Category Archives: LNG

BC LNG: Boon or Boondoggle?LNG (Liquified Natural Gas) is one of biggest energy stories to hit Western Canada. It is promoted as a clean bridge fuel that will create thousands of jobs and turn British Columbia into a trillion-dollar global energy leader. The idea is to cool natural gas into liquid, so it can be shipped to higher-price markets in Asia. But is it really all it’s cracked up to be? And what are the trade-offs and impacts associated with LNG and the fracked gas that would feed it?

The Common Sense Canadian is your go-to source for in-depth analysis of the potential benefits and risks of this “game-changing” industry.

Harper says LNG tankers too dangerous for East Coast, but OK for BC?

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Harper says LNG tankers too dangerous for East Coast, but OK for BC

I live on Howe Sound in lovely Lions Bay. I have lived my entire life in British Columbia, growing up in Vancouver and spending much of my boyhood on this lovely fjord.

Howe Sound belongs to all of us. It had been all but destroyed by industry until 20 years ago when rehabilitation was started with the closing of mills and Britannia Mines. Thanks to the work of citizen/volunteers  it was enormously successful. We now have the salmon runs dramatically increased, herring runs back to where they used to be, and killer whales, which were so prevalent when I was a boy but had all but disappeared, now going past my house regularly.

The Fraser River estuary scarcely needs any introduction. Suffice it to say that this glorious river is the number one salmon habitat in the world and nowhere are these marvellous fish more vulnerable than in the estuary. The governments have all but approved 200 more or less tankers and barges carrying LNG into and out of this estuary. They intend to skip an environmental assessment altogether, yet, thanks to citizen efforts, have been inundated with demands for a proper public hearing.

They don’t really care about us

It is indeed bad enough that the National Energy Board has issued export licences for tankers travelling these routes, as ever-ignorant of British Columbia is fully in favour, but as you’ll see from the Wilderness Committee’s media release which follows, the feds took exactly the opposite position on the east coast!

Suspicions confirmed! Ottawa does discriminate against BC.

Because of this unbelievable turn of events, I wrote a letter to John Weston, our Tory MP.

First, here is the Wilderness Committee’s statement:

The Wilderness Committee is calling attention to the federal government’s double standards regarding the safety of LNG shipments along Canada’s coastline.

The federal government has actively fought against the construction of an American LNG terminal known as the “Downeast LNG Project.” If constructed, this project would see LNG carrier ships pass through New Brunswick’s Head Harbour Passage.

Canadian Ambassador to the United States Gary Doer has outlined Canada’s “strong concerns” around Downeast LNG in two letters to US regulators, pointing to the serious environmental, navigational and safety risks of the project.

Contrarily in BC, American company WesPac Midstream was granted an export licence by Canada’s National Energy Board (NEB) on May 7th for its proposed LNG terminal on the Fraser River – a river that is home to one of the largest salmon runs in the world. The Canadian Environmental Assessment Agency (CEAA) is currently considering the need for an Environmental Assessment (EA) of the project.

To date, no federal government representative has expressed concerns with sending up to 120 LNG tanker vessels annually into highly populated areas of Richmond and Delta, BC.

“Our federal government is treating us west coasters like second-class citizens,” said Eoin Madden, the Wilderness Committee’s Climate Campaigner. “This kind of LNG project was considered unacceptable for New Brunswick, but it doesn’t seem to pose a problem for the government when it will sit on the banks of the world’s greatest salmon river.”

The Wilderness Committee has produced a map detailing the public safety risk associated the WesPac project, identifying industry-defined LNG tanker “hazard zones” that would impact communities if a tanker on the route were to be ignited. There are three hazard zones – zone one posing the biggest threat to human life.

“The federal government opposed Downeast LNG to protect what they called a ‘unique and highly productive marine ecosystem’ off the New Brunswick coast,” said Madden. “If they want to see a unique and productive ecosystem, they should come on over and check out the Fraser River.” The Wilderness Committee will continue to work to protect the Fraser River from all fossil fuel shipments. The organization will be calling on the federal government to conduct a cumulative impact assessment of the combined effects of coal, LNG, tar sands and aviation fuel projects proposed for this vital salmon river.

Rafe calls out Howe Sound MP

Now, here is the letter I sent to John Weston both at his parliamentary address and personal address 10 days ago. I have not received a reply. 

Dear Mr. Weston,

Below you will find a release from the Wilderness Committee stating unequivocally that your government has banned LNG tankers on the East Coast while permitting them, indeed encouraging them, on the West Coast. They are banned on the Atlantic coast because they pose a serious danger. Evidently Mr. Harper doesn’t believe they pose the same danger on our coast.

This is of particular interest to residents of your constituency. It is not a new story, having been broken originally by Eoin Finn and I have dealt with it in columns myself. It is now, however, of immediate importance, since your government and the provincial government are bent on approving the Woodfibre LNG plant with consequent LNG tanker traffic down Howe Sound and have approved similar traffic on the Fraser River, one of the world’s most bountiful salmon rivers.

It is my intention to write an article, for publication, a week tomorrow, stating categorically that the Conservative government, your government, actively and dangerously discriminates against the West Coast generally and the Howe Sound and Fraser River areas specifically. I don’t wish to do this without giving you the opportunity of refuting the obvious inference that this is accurate.

I would be pleased to hear from you as soon as possible.

Yours very truly,

Rafe Mair

Try standing up for your constituents

Let’s look at what we are asking Mr. Weston to do.

He’s been our Member of Parliament for eight years. His record in standing up for his constituents has been appalling. On the particular issue of Woodfibre LNG, Weston did not seek the opinions of his constituents – quite the opposite. He made it clear from the beginning that he couldn’t care less what we thought but that he was in favour of development, so was the prime minister, and that was that. Moreover he tried to throw his weight around and get the West Vancouver Council to change their minds from opposing this proposition to supporting it. He got a unanimous second prize from that doughty Council on that argument.

Weston’s constituency includes the western part of West Vancouver, the Sea-to-Sky area, and the Sunshine Coast. The opposition to Woodfibre LNG is a very strong indeed. In fact, it’s difficult to find anyone who favours it other than the deceitful shills for Woodfibre LNG called Resource Works and so far as I can determine from reading their bumph and speeches, they’ve not told the truth on any material fact yet. (See previous columns).

Woodfibre’s PR flacks hit the spin cycle

In yet another propaganda email recently issued to his followers, Resource Works’ spokesman Stewart Muir, amongst other things, called our group “well-funded”; whereas we’re  a group of volunteers, spending our own time and money, with only the occasional help from fundraisers. I tell you this because this billion dollar enterprise, with its high-priced lackeys in Resource Works, not only “money whips” us but has the nerve to denigrate honest, decent, concerned citizens spending their own time and money standing against a huge company and two governments hand-in-glove with the corporate world. Incidentally, Muir was once a Vancouver Sun editor which to me, at any rate, explains a lot.

Why do British Columbians deserve less?

Let’s return to Mr. Weston.

All we have asked our Member of Parliament to do is threefold: First, take all our concerns about Woodfibre LNG to the prime minister and the Government of Canada and let them know that there are thousands of decent British Columbians who want this project stopped. Ask the PM why he is dealing with a crook, a tax evader and despoiler of tropical forests nonpareil. Ask the PM to google Woodfibre owner Sukanto Tanoto and follow the links to the Guardian Newspaper and thereon and tell us why he is to be our partner.

Courtesy of Eoin Finn
Courtesy of Eoin Finn

Secondly, ask Mr. Harper why he is uncaring about residents in allowing LNG tanker traffic through Howe Sound and the Fraser River where irrefutable scientific evidence makes it clear that both are far too dangerous. Both the Wilderness Committee and ourselves can provide charts.

