Category Archives: Energy and Resources

Water Contamination from Fracking- Jessica Ernst Releases Groundbreaking Report

Alberta scientist Jessica Ernst warns Newfoundland of fracking risk

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Water Contamination from Fracking- Jessica Ernst Releases Groundbreaking Report
Environmental consultant Jessica Ernst on her land in Alberta (Colin Smith photo)

ST. JOHN’S, N.L. – Alberta resident Jessica Ernst is warning Newfoundland about the risks of hydraulic fracturing, saying she blames the contentious fracking process for making her well water flammable.

“It does ignite like a blow torch,” she said from her rural home near Rosebud, Alta.

[quote]It’s too dangerous to even use to flush toilets. One spark could cause the gas to ignite and cause a serious explosion.[/quote]

Ernst visited Stephenville, N.L., on Sunday to convey what she says is a cautionary tale about an oil and gas extraction method that industry proponents defend as safe. Debate about fracking is escalating on Newfoundland’s scenic west coast where there are plans to drill exploration wells near Gros Morne National Park pending government approvals.

Newfoundland on the edge of fracking

Ernst was invited by a concerned citizens group to speak to local residents.

“For areas that do not have fracking yet, once you let it in, you’ll never get it out,” she said.

Hydraulic fracturing involves pumping water, nitrogen, sand and chemical additives at high pressure to fracture shale rock formations and allow gas or oil to flow through well bores to the surface. It’s increasingly used across Canada and the U.S. as energy demands grow while conventional sources wane.

Ernst, a 56-year-old environmental consultant with a Master of Science degree and 30 years of experience in the oil and gas industry, is hardly a lone voice raising alarms. The award-winning documentary Gasland tracks complaints of water contamination in rural areas across the U.S. where gas wells were fracked.

Industry’s claims of no water contamination challenged

Emma Lui, national water campaigner for the citizens’ interest group Council of Canadians, said a lack of independent research before and after fracking means safety assurances ring hollow.

[quote]It’s common for industry and some governments to say there are no known cases of water contamination, but that’s because they don’t have that baseline information. They don’t actually have the adequate research to back those claims up.[/quote]

Tom Marshall, Newfoundland and Labrador’s natural resources minister, said he has heard those concerns and is gathering input across Canada to ensure provincial regulations reflect best practices.

Newfoundland grants exploration licences, consulting with geologists

The province has not yet received formal applications to frack wells in western Newfoundland although exploration licences have been granted in what’s known as the Green Point shale, he said in an interview.

The Progressive Conservative government will consult geologists and geophysicists now studying Newfoundland’s west coast where, unlike Alberta’s more shallow coalbed gas deposits, it’s believed deep shale formations hold oil, he added.

Any drilling proposal would get full environmental scrutiny, Marshall said.

[quote]Our government has always been one that supports economic development. But only within a framework that ensures protection of the environment and protection of public health and safety.[/quote]

Ernst said Newfoundlanders should be wary.

“We got the same promises here.”

Ernst’s $33 million fracking lawsuit

She has filed a $33-million lawsuit with the Court of Queen’s Bench in Alberta against North American energy producer Encana, the provincial energy regulator and the provincial government. Her unproven statement of claim alleges gas wells fracked around her property between 2001 and 2006 unleashed hazardous amounts of methane and ethane gas and other chemicals into her private water well.

Ernst claims that Encana fracked “without taking necessary precautions to protect in-use aquifers or water wells” from such contamination. She also claims that regulators at the Energy Resources Conservation Board, now the Alberta Energy Regulator, failed to reasonably act on her reports of contamination or her concerns that Encana breached laws and regulations meant to protect water supplies.

Finally, Ernst claims the Alberta government failed to reasonably protect her well water, investigate contamination or correct reported damage.

Bob Curran, a spokesman for the Alberta Energy Regulator, declined in an email to comment on the lawsuit as it’s before the courts.

Alberta defends fracking safety

Bart Johnson, a spokesman for the Alberta government, also declined to comment on the case but said fracking has been done safely for decades.

“In regard to hydraulic fracturing generally, the technology has been used safely in Alberta for over 60 years and its use is tightly regulated and monitored by the Alberta Energy Regulator,” he said in an email. “Approximately 174,000 wells have been fractured in the province since the technology was introduced in the 1950s.”

The province and energy regulator have not filed statements of defence.

Encana blames Ernst

In its statement of defence, Encana denies all of Ernst’s allegations and blames her for any pollution.

