All posts by Canadian Press

CN, Harper Government eyeing oil-by-rail to Prince Rupert

CN, Harper Government eyeing oil-by-rail to Prince Rupert

Energy and Resources, Oil&Gas
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CN, Harper Government eyeing oil-by-rail to Prince Rupert
A 2012 CN derailment near Calgary

OTTAWA – CN Rail, at the urging of Chinese-owned Nexen Inc., is considering shipping Alberta bitumen to Prince Rupert, B.C., by rail in quantities matching the controversial Northern Gateway pipeline, documents show.

Internal memos obtained by Greenpeace under the Access to Information Act show the rail carrier raised the proposal last March with Natural Resources Canada.

Plan “B” for Enbridge pipeline

“Nexen Inc. is reportedly working with CN to examine the transportation of crude oil on CN’s railway to Prince Rupert, B.C., to be loaded onto tankers for export to Asia,” states a departmental briefing note setting up the March 1 meeting.

An attached CN presentation paper notes:

[quote]CN has ample capacity to run seven trains per day to match Gateway’s proposed capacity.[/quote]

CN is denying it has made a specific proposal for Prince Rupert but says it will consider any such project as it comes up.

Greenpeace provided the documents to The Canadian Press.

The proposed Enbridge Northern Gateway pipeline, which would carry crude oil to Kitimat, B.C., has met fierce opposition from First Nations and environmentalists.

Greenpeace researcher Keith Stewart said the CN rail pitch has the appearance of a “Plan B” in case Northern Gateway is blocked, but that it raises “the same or greater risks.”

The ghost of Lac-Mégantic

The horrific Lac-Megantic, Que., disaster in July, which claimed 47 lives when a train carrying crude oil derailed and exploded, has focused intense scrutiny on the burgeoning oil-by-rail industry.

Some 5.5 million litres of oil either burned or leaked into the environment in Lac-Megantic. The fire burned for four days.

CN downplays plans

A spokesman for CN Rail told The Canadian Press in an email that “no specific crude-by-rail project to Prince Rupert (was) discussed” at the March meeting with Natural Resources Canada.

The company “does not disclose publicly its commercial discussions with customers,” Mark Hallman said in the email.

“CN will continue to explore new opportunities to move crude oil safely and efficiently to markets,” Hallman wrote.

[quote]The company will consider concrete crude-by-rail proposals, including any specific project to move crude to Prince Rupert. However, there is no infrastructure in place at Prince Rupert to transfer crude oil from train tank cars to vessels.[/quote]

Oil-by-rail was government’s suggestion

Hallman also noted it was the government that asked CN for the meeting, not the other way around.

Indeed, the documents obtained by Greenpeace show Ottawa was intensely interested in oil by rail, at least prior to the Quebec accident.

“NRCan is currently meeting with Transport Canada to mutually understand how rail could be part of a solution to current market access challenges,” says an undated memorandum for Natural Resources Minister Joe Oliver.

The memo describes rail as “an increasingly viable option” and states that carriers Canadian Pacific and CN “have indicated that the potential to increase rail movements of crude oil is theoretically unlimited.”

Rail officials had indicated that a project to bring crude to port for tanker export “is likely in future.”

No environmental assessment

A separate memo for International Trade Minister Ed Fast and Dennis Lebel, then the transport minister, assets that Transport Canada “has identified no major safety concerns with the increased oil on rail capacity in Canada, nor with the safety of tank cars …”

The memo states that “transportation of oil by rail does not trigger the need for a federal environmental assessment” but notes that “proposals to construct new infrastructure to support the activity” may require an assessment under the Canadian Environmental Assessment Act.

Memo blacked out

The “Departmental Position” on oil by rail is entirely blacked out from the memo.