In the case of Howe Sound, in transit to the ocean, LNG tankers from Squamish would pass within unsafe distances from the populations of West Vancouver Lions Bay and Bowen Island. All 6 Municipal Councils around the Sound have passed motions objecting to the Woodfibre LNG proposal.

Thirdly, now that the government has essentially made its decision, we have asked Mr. Weston to explain to us, on behalf of the government of Canada, why there is one rule for Atlantic Canada and another one for British Columbia.

Surely, being an MP is more than chasing down missing pension checks or seeing that constituents have a tour of Parliament when visiting Ottawa.

In essence, Weston is receiving some $175,000 per year not to consult his constituents, not take their concerns to the prime minister and cabinet to demand answers on our behalf, not to support the municipal councils in his riding, and not to give a damn about anything except his own reelection.

To put it bluntly, Woodfibre LNG affects every person living in his constituency. We have, on clear scientific evidence, excellent reason to worry about the lives and safety of our families. Surely to God, what I have said above, which I believe would be endorsed by a large majority of Weston’s constituents, is not too much to ask of a man highly paid to be the liaison between the peasants their political masters.    

John Weston will, in my opinion, be slaughtered in the next  election, but of what consolation is that if the pall of impending disaster remains?

As I have written here recently, our path to safety for our families and communities is civil disobedience and that is what the uncaring bastards will have.

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Rafe Mair: Civil disobedience against LNG plans is a must

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Citizens line the Sea to Sky Highway to protest Woodfibre LNG (My Sea to Sky)
Citizens line the Sea to Sky Highway to protest Woodfibre LNG (My Sea to Sky)

It’s time to fish or cut bait, folks.

We’ve learned that some 200 LNG tankers and barges are slated to use the lower Fraser River and the company, WesPac, doesn’t even feel the public deserves a say through a proper environmental assessment.

We’re told by the company that LNG tankers have a 50 year safety record so there is naught to worry about. You should know, however, that the company lies through its teeth by leaving out four rather important words “on the high seas“.

The Fraser River is not the “high seas”?

Bear in mind, as reported here in The Common Sense Canadian, the recommended distances between the tanker and shore, set out by Sandia Laboratories as well as the industry’s own organization, the Society of International Gas Tanker and Terminal Operators (SIGTTO), makes it clear that both the Fraser River and Howe Sound are totally inappropriate for LNG tankers.

Neither government gives a fiddler’s fart.

Batten down the hatches

Courtesy of Eoin Finn
Courtesy of Eoin Finn

My main point today is that we must be prepared to fight and I don’t think we are. Most of us are brought up to believe that being a reasonable is the way to go through life and that this approach will be beget reasonableness from others. I fear that many opposed to LNG tanker traffic think that by being reasonable with the companies and the governments that they will see the light and cancel their projects.

They are dead wrong.

You can call me a cynic if you wish but I assure you that my “hawkishness” comes from real and extended experience in these matters.

Neither the federal nor provincial governments have the slightest concern what the public feels about LNG tanker traffic. They know best. They don’t care who owns the companies, nor about Scandia Laboratories, SIGTTO or any scientific evidence that doesn’t suit their purposes.

Speaking from experience…

Permit me to go back a few years to the 1986 Kemano Completion Project (KCP), agreed upon by Alcan, the federal government and the provincial government.

In order for this agreement to be made, the Department of Fisheries and Oceans’ condemnation of the project had to be ignored and, indeed, the major report was buried until 10 years later, when it was leaked to me by one of the DFO scientists who badly wanted the truth to be known.

The Minister of Environment of the day made it abundantly clear that the decision was a political one. The agreement, involving billions, was made in spite of this buried DFO report saying it would be an environmental catastrophe. You should know that if the government tells you they’re relying on science, you can be damn sure they’re studiously ignoring anything that might contradict their political ambitions.

If that were all, it would be bad enough but several scientists in the DFO were punished for not going along, through transfers, early retirement, loss of seniority and so on. All of us involved in that fight against the KCP felt ill when the story how these very fine scientists were treated came to our attention.

From this cautionary tale those who oppose LNG in general and tanker traffic in particular should know that the government and the companies won’t pay the slightest bit of attention unless we are prepared to employ non-violent civil disobedience at the appropriate time.

What would Churchill do?

At the start of World War II, the RAF flew many sorties over the Ruhr district of Germany, wherein most of the industrial might of that country lay.

Did they drop bombs and try to disrupt the Nazi war effort?

Not a chance. That might provoke retaliation!

Instead, they dropped pamphlets imploring the Germans to surrender!

Needless to say this was before Churchill became Prime Minister.

Rafe: Critics of Burnaby Mountain citizens are out of touch with public will for change
84 year-old retried librarian Barbara Grant getting arrested at Burnaby Mountain (Burnaby Mountain Updates/facebook)

Figuratively speaking, we who want to stop this LNG madness are dropping pamphlets over the Ruhr, unwilling to do anything that might anger the enemy. Little wonder the “enemy” doesn’t believe we’ll fight and that as long as they toss us a scrap or two along the way, we’ll remain docile and obedient.

Protest marches and the waving of signs have their place in fights like this. But, having said that, if we aren’t prepared in the final analysis to do what the good citizens of Burnaby did with Kinder Morgan, we might as well pack it in right now.

Being prepared for “civil disobedience” carries with it the responsibility of marshalling our forces and making it clear to companies and governments that we’ll employ this weapon without hesitation.

We’re brought up to respect and obey the law but what if the law is consistently stacked in favour of the “establishment”, as protest laws are?

The most cursory look at the history of liberty tells us that nothing was ever gained from the establishment of the day without it being forced from them against their will. Whether it be the Magna Carta, The Peasants’ Revolt, the Glorious Revolution, The Tolpuddle Martyrs, The American Revolution – you name it – it’s obvious that establishments never yield an inch of civil liberties and justice without it being taken from them.

Sham environmental assessments

Today, even the environmental assessment processes ostensibly to protect the public, are as phoney as wooden nickels and kowtow to industry while denying the most basic rights to the public.

The Christy Clark bunch are politically trapped into promises of great riches to the province from LNG, which won’t happen,  leaving them flapping their lips and hoping that something turns up.

Worst of all, we have no one to speak for us – our politicians are worse than useless.

Not so sturdy for the public

A recent example comes from my MLA, Liberal Jordan Sturdy. His pockets full of campaign money raised by Woodfibre LNG, he was asked about having a crook like Sukanto Tanoto, owner of WFLNG, as our business partner. He replied that Mr. Tanoto’s international reputation should not matter in whether his B.C. project goes forward. It’s the business itself that needs proper regulation, he said.

[quote]The government tends not to get into the business of vetting ownership.[/quote]

That sums up the “due diligence” done by the Clark government on behalf of the citizens of British Columbia!

We who desperately want to protect our environment and keep our population safe have no one on our side and everyone against us. To me, those odds are perfect, provided we have the courage to defend ourselves and let the government know this.

It gets down to this: we either play their game and, as we were taught in Sunday School, be polite and turn the other cheek, or we let it be known that in the absence of protection from our governments, we will disobey the unfair laws that allow these outrages to be perpetrated against us.

There is, sadly but truthfully, no middle ground.

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Fraser River LNG tankers carry explosive risk – Last chance for public comment

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Fraser River tankers
How LNG Tankers would turn from from WesPac Tilbury Marine Jetty (Project Description – CEAA Summary)

This article is republished with permission from The ECOreport.

