Tag: Stephen Harper

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:

Cheryl Brown
Cheryl Brown of Douglas Channel Watch speaks to District of Kitimat Council on May 7, 2012 (Robin Rowland/Northwest Coast Energy News)

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)

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

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

Nathan Cullen
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.”

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.

 

Editorial: Pipeline politics are now hyperlocal. Government and energy companies must deal with it.

There’s a glaring misconception in the move by Stephen Harper’s government in Thursday’s budget to speed up the review of resource projects, including the Northern Gateway Pipeline. The government wants reviews to last between 12 and 24 months and to avoid duplication between the federal and provincial governments. The buzzword is “one project, one review.”

The misconception is that natural resource reviews can go on as they have since the 1980s when the deregulation craze made any kind of resource hearing, especially those before the National Energy Board, into a private club for the oil patch, government and energy lawyers. NEB hearings are plagued by arcane rules of procedure and evidence that were, probably in an “out of mind out of sight” way, created to exclude the public. The public, despite the consultation mandates of the review agencies, didn’t really matter a damn. It is likely with the changes brought in by the Harper government, with its vocal hostility to the environmental, the public will matter even less.

A second misconception promoted by the government, by right-wing think tanks and supported by a lot of the media is that the Northern Gateway Joint Review Panel has been sort of hijacked by the green movement with sole purpose of delay, delay, delay.

The problem is that none of these people, not Finance Minister Jim Flaherty, not the Prime Minister, not the columnists, nor academics for universities or think tanks have attended many (or any) of the hearings or read the transcripts. They don’t look at the lists of intervenors, those who have said they want the opportunity for a 10 minute comment or filed letters of comments.

What has changed in just the last five years or so, just as Northern Gateway was getting underway, was the rise of social media, blogging, Facebook, Twitter, YouTube. The widespread use of social media means that despite the efforts of Stephen Harper to stifle opposition, pipeline hearings now and in the future will be governed by —let’s call it the “British Columbia Spring.” If the hearings are curtailed by the government, social media isn’t going away and those opposed to the pipeline will simply find ways to escalate their protests.

It’s not green manipulation that is delaying the hearings, it is that pipeline hearings have become “hyperlocal”* as social media makes everyone aware of what’s going on. That means that each neighbourhood, each village, each block, each wharf now know how a pipeline will affect their lives. This applies to the First Nations across the pipeline route and down the coast; anyone who drives BC’s highways and sees avalanche gates and avalanche warnings; commercial salmon, halibut and herring fishers; the ailing forestry industry. It’s not just BC, it’s a farmer in Nebraska, a rancher in Texas, a homeowner in Michigan, a shrimp fisher in Louisiana. Their worries are available on Google, Facebook, Twitter in a way that wasn’t possible just a few years ago, when stories about NEB hearings were buried in small paragraphs on the back pages of the business section of a newspaper.

Although the right-wing media loves to concentrate on a couple of people from Brazil who may or may not have signed up inadvertently, the vast majority of the 4,000 people who are scheduled to speak before the Joint Review Panel are vitally concerned about strictly local issues. Scheduled to speak is now the operative term because it is likely that the Harper government will cut off the opportunity to speak, and that will only further decrease the already shaky credibility of the Joint Review Panel with the people of British Columbia directly affected by the Northern Gateway.

One of the most perceptive academics in the energy field, economist Andrew Leach (albeit based at the University of Alberta) led a discussion on Twitter opening it with this question

Can anyone provide a single piece of evidence that longer environmental processes, beyond a certain point, yield higher quality evaluation?

Again, no evidence of this beyond a certain pt. Long process often cited as evidence of sound analysis, but two are not same.

IMO, there’s no reason that, w proper resources, you could not fully assess impacts & set appropriate conditions for major projects in 2yrs.

Context: NGP JRP decision is expected now at the end of 2013, roughly 4 years after hearing order issued, but <2 yrs after first hearings.

Leach makes two shaky assumptions.

The first assumption is that the hearings can come up with a quality evaluation and sound analysis. But a quality evaluation, sound analysis for whom? For the private club that the NEB has been for the past quarter century? Sound analysis from a government that muzzles its own scientists and cuts funding for proper research and now wants to have the Canada Revenue Agency harass its environmental opponents? As the responses by First Nations and local groups to the filings by Enbridge show, counter analysis often takes years of research and lots of money. Sound analysis if the opponents are given limited opportunity to respond to a proposal?