Greenpeace’s Stewart said the Lac-Megantic tragedy revealed that federal safety regulations hadn’t kept pace with the oil-by-rail boom. Stewart added:

[quote]If the government or industry imagines they can use these regulatory loopholes to do an end-run around opposition to tar sands moving through those lands or waters, they will be in for a rude awakening. [/quote]

Rail seen as alternative to unpopular pipelines

Opposition in Canada to the Northern Gateway and in the United States to TransCanada’s Keystone XL pipeline has keyed on stopping or slowing development of Alberta’s oilsands development.

The undated memo to Oliver, the natural resources minister, suggests that’s wishful thinking.

“Despite difficulties related to new pipeline capacity, Canadian crude producers are unlikely to slow down production and will turn to rail to ensure their product reaches market,” said the memo.

[quote]To date, there hasn’t been a project to bring crude by rail to port for tanker export, however rail officials indicate that such a project is likely in future.[/quote]

— With additional reporting by Dene Moore in Vancouver

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Russians storm Greenpeace ship with 2 Canadians, tow to port

Russians storm Greenpeace ship with 2 Canadians, tow to port

Energy and Resources, Oil&Gas
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Russians storm Greenpeace ship with 2 Canadians, tow to port
Greenpeace activists attempt to scale a Russian arctic drilling rig (photo: Greenpeace)

The Russian Coast Guard says a Greenpeace ship it stormed, with two Canadian activists among people they are holding, is being towed toward the nearest port.

It said Friday the ship’s captain refused to operate the Arctic Sunrise, so a Coast Guard ship has arrived at the scene to tow the ship to the nearest port, in the city of Murmansk.

The trip will take three to four days.

Arctic Campaign Co-ordinator Christy Ferguson said Paul Ruzycki of Port Colborne, Ont., and a man from Montreal whose name was not released, were arrested when Russian Coast Guard officers boarded their vessel, which Greenpeace says was in international waters.

Ferguson said at least 15 members of the Coast Guard used helicopters and ropes to rappel on board the Arctic Sunrise, a Greenpeace ship carrying a crew bent on protesting offshore oil drilling in the Arctic.

The crew were being held in the ship’s mess, she said, adding no injuries have been reported.

The incident took place Thursday as the ship was circling an oil platform in the Pechora Sea, an arm of the Barents Sea. The platform was owned by Gazprom, a Russian oil company.

[signoff1]

Faiza Oulahsen, one of the activists aboard the vessel, said its captain was held separately on the bridge.

A day earlier, two activists were arrested following an attempt to board an offshore drilling platform belonging to Gazprom.

Russia’s Interfax news agency quoted the Russian Foreign Ministry as saying the crew of the vessel took “provocative” actions and posed a threat to human life and the environment in the Arctic region.

Greenpeace said Friday it has not received any formal confirmation of possible charges and that the activists have been denied access to legal or consular assistance.

— With files from The Canadian Press

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Old buildings get new life through architectural innovation

Old buildings get new life through innovative architecture

Urban & Transport
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Old buildings get new life through architectural innovation
shipping containers are now being converted into homes – part of a growing trend of recycling architecture

VICTORIA – The concept of a house is changing as architects and home owners reinvent the buildings they decide to use for their homes.

Vancouver architect Tim Ankenman has been part of designing many spaces that he calls “building recycling.”

Ankenman’s designs repurpose abandoned warehouses or even multi-purpose commercial space, including movie theatres, into mixed-use residential spaces.

But the vision for his building recycling is based upon the same approach he uses for new buildings: making sure the spaces have the longest life possible.

“The main motivation for these projects is the environment,” said Ankenman. “Even in our new buildings we are designing we try to keep in mind what could happen should that use ever change and we try to design the project accordingly.

[quote]A lot of buildings that are purpose built are stuck being what they were designed for, and either have to be torn down or undergo extensive renovations in order for them to be reinvented.[/quote]

Ankenman has recently been involved in the conversion of two abandoned Vancouver warehouses: the Bowman Block on Beatty Street and the Paris Block on West Hastings.

