Tag Archives: Enbridge

HSBC: BC Pipelines More Strategically Important than Keystone XL

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Read this article from the Vancouver Sun on the president of HSBC Canada’s comments at a recent conference in BC, suggesting that oil pipelines from the Alberta Tar Sands to BC’s coast are of greater strategic importance for Canada’s energy industry than the controversial proposed Keystone XL pipeline to the US Gulf Coast.

“Citing Prime Minister Stephen Harper’s statement that U.S. approval
of the Keystone pipeline linking Alberta’s oilsands to U.S. markets is a ‘no brainer,’ HSBC president Lindsay Gordon said a pipeline to the West
Coast is more important. ‘I’m not suggesting that pipelines to
the West Coast across British Columbia are a no brainer, but I would
certainly argue in terms of the strategic importance to Canada and
B.C.’s future, they are actually significantly more important than
pipelines to the U.S., including Keystone.'” (Sept 24, 2011)

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Public Can’t Rely on Government Processes to Stop Tankers and Pipelines

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This is the third part of a three part series from Rafe Mair on civil dissent.

In the last article I discounted the possibility that any hearing into the Enbridge pipelines or tanker traffic, to and out of Kitimat and Vancouver would dare stop these projects. I considered and rejected, without saying so, any intervention by the federal procedures, specifically the National Energy Board’s Federal Panel Review which held against the Taseko proposal at Fish Lake. I don’t believe for one moment that this Panel would put an end to the pipelines permanently but at most would attach conditions. Since there are no environmental conditions that would prevent horrendous and permanent damage to our environment, the NEB, will, at most, be a slowing down process.

Assuming that the pipelines and tankers are supported by both the federal and provincial governments I don’t believe that any review panel would have the jam to reject the projects outright (nor can it, in fact – it only has the power to make recommendations to the Minister of Environment, who has the final say) but most surely would use the weasel word “mitigation”, where no mitigation is possible or acceptable.

A far better bet is that the Federal cabinet will, as it did with the original Kemano II project, waive the requirement for such a hearing or any other.

Consider the Harper government’s position – to reject the pipelines and tankers would be to reject the Tar Sands, especially if the US Keystone XL pipeline is rejected by President Obama. Even if it is passed by Obama, the heat from China, the projects themselves, plus the pressure of the business community that finances the Tory government will be too strong for Harper & Co. to resist. In fact the approval of environmental destruction comes naturally to right wing governments so that, in my view, the issue moot. When it comes to fighting these projects, the public of BC will be on its own.

What about majority rules? Isn’t that the end of the matter? Both senior governments have mandates so they can do as they please?

This simply is not so. Neither government has faced this as an issue and there have been no referenda. There will not, in my opinion, be any meaningful forum for popular opinion. But the critical question is this: the proposals will do permanent and egregious harm – what government ever has the moral or even legal right to make such a decision without direct citizen approval?

Friends – we must face the fact that neither government will stand in the way of these projects.

I must be careful with my next point. First Nations have, thus far, made it clear to Enbridge that they will not accept the projects. They have recently refused a bribe of 10% of the action. Careful though I must be, it must be recorded that some First Nations have accepted financial inducements to permit fish farms, although most First Nation have opposed; more tellingly, perhaps, some have been induced to supported Independent Power Producers (IPPs) ravishing their rivers. Indeed, in the Klina Klini project, First Nations have sued the provincial government for nixing the project.

One must ask, then, is First Nations rejection of the Pipelines an outright refusal or just part of a negotiation process?

We must prepare for the worst. We must assume that the projects will be approved and, govern our actions accordingly. Clearly, then, we must be ready for civil disobedience.

This, in my view, means three things:

  1. There must be an obvious flouting of the public will. In the absence of a public referendum on the matter, the flouting of public will becomes clear.
  2. We must understand that civil disobedience carries with it penalties. Even though these penalties will involve the governments and corporations subverting justice by proceeding criminally in a civil matter, we must realize that this is a penalty we will pay and be prepared to pay it.
  3. The Civil Disobedience must be on a large scale. We must have leadership and we must provide that leadership with our support and enough money to stand behind those who are fined, go to jail, or both. People’s savings will be attacked and their families will suffer. We can expect no mercy from companies or our very own governments.

The notion of lawbreaking does not come easily to me, a lawyer. The fact remains that the great United States Supreme Court Justice Oliver Wendell Holmes was right when he said that the courts decide the law, not justice.

The cause of preserving our province is too important for us to meekly accept a judge’s finding that prevention of that cause is to be supported by jail sentences. As Justice Holmes so tartly observed, law and justice are not synonymous.

