Common Sense Canadian

Nexen loses fracking water licence in Fort Nelson First Nation appeal

PostedSeptember 9, 2015 by in Western Canada
Fracking operations in northeast BC depend on large volumes of water (Damien Gillis)

Fracking operations in northeast BC depend on large volumes of water (Damien Gillis)

Read this Sept. 8 National Post story by Gordon Hoekstra on the recent victory by the Fort Nelson First Nation at BC’s Environmental Appeal Board, which stripped Nexen of its licence to withdraw up to 2.5 billion litres of fresh water a year from a local lake for the company’s fracking operations.

The Fort Nelson First Nation has won a potentially precedent-setting decision from the B.C. Environmental Appeal Board that cancels the water licence of a natural gas fracking operation in northeast B.C.

The appeal board — in a decision that took 20 months to deliver — concluded the science behind the licence was fundamentally flawed and the province did not consult the First Nation in good faith.

Both the province and the company involved, Nexen, had argued using the water would have no significant adverse environmental effects and there was adequate consultation.

Calgary-based Nexen, owned by Chinese state-controlled CNOOC Ltd., also made a plea that cancelling the licence would jeopardize hundreds of millions of dollars in investments.

 But in a Sept. 3 decision, outlined in a 120-page report, a three-member appeal board panel cancelled the licence that allowed Nexen to extract water from a small lake about 90 kilometres northeast of Fort Nelson. The panel allowed Nexen to use the water it already has in storage.

“I think it’s going to set a precedent that B.C. now needs to pay attention and needs to start looking at critical environmental values throughout all of our territories — not just my territory or the other neighbouring First Nations territories, but all of British Columbia,” Fort Nelson First Nation chief Liz Logan said in an interview Monday.

“They need to have the proper science, they need to have facts they rely on. They need to have experts they rely on. They just can’t arbitrarily make a decision because of industry’s request.”…

…While Nexen was approved for 2.5 billion litres of water a year, enough to fill about 1,000 Olympic-sized swimming pools, the company estimated they needed only 1.2 billion litres a year for their fracking operations, and, in fact, used even less than that.

In making its decision, the appeal board said that internal ministry correspondence showed the province intended to issue the water licence regardless of promised meetings with the Fort Nelson First Nation, and had no intention to substantially address concerns that might have been raised by the First Nation.

“The panel finds that this conduct was inconsistent with the honour of the Crown and the overall objective of reconciliation,” said its decision.

The panel also found that the province’s conclusion that the water withdrawals would have no significant impacts on the environment, including fish, riparian wildlife, and their habitat, was based on incorrect, inadequate, and mistaken information and modelling results.

The limited data available after water was extracted still did not support a conclusion the environment would not be harmed, said the appeal board.




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    Nicole Sims

    Am I mistaken in my belief that the FIPA with China doesn’t come into effect until October? Because if I am, this is going to cost our province a lot of money. Time to boot Harper! I just hope the new PM can cancel this terrible deal!


      The controversial agreement came into force on October 1, 2014 and will be in place for a minimum of 31 years.


      I don’t think it can be cancelled. I believe the contract is not unlike the one that Christy signed with Petronas. Air tight for so many years. Our politicians spend freely when all penalties come from our pockets.

      In a similar vain I believe the run of river, private hydro contracts run for another forty years. Yes, Liberal cronies still pinch themselves wondering how lucky could they be making riches off the backs of the taxpayer for so damn long.


    A communist Chinese company that is using the democratic Canadian court system to fight “us” over our environment.
    Oh the irony.
    The very same country that has been decimating its own environment for years.
    Now they’re here.
    And Harper let them in. No , invited them with open arms.
    Well done Steve.

    Another reason (amoung many) to vote Harper out.


    Cautiously optimistic! Watching for possible push back. Will the BC government appeal? Will Nexen mount a legal challenge through Canada-China FIPA for potential loss of profits?


      Excellent points. Somehow we must take control of our future. The Christy government is out of control. The best interests of corporations has severely clouded her vision. She seems to live for their monetary injections at election time. She seems to live to pay homage to her Liberal cronies.

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