Old buildings bring seismic challenges

While the environmental benefits of recycling old buildings is important, Ankenman said there are challenges such as zoning and seismic upgrades.

“You have to look at everything from the existing foundation to the ability to put in an elevator and new stairs and looking at whether there is the possibility to add storeys to the existing building and have it make economic sense,” he said.

For both the Bowman and Paris Blocks Ankenman designed the buildings to accommodate commercial space on the bottom and either penthouses or studio and one-bedroom residential spaces in the upper floors.

Schoolhouse lofts

Warehouse loft spaces have become increasingly common in cities like Vancouver, but in Escott, Ont., northeast of Kingston, one entrepreneur brought urban lofts into a former elementary school.

John Simpson had originally purchased the school with the intention of converting it to a seniors complex. When he ran into issues with the surrounding farmland he decided to make the school his home with options for generating income through offices and self-storage units.

“My son and my daughter thought I was crazy when I bought it,” said Simpson. “I had a beautiful farm where I raised horses, alpacas and llamas.

[quote]They couldn’t figure out why I would go from that to an old commercial building, but I’m a big hit now that I’ve done it. All the birthday parties, anniversaries and get-togethers are at my place now because of the space.[/quote]

Switching the building from a 1965 elementary school to something suitable to live in required a considerable financial investment by Simpson. He said the renovation cost between $220,000 and $240,000.

[signoff1]

But instead of changing the character of the space, Simpson worked on restoring much of the school’s charm and adapting it to his residence.

“My living room is at least 2,500 square feet (232 square metres) if not more,” he said. “I was able to bring back the original clay tile floors and in the rest of the house like the bathroom I restored the terrazzo floors.”

In Simpson’s bedroom, which was once the school’s performance stage, he brought back the original birch floors.

“A lot of it was in great shape but needed to be revamped,” he said.

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The End of Coal?

The End of Coal?

Coal, Coal Mining, Energy and Resources, Mining
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The End of Coal?
China is coal’s last great hope – but even that may be changing

by Jonathan Fahey

NEW YORK – The future of coal is getting darker.

Economic forces, pollution concerns and competition from cleaner fuels are slowly nudging nations around the globe away from the fuel that made the industrial revolution possible.

The U.S. will burn 943 million tons of coal this year, only about as much as it did in 1993. Now it’s on the verge of adopting pollution rules that may all but prohibit the construction of new coal plants. And China, which burns 4 billion tons of coal a year — as much as the rest of the world combined — is taking steps to slow the staggering growth of its coal consumption and may even be approaching a peak.

China: The beginning and end of coal

Michael Parker, a commodities analyst at Bernstein Research, calls the shift in China “the beginning of the end of coal.” While global coal use is almost certain to grow over the next few years — and remain an important fuel for decades after that — coal may soon begin a long slow decline.

Coal has been the dominant fuel for power generation for a century because it is cheap, plentiful, and easy to ship and store. But it emits a host of pollution-forming gases and soot particles, and double the greenhouse gas emissions of its closest fossil fuel competitor, natural gas. Now utilities are relying more on natural gas to generate electricity as discoveries around the world boost the fuel’s supplies. The big, expanding economies of China and India are building more nuclear and hydro-electric power plants. Renewable energy sources such as wind and solar, while still a small fraction of the global energy mix, are growing fast as they get cheaper. And a greater emphasis on efficiency is tempering global growth in electricity demand.

U.S. coal consumption lowest in 20 years

In the U.S., coal production is on track to fall to a 20-year low of just over 1 billion tons this year. In the first half of the year, 151 U.S. coal mines that employed 2,658 workers were idled, according to a study conducted by SNL Energy, an energy-market data and analysis firm. Last month the U.S. government held an auction for mining rights to a prime, coal-rich tract of land in Wyoming and didn’t attract a single bid.

