Watch these timelapse animations of recent water withdrawals and industrial activity in Fort Nelson First Nation traditional territory for natural gas hydraulic fracturing. These short term licenses were all issued without public or First Nations consultation. Courtesy of FNFN Lands Dept. and mapper Bobby Concepcion.
Tag Archives: Oil and gas
American Gas Firm Launching $250 Million NAFTA Challenge to Quebec Fracking Ban
Read this story from the Globe and Mail on US energy firm Lone Pine Resources’ forthcoming NAFTA challenge regarding lost economic opportunities resulting from Quebec’s ban on natural gas hydraulic fracturing. (Nov. 15, 2012)
A U.S.-incorporated energy firm, Lone Pine Resources Inc., is taking on Quebec’s stand against fracking, saying it violates the North American free-trade agreement and demanding more than $250-million in compensation.
Lone Pine Resources Inc., headquartered in Calgary but incorporated in Delaware, disclosed in a filing with the U.S. Securities and Exchange Commission this week that on Nov. 8, it filed a notice of intent to sue the Canadian government under NAFTA’s controversial Chapter 11.
Those provisions of the trade treaty allow U.S. and Mexican companies to sue Ottawa if they feel they have been wronged by a government policy or action.
Lone Pine is just one of many major natural gas companies affected by Quebec’s moratorium on hydraulic fracturing, or fracking, which involves injecting liquids deep into the ground. Fracking has been controversial over fears for its effects on the environment and drinking water, and has been banned in several European countries. The industry says that done properly, it is safe.
According to Lone Pine, Quebec passed legislation last June that, in addition to the moratorium, also completely cancelled permits for oil and gas activity in areas directly below the waters of the St. Lawrence River – including the revoking of a permit held by Lone Pine covering 33,460 acres.”
Company spokesman Shane Abel said in an interview that Quebec’s legislation denies the company any compensation for the loss of its permit.
“We think that the expropriation is arbitrary and without merit,” he said. “… We think that’s a clear violation of the NAFTA agreement.”
The NAFTA challenge, levelled at a major environmental policy, is fuel for critics of trade deals who are now attacking Canada’s proposed investor-protection agreement with China, which would extend similar rights to Chinese investors in Canada.
“It contradicts everything the government has said about the China investment treaty, about it having no impact on the environment and there being no threats to non-discriminatory environmental measures,” said Stuart Trew, trade campaigner with the Council of Canadians.
BP Settles for $4.5 Billion in Damages, Plus Criminal Charges Over 2010 Gulf Spill
Read this story from the Associated Press on BP’s recent settlement for damages relating to its 2010 disaster in the Gulf of Mexico and related criminal charges. (Nov. 15, 2012)
NEW ORLEANS — A day of reckoning arrived for BP on Thursday as the oil giant agreed to plead guilty to a raft of criminal charges and pay a record $4.5 billion in a settlement with the government over the deadly 2010 disaster in the Gulf of Mexico. Three BP employees were also charged, two of them with manslaughter.
The settlement and the indictments came 2½ years after the drilling-rig explosion that killed 11 workers and set off the biggest offshore oil spill in U.S. history.
The settlement includes nearly $1.3 billion in fines — the biggest criminal penalty in U.S. history — along with payments to entities inside and outside government. As part of the deal, the BP will plead guilty to charges related to the deaths of the 11 workers and to lying to Congress.
“We believe this resolution is in the best interest of BP and its shareholders,” said Carl-Henric Svanberg, BP chairman. “It removes two significant legal risks and allows us to vigorously defend the company against the remaining civil claims.”
Also, BP rig workers Robert Kaluza and Donald Vidrine were indicted on federal charges of manslaughter and involuntary manslaughters, accused of repeatedly disregarding abnormal high-pressure readings that should have been glaring indications of trouble just before the blowout.
In addition, David Rainey, BP’s vice president of exploration for the Gulf of Mexico at the time, was indicted on charges of obstruction of Congress and making false statements. Prosecutors said he withheld information from Congress that indicated the amount of oil spewing from the blown-out well was greater than he let on.
Rainey’s lawyers said the former executive did “absolutely nothing wrong.” And attorneys for the two rig workers accused the Justice Department of making scapegoats out of them.