UPDATE: Following complaints that the CEAA email system for public comments on the project has been out of commission throughout the 20-day comment period, the window for feedback has been extended until June 24

Building a major LNG terminal in Delta would have a big  impact on the mouth of the Fraser River.  The diagram at the top of this page shows how LNG tankers would come into, and leave, the proposed WesPack Tilbury Marine Jetty. Even with the help of tugboats, they need most of the Fraser River’s width to turn around.

The National Energy Board has already granted an export license for a facility that could bring up to 120 LNG tankers and 90 LNG barges to this terminal every year. In the US, LNG proponents need to assess potential hazards all along LNG tanker routes, but the Canadian Environmental Assessment Agency is considering waiving an environmental assessment. The public comment period on this project is almost over – citizens have two days left to ask for an environmental review.

Fraser River Tanker explosion risk
Explosion risk zone from proposed Fraser River LNG tankers (RealLNGHearings.org)

The above map, from Real LNG Hearings.com, shows the extent of the hazard area if there was an explosion. Note the red line, which goes out the Fraser and along the tanker route. This is a band 500 meters wide depicting: extreme hazard of combustion and thermal damage from pool fire if evaporating LNG is ignited.  Cryogenic burns and structural damage from exposure to supercooled LNG. Asphyxiation hazard for those exposed to expanding LNG vapor plume.” Though the degree of danger is less, there could be additional explosions anywhere within the blue zone if the LNG vapour cloud makes contact with a source of ignition. 

Said Kevin Washbrook for Voters Taking Action on Climate Change:

[quote]Whether we’re LNG supporters or not, we probably all agree that major projects like this need careful review.  However in this case public notification has been negligible, the comment period is absurdly short, and fundamentally important questions  — like whether it makes any sense to build a LNG terminal on a narrow, heavily trafficked river — haven’t even been asked.[/quote]

Citizens can write to federal Environment Minister Leona Aglukkaq via the Real LNG Hearings website, to require a proper level of LNG risk assessment is done in BC.

More detailed information available here:

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LNG tankers in Fraser River? Brief chance to comment on sneaky project

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Existing courtesy Fortis BC LNG plant in Fraser River (courtesy of Eoghan Moriarty/RealHearings.org)
Fortis LNG compression station near Fraser River (beige tank)  – courtesy of Eoghan Moriarty/RealHearings.org

The following is republished with permission from The ECOReport.

by Roy Hales

UPDATE: Following complaints that the CEAA email system for public comments on the project has been out of commission throughout the 20-day comment period, the window for feedback has been extended until June 24

The National Energy Board has already granted an export license, to US based WesPac Midstream, for a facility that could bring up to 120 LNG tankers and 90 LNG barges into the Fraser River every year.  The public’s opportunity to make their concerns known ends June 11. There are only eight days to comment on Delta’s proposed LNG terminal (WesPack Tilbury Marine Jetty).

Thought it was a joke

Voters Taking Action On Climate Change (VTACC) sent out an alert after seeing a notice about the proposed LNG facility on the British Columbia’s Environmental Assessment Office’s (BC EAO) website.

The first notice MLA Andrew Weaver, of BC’s Green party, received was an email  from the ECOreport, “I thought it was a joke, a spoof on LNG. It is remarkable that this is potentially going ahead. The Tilbury facility is there already to provide natural gas at peak times in the Lower Mainland, or there are little communities here or there that need natural gas.

He added:

[quote]But the proposal to have up to 120 LNG tankers and 90 LNG barges a year is just truly remarkable. What has it come to that we are starting to see these massive fossil fuel projects being brought forward with days to have any input on? I’m an MLA in the province of British Columbia. I read a lot. I’m pretty much up on what is going on in the province and I have eight days notice )about the WesPack Tilbury project) because you emailed me about it![/quote]

The ECOreport also attempted to contact the provincial NDP critic for natural gas development, who was not available to comment.

CEAA “sent out a press release”

A spokesperson from the Canadian Environmental Assessment Agency (CEAA) said they sent out a news release on May 22.  She said there will not be another opportunity for the public to comment unless the CEAA decides an environmental assessment is necessary.

Wespac Plan
Access Trestle And Loading Platform Design from WesPac Tilbury Marine Jetty Project Project Description CEAA Summary

In the CEAA project description, it says “WesPac is committed to ongoing consultation and engagement with Aboriginal groups that are interested in the Project.” Both the Musqueam and Tsawwassen have signed agreements and WesPac is in discussions with several other First Nations. They also provided a list of First Nations that have no yet responded to their queries:

  • Hwlitsum;
  • Lake Cowichan;
  • Lyackson;
  • Semiahmoo;
  • Squamish;
  • Seabird Island First Nation;
  • Shxw’ow’hamel First Nation;
  • Skawahlook;
  • Soowahlie First Nation;
  • Stó:lō Nation;
  • Stó:lō Tribal Council;
  • and Tsawout First Nation.

BC’s existing LNG facilities

BC has two existing LNG facilities, both owned by FortisBC. Tilbury LNG Facility, next to the proposed WesPack site, is 43 years old. Fortis began a $400 million expansion project last October. This adds 1.1 million gigajoules of liquefied natural gas (LNG) to storage and 34,000 gigajoules per day of liquefaction capacity. Another LNG facility opened near Ladysmith in 2011.

WesPac aims to start construction next year

Premier Christy Clark’s government appears to endorse this project. A notice on their website proclaims, “The WesPac LNG marine terminal will provide a means of loading LNG onto carrier ships for export.” BC’s Environmental Assessment Office has requested that it be allowed tosubstitute a provincial revue for the federal process.

WesPack expects to start construction of its’ terminal next year. It will take 15 months to build the WesPack Tilbury Marine Jetty and they expect it to be operational for at least 30 years.

Project Shipping Route from WesPac Tilbury Marine Jetty Project Project Description CEAA Summary
Project Shipping Route from WesPac Tilbury Marine Jetty Project Project Description CEAA Summary

One of the proposed domestic customers is BC ferries, which has ordered three LNG fueled ferries that can accommodate 145 vehicles and 600 passengers.

Weaver said, “BC ferries has suggested is it will provide with the new ships to LNG power instead of diesel. It is cleaner, it is a domestic market for a domestic product. I’m totally for that, but you just need a small capacity for that. If Fortis and others would come to people and say, ‘look BC ferries wants to start using LNG. We need to provide a fueling station for it and this is how we propose to do it.’ You could build a social license from a project like that.””

Barges of up 4,000 m of LNG capacity will service coastal communities through-out the regional market.

Much larger LNG carriers, meant for foreign markets, have up to 90,000 m of capacity. They can tie up at the Marine Jetty for up to eight days, but will normally depart after 24 to 48 hours.

LNG terminal absurd

Kevin Washbrook, director with VTACC, thinks it is absurd to build an LNG terminal on the Fraser River.

“I think once enough people become aware the push-back will be so high, and the assessment so rigorous,  that it will be easy to say this makes no sense. Just on the siting of the review process and the lack of a proper assessment of the location, I think there are reasons for everyone to be concerned about this project. Even LNG supporters accept that you have to be careful about where you put these things,” he said.

Weaver agrees:

[quote]Anybody who claims these days that a major infrastructure , or resource project, is a done deal need not look much further than some of the projects around British Columbia that have run into resistance. Not the least of which is the Enbridge (Northern Gateway) pipeline or the implications of the recent Tsilhqot’in decision with respect to resource projects on First Nations land.[/quote]

Business done respectfully

BC Green MLA Andrew Weaver
BC Green MLA Andrew Weaver

Weaver insists, “British Columbians are fed up with being treated disrespectfully, things being ramrodded down their throats in terms of a top down push to governance.”

This is not a lesson the Canadian or British Columbian governments appear to have learned.