Later this week, the Obama Administration is expected to announce a rule that would cap the amount of carbon dioxide that new power plants are allowed to emit. The new limits appear to be impossible for coal plants to meet without carbon-trapping technology that analysts say would be prohibitively expensive — if it were even available commercially yet.

The coal industry and energy forecasters have long known that clean-air rules and competition from natural gas would make the U.S. a tough market for coal. But they predicted that rising coal demand in Asia, and particularly China, would more than make up for the slowing U.S. demand and power strong growth for coal companies for years to come.

China’s coal demand to peak by 2020

Now even that last great hope for coal may be fading. In a report published earlier this month Citibank analysts suggested that “one of the most unassailable assumptions in global energy markets” — that coal demand would continue to rise in China for the foreseeable future — may be flawed. Bernstein Research reached similar conclusions in a report published in June.

Both reports predict coal demand in China will peak before 2020. Bernstein researchers predict Chinese demand will top out at 4.3 billion tons in 2015 and begin to fall by 2016. China is far and away the most important country for the world’s coal industry: Between 2007 and 2012, growth in Chinese coal consumption accounted for all of total global growth, according to Bernstein. Without China, world demand fell 1.2 per cent over the period.

[signoff1]

But Chinese economic growth, which averaged 10 per cent for the 10 years ended in 2012, is expected to slow to 5 per cent to 8 per cent over the next decade. At the same time, the Chinese economy is expected to require less energy to grow, and other forms of generation such as nuclear, hydro-electric and renewables are elbowing into coal’s turf. And government officials are responding to public outcry over China’s notoriously unhealthy air. Last week Chinese authorities announced they would ban new coal fired power plants from three important industrial regions around Beijing, Shanghai and Guangzhou.

In the view of Bernstein analysts:

[quote]All industrialized societies eventually decide that, while cheap sneakers are nice, the environmental damage caused by uncontrolled industrial activity is no longer tolerable.[/quote]

If these new predictions come to pass, it would spell more lean times for coal miners in major coal exporting countries such as the U.S., Australia and Indonesia. At the same time, the shift would give a major boost to efforts to curb emissions of carbon dioxide, a greenhouse gas, and pollutants such as mercury and sulfur dioxide.

Cleaner coal too costly?

Outfitting coal plants with scrubbers and other pollution-trapping equipment makes coal-fired power much more expensive and makes other technologies, including renewable power, comparably less expensive.

“The economics, finally, are at our backs,” says Bruce Nilles, who directs the Sierra Club’s Beyond Coal campaign.

Coal industry predicts better days ahead

To the coal industry, this is simply a lull that plagues commodity markets every few years. A global oversupply of coal that developed last year pushed prices dramatically lower and forced companies to cut back. That glut is now being burned through, the industry says.

Even if economic growth in places like China and India isn’t quite what it was over the last decade, it will still remain strong enough to keep global demand rising for many years, some analysts and industry executives say.

Says Vic Svec, investor relations chief at Peabody Energy:

[quote]Coal has several decades of long-term growth ahead of it.

[/quote]

Peabody, which is the world’s largest investor-owned coal producer, predicts that between 2012 and 2017 the world will need an additional 1.3 billion tons of coal per year — one-third more than the entire U.S. consumes in a year.

“Maybe today (Asia) doesn’t need our coal because there is over-supply and lower prices, but that will change,” says Michael Dudas, a coal company analyst at Stern Agee.

But a growing number of experts are beginning to reconsider the long-held assumption that the developing world will consume ever more coal just the way the developed world once did.

“The era of wanton Chinese coal demand growth is approaching an end,” wrote Citibank analyst Anthony Yuen.

Jonathan Fahey can be reached at http://twitter.com/JonathanFahey .

