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New and Recent Items

Electricity rates could soar, Lewis, Province, Jan 27, 2001
Through The Roof, Hertzog, Monday, Jan 25-31, 2001
US energy initiatives threaten electricity in BC, Cohen, Sun, Jan 23, 2001
Smelter Raises More Pipeline Questions, Hertzog, Monday, Nov 23-29, 2000
High Pressure, Explosive Contents, Hertzog, Monday, Nov 9-15, 2000
Plant generates pollution dispute, Curtis, Times-Colonist, Oct 31, 2000
NDP allowing far `dirtier' plant than Sumas, Spencer, Province, Oct 26, 2000
No reason to trust Island cogen plans, Willcocks, Pictorial, Oct 22, 2000
Residents call pipeline offer a bribe, McLarty, Pictorial, Oct 15, 2000
Opposition scares away Hydro gas plant, Costa, Citizen, Sept 24, 2000
Hydro likes independent review idea, Citizen, Sept 24, 2000
Long lines form at forum to trash Hydro's plans, Costa, Citizen, Sept 24, 2000
Hydro Considers Panel Review, Mclarty, Pictorial, Sept 24, 2000
Site Attracts Regulators, Smith, Georgia Straight, Sept 14, 2000
Abbotsford Residents Fear Project, Mark Wilson, The Province, Sept 15, 2000
Secretive Policies Apt To Ignite More Protest, Nagle, The Sun, Sept 11, 2000
Politicos Blast Arrogant BC Hydro, Smith, Monday, Sept 7, 2000

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THE PROVINCE

Valley chokes on power plant
Abbotsford residents fear Sumas project destined to supply California needs will make pollution even worse Mark Wilson The Province

David Clark, The Province / Protesters at Sumas border crossing yesterday object to proposed gas-fired power plant in Washington state.

The lungs of people living in Abbotsford are already stressed and respiratory disease rates are predicted to soar if a giant gas-fired power plant is built at Sumas, Wash.

Speaker after speaker at yesterday's protest at the Sumas border crossing slammed the plant and the pollution it will spew into the lower Fraser Valley, already one of the worst regions in Canada for air quality.

The proposed 660 mW plant is intended to produce power for the spot market in California. It will burn Canadian gas and switch to standby diesel fuel when gas supplies are tight.

A crowd numbering in the hundreds jeered at the mention of federal Environment Minister David Anderson, who local Alliance MP Chuck Strahl said should be fighting the power project but has yet to draw his sword.

Whatcom County Coun. Connie Hoag told protesters the plant will pump three tonnes of pollutants, including arsenic and ammonia, into the atmosphere each day.

"Hospital rates for respiratory cases in Abbotsford and Chilliwack are already higher than in the rest of the lower Fraser Valley and air quality in the two communities is worse than in the rest of the valley," Hoag said. "The scientific evidence that bad air causes heart and lung disease is conclusive."

If California wants more power, it should host the plants to produce it, she said, but no new power plant has been built there in a decade.

Whatcom County already produces five times more power than it consumes and Washington state is a net exporter of power. Neither Washington state nor B.C. need to be gassed with fumes from a power plant that will produce as much pollution as 141,700 cars, Hoag said.

"Everything about this plant is bad," she said.

Barry Penner, the Liberal MLA for Chilliwack, said hospital admission rates for respiratory complaints in his community are 39 per cent above Vancouver levels.

Airborne fine particulates in Chilliwack are above a trigger level for causing lung-tissue damage, Penner said. If the Sumas plant goes ahead, Chilliwack residents will be breathing air that is 73 per cent into the danger zone.

Penner said the province should investigate whether B.C. Hydro has any legal obligation to connect to the Sumas plant in order to give it access to a trans-border power grid.

Robert Loch, who on retirement moved from Los Angeles to Custer, Wash., said he has had his fill of smog, but fears more may be coming his way if the plant is built 24 kilometres from his home.

PLUGGED INTO CALIFORNIA

Deregulation of the energy industry in California has made utilities nervous about building new power plants. And even if there were the will to invest, the environmental hurdles might prove stifling.