“Bob was not an executive or high-level BP official. He was a dedicated rig worker who mourns his fallen co-workers every day,” Kaluza attorneys Shaun Clarke and David Gerger said in a statement. “No one should take any satisfaction in this indictment of an innocent man. This is not justice.”
The settlement, which is subject to approval by a federal judge, includes payments of nearly $2.4 billion to the National Fish and Wildlife Foundation, $350 million to the National Academy of Sciences and about $500 million to the Securities and Exchange Commission. The SEC accused BP of misleading investors by lowballing the amount of crude spewing from the well.
“This marks the largest single criminal fine and the largest total criminal resolution in the history of the United States,” Attorney General Eric Holder said at a news conference in New Orleans. He said much of the money will be used to restore the Gulf.
Read more: http://bostonherald.com/business/general/view.bg?articleid=1061174984&position=0
Fort Nelson First Nation Pushes for Shale Gas Water Licence Reform
Read this story by Mark Hume in the Globe and Mail on Fort Nelson First Nation’s concerns about long-term water withdrawal licence applications for shale gas development in their territory in northeast BC. (Nov. 13, 2012)
Kanute Loe, an elder with a small native band in northeast British Columbia, measures the impact of the gas industry on the environment by looking at the water levels dropping in the streams and rivers he fishes.
“I spend a lot of my time in the bush. I travel the rivers … there’s creeks that there’s no water coming out of,” he said Tuesday.
“All of a sudden we’re having trouble catching fish … Our rivers are getting harder to navigate … it’s almost like somebody drilled a hole in the bottom of the bathtub,” Mr. Loe said in Vancouver at a news conference to express aboriginal concerns about increasing water extraction by industry.
Sharleen Wildeman, chief of the Fort Nelson First Nation, said her band has grown alarmed at the growing needs of the gas industry, which draws water from streams, lakes and rivers. The water is mixed with sand and chemicals in a slurry that is injected deep under ground. The process, known as hydraulic fracturing or fracking, breaks up shale structures and releases gas deposits.
Ms. Wildeman, whose 800-member band is located near the booming Horn River gas fields, said industry in that area has 20 long-term water licence applications before the B.C. government. If those licences are approved, she said, it would authorize industry to withdraw “tens of billions of litres of water annually” for up to 40 years, for use in fracking operations.
“We are extremely concerned about a massive giveaway of water from our rivers and lakes, without any credible process identifying what the long-term impacts will be,” she said.
Ms. Wildeman is upset with a government consultation process “that has stalled,” and she said the band is demanding five conditions be met before any new water licences are approved.
She said the band wants baseline environmental studies done before licences are issued; multi-year development plans filed in advance to identify proposed water sources, gas-well sites, roads and camps; environmental plans that cap water withdrawals at ecologically acceptable levels; protection of culturally significant land and water resources, and an agreement that environmental impact monitoring and enforcement will be done by an independent body.
“Failure to embrace these fundamental reforms will lead to increasing yet avoidable conflict,” Ms. Wildeman said.
Unprecedented Internal Access to DFO for Enbridge
Read this story from the Vancouver Sun on Enbridge’s unprecedented access to the Departmen tof Fisheries and Oceans, including their own dedicated internal staff dedicated to the company’s project. (Nov. 10, 2012)
Enbridge Inc.’s proposed Northern Gateway pipeline project is getting special attention from the federal Fisheries department, according to an internal email obtained by The Vancouver Sun.
In what critics call an unprecedented step, the department has listed a “Northern Gateway Liaison” at a top level of its organizational chart, under a reorganization prompted by the 2012 budget’s sweeping Fisheries Act amendments.
The position will report directly to the executive director of the National Ecosystems Management Branch at the department’s headquarters.
“This suggests an unprecedented level of access and engagement for a specific project,” said Green party leader Elizabeth May, who in the 1980s was a senior adviser to a federal environment minister.
“This is the reality of a government that has told the bureaucracy, ‘be prepared to make sure this project goes through.’ ” B.C. NDP MP Fin Donnelly, his party’s deputy fisheries critic, said he’s never heard of a company getting such special treatment.
“This clearly exposes the Harper Conservative oil pipeline agenda. They are putting the oil industry ahead of fishing, tourism and all other industries.”