The second assumption is that the current and future hearings are going to be fair, independent and transparent. In his conference call yesterday with local reporters, Skeena Bulkley Valley MP Nathan Cullen said the Joint Review and future hearings are “rigged,” predicting that “people won’t stand for this” and it “will only hurt the company it’s supposed to protect.”

The panel has already heard a large number of intervenors in various communities across the northwest tell them directly that the process has no credibility. The decision by the Harper government to speed things can only increase the belief that the hearings are unfair, are rigged, that building the pipeline is a foregone conclusion.

Or quality evaluation for the people directly affected?

Testimony before the Joint Review Panel has been about hyperlocal issues, the state of an estuary, the legacy of the poisoning of a stream by now defunct paper mills, one aboriginal family’s traditional trapline, the shellfish beds polluted by the Queen of the North sinking, the danger to culturally modified trees, the fact that the pipeline will bring no more than a handful of jobs to British Columbia, while endangering thousands fishing and tourism jobs. You might want to call that “Not In My Back Yard” but then the Calgary water supply won’t be out of operation for four years as could happen in a worst case scenario for the Kitimat River in case of a pipeline breach along the river or its tributaries.

If the public believes that future hearings are not “quality evaluation” but rigged in favour of the energy industry, then there will be resistance there as well. What kind of resistance the decision will bring remains to be seen. But that resistance, whatever form it takes will likely also be a factor in any future resource hearings.

Then there is the question of jobs. There just aren’t going to be that many jobs in British Columbia from the Northern Gateway pipeline. First Nations communities, in the unlikely event they agreed to a pipeline, will see no long term benefit from temporary construction jobs. How many Canadian jobs will there be, if the rumours that been circulating in Kitimat for months now are true that PetroChina will build the pipeline? ( recently somewhat confirmed by the Financial Post, although also characterized by Enbridge as speculation)

Don Cayo, writing this morning in the Vancouver Sun says

But the biggest deal in the budget by far, at least as far as the West is concerned, has nothing to do with spending. It is the intention to clean up, at long last, the snarl of red tape that has become such an impediment to development in the resource sector….

it’s a spurious argument to try to link the efficiency of the regulatory process and the fairness of it. “Slow” is not a synonym for “good” nor is “faster” another word for “worse.” It does immense harm to the economy and no good to anyone at all, as history proves, to have a Byzantine process that is obscenely expensive for both the public and private sectors.

Nor is the pipeline the only project in need of fair and reasonably fast assessment. The West in general and B.C. in particular are awash in potential projects — mines, energy developments and more — and we’ll all be better off knowing sooner rather than later which ones are appropriate to move forward.

This simply shows that the advocates of the fast track process don’t get it. They are stuck in the small c conservative mantra of cutting “red tape.” There have been no recent changes in the red tape. The National Energy Board procedures, as I said, are already unfriendly to the ordinary public.

What has changed is that with the web, with social media, the people directly affected, who in the past would have been frozen out of the procedures by lack of communication, are now participating to the fullest extent possible, using information gleaned from the web and empowered by social networks. That isn’t going to change.

As much as the Conservative government believes it control the agenda, and the procedures of the resource hearings, it can’t. All it takes for a hearing to be overwhelmed is a lot of concerned residents, acting on their own, not pushed by ENGOs, prodded by a single e-mail, Tweet or Facebook post.

It may be that the energy industry, a decade from now, will regret what they wished for, a fast track process that is actually bogged down in all the kinds of court challenges that lawyers can work up, regional and municipal zoning barriers, sympathetic bureaucratic delays at the provincial level, civil disobedience, including blockades on land and sea bringing Canada a growing international media black eye, beyond the current impression of the bitumen sands as Mordor. As much as Harper may not like it, if an Oscar-winning star is arrested at a pipeline blockade it will be international news.

To use a a current analogy, with the centenary of the sinking of the Titanic approaching, the Steerage passengers are now demanding a place at the First Class table, along with the haughty oil barons, the high priced lawyers and holier than thou consultants. Stephen Harper and Jim Flaherty may close some of the gates between Steerage and First Class, but eventually the Third Class passengers will find a way to the upper decks.

(Every time someone from Enbridge at a Kitimat meeting says how safe the oil tankers and their escorts will be, one audience member always brings up the Titanic in a question and answer session)

Notes

1. *What is hyperlocal?

Hyperlocal is usually a term in online journalism, referring to coverage of a specific neighbourhood. In some ways, Northwest Coast Energy News, based in Kitimat is a hyperlocal site. That is why it is easy to recognize the hyperlocal nature of those who testify at the Joint Review Hearings. It can be as hyper hyper local as the pipeline crossing a skiing/hiking trail.