“Is British Columbia open for business? Absolutely, but business done respectfully – not irresponsibly like we are seeing here, with little attempt to actually engage the public. I wonder how many people living along the Fraser River even know about this?” said Weaver.

Matt Horne of the Pembina Institute said, “It is disturbing that a project of this scale could potentially be approved without an environmental assessment. In addition to being a large industrial facility in the Lower Mainland, it would also necessitate an expansion of shale gas wells, roads and pipelines in northeast B.C. It should absolutely go through an environmental assessment process. And while environmental assessments in Canada have serious flaws, conducting one would at least ensure the WesPac proposal undergoes the same scrutiny as other LNG proposals around the province.”

“A loud public response in the next few days is needed to ensure this LNG proposal receives the careful assessments our region deserves,” said Washbrook. “Environment Minister Leona Aglukkaq should commit to a federal panel review for this project, and she should reject BC’s request to substitute a provincial review.  Given the BC government’s clear bias in favour of LNG exports, handing this over to the province would be like putting the foxes in charge of the hen house.”

(Click on this link to access a form where you can ask federal Environment Min Aglukkaq to 1) conduct an assessment of this project and 2) reject BC’s request to substitute a provincial assessment instead.)

Top Photo Credit: The Fortis LNG compression station is located at the middle of the photo (beige storage tank). The LNG terminal would be located immediately downstream (to the right) and the vessels would load where the old wooden pilings are in the river – courtesy Eoghan Moriarty | RealHearings.org

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Geologist: Minister inflating shale gas, LNG potential by 6 fold – threatening Canada’s energy security

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BC Minister of Natural Gas Rich Coleman
BC Minister of Natural Gas Rich Coleman

The following rebuttal from geoscientist David Hughes to BC Minister of Natural Gas Rich Coleman is republished with permission from the Canadian Centre for Policy Alternatives. The minister has been vocal about Mr. Hughes’ recent report on LNG, published by the CCPA.

After a lot of media coverage on my Clear Look at BC LNG report, Rich Coleman, Minister of Natural Gas, weighed in saying “the report ignored the studies of B.C.’s own scientists” and “they don’t do their research”. In fact, if Mr. Coleman had bothered to read my report, he would have noted that my numbers are cited from BC Oil and Gas Commission reports – the scientists Mr. Coleman employs.

The BC Government states that “British Columbia’s natural gas supply is estimated at over 2,933 trillion cubic feet” and “British Columbia has more than an estimated 2,900 trillion cubic feet of marketable shale gas reserves”. These statements strongly imply that this is recoverable gas and therefore is part of future supply and is marketable. In contrast, here are the actual numbers from the BC Oil and Gas Commission (Table 4 from page 6 of the BC Oil and Gas Commission report that the BC Government claimed doubled BC gas reserves).

hughes

Instead of 2,933 tcf, the table lists an ultimate marketable potential resource for BC of just 400 tcf, of which 25 tcf has already been recovered leaving 376 tcf remaining. In my report I added an additional 42 tcf from other potential sources to make sure I was being generous, of which 416 tcf is remaining.

The BC Government’s claim of 2,933 tcf of “marketable shale gas reserves” is therefore preposterous in the light of information from its own scientists. It appears the BC Government has conflated “in-place” resources with “marketable” resources. “In-place” resource estimates are not recoverable – typically no more than 10-20% of the in-place resource is recoverable from shale gas plays. The National Energy Board and BC Oil and Gas Commission scientists have made a best guess at what might be recoverable and suggest it is 376 tcf, or one-eighth of the amount touted by the BC Government. I have been generous in suggesting the BC Government’s number is only overstated by a factor of six.

The BC Government has also been conflating “resources” with “reserves”. Proven reserves have a specific meaning in that they have been proven to exist with the drill bit and are recoverable with existing technology under foreseeable economic conditions. Reserves are numbers you can take to the bank. According to the BC Oil and Gas Commission, proven raw gas reserves in BC were just 42.3 tcf at yearend 2013, a mere 1/70th of what the BC Government is touting as “marketable shale gas reserves”.

If the BC Government knows the difference between “in-place resources” and “marketable shale gas reserves”, its touting of 2,933 tcf of BC gas is deliberate deception. If it does not it is extremely shocking given that Mr. Coleman and his government are the stewards of BC’s remaining finite, non-renewable, heritage of natural gas.

The BC LNG Alliance, an industry lobby group for seven LNG proponents, simply parroted BC Government statements. Its President, David Keane, “said 2,933 trillion cubic feet is a figure that the commission and energy board geologists “do believe we have.”’ Keane further accused me of “cherry picking some of the facts”. If Keane had read my report he would have seen it is based on National Energy Board projections, not mine, so if anyone is to be accused of cherry-picking it is the NEB.

The BC Government and the BC LNG Alliance have no credibility on the gas supply numbers they state for the reasons listed above. But my report was about much more than that. We are dealing with a finite non-renewable resource for which there are no substitutes at the scale we use it. It will be needed domestically in the long term and extraction necessitates environmental impacts. It demands a longer term plan for the sake of the environment and future generations.

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Rafe Mair’s Modest Proposal: Scrap environmental assessments

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The 3-member NEB Joint Review Panel for the proposed Enbridge Northern Gateway pipeline (Damien Gillis)
The 3-member NEB Joint Review Panel for the proposed Enbridge Northern Gateway pipeline (Damien Gillis)

Do you enjoy being a raw hypocrite?

Well, if you’re a taxpayer in Canada that’s what you are because you support raw hypocrisy every day in the various hearings on environmental matters that take place.

I’ve written in the past, from personal experience, about environmental assessments of independent power projects (IPPs), the environmental disgraces of British Columbia, and how they are so biased in favour of industry that it defies all but spluttering language of anger.

Let’s call the whole thing off

Economist Robyn Allan
Economist Robyn Allan

Why don’t we just abolish the National Energy Board and all other boards like it and allow environmental projects to be judged strictly by the industry itself, with the customary pat on the corporate head from the prime minister?

At least this would make honest men and women of us.

The recent resignation of economist Robyn Allan as intervenor in the TransMountain pipeline hearing, coupled with the earlier resignation of former BC Hydro head Marc Eliesen from the same hearing, have made plain that these so-called environmental assessment boards are making mockery of the notion of natural justice and idiots of us who pay for it.

“A rigged game”

Let’s hear first of all from Robyn Allan, economist and a public servant who was a once the president of ICBC

[quote]It’s a rigged game … We’re getting the scope that supports Kinder Morgan. Its a private sector, How do we get to yes? masquerading as a public interest review. [Emphasis added]

… decisions made by the Board at this hearing are dismissive of Intervenors. They reflect a lack of respect for hearing participants, a deep erosion of the standards and practices of natural justice … and an undemocratic restriction of participation by citizens, communities, professionals and First Nations either by rejecting them outright or failing to provide adequate funding to facilitate meaningful participation.[/quote]

Unnatural justice

Marc Eliesen, one of the most distinguished power experts in Canada, having served as head of BC Hydro, Manitoba Hydro and Ontario Hydro, was an intervenor at NEB hearings into the Kinder Morgan pipeline. He resigned last November in a scathing letter, a small part of which follows:

[quote]The evidence on the record shows that decisions made by the Board at this hearing are dismissive of Intervenors. They reflect a lack of respect for hearing participants, a deep erosion of the standards and practices of natural justice…and an undemocratic restriction of participation by citizens, communities, professionals and First Nations either by rejecting them outright or failing to provide adequate funding to facilitate meaningful participation.

