Category Archives: Oil&Gas

Colorado-fracking-flood-raises-deeper-issues-like-extreme-energy-endless-growth

Colorado fracking flood raises deeper issues – like extreme energy, endless growth

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Colorado fracking flood raises deeper issues like extreme energy endless growth
The aftermath of Colorado’s recent flood in heavily fracked Weld County (David Lavallee)

by David Lavallee

I first heard about the flood that left the Colorado fracking industry underwater by way of a story on The Common Sense Canadian. I happened to be in neighboring Utah on a shoot for my new documentary, entitled To the Ends of the Earth.  This documentary focuses on the economic consequences of our “ends of the earth” exploration for oil.

News of the flood did not draw my attention initially – after all, epic floods are commonplace nowadays. In the past year we have witnessed a series of events which, in isolation, don’t seem to add up to much – but taken together tell a powerful story of the shifting carbon balance of our planet, our home.

[quote]Not since the wholesale slaughter of cetaceans 150 years ago has energy been this violent. [/quote]

Cyclone Phailin, a storm the size of France, recently pounded the eastern coast of India. The storm surge for Hurricane Sandy (widest storm in US history)  left the global financial capital, Manhattan, underwater.  Floodwaters left the town of Canmore and the city of Calgary, Canada’s energy capital , underwater.  Meanwhile, an observatory in Mauna Loa Hawaii measured a long-feared milestone – 400 PPM carbon dioxide in the atmosphere – a record last beaten 5 million years ago.

So the simple fact of a flood in Colorado didn’t immediately grab my attention (despite being a “one in 10, 000 year event”). What grabbed my attention was the richness of the metaphor – one of the industries (among many) causing this calamity was actually underwater. Add to that Manhattan and Calgary – where myriad decisions are made, decisions changing the carbon balance of our planet – underwater!

Weld County, Colorado fracking capital

Weld County, Colorado is the site of some of the most intense fracking in the world (a powerful short film on Colorado fracking can be found here.

There are 50, 000  wells in Weld County alone.  During the flood, emergency procedures were enacted and the wells were shut in, averting a catastrophic spill of the many hundreds of proprietary toxic waste chemicals that typically get injected a mile below the ground into ancient coral reefs that have lain dormant for many millennia – until violent underground explosions crack open these formations releasing  the shale gas.

Concerns over frack fluid leaks overblown

Not since the wholesale slaughter of cetaceans 150 years ago (back then oil came from Spermaceti, not BP) has energy been this violent.  Only 75,000 gallons of crude oil/condensate were reported spilled in the flood, an amount that paled in comparaison with toxic waste from the flood that washed over feedlots – agricultural waste, because of it’s volume, is arguably a far greater contaminant than a small amount of condensate.

Yet the social media circles were abuzz with outrage over the spills, and rumours of the coming human health crisis from leaked frack fluid – tempest in a teacup.

I watched this debate unfold and wondered what parallels there were with my own province’s current  battle against Enbridge (with its focus on spills) and the fracking of northern B.C. Could it be that the environmental movement is missing the point?

Fracking your front yard

Allow me an alternate view of what the point could be.  Consider the daily operations of a frack well. In Weld County, drilling operations are occurring  in the one place that big oil has been forced to go now that there is no place else left to drill: your front yard. The proximity of wells to people’s homes, playgrounds, schools in this area is quite simply shocking.

Nosebleeds and ethyl benzenes

Near Longmont, CO. I met and interviewed Rod Brueski, a local organic farmer. He showed me his family’s “blood panel” document, a medical procedure that they underwent as part of a study to determine the effects of living near a frack well (100 metres from his house). “My son has uncontrolled nosebleeds that last three hours,” he told me as he pointed out the variety of hexanes, ethyl benzenes and xylenes that are now in their blood.

Forget the 75,000 gallons that leaked, this industry was a disaster even before the flood hit.

A flood certainly provides an opportunity for environmentalists to point out to an industry its antisocial shortcomings, but let’s not lose sight of the bigger picture.