It says Encana complied with or exceeded all laws and regulations “in respect of its coal bed methane exploration, drilling, stimulation and production operations” and took all necessary precautions to safeguard the Ernst water well.

“To the extent that natural gas or related substances have been detected on the Ernst property or in the Ernst well, which is denied, such substances occurred naturally or by other causes.”

Encana suggests Ernst failed to maintain her water well and is at fault for any contamination. It also says two gas wells at the heart of her allegations were not fracked but “stimulated” — a process that pumps inert nitrogen gas at high pressure into coal seams to release natural gas.

Skin burns

Ernst says in a rebuttal filed in court that she sought professional advice to look after her well since she bought the 20-hectare property in 1998. She first noticed problems eight years ago when she developed strange burns on her skin and her two dogs recoiled from a fresh bowl of water, she said.

She now trucks fresh water in from another community.

“If they can frack all around Gros Morne, they’ll be able to frack all of Newfoundland,” Ernst said. “They did that here.”

[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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Rafe: Harper won't succeed in bribing First Nations over pipelines

Harper won’t sell First Nations on Enbridge, Kinder Morgan pipelines

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Rafe: Harper won't succeed in bribing First Nations over pipelines
Stephen Harper meets with National AFN Chief Shawn Atleo in 2011 (Reuters)

So Prime Minister Stephen Harper and members of his cabinet have been meeting with BC’s First Nations chiefs in order to get them onside with the Enbridge and Kinder Morgan pipelines. This is a gross insult and I believe will be seen as such.

Bribing First Nations

What Harper must do is get First Nations onside and this is impossible unless it takes the form of an acceptable bribe. For that is what Mr. Harper and the pipeline companies are doing. And they may be able to do it as companies have been able to in isolated circumstances with private power projects. But before we conjure a sneer at any First Nations’ possible breaking of ranks, let’s remember Robbie Burns saying, “O wad some power the giftie gie us, to see oursels as others see us”.

We Europeans accept bribes all the time. That’s what political promises are and we swallow some pretty unpalatable gunk, wrapped in a party package every time we go to the polls. We also, in making judgments, must  “walk a mile in the other man’s moccasins”

Many nations live in poverty consistent with 75% unemployment and a “political promise” from the Prime Minister will be listened to. Moreover, the bands that have hitherto rejected pipelines and tanker traffic have dissension within their ranks and that’s to be expected. For example, any political offer to all municipalities would receive different response from different places.

Mr. Harper starts off wrong-footed, as he and his arrogant Natural Resources Minister Joe Oliver have made it clear that the Enbridge line will go through, irrespective of findings by the Joint Review Panel looking into the environmental challenges of the Enbridge line.

This is the kind of government move that takes the breath away, but Harper & Co hope that they can still make a deal. As this process takes place, most non-natives are on the sidelines cheering First Nations along.

In my travels around the province I have met many aboriginal leaders and my sense of it is that they will remain steadfast no matter which “vigorish” is presented in a brown envelope.

Grand Chief Phillip: Ministers had nothing to offer First Nations

Curiously, according to the Union of BC Indian Chiefs’ Grand Chief Stewart Phillip, the ministers with whom he met made little effort to win him over. Phillip described separate meetings with Oliver and Aboriginal Affairs Minister Bernard Velcourt to the Vancouver Observer

[quote]There was just a lot of rhetoric about not dwelling on the past, looking towards the future, and realizing the benefits of the vast natural resource wealth that this country has been blessed with. Pretty much a Canadian Apple Pie lecture…There wasn’t any engagement or dialogue in terms of Minister Oliver saying ‘what will it take? What are your recommendations?…He just sat there and repeated his talking points.[/quote]

Phillip suspects this flurry of unexpected meetings – after years of being ignored or insulted as “radicals” opposed to development, by Oliver in particular – is about papering over consultation with First Nations that has been sorely lacking, paving the way for the pipelines through the argument of “national interest”.

If this experience is indicative of what other First Nations leaders are seeing from Harper’s pipeline push, then sooner or later the government will find this approach too is failing – forcing them to put some tangible goodies on the table.

Selling Enbridge

To sell this project to First Nations, Mr. Harper must persuade them that Enbridge has a marvelous track record, when in fact they average a spill a week or more.

He must convince them that his government has put in strict rules regarding spills (never admitting the obvious inference that there will be spills), hoping that no one will notice that fines will hardly frighten Enbridge, which already has them marked off as an expense of doing business – or the fact that he has actually gutted environmental regulations.

