Pipelines | Northwest Coast Energy News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Other points in the NDP letter were:

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

NDP BC news release

BC NDP caucus letter to Joint Review Panel (pdf)

NDP BC backgrounder on the Northern Gateway (pdf)

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

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

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

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

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

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

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

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

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

In a statement to the Commons, Hunt said

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hansard Links

I have taken the debate from Today’s Debates. It does not yet appear on the main menu

After April 25, you can search UK debates by date

Official site: Leveson Inquiry Culture, Practice and Ethics of the Press

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Terrace Chamber of Commerce, for example, said:

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

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

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

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

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

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

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

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

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

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

BC approves Pacific Trails Pipeline amendments

: A couple from Vancouver, who refused to give their names, unfurl an anti-Pacific Trails Pipeline banner at the British Columbia legislature in Victoria, Sunday, April 15, 2012. The man said he against all pipelines and that he was supporting the Wet’suwet’en First Nation. About 1,000 people marched through downtown Victoria to oppose the Enbridge Northern Gateway pipeline and coastal tanker traffic. (Robin Rowland/Northwest Coast Energy News)

The BC Environmental Assessment Office has approved an application to increase the capacity of the proposed 463 kilometre Pacific Trails Pipeline from the Summit Creek natural gas hub near Prince George to Kitimat.

The $1 billion pipeline project is crucial to the success of the KM LNG liquified natural gas export terminal at Kitimat, a partnership of Apache Corp., Ecana and EOG Resources.

The main thrust of the application was to increase the capacity of the pipeline to 1066.8 mm (42 inch) from the originally proposed 914 mm (36 inch). Pacific Trails will change the location of pump stations since the original proposal was for an import pipeline while now it is for export. There are also minor changes.

The proposal was generally considered pro forma since the main environmental review was completed under the original application approval in 2008 and the BC government was only considering the changes proposed by PTP.

The government report says officials were convinced that Pacific Trails would be able to handle problems with increased traffic and any potential risk involved in drilling under watercourses.

The Haisla submitted a number of technical questions about the impact of the larger pipes. While the BC Assessment office noted in its report that the Pacific Trails Pipeline is generally outside Haisla traditional territory, it is clear from the documentation that one of the Haisla concerns are any impacts on the Kitimat River watershed, as the questions concern the Stuart and Endako Rivers, the Morice and Gosnell Creeks and Weedene and Little Wedeene Rivers. The EAO ruled that the Haisla questions were outside the scope of the amendment or should be addressed in the “permitting process.”

Some Wet’suwet’en houses have been vocal in their opposition to the Pacific Trails Pipeline crossing their traditional territory, The Office of the Wet’suwet’en filed a strong objection to certain parts of the plan.

Given that the Minister of Natural Resources Joe Oliver and the federal government are now working to fast tracking all major resource projects, a comment from David de Wit, Wet’suwet’en natural resources manager is significant:

Fast tracking projects may result in overlooking important details [that] can have detrimental consequences. It is important to point out that the diligence required post-certification to ensure that impacts and effects on important resources are prevented or avoided is not satisfactory. This leaves the burden and legacy of any impacts to be borne by the Wet’suwet’en.

The letter goes on

We have invested considerable time and resources in the BC EAO review only to find that the level of detail required pre-certification leaves far too many unanswered questions critical for ensuring environmental effects and identification of potential infringements to our Title and associated rights from the project are avoided or minimized.

The EAO responded by saying the issues were covered by the original assessment and through the Oil and Gas Commission permit process. The letter from the Wet’suwet’en was, however, passed on to the Executive Director for further consideration

The Pacific Trials Pipeline, also known as the the Summit-to Kitimat pipeline will supply the Kitimat LNG project, a venture of the KM LNG partners, Apache Corp., Encana Corp., Apache Canada and EOG Resources. The $4.5-billion LNG terminal and facility will likely be operational by 2015, depending on how long it takes for the partners to line up Asian buyers.