… The National Energy Board is not fulfilling its obligation to review the Trans Mountain Expansion Project objectively. Accordingly it is not only British Columbians, but all Canadians that cannot look to the Board’s conclusions as relevant as to whether or not this project deserves a social license. Continued involvement in the process endorses this sham and is not in the public interest. [Emphasis added] [/quote]

A waste of taxpayers’ money

These hearings, whether on the grand scale of the National Energy Board, or merely a smaller environmental assessment of an IPP, are hugely expensive. Many involve travel across the country, staying in the best hotels, sipping the best, and by the end of the day stacking up a substantial tab for you and me to pay every April 30.

No one, least of all I, would object if this process were actually evaluating these projects and making recommendations based upon full and proper hearings with natural justice for all – the “judges” being totally independent of any of the parties involved and noted for giving unbiased advice to the government.

The reality is the opposite. Almost unknown for turning down anything from industry or ruling in favour of intervenors even on minor matters, the results of their deliberations are easily foretold and, in fact, relied upon by both government and industry.

A foregone conclusion

It was instructive to note that when Premier Clark recently made another of her absurd press announcements on LNG, the federal minister for energy, James Moore, had to correct himself after he had – with fulsome support resembling that of a suitor of the seductively smiling premier – suddenly had a flash of awkward memory as he mumbled, “Oh yes, there is an environmental process to go through yet”.

This should not be overlooked. The applicant companies don’t stop their planning or construction pending the outcome of these hearings – why would they when they’re foregone conclusions? The only thing to worry about are the likes of the courageous citizens of Burnaby and their gutsy mayor, Derek Corrigan.

Our leaders can no longer be trusted

All of the foregoing is tied into the phenomenon of this century, namely that those, in the words of the Anglican church, “set in authority over us”, can no longer be trusted for even so much as a word of truth if the contrary suits them better. I can tell you that, at the risk of appearing a cynic, when I hear a politician or an industrialist make pronouncements on anything whatsoever, I don’t believe a single word and I believe that experience proves my skepticism fully justified.

Why not?

Let’s get back to the beginning.

Why not abolish the whole bloody business? Let’s rid ourselves this wasted outlay of money. It’s rather like the poor citizens of the late Soviet Union having to pay for their court system and it’s a plethora of “show trials”.

Won’t this leave us without any environmental protection?

If so, what’s changed?

Is it a better to have a fake process and an environmental travesty or to have the same result without having to go through the humiliation?

The reality is that we ought to have a proper system. In this country, however, where the far right rules, you would have to be smoking something questionable to think that that would ever happen.

At the end of the day (my favourite cliché I might say), it will be up to the public and environmentalists – which these days are almost one and the same thing – to expose the dangers posed by the undertakings proposed by those who couldn’t care less about the environmental consequences and, in order to put money in their own pockets in great gobs, pretend that they’re only doing it for the greater good of the public and that we should all be eternally grateful.

hummel-jrp

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Premier Clark spews more hot air with LNG non-announcent

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Premier Christy Clark announcing...the same thing she's announced many times before (BC Govt)
Premier Christy Clark announcing…the same thing she’s announced many times before (BC Government)

For all the fanfare of yesterday’s press conference, you’d think Premier Christy Clark would have some big, new development to announce for her much-vaunted but yet-to-be-built LNG industry. Sorry folks, nothing to see here.

All Clark had to offer was warmed up leftovers from the umpteen previous press conferences, media advisories and political speeches she’s been making for the past several years. Still no final investment decision from Malaysian energy giant Petronas – only “the beginning of the company’s final decision path toward an investment decision”, whatever the heck that means. The “path” to any real bucks being forked out by a single one of the 18 companies and global consortia proposing LNG plants is proving to be a long and winding road.

Are we there yet?

For years now, we’ve watched the likes of Chevron and Petronas punt their promised final investment decisions to next quarter, next year, some vaguely defined point in the future – while many others have outright fallen by the wayside (BG Group, Apache, Encana, EOG to name a few). But we never seem to get there.

And what if we did ever get there? At this point, after all the slashing of royalties and taxes, all the gutting of environmental protections, all the deals with China, India and Malaysia to supply the labour via foreign temporary workers, what’s actually left for the people of BC?

Take your ball and go home

BC should not be bullied by Petronas over LNG taxes
Petronas CEO Shamsul Abbas lecturing BC at last year’s LNG conference (Damien Gillis)

In her press conference yesterday, Clark boasted that the “memorandum of understanding” with Petronas locks in low royalty and tax rates for years to come. This is supposed to be good news for the people of BC?

As I noted back when Petronas CEO Shamsul Abbas took the stage at a glitzy, taxpayer-funded BC LNG conference last year – to lecture us about not “killing the goose that lays the golden egg” – if these are the only terms under which the likes of Petronas will come set up shop here, then we don’t need them. It’s as if they’re saying, “Cut your public benefits and environmental standards to zero, or we’ll take our ball and go home.” Well, take your bloody ball and go home then.

It’s not all about money

And this is all assuming that with enough money on the table (which of course there isn’t), we’d go for this deal. Well, increasingly, the public and First Nations beg to differ. Just look at the Lax Kw’alaams Band and their recent rejection of an unprecedented bag of loot – $1.15 BILLION and $100 million worth of crown land. Apparently, there’s more to money for some of us – like protecting wild salmon that would be severly threatened by Petronas’ proposed plant on top of the Skeena River eestuary.

That’s what yesterday’s announcement was really about: quelling investor fears over the very public face plant that was the failed Lax Kw’alaams deal. Except that Clark has nothing meaningful or new to offer. And she’s panicking now. After all the big promises of a $100 Billion “Prosperity Fund” in the last election – the thing that vaulted her past the NDP, long favoured in the polls – even she now must realize that it’s time to put up or shut up (well, we can dream on the latter)

Yet that’s looking less and less likely. Her other favourite horse – tax fraudster Indonesian billionaire Sukanto Tanoto – is facing an uphill battle in Howe Sound. First Nations and citizens along the various pipeline routes are digging in their heels. Asian LNG prices have plummeted to well below the break-even point for BC LNG exports, obliterating the entire business case for the industry.

In fact, about only way the Petronases of the world can hope to see a profit from BC LNG is by picking your and my pockets. The only way this industry makes sense is with huge, unbilled environmental externalities and massive taxpayer subsidies.

Take it or leave it, says Mr. Abbas.

Leave it, then.

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Lax Kw’alaams rejects Billion-dollar LNG deal; Lake Babine signs paltry one

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Lelu Island and Flora Bank (foreground) - site of controversial proposed LNG plant (Skeena Watershed Conservation Soc.)
Lelu Island and Flora Bank (fore) – site of contentious proposed LNG plant (Skeena Watershed Conservation)

The BC Liberal government and LNG industry suffered a blow this week with a final losing vote amongst Lax Kw’alaams Band members over a billion-dollar package offered to support Petronas’ Pacific NorthWest LNG plant near Prince Rupert.

At the same time, a much smaller, quieter deal was being signed by the elected leadership of the Lake Babine Nation, pertaining to the pipeline that would feed the coastal plant – the Prince Rupert Gas Transmission line. On the table in this “Project Agreement” between the 2,440-member band and pipeline contractor TransCanada was a comparatively paltry $3.56 million, plus a piece of a $10 million a year revenue sharing deal to be split amongst a number of First Nations along the pipeline route if it becomes operational.

According to the Prince George Citizen, the upfront sum of  $3.56 million will be issued in the following phases:

[quote]When the agreement takes effect Lake Babine Nation will get $324,000, when construction begins they get $1.62 million, and then the same amount when the pipeline is in operation.[/quote]

A pretty big deal

Lake Babine members must be scratching their heads wondering how their leaders settled for so little, while the Lax Kw’alaams Band at the end of the pipeline turned down what has been touted as $1.15 Billion in benefits over 40 years, following a series of votes amongst its members over the past week. All three votes, including one held for off-reserve members in Vancouver last night, went down to defeat. Even the BC government, desperate to see at least one of its many embattled LNG projects go forth, threw in 2,200 hectares of Crown land in the region, pegged at a value of $108-million.