Governor Hincklehooper sues constituents over fracking ban

Brueski took advantage of an opportunity to point out to the governor of the state his antisocial tendencies.  Governor Hincklehooper is thought of in the activist/environmental circles as being a Halliburton puppet, who advocates vociferously for the oil and gas industry at the expense of the general public. As evidence to that effect, Brueski told me he is actually using state taxpayer’s money to sue the community of Longmont for wanting to pass a municipal bill that bans fracking within city limits (a reasonable bill, one would think).

Our cameras rolled as Brueski gave the governor, who was on a flood impacts tour, a piece of his mind.  It is destined to be a powerful scene in my upcoming film, one that won’t likely end up on the cutting room floor.

The root of the problem

As easy as it is to vilify the governor though, that also isn’t the point. It’s not the man in power, it’s the culture of people that placed him there.  It’s the anachronistic, so-called democratic institutions that allow a person like Canadian Prime Minister Stephen Harper, with so little of the popular vote, to gain and hold power for so long.

It’s a culture of instant gratification, which has turned 40% of our economy into a casino (aka the financial services sector). It’s what turned our economy into a Ponzi scheme – a house of smoke and mirrors that almost collapsed completely in 2008, and will certainly collapse globally someday soon (Communism, which once held sway over half the globe, collapsed – is it that big a stretch to believe that capitalism could too?).

The bigger picture, bigger than oil spills from Enbridge into the Skeena river, bigger than poor leaders who lack a true democratic mandate, bigger than the volume of frack fluids spilled into the South Platte river of Weld County is the culture that perpetuates these things.

The Growth Imperative

If I had to boil it down into a few words, they would be these: the growth imperative.  We have created a society in which the fortunes of politicians rise and fall based on the growth numbers they post. A society and culture so out of step with the biosphere that sustains us that we have come to view infinite growth as normal , like it’s always been this way (only since the 1950’s has it been around, really).

Infinite growth is impossible in nature, and that’s a really good thing. To paraphrase Richard Heinberg, author of The End of Growth (whom I interviewed for my film), imagine a 2 pound hummingbird – there’s a reason nature didn’t create such a creature.

The easy stuff is gone

Globalization and our economy today is a ten pound hummingbird, struggling to fly after it has gorged on free-flowing nectar.  We are now fat, and the nectar of our civilization, oil and gas, doesn’t flow so freely anymore. It is fracked a mile down and a mile horizontally in Colorado, mined or steamed at enormous cost in the Tarsands – the only free-flowing stuff left is in the Arctic, and we need to dodge icebergs to get it.  Just ask Shell how easy it is to access after their prize drill ship, the Kulluk, ended up on the rocks of Kodiak Island last New Year’s eve.

The rise of Extreme Energy

Quick – look around the room you are in and name one object in it that doesn’t have oil’s footprint in it, either in its manufacture or in the transportation of it to your door. This era is all about the rise of extreme energy – can we have avocados from Argentina or apples from New Zealand, brought to us on ships using oil shale (energy return = neutral – it takes a barrel of oil to make a barrel of  oil shale!) or  fuel our vehicles ten years from when the energy surplus from the tarsands has diminished to a 1:1 ratio because they moved into the final marginal deposits, nothing else being left.

“Economies don’t run on money, they run on energy,” Andrew Nikiforuk told me in a recent interview.

[quote]Money is just a metaphor for energy surplus.

[/quote]

Real solutions

Do I want the fracking industry to clean up their mess in Colorado, and do I want Enbridge to use state-of-the-art spill response systems if they manage to get their stinking bitumen pipe through my province? Absolutely. But I am asking far more than that – of myself and my society.  I’m asking that we shift our culture of consumption that is the root cause of all these issues.

I’m asking that we recognize and rebuild a society in which the growth imperative is an anachronism, a barbaric incarnation of yesteryear, not the going concern it is today. I’m asking politicians to help create a structure that helps us plan for a non-growing economy, that helps us localize our food sources and transition off of fossil fuels that are becoming too expensive for our economy to afford anyways.  I’m asking those same politicians to restructure political institutions in such a way as to be adaptive of current realities (such as climate change) and to help build a resilient society.