Documents

BC Environmental Assessment office ruling on Pacific Trails Pipeline (pdf)

Wet’suwet’en submission to the BC EAO (pdf)

Hundreds protest in Victoria to stop the Northern Gateway pipeline and to protect “Mother Earth”

Anti-Enbridge protest in Victoria, April 12, 2012 — Hundreds of protesters march down Douglas Street in Victoria, BC, Sunday, April 12, 2012. The Day of Action Against the Enbridge Northern Gateway pipeline, also had a larger aim, organizers said, to protect Mother Earth. (Robin Rowland/Northwest Coast Energy News)

About a thousand people gathered in front of the British Columbia legislature on Sunday, April 12, 2012, for the Day of Action Against the Northern Gateway pipeline. But unlike protests, marches and gatherings here in the northwest of British Columbia, which are often tightly focused on the controversial pipeline and the associated tanker traffic and the potential dangers to northwestern BC, the protests in Victoria had a wider focus. Speakers on the steps of the legislature spoke, not only of stopping the pipeline and protecting the coast against tanker spills, but also of protecting “Mother Earth” and the wider BC environment.

The speeches on the steps of the legislature began with a group of children from the Oak and Orca Bioregional School in Victoria, who spoke of their fears for the future of the planet.

Lisa MerCure, who spent years searching for First Nations roots, only to discover her Cree family lives in Fort Chipewyan in Northeastern Alberta and are suffering from cancer. She spoke of the dangers from the bitumen sands development, from the tailing ponds and the effluent in the Athabaska River.

Other First Nations speakers spoke of the dangers to the rivers and coast of northern BC.

The recent announcement that Kinder Morgan would greatly increase the capacity of its pipeline from Alberta to the Vancouver area added new impetus to the protest.

After the rally at the legislature, the protesters marched along Douglas Street to Centennial Park for an afternoon of workshops.

Slideshow “Our Coast Our Decision” Signs of Protest

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nuxalk First Nation withdraws as Joint Review intervenor, Heiltsuk hearings end with more controversy

The Nuxalk First Nation at Bella Coola has withdrawn from the Enbridge Northern Gateway Joint Review process. Both the hereditary chiefs and elders and the elected council say the federal government “has already predetermined its approval of the project.”

A release from the Nuxalk says their withdrawal “withdrawal is another sign that the federal government is mishandling its relationship with First Nations, including its statements last week that it will change the rules for the Enbridge pipeline hearings retroactively, which is unfair and will likely further compromise the regulatory review.”

“There is no honour in the federal Crown’s approach to consulting with First Nations on the Enbridge project,” says Andrew Andy, the elected Chief of the Nuxalk Nation. “Recent statements make it clear that the Prime Minister has already decided to approve the super-tanker project that would violate First Nations’ Title and Rights and put our coastal waters at risk of a major oil spill.”

The Nuxalk support the decision of other Nations to oppose the process through the Joint Review Panel, but say the review is not being done in good faith and has been undermined by repeated and controversial public statements by the Prime Minister and Natural Resources Minister that suggest a predetermined approval.

“Despite our serious concern about this process, including the lack of any decision-making role for First Nations, we entered the process in good faith,” says Andy. “The government’s disrespectful behaviour these past months makes clear that our good faith is not being returned.”

“How can we participate in a process driven by a government that has labelled us ‘socially dysfunctional’?” says Charlie Nelson, a Hereditary Chief of the Nuxalk Nation, referring to recent controversial statements by Natural Resources Minister Joe Oliver. “Where is the honour in the Crown stating that it’s prepared to violate our constitutionally-protected Title and Rights before the work of gathering information on the scope of infringement is even done?”

The Nuxalk say the Joint Review Panel has no mandate to consult with First Nations, and there has been no clarity provided by the federal government about how it will consult on issues that fall outside of the Joint Review Panel process.

Meanwhile, hearings in Bella Bella ended on Thursday afternoon, with more controversy as they did at when they opened late on Tuesday. Hearings were delayed after a peaceful community demonstration Sunday against the proposed Enbridge project with drumming and singing at the airport. That delay cut one and half days from the hearings and as they ended today, numerous tweets from Bella Bella described how the Joint Review Panel told the Heiltsuk Chief Counsellor Marilyn Slett to “move on” after which some audience members walked out in protest. Later tweets said that a number of speakers were not able to testify and those tweets called that “shameful.” The tweets say that demonstrators followed Joint Review Panel and staff as they left for the Bella Bella airport.

