourth quarter of 2012.

A second project, called BC LNG, owned by the Haisla Nation in partnership with Houston-based LNG Partners, will act as broker and exporter for other LNG companies, facilitating exports to Asia from a barge based facility at North Cove, with the first shipment expected in 2014 or 2015.

There are also reports that Malaysia’s Petronas in partnership with Calgary-based Progress Energy Resources Corp., which have major stakes in B.C. shale are also looking for a possible LNG terminal on the west coast. As well, Talisman Energy, Nexen and Imperial Oil are also looking at west coast projects.

Related Links

News release from BC Premier Christy Clark Premier Applauds Progress on Kitimat Project: LNG Canada

Mitsubishi news release

More oil leaking from sunken WWII US transport near Hartley Bay, Gitga’at warn

Oil slick in Grenville Channel (Gitga`at First Nation Guardians)
Oil slick in Grenville Channel (Gitga`at First Nation Guardians)

The Gitga’at First Nation at Hartley Bay report that a large oil slick  has been spotted in Grenville Channel near Hartley Bay.  It is believed that the oil is coming from the  USAT Brigadier General M.G. Zalinski, a U.S. army transport ship that sank in 1946 with 700 tonnes of bunker fuel on board.

A news release from the Gitga’at says the oil spill is between  between two and five miles (four to eight kilometres) long and 200 feet wide (70 metres) inside the Grenville Channel.

A Canadian Coast Guard vessel from Prince Rupert is expected in the area sometime this afternoon.

The Gitga’at are sending their own Guardians to take samples and have chartered a plane to take aerial photos of the spill, the release says.

“If this spill is as big as the pilots are reporting, then we’re looking at serious environmental impacts, including threats to our traditional shellfish harvesting areas,” says Arnold Clifton, Chief Councillor of the Gitga’at Nation. “We need an immediate and full clean-up response from the federal government ASAP.”

The USAT Brigadier General M.G. Zalinski was carrying Bunker C when it sank. The First Nation says the Canadian government has been saying it would remove the oil and munitions from the ship since 2006, but with no results.

“Right now we’re focused on getting a handle on the size of the spill and the clean-up that’s required,” says Clifton. “But this incident definitely raises questions about the federal government’s ability to guard against oil spills and to honour its clean-up obligations. As a result, our nation has serious concerns about any proposal to have tankers travel through our coastal waters, including the Enbridge proposal.”

The spill is just the latest in a series of spills of bunker oil and diesel coming from the Zalinski and the BC Ferry Queen of the North, which sank in 2006. Despite government assurances of clean-up, both wreckages continue to leak fuel, fouling the marine environment, and heightening the fear of future oil spills.

The Gitga’at depend on the ocean for 40 per cent of their traditional diet.

According to Wikipedia, the Zalinksi was enroute from Seattle to Whittier Island, Alaska, when it struck rocks at Pitt Island on Grenville Channel 0n September 26 1946, 55 miles (88 kilometres)  south of Prince Rupert. The ship sank within twenty minutes, while her crew of 48 were rescued by the tug Sally N and the passenger steamer SS Catala. According to a report in The Vancouver Sun on  September 30, 1946, at the time of her sinking she was transporting a cargo of at least twelve 500-pound (230 kg) bombs, large amounts of .30 and .50 caliber ammunition, at least 700 tonnes of bunker oil, and truck axles with army type tires.

Oil was first spotted leaking in Grenville Channel in 2003 and the wreck of the Zalinski was identified later that year by a remotely operated undersea vessel.

Hartley Bay is the entrance to Douglas Channel where tankers will go to Kitimat for the proposed Northern Gateway pipeline and three liquified natural gas projects.