I suspect when we go to a protest against an Enbridge pipeline, it’s more than just the pipe we are protesting. It’s what’s in it, and what that means for us all, either economically or environmentally.

Let’s not lose sight of that, because if we do, we fall into the failed paradigm of economy vs. environment – a paradigm that puts us in a position of winning a few battles here and there but losing the war. Let’s create a new paradigm – a life-after-growth paradigm that focuses on human wellbeing.

If this is too much to ask, then let’s start with this – Halliburton  and Hincklehooper: clean up your mess!  We’re gonna think real hard on how you can make it up to us.

David Lavallee is the Director and Producer of the award-winning film, White Water, Black Gold. He hopes to complete his new film,  To the Ends of the Earth, within a year. 

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Explosion,-flames-as-oil-train-derails-in-Alberta

Residents remain out of homes after CN oil train derailment

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Explosion,-flames-as-oil-train-derails-in-Alberta
Alberta firefighters on the scene of a burning oil train wreck (Dan Reidlhuber/Reuters)

STONY PLAIN, Alta. – Residents of a tiny Alberta community near the site of a train derailment remained out of their homes for third day as CN Rail struggled to get the upper hand on a fire that was threatening the area.

Staff monitoring the derailment near Gainford carried out another controlled burn Monday evening to get rid of any remaining propane in pressurized tank cars that left the track over the weekend.

[quote]We’re not going to let people back until we get the notice that all the crews on the ground are satisfied that it is safe to be back. – Mayor Rod Shaigec[/quote]

It’s the second time in as many days that CN (TSX:CNR) had attempted to vent and then ignite the gas that remains on the train. CN had hoped to have people home after a first controlled burn on Sunday night.

Said Warren Chandler, a spokesman for the railway:

[quote]Unfortunately when we went to inspect the cars … we found that not all the cars had vented their propane. We hoped for an early return, but in the interests of safety, we can’t do that yet.[/quote]

‘Controlled burn’

The controlled burn procedure involves placing small explosives on the hulls of the derailed propane tank cars, then detonating them to punch small holes in the pressurized car shells.

The gas vapour ignites as it escapes and is supposed to burn off in a controlled manner.

Gainford residents have been out of their homes since early Saturday morning when 13 cars on a freight train went off the rails about 80 kilometres west of Edmonton.

Two explosions were reported, so people were ordered from their homes as a precaution. No one was injured.

Over 100 people evacuated

As of Sunday, 126 people had registered with the evacuation centre.

Three of the rail cars were carrying liquefied petroleum gas, commonly known as propane, and caught fire. Four of the derailed freight cars were carrying crude and didn’t break open. CN said those units have been removed from the scene.

Parkland County spokeswoman Jackie Ostashek said some impatient residents have begun taking matters into their own hands.

“There have been some concerns about people trying to breach the roadblocks. We’re trying to ensure that people understand what we’re doing and why we’re doing it,” she said.

Emergency crews have escorted a few people back to their property, she said.

[quote]Where it was safe to do so, we did have fire crews assist people to go back. They took them there only after the determination that they were outside the immediate threat area. It is not something we are encouraging doing and only in exceptional circumstances.[/quote]

Mayor: community frustrated

Mayor Rod Shaigec acknowledged there’s frustration among those affected.

“All the reports that I have is that they are satisfied with the information they’re receiving,” he said.

“Certainly there’s people that are frustrated. (But) every measure is taken to ensure this is going to be addressed as quickly as possible with the focus on safety.

“We’re not going to let people back until we get the notice that all the crews on the ground are satisfied that it is safe to be back.”

Evacuees to be reimbursed

Evacuees are being asked to document their expenses while they are out of their homes so that CN can reimburse them.

“We will ensure that verified claims for damages are promptly honoured,” Chandler said.

On the weekend, officials said there had been no damage to private property in the vicinity of the blast. On Monday, Chandler would not confirm that.

