National Energy Board | Northwest Coast Energy News

Tony Clement’s statement that Joint Review Panels cover “irrelevant issues” angers Ontario First Nations

Last Monday, the government of Stephen Harper sent cabinet ministers across the country to counter that day’s anti-censorship Blackout Speakout campaign by talking up “responsible resource development.”

That move now appears to be backfiring, at least in the case of Treasury Board minister Tony Clement, whose reported remarks in Thunder Bay that Joint Review Panels allow “individuals to use the assessment to discuss irrelevant issues that delay projects from mining to oil and gas that create jobs” have brought a swift and angry response from local First Nations.

Clement had come to Thunder Bay to promote what is called Ontario’s “Ring of Fire” an area of extensive mining exploration and development.

On a local Thunder Bay news site, tbnewswatch, reporter Jamie Smith covered Clement’s speech at a company called Coastal Steel. Smith’s report says:

Current joint-panel review environmental assessments are duplicating the process and allowing individuals to use the assessment to discuss irrelevant issues that delay projects from mining to oil and gas that create jobs.

“Before you know it it’s going to take a decade or more if the project is a viable project that we want to go ahead with it takes a decade or more to get to a stage where you can actually get it done. That’s inexcusable,” he said.

Those words are not in Clement’s speech as posted on his website. That speech simply repeats the current government line on resource development:

We need to ensure timely, efficient and effective project reviews. This will keep us competitive with other resource-producing nations.

We need a system that promotes business confidence and attracts investment while strengthening our world-class environmental standards.

Here’s what this new legislation will achieve:

• First, it will make project reviews more predictable and timely;
• Second, it will reduce duplication of project reviews;
• Third, this bill will strengthen environmental protection; and
• Fourth, it will enhance consultations with Aboriginal peoples.

To streamline and modernize our outdated regulatory system, we will take a whole-of-government approach. We want to put in place a new system of “one project, one review” that operates within a clearly defined time period…

The fact is, our new plan will strengthen environmental safeguards, including tanker and pipeline safety. And for the first time, it will provide enforcement of environmental assessment conditions under the Canadian Environmental Assessment Act. It will also strengthen pipeline inspections and introduce tough new monetary penalties for violations of National Energy Board conditions on new pipeline projects.

(So far, no one in the Harper government has been able to explain how it is “strengthening environmental safeguards, including tanker and pipelne safety” while severely cutting the staff and resources of Environment Canada, Fisheries and Oceans and the Canadian Coast Guard).

According to a second northwestern Ontario news site, netnewsledger, a number of local First Nations quickly expressed their anger at Clement’s remarks about the irrelevancy of a JRP.

Chief Roger Wesley of Constance Lake First Nation took aim at the Federal Government today saying Minister Clement’s comments in Thunder Bay this week signal a new and unfortunate turn in the Government’s relationship with First Nation Peoples.

“I am worried, but also saddened,” said Wesley….

“A Joint Review Panel EA would give time for appropriate consultation and a serious look at the impacts on the land, but also on our people. Impacts to our culture, our communities, our land and way of life are not irrelevant!” said Chief Wesley….

“And as far as First Nations not having a veto, legal precedents have already been set in this country that indicate the government must seek First Nation consent if there is the possibility of serious negative impact from development on our traditional lands. They clearly do not respect their own constitution. It is a sad and frightening day when the Canadian government makes such outrageous comments.

A second northwestern Ontario chief, Sonny Gagnon of Aroland First Nation is quoted as saying:

“When a federal minister states publicly that First Nation concerns are irrelevant, everyone in this country should be worried. Today it our rights, tomorrow it could be yours. Don’t get in the way of the Government’s resource development expansion or your rights will be deemed irrelevant.”

“Furthermore the Government is using some pretty creative accounting procedures if they believe they have provided our First Nations with the finances to respond to the Ring of Fire developments.

Tony Clement has just set our Treaty Relationship back 100 years to the time when railway expansion led to the displacement and brutal mistreatment of our people, leaving a legacy of suffering.”