This is the situation the $400-million US Sumas Energy 2 plant is designed to exploit. It would be a factory for electricity, sitting on the Canadian border, that will help keep air conditioners in California humming.

The plant will burn enough gas to fuel more than half of the homes in Washington state and pump out power sufficient to meet two-thirds of the electricity needs of Seattle. Besides jetting three tonnes of toxins into the atmosphere a day, it will use 4.5 million litres of water every 24 hours.

Mark Wilson, The Province, September 15, 2000

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NDP allowing far `dirtier' plant than Sumas Oct 26, 2000
A power plant in Campbell River will emit 10 times as much carbon monoxide as one proposed for Sumas, Wash.. more

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Electricity rates could soar

There's a growing concern among B.C. energy experts that domestic ratepayers could be held up for ransom within the next few years. They could be forced to pay very high prices for electricity that will need to be imported, or will be produced domestically from generation plants fed by highly priced natural gas.
Brian Lewis warns the people of BC that we could be headed for trouble ....more

Brian Lewis, The Province, January 27, 2001
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THE VANCOUVER SUN

Secretive energy policies apt to ignite more protests

Natural gas exploration provides easy money for the B.C. government, but after the Sumas fiasco it should be upfront about plans for pipelines.
Patrick Nagle Vancouver Sun

VICTORIA - There is an entirely unwholesome miasma of secrecy surrounding current activities in British Columbia's energy industry. Because significant amounts of money are involved, the provincial government would do all citizens a great service if they would open this subject to better scrutiny.

To begin, there is the cost of energy products to the consumer. The province benefits equally with the energy companies from rising prices. The tax and royalty share of energy sales is a significant contributor to the recent noisy claims about a provincial budget surplus.

Available numbers from the provincial energy department give a shadowy outline of the sector's growth. In the past 12 months, sale of exploration permits in the prolific natural gas fields of northeastern B.C. have increased to $137 million from $92 million.

While those actual numbers are trivial in a provincial budget exceeding $20 billion, the 48-per-cent trend of the rise is significant and will certainly be further increased when the next lease sale opens on Sept. 20.

Behind this easy money is a series of unanswered questions. Most of them are related to the parallel growth of interest in pipeline construction and the eventual use of the pipeline output inside and outside B.C.

These are questions of the future, not of the present. Today, the export sale of natural gas far exceeds its domestic consumption. This was one of the outcomes of the free trade agreement with the United States -- the lifting of all restrictions on energy exports. In the short term, the U.S. appears agreeable to buying every available gigajoule of natural gas the Great White North can produce.

The question here is: How long will the party last? Increased pipeline capacity to Chicago raises the future price of natural gas because buyers are still uncertain whether the new Alliance pipeline can be filled. Behind this concern is expert opinion that the new gas fields are shallow wells that will expire in less that 10 years.

And finding enough new reserves to feed the export dragon is only part of the problem. Within B.C. there is now an apprehended demand for natural gas to fuel thermal electricity plants. B.C. Hydro, for one, is co-sponsor of a pipeline proposal beneath Georgia Strait from the U.S., then north to a land terminal on Vancouver Island.

Centra Gas, a subsidiary of Westcoast Transmission, has another, smaller proposal on the table to build a natural gas supply line from Victoria to Sooke. The line is intended to run under at least part of a regional park and hiking trail.

To say that either of these projects has made available a vast amount of public information on the utility of their construction would be a laughable mendacity. In fact, the proponents of both pipelines have, so far, been far less than forthcoming about what the dickens they are really doing.

In this regard, the provincial government could really help by moving clearly into the picture.

The buffoonish comedy about lack of concern for local issues that characterized the government's handling of the Sumas pipeline and gas-fired electricity plant in Washington state should not have to be replayed on Vancouver Island and in the Gulf of Georgia. The potential for another political firestorm of citizen protest should be evident even to the meanest intellect on the government bench.

One of the certain protest targets will be B.C. Hydro. Despite its clear ties to the provincial government as a Crown corporation, the company has a significant history of ignoring the proprietors in the name of corporate efficiency.