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Alberta's own Gulf of Mexico crisis? Tar Sands operation leaking for 6-plus weeks

First Nation says CNRL up to 6 leaks in Cold Lake, Alberta

Energy and Resources, First Nations, Oil&Gas, Tar Sands
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Alberta's own Gulf of Mexico crisis? Tar Sands operation leaking for 6-plus weeks
One of 6 leaks believed to be coming from CNRL’s Cold Lake operation (Chester Dawson/WSJ)

COLD LAKE , Alta. – A First Nation says it is concerned about two other leaks at an oilsands project in northeastern Alberta, bringing the total in recent months to six.

Chief Bernice Martial of Cold Lake First Nation said Monday that she is worried about the safety of drinking water, animals and vegetation in her region.

1.5 million litres recovered already

In July, Canadian Natural Resources Ltd. (TSX:CNQ) said a mechanical failure at an old well was behind ongoing bitumen seepage at its oilsands project on the Cold Lake Air Weapons Range.

About 1.5 million litres of bitumen has since been recovered from bush and muskeg in the area.

The band said in a news release that it recently learned of two additional leaks of bitumen, but the Alberta Energy Regulator says they both involved produced water back in May and June.

Spokeswoman Cara Tobin said the waste water from the two sites, about 8,000 litres in total, has since been cleaned up.

Company spokeswoman Zoe Addington confirmed there have been no further bitumen discoveries.

“Each location has been secured and cleanup of bitumen at the four other sites is ongoing,” she said in an email.

Animals dying

The last report posted by the regulator tallies dead wildlife from the leak at two beavers, 46 small mammals, 49 birds and 105 amphibians.

“Our future generations will not be able to enjoy what once was pristine Denesuline territory,” Martial said in a news release.

[quote]Animals such as wolves and bears are now migrating through our community, which is a safety risk and precaution. The environment is changing and definitely not for the positive.[/quote]

CNRL has been ordered to limit the amount of steam it pumps into the reservoir while the regulator investigates.

Financial leakage

Gerry Protti, chairman of the regulator, said that the spill has significantly affected the company’s finances.

“We’re working extremely hard to come up with the cause of the issue and resolution around it. But when you’re taking 40,000-plus barrels of production out of their cash flow, that has a direct impact,” he said Monday in Calgary.

“But that shows the importance that the province is attaching to development occurring with the minimum environmental impact.”

Last month, company president Steve Laut said he didn’t expect the ongoing spill would have a long-term impact on production.

He said he’s confident the company can either repair problematic wellbores or adjust its steaming strategy to work around them.

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No flood insurance without better maps, says industry

No flood insurance without better maps, factoring in climate change

Climate Change, Economics
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No flood insurance without better maps, says industry
Calgary’s flooded Bow River on June 22

OTTAWA – Insurance executives say homeowners will never have access to comprehensive flood insurance in Canada unless there are new maps of flood-prone areas that take climate change into account.

That’s the finding of a study that surveyed senior executives at 13 Canadian insurance firms on extreme flooding, which devastated parts of southern Alberta and Toronto this year and is becoming more frequent across the country.

Affected homeowners are often surprised to learn their policies, while covering sewage backups, do not pay for damage from water entering basement windows from swollen rivers and streams.

Canada is the only G8 country where this so-called overland flood insurance is simply not available in the private sector.

“Most insurers agreed that existing flood maps are inaccurate, outdated and inadequate for insurance purposes,” says the study by two experts at the University of Waterloo, Ont.

[quote]This data gap poses a clear threat to the viability of flood insurance.[/quote]

Biggest insurance payouts come from flooding

The Canadian Press obtained an advance copy of the report by academics Blair Feltmate and Jason Thistlewaite, to be released today. Their research was paid for by the Co-operators Group Ltd., a large insurance firm.

The insurance industry is sharply focused on flooding, which in the last 15 years has become their biggest payout area. That’s because of extreme weather events that the executives agree are linked to climate change.

“The big cost now … is flooding basements, by a country mile,” said Feltmate. “So it’s really high on their radar screen.”