“At a later date, once those priorities are accomplished, we can begin looking at those options,” he said.

CN not ready to pronounce cause of derailment

CN said it is not ready to say what may have caused the derailment or what damage may have occurred, either to the rail company’s infrastructure or the Yellowhead Highway, northern Alberta’s main east-west artery.

The highway remained closed Monday.

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Explosion, flames as CN oil train derails in Alberta

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Explosion, flames as CN oil train derails in Alberta
RCMP photo

GAINFORD, Alta. – Firefighters who were battling a major blaze Saturday after a CN tanker train derailed west of Edmonton have decided to withdraw and wait for the flames to burn themselves out.

Jackie Ostashek, a spokeswoman for Parkland County, says fire crews were waiting outside a perimeter about a kilometre-and-a-half away from the derailment scene near the hamlet of Gainford.

Ostashek said one of the tankers carrying liquefied petroleum gas was flaring as pressure inside the container built up and vented from a valve, but flames were dying down again after the pressure was released. Officials said that’s the way the safety mechanisms in the tankers are supposed to work.

Thirteen cars — four laden with petroleum crude oil and nine carrying liquefied petroleum gas — came off the tracks around 1 a.m. local time and about 100 people in Gainford were evacuated.

Witnesses said they heard an explosion and saw a fireball when the train derailed and another official with Parkland County said there was a second smaller explosion later in the morning.

No injuries were reported.

Huge, Huge Fireball

One resident told CHED radio he heard a series of crashes moments before seeing a “huge, huge fireball” shoot into the sky.

“The fireball was so big, it shot across both lanes of the Yellowhead (Highway) and now both lanes of the Yellowhead are closed and there’s fire on both sides,” said the witness, identified only as Duane.

CN spokesman Louis-Antoine Paquin said three cars containing gas were leaking and on fire.

Paquin said the train was travelling to Vancouver from Edmonton.

The area, which is about 80 kilometres from Edmonton, remained under a state of emergency. Travel was restricted and news media were being kept far back.

“We’re going to let it burn itself out”

Parkland County’s fire chief, Jim Phelan, said the tanker that was flaring was venting gas through valves, which it and the other cars were designed to do. He said it was unlikely there would be any further explosions.

“We’re going to let it burn itself out,” Phelan said. “The best thing to do now is allow the product to be consumed.”

He expected that could take about 24 hours.

Devon Cadwell, who lives on a ranch just outside Gainford, said he was sleeping when he heard the first explosion. He gathered his animals into a corral and got ready to leave. Said Caldwell:

[quote]It was a huge boom and the house started shaking.

[/quote]

Residents evacuated

Gainford resident Glenda Madge said she and her husband were jolted awake at 3 a.m. by pounding on their door. It was the fire department telling them they had to get out immediately.

“They were waiting outside for us, so we had to hurry up and get dressed and grab whatever we could — medication that my husband is on,” Madge said, speaking by phone from a hotel in Entwistle about 20 minutes’ drive from Gainford.

Madge said that when she reached an evacuation centre in Entwistle, she and her neighbours were talking about events earlier this year in Lac-Megantic, Que., where a train derailment and explosion killed 47 people.

“It was a little scary,” Madge said, noting she felt lucky that no one appeared to have been hurt in this derailment.

At one point, Madge said officials were going to allow residents to be escorted back to their homes to pick up additional medication and pets. But she said after the second explosion they were told to turn around and go back to Entwistle.

Sara Jensen, the community development co-ordinator with Parkland County, said about half a dozen Gainford residents were being taken back to the community and were in a safe zone when the second blast was heard.

Phelan said that explosion was smaller and was actually the result of pressure venting from one of the burning cars.

“There was a little pop,” Phelan said.

Jensen said people in Entwistle got up early to open restaurants for the evacuees. A gas station was also opened early so Mounties and other emergency officials could get fuel.

“It’s a good rural environment where people support each other,” Jensen said.

“Everyone’s either in bed or being fed.”