Read more: http://www.vancouversun.com/news/metro/shows%2BFisheries%2Bfocus%2BGateway/7530065/story.html
Where Was the Climate in US Presidential Election? Ben West in the Huffington Post
Read this column from Ben West in the Huffington Post on the lack of attention focused on climate and environmental issues in the recent US Presidential election and what that means for concerned Canadians. (Nov. 5, 2012)
“It’s global warming, stupid!” Believe it or not, that is what it says on the cover of Business Week right now. This is of course a reference to Bill Clinton’s internal campaign slogan from 1992 — “It’s the economy, stupid” — which was made famous by the documentary film The War Room. The slogan is a play on the old adage, “Keep it simple, stupid,” sometimes known as the “KISS” principle.
As Canadians, we are well aware that we are sleeping next to an elephant, and that the choices made by the American president have broad implications not only for Canada but for rest of the world.
Much to the chagrin of many conscientious Canadians, the implications of a changing climate were off the radar in the American election before Hurricane Sandy swept in. The topic was not raised even once during the 2012 U.S. presidential debates. You would think it would be a no brainer to talk about this issue, given that the United Nations has called climate change “the single biggest threat facing humanity today.”
This “climate silence” has perhaps been a reflection of the power of the fossil fuel industries in U.S. politics. In one of the debates, Obama and Romney actually fought over who was more supportive of the coal, oil and gas industries. Romney attacked Obama for stopping the Keystone XL pipeline and Obama responded by bragging that he had built enough pipeline during his presidency to “… wrap around the earth once.”
The fact checkers at Politifact checked it out and it’s true. Over 29,000 miles of oil and gas pipelines were built in the U.S. in the last four years; the circumference of the globe at the equator is a little less than 25,000 miles.
Even with that, Obama looks like a tree hugger compared to Romney, who is heavily backed by barons of the oil industry — like the infamous Koch brothers who are behind much of the junk science that still to this day is trying to undermine the international consensus that human activity is causing climate change.
Potential LNG Energy Demands Stall Hydro’s Long-term Planning
Read this story from the Vancouver Sun on BC Hydro’s inability to accurately plan for future energy demands given the enormous potential requirements of proposed Liquefied Natural Gas projects on BC’s coast. (Nov. 19, 2012)
BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.
Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.
It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.
The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.
B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.
Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.
However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.
As a result, the IRP was more or less out of date from the day it was released this summer.
Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html
One Step Forward with Fish Farms, Two Steps Back with Proposed Fossil Fuel Exports
A couple of thoughts today.
A promising article on fish farms appears in today’s Vancouver Sun. At face value it looks like great news – the story of fish farming on land with no contact with the ocean.
As I say, it looks great but I want to hear what Alexandra Morton has to say.
The objection industry has always made is that it’s too expensive for them to compete that way. The answer to that, according to the Sun article, is that excrement can be recycled for profit and that expenses such as fish lost to predators, or to kill sea lice are avoided.
There is only one fair way to compare the two approaches: charge fish farms an appropriate rent for their leases to include ALL the environmental losses. This levels the playing field and is only fair.
The market for farmed fish is there as we deplete wild stocks around the world. The trouble is that our wild stocks are not depleted by over-fishing anymore but by allowing poisoned farmed fish to mingle with the wild.
Bringing the farms on land will only happen if ocean farms are taxed their appropriate due.
On another note, no sooner had the news been out that the US was looking to be self-sufficient in energy than the bottom feeders rose as one to tell us this means we must update our mining of the tar sands and the piping of it though BC to the coast then shipping by tanker to Asia. The US will no longer need our filthy bitumen so we must redouble our efforts to bugger up the environment in BC to ship even more of the stuff down our fjords.
What ever happened to weaning ourselves off fossil fuels?
If the rapacious industry must continue to mine bitumen, send it to a refinery in Alberta. Irrespective of US capabilities, there will always be a world market for oil.
Moreover, there is an economic reality being ignored. The price of fossil fuels will reduce considerably over what we figure makes a profit. It’s an open ended market. China takes our bitumen if that’s the cheaper way to get energy, it abandons us if it’s not.
I invoke Mair’s Axiom I: “You make a serious mistake assuming that people in charge know what the hell they’re doing!”
Here we are in BC doing everything we can to press forward with LNG plants to convert natural gas to liquid to ship it to new markets while the gas prices plummet. With “fracking”, supply around the world has dramatically increased. Do we really believe that the third largest country geographically in the world, China, doesn’t have fracking capability either at home or closer than Canada? In fact, they are just getting started.