For example, the province now says it has an interest in the outcome of the decision on the Sumas natural gas project. If that is so, the government must take into account the Hydro statement that the Sumas project is part of a package involving the Georgia Strait crossing and two gas-fired thermal electric plants on Vancouver Island.

Notwithstanding current complaints about gasoline prices at the pump, the future of natural gas production and consumption in B.C. is far more important. The government can truly do nothing about the price of a commodity controlled by an international cartel.

By contrast, Victoria controls completely the means of production and delivery of natural gas within the province. And this is where every British Columbian's real interests lie.

patrick_nagle@bc.sympatico.ca

Patrick Nagle's column appears weekly.


Comments about this article? Send an e-mail to the writer.
Patrick Nagle, The Vancouver Sun, September 11, 2000

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US energy initiatives threaten price and supply of electricity in BC

BC Hydro would no longer have exclusive use of its major assets, but would have to allow private, foreign providers access to them.  Marjorie Griffin Cohen argues that the BC and federal government need to protect citizens and industries from US-style deregulation ....more

Marjorie Griffin Cohen, The Vancouver Sun, January 23, 2001

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MONDAY MAGAZINE

Politicos blast "arrogant" BC Hydro over Strait pipeline

POLITICIANS and a former president of the Canadian Petroleum Association have joined south coast residents in criticizing the lack of information about BC Hydro's plan to build a natural gas pipeline across the Strait of Georgia.

By the August 28 deadline, the National Energy Board had received more than 300 letters commenting on the proposal, says energy board spokesman Ross Hicks.

"It's certainly a very good expression of local interest," says Hicks.

BC Hydro and its U.S. joint-venture partner, Williams Gas Pipeline Company, have yet to file a formal application for the $180 million Georgia Strait Crossing Pipeline Project, which would ship gas from northeast B.C. via Sumas, Washington.

But Hicks says the proponents made a preliminary submission last spring and asked the energy board to begin the environmental assessment process.

Senator Pat Carney, a former energy minister, in the Mulroney government, has written environment minister David Anderson demanding a joint environmental assessment review panel, which could hold public hearings and compel witnesses to testify under oath.

Cowichan Valley Regional District director Richard Hughes complained in an August 27 letter to Anderson that the chosen route places the pipeline's landing spot near a Chevron gas-tank farm not far from a densely populated retirement community.

"The Safety concerns that stem from location of the pipeline is not something that Cobble Hill residents are ambivalent about" wrote Hughes.

In an interview, Hughes said: "Nobody trusts BC Hydro and the arrogant, condescending manner that they have dealt with us."

BC Hydro spokesman Ted Olynyk says the pipeline is necessary to meet growing demand for electricity on Vancouver Island. The natural gas will be used to generate power at two co-generation plants, one in Pbrt Alberni and one in Campbell River.

He adds that the Crown corporation has held three consultation meetings in the Cowichan Valley, and an open house last March.

"If a community is dead-set against having something in there, and environmental reasons tell us we can't have it in there, then we wouldn't even consider it," says Olynyk, adding that the existing electrical cable is nearing the end of its life.

But Saturna Island residents Susie Washington Smyth and her husband, Ian Smyth, a former president of the Canadian Petroleum Association, told the energy board in a joint submission that BC Hydro has declined to provide any cost-benefit analysis to show that a natural gas pipeline is cheaper than a new elec trical cable as a way of providing more electricity to Vancouver Island.

_ "On the basis of the information provided we calculate the cost of $334 million for the underground cable plus an undisclosed amount for some kind of facility on Vancouver Island versus $680 million to build the gas pipeline and two cogen plants on Vancouver island," they wrote in their submission.

A community website (www.sqwalk.com) lists a number of residents' concerns, including the safety of natural gas pipelines in an earthquake zone, the potential impact on the marine environment, BC Hydro's emphasis on promoting natural gas-fired generation plants on Vancouver Island and the way BC Hydro has conducted public consultations.

The website says that the U.S. Office of Pipeline Safety has recorded 3,116 pipeline "incidents", which have killed 309 people and injured 1,398 from 1986 until June 30, 2000.