The Transportation Safety Board was sending investigators to the scene.

Parkland County’s second oil train derailment

Carson Mills, a spokesman for Parkland County, noted that it was in Parkland County that more than 40 cars of a CN Rail train derailed in 2005, spilling 800,000 litres of bunker oil and wood preservative into Wabamun Lake.

— With files from CHED Radio

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Clark & Redford: What their cozy relationship means for BC pipelines

Rafe: Fix is in on Enbridge as Clark and Redford put on show

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Clark & Redford: What their cozy relationship means for BC pipelines
BC and Alberta Premiers Christy Clark and Alison Redford (CP photo)

I assure you that this will not take long.

We’ve been screwed, blued and tattooed folks.

You may have read the story last week that First Nations have charged that the Enbridge pipeline has already started.

At the same time, the BC/Alberta Deputy Ministers Working Group is announced and the fix is in. No doubt about it.

There are two shared goals in the document touting this partnership:

  1. Opening new markets and expanding export opportunities for oil, gas and other resources
  2. Creating jobs and strengthening the economy of each province and Canada through the development of the oil and gas sector.

The document talks about oil spillage on land and sea, but never does it say that a project might not be allowed because of the “risk” of pipelines and tankers. It’s a given that there will be pipelines and tankers, PERIOD.

It mumbles platitudes like a “world class prevention and preparedness” regime.

First Nations’ Enbridge spill concerns being ignored

I’m sure First Nations will be delighted to know Clark and Redford will supply them with “accommodation”, which “can include mitigation measures or even economic compensation”. (emphasis added)

Mitigation is a weasel word for saying that although damage is coming, we will do our very best to minimize it – honest to goodness, cross our hearts and hope to die – we will give you prosthetic devices for the arms and legs we’re going to cut off.

[quote]Health permitting (I’m a little long in the tooth) I’ll place myself in front of the first dirt remover.[/quote]

And, dear friends, there may be wampum for you if you’re good little Indians and place your “Xs”on the dotted line. Somehow I don’t see First Nations being convinced by this document that they will be treated any better than the Carrier-Sekani or Haisla were at the time of Alcan’s Kemano hydroelectric project in the 50s. This government, like the Bourbons, “has learned nothing and forgotten nothing”.

Carving up the booty

The rest of this 10-page document deals with carving up the booty – partly in bribes for First Nations, but mostly between themselves.

One of the major players – are you ready for this? – is Fazil Mihlar, a former fellow of the Fraser Institute and editor of The Vancouver Sun. Mihlar recently left the paper to become the BC Liberal Government’s Assistant Deputy Minister of the new Oil and Strategic Initiatives Division.

Act as if pipelines are a done deal

There is little to say except we must now choose our weapons and we should stop beating about the bush. There is no point in pleading with these bastards for their mind is made up. We must treat the situation as if the pipelines were a done deal – because they are.

We’ve reported on the false facade of Clark’s supposed reservations about Enbridge over the past year, juxtaposed with the realties of trade deals and the province’s legal abdication of responsibility on the pipeline decision – this new information simply reinforces our concerns all along.

Peaceful civil disobedience is the only weapon left and we must prepare for that. As I have said for sometime, health permitting (I’m a little long in the tooth) I’ll place myself in front of the first dirt remover.

Writing letters is always a good idea but it does nothing. Your MLA and MP have no power to do anything.

The opposition to these pipelines and tankers must contain the solemn undertaking to physically stop them. Anything else will be taken by your government as bluff and bluster.

Rafe to Christy: Hold a referendum

For the first time in nearly 82 years on this planet I find myself ashamed – not just pissed off – but ashamed of my government. The people, indigenous or otherwise, have not been consulted and won’t be.

I leave with this challenge to Premier Clark: hold a referendum.

Or are you afraid that, as with the Charlottetown Accord in 1992, the public will be informed and let you know they want nothing to do with your disgraceful deals?

Yes, hold a referendum and let us decide the fate of our beautiful province with one of the last real wilderness areas in the world.

