Prince George Free Press - Northern Report - December 2013

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Serving Northern British Columbia DECEMBER 2013DECEMBER 2013

LNG -NEW ECONOMY?

A look at what drives the economy of northern B.C.

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A2 Prince George Free Press - DECEMBER 2013 Special Edition: The Northern Report

Prince George Free Press - DECEMBER 2013 A3 Special Edition: The Northern Report

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Artist’s rendering of proposed liquefied natural gas plant near Kitimat.

Sinopec joins LNG rush..........................................A4

Ottawa to examine four LNG projects....................A4

Province thrilled at NEB ruling................................A4

TransCanada proposing two projects...............A5

Initiatives Prince George sees growth.....................A6

Premier pitches LNG in Asia............................. A7

What’s the rush on LNG?: Chiefs ..................... A9

LNG is the new LSD ........................................... A10

Leading standards for liquefi ed natural gas ......... A11

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Economic impact of pipelines.................................B6

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Chinese petrochemical giant Sinopec, another Japanese player and an unidentifi ed Indian company are joining the interna-tional move to explore liquefi ed natural gas exports from northern B.C., says Rich Coleman, B.C.’s minister for natural gas development.

Sinopec, ranked the fi ft h largest global company in 2011, is looking for LNG im-ports equivalent to the output of the world’s second largest LNG terminal, Coleman told reporters as Premier Christy Clark began a trade trip to Asia.

Another new player is Idemitsu Kosan Co., the second-largest petroleum refi ner in Japan, which is applying for a federal export permit in a partnership with Calgary-based AltaGas called Triton LNG.

China National Overseas Oil Company and its new subsidiary Nexen has put up a non-refundable deposit of $12 million toward purchase of provincial land on the north side of Grassy Point near Prince Rupert, Coleman said. Another unidentifi ed company has shown interest in the south side of Grassy Point.

Th e new proposals add to a lineup of international investment proposed by Petro-nas, Chevron, Shell, British Gas and others, which are expected to make fi nal invest-

ment decisions in 2014.Coleman said the tax rate for LNG

producers is to be presented to companies

by the end of November, but it may not be public until the B.C. government tables its budget in February.

Sinopec joins LNG rush in B.C.Tom FletcherBlack Press

Ottawa is going to take a look at four applications for licences to export liquefi ed natural gas, following the National Energy Board’s decision.

Th e applicants are Pacifi c NorthWest LNG, Prince Rupert LNG, WCC LNG and Wood-fi bre LNG.

“Following the National Energy Board’s decisions on four applications for licences to export liquefi ed natural gas, the federal government will now review the NEB’s decisions,” said Natural Resources Minister Joe Oliver.

“Subject to regulatory approval, the Harper government supports energy projects that will create jobs and generate economic growth in Canada for future generations.

“Our government will only allow energy projects to proceed if they are found to be safe for Canadians aft er an independent, science-based environmental and regulatory review.

“With our plan for Responsible Resource Development, we have increased the protec-tion of the environment, streamlined regulatory reviews and are aggressively working to reach new markets for Canadian natural resources. Federal cabinet approval is required before the licences can be issued by the National Energy Board.”

Federal cabinet to examine fourLNG licence applications following NEB ruling

Th e province is certainly enthused about the National Energy Board approval of four LNG projects in British Columbia.

“Th ese export approvals mark a major milestone in our eff orts to create jobs and grow our economy by leveraging our abun-dant supply of natural gas,” said Deputy Premier and Minister of Natural Gas Development Rich Coleman, in a press re-lease. “Now that the NEB has approved the applications, we look forward to a timely decision from the federal government so that we can ensure these companies are po-sitioned to make fi nal investment decisions as quickly as possible.”

Th e four applications approved by the Na-tional Energy Board were:

• Prince Rupert LNG Exports Ltd., pro-posed by the BG Group.

• Pacifi c NorthWest LNG Ltd., proposed by PETRONAS/Progress Energy.

• WCC LNG Ltd., representing Imperial Oil and ExxonMobil Canada Ltd.

• Woodfi bre LNG Export Pte. Ltd., pro-posed by Woodfi bre Natural Gas Limited.

Th ese four submissions will now be reviewed by the Government of Canada and remain subject to approval by the Governor

in Council.Th e NEB is an independent federal

regulator of Canada’s energy industry. Its purpose is to regulate pipelines, energy de-velopment and trade in the Canadian public interest.

According to the province:• Prior to these approvals, the NEB has

issued export licences to three other LNG proponents:

• A 20-year export licence was approved in February 2012 for the Douglas Chan-nel Energy project (Texas company/Haisla Nation/Golar LNG and an investor to be named later).

• A 20-year licence was granted in Oc-tober 2011 to Kitimat LNG (Apache Corp. and Chevron Canada).

• LNG Canada (Shell and co-venture partners) received an export licence in February 2013.

• If fi ve LNG facilities move forward, the cumulative gross domestic product benefi t to British Columbia could total $1 trillion by 2046, according to the province.

• LNG export operations in B.C. could create over 100,000 new jobs in British Co-lumbia and new revenues for government.

Province thrilledat LNG approvals


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Beijing is ringed by eight or nine coal-fi red power plants.

It’s part of the reason the city has such smog issues.

China also has a burgeoning middle class. John Dunn, vice-president Trans–Canada Pipeline, Prince Rupert Gas Transmission who was on the premier’s November trade mission to Asia, said they were told that about 350 million Chinese (roughly the population of the United States) will move to cities in that country by 2025 and 150,000 more Chinese will enter the middle class.

And, as elsewhere in the world, the mid-dle class puts demands on government.

“Th ere is an increasing appetite in Asia for clean-burning natural gas,” Dunn said at a North Central Local Government As-sociation lunch in Prince George Decem-ber 13. “Th ere are strong demands that China wean itself off of coal.”

In other words, the provincial rush to get into the liquefi ed natural gas business is not a pipe dream. Asia’s thirst for natu-ral gas is only going to increase.

“Th e LNG business is truly a global business,” he said. “It’s not just a big business, but it is a global business. Th e companies that are involved are not just big energy companies, they are the biggest companies in the world.”

TransCanada Pipeline’s role in all that is just a small portion of the global busi-ness. But in terms of British Columbia, and the North in particular, it’s pretty big. TransCanada operates more natural gas pipeline than anyone else in North America with about 68,000 kilometres of high-pressure gas transmission lines.

Th e company is proposing to build another 1,600 kilometres in two pipelines across northern B.C.

“When it comes to natural gas transmis-sion, we would argue that no one does it better,” he said.

TransCanada, which has been operating in B.C. for more than 50 years, is also Can-ada’s largest private generator of power, cranking out about the same amount of power as BC Hydro.

“One-third of that is generated from renewables,” he said.

Currently, LNG from British Columbia and Alberta is distributed specifi cally to the North American market, which is about to change.

“Moving gas to the coast and then put-

ting it into LNG vessels and taking it into the global market, is very much a natural evolution of what TransCanada has been doing, for years,” he said.

TransCanada is proposing two projects designed specifi cally to enter that global market.

Th e Coastal Gaslink project will pipe natural gas from northeastern B.C. to Kiti-mat. It will, when in full operation, deliver 3.6 billion cubic feet of gas per day.

The Prince Rupert Gas Transmission Project will ship natural gas from Hud-son’s Hope to Port Edward near Prince Rupert. It will supply Petronas’ facility and will also be 3.6 billion cubic feet per day.

“Th ese are very, very substantive lines,” he said.

Between the two … about $12 billion investment in the North.

Bill PhillipsNorthern Report

TransCanada looks globally

Teresa MALLAM/Free PressJohn Dunn, vice-president TransCanada Pipeline, Prince Rupert Gas Transmission speaks at a North Central Local Government Association luncheon in Prince George.


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Prince George is on track for major economic expansion in the next fi ve to 10 years, according to Initiatives Prince George.

Th e city’s economic development corporation, which aims to diversi-fy the economic resources of Prince George to help create resiliency and growth over time, is eyeing growth in all the region’s industrial supply sectors due to the $70-plus billion of resource and resource related projects planned and underway in the north.