Charlie Smith, Monday Magazine, Victoria, Sept 7-13, 2000


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High Pressure, Explosive Contents:

BC Hydro wants to build a gas pipeline across the Strait of Georgia to generate electricity on Vancouver Island.  It forgot to account for global warming, skyrocketing gas prices, and angry residents.  more  

Stuart Hertzog, Monday Magazine, Victoria, Nov 9-15, 2000

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Smelter Raises More Pipeline Questions

They say good things come in threes, but the reverse can also ring true. In the past several weeks, three developments have emerged that could spell trouble for the GSX .  more  

Stuart Hertzog, Monday Magazine, Victoria, Nov 23-29, 2000

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Through The Roof

B.C. has an abundance of natural gas.  So why do we pay so much for it?  Stuart Hertzog investigates natural gas markets, and the implications for BC energy policy under a Liberal government ....more

Stuart Hertzog, Monday Magazine, Victoria, Jan 25-31, 2001

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THE GEORGIA STRAIGHT

SITE ATTRACTS REGULATORS

Two weeks ago, the Straight reported that opponents of a planned natural gas pipeline to Vancouver Island are sharing information at the Web site www.sqwalk.com, which was created by Cobble Hill resident Arthur Caldicott. Since then, the site has attracted the interest of companies in favour of the pipeline and government regulators.

In a recent e-mail message to the Straight, Caldicott noted that individuals from BC Gas, B.C. Hydro, Westcoast Energy, and Williams Gas Pipeline Company all contacted his site on September 8. B.C. Hydro and Williams have filed a joint preliminary submission to the National Energy Board in advance of a formal application to proceed with the Georgia Strait Crossing Pipeline Project (GSX). If the pipeline is approved, it will connect to the Westcoast Energy pipeline at Sumas and ship natural gas from northern B.C. across the Strait of Georgia to Vancouver Island.

Caldicott also wrote in his e-mail message that individuals in the provincial Environmental Assessment Office, Environment Canada, and the National Energy Board also logged on to the site on September 8: "We started logging to see if Hydro and Williams were visiting the site," Caldicott wrote, "[and] didn't really expect to reap all the agencies involved in the GSX in a single day."

He added that it is "frustrating" that they all have time to keep tabs on the Web site but don't appear to have time to reply to many questions about the pipeline.

Charlie Smith, The Georgia Straight, September 14-21, 2000

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THE CITIZEN, Duncan

Opposition scares away Hydro gas plant

It's highly unlikely that BC Hydro will build a third gas-fired electricity generating plant in the Duncan area, says one of the Crown corporation's vice presidents. One cogeneration plant is under construction and near completion in Campbell River, while a second is slated to be operational in Port Alberni by 2003. Both will be fed with natural gas brought to the Island by the Georgia Strait Crossing (GSX) pipeline project, which is penciled in to come ashore near Cobble Hill.

Hydro's Integrated Electricity Plan suggests a third gas plant might be necessary to meet the Island's energy needs by 2007 and lists Central Vancouver Island as the preferred location.

While Hydro vice-president Shawn Thomas said the company's forecasts have indicated the Cowichan Valley would be the preferred location for the plant, he added that the company won't force a massive cogeneration plant on a community that doesn't want it.

"I don't think Hydro will ever be successful in building a plant in Duncan," Thomas said. "In Campbell River and Port Alberni, those two communities overwhelmingly supported and wanted those plants."

The Valley would be the ideal place for a third plant because it could be built in close proximity to existing pipeline connection points.

Hydro also owns property adjacent to its sub-station off Norcross Road where a plant could be constructed.

"The company is obligated to forecast where we would put it and what would make the most sense," he said. "But when we move forward the social, environmental and economic issues also have to be considered and that changes things - operating issues can change the financial benefit."

North Cowichan Mayor Rex Hollett said he hasn't heard any opposition to a gas plant coming from people within his municipality, however, and that Hydro has yet to contact North Cowichan about the possibility of constructing a cogeneration plant.

"We're open for business and it's certainly something we'd be interested in, subject to scrutiny and environmental concerns, of course," Hollett said.