For a longer, somewhat academic definition of hyperlocal, the Wikipedia entry may be valuable.

2. Scope creep and dismissing local concerns

In a paper for the conservative C. D. Howe Institute, Leach’s colleague Joseph Doucet, Interim Dean of the University of Alberta School of Business, UnClogging the Pipes; Pipeline Reviews and Energy Policy, complains about what he calls “scope creep” in NEB hearings and says:

It is not simply not efficient or effective to attempt to solve broad, far-reaching societal challenges such as First Nations land claims or greenhouse gas emissions policy through individual project reviews.

and concludes

Regulatory review should focus on relatively narrow project definitions consistent with the impacts of the project , including its relevant costs and benefits and the scope of the activity of the proponent, Other issues, broader and more general in nature should be dealt with in statue or in policy, not in regulatory review.

There is one thing missing in Doucet’s analysis. The “scope of activity” of people directly affected by a pipeline project. What he calls “scope creep” has occurred due to the rise of public awareness due to the web and social media. In his paper, the lives of the local residents and hyperlocal issues are simply written off.

Doucet ignores that fact this government’s policy, while spinning respect for the environmental issues in single paragraphs, is to bulldoze the pipeline across BC, no matter what the consequences. On one hand, the Harper government pushes the pipeline as a gateway to Asian markets. On the other hand, with the $80 million cut to the Department of Fisheries and Oceans, with cuts to Environment Canada and support for independent environmental research, cuts to the Canadian Coast Guard, the policy is clear, the Harper government is ignoring the potential catastrophe from an oil pipeline breach or tanker disaster.

Enbridge Northern Gateway, on the other hand, does have contingency plans for such events, but at meetings in Kitimat, even Enbridge officials have expressed public scepticism about how much government support there could be in the event of a disaster.  In fact, if the Harper government had more respect for the environment and actually had plans to counter a potential disaster, there likely would be less opposition to the Northern Gateway.

The only way to have any check and balance on the Harper bulldozer is to have an effective, thoroughly independent and wide ranging inquiry process, not a narrow one aimed at tweaking regulations.

 

 

Douglas Channel Watch calls on Kitimat council to “get off the fence”

The environmental group, Douglas Channel Watch, Monday, Feb. 20, called on the District of Kitimat Council to “get off the fence” and oppose the Enbridge Northern Gateway pipeline.

Dieter Wagner, spokesman for Douglas Channel Watch, addressed the council at its regular meeting. His call came after both Terrace Council and the Skeena Queen Charlotte Regional District voted to oppose the controversial pipeline that would carry bitumen from Alberta to the port of Kitimat and condensate back to Alberta.

The council listened to Wagner’s presentation but took no action, despite calls at the close for a referendum on the issue.

Dieter Wagner
Dieter Wagner addresses District of Kitimat Council, Monday, February 20, 2012. (Robin Rowland/Northwest Coast Energy News)

“Our group and many others can’t quite comprehend why our mayor and council hold the position of neutrality regarding the Northern Gateway. We are requesting you to abandon this position and officially oppose this project,” Wagner said. “Few places tend to lose as much as Kitimat does from the inevitable dilbt spill, either in our river system or our marine environment.”

(“Dilbit” is the industry term for “diluted bitumen.” The pipeline from Alberta will carry oil sands bitumen but for it flow through the pipeline, it must be diluted using a form of refined natural gas called condensate.)

Wagner said that most of the “massive amount of information available on everything concerning this project” is negative. He warned that some documents said there is even a risk of death and injury if humans are exposed to dilbit. He also said that in his view, neither Enbridge nor any level of government have given people enough warning and education abut the effects of a dilbit spill.

Wagner returned to a point made time and time again by Douglas Channel Watch, that is often the local people who detect pipeline spills, sometimes by smelling them, not the sensors used by Enbridge. He cited the case of the Enbridge pipeline breach at Kalamazoo, Michigan, where the spill was reported by calling 911 to local police, rather than by Enbridge’s Edmonton control centre.

Wagner pondered who would detect such a spill on the Kitimat River where there is nobody to report it.

“We are concerned who would detect a spill along the Kitimat River, especially in winter time,” he said. “If there is a spill in the upper Kitimat River, no one will know about it until it gets way down here.”