Our question is simple to state: is it justice when any tribunal, parliament, legislature or court destroys our environment, not as a vital need of society but for private profit?


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Actress/activist Daryl Hannah being arrested at a recent protest in Washington, DC, to stop the proposed Keystone XL Pipeline from the Tar Sands to Texas

When Civil Disobedience is Justified

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Last week I advised that we must be prepared to lie down in front of machinery aimed at creating the pipelines from the Tar Sands to Kitimat and, as I fully expected, got some heat.

We have to face this question before we get into morality and legality issues – why do you suppose that there is no public process dealing with the merits of this idea?

The answer is simple: the Campbell/Clark and Harper Governments know that we won’t try to physically stop the undertaking, so why bother holding meaningful hearings? To do so would raise the expectation that we care and would listen.

I realize that the above is cynical but cynicism has been Campbell/Clark’s hallmark since they took office in 2001, announced that the NDP had left us in penury and promptly gave over a billion in tax cuts to the well off.

(And let me set out once more the issue – building and using pipelines or tankers does not pose risks but absolute mathematical certainties of catastrophic consequences. If you take a “risk” without any limit on how often or how long you will run this “risk”, that risk becomes a certainty; the only question remaining being the extent of damage done).

When the public has no influence on the making of a law it has no option but to oppose it on the ground.

Let me make something clear that I omitted in my last article: the defiance must be peaceful. The example of Mahatma Gandhi must be the by-word. Such violence as may occur must be by the authorities, not the protesters. Please take what I just said as being in deadly earnest.

Moreover, any who disobey the law must be prepared to accept the consequences.

To the morality. Civil disobedience must be in consequence of a wrong being done, not a political whim. There is a large difference between protesting and active flouting of a law and one crosses the Rubicon with very great care. CD must be in response to a serious change in policy not warranted by any public approval. It is not enough to say that a free government approved the project because in our system, parliaments (legislatures) are not free agents voting the wishes of their constituents. Moreover our governments don’t even trouble themselves with legislatures – it’s just time wasted on getting a rubber stamp. As Finance Minister Kevin Falcon has remarked, it would all be so much easier if we were like China and didn’t trouble ourselves with tiresome procedures in such matters and just let the government get on with it.

Let’s get down to principles and morality. If a government, with its friendly construction companies, decides to irrevocably destroy large tracts of wilderness, exposing it to the absolute certainty of ongoing catastrophes, can they do this at their pleasure? Must the public be content with their right, several years down the road, to throw out the government after their policy is a fait accompli?

All of what I argue prevails with equal if not even greater impact against oil tankers down our coast.

Have we not got the right nay, duty to do all within our power, save violence, to stop this from happening? Are these not, in Tom Paine’s words, ”times that try men’s souls”?

Where is the illegality, the immorality here? Is it immoral, should it be illegal for citizens to stand against a tyrannical government which, hand in hand with its bankers, destroys our wilderness, ruins our rivers and the ecologies they sustain and poses the never-ending threat of horrific oil spills on land and in the oceans?

How can the people be wrong to reject the outright lies of government and industry flacks? What is the only option left a citizenry when a dictatorial government demolishes our land for all time?

How can citizens be wrong to stop, with their bodies and freedoms, the ravishing of nature’s bountiful and precious endowment so that world’s filthiest energy source can be spread like black ooze across one of the last wildernesses on earth?

I suppose it gets down to this: is it a sufficient answer for generations to come that we tried to stop the carnage they see by sending letters to editors and carrying placards?

I think not.

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Yinka Dene First Nations Reject Enbridge’s Financial Incentive Offer

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Read this story in the Vancouver Sun on the rejection by the five First Nations that make up the Yinka Dene Alliance of financial incentives offered by Enbridge in an effort to secure  support for its proposed Northern Gateway Pipeline.

“In its response to Enbridge, the Yinka Dene Alliance called the
Calgary-based company’s offer a ‘desperate and disrespectful attempt to
buy our support for this pipeline.’ Enbridge’s one-page offer to
the Nadleh Whut’en First Nation, one of the members of the alliance,
said ownership would provide an estimated $7-million profit over the
30-year pipeline life. The offer was described as time sensitive. ‘Consequently, we strongly recommend that you meet with our aboriginal
relations team at your earliest opportunity to receive the agreement,’
Enbridge said in the letter obtained by The Vancouver Sun.” (Sept 9, 2011)

http://www.vancouversun.com/business/First+nations+group+rejects+pipeline+ownership+offer/5374046/story.html#ixzz1XVjGhQxN

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Shades of Green: Pipelines and Tankers – the Building Pressure

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Anyone who is concerned about the arrival of pipelines and tankers to BC’s West Coast should be worried. The forces are mounting to make this province a bridge to an energy-hungry Asia. And the inevitable result will be – sooner or later – a ruptured pipeline despoiling pristine rivers and a broken tanker spilling millions of barrels of oil into one of the few undefiled ecologies remaining on our planet.

