All posts by Common Sense Canadian

Former DFO Manager, Minister: Harper ‘Disembowelled’ Science Budget for Enbridge Review

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Read this story from the Vancouver Sun on evidence that despite his feigned commitment to “listen to science” on the proposed Enbridge Northern Gateway Pipeline, Prime Minster Stephen Harper has “disembowelled” the science budget for the pipeline review. (Aug. 20, 2012)

VANCOUVER – While Prime Minister Stephen Harper says the fate of Enbridge’s proposed pipeline from the Alberta oilsands to tankers on the British Columbia coast will be based on science and not politics, documents show some of that science isn’t forthcoming.

And critics say there is no time for the science to be completed before a federal deadline for the environmental assessment currently underway.

Documents filed with the National Energy Board show the environmental review panel studying the Northern Gateway project asked Fisheries and Oceans Canada for risk assessments for the bodies of water the proposed pipeline will cross. The pipeline is to traverse nearly 1,000 streams and rivers in the upper Fraser, Skeena and Kitimat watersheds.

The department didn’t have them.

“As DFO has not conducted a complete review of all proposed crossings, we are unable to submit a comprehensive list as requested; however, this work will continue and, should the project be approved, our review will continue into the regulatory permitting phase,” DFO wrote in a five-page letter dated June 6, 2012.

The response went on to say there “may be differences of opinion” between the company and the department on the risk posed by the pipeline at some crossings. It provided two examples of crossings of tributaries to the Kitimat River where Enbridge rated the risk as low but Fisheries rated it medium to high.

DFO said the federal ministry will continue to work with the company to determine the risk level and level of mitigation required.

“DFO is of the view that the risk posed by the project to fish and fish habitat can be managed through appropriate mitigation and compensation measures,” said the department’s response.

“Under the current regulatory regime, DFO will ensure that prior to any regulatory approvals, the appropriate mitigation measures to protect fish and fish habitat will be based on the final risk assessment rating that will be determined by DFO.”

Earlier this month, Harper told reporters in Vancouver that “decisions on these kinds of projects are made through an independent evaluation conducted by scientists into the economic costs and risks that are associated with the project, and that’s how we conduct our business.”

He went on to say “the only way that government can handle controversial projects of this manner is to ensure that things are evaluated on an independent basis, scientifically, and not simply on political criteria.”

But the federal government recently sent letters to 92 habitat staff members within Fisheries and Oceans in B.C., telling them that their positions will be cut. Thirty-two of them will be laid off outright.

The cuts will mean the department in B.C. has half the habitat staff it had a decade ago.

All but five of the province’s fisheries field offices will be cut as part of a $79 million — 5.8 per cent — cut to the department’s operational budget, including the offices in Prince George and Smithers that would have had the lead in monitoring pipeline effects.

The marine contaminant group that would have been involved in a spill in B.C. has been disbanded and the fisheries and environmental legislation gutted, said Otto Langer, a retired fisheries department scientist.

“He (Harper) says the science will make the decision. Well he’s basically disembowelled the science,” said Langer. “It’s a cruel hoax that they’re pulling over on the public.”

Former federal Liberal fisheries minister David Anderson agrees.

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New N.W.T. oil prospect raising economic hopes and environmental concerns

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Read this article by Lauren Krugel in the Calgary Herald about a dozen significant oil and gas leases in the central Mackenzie area. (August 12, 2012) “(Chief Wilfred) McNeely said some residents are concerned about how much water would be drawn from the Mackenzie River for the fracking process, in which producers inject water, sand and chemicals into the rock at high pressure in order free the oil and gas. He said some have also expressed concern over chemicals contaminating the river.”

Read more: http://www.calgaryherald.com/business/energy-resources/prospect+raising+economic+hopes+environmental/7078871/story.html

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Canada’s Shrinking Oil and Gas Profits

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Read this story from the Huffington Post on the shrinking profit margins from Canada’s oil and gas sector and how that could be a sign of things to come. (July 25, 2012)

The talk coming out of Canada’s oil patch in recent months has been increasingly tinged with panic. Industry leaders are growing worried about the oil sands’ future prospects, and the earnings reports coming out this week are a good sign of why that may be.

Oil producer Cenovus on Wednesday reported a 40-per-cent decline in profit in the latest quarter, falling to $396 million from $655 million a year earlier.

Things were even worse for Calgary-based natural gas producer Encana, which recorded a whopping quarterly $1.48 billion loss. It had recorded a profit of $383 million in the same period a year earlier.

(And Canada’s largest energy producer — Suncor — said on Wednesday it’s mulling delaying some of its new projects. The company denied market conditions were behind the move, saying only that the company is “looking at how we get the best economics for those projects.”)