“We are the largest city [in the north] and one of the fastest grow-ing regions in the country. All of the drivers of our economy remain the resource sectors and our supply chain within those areas … the people that supply and service the industrial and resource indus-tries are going to continue to see growth,” said Heather Oland, CEO of IPG.

One of the encouraging indica-tors of a healthy economic future is when small to medium businesses are investing in themselves, accord-ing to Oland. Businesses capable of hiring more staff or expanding because they are com-fortable that they will still be lucrative in fi ve years is a big change in Prince George from 10 years ago.

“[Businesses] used to work as hard as [they] could while the work was here, but that’s not the case anymore. Busi-nesses are investing in themselves,” said Oland.

As Prince George and northern B.C. grows, the advantages to relocat-ing here expand as well, due to improvements to educational opportuni-ties, amenities, and the cost of living.

“You can go from kindergarten to a PhD [in Prince George]; we [have] great trades train-ing facilities; aff ordable housing options; green spaces; two performing theatres, said Oland. “[Th ose] are things that people look for when considering a move to a city.”

Th e one area that is still in the beginning stages of expanding is the entrepreneurial aspect of the workforce.

“Increasing the services that we off er to the young startups is defi nitely growing, but I think that would round out the off erings that we have for people,” said Oland.

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Premier Christy Clark attends reception for participants in a two-week Asia trade mission in November. About 200 people visited China, Japan and Korea.

Premier Christy Clark set off last month on her fourth trade mission to Asia, after sidestepping questions about the environmental impact of liquefied natural gas export plants on the Kitimat-area environment.

A new report from environment group Skeena Wild concludes that if three LNG processing plants are built to burn natural gas for compression and cooling – what the industry calls direct drive – they would use two and a half times more gas than Metro Vancouver. The report calls for modern gas-fired power plants to be built out-side the narrow Kitimat Valley to reduce the impact of sulphur dioxide and other pollutants that affect air and

water quality.Speaking to reporters at Vancouver airport, Clark re-

jected the report’s claim that the government has “tacitly endorsed” the use of direct-drive production of LNG.

“The study can’t have final answers on any of that, because they don’t know yet how liquefied natural gas plants will be powered,” Clark said. “We don’t know how many there will be. We’re still in negotiations with the companies about how all that’s going to unfold.”

Environment Minister Mary Polak said in an interview that one LNG proposal has applied for an environmental assessment, and two others are in discussions on B.C.’s technical requirements for a permit and how the plants would be powered.

“Nothing like that has been finalized yet, and of course we are concerned about what that means for a con-

strained airshed like Kitimat, because we know that there are a number of facilities proposed for Kitimat,” Polak said.

Polak announced in October that $650,000 has been spent on a study of LNG impact in northwestern B.C. Results are expected by the end of March. U.S. Chinese, Japanese, Korean and Malaysian LNG investors expected to make final investment decisions on B.C. proposals later in 2014.

The expansion of Rio Tinto-Alcan’s aluminum smelter has already required a 50 per cent increase in the plant’s allowable sulphur dioxide emissions, from 27 to 42 tonnes a day. New technology is expected to reduce the smelter’s output of fine particulates, polycyclic aromatic hydrocarbons, fluoride and other pollutants when the upgrade is in operation in 2014.

Tom FletcherBlack Press

Premier pitches LNG in Asia

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What’s the rush?Th at was the message from chiefs at the B.C. First Nations

LNG Summit in Prince George in October. With the provin-cial government touting fi ve liquefi ed natural gas plants pos-sible for the Northwest in the coming years, and as pipeline proposals come rolling through First Nations territory, they are feeling under the gun.

“We’re really feeling the pressure, from not only the pro-vincial government, but the proponents,” said Carrier Sekani Tribal Chief Terry Teegee. “Really, we should be dealing with the two levels of government.”

He added that First Nations have limited resources to examine these projects properly to determine whether they are in the band’s interest or not.

Grand Chief Edward John was a little more direct, using his band as an example.

“Th ere’s a proposal for Trans Canada Pipeline to go through adjacent to one of our villages,” he said. “Companies come in with a sense of urgency. We have to have a socio-economic impact study done by the end of this month. Th e situation is this ... we have no resources in our communi-ties, we have a company coming in with a pipeline who are expecting us to jump up and down at their beck and call.”

He said the band has no help from the provincial or fed-eral government to deal with these things. In this case, Trans Canada Pipeline gave the band $75,000 to help pay for some of the work required.

“Th at’s welcomed by the community,” said John, “But a signifi cant amount of money is required to make the kind of decisions that are required.”

John says they are continually told that the demand is market driven and Canada has a small window of opportu-nity to get into the market.

“We haven’t seen anything from any source that says there’s that sense of urgency,” John said. “I’ve been to China fi ve times, no thanks to either government … Somebody’s telling us there’s urgency here, and we don’t understand

the source of that urgency, except somebody’s telling us it’s urgent. We have to slow this process down.”

Assembly of First Nations Regional Chief Judy Wilson-Raybould said there is a bigger issue that needs to be solved fi rst.

“First Nations have been engaged and thinking about these situations for a long time,” she said. “Th ey have been fundamentally wanting to solve the land question in British Columbia. We’re not opposed to development, but not at any cost.”

She said First Nations want to fi nd a balance between

economic development and ensuring that the land will be protected and sustained.

“Our relationship has to go beyond the ribbon-cutting and the initial infl ux of money,” she said. “It has to be funda-mentally more sustainable and comprehensive in terms of ensuring we’re in partnership with other governments and industry.”

Aboriginal Relations and Reconciliation Minister John Rustad said he is currently working to developing a “stra-tegic engagement agreement” with a group of First Nations within the Carrier Sekani to deal with the concerns.

What’s the rush on LNG?: ChiefsBill PhillipsNorthern Report

We’re really feeling the pressure, not only

from the provincial government, but

from the proponents. Really, we should

be dealing with two levels of government.

- Tribal ChiefTerry Teegee


VANCOUVER/ Troy Media/ - Back in the ‘60s the three magic letters were LSD. People were turning on, tuning in and dropping out with LSD, hoping to solve all their problems. It didn’t work.

Today, in British Columbia, the three magic letters are LNG and they are presented as a solution to the province’s economic problems.

Unfortunately, LNG (liquid natural gas) is no more a panacea for all ills than LSD was. It is an important component of the B.C. resource base, but the whole future of the B.C. economy cannot hinge on LNG alone.

Why?Well, fi rst, there is vocal opposition to the development of

LNG. Environmental groups oppose ‘fracking’, the water-inten-sive process used to extract natural gas from shale, even though it is used extensively in the United States and elsewhere. Th ere is also concern about the impact of transportation and other infrastructure needed to liquefy and deliver the gas to markets. While the validity of these concerns has been hotly debated, they do raise a real political issue for the B.C. government and are loud enough to create doubts in the minds of potential cus-tomers about the province’s ability to deliver LNG.

Second, First Nations are oft en portrayed as against LNG and other resource development, even though the Tahltan, Haisla and Tsimshian are just three examples of First Nation communities that are currently involved in economic development activities related to natural gas. First Nations communi-ties, like most others, are vitally concerned with having jobs and incomes, and they know that most jobs and income in B.C. (especially outside the metropolitan areas) are resource dependent. Th ey are anxious to retain their citizens within their communities.

Should too many young people have to leave to get work, their entire culture is put at risk.Th ird, environmental and compensation issues do need to be addressed, even though

B.C.’s environmental standards are higher than in many countries where natural gas is pro-duced. But the government has already promised to look at compensation for First Nations in areas of resource development.

Fourth, there are the myriad of supply and demand factors that must also be considered for success in any economic project. A recently released paper by the Canada West Foun-

dation called Managing Expectations: Assessing the Potential of BC’s Liquid Natural Gas Industry, shows that the potential supply of gas to feed Chinese and Asian markets could easily exceed demand. Further, the cost to produce gas in places like China is lower than in B.C. And there are alternatives to B.C. LNG. China can use pipelines to get LNG from elsewhere in Asia or use other sources of energy.