This scenario is being set by a dramatic change of circumstances in the last few years. Massive investments in the Alberta oil sands have created supplies of crude that must reach markets. To maximize profits, producers want more export options than the United States, the sole foreign recipient of this crude. As America’s economy slows and Asia’s booms, ocean access to the entire Pacific Rim becomes irresistible.

Meanwhile, the entire energy calculus has changed with the discovery of extraordinary quantities of shale gas in Canada and the US. America estimates it has enough gas to meet its domestic energy needs for 200 years. Canada’s supply, centred mostly in northern BC and Alberta, is similarly generous. Since the US will need less Canadian gas, the obvious place to sell it is to Asian markets. And that means pipelines and liquid natural gas (LNG) terminals for coastal BC.

All the pieces to support the arrival of such gas and oil terminals are falling into place. China has invested $10 billion in Alberta oil sands with the expectation rewards – oil in preference to profits. Royal Dutch Shell, Korean Gas, Japan’s Mitsubishi Corporation and Malaysia’s Petronas are all urgently planning for shipments of LNG from BC’s West Coast to their markets. The Montney and Horn River natural gas fields in BC, responsible for making this province the third largest gas producer in the world, could be supplying 5.5 billion cubic feet of gas per day by 2020 – gas that needs to reach buyers. Shell and Mitsubishi are considering that floating off-shore LNG plants would be ideal for BC’s rugged coast. They and other investors are speculating about at least four coastal pipelines and terminals to tranship LNG and oil to Asian markets (Globe & Mail, June 14/11).

If any British Columbians are nervous that foreign energy corporations are planning our future and threatening our treasured West Coast ecology, they will receive no solace from Canada’s Harper government. Foreign Minister John Baird has recently been to China, calling it our “friend” (Ibid. July 19/11) and emphasizing the critical importance of China’s energy and resource appetite in Canada’s economic plans. In Shanghai he declared that Canada’s “relationship [with China] has entered a new era over the past few years” and that it is “the centrepiece of a larger picture of the priority that we want to raise with Asia-Pacific (Ibid. July 21/11). To reinforce this support, Harper’s Minister of Natural Resources, Joe Oliver, has endorsed Enbridge’s Northern Gateway Pipeline – a $5.5 billion project that would bring oil and gas through 1,172 km of BC’s wilderness to Kitimat – before the public environmental assessment has even started (ForestEthics, July 10/11).

Meanwhile, in a disquieting move that is clearly designed to erase some of the inconvenient environmental obstacles that lie between Asian energy hunger and Canada’s export ambitions, the Harper government is eliminating 776 positions from Environment Canada, with a further downsizing of 5 to 10 percent next year. These are the professional biologists, chemists and climatologists who determine the difference between careful and reckless plans, the science-based experts who advise that policy occurs within responsible environmental constraints – if no one knows about any unfolding ecological wreckage, then it obviously doesn’t exist.

Despite huge opposition to the Northern Gateway Pipeline project in British Columbia, Enbridge is sensing success and is massaging the public with a national advertising campaign designed to humanize its image from one of the least responsible of all pipeline corporations to one that cares for the public over profits. Its corporate slogan, “Where energy meets people” has been neatly spliced into nearly full-page colour newspaper ads depicting Canadians energetically engaged in activities that are supposed to connect human challenges to the importance of pipelines, to show that personal fulfilment cannot be separated from Enbridge’s crucial role in our lives. “Where Energy Meets Culture” shows ballet dancers in a dramatic pose on an open stage, “Where Energy Meets Pride” shows four aboriginal runners wending their way along a lonely bucolic road, and “Where Energy Meets Victory” shows a team of five bicyclists racing serenely along a long stretch of prairie highway.

The psychology of these ads is both oblique and devious, effectively designed so people will forget that Enbridge wants to pipe oil to a West Coast port, that oil sands crude is particularly corrosive to pipelines, that this pipeline must traverse hundreds of pristine rivers and streams on its winding wilderness course to Kitimat, and that such a pipeline will invite almost one massive supertanker per day – about 225 per year – to some of the most treacherous, beautiful and vulnerable coastlines in the world.

So this is the scenario being designed for British Columbia. It is to become North America’s western departure point for energy exports to China, Japan, Korea, Malaysia and any Pacific Rim country that belongs to the distribution circuit. Huge profits are to be made by huge corporations. The Harper government’s plan for prosperity is founded on a view that disregards ecological concerns and forgets that all this gas and oil represents greenhouse emissions that are cooking our planet.