On the surface, the reason for this is obvious: Declining energy prices. Natural gas prices are at rock bottom, and prices for oil have been under downward pressure as the world economy faces a tough summer thanks to Europe’s credit crisis and a slowdown in China.

But beneath the surface is a rapidly-changing global energy industry. With the U.S. rapidly developing its shale oil and gas deposits, Asia increasingly looking to renewable energy, and the controversy over the environmental impact of the oil sands showing no signs abating, Canada’s energy exporters could find themselves in a seemingly unthinkable situation: Lots of oil, and few markets to sell it.

All this is happening just as Canada’s dependence on energy exports has been reaching new heights. As the Globe and Mail reported, oil and gas sales, as well investment in oil sands infrastructure, accounted for one-third of Canada’s economic growth in 2010 and 2011.

So what happens to Canada when energy and commodity prices go down? One thing that happens is it becomes cheaper to tank up your car. But at a certain point, as prices come down, the benefit to Canada of lower gas bills and cheaper commodities is overtaken by the cost to the economy of lost exports.

“If oil prices get to a point where they are going to deter investment in the [energy] sector, the negatives outweigh the benefits,” TD Bank economist Diana Petramala told the Globe.

That scenario — unthinkable just a few years ago — may be exactly what Canada’s natural resource sector may be facing. And it’s not just a temporary blip in prices Canada is facing — it may be a permanent and revolutionary shift in energy extraction that makes Canada’s oil sands far less desirable than they seemed until now.

One thing threatening Canada’s energy sector is the new American oil and gas boom. With new extraction techniques like hydraulic fracturing coming online, U.S. energy companies are busily starting to drill on domestic soil again. The oil industry in Texas is booming in a way it hasn’t in more than three decades, and plenty of other, less expected, places are becoming oil meccas. Meanwhile, new supplies of natural gas have pushed prices for the energy source down to near-record levels.

This boom is already having tangible effects on Canada’s oil industry. Insiders estimate that Canadian exporters, unable to export to markets other than the U.S., are facing a $15 per barrel discount on the oil they sell, when compared to international Brent crude prices.

But it’s not just supply and demand that’s cutting into Canadian energy profits — it’s Canada’s lacklustre response to the world’s concerns about oil sands carbon pollution.

Read more: http://www.huffingtonpost.ca/2012/07/25/canada-oil-gas-shrinking-profits_n_1702807.html

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Commercial, Recreational Sockeye Fisheries Likely Closed for 2012

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Read this story from CBC.ca, reporting that the commercial and recreational sockeye fisheries likely won’t open in 2012, due to low returns on the Fraser River. (Aug. 16, 2012)

British Columbia’s lucrative commercial and recreational sockeye salmon fishery is not likely to open this year, as Fisheries and Oceans Canada says there are simply not enough fish coming back.

Although there has been enough returning fish to fill the spawning grounds and open an aboriginal fishery, numbers have actually started to decrease.

In order for a commercial fishery to operate, the number of summer run sockeye salmon would have had to be roughly double last week’s count.

“Returns to some of the populations this year have been fairly good,” said Barry Rosenberger, co-chair of the Pacific Salmon Commission’s Fraser River Panel.

“But overall, we haven’t achieved a total abundance that would allow us to commercially fish.”

Read more: http://www.cbc.ca/news/canada/british-columbia/story/2012/08/15/bc-sockeye-salmon-fishery.html

 

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BC Media Mogul David Black Proposes $13 Billion Refinery in Kitimat Linked to Enbridge Pipeline

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Read this story from the Vancouver Sun on BC media mogul David Black’s proposal to build a $13 Billion refinery in Kitimat to process Alberta bitumen from the Enbridge pipeline. (Aug 17, 2012)

VANCOUVER – B.C. community newspaper tycoon David Black proposed today building a $13-billion oil refinery near Kitimat to use all of the crude from Enbridge’s controversial Northern Gateway pipeline.

It would mean tankers would ship refined fuels like gasoline off of B.C. northwest coast, not heavy oil from Alberta, reducing environmental risks, says Black.

A refinery also promises 10 times as many jobs as an export pipeline.

See more David Black photos here

Black is hoping his proposal will change opposition from British Columbians and first nations, many of which have rejected the $6-billion project because they say the economic rewards for B.C. are not great enough to offset the risk and consequence of an oil spill on the pipeline or off the northwest coast of British Columbia.

Last month, B.C. Premier Christy Clark also declared the province would not even consider the Northern Gateway project unless it gets a much greater share of the economic benefits.