It was wise, therefore, that a recent B.C. government trade mission to sell its LNG in Asia focused on Korea and Japan. However, the province still has an uphill battle on its hands if it is to successfully market its gas resource because the infrastructure needed to produce, liquefy and ship the gas is not yet in place and faces high costs and environmental con-straints. Th ere is also intensive competition for LNG customers and many of its rivals for these markets are ahead of it in the race to produce and deliver it.

Finally, the increased actual and potential production will put downward pressure on gas prices and, therefore, on the profi tabil-ity of the sector.

Fortunately, Th e Business Council of British Columbia (BCBC) has just released a white paper on energy policy in BC called Building New Energy Advantages for BC. It deals with multiple energy sources, but makes several recommendations that could improve B.C.’s success in selling LNG. Th ese include but are not limited to:

• placing a renewed focus on marketplace competitiveness;• accelerating LNG development with adequate resources,

including needed electricity;• positioning B.C. as a global leader in responsible energy

development;• building and refi ning First Nation energy partnerships;• building a robust skills agenda including human resource planning, and• encouraging the domestic use of BC’s natural gas resources.LNG can still be a positive component in the B.C. economy. However, its impact will not

be as large might be desired.Following the Canada West Foundation fi ndings, B.C. should consider the development

of other resources and other sources of growth and not put all our eggs in the LNG bas-ket. Following the BCBC recommendations will help the government of British Columbia insure that LNG can still be an important, realistic part of a thriving province and not an unattainable LSD type hallucination.

Troy Media BC’s Business columnist Roslyn Kunin is a consulting economist and speaker and can be reached at www.rkunin.com.

LNG is the new LSDBut it is no more a panacea for our ills than LSD was for hippiesRoslyn KuninTroyMedia

The whole future of the B.C.

economy cannot hinge on LNG

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Special Edition: The Northern Report Prince George Free Press - DECEMBER 2013 A11

VICTORIA - With recent events bringing attention to hydraulic fracturing, I think it is important for British Columbians to know the facts about natural gas operations in our province.

B.C. has been producing natural gas for more than 50 years. Hydraulic fracturing, the technology used to extract a large portion of our natural gas, has been occurring for decades.

Our extensive experience has enabled us to put strict rules in place to govern how the industry conducts its business, ensuring it is rigorously monitored and as safe as possible.

We were the fi rst province in Canada to make it manda-tory for industry to disclose the fl uids used in the hydraulic fracturing process. Th e online registry - FracFocus.ca - provides information about our regulations and an account of each well drilled.

Our province’s geology provides us with natural advan-tages over other areas in North America with the hydraulic fracturing process occurring in B.C. kilometres away from the surface and below impermeable layers of rock and soil.

When wells are drilled, they are lined with cement to a depth of 600 metres to protect our soil and water. Th is provides even more protection for our drinking water.

As well, water usage is carefully monitored and protected in British Columbia.

Th e net result of both our strong regulatory framework and our geology is that B.C.’s water supply is protected and safe. It has never been contaminated as a result of hydraulic fracturing.

To ensure industry adheres to our rules, we have a dedicated provincial regulator in place. Th e BC Oil and Gas Commission has expert geologists, hydrologists, and engineers to ensure natural gas work remains safe.

And while the experts do their job, we continue to do ours.

Th e provincial government has made sound policy

decisions to support responsible natural gas development. World-leading regulations and best practices continue to guide how we operate.

Our government supports responsible growth and devel-opment because it makes long-term sense.

We want industry to grow in an environmentally sensible manner so all British Columbians can benefi t directly from natural gas production.

We recognize safe exploration as an opportunity to sup-port and grow our economy. Revenue generated enables us to better protect our environment and pay for impor-tant services such as health care, education, infrastructure

development and more. Th e reality is we must strike a realistic balance between

the needs of our families and strong communities, and the need to be responsible stewards of our environment. We need to accomplish both to be successful in the long term.

And, we are confi dent we are doing that on many fronts. For instance, to address growing demands from many industries, we are updating legislation with the proposed Water Sustainability Act. Th is act will ensure the best standards of environmental protection and appropriate oversight is in place for B.C.’s water resources now and in the future.

Our approach appears to be working. To reiterate, there has never been an incident of contami-

nated water supply as a result of hydraulic fracturing in our province.

Th e water used by industry is subject to strict rules. Before any approval can be provided, each permit must go through a rigorous review to eliminate harms and maintain existing water levels.

In addition to a vast supply of natural gas and leading standards for exploration, B.C off ers industry with many other advantages necessary for large investment, and that is why we have this amazing opportunity to become a world leader in natural gas exports.

As the world’s cleanest burning fossil fuel, natural gas is in high demand around the globe, particularly where air quality is a major concern.

We see this as an opportunity to redefi ne our fi nancial security and set a path forward to future prosperity for all British Columbians.

We want future generations to benefi t fi nancially from the foresight we show today to responsibly grow our natu-ral gas sector. To do that, we have made a commitment to responsibly develop a liquefi ed natural gas export industry.

Our government supports natural gas development because it makes sense today and for generations to come. Natural gas is our best competitive advantage moving forward.

Connect with the Province of B.C. at: www.gov.bc.ca/connect

Leading standards for natural gasRich ColemanMinister of Natural Gas Development

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OIL PROJECTSNORTHERN GATEWAY PIPELINE / ENBRIDGE NORTHERN GATE-

WAYEnbridge is proposing to construct and operate a 525,000 barrels per day

petroleum export pipeline from Edmonton, Alberta to Kitimat, B.C. Th e pro-posed project consists of a 1,170 km-long petroleum export pipeline, a con-densate import pipeline, and a marine terminal. Th e project has an anticipated capital cost of $6.5 billion, and is expected to generate 3,000 construction jobs, and provide 1,150 long-term jobs.

Aboriginal Interest: Th e proponent has engaged 70 Aboriginal groupsPlanned In-Service Date: 2018

TRANS MOUNTAIN PIPELINE EXPANSION / KINDER MORGANKinder Morgan is proposing a $5.4 billion expansion of the Trans Moun-

tain Pipeline system that would increase capacity from 300,000 barrels per day (b/d) to 890,000 b/d of crude oil and petroleum products from Alberta to Burnaby, B.C. Approximately 30 per cent of the existing Trans Mountain Pipeline was looped or twinned in 2008. Th e proposed expansion would twin the remainder of existing pipeline within the existing right-of-way, where possible, and add approximately 981 kms of new pipeline. Th e project would employ approximately 4,500 people during construction and 100 people once in operation.

Aboriginal Interest: 103 potentially-impacted Aboriginal groups identifi edPlanned In-Service Date: 2017

KITIMAT CLEAN REFINERY / KITIMAT CLEANKitimat Clean has proposed the construction and development of an ex-

port-oriented 550,000 barrel per day petroleum refi nery, approximately 25 km north of Kitimat, B.C. Refi ned products would be shipped from a marine terminal located on the Douglas Channel, near Kitimat. Th e project would require an estimated $18 billion capital investment and, once built, would be the largest petroleum refi nery in Canada and western North America.

Aboriginal Interest: TBDPlanned In-Service Date: TBD

NATURAL GAS PROJECTSPRINCE RUPERT PACIFIC NORTHWEST LNG TERMINAL / PROGRESS ENERGY

CANADA / JAPAN PETROLEUM EXPLORATIONProgress Energy Canada (a subsidiary of Petronas) and Japan Petroleum Exploration

(Japex) are proposing to construct and operate a $9–11 billion natural gas liquefaction proj-ect on Lelu Island within the Port of Prince Rupert. Th e proposed project is anticipated to have an initial two train design of 12 million tonnes per annum (MTPA) with the potential to add a third train for up to 18 MPTA. Th e project would employ approximately 3,500 people at the peak of construction, and 200-300 people during operations. Th e proposed Prince Rupert Gas Transmission Pipeline would supply gas to the terminal.