Canada has seen 289 flood disasters since 1900, the largest such category, more than the number of hail, wildfire and winter storm disasters combined in the same period.

Floods are expensive. The southern Alberta floods last summer are estimated to have cost private insurers $2.25 billion, even though damage to residences was generally not covered. In 2011, floods in Manitoba and Quebec also racked up millions in payouts.

The federal and provincial governments are also exposed to huge costs under the Disaster Financial Assistance Arrangements, which pay a disproportionate amount for overland flooding compared with storm, hail and wildfire disasters, which are often already covered under private policies.

Climate change upping flood costs

Existing sewage-backup coverage is also hurting private insurers’ bottom lines because climate change results in more torrential downpours that overwhelm aging municipal infrastructure and can’t be absorbed by an ever-more-paved urban landscape.

Feltmate cites the example of a Toronto neighbourhood, south of the Downsview airport, where a large percentage of basements were flooded three times since May this year.

Executives would consider offering overland-flood insurance, says the survey, but can’t begin to draft policies or set premium levels until proper maps accurately identify the new risks arising from a warming planet. Said Feltmate:

[quote]We need new flood-plain maps that take into account not the historical weather but the weather that can be expected going forward.[/quote]

The study says existing maps are badly out of date, and focus on historical hazards for land-use planning rather than potential risks in the decades to come.

Government orders new flood mapping study

The federal Public Safety Department acknowledged the cartographic gap recently by ordering a new study that will survey flood-mapping in six countries, including the United States.

The report, due next March, will also assess the state of flood mapping in Canada and estimate the costs to meet any new national standard.

The department notes that a previous federal program to generate floodplain maps was killed in the mid-1990s, and little has been done since.

Feltmate says the next phase of his research is a year-long survey of mayors, town councillors, premiers and others who will have to become part of Canada’s flood solutions.

[signoff1]

The study, also supported by Co-operators, will consult as well with bank executives, who Feltmate says are only dimly aware of the threat that increased flooding poses to their mortgage business.

That’s because mortgages are contingent on a homeowner obtaining insurance, and many insurance companies may begin to steer clear of properties prone to frequent basement flooding, such as in the Downsview neighbourhood.

“The banks have a much greater stake in this game than they currently realize,” said Feltmate

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Canada mulls crackdown on pesticide suspected of killing bees

Canada mulls crackdown on pesticide suspected of killing bees

Food, Health and Environment, Organic & Local, Species At Risk
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Canada mulls crackdown on pesticide suspected of killing bees

OTTAWA – The federal Health Department is proposing tighter rules for the use of a pesticide that is suspected of killing honey bees.

It is asking for public comment on the issue over the next 90 days.

The department wants to hear from stakeholders and other interested parties people about its plans for stricter controls on the use of neonicotinoid treated corn and soybean seed.

It wants the new rules in place by the time planting starts next year.

The department is calling for safer planting practices, efforts to reduce dust from seeders, new pesticide label warnings and updated information on the need to treat soy and corn seed with insecticide.

The department say studies in 2012 and 2013 found bee deaths were higher in heavy corn-production areas where neonicotinoids are used.

It suspects the deaths are linked to contaminated dust kicked up during planting. In its consultation document, the department said:

[quote]We have concluded that current agricultural practices related to the use of neonicotinoid treated corn and soybean seed are not sustainable. For the 2014 planting season, we intend to implement additional protective measures for corn and soybean production.[/quote]

Beekeepers have been pushing for a complete ban on these pesticides.

Europe already has ban

Last spring, the Ontario Beekeepers’ Association welcomed a European Union ban on three suspect insecticides.

“The EU vote clearly shows there is scientific and public support around the globe for policies which protect honey bees and other pollinators and recognize their essential role in food production and healthy ecosystems,” association president Dan Davidson said at the time.

The beekeepers say neonicotinoids are systemic pesticides that are absorbed into plant tissues and can leach into ground water.