Northwest Coast Energy News could not independently verify whether Clement departed from his prepared text or later told reporters that a Joint Review covers “irrelevant issues.” However, now with Ontario First Nations objecting to the reports of the speech, this controversy is yet another blow to the credibility of all Joint Reviews. including the Northern Gateway Joint Review which will be here in Kitimat in couple of weeks to hear oral comments. In the past few weeks, the Northern Gateway Joint Review has cut short its scheduled oral comment hearings in several BC communities, because those who registered are not showing up. Reports in local media across northwestern BC say that the dropouts believe the Enbridge pipeline is now a foregone conclusion and that commenting before the JRP will have no affect on the outcome.

According to Wikipedia, the Ring of Fire is an area in the James Bay lowlands where there is growing mineral exploration. In his speech, Clement said:

The development of the Ring of Fire in Northern Ontario holds the potential for billions in mineral wealth. Private sector estimates indicate that the chromite resources there could be worth as much as $50 billion. There are estimates for deposits of base metals and platinum-group metals worth as much as $10 billion. And there may also be deposits of gold, iron and other minerals in the region.

Strong support for Joint Review questioning and final hearings in Kitimat, draft report says

The Northern Gateway Joint Review secretariat has issued a draft final report on the May 30 procedural conference concerning the final two phases of the hearings, questioning and final arguments. There was strong support from some participants, including Northern Gateway, for holding portions of the questioning round and final arguments in Kitimat.

The JRP released the draft report on June 6, 2012. The JRP’s original plan for final hearings for questioning will take place in three locations Prince Rupert, BC, Prince George, BC and either Edmonton or Calgary, AB.

The JRP had argued that the three locations were centrally located, have adequate facilities and reasonable transportation access. The most contentious issue was that the plans bypassed Kitimat, which is to be the terminal for the Northern Gateway pipeline and the shipping point to send the diluted bitumen to Asia.

The Joint Review secretariat reports that eight participants wanted a hearing at Kitimat. According to the report, Northern Gateway suggested that the discreet issue of “shipping and navigation” could be moved to Kitimat, due to the local interest. Northern Gateway told the JRP that they would have upwards of 10 to 20 witnesses on the issue of marine environment, as well as related support personnel and asked for a early scheduling decision because their “experts on this issue would be arriving from distant locations and need some timing certainty for their appearance.”

The JRP says the District of Kitimat agreed with Gateway and also suggested issues relating to the marine terminal component of the Project, potential impacts on aboriginal interests, environmental effects of the marine terminal and construction through the coastal mountains.

Cheryl Brown, of Douglas Channel Watch, suggested that issues relating to the “marine terminal site” could be added to this location.

According to the JRP report, the Haisla Nation recommended that hearings be held in the town and not Kitimaat village. Both the Haisla and District of Kitimat emphasized that there would be no logistical issues in terms of accommodation or transportation. “Both groups noted that many hearings have been held in the community in the past, without any problems,” the JRP report notes.

The Haisla noted that if there were no hearings in Kitimat, the nation would prefer that hearings on its issues be held in Vancouver.

The JRP said the majority of parties either took no issue with Prince Rupert or suggested an additional venue be added (such as Kitimat), but five participants questioned why Prince Rupert was considered as it is not directly along the proposed pipeline route.

Those interested in the Alberta hearings appeared to be evenly split over whether the hearings should be in Edmonton or Calgary.

In the conference, as it had in an written submission, Coastal First Nations suggested that Vancouver be added as a final hearing location with videoconferencing of the hearings to both Prince Rupert and Kitimat because of the number of counsel, witnesses and experts coming from, or flying through Vancouver.

The Wet’suwet’en Nation repeated that they would like to have hearings either in Burns Lake or Smithers if more hearing locations were added.

The Gitxaala suggested potentially having Gateway’s cross-examination in one location and cross-examination of intervenors in other locations more convenient to them (i.e. Gitxaala in Prince Rupert). Gateway opposed this idea, stating that if an issues based hearing is going to be adopted, it should be used in its entirety.

All of the participants in the conference agreed that a location be centrally located, have adequate facilities and reasonable transportation access. The JRP notes: “The Haisla in particular noted the centrality of Kitimat and the fact that all three Project components are contained in their territory. The Wet’suwet’en noted that it is important that its hereditary chiefs be able to witness the hearings.”