Aboriginal Interest: Five potentially-impacted Aboriginal groups identifi edPlanned In-Service Date: Late 2018

PRINCE RUPERT LNG TERMINAL / BG ENERGY GROUPBG Energy Group is proposing to construct and operate an $11–16 billion natural gas

liquefaction project on Ridley Island within the Port of Prince Rupert. Th e proposed project is anticipated to have an initial two train design of 14 MTPA with the potential to add a third train for up to 21 MPTA. Th e project would provide approximately 9,000 person-years of employment for the construction of trains one and two, and an additional 3,500 person-years for train three. Once all three trains are in place, that facility would provide employ-ment for approximately 250 employees. Th e proposed West Coast Connector

Gas Transmission project would supply gas to the terminal.Aboriginal Interest: Six potentially-impacted Aboriginal groups identifi edPlanned In-Service Date: Early 2020WEST COAST CONNECTOR GAS TRANSMISSION / SPECTRA AND BG GROUP

Spectra Energy and the BG Group are proposing to construct and operate a $6–9 billion

gas pipeline from northeastern British Columbia to the Prince Rupert LNG facility located in the Port of Prince Rupert (~900 km). Th e proposed project will consist of either one or two adjacent pipelines of 36” to 48” pipe with a capacity of up to 4.2 billion cubic feet per day (bcf/d). Th e proposed project would employ approximately 3,500 people during peak construction and 200 to 300 over a 30-year project lifespan.

Aboriginal Interest: Approximately 20 potentially-impacted Aboriginal groups identifi edPlanned In-Service Date: Late 2018PRINCE RUPERT GAS TRANSMISSION PIPELINE / TRANSCANADA PIPELINESTransCanada Pipelines is proposing to construct and operate a $5 billion natural gas

pipeline from northeast of Hudson’s Hope, B.C. to the Pacifi c Northwest LNG facility in Prince Rupert (~750 km). Th e proposed project will consist of a 48” pipe with a capacity of up to 3.6 bcf/d. Anticipated employment associated with the pipeline is 4,400–5,500 person years during construction and 30–40 permanent jobs during operations.

Aboriginal Interest: 24 potentially-impacted Aboriginal groups identifi edPlanned In-Service Date: Late 2018

KITIMAT LNG CANADA TERMINAL / SHELL CANADA AND PARTNERSShell Canada and its partners (Korea Gas, Mitsubishi and PetroChina) are proposing to

construct and operate a $10–15 billion natural gas liquefaction project near Kitimat, B.C. Th e proposed project is anticipated to have an initial two-train design of 12 MTPA with the potential to add 2 additional trains for up to 24 MPTA. Th e project would employ approxi-mately 5,500 employees during peak construction and 200-400 employees aft er full build. Th e proposed Coastal GasLink Pipeline would supply gas to the terminal.

Aboriginal Interest: 9 potentially-impacted Aboriginal groups identifi edPlanned In-Service Date: 2019 (for initial design)

KITIMAT LNG TERMINAL / CHEVRON AND APACHEChevron and Apache are proposing to construct and operate a $4.5 billion natural gas

liquefaction project near Kitimat, B.C. Th e proposed project is anticipated to have an initial plant capacity of 5 MTPA with the potential to expand capacity to 10 MPTA or more. Th e project would employ approximately 700 people during construction and 50 people once in operation. Th e proposed Pacifi c Trail Pipelines would supply gas to the terminal.

Aboriginal Interest: One potentially-impacted Aboriginal group identifi ed

Development in a nutshell

CONTINUED ON PAGE A14

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Canada should promote a principled dialogue about resource development with Aboriginal communities in Alberta and British Columbia.

It sounds great and, in fact, is one of the key recommendations from Douglas Eyford’s report Forging Partnerships, Build-ing Relationships – Aboriginal Canadians and Energy Development, released in early December. Prime Minister Stephen Harper appointed Eyford as Canada’s special federal representative on west coast energy infra-structure to identify approaches that could meet Canada’s goals of expanding energy markets and increasing Aboriginal partici-pation in the economy. His report makes several observations and recommendations, including involving First Nations communi-ties in resource development.

For First Nations communities, they’re still waiting for more involvement to hap-pen in a meaningful way.

“We’ve known for years that the federal government is not listening to First Na-tions,” said Carrier Sekani Tribal Chief Terry Teegee. “Harper wants to continue to wage war on First Nations. Unless there is a seismic shift in how the federal government manages its relationship with us, we’re going to see more confrontation that benefi ts no one.”

Eyford met with Carrier Sekani offi cials while preparing his report. Teegee said the Carrier Sekani appreciate Eyford’s report and his approach, and called for all of the recommendations in the report to be imple-mented within the next six months.

In addition to “promoting a principled dialogue” some of Eyford’s recommenda-tions include:

• Where federal jurisdiction is engaged, Canada should collaboratively partici-pate in regional planning with provincial governments, Aboriginal communities, local governments, and other stakeholders to eff ectively assess cumulative eff ects and encourage sustainable development.

• Canada should establish a joint initiative with Aboriginal groups for environmental stewardship and habitat enhancement to address concerns about cumulative eff ects of major resource projects.

• Canada should coordinate and convene the participation of key stakeholders includ-ing Aboriginal groups, governments, indus-try, non-governmental organizations, and scientists, to advance pipeline and marine safety and strategies to mitigate potential impacts of oil spills on the terrestrial and marine environment.

• Canada should sponsor and coordinate regional strategic planning with Aboriginal groups, industry, and local and provincial governments, educational institutions, and training providers, to ensure education, skills, and employment training are coor-dinated, fl exible, and targeted to meet the needs of Aboriginal people and employers in areas impacted by the projects.

• Canada should target funding for Aboriginal education, pre-employment skills development, and skills training in a manner that is responsive to the needs and timelines identifi ed in the regional strategic plans, and suffi ciently fl exible to address chronic barriers to employment.

• Canada should collaborate with its part-ners to enhance access to employment and business counselling services, community supports, and offi ce infrastructure, to sup-port Aboriginal people and to implement regional strategic plans. Th is includes estab-lishing direct relationships and accountabil-ity between regional service providers and neighbouring Aboriginal communities to support their members.

• Canada should ensure that federal pro-grams address the need for capital and other fi nancial support for Aboriginal businesses participating in opportunities related to major projects.

• Canada should facilitate and support tribal and sectoral associations to achieve defi ned objectives in areas such as marine and land use planning, capacity building, energy literacy, strategic planning, employ-ment, and business opportunities.

• Canada should consider conditions for access to capital where an Aboriginal group or collective brings forward a proposal to obtain an economic interest in a project.

And, he didn’t let First Nations communi-ties off the hook either. He said Aboriginal leaders should engage in community-based strategic planning to: undertake existing community skills and training needs; en-courage members to pursue training, educa-tion, employment, and business opportuni-ties where they exist; and identify suitable business development and entrepreneurial opportunities.

“Our people will be contacting the prime minister and premier to meet with our leaders to discuss the next steps forward,” said Teegee. “We are prepared to listen, and fi nd a way forward so that our environ-ment is protected and our people benefi t from projects in our territories. Th e ‘gold rush’ mentality is back. We’ve seen it before. Responsible development will include First Nations as partners that collaborate to un-derstand the cumulative impacts from these energy proposals. We risk the health and well-being of our future economy and chil-dren’s health if we don’t get this right. Th e Eyford report is a good fi rst step to moving forward. Th e proof will be in seeing how it is implemented.”

Teegee’s sentiment is being echoed throughout many First Nations communi-ties.

“It is clear that Mr. Eyford listened to our communities as many, if not all, of his rec-ommendations refl ect the public positions and statements of many First Nations stand-ing against Enbridge’s proposed Northern Gateway Pipeline and Kinder Morgan’s pro-posed expansion of their Trans Mountain pipeline,” said Grand Chief Stewart Phillip, President of the Union B.C. Indian Chiefs. “Unfortunately, many of his recommenda-tions will be ignored. Th e Harper govern-

ment has time and time again demonstrated their jobs agenda trumps, ignores and arrogantly dismissed our constitutionally-enshrined, judicially-recognized inherent title, rights and treaty rights. Th e Harper government has consistently demonstrated a complete contempt for environmental values and concerns.”

