bc2008

B.C.'s natural gas riches ensure a bright future despite energy woes

Editorial
Vancouver Sun
May 31, 2008

It's hard to find good news stories about energy during these days of the $100 fill-up, peak oil panic and carbon taxes. But here's a tale of buried treasure in British Columbia's backyard.

Exploration in the remote northeast region of the province has revealed vast reserves of natural gas -- more than enough to make B.C. self-sufficient for decades. Production and investment could double or triple in the next five to 10 years, says EnCana, Canada's largest energy company and a pioneer in opening up the area where many players are now bidding for rights to drill and develop the land. Companies scrambling for a piece of the action include Talisman, Apache, Devon, Canadian Natural Resources, Quicksilver, Suncor and Husky -- even ExxonMobile has staked a claim.

EnCana executives told The Vancouver Sun editorial board this week that B.C. can become a real powerhouse in North American natural gas. Two key plays are Cutbank Ridge, from which EnCana produced 234 million cubic feet a day in 2007; and Greater Sierra at the northern extremity of the province near Fort Nelson, which yielded 211 million cubic feet a day. Estimates of reserves in the Horn River Basin area of Greater Sierra alone exceed 50 trillion cubic feet.

The gas rush has driven land prices from as little as $800 a hectare when EnCana first scouted the area five years ago to $25,000 a hectare today. The auction for leases in the region this month set a record of $441 million.

This money goes directly into the B.C. treasury. That's on top of the $1.2 billion in revenue the provincial government has budgeted from natural gas royalties.

With the forest industry moribund, oil and gas is the largest commercial contributor to government coffers. Fortunately, the Liberal government seems well aware of the industry's importance and has resisted opposition calls to terminate successful programs, such as the net profit royalty program, which recognizes that development of unconventional resources has higher operating costs and expensive technology, and infrastructure programs that ensure access to these remote regions.

In fact, EnCana said the government has, by and large, put in place the right policies to maintain a vibrant industry. Even the regulator, the Oil and Gas Commission, wins praise for efficiency -- something of an irony since it was established by a New Democratic Party government, and remains one of few NDP initiatives the Liberals didn't expunge.

B.C.'s natural gas industry is vital not only to provide government with revenue, but to guarantee energy security. With nuclear power still in the distant future, coal-fired energy relegated to the past and conventional oil becoming increasingly uncertain, natural gas gives us assurance that there will be light, heat and fuel far into the future.

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

Site C Consultations - June 2008

June 2008
Open House Notice for the Peace River Site C Hydro Project

BC Hydro is inviting communities, stakeholders and the public to participate in Project Definition Consultation for the potential Peace River Site C Hydro Project. Site C is one of several options available to help meet BC’s future electricity needs.

Project Definition Consultation is being undertaken in two rounds – the first in May/June and the second in the Fall of 2008. Feedback gathered through this consultation will be used, along with technical and environmental information, to help update the potential project’s design and definition.

As part of Project Definition Consultation, we would like to invite communities, stakeholders and the public to attend Open Houses.

You can provide feedback and learn more by:

- Attending Open Houses

- Accessing Online consultation discussion guide and feedback form: www.bchydro.com/sitec

- Written submissions: sitec@bchydro.com or PO Box 2218, Vancouver, BC, V6B 3W2

- Visiting the Community Consultation Office:
9948 100th Ave, Fort St. John

- Toll-free phone: 1-877-217-0777

- Fax: 604 623-4332 or 250 785-3570

No GHGs or tankers from Texada LNG: Powell River Regional District

zero greenhouse gas emissions ... from new gas-fired electricity generation stations

implement a ban on LNG tankers ... in Malaspina and Georgia Straits

The following resolution was adopted by the Powell River Regional District Board, May 22, 2008.

WHEREAS the Board of the Powell River Regional District supports the objectives of the BC Energy Plan of the Government of British Columbia which states:

1. Achieving electricity self-sufficiency is fundamental to our future energy security and that BC shall achieve electricity self-sufficiency by 2016.

2. For existing an new electricity plants the government will set policy around reaching zero net emissions through carbon offsets from other activities in British Columbia.

3. The government is committed to ensuring that British Columbia's electricity sector remains one of the cleanest in the world and that the province will require zero greenhouse gas emissions from any coal thermal electricity facilities which can be met through capture and sequestration technology.

AND WHEREAS WestPac LNG is soliciting interest to build an LNG import facility and and associated 600MW gas-fired electricity generating plant on Texada Island, the emissions from which could negatively impact the environment throughout the Powell River Regional District and beyond;

AND WHEREAS WestPac LNG's plans will involve the passage of a significant number of LNG tankers in the Georgia Strait, which will interfere with existing commercial and recreational marine traffic, put at risk these ecologically important and sensitive inland waters, and negatively impact upland development along this route;

THEREFORE BE IT RESOLVED that, consistent with the Province's goal of energy self-sufficiency and clean power, the Board of the Powell River Regional District urge the Provincial government, as part of achieving the BC Energy Plan, to zero greenhouse gas emissions from new gas-fired electricity generation stations and to support a federal government ban on the passage of LNG tankers in the waters of the Malaspina and Georgia Straits;

AND FURTHER that the Regional Board request the federal government to implement a ban on LNG tanker as indicated above.

AND FURTHER that the Regional Board seek support for these initiatives from other Vancouver Island and mainland communities potentially impacted by WestPac LNG import plans.