Yet all the money and land couldn’t outweigh members’ concerns over the impacts of the massive plant proposed for Lelu Island on Skeena River salmon. A causeway for ships to dock at the plant would disturb vital eelgrass habitat in the estuary at Flora Bank (pictured above), warn scientists and conservation groups. For this very reason, a smaller coal plant operation was rejected by the federal government decades ago, when stocks were admittedly far healthier than today.

Band won’t bight on salmon assurances

The proponent has agreed to make some modifications to its design and a conveniently-timed report which it paid for argues the impacts will be negligible. But independent scientists disagree, suggesting the project could collapse already troubled Skeena stocks. And let’s not forget – this is the same proponent that literally erased the entire Skeena River and estuary from its initial project maps! So it’s easy to see how a few project tweaks and a company report would do little to sway Lax Kw’alaams members.

The band’s high-profile rejection of the project is no doubt rippling through the Liberal Cabinet room today – yet another blow to the government’s one and only economic development policy. Yet many were quick to point out that the door is still open to PacificNorthwest LNG, despite this week’s setback.

Petronas - no Skeena

Keeping the dream alive

There was lawyer David Austin – a longtime promoter of controversial energy projects in BC, including the government’s once-vaunted private river power scheme – ready to toss aside First Nations’ rights before the final votes had even been cast. The Canadian Press paraphrased his comments as follows:

[quote]Lelu Island is Crown land managed by the Prince Rupert Port Authority, which means the province technically has the authority to push ahead without support from the Lax Kw’alaams.

Even if the band proves it has aboriginal title — which would require proving it has had exclusive occupancy of the territory — Supreme Court precedent gives the province the right to override that claim.[/quote]

Premier Clark also vowed that an agreement would yet be reached with the band and even Lax Kw’alaams’ councillors suggested they were still open to a deal on the project, so long as it avoided the contentious salmon habitat in Flora Bank. “Lax Kw’alaams is open to business, to development and to LNG,” including this particular project, a statement noted.

Meanwhile, agreements like the one signed by Lake Babine show that there are many more moves to be played out in this chess game. TransCanada boasts similarly vague agreements over the pipeline with the Nisga’a Lisims Government, Gitanyow First Nation and Kitselas First Nation.

And according to CP:

[quote]The B.C. government said it has reached 54 pipeline-benefits agreements with 28 First Nations across the province. Of the 59 First Nations along the natural-gas pipeline ending at Lelu Island only five have publicly announced signing agreements with the government.[/quote]

So the battle over Petronas’ LNG plant is far from over, yet with all the rhetoric and lack of real progress on the project, it’s starting to seem like it’s less about natural gas than hot air.

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Rafe: Woodfibre LNG is bad business for BC

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Rafe- Woodfibre LNG is bad business for BC

Except briefly, let’s avoid environmental questions about Woodfibre LNG for today and concentrate on fiscal matters.

Even if Woodfibre LNG was an environmental bonus to Howe Sound and the surrounding communities; even if it was clean as a whistle, its plant and accoutrements safe as a church, and the tanker traffic absolutely guaranteed by God to cause no accidents, the case against having this plant would be open and shut.

Let’s look at it from a business proposition.

The business case against BC LNG

To start with, BC’s negotiators have absolutely no experience whatsoever in the business field, much less dealing with the likes of Sukanto Tanoto, a certified, major league tax evader – not avoider, evader.

Up against this shady, at best, Indonesian billionaire, we have Premier “Photo-Op” and her poodle, Natural Gas Minister Rich Coleman, prancing around the world, hyping LNG, dealing way over their heads in what is, more and more each day, a losing proposition. They’re doing this because they’re politically committed and rather than simply say, “we were premature and excessive in our enthusiasm,” and lose face, they’re bluffing it through, at our expense (1st Class all the way), hoping like Mr. Macawber that “something will turn up.”

BC leaders in way over their heads

Energy expert debunks Minister Coleman's BC LNG math
BC Minister of Natural Gas Development Rich Coleman

Here are the business qualifications of this pair.

Christy Clark, though she attended three universities, has no degree and no professional background, let alone so much as 24 hours experience in any business.

Before his election to the Legislature, Rich Coleman ran a real estate management and consulting company and is a retired policeman.

His Official Legislature biography utters not a peep about his work background, but says:

[quote]Before entering public life, Rich was governor of the BC Kinsmen, president of the Aldergrove Chamber of Commerce, Langley’s 1988 Volunteer of the Year, and a director on several volunteer boards. As a member of the Aldergrove Kinsmen Club in the 1980s, Rich oversaw the volunteer fundraising and construction efforts that built the Aldergrove Kinsmen Community Centre, a vital community facility which houses a preschool, library, workout area, and meeting space. The Club was also involved in building a successful housing project in Aldergrove. Rich is a life member of the Kinsmen.[/quote]

The premier and Mr. Coleman especially seem to have been fine citizens yet just how that qualifies them to deal with international corporate slime bags is quite another matter.

About said Slime Bags

Before getting into this, let’s have a quick look at Tanoto’s environmental record. Greenpeace calls him “Indonesia’s lead driver of rainforest destruction”. Tanoto doesn’t deny his gross, unwarranted destruction of rain forests but claims he has reformed.

Woodfibre LNG Vice-president Byng Giraud was, from 2010 until 2013, vice-president corporate affairs for Imperial Metals, owner of the Mount Polley mine which, in 2014, caused massive destruction in Quesnel Lake, Polley Lake, Hazeltine Creek and Cariboo Creek, the entire Quesnel and Cariboo river systems right up to the Fraser River.

When asked about Tanoto’s appalling environmental record, Mr. Giraud scarcely puts up a vigorous defence for his boss, stating:

[quote]When you come (to B.C.) you have to follow the rules, regulations and conditions imposed by our regulatory regime.[/quote]

Just as Tanoto’s companies do in Indonesia, presumably.

Tax evader extraordinaire

But what about his corporate reliability? Can we trust Tanoto to be responsible and meet his financial responsibilities?

Surely even to Clark and Coleman this is of huge importance and requires the highest degree of “due diligence”.

Let The Guardian, one of the most respected papers in the world, speak the evidence:

[quote]Giant Asian logging companies that make billions from destroying rainforests use a labyrinth of secret shell companies based in a UK overseas territory, the British Virgin Islands (BVI), which operate as a tax haven, according to documents seen by the Observer. The 13 companies own millions of acres in Indonesia, provide much of the world’s palm oil, timber and paper, and use complex legal and financial structures to keep their tax liabilities low.

An unpublished two-year investigation by anti-corruption experts, and seen by the Observer, says Britain should launch a major investigation into the use of the BVI and other tax havens by “high-risk” sectors such as Indonesian forestry. This follows a court case in Jakarta in which one of the world’s largest palm oil companies, owned by billionaire Sukanto Tanoto, was fined US$205m after being shown to have evaded taxes by using shell companies in the BVI and elsewhere. The company has agreed to pay the fines.

Documents arising from the case show that Tanoto’s company, Asian Agri, systematically produced fake invoices and fake hedging contracts to evade more than $100m of taxes. [emphasis added][/quote]

When you see and read ads by their PR prevaricators about the huge advantages Woodfibre LNG will confer on British Columbia, you might just recall those words: “Documents arising from the case show that Tanoto’s company…systematically produced fake invoices and fake hedging contracts to evade more than $100m of taxes.”