Most of the participants in the conference supported the use of technology and remote access during the final hearings. The report notes:

The Haisla raised some general concerns about the integrity of the evidence obtained and, for that reason, is of the view that parties who seek to have their witnesses participate remotely should first have to obtain the consent of those that would cross-examine the witness. The Haisla also agreed that procedures need to be implemented to ensure that the information is being provided by witnesses and not prompted by others.

According to the JRP report: “The use of video conferencing facilities was generally seen to be preferable to teleconference capability only. The Wet’suwet’en noted the importance of seeing those providing evidence.”

The Haisla and other parties argued that Aboriginal groups need a clear understanding of the Project before answering questions on potential impacts; questioning Gateway witnesses will assist with that. As such, issues of Aboriginal and treaty rights, the potential impacts of the Project on Aboriginal interests and consultation should be addressed last.

The Government of Canada agreed that it made sense to have issues relating to Aboriginal interests and consultation addressed after other technical issues. Gateway did not believe that these issues needed to be addressed all together at the end of the entire hearing. Rather, issues relating to Aboriginal and treaty rights and interests could be heard at the end of the coastal hearings (either in Prince Rupert or Kitimat). Issues relating to Aboriginal and treaty rights and interests could similarly be dealt with at the end of the Prince George hearings to address these issues for the pipeline component of the Project.

There was also discussion over the location of final arguments.

The JRP suggested that final arguments take place in Prince Rupert and either Edmonton or Calgary with mechanisms to allow parties to participate remotely.

Northern Gateway and ten other participant recommended that final arguments take place in Kitimat instead of Prince Rupert. One party suggested that final argument should take place entirely in one single location (Calgary or Edmonton) while again there was pretty well an even split between the two Alberta cities. Again, the Coastal First Nations suggested that Vancouver be added as a final hearing location with videoconferencing of the hearings to both Prince Rupert and Kitimat.

Participants

Northern Gateway Pipelines Inc. (Gateway or applicant)

Alberta Federation of Labour (AFL)

Alexander First Nation (AFN)

Cheryl Brown

Canadian Association of Petroleum Producers (CAPP)

Cenovus Energy Inc (Cenovus);

Nexen Inc (Nexen);

Suncor Energy Marketing Inc (Suncor) and Total E&P Canada Ltd (Total)

Coastal First Nations (CFN)

Communication Energy and Paperworkers Union (CEP Union)

Council of the Haida Nation (Haida)

District of Kitimat

East Prairie Metis Settlement (East Prairie)

Horse Lake First Nation (Horse Lake)

Enoch Cree Nation,

Ermineskin Cree Nation,

Samson Cree Nation

Kelly Lake Cree Nation (Cree Nations)

Fort St. James Sustainability Group (FSJ)

Gitxaala Nation (Gitxaala)

Government of Alberta

Government of Canada

Haisla Nation (Haisla)

Living Oceans Society,

Raincoast Conservation Foundation and ForestEthics Advocacy (Coalition)

MEG Energy Corp. (MEG)

Northwest Institute for Bioregional Research (NWI)

Office of the Wet’suwet’en (Wet’suwet’en)

Province of British Columbia (BC)

Sherwood Park Fish & Game Association (Sherwood Park F&G Assn)

Swan River First Nation (Swan River)

Terry Vulcano

Josette Wier

Panel Commission Draft Final Report Procedural Conference 30 May 2012 (pdf)

DFO report to JRP says Northern Gateway pipeline will cross “high-risk” streams but releases only two examples on Kitimat watershed

A Department of Fisheries and Oceans report filed Wednesday, June 6, 2012, with Joint Review Panel says the department has identified streams on the Northern Gateway Pipeline route that Enbridge identified as “low risk” but which DFO considers “high risk.” However, in the filing, DFO says it can’t release a comprehensive list of the high risk streams, preferring instead to give two examples on the Kitimat River watershed.