First Nations Summit leaders are also encouraged by the recommendations con-tained in the report.

“Th e recommendations in the report released by Mr. Eyford contain critical rec-ommendations that could open the door to a process of improved engagement between First Nations and the federal and provincial governments,” said Grand Chief Edward John of the First Nations Summit. “How-ever, it is absolutely critical that the founda-tion of this engagement must be based on the recognition of First Nations Aboriginal Rights and Title within their respective ter-ritories.”

“Mr. Eyford clearly recognized there are serious defi ciencies in the way the federal government engages with First Nations which has resulted in a high level of mis-trust. If the federal government takes these issues and this report seriously, it must work to immediately implement the recommen-dations, otherwise there will continue to be a high level of uncertainty in this province. Th e ball is now in the prime minister’s court. He needs to meet directly with BC First Nations on an urgent basis to chart a way forward.”

John added that it is critical to note that despite the fi ndings in this report, the views of the general public and First Nations regarding the Enbridge Northern Gateway proposal will not change.

First Nations and developmentBill [email protected]

Grand Chief Ed John

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Planned In-Service Date: 2017DOUGLAS CHANNEL LNG TERMINAL / BC LNG EXPORT CO-OP AND DOUG-

LAS CHANNEL ENERGY PARTNERSHIPBC LNG Export Co-operative and Douglas Channel Energy Partnership are proposing

to construct and operate a $400 million barge-based natural gas liquefaction project near Kitimat, B.C. Th e project is anticipated to have an initial capacity of 0.9 MTPA of natural gas with a total capacity of 1.8 MTPA.

Aboriginal Interest: One potentially-impacted Aboriginal group identifi edPlanned In-Service Date: Unknown

COASTAL GASLINK PIPELINE / TRANSCANADA PIPELINESTransCanada Pipelines is proposing to construct and operate a $4 billion pipeline to

deliver natural gas from the area west of Dawson Creek, B.C. to the LNG Canada Project in Kitimat, B.C. (~650 km). Th e project will initially have the capacity to fl ow approximately 1.7 bcf/d of natural gas and could deliver up to approximately 5.0 bcf/ day. Th e pipeline would provide 2,000 to 2,500 direct jobs during construction and 15–20 permanent posi-tions once in operation.


PACIFIC TRAIL PIPELINES / APACHE AND CHEVRONApache and Chevron are proposing to construct and operate a $1.3 billion natural gas

pipeline from Summit Lake, B.C. to Kitimat (~470 km). Th e project will consist of a 42” pipe with a capacity of up to 1.4 bcf/d.


OTHER PROPOSED PROJECTSIN BRITISH COLUMBIA

PACIFIC NORTHERN GAS LOOPING PROJECT / PACIFIC NORTHERN GASPacifi c Northern Gas is proposing a $1.3 billion upgrade to its transmission pipeline ca-

pacity by looping (twinning) its existing natural gas transmission system between Summit Lake, B.C. and Kitimat, B.C. (~525 km). Th e pipeline would transport approximately 600 million cubic feet per day (mcf/d), and provide between 1,800 and 2,400 direct person years of work during construction.

Aboriginal Interest: 24 potentially-impacted Aboriginal groups identifi edPlanned In-Service Date: Late 2016

WOODFIBRE LNG TERMINAL / WOODFIBRE NATURAL GASWoodfi bre Natural Gas Limited (WNGL) is proposing the development and operation of

a LNG production, storage and marine carrier LNG transfer facility located on the previous Woodfi bre Pulp and Paper Mill site in Squamish, B.C. Th e proposed project is anticipated to have a capacity of 2.1 MTPA of LNG. Th e project would provide approximately 600 per-son years of direct employment during construction and 2,500 person years of employment during operations. Natural gas will be delivered to the Woodfi bre site through the existing and expanded FortisBC pipeline.

Planned In-Service Date: 2017WCC LNG PROJECT / EXXON / MOBIL / IMPERIAL OIL

Exxon/Mobil/Imperial Oil are proposing to construct and operate a natural gas liquefac-tion project in either Kitimat or Prince Rupert, B.C. Th e project is anticipated to export up to 30 MTPA of LNG.

Planned In-Service Date: 2021TRITON LNG / ALTAGAS AND IDEMITSU KOSAN

Triton LNG LP, an equal partnership between Canadian AltaGas Ltd. and Japanese Idemitsu Kosan Co., Ltd., is proposing a Floating Liquefaction Storage and Offl oading (FLSO) vessel, with two liquefaction trains and storage capacity. It is anticipated that the FLSO vessel will have an annual production capacity of approximately up to 2.3 MTPA.

Th e project site has not yet been selected, but locations have been identifi ed in the vicin-ity of Kitimat and Prince Rupert, B.C. Natural gas will be delivered to the site through the existing and expanded Pacifi c Northern Gas pipeline.

Planned In-Service Date: 2017AURORA LNG / NEXEN ENERGY

Nexen Energy, a wholly-owned subsidiary of CNOOC Limited, has entered into an exclusive agreement with the Government of British Columbia to examine the viability of constructing a LNG plant and export terminal at Grassy Point near Prince Rupert, B.C.

DISCOVERY LNG / QUICKSILVER RESOURCES CANADAQuicksilver Resources is considering the development of a project involving the con-

struction and operation of natural gas liquefaction, storage and on-loading facilities on the north side of Campbell River, B.C.

Planned In-Service Date: 2019 (Phase I)EAGLE MOUNTAIN WOODFIBRE GAS PIPELINE PROJECT / FORTISBC

FortisBC is planning a $350 million upgrade to its natural gas pipeline running from Coquitlam to the Woodfi bre industrial site near Squamish, B.C. Th e expansion includes the addition of an approximately 52 km long 20” diameter natural gas pipeline.

Anticipated employment during the construction phase is 500–650 person years.Aboriginal Interest: Four potentially-impacted Aboriginal groups identifi edPlanned In-Service Date: Late 2016

B.C. is on the goFROM PAGE A12

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Prince George Free Press - DECEMBER 2013 A15Special Edition: The Northern Report

An environment of innovationSpectrum Resource Group is

making all the right moves to reduce the ecological footprint created by industries in northern B.C. and Alberta.

Th e fi rm, which deals with all matter of fl ora and business from re-vegetating old mining sites to addressing impacts of the moun-tain pine beetle to combating invasive weeds, started humbly in 1987 with four employees.

Now, 27 years later, Spectrum has lent its expertise to fi rms across Western Canada in sectors ranging from forestry to oil and gas.

“We had to diversify to stay competitive and no longer be a seasonal company. We did that by horizontally integrating into other industries and utilizing our exist-ing resources and expertise,” said Duane Maki, CEO of Spectrum Resource Group.

Much of the growth the com-pany has experienced is because of Maki’s foresight. He started out coming to B.C. as a tree planter while in university and worked his way up at Spectrum to where he is today. While the company is continu-ously looking to fi nd new industries to work with, the main vision of the company remains to reduce the environmental eff ect of industries in the region.

“[We want to] specifi cally create knowl-edge on how to better utilize herbicides and reduce the amount of herbicides we use,” said Maki.

One of the areas that Spectrum is work-ing in is land reclamation in oil, gas and mining sites. Using knowledge that senior researcher Dr. Lisa Wood and the research team have compiled, the company has proven to be successful at returning the sites back to their native species.

Another area that is taking advantage of Spectrum’s knowledge are the forests that have been impacted by the mountain pine beetle.

“We take standing timber back to pro-ductive land,” said Maki.

Spectrum harvests and chips the dead wood, prepares the land to be re-vegetated and plants the area, all over the course of 12 months.

One concern Maki and Wood both see as an obstacle for the continued growth of Spectrum is educating the public on the importance behind their work and fi nding funding resources for continued research.

To that end the evolving company intro-duced an internal research department.