In saying this, you will not be hearing Harper & Co playing the famous Glenn Miller hit of another epoch, Kalamazoo, for that is the living symbol of the company’s utter inability to handle a spill, which was right along side a highway. It’s been over three years and the mess has yet to be cleaned up and it never will be.

The cleanup is a major concern for all of us, but especially for First Nations. The company cannot say they will have no accidents, for even big companies, serial liars all, know you can go too far. They dissemble, obfuscate an make promises they have no intention of keeping. This means, somehow, Enbridge and Harper must convince First Nations that there will be no damage from a burst pipeline or leaky oil tanker. I don’t think they can do it.

Taking it into the street

We should see these visits for what they are: an unpopular Prime Minister paying homage to Alberta MPs and Conservative-held seats in BC. Harper needs to show his western base that he’s prepared to go the extra mile for these pipelines.

We have no right to tell First Nations what to do but we can let them know that they are supported by their fellow citizens.

In fact, that is precisely what Grand Chief Stewart Phillip asked of us, following some of these meetings last week:

[quote]My message to those who have been very diligent in their efforts to bring their concerns forward about the possibilities of catastrophic oil spills and oil line ruptures is, ‘Now is the time to bring these issues into the street, to be visible and vocal while these federal officials are in BC.’ [/quote]

Thus I close by saying that this decaying Prime Minister and his lickspittle outsiders must be dealt with by First Nations, with our support, and that I believe that they will continue to see this Harper/Enbridge road show as the covey of snake oil salesmen it really is.

[signoff1]

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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.

[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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Weld aerial-4

Colorado’s fracking flood: new aerial photos, contamination fears

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Weld aerial-4
a wellhead, crude oil tank, toxic waste water tank llifted from ground, separator, and combustor flares submerged under flood waters – Weld County, Colorado (all images courtesy of EcoFlight)

Earlier this week, The Common Sense Canadian brought you the underreported story of flood damage to oil and gas infrastructure in Colorado – featuring photos taken by a local group concerned about toxic chemicals and hydrocarbons leaking into rivers and farmland, in the wake of the state’s catastrophic storm.

Today, we bring you new aerial photos of the wreckage, taken Tuesday over hard-hit Weld County by Colorado conservation photography group EcoFlight.

Weld aerial-5
Wellhead, crude oil tanks, toxic waste water tanks, multpile separator, multiple combustor flares submerged

Colorado is one of a dozen or more states that have been part of the controversial “fracking” boom across the United States and around the world. The state’s recent flooding raises the question: should fracking operations be located in a floodplain – especially one with a history of major floods?

Moreover, what oil and gas-related environmental and health impacts are really occurring as a result of this disaster?

Despite the lack of mainstream media coverage of the issue, we do know from the Denver Post of one confirmed pipeline rupture and at least 5,250 gallons of crude oil spilled into the South Platte River from two tank batteries ripped open by the flood.

According to The Post:

[quote]The flood that began late last week toppled dozens of oil and gas storage tanks and swamped other production facilities at sites in the flood plain. Earlier this week, oil drums, some empty, some full, could be seen floating in the river as far east as Kersey.[/quote]

Representatives for the Colorado Oil and Gas Association said Tuesday that nearly 1,900 oil and gas wells in the affected areas have been shut, with industry personnel inspecting and repairing sites.

That does little to reassure Cliff Willmeng of the local anti-fracking group East Boulder County United, who noted earlier this week, “Many of these chemicals are carcinogenic, neurotoxic, and known disruptors of the human endocrine system. As of today there is no testing taking place, industrial, independent or otherwise to determine the extent of the contamination, nor any talk of it.”

Weld aerial-8
Storage yard for oil and gas drilling equipment

In a follow-up conversation today, Willmeng indicated industry and government authorities have done nothing to allay his concerns:

[quote]What’s perfectly clear here is that the industry is going to act on this disaster in terms of damage control. They’re not prepared to respond to this – they don’t have the labour power, the technical resources or the motivation. This needs to go to higher authorities – the oil and gas industry can’t be the authority on the environmental assessment and remediation of Weld County.[/quote]

A spokesperson for the Colorado Department of Natural Resources, Todd Hartman, downplayed the risks of contamination from open storage pits for toxic frack fluids, noting there are relatively few of these pits in the region of the flood. “We are assessing the impact to open pits, including building a count of how many pits may have been affected,” said Hartman.