He maintained that the Gateway project has not adequately addressed the issue of emergency response along the water courses, a point that Enbridge would certainly dispute, given the thousands of pages of documents it has filed with the Joint Review Panel concerning emergency procedures and contingency plans. (For example, Douglas Channel Watch recently objected to an Enbridge plan to burn the Kitimat estuary if there was an oil spill there)

Wagner then turned to the sinking of the cruise ship Costa Concordia off Italy. “The latest technology is no absolute safeguard against a shipping disaster,” he told the councillors. “Cruise ships are normally really well equipped to take care of thousands of people. No technology has yet been invented to deal with human error. Many of these things are due to human error, not equipment failure.”

He quoted the Polaris Institute which he said has found there were 204 spills in Enbridge pipelines from 1999 to 2010, spills which leaked 169,000 barrels of oil into the environment.

Wagner then turned to the growing controversy over the credibility of the Joint Review Process, especially due to political interference by Prime Minister Stephen Harper and members of his cabinet.

“We believe it is better to be proactive to influence the JRP, rather than wait for their decision,” he said’ “When they have made their decision, it is no good, it [ a decision by Kitimat] has to be done before, by making it known that our community does not support this project.”

“The impartiality of the JRP is already threatened by the federal and provincial government officials. Mr Harper in China has already said this project is gong to go ahead and you’re going to get yours, so why are we having the JRP hearings?

“We believe that the management of large corporations and foreign political interests are not in the best interest of our community; the environmental movement has been labelled as enemies of the state by Prime Minister Harper and [Natural Resources] Minister [Joe] Oliver.

Wagner added that support “for these so called radicals, so called enemies” is growing, as seen through growing contributions to the environmental groups.

“When our government labels every day citizens who are actively participating in democracy and its processes, we feel that we need to speak out against that and to address the serious levels of interference we face on the issue,” Wagner said.

“We believe not in the risk of a spill we believe that a spill is a certainty.”

He concluded by saying that in the pre-election all candidates meeting last fall, new councillors Mary Murphy and Edwin Empinado had backed calls for a referendum on the pipeline issue.

Mary Murphy
An angry Councillor Mary Murphy listens to accusations from Dieter Wagner that she broke an election promise. (Robin Rowland/Northwest Coast Energy News)

Wagner then pointed to the vote by council not to take any decisions until after the JRP report, adding:  [New councillors] “Edwin Empinado and Mary Murphy backed down from this promise at the last council meeting. I wonder if this is something they learned from Ex-Premier Gordon Campbell; that this intended to be a promise not kept.

“We ask you to abandon the official position of neutrality.”

(Wagner was referring to an election promise by former premier Campbell not to introduce the HST, which lead to a political campaign to rescind the tax, ending a successful anti-tax referendum and the end of Campbell’s tenure as premier of British Columbia)

The partisan audience, many members of Douglas Channel Watch or supporters, applauded, while Mayor Joan Monaghan admonished Wagner for “knocking down our council.”

Murphy then responded by saying.“ We all debate. Once we became councillors, we represent everybody in the town, not just one particular group,” she said. “We represent every citizen in Kitimat now so personal opinions,” Murphy said.

She then pointed that Haisila Chief Counsellor Ellis Ross told the JRP on the first day of hearings that he would wait for the JRP to make their decision. What Murphy did not mention was that the federal government has told the Haisla and other First Nations that the constitutional mandated consultation with First Nations will not take place until after the JRP report. That means that it would be a bad tactic for First Nations directly affected by the pipeline to make any decision until after the report that could affect those consultations.

As the council moved on to other business, there murmurs of dissatisfaction from the audience with cries of “referendum” and “why did I vote for her?” (referring to Murphy). Most of the Douglas Channel Watch supporters then left the chambers.

 

 

 

Links: Harper, in China, vows to push Northern Gateway while attacking “foreign influence”

Reuters and Bloomberg both report from China that Prime Minister Stephen Harper has said in Guangzho  that his government is “committed to ensuring” that the Northern Gateway project went ahead.”

Reuters Canada PM vows to ensure key oil pipeline is built.

Bloomberg Harper Says Canada Committed to Selling More Oil to China

The Toronto Star took a slightly different approach, headlining, Harper in China: PM blasts foreign money in oilands debate while welcoming China  Harper used a keynote speech….  to slam the “foreign money and influence” behind critics of Canada’s oil sands even as he welcomed Chinese investment in Canada’s energy sector.

The Bloomberg story also quotes Harper  on foreign influence, but far down in the story, reporting Harper as saying: “Will we uphold our responsibility to put the interests of Canadians ahead of foreign money and influence that seek to obstruct development in Canada.”