The DFO report comes at a time when the Conservative government is about to pass Bill C-38, which will severely cut back DFO’s monitoring of the majority of streams. It appears that the anonymous DFO officials who wrote the report acknowledge that they may soon have much less monitoring power because the report says:

Under the current regulatory regime, DFO will ensure that prior to any regulatory approvals, the appropriate mitigation measures to protect fish and fish habitat will be based on the final risk assessment rating that will be determined by DFO.

Note the phrase “under the current regulatory regime.”

The report also identifies possible threats to humpback whales from tanker traffic.

In the report, DFO notes that Northern Gateway’s “risk management framework” is based on DFO’s own Habitat Risk Management Framework, and DFO, notes “the approach appears to be suitable for most pipeline crossings.”

However, DFO further remarks that it has identified

some examples where crossings of important anadromous fish habitat have received a lower risk rating using Northern Gateway’s framework than DFO would have assigned. In addition, DFO has identified some instances where the proposed crossing method could be reconsidered to better reflect the risk rating.

In bureaucratic language, the Department says “DFO reviews impacts to fish and fish habitat and proposed mitigation measures through the lens of its legislative and policy framework” again a strong hint that the legislative and policy framework is about to change.

It goes on to say:

The appropriate approach to managing risks to fish and fish habitat is based on the risk categorization. For example, where high risks are anticipated DFO may prefer that the Proponent use a method that avoids or reduces the risk such as directional drilling beneath a watercourse to install the pipeline. If low risks are anticipated other methods such as open-cut trenching across the watercourse may be appropriate.

While DFO is “generally satisfied” with Northern Gateway’s proposed approach, it says “DFO has identified some crossings where we may categorize the risk higher than Northern Gateway’s assessment.”

DFO then gives Enbridge the benefit of the doubt because:

Northern Gateway continues to refine the pipeline route and we anticipate that assessment of risk will be an iterative process and, if the project is approved and moves to the regulatory permitting phase, DFO will continue to work with Northern Gateway to determine the appropriate method and mitigation for each watercourse crossing. In DFO’s view, Northern Gateway’s approach is flexible enough to be updated if new information becomes available.

DFO then says it

has not conducted a complete review of all proposed crossings, we are unable to submit a comprehensive list as requested; however, this work will continue and, should the project be approved, our review will continue into the regulatory permitting phase. While there may be differences in opinion regarding the risk categorization for some proposed watercourse crossings, DFO will continue to work with Northern Gateway to determine the appropriate risk rating and level of mitigation required.

Here is where DFO points to current, not future policy, when it says:

DFO is of the view that the risk posed by the project to fish and fish habitat can be managed through appropriate mitigation and compensation measures. Under the current regulatory regime, DFO will ensure that prior to any regulatory approvals, the appropriate mitigation measures to protect fish and fish habitat will be based on the final risk assessment rating that will be determined by DFO.

The report then gives two examples of high risk streams both in the Kitimat River watershed

Example 1) Tributary to the Kitimat River, KP 1158.4 (Rev R), Site 1269

Northern Gateway Rating: RMF: Low Risk

DFO Rating: RMF: Medium to High Risk

Rationale: This is a coastal coho salmon spawning stream that is quite short in length. It has several historic culverts in poor repair which are already impacting the reported run of approximately 100 spawning salmon. Works can be completed in the dry as this stream dries up during the summer. DFO is of the opinion that the risk rating is higher than that proposed by Northern Gateway due to the sensitivity of incubating eggs and juveniles of coho salmon to sediment and the importance of riparian vegetation for this type of habitat.

Example 2) Tributary to the Kitimat River, KP 1111.795 (Rev R), Site 1207

Northern Gateway Rating: RMF: Medium Low Risk

DFO Rating: RMF: Medium to High Risk

Rationale: In DFO’s view the risk rating for this watercourse is higher than that proposed by Northern Gateway because this stream is high value off-river rearing habitat for juvenile salmon such as coho salmon. This type of fish habitat is vulnerable to effects of sedimentation and loss of riparian vegetation.

Humpback Whales

The Joint Review Panel also asked DFO for a comment on the status of the humpback whale, especially in the shipping area in the Confined Channel Assessment Area Between Wright Sound and Caamaño Sound.