British Columbians who love our coastline, revere the Great Bear Rainforest and honour the wild majesty of our province had better gird their loins for a fight. It’s coming, it’s coming soon, and the enemy is amassing its forces. The outcome will determine BC’s future character, alter the world’s energy calculus and decide who is joining or resisting our drift toward environmental Armageddon.

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Enbridge Chairman Pat Daniel

Rumours of Pipeline’s Demise Grow as Speculation Surrounds Enbridge

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It’s impossible to divine anything concrete from the flurry of interesting chatter surrounding Enbridge’s embattled 1,100 km Northern Gateway Pipeline proposal. Alternate routes, Asian energy experts laughing at our stupidity, Enbridge as a straw man to help push through another pipeline to the US…Much of it coming via rumours, hypotheses, and veiled political innuendo.

But one thing it does indicate is a sudden shift in the once-predictable narrative connected to Enbridge’s project.

Up until recently, the story was all about a stand-off between the world’s biggest pipeline builder and stubborn First Nations and environmentalists in BC opposed to the project. The company and its political boosters maintained it was good for the economies of Western Canada, would provide oodles of person-years of employment and a bituminous shot to our GDP.

If they could just get us skeptical citizens and First Nations to get that through our thick skulls – and stop worrying about the threat of spills, in spite of the company’s dismal track record.

As the storm has brewed over the past year and a half, the company has focused its efforts on shoring up political support and wooing First Nations with increased economic incentives. Postmedia’s resident corporate/oil industry apologist, Barbara Yaffe, was issuing free lectures to aboriginal leaders as recently as a couple weeks ago, advising them to suck it up, get with the times, and get onside this oil pipeline project, as well as a highly contentious mine proposal at Fish Lake in the Chilcotin region.

The political strategy seemed to be working – with the exception of the Clark Government’s coy avoidance of outright support for the pipeline of late (even they can read polls and see how unpopular the concept is in BC – better to sit on the sidelines than say something printable in support). The issue figured prominently at recent meetings between the country’s provincial energy ministers and premiers – and Alberta’s energy minister Ron Liepert has been an enthusiastic torch bearer for the project.

With a fresh Harper majority in Ottawa, it would seem the political conditions are right for Enbridge.

But on every other front, the company is, well, getting its butt handed to it. Their image woes now extend to major international press, including National Geographic, ABC News and the New York Times.

And so it is that rumours and hypotheses implying the pipeline is in real trouble (or should be) begin to spread.

All of a sudden, we have 3 – count ’em – relatively new proposals for getting Alberta Tar Sands crude to tankers on the north Pacific Coast. One by rail to Prince Rupert, one a spur off a proposed KinderMorgan pipeline expansion, and the other floated just this week in a Sun column by Barbara Yaffe.

Ms. Yaffe’s now signing a different tune – suggesting that all the controversy from the Enbridge line could be avoided by shifting to a new scheme from a little-known Vancouver consulting company called G Seven Generations, Ltd. The company is apparently involved in a plan to move bitumen by train from Alberta to Valdez, Alaska (yes, the same Valdez of Exxon infamy) – one would presume through the Yukon, though that detail is omitted in Yaffe’s column.

Yes, perhaps this $20 Billion pipeline on rails (almost 4 times the projected cost of the Enbridge line) is the answer. Ms. Yaffe certainly seems to think it should be a breeze. Just as, I’m sure, Enbridge thought about its pipeline only a few short years ago.

Or maybe KinderMorgan – the company stealthily trying to slip by the public with a massive expansion (potentially totalling over 800,000 barrels/day of new Tar Sands capacity) will build a spur off its Trans-Mountain Pipeline east of Prince George and follow a very similar corridor as Enbridge to a new tanker terminal in Kitimat (how they think this proposal will be music to people’s ears following a defeated Enbridge line with essentially the same flow of oil through the same path is a mystery). The company floated the spur on its website earlier this year.

Or could the bitumen be carried on CN rail lines to the Port of Prince Rupert?…

Then, just this week we read in a column in the Tyee by Dr. Michael Byers an account of a candid conversation he claims to have had at a recent international conference in Hawaii, shedding yet new light on the subject.

Byers says he overhead a number of high-level Asian energy players mocking us silly Canadians for building a pipeline to our Pacific Coast, ostensibly to carry bitumen to Asian countries that have no use for it – owing to a severe lack of refinery capacity to deal with the problematic black sludge. The man Byers is speaking to is “the chairman of a Singapore-based consulting firm that operates at the highest levels of the global oil and gas industry.”