“We started the research program to improve our internal operation so that we could have something more to off er our clients, a service that we could provide without charging more [to our clients],” said Wood.

“We wanted to create an environment of innovation and creativity where we could pull our employees together and work towards obtaining results in new services.”

Spectrum doesn’t only work with big industries, but the company also prides

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Transport CanadaA partially loaded crude oil tanker is guided out of Burrard Inlet from Burnaby’s Westridge Terminal next to the Chevron oil refinery, visible at left. Dredging of Second Narrows would be required to carry larger loads.

Natural Resources Minister Joe Oliver assured a Vancou-ver business audience last month that the federal govern-ment is committed to “world-class” oil spill prevention and response on the B.C. coast.

In a speech to the Vancouver Board of Trade, Oliver stopped short of specifi cally endorsing the 45 recommen-dations in a new survey of marine and land oil transport safety, but repeated a vow from last summer to make “pol-luter pays” the law for pipelines in Canada.

“Th ere has never been a serious tanker accident on the West Coast,” Oliver said. “Nevertheless, we are committed to building a world-class system to prevent marine acci-dents. In the unlikely event there is an accident, we need to respond rapidly and comprehensively and make sure the polluter pays, not the taxpayer.”

Earlier, Oliver and Transport Minister Lisa Raitt released

a report by a tanker safety expert panel chaired by Gordon Houston, former president of Port Metro Vancouver and Prince Rupert harbourmaster.

Th e panel’s report calls for adequate funding to the Canadian Coast Guard to make it the lead agency in any oil spill response at sea. Potential polluters and their delegated spill response agencies should be prepared for a “worst case” incident like the Exxon Valdez grounding in Alaska in 1989, the report says.

B.C. Environment Minister Mary Polak said it remains to be seen if Ottawa will take the necessary steps to meet the province’s conditions for approving new heavy oil pipelines. A federal review panel is due to issue recommendations by the end of December on whether the Enbridge Northern Gateway proposal for a double pipeline from northern Alberta to Kitimat should be allowed to proceed.

Th e federal report looks only at current traffi c, including crude and other petroleum products. It identifi es the south end of Vancouver Island and the adjacent coast, including Vancouver harbour, as being at “very high risk due to the

large volumes of vessel traffi c and bulk oil movements that occur within close proximity of environmentally sensitive areas.”

Th at is the region where Alaska crude oil tankers enter the Strait of Juan de Fuca to reach Washington state refi ner-ies, and the oil tanker exclusion zone ends. Between 30 and 60 tankers a year fi lled with crude oil or diluted bitumen also sail out from the Kinder Morgan Canada oil terminal at Burnaby through the same waters.

Traffi c from Burnaby would increase to about one tanker per day if Kinder Morgan’s proposed twinning of its Trans Mountain pipeline from Alberta proceeds. Currently 30 to 60 tankers a year load at the Westridge Terminal in Burna-by.

Th e tanker exclusion zone, a voluntary agreement be-tween Canada and the U.S., extends 200 nautical miles west from the northern tip of Haida Gwaii to southern Vancou-ver Island. Th e federal report rates oil spill risk as “medium” on the northern and southern ends of the exclusion zone, and low in the central portion.

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Ottawa vows world-classoil spill prevention and response in B.C.

B2 Prince George Free Press - DECEMBER 2013 Special Edition: The Northern Report

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Prince George Free Press - DECEMBER 2013 B3 Special Edition: The Northern Report

“Are governments doing what Canadians want with respect to farmland?”

Th is is the question under investigation in a new study led by the University of Northern British Columbia. Th e three year project, headed by UNBC Environmental Planning Associate Professor David Connell, will examine how the changing role and value of farming in Canada may aff ect agricultural land use within and across national, provincial, and municipal jurisdictions.

“Th e average person shopping at a grocery store does not know where his food comes from. And the average Vancouverite visiting a farmers’ market because she values ‘eating local’ might be surprised at how much prime farm-land has been overtaken in the Fraser Valley for commer-cial, residential, and industrial interests,” says Dr. Connell, who is investigating the issue with researchers from across Canada, including fellow UNBC International Studies As-sistant Professor Matias Margulis.

Dr. Connell says the biggest cities in Canada are situ-ated where they are in part because that is where the best farmland is located. Consequently, as cities expand, land identifi ed as being some of the most fertile in Canada is be-ing replaced by developments such as golf courses, condo-miniums, and shopping malls.

“In BC, the area of greatest impact is in the Fraser Valley because that’s where there is the greatest level of urbaniza-tion and also the greatest quantity and quality of farmland,” says Dr. Connell.

“How important is the preservation of our best farmland to the public in BC and to the citizens of communities across Canada? Are local, provincial, and federal bodies implementing policies that refl ect the priorities of citizens? We are going to try to measure that.”

“Prior to 1972, local governments approved the conver-sion of about 5000 hectares of prime agricultural land to urban use each year,” says Dr. Connell. “Th e quality of farm-land in the Agricultural Land Reserve (ALR) has decreased, with more prime farmland (Class 1, 2, and 3) being exclud-ed than being included. Likewise, most of the additions to the ALR have taken place in Northern BC, which growing conditions and soil quality are not as good. Th is means that

the best farmland in the Lower Mainland is being replaced with less productive land in the North. So while it looks like the total amount of farmland has not changed the quality of the land has deteriorated.”

Dr. Connell says the growing local food movement will be one of the factors evaluated in the study. Th at movement argues that there are social, economic, and environmental consequences for bringing food to communities from far away. Proponents also claim the food is healthier, fresher, and more nutritious. “If this movement continues to grow then there is a corresponding need to strengthen legislation that protects local farmland,” says Dr. Connell.

Th e research will also examine other issues aff ecting Ca-

nadian agriculture land use planning such as globalization, policies aff ecting farmland preservation, and issues of food sovereignty, or the right of people to defi ne their own food systems.

Th e research fi ndings will be presented to all three levels of government, distributed to agricultural advisory commit-tees, and will culminate in a national forum to discuss the fi nal results, and weigh possible best practices for commu-nities and governing bodies.

Funding for the study comes from a Social Sciences and Humanities Research Council Insight Grant worth $464,000. Th e proposal was selected from 1,799 submis-sions from across Canada.

Study looks at agricultural land use

Photo courtesy of UNBCUNBC professors Mattias Margulis and David Connell are examining how the changing role and value of farm-ing in Canada may affect agricultural land use within and across national, provincial, and municipal jurisdic-tions.

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Prince George is on the cusp of the most exciting time in its history! Not since the Klondike Gold Rush, over 125 years ago, has the region experienced such strong interest and unparalleled opportunities. Northern B.C. has perhaps the highest number of planned and proposed resource development and intense economic investment activity in North America at the present time.

Conservative estimates put planned and proposed capital investments in the region for the next decade at over $70 billion. Th is investment will be spread across a large num-ber of new and emerging sectors, including natural gas, mineral exploration and mining, coal, energy (including the completion of the largest new Highway 37 transmis-sion line), oil and gas, and a revival and strengthening in forestry. It will be taking place under a world-class regula-tory regime, which will ensure that our natural environment is protected for the enjoyment of future generations and that First Nations are consulted and share in the economic benefi ts of resource development.

Prince George’s key position as a transportation, labour, and service and supply hub ensures it will play a key role as these exciting projects move forward. It is estimated that these projects could create over 40,000 long term sustain-able jobs in the north, with very high family incomes.

It is surprising how much has changed in the last decade. Back in the 1990s, the forest sector was in turmoil, fac-ing soft wood lumber issues, collapsing U.S. markets, the closure of a large number of processing facilities, and last, but certainly not least, the beetle kill. During that period, more mines were closing than opening, mineral exploration was at a historic low, beef markets collapsed, and tourism was down. Unemployment rates in the north hit historic highs, and housing prices in places like Tumbler Ridge and Mackenzie collapsed.