The association says these chemicals are toxic to bees, as well as earthworms, birds and fish.

It says the health of the food production system is at stake.

“Ontario’s fruit and vegetable farmers depend on adequate pollination by honey bees, bumble bees and wild bees,” Davidson said.

Read David Suzuki’s recent story on the mystery of dying bees.

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Walmart applauded for pulling toxins from shelves

Wal-Mart applauded for pulling toxins from shelves

Health and Environment
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Walmart applauded for pulling toxins from shelves

NEW YORK – Wal-Mart announced Thursday that it will require its suppliers to phase out 10 hazardous chemicals from personal care products, cosmetics and cleaning products sold in its stores.

It will also require the suppliers to disclose chemicals in those products.

The moves follow an announcement made by Procter & Gamble Co.., the world’s largest consumer product maker, earlier this month that it will eliminate phthalates and triclosan from its beauty products by 2014. In 2012, Johnson & Johnson pledged to eliminate phthalates, triclosan, formaldehydes and parabens from all its personal care products globally.

Wal-Mart Stores Inc. says that beginning in January, the company will monitor progress on reducing and eliminating the chemicals and will begin to publicly report on it in January 2016. The Bentonville, Ark.-based discounter did not immediately identify the chemicals, but experts believe that the germ-killing additive triclosan is on the list.

One step ahead of regulators

The Food and Drug Administration is reviewing the safety of triclosan, commonly used in antibacterial soaps and other items. Some studies in animals have suggested that it could increase the risk of infertility early puberty and other hormone-related problems, though results from animal studies don’t always apply to humans.

“The objective of this policy is to help ensure that household cleaning, personal care, beauty and cosmetic products sold by Wal-Mart will minimize hazards to people or the environment,” Wal-Mart said in a statement.

The moves were quickly applauded by some environmentalist groups who said it was the first chemical policy of this scope by a global retailer.

Said Mark Rossi, co-director of Clean Production Action, a non-profit organization that designs tools to help companies make their products chemically greener:

[quote]Wal-Mart’s policy signals a new era of going beyond regulatory compliance to reduce the use of hazardous chemicals. Companies like Wal-Mart are realizing they need to be proactive instead of reactive to the rapidly increasing consumer demand for safer products. [/quote]

The initiative was announced at Wal-Mart’s annual meeting on sustainability.

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Alberta's pipeline safety faces auditor review following series of spills

Alberta’s pipeline safety faces auditor review after series of spills

Energy and Resources, Pipelines and Supertankers
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Alberta's pipeline safety faces auditor review following series of spills
2011 Rainbow Pipeline leak in Alberta (Rogu Collecti/Greenpeace)

EDMONTON – Alberta’s auditor general is going to take a deeper look at the safety of oil and natural gas pipelines in the province.

Merwan Saher said his audit will examine pipeline inspections and will look at how well companies are following government pipeline regulations and how well provincial regulations are being enforced.

“I wish to inform you that we will initiate such an audit as soon as reasonably possible,” Saher wrote in letters to Alberta’s opposition Wildrose and New Democrats, which had requested the review.

50 groups called for investigation

Last month more than 50 public interest groups called for such an investigation after a government-commissioned report said Alberta has favourable pipeline rules. Opposition parties and environmental groups said that review was too narrow because it did not look into the effectiveness of enforcement or at the cause of specific spills.

The province commissioned its report last summer after a string of oil spills, including a 475,000-litre leak from a Plains Midstream Canada pipeline in Central Alberta in June 2012.

A pipeline owned by the same company had spilled 4.5 million litres of oil in northwestern Alberta in April 2011. Earlier this year, the province slapped Plains with environmental charges in relation to that event.

Wildrose energy critic Jason Hale welcomed the auditor general’s decision.