"It would probably bring a lot of tax money into the municipality and jobs to the region."

The opposition Thomas referred to is likely coming from Cobble Hill residents opposed to the pipeline project and not necessarily the residents of North Cowichan, Hollet said.

Thomas said that general opposition to a gas plant in the Cowichan Valley as a whole could be enough to dissuade Hydro from building a plant in North Cowichan, however.

"Hydro won't say `here's your plant, tough'," he said. " We have to locate our infrastructure in a place that best meets all the tests and that very well might not be the Duncan area."

Andrew Costa, The Citizen, Duncan, September 24, 2000

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Hydro likes independent review idea

BC Hydro says it's not necessarily opposed to an independent review of it gas pipeline project.

The Crown corporation's vice president, Shawn Thomas, said Wednesday he thought pipeline opponent Dodie Miller and regional director Richard Hughes both made a good case for an independent panel review.

"Hydro's position is not to advocate an independent panel review," he said. "But I'm impressed with the arguments I've heard for it tonight."

Thomas said he met with BC Hydro CEO Mike Costello Friday and raised the issue of public demand for a review.

"We discussed the time lines, impacts, and all the pros and cons of our advocating an independent panel review," he said. "He gave me the green light to follow up with our legal counsel and the project team with a view to answering whether we can advocate an IPR."

Thomas said he hopes to come to a decision about whether or not BC Hydro can advocate an independent panel review by the end of next week.

Although Hydro has no power to initiate an independent review, Thomas said, federal Environment Minister David Anderson would be more likely to mandate one if the utility told him it was a good idea.

The Citizen, Duncan, September 24, 2000

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Long lines form at forum to trash Hydro's plans

Cowichan Valley residents had another chance to voice their displeasure with BC Hydro's proposed Georgia Strait Crossing (GSX) pipeline project at a public forum in Mill Bay Wednesday night.

Roughly 150 people turned up for an open house and information session at Kerry Park Recreation Centre. Once again, in no uncertain terms, residents stated emphatically that they don't want the natural gas pipeline built in their neighbourhood.

BC Hydro personnel say the pipeline is needed to feed natural gas to new, private sector-operated electricity generating plants being constructed on the Island. The plants are necessary, they say, to meet increasing demands for energy on the Island and to replace electricity currently provided by underwater cables from the Mainland that are nearing the end of their service life.

Although the cables could be repaired or replaced, Hydro says it's much cheaper to build the pipeline.

The cost of the pipeline is estimated at $180 million, while Hydro maintains it would cost $230 million to fix the cables.

"We're legally obligated to provide consumers with electricity at the lowest possible cost," said Hydro resource manager Kelly Lail.

But residents said they'd be willing to put up with the extra costs of fixing the underwater transmission lines.

"If you need new cables, put them in," said Duncan resident Art Degraaf. "The price isn't important."

Degraaf, who spoke passionately at the beginning of a lengthy question period, also railed against Hydro for routing the pipeline through the United States and partnering with the American firm Williams Pipeline Inc. in the project's construction and operation.

"We're Canadians, we've got our own gas," Degraaf yelled. "We don't need the Americans to bring it to us. I like Americans, as long as they come and buy our stuff," he said.

A long line of people waited their turn to take the microphone and express concerns about pipeline safety, pollution caused by carbon dioxide emissions from gas plants, and the need for Hydro to focus more on alternative energy sources.

Anti-pipeline activist Dodie Miller and Cobble Hill CVRD director Richard Hughes both called for an independent panel review of the project.

"We (the CVRD) have been listening to the people and it's very clear what the people are saying," Hughes said.

"We've asked for the NEB (National Energy Board) to allow for a proper independent panel review which is absolutely essential.

Miller circulated a petition to be sent to federal Environment Minister David Anderson demanding that he mandate an independent panel review.

Hydro will soon submit an application to build the pipeline to the NEB, after which the utility is required to file a comprehensive study report on the project based on criteria outlined by the NEB.