Acknowledging that oil producers that want to ship oil on the Northern Gateway pipeline are not in favour of a refinery in B.C., Black said his new company, Kitimat Clean Ltd., is submitting an environmental assessment application to build the refinery.

Since the economic returns from a refinery are less than exporting oil, and no company has stepped forward to spearhead the project, he decided to do it himself, said Black.

He first proposed the idea to Canada’s oil companies seven years ago when he was chairman of the B.C. Progress Board, and resurrected the idea 11 months ago.

“I am hoping to serve as a catalyst to attract an industry consortium that will undertake the project. But if no industry player steps forward during the two-year environmental assessment I will do all that I can to organize the capital and build the refinery,” said Black, who owns 150 community newspapers in B.C. and the United States.

Added Black: “I think the pipeline and the refinery are crucially important to our northern communities, to B.C., to Alberta and to Canada. We must protect the environment, but we must create jobs for the next generation as well. It is our responsibility to do both.”

The proposed refinery in Kitimat would provide many more jobs than an export pipeline.

The refinery is estimated to create 3,000 jobs, half of those directly in the refinery and the other half in contract jobs. Another 6,000 workers would be hired during the five-year construction period.

Black is proposing to reduce capital costs from Canada’s high labour rates by building refinery modules offshore to be shipped to Kitimat.

The Northern Gateway pipeline is estimated to create about 350 permanent and contract jobs in B.C., one-tenth of the permanent jobs a refinery would create.

A pipeline would also create thousands of jobs during its three-year construction phase.

The planned Northern Gateway pipeline is meant to open up new markets for crude from the Alberta oilsands, breaking the reliance on the U.S. market, and as a result bringing a higher price for Canada’s oil, an estimated $25 billion more a year.

That goal can be achieved with a refinery on the coast with access to Pacific Rim markets, said Black.

The refinery will also remove any threat of “catastrophic” offshore pollution from heavy crude oil because refined fuels such as diesel, gasoline and kerosene evaporate, said Black.

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TransCanada Begins Building Keystone XL in Texas Over Protests

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Read this story from the Los Angeles Times on Canaddian company TransCanada Pipelines’ preliminary construction on the controversial Keystone XL pipeline in Texas, amid strong opposition from local citizens and landowners. (Aug. 16, 2012)

The Canadian pipeline company TransCanada has quietly begun construction of the southern leg of the controversial Keystone XL pipeline, installing segments near Livingston, Texas, company officials confirmed Thursday.

“Construction started on Aug. 9. So we’ve now started construction in Texas,” TransCanada spokesman Shawn Howard told the Los Angeles Times.

The southern section of the pipeline received government approval in July.

The first in a series of protests also was launched Thursday as opponents of the pipeline, designed to eventually carry diluted bitumen from the tar sands of northern Canada to refineries on the Texas Gulf Coast, unfurled protest banners at two equipment staging yards in Texas and Oklahoma.

“We just wanted to demonstrate that although they might be ready to begin, we would be ready to meet them,” Ron Seifert, spokesman for Tar Sands Blockade, said in an interview.

He said citizens are prepared to stage sit-ins and other civil disobedience actions to halt the effort of “an international bully” to begin building a pipeline that has spurred widespread protests across the U.S.

TransCanada hopes to construct a pipeline from the Canadian border to Texas. But President Obama in January rejected the company’s application for an international permit to build the entire structure, saying it needed further study — particularly of any route through the sensitive Sandhills of Nebraska, which lie atop a massive agricultural aquifer.

TransCanada has agreed to reroute the northern portion of the pipeline in Nebraska and has launched a new application. In the meantime, the company, with Obama’s endorsement, has moved to begin construction of the southern half, from Oklahoma to Texas. This portion does not require an international permit.

That construction was imminent became clear in late July, when the U.S. Army Corps of Engineers approved the last of three key permits needed to build the southern section.

Read more: http://www.latimes.com/news/nation/nationnow/la-na-nn-keystone-xl-pipeline-20120816,0,6693892.story

 

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NDP Supports Fracking Pipeline to Kitimat

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Read this story from The Georgia Straight on the BC NDP’s support for a new pipeline designed to take natural gas from controversial hydraulic fracturing operations in Northeast BC to Kitimat on the province’s coast to be converted to Liquefied Natural Gas and shipped to Asian markets. (Aug. 15, 2012)

The B.C. NDP is opposing the proposed Enbridge oil pipeline, but it supports a pipeline that will transport gas produced through fracking.

 

For Michael Jessen, the Green Party of B.C.’s energy critic, that’s a clear double standard.