Pennsylvania State University petroleum engineering professor Robert Watson also tried to calm the fears of people like Willmeng, telling The Globe and Mail, “The amount of wastewater is so small compared to the amount of water passing through there, and compared to the chemicals used in farming.”

To Willmeng:

[quote]These statements are highly speculative…State authorities don’t even know the scale of the damage yet – nor do they have the people required to properly investigate the situation. What we’re seeing here is a classic game of passing the buck, downplaying the actual damage in an attempt to allay the fears of the public.[/quote]

His organization and others are calling for an immediate statewide moratorium on oil and as activity. In addition, “we’re calling for the Colorado Oil and Gas Commission to end its litigation and harassment of communities protecting themselves by denying oil and gas activity.” The groups have created a petition to this effect.

There are currently five communities in Colorado voting on ballot initiatives to create moratoriums or outright bans of oil and gas activities.

All photos below courtesy of EcoFlight. See more aerial images on their website here.

Weld aerial-1
Drilling rig submerged in flood waters. Black piping is standing upright to the derrick
Weld aerial-10
Submerged well pad
Weld aerial-2
Appears to be a flowline which carries petrochemicals from surrounding active oil and gas well pads
Weld aerial-3
Overturned crude oil tanks
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The End of Coal?

The End of Coal?

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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.

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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

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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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St. Vrain River - Weld, Colorado

Colorado flood raises fears of fracking chemical spill – new photos

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St. Vrain River - Weld, Colorado
St. Vrain River – Weld, Colorado (all photos courtesy of East Boulder County United)

A Colorado citizens’ group is raising alarm bells about the possible release of toxic chemicals into local rivers from flood-stricken fracking operations. At least one broken pipeline has been confirmed by local authorities.

The group, East Boulder County United – which aims to keep the controversial practice of hydraulic fracturing out of its communities – has been posting photos of natural gas infrastructure and chemical storage tanks inundated by recent floods to its facebook page. See this staggering collection of photos here, continued at bottom of story.

Weld County, Colorado
Weld County, Colorado

The group began sharing these images in an effort to wake the public and media up to this untold chapter of Colorado’s widely-covered flood story. Says East Boulder County United spokesperson Cliff Willmeng:

[quote]Our concern is that all of these sites contain various amounts of hazardous industrial wastes that are now capable of spilling into the waterways and onto the agricultural land. Many of these chemicals are carcinogenic, neurotoxic, and known disruptors of the human endocrine system. As of today there is no testing taking place, industrial, independent or otherwise to determine the extent of the contamination, nor any talk of it. And one can guarantee that this week the COGCC will be issuing more drilling permits even as the hydrocarbons flow into the rivers. [/quote]

According to one of the few local media stories to report on the oil and gas dimension of the flood, from The Denver Post yesterday, at least

one pipeline leak has been confirmed by Weld County Emergency Manager Roy Rudisill. “Other industry pipelines are sagging as saturated sediment erodes around the expanding river,” the Post reports.

Industry crews “are shutting in the lines, shutting in the wells,” Rudisill told the paper.

Encana - Boulder County
A flooded Encana operation in Boulder County

The photos were taken on Friday and Saturday afternoon throughout several northern Colorado farming communities at the centre of the state’s “500 year flood” – in neighbouring Boulder and Weld counties.

According to The Denver Post:

[quote]Oil drums, tanks and other industrial debris mixed into the swollen river flowing northeast. County officials did not give locations of where the pipeline broke and where other pipelines were compromised. [/quote]

Willmeng partly blames a lack of regulatory oversight for the situation he and his fellow landowners find themselves in. “There are over 20,000 oil and gas wells in Weld County alone,” Willmeng told The Common Sense Canadian via email. “By comparison there are only 17 inspectors for the entire state of Colorado.

“Prior to the floods we knew that the oil and gas industry was left to police itself. Now the rivers, agricultural zones and residences get to bear that decision.”

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Colorado has been one of a number of states hit by the recent boom in fracking operations – including Pennsylvania, New York State, Texas, Wyoming, Oklahoma, Arkansas, North Dakota and Louisiana.

Willmeng’s group is also concerned the oil and gas companies whose operations are flooded will downplay the risk of contamination:

[quote]The industry is going to claim that it remotely shut in all of the relevant wells. Unfortunately not all the hydrocarbons are protected within the well bore. There are exposed pipes, VOC burners and infrastructure related to the storage of oil, gas and

toxic industrial waste that all sit above the ground. The flood waters have hit all of these structures where they sit. [/quote]

The Common Sense Canadian has covered the issue of water contamination from fracking for some time. Stay tuned for more updates on this developing story.