Andrew Costa, The Citizen, Duncan, September 24, 2000

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PICTORIAL and NEWS LEADER, Duncan

Hydro Considers Panel Review

PUBLIC COMMITMENT: BC Hydro senior vice-president vows to suggest a federal panel review of the Georgia Strait Crossing Project

B.C. Hydro executives may recommend an independent panel review of their Georgia Strait Crossing Project, after meeting with angered Cobble Hill residents at the Kerry Park Recreation Centre Wednesday.

Senior vice-president Shawn Thomas promised he'd pitch the idea to B.C. Hydro's board of directors, including the Crown corporation's president and chief executive officer.

"I'll be on the phone with Mike Costello first thing tomorrow," Thomas told the crowd, adding the recommendation would only pass if it ultimately benefited the power company.

But he did say, as a private citizen, he understood the merits of an independent project analysis, and would convey that personal opinion to his colleagues.

"I have my beliefs, I take them to the company and I do the best I can."

Currently, B.C. Hydro is only required to submit a comprehenssive study report on its natural gas pipeline proposal to the National Energy Board, based on the NEB's criteria.

By comparison, an independent panel review would be established by federal Environment Minister David Anderson, and be composed of members appointed by his ministry.

Opponents of the natural gas pipeline contend an independent review is a more thorough, all-encompassing and transparent process that provides better opportunities for input from concerned citizens.

A petition requesting the change is currently circulating in the south end and will be submitted to Anderson this month.

But the latest commitment from B.C. Hydro didn't stop continued questions as to the need for a natural gas pipeline to Vancouver Island.

A growing number of area residents are wary of Hydro's prediction that three cogeneration plants are needed in the next 10 years in order to meet the Island's power needs.

They maintain the facilities planned for Campbell River, Port Alberni and possibly Duncan - would be leading population growth and development not reacting to it, and would fly in the face of Canada's international commitments to reduce green house gas emissions.

Their solution is a concerted effort to perfect complementary green technologies, such as solar and wind power, and to hang onto surplus energy produced or bought by B.C. Hydro.

"We want that clean energy, we don't want it shipped to California," said Cobble Hill Director Richard Hughes.

According to B.C. Hydro, the need for a natural gas pipeline is based on population and economic development forecasts from a variety of private and public agencies.

The Crown corporation has also widely advertised the crossing project is required to replace aging transmission cables from the mainland option managers say is far cheaper than rebuilding the existing system.

As for alternative energy sources, Thomas indicated they won't replace options like natural gas until new technology is able to meet Vancouver Island's power load, and it becomes more cost-effective and market-wise than natural gas.

"We have a legal obligation in our legislation to meet the electricity demand in B.C.," said Thomas, adding that can't be achieved with wind or sun today.

Kelly Lail, manager of resource management, also told the crowd B.C. Hydro doesn't sell clean hydro electricity to the United States. Instead, it purchases mostly coal-generated power from Alberta when it's cheap at night, and sells it on the American market for a profit.

Cobble Hill residents indicated Wednesday they'll continue to battle the joint B.C. Hydro/Williams Gas pipeline project. They're also pushing the NEB to include the three planned cogeneration plants in its environmental assessment of the marine pipeline.

If it doesn't, Island environmental groups say they're poised to head to court.

The proposed natural gas pipeline would originate in Sumas, Washington, cross Georgia Strait, and come ashore at Hatch Point. It would then travel 15-kilometres through Cobble Hill to an existing Centra Gas line west of Shawnigan Lake.

Jennifer McLarty, The Pictorial, September 24, 2000

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Residents call pipeline offer a bribe

SWEETEN THE POT: B.C. Hydro won't comment on suggestions they've offered signing bonuses to affected property owners...more

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No reason to trust Island cogen plans Oct 22, 2000
Based on the Campbell River cogen example, neither BC Hydro nor the government has earned the right to the public's trust. Paul Willcocks reports on Island Cogen and lax pollution controls... more

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TIMES-COLONIST

Plant generates pollution dispute
Island power project billed as state-of-the-art draws criticism for high carbon monoxide levels
It was supposed to be the latest technology, but the Island Cogeneration Project near Campbell River is turning out to be an environmental embarrassment. article

Malcolm Curtis, Times Colonist, Victoria, Oct 31, 2000

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