 

“The NDP is trying to have its cake and eat it too,” the Nelson-based Jessen told the Straight in a phone interview. According to him, New Democrats are wrong to back the planned 463-kilometre Pacific Trail Pipelines project that will run a pipe from Summit Lake, 55 kilometres north of Prince George, to a liquefied-natural-gas plant in Kitimat. The project is a joint venture of Apache Canada Ltd., EOG Resources Canada Inc., and Encana Corporation.

 

Kitimat is also the western end of Enbridge’s 1,170-kilometre pipeline that would move bitumen from Alberta’s tar sands.

 

Jessen said that the B.C. NDP’s position on the two projects that involve exports to Asia, in particular China, is contradictory. “Every credible scientist in the world says that we are in very grave danger of passing a tipping point when the planet may reach temperatures that cause considerable havoc,” he said. “And the solution that many of these scientists say we need to follow is to decrease our dependence on fossil fuels.”

 

Fracking is the practice of pumping fresh water and toxic chemicals deep into the ground to fracture shale bedrock in order to release natural gas.

 

“It’s been proven that when fracking occurs, there is a considerable amount of methane that is released into the atmosphere,” Jessen explained. “Methane is a far more immediate threat in terms of greenhouse gas when it is released.”

 

John Horgan is the B.C. NDP critic for energy, mines, and petroleum resources. “In terms of the notion that there’s a contradiction in NDP policy, I don’t think there is,” the Juan de Fuca MLA told the Straight in a phone interview.

 

Although the extraction and use of both oil and gas affect the environment, Horgan stressed that the impacts of gas are “not as devastating”.

 

“One of the arguments being made is that they’re both the same, and they’re not,” he said about the two fossil fuels.

 

The two-term MLA noted that his party supports the expansion of the natural-gas industry in B.C. “provided that appropriate regulatory regimes were in place”. The two-term MLA added that if the B.C. NDP forms the government next year, it will strike an expert panel to review fracking.

 

“We think that the industry is mature here, as opposed to other places where they’ve had concerns,” Horgan said.

Read more: http://www.straight.com/article-755826/vancouver/bc-ndp-favours-fracking-pipeline

 

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Global TV: Enbridge Under Fire for Misleading Animation of Pipeline, Tanker Route

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Watch this video news story from Global TV on the controversy over Enbridge’s pipeline and tanker route animation, which is drawing criticism for its misleading portrayal of Douglas Channel without the many navigational impediments it contains. The Common Sense Canadian broke this story months ago with this story by Damien Gillis. (Aug. 15, 2012)

 Watch video here: http://www.globaltvbc.com/video/index.html?v=Is64y8ASHdAdTsYZEpfELzqMJHMzKE46#news+hour+final

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China: The World’s Next Fracking Frontier?

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Read this story and check out this audio clip from PRI’s The World exploring new shale gas finds in China and the future of controversial hydraulic fracturing there. (Aug. 15, 2012

On Shanghai’s Huangpu River, a barge hauls coal upstream to one of the power plants that keeps this city booming. China is the world’s biggest energy guzzler, and it gets three-quarters of its power from coal.

But coal is one of the dirtiest fuels around. It’s the main reason so many of China’s cities are choked with smog, and why China is now the world’s biggest greenhouse gas polluter.

China energy analyst Bill Dodson says it’s “one of the disappointments in China’s rapid development… that it chose to use technologies that are about 200-years-old.”

But these days China is scrambling to find newer and cleaner technologies. And it thinks it’s found a promising one in hydraulic fracturing, or fracking.

Fracking is a relatively new way of getting at cleaner-burning natural gas. It uses pressurized water and chemicals to fracture soft shale rock deep underground and pump out natural gas trapped inside. The technology is revolutionizing energy markets and helping gas take a big bite out of coal use in the US.

“We’d like to repeat the same successful story in China,” says Yang Fuqiang, with the Natural Resources Defense Council (NRDC) in Beijing,

Yang says China is already making big strides in pollution-free power sources like wind and solar, but they’re still likely to provide only 15 percent of China’s energy by 2020.

“That is not enough’” Yang says. “So I think another way is to develop more natural gas and shale gas.”

China has huge untapped shale gas deposits, and supporters hope they can be a bridge between coal and broader use of renewables. The country has drilled several dozen trial wells, and in March, state-owned PetroChina signed its first production agreement with Shell. China has also invited other global energy players to bring in their technology and expertise.

But no one’s sure the investment will pay off.