DFO responds

Four areas of critical habitat were proposed for humpback whales in coastal British Columbia in the Draft Recovery Strategy released in 2010, including the Confined Channel Assessment Area from Wright Sound to Caamaño Sound. However, humpback whales have recently been re-assessed by the Committee on the Status of Endangered Wildlife in Canada (COSEWIC) and were redesignated ‘Special Concern’ but remain ‘Threatened’ under the Species at Risk Act (SARA). A draft recovery strategy for the humpback whale has been prepared.
It is unclear if humpback whales are still protected as a Schedule 1 status species under the SARA and whether a recovery strategy has been finalized.

Fisheries and Oceans Canada Response to the JRPs IR Request (pdf)

BC refuses to answer questions from Douglas Channel Watch, because province hasn’t filed Gateway evidence

Updated with comment from Douglas Channel Watch and DCW questions to province.

The province of British Columbia is refusing to answer questions from the Kitimat group Douglas Channel Watch about the Northern Gateway pipeline project because, the province’s lawyer says, BC hasn’t filed any evidence and so doesn’t have answer questions through the Joint Review Process.

In a filing on May 28, Christopher Jones, counsel for BC before the JRP says:

the province of British Columbia wishes to advise that it will not be responding to this information request as the Province has not filed evidence in this proceeding.

In the letter Jones invites Douglas Channel Watch to contact him so the group can ask questions from the “appropriate offiicial.”

The fact that the province is brushing off Douglas Channel Watch raises an even larger question, why hasn’t the province filed any evidence in one of the biggest environmental, economic and political stories in provincial history?

The filing from Douglas Channel Watch was an attempt to find out who would be financially responsible for any oil spill resulting from a pipeline breach near Kitimat that could threaten the District’s water supply, a major issue with the Kitimat based environmental group.

In an early filing with the Joint Review Panel Enbridge said.

Regardless of whether or not insurance covers losses and liabilities of Northern Gateway and/or third parties, Northern Gateway would make good the damages which it has caused. Recovery ofthese costs under Northern Gateway’s procured insurance programs would be governed by the general laws of insurance, the terms and conditions of the insurance policies and Northern Gateway’s obligations to its insurers regarding the reporting, investigation and adjustment of its incurred costs in making good the damages.

Enbridge then goes on to list the standard exclusions from insurance policies.

Criminal intent

Wilful misconduct or intent

Deliberate destruction

Intentional violation of any statute, rule, ordinance or regulation

Non-compliance with reporting and notification requirements

Breach of contract

Unfair trade, competition or deceptive acts

Nuclear liability

War, terrorism, rebellions, civil war or civil strife

In their questions to the province, Douglas Channel Watch emphasized the phrase that Enbridge would “make good the damages which it has caused.” Douglas Channel Watch then emphasized the insurance exclusion for war, terrorism or civil strife.

The group was then asking the province what its responsibility would be, especially when a pipeline goes through forested areas, which come under the jurisdiction of the Ministry of Lands and Forests.

Douglas Channel Watch is specifically concerned that

In the upper Kitimat River and Hoult Creek valleys there are very large logging clear cuts on steep slopes. The proponent intends to locate its pipelines near the bottom of these clear cuts

The main question to the province from Douglas Channel Watch is that if a landslide results from a clear cut in a geologically unstable area, and that landslide breaches the pipeline, who is responsible for the cleanup, asking these questions, which the province refused to answer:

Could this allow the proponent to avoid paying for third party damages and clean up costs if an avalanche and/or debris slide which initiates in a logging clear cut… for example, a 2,000,000 litre full bore diluted bitumen pipeline rupture into Hoult Creek or the Kitimat River?

Would not those damages to third parties and clean up costs then be paid by the party responsible ?

Would the responsible party be the Government of BC for allowing the pipelines to be located in areas which violate safe logging practices where linear infrastructure may be impacted?

If the Government of Canada imposes a decision to allow the proponents project over the objections of the Government of BC or the recommendation of the Joint Review Panel, would the Government of Canada then be the responsible party?