[quote]Given how important pipelines are to Alberta’s long-term economic prosperity, it is critical we prove we are leading the way in enforcing pipeline regulations and transporting our energy products in the safest and most secure way possible.[/quote]

New Democrat Rachel Notley called Saher’s decision to audit pipeline safety a big victory for Albertans.

“This independent review will help ensure we move to better protect the environment and signal to the world that Alberta is serious about developing our abundant natural resources in a sustainable and responsible manner,” she said.

Pipelines keep spilling

Pipeline spills continued in the spring of this year. An estimated 9.5 million litres of waste water leaked in northwestern Alberta from a pipeline owned by U.S. company Apache Corp. As well, a Penn West pipeline spilled 5,000 litres of crude and up to 600,000 litres of waste water. And an Enbridge Inc. pipeline near Fort McMurray, Alta., leaked about 200,000 litres.

Jennifer Grant of the Pembina Institute, an environmental think-tank, said the audit could restore people’s confidence in Alberta’s ability to regulate pipelines and their associated risks.

[quote]With 400,000 kilometres of pipelines criss-crossing the province, and an average of two crude spills a day for the past 37 years, ensuring the integrity and safety of Alberta’s pipeline network is absolutely critical.[/quote]

A coalition of environmental groups, landowners and First Nations that have been pushing for a more comprehensive review of Alberta’s pipelines were also celebrating.

Don Bester of the Alberta Surface Rights Group said Saher’s announcement shows what can happen when people work together.

“Today is a great day,” he said. “We have always said that Albertans deserve a real pipeline safety review.”

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Métis fight Manitoba hydro line

Hydropower, WATER
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Métis fight Manitoba hydropower line

WINNIPEG – Manitoba’s Métis federation is appealing an environmental licence granted for the construction of a controversial $3-billion hydro line.

President David Chartrand said the federation has formally registered an appeal with Conservation Minister Gord Mackintosh. A plan to build a 1,300-kilometre transmission line up the west side of Lake Manitoba would have a significant impact on the Métis, he said.

The hydro line is to run through the heart of Métis territory and would affect traditional cultural activities such as hunting, gathering and trapping. The area is already under “significant environmental stress,” Chartrand added.

“The Manitoba government cannot continue to cavalierly ignore its constitutional obligations owing to the Manitoba Métis community in relation to new development in this province,” Chartrand said in a statement Wednesday.

Consultation lacking

The province’s Clean Environment Commission recommended in July that the government grant an environmental licence to the project, known as Bipole III. But the commission attached a number of conditions and criticized the province for not heeding previous recommendations to improve environmental assessments in Manitoba.

The commission also chided Manitoba Hydro for not consulting enough with aboriginal and Métis communities, Chartrand said.

“This licence now gives Manitoba Hydro ‘carte blanche’ to continue with the status quo,” Chartrand said.

[quote]This is unacceptable to the Manitoba Métis community. The days when the Manitoba government and its agent — Manitoba Hydro — can simply do as they please in relation to lands the Métis rely on for their identity, culture and way of life are over. Our people have been ‘collateral damage’ to Manitoba Hydro’s plans too many times in the past. We will not allow this to happen again.[/quote]

Chartrand said the federation is first appealing to the minister but is prepared to take the matter to provincial court if necessary.

“It is unfortunate that we may be forced into the courts again, but we will not accept Manitoba’s complete disregard of our rights and interests as it pushes forward on its agenda for Manitoba Hydro.”

$3.28 billion project for power exports

Manitoba Hydro has said the project — which is expected to cost $3.28 billion — is needed to make transmissions more reliable and to export more surplus power to the United States.

The Clean Environment Commission held hearings on the project for 10 weeks last fall and this spring before recommending an environmental licence. The NDP government granted the licence last month.

At the time, Mackintosh said the licence includes numerous conditions such as extensive wildlife monitoring and preservation of as much wetland, forest and farm land as possible. He also promised that the province will continue to listen to the concerns of aboriginal communities and will take those into account when considering other project permits.

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