China has it both ways – it can import from us when supply is short (don’t hold your breath for that to happen) or produce it cheaper closer to home.
We are idiots.
This neatly segues into the question of the next BC budget.
Going into the May election the Liberals will want a balanced budget. One of the main factors will be, of course, income and no prize for guessing where that will come from.
You got it – natural gas. The government hasn’t a clue what that figure will be but you can bet the ranch that they will generously err on the high side.
We must all remember that in 2009 they were more than $2 BILLION short of the real numbers and they got away with it.
Desperate people do desperate things and the false card the Liberals play is that they are better stewards of the economy than are the NDP – even though the evidence is quite to the contrary.
The NDP, in the meantime, have completely lost their minds. They are, you see, going to help the Liberals prepare the next budget! This all from Adrian Dix‘s desire to make the legislature more cooperative.
(I wrote a two-part series in The Tyee, recently on how that can be accomplished and this is not the way).
Randolph Churchill (father of Winston) once said, “it’s the duty of the Opposition to oppose”, and he’s right. My series suggests how that can be done safely.
The greatest fear of any legislator is the “unforeseen consequence” of his policy. Now the NDP are going to join the process so that we will not get the value of “the other side” and the NDP will deprive themselves of any ability to question the budget in the next election because, it will be said, it was the NDP’s budget too.
I, for one, am becoming quickly disillusioned with Dix and Co. Not only are they onside with the government’s energy policy – or prepared to go easy is areas like LNG – they seem to be laid back polishing up the crown they’re sure to get next May.
This isn’t helpful for the public but also puts the NDP into a sort of “drift”. The Liberals can see that and you can bet they will be in better political shape next May than they now are, helped along by the total collapse of the Conservatives.
Mr. Dix, in politics 6 weeks is an eternity and in this old pol’s view you are looking to inherit that which you must earn.
Addicted to Oil: The Politics of Canadian Dilbit Pipelines
Not long after the Defend Our Coast rallies, a pollster phones, wanting to know whom I plan to vote for in the provincial election. The first party to unequivocally say NO to tar sands oil in pipelines and tankers through BC land and waters, I tell her.
This causes a bit of confusion, as it clearly isn’t one of the options in front of the caller. So, she asks after some hesitation, the NDP?
Given NDP leader Adrian Dix’s tough talk on Enbridge’s Northern Gateway pipeline, she might very well think so, but where is he on doubling the capacity of the Kinder Morgan pipeline into Burrard Inlet? The silence is deafening.
Does one conclude that Mr Dix has no intrinsic objection to BC enabling fossil fuel addicts around the world? Because that’s my objection to the pipeline proposals.
Yes, I’m worried – as most people in BC are – about the inevitable environmental devastation oil spills will bring. I’m also concerned about the environmental devastation extracting oil from Alberta’s tar sands has already caused.
According to federal NDP leader Thomas Mulcair, the damage isn’t just environmental, it is also economic. Back in the spring, he accused the tar sands industry of causing Dutch Disease. And, while Harper & Co spluttered their objections to Mulcair’s claim, the OECD supported his assessment.
Mind you, that was then. It seems Mulcair has had an epiphany. Apparently he has now decided tar sands oil is good for the economy – if it travels east from Alberta, not west.
With the Globe and Mail declaring the Northern Gateway pipeline all but dead and the Obama re-election making the future of the Keystone pipeline less certain, it should come as no surprise to learn – as Joyce Nelson reports at length in Watershed Sentinel – that tar sands mules Enbridge and TransCanada Corp have well-advanced plans for converting existing pipelines to transport diluted bitumen from Alberta to refineries in eastern Canada and New England.
According to Nelson, if these plans – which seem to be attracting little mainstream media attention – go ahead, “more than 1.4 million barrels per day of tar sands crude could be piped through southern Ontario and Quebec – the most populated areas of Canada.”
Which begs the question: Just how crude do Alberta’s exports need to be?
Diluted bitumen is 16 times more likely to leak than conventional crude transported in pipelines and a far greater clean up challenge when spilled, as it was, in the Kalamazoo River.