Murray Minchin of Douglas Channel Watch responded by noting. “It may be true the Prov of BC hasn’t submitted evidence, but they have been involved in the JRP process” by filing questions to Enbridge.

Meanwhile, Douglas Channel Watch is organizing a public forum called North Coast Reality Check at the Kitimat Riverlodge Recreation Centre on June 8 from 7 pm to 9 pm.

In a news release, Minchin, says presentations will be given by DCW members highlighting many serious issues Enbridge prefers not to talk about, such as geological and marine hazards, corrosion in double hull tankers, and socio-economic impacts of the Northern Gateway proposal.

Response from BC to IR from Douglas Channel Watch (PDF)

Douglas Channel Watch Information Request to Government of BC (PDF)

BC Government questions to Enbridge

Province of BC Information question No 1 Northern Gateway project (PDF)

Province of BC Information Request 2 (PDF)

Kitimat to “fully participate” in Northern Gateway Joint Review procedural planning meeting: Council

The District of Kitimat will “fully participate” in the Northern Gateway Joint Review procedural planning meeting conference call on May 30, Councillor Rob Goffinet told Northwest Coast Energy News Wednesday, May 23.

Goffinet said the District had been aware of the problem of the JRP bypassing Kitimat for the questioning and final argument phases of the hearings and took steps to register for the planning meeting to be held in Calgary on May 30.

Goffinet, saying he was speaking on behalf of Mayor Joanne Monaghan and the entire council, said as many members as possible will attend, along with District staff, listening in to the conference call from a board room in the District offices in City Centre.

Both the Haisla Nation and the province of British Columbia have filed formal objections to the JRP’s plans to bypass Kitimat for the final sets of hearings.

District of Kitimat Participation at Procedural Conference of 30 May (pdf)

BC, Haisla, file objections to JRP bypassing of Kitimat; Enbridge likes venues, avoids the tanker problem

Both the province of British Columbia and the Haisla Nation have filed strong objections with the Northern Gateway Joint Review Panel about the panel’s plans to bypass Kitimat for the questioning and final argument phases of its examination of the controversial pipeline project.

At present, the Joint Review Panel plans to hold questioning hearings in Prince Rupert, Prince George and either Calgary or Edmonton and final arguments in Prince Rupert and Calgary/Edmonton.

And if Prime Minister Stephen Harper and Natural Resources Minister Joe Oliver wanted to speed up the hearings and therefore approval of the Northern Gateway project, filings from all sides indicate more time is needed than the two months allocated by the JRP.

The JRP secreteriat plan a meeting in Calgary on May 30 to consider the procedures. The three panel members will not attend. A large number of intervenors or government participants will be represented in person or take part in a conference call.

The lawyer for the Haisla Nation, Jennifer Griffiths, points out in her filing with the JPR, “Prince Rupert is not a logical location for any of the hearings.”

Updated: The District of Kitimat, which is registered as a “government intervenor” will participate in the conference call.

The law firm representing the Enbridge Northern Gateway, agrees with the JRP preliminary decision to hold the hearings in Prince Rupert, Prince George and Calgary or Edmonton. However, Enbridge’s lawyer Richard Neufeld, of Fraser, Milner, Casgrain, makes it clear that for those hearings they are not involved in the operation of tankers carrying the bitumen they sell to customers.

This includes a marine terminal at Kitimat. Northern Gateway recognizes the interest of the public, government, and First Nations in respect of the potential effects of ships calling on the proposed marine terminal, but it is important to bear in mind that Northern Gateway will not own or operate any marine vessels. No approvals are sought, or required, for such operations, as they are subject only to laws of general application which apply to all shipping into or out of Canadian ports.

The Ecojustice group, also known as the Sustainability Coalition, an alliance of the Living Oceans Society, Raincoast Conservation and ForestEthicsAdvocacy wants hearings in Vancouver. The Coastal First Nations also want the hearings in Vancouver.