Thus we might well wonder, “Will Tanoto leave behind, for our generosity, a penny of taxes or royalties or, more likely, will the money all somehow wind up in Singapore?”

Even a casual investigation of Tanoto’s modus vivendi discloses a pattern of moving money around his companies so as to avoid, if not evade tax – why wouldn’t he do the same with Woodfibre LNG?

Thinking like Tanoto

Woodfibre LNG- Shady PR firms, lobby violations, fraudulent owner - Is this the kind of business BC wants to welcome
Indonesia’s Sukanto Tanoto – one slippery customer

This scenario is corporate child’s play.

Suppose Pacific Energy Corp., a Tanoto company, buys gas on the Alberta exchange (Woodfibre LNG has opened a Calgary office to do just that), then transfers it to Woodfibre LNG Export Pte. for just enough to cover Pacific’s Energy’s costs to Woodfibre – resulting in zero profits there. No problem – all the same owners.

Now, Woodfibre LNG Export Pte. has a deal with Woodfibre LNG Ltd. (WLNG) – the guys at Squamish – for the latter to liquefy the gas and store the LNG. That contract also sets a price that just covers WLNG’s costs. Result: No profits at WLNG, either.

With me so far?

Here’s where it’s “now you see it, now you don’t” – so do pay close attention!

Woodfibre LNG Export Pte. – a company which may be as insubstantial as a single trader at a desk anywhere – sells the LNG to an overseas firm for an annual profit of over $275 million (our Dr. Eoin Finn confirms this as a reasonable prognostication) in the hands of the Singaporean-registered (and domiciled) Woodfibre LNG Export Pte.

LNG sleight of hand

Now, watch the corporate fingers carefully!

Because of the Canada-Singapore tax treaty, which states that Singapore – not Canada – gets to tax this entity, no income taxes for any of this will be levied in Canada. Nor royalty taxes, which are levied at 3.5% on domestic profits, only after capital costs have been fully depreciated (by Woodfibre LNG Ltd., which will own the facility).

Now, folks, here’s where you act really surprised.

Singapore has a 10-year tax holiday for LNG firms!

If you listen carefully, wafting through the tropical palms, you can hear the soft refrain, “let me call you sweetheart…”

What’s in it for us?

So, back to the main question: will Tanoto and his corporate plaything, Woodfibre LNG Export Pte., leave anything behind in taxes or royalties for the considerable privilege of doing business here?

The answer is surely “not a chance”. Why the hell would he? What is there in his track record to make us believe that this time will be different and out of a spirit of corporate generosity he’s going to leave his money in Canada and pay every cent of the taxes and royalties owed?

A PR Flack's Guide to LNG- Dream Team tries to repair industry's image
Clockwise from top left: Teck’s Doug Horswill, Stewart Muir, former A-G Geoff Plant, and Lyn Anglin of Geoscience BC

Apart from welcoming an environmental pariah, we’re walking, eyes wide open, into a deal with a man who’s a convicted big-time tax evader, coming into a jurisdiction where tax evasion isn’t even difficult!

Joining this welcome are a former BC premier, two former attorneys-general, the elite of the business community and The BC Business Council, calling themselves “Resource Works”, spending money like drunks in a Cat House, dishing out half-truths at best to convince us plebes that they know what’s best for us.

And aren’t we so lucky also to have a business-oriented government, guided by Christy Clark and Rich Coleman, looking after our affairs?

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Woodfibre LNG- Shady PR firms, lobby violations, fraudulent owner - Is this the kind of business BC wants to welcome

Woodfibre LNG: Shady PR, lobby violations, fraudulent, eco-criminal owner…Is this the kind of business BC wants to welcome?

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Woodfibre LNG- Shady PR firms, lobby violations, fraudulent owner - Is this the kind of business BC wants to welcome
Sukanto Tanoto (right), the man behind the proposed Woodfibre LNG project

The war against an LNG plant in Squamish is heating up, and as the late singer Al Jolson said, “You ain’t seen nothin yet.”

Know that on this issue, I am not in any way independent. Along with thousands of others, I’m in this fight to the finish.

On the side of the LNG plant is all the money, the company itself and its crooked multi-billionaire owner, the federal government, the provincial government, the LNG lobby, the fossil fuel industry, the tanker industry, the corporate media, and the right wing in general. Shilling for Woodfibre LNG, as readers will know, is an outfit called Resource Works, funded in part by the BC Business Council and, one suspects, Woodfibre LNG itself – although that’s not been admitted or proved.

Incidentally, Woodfibre LNG and Woodfibre Natural Gas are the same company.

David a good match for Goliath

Woodfibre LNG - Public comment period begins for Squamish project
Citizens line the Sea to Sky Highway to protest Woodfibre LNG (My Sea to Sky)

One would think that the forces against us who are fighting this battle to save Howe Sound are such that we should throw up our hands in surrender and be good little boys and girls and obey our “betters”.

Au contraire – the odds are perfect because we have two allies who are invincible, the Citizens and the Truth.

Because we have the facts, telling the truth comes easy to us.

For the same reason, it is impossible for Woodfibre LNG, its acolytes and apologists to do the same. Their streams of half-truths and untruths come naturally, such that they no longer recognize truth from fiction. They also carry with them the conviction of missionaries that what they are doing is God’s work thus is good for the people.

Do I exaggerate?

Woodfibre’s spin machine

Let’s take a look at the credibility issue from several points of view.

Woodfibre LNG, has two PR agencies, one of which is Hill and Knowlton, one of the worlds largest. Here are a couple of their business adventures over the last few years.

A number of the firm’s clients over its history have been involved in most unsavoury practices. These include:

  • The tobacco industry in the 1950s and 1960s
  • The Bank of Credit and Commerce International from 1988–90 (about which Time Magazine said, “Nothing in the history of modern financial scandals rivals the unfolding saga of the Bank of Credit & Commerce International (B.C.C.I.), the $20 billion rogue empire that regulators in 62 countries shut down early this month (July 1991) in a stunning global sweep. Never has a single scandal involved so much money, so many nations or so many prominent people”)
  • The Government of Kuwait in the lead up to the Gulf War
  • The Church of Scientology from 1987–1991.
  • The company has also been famous for polishing the image of governments seeking to hide their human rights violations such as Indonesia, Turkey, Maldives, and Uganda.
  • Hill an Knowlton is one of a number of firms engaged by fracking interests in recent years.

When our governments are called upon to approve applications of Woodfibre LNG and the public to support them, we’re asked to rely upon carefully prepared words. I know from personal experience that the likes of Hill and Knowlton ensure that every public word their client speaks has been carefully laundered and approved. Any resemblance to the truth is strictly coincidental.

How confident are you, under these circumstances, that you’re getting any truth, let alone the whole truth, when you hear from Woodfibre LNG’s president Anthony Gelotti, who has worked in the development of LNG projects all over the world for Chevron, Shell North America, Enron and Mobil?

How about your confidence in the veracity of Woodfibre LNG’s vice president and constant spokesman – about whom more in a moment – Byng Giraud?

Woodfibre VP oversaw regulatory affairs for Mount Polley

Giraud joined Woodfibre Natural Gas Limited in April 2013 and this may interest you – immediately before was vice-president corporate affairs for Imperial Metals, owner of the Mount Polley mine which, in 2014, caused massive destruction in Quesnel Lake, Polley Lake, Hazeltine Creek and Cariboo Creek, and the entire Quesnel and Cariboo river systems right up to the Fraser River. As vice-president, Giraud was responsible for regulatory affairs and communication with regulators.

Woodfibre flacks lie to lobbying commissioner

Woodfibre LNG also uses a Canadian PR firm, Global Affairs Inc.

Now hear this!