“There is no guarantee that the technology will be suitable for China,” says Tao Wang, a scholar at Beijing’s Carnegie-Tsinghua Center for Global Policy. Much of China’s shale may be difficult to fracture. It also tends to be under rugged and remote terrain. So Tao says the Chinese are tempering their hopes for fracking.

Then there are the perhaps more formidable challenges.

Perhaps the biggest is that fracking requires huge amounts of water. That’s a big concern in a place like China, where the country’s age-old problem of water shortages is written into traditional songs like “The Yellow River is Dry.”

Energy analyst Bill Dodson says China’s water problems are only getting worse, and fracking would have to compete for the ever-scarcer supplies with industry, agriculture, and growing cities.

But others say that’s not a deal-breaker.

Ming Sung, a former chemical engineer for Shell who’s now with the Clean Air Task Force, says he’s cautiously optimistic about the environmental benefits of fracking, in part because there are now technologies that allow fracking operations to recycle the water they use. Researchers are also exploring chemical alternatives to water.

Read more and listen to audio story: http://www.theworld.org/2012/08/the-next-fracking-frontier-china/

 
 
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Sea Shepherd Goes on Record to Clarify Captain Paul Watson’s Legal Position

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Read this statement from the Sea Shepherd website, quoting Paul Watson’s attorney, clarifying the captain current legal predicament. (Aug. 11, 2012)

After much speculation and misinformation about the impact of the recently announced ‘Red Notice’ issued by Interpol for Captain Paul Watson, founder and president of Sea Shepherd Conservation Society who was arrested at Frankfurt airport on May 13th and held in Germany for 70 days until his departure on or around July 22nd, Sea Shepherd is setting the record straight.  Using information posted to its website as provided in a letter from Captain Watson’s lead legal counsel in Germany, Oliver Wallasch, Sea Shepherd addresses the speculation head-on with the legal facts of this case.

Questions & Answers

Q.: What is the impact of Captain Watson forfeiting bail to leave Germany?

A.: Skipping bail in Germany is not a crime! This is totally different from U.S. jurisdiction and from other countries in the world. Article 2 of the German constitution states, that Germany grants personal freedom. Therefore it is not even a crime in Germany to escape from prison. The decision of the client to leave the country leads only to the consequence that the local (not international!) arrest warrant of the Higher Regional Court was set into force, and that bail is seized (forfeited) on decision by the court. Because of the fact that the client was arrested in an extradition procedure, Germany is not actively searching for Mr. Watson locally or internationally.

Letter from Paul Watson's lawyer. (Click to read the entire unedited letter)Letter from Paul Watson’s lawyer. (Click to read the entire unedited letter)

Q.: What is the extradition procedure in Germany as it pertains to this case?

A.: In the case of Mr. Watson, we knew that besides the request of Costa Rica, there was also a ‘blue’ note issued by Interpol on charges from Japan against the client. This ‘blue’ note on the warrant from Japan has been active since 2010 and has not converted into a ‘red’ notice with Interpol during the whole extradition procedure with Costa Rica. But we learned that Japan was highly interested concerning the procedure with Costa Rica because they sent requests through Interpol Tokyo to the Higher Regional Court to gather more information on the procedure itself. This was absolutely unusual. The German authorities are allowed to extradite even without a special treaty with the requesting country. Therefore it was very likely that Japan would ask for extradition itself on a bilateral basis; after Mr. Watson left the country, we learned that such an extradition request was forwarded by the Japanese Embassy through the Ministry of Foreign Affairs to the General Public Prosecution Office in Frankfurt.  The scenario would have been that Mr. Watson would have been extradited to Costa Rica, and then extradited after the procedure to Japan.

These facts show, that there was a link between the extradition request from Costa Rica and the upcoming extradition request from Japan. Having in mind that the president of Costa Rica visited Japan at the end of 2011, having in mind that Japan granted an enormous amount of money for “environmental protection” in Costa Rica, it is obvious that these two countries have a very close relationship.

Q.: Is the Interpol ‘Red’ Notice a warrant and what is its impact?

A.: Interpol Notices are international alerts allowing police in member countries to share information. Interpol is not actively issuing arrest warrants, Interpol is not actively searching for the defendant, and Interpol is not involved in the extradition procedure.  Interpol just exchanges information between the police in the member countries.

The information that Interpol has issued a ‘red’ notice against Mr. Watson on the charges of Costa Rica only means that the police in the member countries shall be aware that Mr. Watson is wanted by Costa Rica.   It is up to the police and the judicial authorities within the Interpol member countries whether or not they want to act on this local arrest warrant from Costa Rica.

Read more: http://www.seashepherd.org/news-and-media/2012/08/11/setting-the-record-straight-on-paul-watsons-legal-status-1425

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