The Wet’suwet’en want more hearing locations especially in the areas of the proposed route to address those most affected, telling the JRP:

The Office of the Wet’suwet’en (OW) is localized in Smithers, BC, our territory is 22,000 square kilometres and 170 kilometres is proposed to be crossed by NGP prior to crossing the coastal mountain range. The OW requests that hearings be held in Smithers or Burns Lake for full days rather than half days to reduce travel and accommodation costs for intervenors.

In the provincial filing, Christopher Jones, counsel for British Columbia says:

the Province submits that it is essential for a portion of the final hearings to take place in Kitimat. Kitimat is the proposed location of one terminus of the proposed pipeline, and of the proposed marine terminal. As a result, that locality has a particular interest in these proceedings. There are sufficient facilities and transport access to Kitimat to allow the hearings to take place there…..

The letter from Jones goes on to stay that BC believes “the Province would again submit that certain issues should be dealt with at Kitimat” rather than Prince Rupert.

Griffith, of the Vancouver law firm, Donavan and Company, filing on behalf of the Haisla Nation says:

The Haisla Nation questions why no final hearings are proposed for Kitimat. Given the significant new infrastructure associated with the project that is proposed to be located in the Kitimat area, Kitimat is a logical location for hearings. Kitimat is serviced by the Terrace airport, which is only 56 km away. Kitimat also has dock facilities for parties who may be travelling to the hearings by boat. Finally, there is ample accommodation in the Kitimat I Terrace area. Prince Rupert is not a logical location for any of the hearings. The proposed pipeline does not go near Prince Rupert, the terminal is far from Prince Rupert, the tankers would go through Douglas Channel, not past Prince Rupert. Prince Rupert is not accessible to the Haisla Nation by way of a direct flight.

Griffith also says the final arguments should be held either in Kitimat or Vancouver.

The Haisla Nation will have to participate in every aspect of the hearings. Yet the Panel is currently not proposing to hold any of the questioning phase or final hearings in Kitimat. As set out in the comments below, the Haisla Nation is of the view that the questioning and final hearing locations slated for the western terminus of the project should be held in Kitimat, not in Prince Rupert.

Enbridge, on the other hand, through its lawyer, Richard Neufeld, says:

Northern Gateway agrees with the Panel’s observations regarding the need to select hearing venues that are centrally located, have adequate facilities and reasonable transportation access for the large numbers of witnesses and back-up support personal required. Northern Gateway also agrees that Prince Rupert, Prince George and Calgary/Edmonton meet these criteria. Northern Gateway also agrees that if economic issues are to be dealt with in a single venue, it would be appropriate to do so in Calgary or Edmonton. Of the two, Calgary would be a more logical location given its convenience for those participating in that aspect of the proceeding.

Enbridge also has reservations about the process, while it wants the hearings “streamlined,” the company is concerned about the plan to split the hearings into various issues could be “prejudicial” to the project.

Northern Gateway expects that the Panel is considering an issues-based hearing in an effort to streamline the hearing process, and to make the process more accessible to those who want to participate only when specific issues or topics are under discussion. Both objectives are laudable.

However, an issues-based hearing format has the effect of forcing the Applicant to split its case into multiple parts. This is potentially prejudicial to the Applicant – especially if the issues identified for litigation do not correspond to the manner in which the Application has been structured.

The EcoJustice group wants hearings in Vancouver, largely because many of its members are there, with staff lawyer Barry Robinson, saying to the JRP:

The Coalition recommends that the Panel consider adding a fourth hearing location in Vancouver. The Coalition notes that, logistically, many of the witnesses and counsel that would appear in Prince Rupert would travel through Vancouver. If the vast majority of the witnesses and counsel to appear on any given issue will be required to travel from or through Vancouver, the Coalition recommends that the issue be heard in Vancouver to reduce travel costs and related greenhouse gas emissions.

However, the Coalition is sensitive to the needs of local intervenors in the Prince Rupert area and would ask that the Panel use its discretion in allocating topics to be heard in Prince Rupert and Vancouver.

And later:

The Coalition recommends that the Panel consider hearing final argument in Vancouver as a third location. The Coalition is supportive of the Panel providing an option for remote participation.