Th roughout the turmoil in the resource sector and the economic challenges we faced, we in the north remained positive and optimistic. Leaders from First Nations com-

munities, all levels of government, stakeholders, and the resource sector continued to discuss challenges, and shared opportunities and success stories. Th ey pushed to introduce innovations in technology and transportation, to improve environmental protection, and to explore new opportunities in the service and supply sector. Our strength has always been our positive attitudes, our entrepreneurial spirit, and our close ties with the land and the resources. Our positive attitudes coupled with our will and commitment to put the welcome mat out to investors has been a key foundation in the emerging economic revolution we now face.

As Prince George is poised to become the hub for B.C’.s future economic success, it is time for all of us to play an ac-

tive and engaged role in guiding our future. Th at’s why I am pleased to be hosting the “Premier’s BC Natural Resource Forum” on January 22-23, 2014, in Prince George. Th is is the forum’s 11th year, and building on a solid foundation, I believe that we have a very exciting format and a great list of invited speakers who will address current and interesting topics for everyone involved in or connected to the resource sector. Th e BC Natural Resource Forum is a key oppor-tunity to share the vision of urban and rural BC working together for the common good of all, to explore the huge opportunities that are unfolding, and to share our thoughts, ideas and desires for how these opportunities will unfold in the best interests of all British Columbians.

Premier in P.G. for forumMike MorrisPrince George-Mackenzie MLA

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GROWTH. OPPORTUNITY. INVESTMENT.

FORT ST. JOHN – Almost nine out of 10 people approve of Site C, according to a new poll commissioned by BC Hydro.

Anderson Insight conducted the survey of just over 1,250 British Columbians. Eight-hundred people were called throughout the province, including the north and northeast, to partake in the poll. In addition 250 more participants were interviewed specifi cally in the north and northeast region to ensure a more reliable sample. Interviewing more people in the area that is aff ected by the project proposal reduces the margin of error, said Bruce Anderson, the polling company’s principal. Th e interviews took place in September.

“We wanted to have a picture, as we have over the last few years, where presently the project sits and this is a way for us to fi nd what the general attitude is towards the project – to get a snapshot, at both a provincial and regional level,” said Site C’s communication manager Dave Conway.

Forty-two per cent said they support Site C, 13 per cent opposed it, and another 42 per cent said they could support it under certain circumstances. Th e level of support and opposition were very similar on a regional level, stated the Anderson Insight report.

On a provincial scale, four out of 10 were aware of the project and 59 per cent were unaware. Regionally, the awareness was much higher at 78 per cent reporting that they had heard, read or seen material about Site C.

Despite the diff erence in awareness levels, Conway said the support didn’t waver.

“Th is is very typical in large infrastructure projects. Th e important thing to note from this is despite the aware-ness level of being higher regionally; the support hasn’t changed…” he said.

“I think the poll shows that there is a strong base of sup-port for the project.”

However Andrea Morison from the Peace Valley Environ-ment Association questions the legitimacy of the questions

formed to gain a provincial perspective on Site C.

“Obviously BC Hydro isn’t putting out informa-tion on the impacts and they do have quite a big budget to talk about how great the project will be,” said Morison, “and we are operating on a shoe-string budget to let people know about what some of the impacts will be.”

Anderson initially put the questions together in the poll.

“It’s fairly typical of how I do my work, so I draft ed questions of what I thought would be a good range … to explore perceptions on the project proposal.”

BC Hydro representatives gave him feedback and to-gether they designed the survey.

Conway added that the more an individual knew about the project, the more they were inclined to support it.

But Morison believes the opposite.“I think if people really knew more about this project

and the real impacts they wouldn’t even be sitting on the fence about it,” she argued, “I think if they understood more impacts of the dam they would come to the conclusion that the project is not in the interest of British Columbians.”

Th e building of Site C would cause numerous distur-bances to the environment. Approximately 5,500 hectares of the Peace valley would be fl ooded, and a number of at-risk fi sh species may be lost completely. Th e fl ooding would permanently impact access to land considered signifi cant and traditional to First Nations, and various migratory birds would be aff ected by the construction of the reservoir. About 30 homes would be displaced through the necessary realignment of Highway 29, to accommodate the fl ood line from the reservoir.

Despite these changes, BC Hydro has maintained that “the overall impacts of the project and the net benefi t to the province of British Columbia and BC Hydro rate payers, that the project should proceed.”

Th e poll was also a means to get feedback from residents regarding support on various generating projects.

“[Th e survey] was a little broader on the scope of just focused on [Site C],” said Conway.

It showed that a majority of residents supported buying from independent producers (73 per cent) to increase B.C.’s energy production, followed by adding new hydroelectric dams (69 per cent) and building new natural gas power plants (54 per cent).

Due to an anticipated population increase of one million people over the next 20 years and the potential for the lique-fi ed natural gas industry, BC Hydro says Site C is the answer to the province’s growing energy demands. Th is mega proj-ect would produce enough energy to power the equivalent of 450,000 homes per year.

However, the Wilderness Committee believes the prov-ince already has more electrical power than it currently needs, “and has access to even more hydro power through the Columbia River Treaty and the United States, as well as cheap hydro power imports from the Pacifi c Northwest.”

“Th e only uses for Site C would be to subsidize coal mines and gas fracing operations – and people in B.C. do not want that,” said the Committee’s national campaign director Joe Foy.

Th e project is currently in the third and last stage of the environmental assessment; an independent joint review panel made up of three experts is reviewing it. So far, the panel has issued BC Hydro to submit further answers to their Environmental Impact Statement.

“Th e JRP has come up with good comprehensive ques-tions and identifying signifi cant gaps in the proposal,” said Morison, “and I hope they will recognize … that this project shouldn’t be going ahead, it shouldn’t be approved.”

Should the project proceed and be approved, it would take seven years to build the facility, which could be fore-casted to begin as early as 2015. Site C has a price tag of $8 billion.

Hydro poll finds support for Site CKyla CorpuzNorthern Report

Dave Conway


A new study released by the Canadian Energy Pipeline Association (CEPA) shows that the economic benefi ts of transmission pipelines add billions to the Canadian economy annually.

Th e study, the fi rst of its kind in Canada, entitled “Th e Economic Impacts from Operations of Canada’s Energy Pipelines,” was prepared by Angevine Economic Consulting Ltd. Th is study details the economic im-pact that crude oil, natural gas liquids, and natural gas transmission lines contribute to the Canadian economy. According to the report, the industry is expected to add $130 billion to Canada’s gross domestic product (GDP) over the next 30 years based on current operations. Th is does not include what the transmission pipeline indus-try could add to the Canadian economy, if some of the major pipeline projects currently being planned were to become operational.

“Canada’s energy pipelines are an overlooked source of economic prosperity,” said Brenda Kenny, President and CEO of CEPA, in a press release. “Not only do they add billions to our GDP, they’re also a source of high-income jobs for many thousands of Canadians.”

All told, the pipeline industry is responsible for over 25,000 full-time equivalent (FTE) jobs across Canada, accounting for approximately $1.9 billion in labour income in 2012. Of the 25,000 FTE jobs created by the pipeline industry, 30 per cent are located in Alberta, 21 per cent in Ontario, and 20 per cent in Saskatch-ewan, with the remaining 29% spread across the rest of Canada.

“Th ere’s a perception that only Alberta and their workers benefi t from the energy industry as a whole and from pipelines in particular,” said Kenny. “Th is report

clearly shows that the economic benefi ts of pipelines are spread across the entire country and contribute to the prosperity of all Canadians.”

Not captured in the report are the spin-off benefi ts of pipeline infrastructure. Upstream, energy producers are able to move more of their product and invest more heavily in expanding their operations. Downstream, Canadian refi neries, petrochemical plants and distribu-tion companies generate GDP contributions and provide employment and income. Th is is due, in great part, to the energy transported by Canada’s transmission pipe-lines. It is estimated that 21 percent of the total value of Canadian exports of goods are generated by the trans-portation of energy products via pipelines.

“Pipelines generate signifi cant spin-off benefi ts that far exceed the direct investment made in them,” said Kenny. “Our member companies are committed to building and operating a safe, socially and environ-mentally responsible pipeline infrastructure that will contribute to a strong and prosperous Canada for many decades to come.”