[signoff1]

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Greenpeace activists block oil pump at Kinder Morgan terminal

Greenpeace activists block oil pump at Kinder Morgan terminal

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Greenpeace activists block oil pump at Kinder Morgan terminal

BURNABY, B.C. – Greenpeace protesters have set up a blockade at the Kinder Morgan oil pumping facility in Burnaby, B.C.

Spokesman Peter Louwe says two protesters have climbed onto the oil pumping mechanism and 14 other demonstrators are also on the scene and have unfurled a banner.

Louwe says the action began at around 7 a.m. and the protesters intend to stay until they have sent a message to Prime Minister Stephen Harper that expansion of oil pipelines is not acceptable.

The Kinder Morgan facility is the west coast terminus of the Trans Mountain pipeline that carries Alberta bitumen from the Edmonton area, across southern British Columbia to port just east of Vancouver in Burrard Inlet, for shipment overseas.

Kinder Morgan has applied to expand the pipeline to nearly triple its capacity from 300,000 barrels a day to 890,000.

See Vancouver debate on Kinder Morgan’s expansion proposal.

 

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Clark, Redford getting closer on Enbridge, energy export plans?

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Clark, Redford getting closer on Enbridge, energy export plans?
B.C. Premier Christy Clark and Alberta’s Alison Redford (photo: Dan Riedhuber/Reuters)

VICTORIA – British Columbia Premier Christy Clark and Alberta’s Alison Redford have appointed a team of senior bureaucrats to develop an energy export plan, barely a year after a high-profile disagreement over the proposed Northern Gateway pipeline strained the two leaders’ relationship.

Clark and Redford are scheduled to publicly discuss the progress of the joint energy plan on Nov. 5 in Vancouver following the Alberta premier’s address to the city’s Board of Trade. A final report is due on Dec. 31.

Enbridge clash

The premiers are attempting to move past their very public clash over the Northern Gateway pipeline, which was the subject of a meeting in Calgary last October that Clark later described as “frosty.”

Clark had insisted the project must meet a series of conditions, including strict environmental standards and assurances that B.C. would receive a “fair share” the economic benefits, to win her approval, which prompted Redford to suggest Clark was attempting to pick Alberta’s pockets with demands for extra royalties.

“Frosty” relationship warming?

But a joint statement issued Tuesday was the latest sign that relations between the two premiers are warming. This past June, Clark and Redford met in Kelowna, B.C., and while they didn’t mention the Northern Gateway project, they announced the creation of a working group to focus on skills training, immigration and economic growth.

“In creating the working group, B.C. and Alberta identified the shared goals: opening new markets and expanding export opportunities for oil, gas and other resources,” and, “creating jobs and strengthening the economy of each province and Canada through the development of the oil and gas sector,” said Tuesday’s joint statement.

Clark and Redford both declined interview requests on Tuesday.

Alberta-B.C. working group

The Alberta-B.C. working group, jointly chaired by deputy ministers from both provinces, has been given a mandate to share information, collaborate on policy and address federal gaps on energy issues.

The terms of reference include five policy areas that mirror Clark’s five conditions.

The group has been directed to consult with First Nations; explore other resource transportation options, including rail; look at how to promote resources; and study ways to reduce the potential impact of oil spills. It is also to examine how to make sure both provinces receive a fair share of resource revenues.

“It is not about royalty sharing, but rather about receiving a fair share of the economic and fiscal benefits of a proposed heavy oil project that reflects the levels, degree and nature of the risk borne by B.C., the environment and taxpayers,” said the premiers’ statement.

[quote]Given the risk to B.C. from land-based and coastal bitumen spills, B.C. does not believe an equitable distribution exists for fiscal benefits. This imbalance must be addressed.[/quote]

First Nations remain opposed to Enbridge

Coastal First Nations spokesman Art Sterritt said northern B.C.’s aboriginals are opposed to seeing a pipeline built along their traditional territories and believe the risk of an oil tanker spill is too great to even contemplate. The Coastal First Nations group, which represents most coastal aboriginal nations from Rivers Inlet in southern B.C. to the Alaska border in the northwest, has been a staunch opponent of the pipeline.

