Jilted band, company want compensation

But environment minister just says: See you in court

Michael Smyth
The Province
Tuesday, May 27, 2008

In late March, the Gordon Campbell government effectively killed the proposed Upper Pitt River hydro project, reaping the praise of environmental groups. [See BC government rejects Pitt power project]

But now they're reaping the whirlwind: A local First Nation that stood to profit from the $350-million project is suing the government for breach of process, while the private company that planned to build it is threatening to do the same.

Delta-based Run of River Power Inc. first proposed the 180-megawatt project on the Upper Pitt, confident Campbell's new enthusiasm for zero-emission hydro-electricity would seal the deal.

But as opposition to the plan ramped up, the company began to worry -- quite rightly, it turned out -- that the government would get cold feet.

"I am concerned that organized groups and agitators are attempting to hijack the process," company president Jako Krushnisky wrote to Campbell on March 3.

"In the middle of an attack -- which is what we are all under -- you do not back down," he implored. "You stand up. You stand up when standing up is the toughest thing to do."

But that's not what the government had in mind. Public opposition to the project hit a fevered pitch on March 25, when over 1,000 protesters packed a public meeting in Pitt Meadows.

That morning, Krushnisky faxed a letter to Campbell alleging B.C. Parks staff had given advance notice of the meeting to opponents identified as "unions, the B.C. New Democratic Party and other disgruntled organizations."

The next day, Environment Minister Barry Penner announced he would not change the boundaries of Pinecone Burke Provincial Park to allow power lines to pass through, effectively killing the project. The company, and the local Katzie First Nation, were furious.

"We are the rightful decision-makers when it comes to our land and its resources," the First Nation said yesterday.

In a May 2 letter to Campbell, Katzie Chief Mike Leon said the First Nation has lost $400,000 in annual royalties as well as jobs, training, student scholarships and an equity position in the project promised by the company.

"We want the province to resume its review of the park boundary process in a way that properly respects our rights and interests," Leon wrote. "Failing that, we demand compensation."

The company is also threatening to unleash its lawyers, saying Penner unfairly jumped into the park-boundary review before it was completed.

"This is contrary to the law," Krushnisky wrote to Campbell on May 9.

Then to Campbell again on May 16: "Mr. Penner's approach seems to be designed for us all to end up in court. Premier, I am seeking to resolve this on an amicable basis. Accordingly, I look forward to meeting with you."

But Penner, a lawyer himself, fired off a return salvo to Krushnisky that amounted to: See you in court.

What a fine mess this is! The lawyers are loving it. Taxpayers, stuck with the legal bills, will pay the price of a bungled project.

© The Vancouver Province 2008