CEPA members are committed to advancing a safety culture, throughout the industry, based on a strong foundation of leadership and continual improvement leading to zero incidents. Th e Canadian Energy Pipeline Association represents Canada’s transmission pipeline companies who operate approximately 115,000 kilome-tres of pipelines in Canada. In 2012, these energy high-ways moved approximately 1.2 billion barrels of liquid petroleum products and 5.1 trillion cubic feet of natural gas. Our members transport 97 per cent of Canada’s daily natural gas and onshore crude oil from producing regions to markets throughout North America.

Poll highlightseconomic impact of pipes

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When a husband or dad left for work, he was usually home in time for supper. Th ese days and in industry towns, such as those that make up the Peace region, that’s no longer the normal expectation.

Whether it’s the mom, dad, husband, wife, son or daughter, coming home for dinner may take weeks or months.

Th is shift in the average household can be attributed to worker camps, where a labourer will work, sleep and eat. Camps have become a necessary component to meet the growing demands of the natural resource sector, and along with it comes a trickle-down eff ect that hits the heart of a community.

Th ough it’s not a new phenomenon, the eff ects of the camp lifestyle have captured the attention of governments, regulators, head offi ces, and health authorities. Open, closed, isolated, communal, temporary and long-term camps have left a footprint on Peace region communities.

“Fort St. John is certainly no stranger to large industry and work camps, that’s been a part of our history for many, many years and it’s something that we have certainly learned to live with and in the last couple of years. It’s an emerging topic … the impact of camps on communities and families,” says Fort St. John’s city manager Dianne Hunter.

Th ough Hunter doesn’t consider herself an expert on worker camps, she can attest to its eff ect on family life.

“I guess I’m more of a person both as a position of city manager, mother and grandmother that lives it, that’s impacted by it, and I see our community is impacted by it, and I have colleagues now who are impacted by it,” said Hunter.

During the BC Energy Conference that the city hosted in early October, Hunter gave a presentation on worker camps, high-lighting a new perspective to the already complex issue.

“I had a conversation with another city manager from another community … there was dismay in their community as a result of the work that was happening [in Fort St. John] and her comments were focused on a deterioration of the quality of lifestyle and community,” said Hunter.

Fort St. John, Dawson Creek or Fort Nelson could be viewed as host commu-nities. Workers fl ock to the north for a desirable wage, but leave their families at home. Hunter said this is the fi rst time in a long time that a large percentage of workers are choosing where they want to settle their roots over where the work is.

While the host communities experience a transient population infl ux, wear and tear on infrastructure, and housing infl ation, the home communities are left to cope with their own challenges.

“Her sense is that [they’re] left with older people, retirees, fatherless families … lack of volunteerism, all the things that knit a community together,” explained Hunter.

Coincidentally households in northeast B.C. can also identify with those struggles: one parent at home, while the other is away.

“Families are struggling with how to keep the family nucleus together … so it was a sense that communities are really changing and perhaps not for the better,” said Hunter. “Some families are more resilient and some

are not and so all the benefi ts are lost when you have a broken family.”

Clarice Eckford, the Peace Project coor-dinator with the Women’s Resource Centre in Fort St. John, has spent the past year studying the cause and eff ects of worker camps on society, among other topics regarding violence against women in Fort St. John.

Th e worker camp lifestyle is akin to gold-en handcuff s, Eckford says. Th e fi nancial rewards of working an industy job may take precedent over nurturing a family’s well-being. While camps don’t have a carbon copy eff ect on each worker, she has seen how it positively and negatively contributes to society, families and marriages.

Lori Heins is a mother of four and until recently was a resident of Fort St. John since 1997, and is what others would call a camp wife. Th e Heins family recently moved to Enderby in the Okanagan.

Her husband Steve works as an electri-cian journeyman in the oil and gas indus-try, and is oft en away from home months at a time, 138 days being the longest. Heins admits that living without her husband is challenging at times, but is altogether worthwhile.

“Th ere’s always those hard times. It’s never easy, but then you work together, and it’s made our family really strong,” she said.

Heins said it can be tiring being respon-sible for the all the day-to-day activities and chores, but her children are helping out as they get older.

She also said that having Steve away has showed her how independent she is, and believes her children have a great relation-ship with their father. Th e family stays in touch using text messaging, video messag-ing and daily calls. According to Heins, her children really take advantage of their fa-ther being home, while other ‘9-5 families’ may not appreciate all that time together.

“When papa is coming home, everything stops… so everything in our lives shuts off so that we can hang out with him. We don’t get a lot of quantity of time, but we get huge quality time,” said Heins.

“We tried the 9 to 5 thing and it kind of sucked,” she added.

Since having children, Steve has only missed two birthdays and one Th anksgiv-ing. She said that there’s a misconception of all camp families being rich, and while she said that it has allowed them to move to the Okanagan, it didn’t come without hard work and sacrifi ce.

“At the end of the day, we’re pretty proud of what we’ve done for ourselves and for our family. It is hard, but there is a good payoff in the end,” she said.

Th e worker camp paradigm is complex. Trying to simplify it would be futile. Un-derstanding how worker camps contribute to society, the impressions it leaves on fam-ily life and how it simultaneously stimulates the economy will take years, maybe decades to grasp.

“It truly is a Pandora’s box. As far as all the little impacts that occur to an indi-vidual, on a worksite, in a community, on a health region, on other service provid-ers: be it the RCMP, or mental health, who knows – the list is endless,” says Greg Th ibault, manager of public health protec-tion with Northern Health.

Th ibault is a key researcher on a series of reports that Northern Health has tackled regarding worker camps.

From Northern Health’s permits alone,

they knew of approximately 4,000 workers and 1,800 work sites approved by a regula-tory government agency. Th ibault explained that 1,800 work sites doesn’t equate to 1,800 campsites. One day a camp could be located at a site and the next week they can pick up and move down the road – that’s two sites – same company.

Th erefore what remains a mystery is how many camp operations have been, and are currently, established.

“Th ere is not one jurisdiction that over-sees camps,” said Hunter.

While some research has been done on worker camps, there is still a huge chunk of data missing. Northern Health has completed two research papers, each one hoping to unfold more information about this phenomenon. Th e fi rst paper looked at the state of industrial camps and the second looked at potential impacts on communi-ties.

“It’s really morphed into, ‘Gee we should be getting out to inspect these things more oft en,’ to, ‘Holy what the heck is going on out there’, to, ‘We’ve got a really good opportunity with all the resource develop-ment that currently exists with the tens of billions of dollars of infrastructure about to come swooping down on northern B.C. and all the workers associated with it,’” Th ibault added.

Th ibault is in the process of writing a third paper, to focus on how Northern Health could potentially be aff ected in

terms of health service delivery.Th ibault said that Northern Health has

recognized that they need to start working with industry in order to address health is-sues in camps, and has since reached out to several diff erent companies. Diet, exercise, substance abuse, health promotion, and prevention could be topics of programs that companies choose to implement in their camps. Th ibault believes the health needs of workers are dependent on the type of camp, worker, and industry served. In the last decade the standard of camp life has improved. Th e trend, according to camp construction company PTI, shows that liv-ing spaces are more generous with a variety of food and entertainment.

Catering to workers’ needs to stay con-nected to family or friends can contribute to their overall well-being.

“And if we can have a positive impact on camp life in general, it’s going to have a positive impact on home life, and that’s not only going to be in the north, but poten-tially across B.C.,” said Th ibault.

It starts with recognizing that a commu-nity, like Fort St. John, should take a leader-ship role and start the conversation, or participate in the conversation, said Hunter.

“As a community we need to build com-munities … that makes it a community of choice. If we don’t do it, it’ll happen regard-less and it’ll happen in a vacuum policy …and there’s going to be long-term implica-tions of some of that.”

The trials and tribulationsLife in and around northern work campsKyla Corpus and Jill EarlNorthern Report


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Prince George Free Press - Northern Report - December 2013

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Transcript of Prince George Free Press - Northern Report - December 2013