All Photos courtesy of East Boulder County United
County Line Road-net. Boulder & Weld
County Line Road, on border of Weld and Boulder counties
Weld County, Colorado
Weld County, Colorado
St. Vrain River - Weld County
St. Vrain River – Weld County
Weld County, Colorado
Weld County, Colorado
Weld County, Colorado
Weld County, Colorado
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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

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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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Incinerating trash is a waste of resources

Suzuki: Incinerating trash is a waste of resources

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Incinerating trash is a waste of resources
A German waste-to-energy plant, built in 2005

Many urban areas have built or are considering building waste-incineration facilities to generate energy. At first glance, it seems like a win-win. You get rid of “garbage” and acquire a new energy source with fuel that’s almost free. But it’s a problematic solution, and a complicated issue.

Metro Vancouver has a facility in Burnaby and is planning to build another, and Toronto is also looking at the technology, which has been used elsewhere in the region, with a plant in Brampton and another under construction in Clarington. Incinerating trash is especially popular in the European Union, where countries including Sweden and Germany now have to import waste to fuel their generators.

No such thing as “waste”

The term “waste” is correct; there’s really no such thing as garbage. And that’s one problem with burning it for fuel. Even those who promote the technology would probably agree that the best ways to deal with waste are to reduce, reuse and recycle it. It’s astounding how much unnecessary trash we create, through excessive packaging, planned obsolescence, hyperconsumerism and lack of awareness. This is one area where individuals can make a difference, by refusing to buy overpackaged goods and encouraging companies to reduce packaging, and by curbing our desire to always have newer and shinier stuff.

[quote]Burning plastics and other materials creates emissions that can contain toxins such as mercury, dioxins and furans.[/quote]

We toss out lots of items that can be reused, repaired or altered for other purposes. As for recycling, we’ve made great strides, but we still send close to three quarters of our household waste to the landfill. Considering each Canadian produces close to 1,000 kilograms of waste a year, that’s a lot of trash! Much of the material that ends up in landfills is usable, compostable or recyclable, including tonnes of plastics.

Turning unsorted and usable trash into a valuable fuel commodity means communities are less likely to choose to reduce, reuse and recycle it. Burning waste can seem easier and less expensive than sorting, diverting and recycling it. But once it’s burned, it can never be used for anything else – it’s gone!

Not so green

Incinerating trash also comes with environmental problems. Although modern technologies reduce many air pollutants once associated with the process, burning plastics and other materials still creates emissions that can contain toxins such as mercury, dioxins and furans. As with burning fossil fuels, burning waste – much of which is plastics derived from fossil fuels – also produces carbon dioxide and nitrous oxide emissions that contribute to climate change.

Burning waste doesn’t make it disappear, either. Beyond the fly ash and pollutants released into the atmosphere, a great deal of toxic “bottom ash” is left over. Metro Vancouver says bottom ash from its Burnaby incinerator is about 17 per cent the weight of the waste burned. That ash must be disposed of, usually in landfills. Metro testing has found high levels of the carcinogenic heavy metal cadmium in bottom ash, sometimes twice the limit allowed for landfills. High lead levels have also been reported.

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Incineration is also expensive and inefficient. Once we start the practice, we come to rely on waste as a fuel commodity, and it’s tough to go back to more environmentally sound methods of dealing with it. As has been seen in Sweden and Germany, improving efforts to reduce, re-use and recycle can actually result in shortages of waste “fuel”!

Better solutions available

It’s a complicated issue. We need to find ways to manage waste and to generate energy without relying on diminishing and increasingly expensive supplies of polluting fossil fuels. Sending trash to landfills is clearly not the best solution. But we have better options than landfills and incineration, starting with reducing the amount of waste we produce. Through education and regulation, we can reduce obvious sources and divert more compostable, recyclable and reusable materials away from the dump. It’s simply wasteful to incinerate it.

It would be far better to sort trash into organics, recyclables and products that require careful disposal. We could then divert these different streams to minimize our waste impacts and produce new commodities. Organics used in biomass energy systems could help offset fossil fuel use while creating valuable supplies of fertilizers. Diversion and recycling lessen the need to extract new resources and disrupt the environment while creating more value and jobs. That’s a win all around!

Written with contributions from David Suzuki Foundation Communications Manager Ian Hanington.

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