Sterritt said his group intends to hold Clark’s Liberals to the government’s previous statements that the Northern Gateway pipeline, as it is currently proposed, fails to adequately address the potential environmental risks.

“They don’t have the technology,” Sterritt said from Terrace, B.C.

“The geography is not very friendly and there isn’t anybody in the north that wants the project. I don’t know how they are going to make it work.”

Sterritt said the possibility of transporting Alberta oil to the B.C. coast by rail, an option that will be considered by the working group, “boggles the mind.”

He warned that much of B.C.’s rain infrastructure runs over mountains and along rivers, meaning it wouldn’t change the potential risk of a spill.

Dix: Clark watering down “5 conditions”

The leader of B.C.’s Opposition New Democrats, Adrian Dix, said it appears the joint working group’s terms of reference are a watering down of Clark’s original five conditions.

Dix said the working group’s mandate appears more focused on ensuring energy projects like pipelines proceed as opposed to ensuring environmental safety and meaningful consultations with First Nations.

“It’s apparent on the B.C. side where their priorities are,” he said.

[signoff1]

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First Nations energy company floats oil refinery near Prince Rupert

First Nations energy company floats oil refinery near Prince Rupert

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First Nations energy company floats oil refinery near Prince Rupert
Eagle Spirit Energy’s Calvin Helin speaking the Vancouver Board of Trade

A new energy company with partial aboriginal ownership is floating the idea of an oil refinery at Grassy Point, near Prince Rupert on BC’s north coast, according to a letter sent to members of a local First Nations band.

The letter, obtained through a facebook posting, was signed by chief/mayor of the Lax Kw’alaams Band, Garry Reece. It invites band members to two separate meetings about proposed energy projects. The first is an oil refinery put forth by Eagle Spirit Energy Holdings, Ltd., a company that was founded last year by Calvin Helin, an author and entrepreneur who identifies himself as member of Lax Kw’alaams First Nation and son of a hereditary chief.

The meeting is being held today “to provide Eagle Spirit Energy an opportunity to present their idea on the construction of an oil refinery and the shipment of oil from Grassy Point,” the letter indicates.

Grassy Point is also the site of a liquefied natural gas (LNG) terminal proposed by an international consortium of companies.

A second meeting tomorrow is being convened “to provide a report on the activities associated with LNG on our traditional territory.” The band’s lead LNG negotiator will “discuss negotiations for a benefit package for Lax Kw’alaams.”

Eagle Spirit was launched in September of 2012, touted in a press release as “a new ground breaking Aboriginal-owned and controlled company…to assist aboriginal communities and individuals to become successful with managing economic opportunities in their traditional territories.” In the release, Chairman and President Helin stated:

[quote]We want to work with communities to establish a First Nations Energy Corridor across northern British Columbia.[/quote]

Helin, who has written and spoken extensively on indigenous self-reliance, has picked up some heavy-duty backing from investors like Vancouver’s Aquilini family, which owns the Vancouver Canucks and significant real estate holdings.

A Globe and Mail story on Eagle Spirit earlier this year suggested:

[quote]At a time when Canada faces seemingly intractable conflict between first nations and a resurgent resource sector, Eagle Spirit also presents a shimmer of hope that a third way may be possible.[/quote]

It also acknowledged “Eagle Spirit’s path, however, is unlikely to be easy, given the tremendous complexity of negotiating with dozens of first nations, and the huge cost and expertise required to build pipelines and power lines.”

It remains to be seen the level of planning Eagle Spirit has done for its proposed oil refinery, among a long list of other concerns – such as how the oil will be delivered to Grassy Point and how Helin will deal with the tremendous First Nations-led opposition to pipelines crossing their territories.

Helin’s proposal is sure to raise eyebrows in the energy sector, across BC and throughout First Nations communities.

[signoff1]

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

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

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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

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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.

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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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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

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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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