Alberta Oil magazine describes Kitimat LNG projects as high stakes poker

It looks like the Chinese curse (and journalist’s blessing) “May you live in interesting times,” has come to Kitimat, especially when it comes to selling LNG to Asia.

In the past months the world liquified natural gas market has become more volatile with increased competition across the globe and, in some cases, political factors adding to the molecule mix.

In the past few days, Alberta Oil magazine has published a series of articles on the Kitimat LNG projects, describing the projects as a high stakes poker game.

The point is that the potential Asian buyers for BC (and US) liquified natural gas want a secure supply and they’re not sure what is going on on this side of the Pacific.

That’s apparently why the first project, KM LNG, has put off the final go ahead project from the first quarter of 2012, as originally expected, to the now likely the fourth quarter of 2012.

That has left a lot of uncertainty in town, despite assurances from two of the KM LNG partners, Apache Corporation and EOG Resources that they are optimistic that there will be a deal with Asian gas buyers, even if it means Asian equity in the KM LNG project.

That uncertainty in Kitimat has led to widespread rumours, none substantiated, that the three proposed projects, by KM LNG, by the Houston-Haisla BC LNG partnership and Shell, may be consolidated in one way or another.

At Kitimat council on Monday, April 2, Mayor Joanne Monaghan said “There has been a rumour around recently that Apache is stopping their working for a year and I talked to the CEO, Tim Wall, yesterday and he assured me that that was not true.”

Work is continuing on the KM LNG site at Bish Cove.

This morning, April 5, 2012, Alberta Oil reported that EOG Resources boss still bullish on Kitimat LNG, quoting a company called Bernstein Research that met with EOG’s top executive, CEO Mark Papa, who told Bernstein that EOG considers its 30 per cent holding in KM LNG as a “core holding.”

In a Thursday research note, Bernstein’s Bob Brackett says EOG is willing to sell some of its stake in the Kitimat project to a buyer (likely of the Asian persuasion) looking for equity in the upstream portion of project. “EOG expects to dilute a portion of its stake for that purpose,” Brackett writes.

A day earlier, Alberta Oil reported in Global LNG players jockey for space on a crowded field noting that Australia’s LNG megaprojects are facing competition from North America and cost inflation as the number of projects increase. At the same, US LNG projects are trapped in the current mire of US politics, with many politicians wary of the energy-starved US exporting natural gas.

In Apache Canada makes global push amid fierce competition, the article that uses the poker analogy, the magazine quotes Asish Mohanty, senior research analyst, global LNG, with Wood Mackenzie

Kitimat is due to start pumping out five million tonnes of LNG by 2015, widely viewed as a market “sweet spot” because it beats a number of major Australian projects – among them Shell’s massive Prelude endeavor – into production. “It’s a bit of a race,” Mohanty at Wood Mackenzie says. “The general impression in the industry is that before these Australasian projects start up it’s going to be a sellers’ market.”

Mohanty also looks at the problem of cost inflation and limited resources, a problem Kitimat already faces with not only the three proposed LNG projects but RTA’s Kitimat Modernization Project.

Companies that specialize in engineering, procurement and construction of liquefaction facilities number fewer than 10 internationally, Mohanty says. He expects many of them will be kept busy by construction of several LNG projects underway in northwest Australia, including ongoing work at the massive Gorgon plant at Barrow Island. The Chevron-led venture is due to begin pumping out 15 million tonnes of LNG annually by 2014-15. “All of these are massive projects,” the analyst says. “What that means is order books are pretty full. There is a scarcity of resources in places like Australia right now.”

The shortfall could potentially squeeze Canadian LNG forays. “The fact that most of the B.C. facilities are going to be ‘green-field’ will not make it easy for them to meet a timeline compared to a lot of others.”

Related CBC News Mackenzie Valley pipeline funding reduced