Appearing on The National recently, fossil fuel dealer Alison Redford smiled patiently and explained to the country that without pipelines through BC to enable Alberta to ship its diluted bitumen to Asia, the province will be condemned to making less than top dollar per barrel from its resources. Really?
If Redford truly wants to maximize the economic benefits from the tar sands, perhaps she should insist, as Gil McGowan, president of the Alberta Federation of Labour, has suggested, that her province’s oily gunk be upgraded to synthetic crude oil before it’s exported. (Most dealers know you get less for crack than you do for powdered cocaine.)
Neither Enbridge nor TransCanada care whether their package is diluted bitumen or synthetic crude, but everyone along their proposed pipelines should.
Although there are obvious measures we could and should be taking to aid our withdrawal from fossil fuels, as long as Hopalong Harper is in charge, investment in green energy and electric cars is likely to remain even more of a pipe dream in Canada than in many other countries. And, as beneficial as going cold turkey might be for the health of the planet, it is not a viable option.
So, here’s the deal (because apparently someone died and made me king): No new pipelines either heading west or east and henceforth tar sands companies must upgrade their bitumen before it goes anywhere. This won’t help with our fossil fuel addiction or with arresting the impacts of climate change, but at least it might reduce the immediate threat of environmental devastation.
That’s reduce, of course, not eliminate.
Mark Hume Nails Enbridge on Caribou Paper Cheat
When a clock strikes 13, you can never trust it again.
So it must be for anyone who lies about information he is using to back up a serious scientific statement upon which a great deal is at stake.
Mark Hume had an article in Sunday’s Globe and Mail BC Edition which, in a world of decent journalism, would be a headline story, titled ENBRIDGE CHEATS ON SCIENTIFIC PAPER ON THREAT TO CARIBOU.
In fact Mark does this a lot and our newspaper chiefs should blush with shame but they don’t do that very well. I leave it to you to read this superlative article but suffice it to say that Enbridge has been caught out big time and if it weren’t for Mark they would have gotten away with it.
in a 2011 paper in support of their ghastly pipeline proposal, Enbridge claimed that their project would have little or no impact on caribou.
This issue hasn’t been dealt with much but it should be.
Caribou, like deer, moose, antelope, etc., are ungulates whose main enemy is the wolf. When nature is left alone, wolves kill so many ungulates that their numbers get knocked down, whereupon the wolves, now short of food, starve, while the ungulates recover – and on it goes. Nature is cruel but has rules we break at our peril. The very last thing we should do is interfere with this cycle, which is why it’s so necessary that man’s imprint on the wilderness be as light as possible.
This is why Enbridge is getting concerned enough to put out a presentation, purporting to be based on science, demonstrating its innocence in advance. I add parenthetically, as Mark points out, Enbridge’s proposals cannot be taken in isolation of other impacts.
Enbridge clearly didn’t expect anyone to challenge their work and hung their hat on a scientific paper that simply did not exist. This gets interesting.
In a notation backing their “scientific argument”, the sort which one expects in scientific papers, they referred to “Francis et al 2002”. Hell, whoever checks these sorts of things out?
Of all the bad luck, an environmental lawyer named Chris Tollefson looked up this reference and it didn’t exist!
Ah, but Enbridge has an answer. Whoopsy Daisy, we filed an errata correcting that, and this really should have referred to “Salmo and Diversified (2003)”.
Just a silly little error we cleared up.
Except that pesky lawyer went further and found that Salmo and Diversified (2003) had based their findings on “Francis et al 2002” – the paper that didn’t exist!
Well, you surely ask, “Francis (2002)” must have been something.
Indeed it was. It referred to a power point presentation made by an independent ecologist who had nothing to do with Enbridge to a wildlife conference about, get this, Yukon Caribou!
One expects corporations to hire, shall we say, friendly scientists. In the Kemano Completion case some years ago, Alcan’s entire case was based upon reports from an engineering firm which was nothing more nor less than Alcan’s poodle.
What you don’t expect, God Damn it, is outright deceit!
Propositions you don’t agree with, questionable scientific propositions with, yes. Deceit, no.
Enbridge takes environmental matters so lightly that it expects to be able to publish whatever crap it wants and no one will bother to check them out.
A nosy lawyer and a journalist with the guts to print and we know what we’ve always suspected of this company, better known for its disgraceful environmental disasters than its pipelines.
Now, about that clock that struck 13…