In order to lobby the federal government, each of them was required to register with The Office of the Commissioner of Lobbying, pledging that their clients are essentially independent of any control from outsiders. Needless to say, they are expected to be truthful.

Here’s what they did:

First, Hill and Knowlton Strategies’ lobbyists Mark Cameron and Ryan Kelahear – in both their client information segments – state that their client “is not a subsidiary of any other parent companies” and that “The activities of Woodfibre Natural Gas Limited are not controlled or directed by another person or organization with a direct interest in the outcome of this undertaking”.

Meanwhile, Global Public Affairs Inc. lobbyists Katherine Preiss and Dan Seekings gave precisely the same undertakings to the Commission.

These are, to put it bluntly, barefaced lies.

Here is the truth – Woodfibre LNG, the proponent of the Squamish project, is a subsidiary of Singapore-based Pacific Oil & Gas Limited, part of the Singapore-based Royal Golden Eagle group.

Royal Golden Eagle was founded, is owned and controlled by Sukanto Tanoto, a business tycoon with a personal wealth estimated at $2.3 billion US; he is considered one of the richest men in Indonesia.

Indonesian billionaire’s long record of fraud, eco-crimes

But does this really matter? Aren’t these just pieces of paper that the bureaucracy loves to have and tuck away in some obscure spot?

The answer to that is an unequivocal YES it matters a great deal! This information is of vital importance and here is a good example of why – here’s the actual track record of Sukanto Tanoto the PR companies are obviously trying to bury.

As owner of Indonesia’s Unibank, he borrowed heavily and then managed to avoid repayment of $442 million US to customers.

In 2012, Tanoto was found guilty of tax evasion and agreed to pay over $200 million US in fines.

Animal lovers accuse Tanoto’s palm oil enterprise of causing orangutan deaths on a large scale and destruction of the habitat of the Sumatran tiger.

His critics, including Greenpeace, call Tanoto “Indonesia’s lead driver of rainforest destruction.” His companies and contractors routinely violate local laws and illegally expand palm and pulp and paper production into rainforests, national parks and community lands.

He has even been alleged to use violence in response to protests of his logging operations.

In 1988, a rupture occurred in an aeration lagoon at Indorayon, a pulp and paper mill owned by a subsidiary of Tanoto’s RGE, sending raw chemical waste into a river from which several villages drew their water.

Five years later, a boiler exploded, showering the countryside with chlorine and other chemicals. Thousands of people fled. Clearly there were alternatives to chlorine, but they would have made the production process more expensive.

Mr. Tanoto’s companies have a poor record of complying with government regulations.

These allegations, unchallenged by Mr. Tanoto, have been made in first class newspapers, including the Guardian and a summary of them appeared on these pages in an article I wrote some months ago.

Is this kind of neighbour Squamish wants?

This is the man upon whose reputation and credibility Woodfibre LNG depends when they come to our governments, and to us as citizens, and promise that they will obey our laws, not cheat on taxes, and be good corporate citizens – especially when it comes to our environment?

How do you feel about believing Mr. Tanoto, his employees and their public relations companies?

Squamish resident and My Sea to Sky co-founder Tracey Saxby put it this way:

[quote]We need to ask whether Tanoto is who we want to welcome to Squamish as our new neighbour. You have to question as well, when you have somebody who doesn’t necessarily have the same ethics or morals you’d like to see in a good neighbour, how does that filter down in the company that he owns? It really comes down to a question of trust and do we trust that Woodfibre LNG is going to do the right thing. And I think the answer to that is that most people don’t.[/quote]

Industry lobby uses deception, fakes interview

Let me now to take you back to recent articles I wrote here about Resource Works and their averment that that tanker traffic in Howe Sound was confirmed safe by Dr. Michael Hightower of Albuquerque New Mexico. In fact, this was a distorted statement from a phoney interview that was conducted by Resource Works. A sham!

When, after the so-called interview, Dr. Eoin Finn talked to Dr. Hightower it became quite clear that he was not referring to Howe Sound. Moreover, and this would be funny if it weren’t so serious, when you actually use Dr. Hightower’s calculations, there is absolutely no way tanker traffic in Howe Sound could be considered safe. This is more than confirmed by the fact that less conservative scientists than Dr. Hightower have set standards by which the safety boundaries actually go up on top of the Sea-To-Sky Highway!

You will no doubt remember that after this exposure by Dr. Finn and Commander Roger Sweeny, Woodfibre LNG panicked, held an emergency meeting and gave us a new route – which Commander Sweeny, in these pages, carefully analyzed, concluding “Only a certified numbskull would suggest option B.”

Giraud keeps spinning safety fibs

Now here is another critically important example of what I’m talking about when dealing with Woodfibre LNG’s lack of credibility.

Byng Giraud wrote the following in the North Shore News, along with other barnyard droppings, on April 12 last.

[quote]I believe it is also important to clarify that LNG shipping is important to clarify that LNG shipping is extremely safe. LNG has been shipped around the world for 50 years, and there has never been any recorded loss of containment from an LNG carrier at sea. (Emphasis mine – RM)[/quote]

Here are the facts with respect to tankers in Howe Sound, where you may recall, Woodfibre LNG proposes to send its tankers – not LNG tankers at sea.

Minimum Safe Separation

Sandia International laboratories has defined for the US Department of Energy three hazard zones of 500m, 1600m, and 3500m surrounding LNG tankers. The largest, a circle of 3500m radius centred on the moving ship, represents the minimum safe separation between tankers and people. Other LNG hazard experts say at least 4800m is a more realistic minimum safe separation distance.

Channels too narrow

HoweSound_LNG_Tanker_HazardZones_Map_s
Courtesy of Eoin Finn – Click to enlarge

Almost nowhere in Howe Sound can a ship in mid-channel be more than 1600m from shore. North of Britannia Beach, the Sound is only about 2700m wide.   The 3 possible outbound routes from there to the Salish Sea (one east and two west of Bowen) contain another 14 choke points, where the average width is reduced to just 1850m. Thus the Sandia 3500m minimum safety zone extends more than 2 kilometres beyond each side of all those channels.   Virtually the entire Sea to Sky Highway from Britannia down to Lighthouse Park, Anvil, Bowyer, Bowen, eastern Gambier, most of Keats, and the Pasley Islands group, – representing many thousands of people – all lie well within the 3500m zone.

Dr. Finn and Commander Sweeny have interpreted these findings with overlays on charts of Howe Sound and the evidence is solid and final. The proposed Woodfibre LNG tanker route falls well inside these conservative limits.

You can see, I trust, why credibility matters so much.

When Mr. Giraud speaks of “LNG tankers at sea” it’s no slip of the tongue but a very deliberate misstatement. He wants you to think that that safety record includes narrow channels like Howe Sound and it clearly does nothing of the sort.

Opponents not going away

I leave you with this thought:

The Howe Sound Action Committee and the various organizations and citizens that are dedicated to fighting the Squamish LNG proposal realize that all of the money and the power is against us.

We also know that we have two things going for us – the citizens and the facts, and this gives us credibility.

On the other hand, Woodfibre LNG’s “case” is built on falsehood, starting with the question as to who they really are, and half-truths which will always come out and cannot stand the most cursory examination.

Howe Sound is not just the fight of those who live along its shores. This is a gem of nature, possessed by all British Columbians; we must, all of us, take up the cudgels and fight those who would destroy this fantastic natural asset that belongs to all 4 million-plus of us.

We who fight have been underestimated. Woodfibre has underestimated us, the governments have underestimated us, the mainstream media has underestimated us.

That will prove to be a very serious mistake. Let it be clearly understood that we intend to fight to the end and we accept that civil disobedience on a large scale will be required.

We are not going away and we won’t quit.

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