Coastal First Nations have a similar proposal. Art Sterritt, Executive Director says:

the JRP should consider holding hearings on marine issues in Vancouver with video links to Prince Rupert and Kitimat as a way of reducing the costs to Intervenors (many experts and legal and technical representatives live in the lower mainland) and in recognition that Kitimat is the proposed site of the Marine Terminal and that there are many people in the lower mainland who use the area for recreational, commercial fishing and other uses.

It appears that there will soon be controversy over the time allotted both for questioning and final arguments. The Haisla, other First Nations and Ecojustice and even Northern Gateway appear to want more time for questioning and cross-examination, while, for example, the Canadian Association of Petroluem Producers, the industry representative says it:

is still considering the scope and extent of its participation in questioning during the final hearings. CAPP will work with other intervenors in order to minimize the overall time required for cross examination.

It is clear that Enbridge Northern Gateway is planning tough cross-examination of the intervenors and their evidence:

Northern Gateway intends to cross-examine each of the authors of reports prepared for Interveners opposing the Project, and filed as written evidence. In some cases, the evidence filed with the Panel does not identify authorship, which makes it impossible to specify who will be cross-examined. Materials filed by certain interveners also include information collected through means such as access to information requests, which also makes it impossible to identify who might speak to such evidence if it is allowed to remain on the record.

Northern Gateway’s review of the written evidence filed by interveners has identified approximately forty five detailed reports that have been prepared for this proceeding. Reports of a more basic variety, those that provide general information on traditional use matters and reports of marginal relevance need not be subject to extensive cross-examination by Northern Gateway (if at all). Although no final decision has been made, for planning purposes the Panel should allot approximately twenty hearing days for cross-examination by Northern Gateway. Once a decision has been made on hearing venues and format, we will provide a more definitive estimate to Panel counsel and to counsel for the interveners involved. Where Northern Gateway does not consider it necessary to cross-examine a particular author, we will advise others of that so as to avoid unnecessary expense and inconvenience.

The Coastal First Nations are also planning tough cross-examination:

Coastal First Nations intends to cross-examine NGP, Transport Canada, Canadian Coast Guard, DFO, CEAA (as crown consultation coordinator and expert on environmental assessment methodology) and possibly the Government of B.C. These cross examinations will focus on risk assessment, spill response, measures to prevent incidents, and reduce risk of spills, consequences of spills, and Aboriginal consultation. Naturally, until the JRP approves the government participants we wish to cross-examine, and NGP identifies the witnesses they will present, it is difficult to determine the amount of time needed for cross-examination. It would likely take several hours of cross-examination for each party.

The Hasila say:

The Haisla Nation does not have any input into the proposed general schedule as set out above, but does question the two-month period provisionally allotted for the questioning phase in accordance with the revised Hearing Order. The Haisla Nation anticipates that the questioning phase will require substantially more than two months.

The Wet’suwet’en also object to the short notice given for the May 30 procedural meeting:

The estab!ishment of this regulatory process is insufficient to afford meaningful consultation to the Wet’suwet’en. We are hard pressed to try and prepare our hereditary leaders and clan speakers in such short notice, especially with a long weekend within the timeframe, some of our leaders and speakers are out on the territories preparing themselves for their summer traditional food gathering, and cultural activities. There is insufficient time given to the Wet’suwet’en for this process.

The Wet’suwet’en say (and this likely applies to other BC First Nations) that hearings as proposed could make it difficult to consult with elders saying “discussions with hereditary leaders and elders must take place, as per our custom…”

All of this comes as Prime Minister Stephen Harper and Natural Resoures minister Joe Oliver and many in the right-wing media want the hearings sped up, which means the May 30 meeting may be heated and any decision politically charged.

JRP filings from

Province of British Columbia (pdf)

Haisla Nation (pdf)

Enbridge Northern Gateway Pipelines (pdf)

EcoJustice (Living Oceans Society, Raincoast Conservation Foundation, ForestEthics Advocacy Sustainability Coalition) (pdf)

CAPP (pdf)

Coastal First Nations Great Bear Initiative (pdf)

Office of the Wet’suwet’en (pdf)

Government of Canada (pdf)

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.

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)

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

Shell 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 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

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)