This energy consultant tells Byers:

“‘The Gulf of Mexico coast is the only place in the world with any significant capacity for handling bitumen. That’s because it has refineries equipped to handle heavy oil from Venezuela. If the Asians buy any bitumen from Canada, they’ll insist on a very steep discount, because they’ll have to ship it to the Gulf of Mexico, too.’

He chuckles. ‘But we don’t tell the Canadians this straight-out. We write a report for them.'”

Byers relates more of their conversation, as he asks the consultant:

“‘But what about the Northern Gateway?…Enbridge is a major player. Surely they would realize that there’s no market in Asia?’

‘Enbridge is a pipeline company, not an oil company,’ he replies, taking an even closer look at me. ‘They’ve promised to find a market, and nothing more. They don’t care if it’s at a discount.’

‘So you’re saying that Northern Gateway doesn’t make economic sense,’ I studiously repeat.

He nods emphatically. ‘If the Canadians were smart, they’d build the capacity to refine all their bitumen at source, so as to ship a much more valuable product to Asia and elsewhere. But there are only a handful of upgraders in Alberta — and their capacity is actually going down.'”

So the Asian market will take Canadian bitumen, but only at a “steep” discount – which completely contradicts one of Enbridge’s main justifications for the project: that it will enable Canadian oil companies to fetch a higher dollar for Tar Sands crude on the international market (which typically pays a little more than the West Texas-based crude exchange for North American oil).

The upshot, according to Byers’ consultant, is that the Enbridge Northern Gateway is primarily functioning as added pressure on US regulators to approve the proposed 3,200 km Keystone XL pipeline from the Tar Sands to refineries on the US Gulf Coast. In the wake of two serious spills in the States from the pipeline’s existing sister line, the Keystone Pipeline, this latest proposal form TransCanada Pipelines is meeting unexpected opposition from environmentalists and political forces in Washington as the Sate Department deliberates the project’s future.

The idea is that the possibility of a competing export route to Asia will heighten pressure for our southern neighbours to pass the Keystone XL.

Does all this second-hand speculation portend the end of Enbridge’s pipe dream, or are these rumours of its death – as Mark Twain once said – greatly exaggerated?

The coming months, in the lead-up to the public hearings for the project at the National Energy Board, should provide some interesting new chapters to this saga.

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Enbridge Northern Gateway Simply an Uneconomic Ruse to Push Keystone XL, Says Asian Energy Expert

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According to what a leading Asian energy consultant let slip at a recent conference to UBC’s Dr. Michael Byers, China doesn’t have the refining capacity to handle Alberta bitumen – therefore they would only buy Tar Sands crude transported by the Enbridge Northern Gateway Pipeline at a steep discount. This consultant further implies Enbridge’s line is a ruse – an uneconomic straw man designed to put more pressure on the US State Department to approve the contentious Keystone XL line to the Gulf of Mexico, where the only significant bitumen refining capacity lies.

Read Dr. Byers’ article here (August 17, 2011).

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Enbridge alternative: Rail to Valdez Alaska? So says Barbara Yaffe

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Read this article by the Vancouver Sun’s chief Enbridge apologist, Barbara Yaffe – now touting a rail route connecting the Alberta Tar Sands to Valdez, Alaska as a more palatable alternative to the Enbridge Northern Gateway Pipeline.

“This plan has a huge and unmistakable advantage: Aboriginal chiefs like
it. And the company is confident environmentalists and the broader B.C.
public will like it too. Under the scheme, oilsands product would be
unloaded from rail cars at Delta Junction in Alaska, then fed into an
existing pipeline that snakes southward to Valdez.” (August 16, 2011)

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Rafe & Damien on EVOTV (Part 1)

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Rafe Mair and Damien Gillis discuss The Common Sense Canadian and their coverage of key environmental and public policy issues in BC and Canada on Shaw’s EVOTV, with host Irma Arkus. The three cover a wide range of issues in the half hour program – from private river power and the state of BC Hydro to oil pipelines and supertankers on our coast, natural gas fracking, coal mines, salmon farms and the Cohen Commission into disappearing Fraser River sockeye. (Aug 8, 2011)

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First Nations Leaders Respond to Barabara Yaffe’s Provocative Column on BC Resource Projects

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Read this scathing response to a recent column by the Vancouver Sun’s Barbara Yaffe, titled “First Nations Need to Embrace Resource Projects” – from the Vice Tribal Chief of the Carrier Sekani Tribal Council and the Tribal Chief of the Tsilhqot’in National Government. (Aug 2, 2011)

 

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