Reuters casts doubt on the integrity of the Joint Review Panel process by saying: “An independent energy regulator — which could in theory reject the project — last month started two years of hearings into the pipeline. In remarks that appeared to cast some doubt on the regulator’s eventual findings, Prime Minister Stephen Harper said it had become “increasingly clear that it is in Canada’s national interest to diversify our energy markets”.

China frustrated

Earlier The Globe and Mail quoted Enbridge CEO Pat Daniel as saying: “Chinese oil executives are growing frustrated with regulatory delays in plans for the Northern Gateway pipeline… Daniel said despite keen interest here in Canadian oil and gas reserves, this seemingly made-in-heaven match is threatened by delays in the company’s efforts to establish a $5.5-billion, 1,177-kilometre pipeline to carry bitumen from Alberta’s oil sands to a deep sea port at Kitimat, B.C. “They’re frustrated, as we are, in the length of time it takes…They’re very anxious to diversify their supply, they’re very dependent on the Middle East for crude.

 

Terrorism

Meanwhile the Minister of Public Safety, Vic Toews, on the official public safety website, lists “environmentalism”  (along with white supremacy, animal rights and anti-capitalism) in an official report on terror threats to Canada,  Building Resilience Against Terrorism: Canada’s Anti-Terrorism Strategy.

Foreign Funding

According to The Edmonton Journal, the Conservative MP for Fort MacMurray, Brian Jean “called for federal legislation that would both block foreign funding of the “radical” Canadian environmental movement and lessen the possibility outsiders are directly paying aboriginal chiefs to oppose major projects, such as the Northern Gateway pipeline.”  See Alta. MP wants law to block foreign funding of environmentalists

Update:  Peter O’Neill writing in The Vancouver Sun, has more details on Brian Jean’s accusations, including transcripts from Hansard in Tory MP Brian Jean’s corruption warning — the full story

 Why did I write about this? I’ve heard completely unsubstantiated allegations relating to the efforts made to advance and oppose Enbridge Inc.’s pipeline. This was the first time I heard a politician raise this publicly, and I decided to write a story about it. I asked him if he’d be surprised if the Chinese government, which has a huge interest in Northern Gateway going ahead, might also be tossing money at First Nations to support the project. He wouldn’t touch that one.

The upshot? I think Jean’s assertion brings some whispers out of the shadows. And I think his comments might play well to the Conservative base. One of my most abrasive fans accused me of being a “shameless shill for big oil” because I quoted Jean on the matter.

Kitimat key to Canada’s future relationship with China, Asia Pacific Foundation says

Asia Pacific FoundationAn editorial published today by the president of the Asia Pacific Foundation of Canada says that the media concentrating on Prime Minister Stephen Harper’s trip to Beijing has it wrong, the key to the relationship between Canada and China is in Kitimat, not Beijing.

Yuen Pau Woo
Yuen Pau Woo (Asia Pacific Foundation)

In the editorial, President’s View, Future of Canada-Asia Energy Relations in Kitimat , foundation president Yuen Pau Woo reflects on a recent visit to Kitimat where he met representatives of the First Nations, industry, and municipality.

Woo says: “Kitimat’s livelihood depends on trade with Asia and the community knows it.”

The editorial lists such projects as the Kitimat modernization porject at the Rio Tinto Alcan, KMLNG’s Kitimat LNG project, other proposed LNG projects, “sharply increased vessel traffic through the Douglas Channel” and, of course, the proposed Enbridge Northern Gateway pipline.

Woo’s key paragraph reads:

The future of Canada-Asia energy relations is not about Beijing; it is about Kitimat. It is in this remote coastal community that the confluence of Asia’s growing economic clout, Canada’s abundance of natural resources, the livelihoods and economic aspirations of First Nations, the challenge of supporting rural communities, and the pristine environment of the Canadian wilderness have created conditions that demand new forms of partnership for a sustainable future.

Woo says that “the Alcan Modernization Project and the Kitimat LNG Plant are excellent examples of community and First Nations consultation and collaboration that have so far yielded positive results,” without mentioning how long it took to come to those agreements; the decades of problems outlined by Haisla leaders before the Joint Review Panel, and that the current agreements are just the start to redress those problems.

On Northern Gateway, Woo concludes:

The challenges facing the Northern Gateway Pipeline project are of a different order of magnitude, but even on this most contentious of projects, I would not underestimate the capacity of stakeholders to find a uniquely Canadian solution that is based on mutual benefit, compromise, and the long-term good