bc2008

New undersea cable supplies Island electricity

COMMENT: In 2000, BC Hydro said it was going to replace aging transmission infrastructure with the GSX, a natural gas pipeline to the island, and with new gas-fired generation plants on the island. Importing natural gas, said Hydro and its government sponsors, would increase energy self-sufficiency on the island.

Replace the cables, said the GSX Concerned Citizens Coalition. Five years later, in 2005, BC Hydro cancelled the pipeline project, the Duke Point Power project, wrote down $125 million, and turned its attention to replacing the cables.

For other community and citizen groups, two lessons learned:

- the emperor frequently is wearing no clothes. Trust your research and your understanding and your instincts, and don't let them bluff.

- your campaign will last a lot longer than you expect, so you must also ensure you build the organizational capacity and resources to sustain the campaign.

By Andrew A. Duffy
Times-Colonist
December 31, 2008

A $298-million project was completed and brought up to full power last week

That pleasant hum you hear is no longer just the echo of Christmas carols, but the electricity being sent to Vancouver Island through new undersea transmission lines.

The Vancouver Island Transmission Project, known as VITR, was undertaken to replace 51-year-old power lines that link the Island to the mainland electricity grid.

The project was completed and brought up to full power by the B.C. Transmission Corp. last week.

The $298-million project -- a number forecast to be about 15 per cent more expensive than originally expected due to increased construction costs --replaced and upgraded the existing 138-kilovolt overhead transmission lines and one of the existing submarine cable circuits connecting southern Vancouver Island to the Lower Mainland with new 230 kV infrastructure.

The replacement of the undersea lines, which provide more than 10 per cent of the electricity to the Island, increases the capacity to the Island by 600 megawatts of power or about 25 per cent of the peak load.

According to B.C. Hydro, Vancouver Island consumes about 2,100 megawatts of power at any given time, while the Island has the capacity to produce only 690 megawatts -- enough to power 690,000 homes.

As on-Island generation makes up about 30 per cent of the peak load, the Island is heavily reliant on the cable system -- especially because the need is projected to increase by nearly 50 per cent by 2025.

The VITR was brought into service in stages, as BCTC began by energizing mainland sections of the VITR overhead lines and associated submarine cables back in October.

The old cables were removed from the seabed in the fall of 2007 and were replaced in the summer and fall of 2008.

The removal of the cable resulted in the recycling of more than 450,000 kilograms of copper from the cable, which garnered the British Columbia Transmission Corp. about $4 million.

aduffy@tc.canwest.com

© Copyright (c) The Victoria Times Colonist

Clean Energy Coalition Applauds Bursting of LNG Bubble

COMMENT: In North America today drilling in shales (Texas, North Dakota, northeast BC) is opening up a large new natural gas supply. Industry and government exuberance is probably overstated, so predictions about US gas import declines to only 3% of US consumption are to be taken in the context of this being the consummate boom and bust industry. Nevertheless, the opportunities for LNG imports to North America are correctly understood as not worth a wooden nickel today.

The Texada Island community group opposing the proposal to build an LNG import terminal on Texada, Texada Action Now (TAN), is a member of RACE, Ratepayers for Affordable Clean Energy. TAN is also a founding member ot the Alliance to Stop LNG.

www.texadaactionnow.org
www.texadalng.com

For Immediate release: December 22, 2008

San Francisco, CA – New energy projections from Federal and California agencies show the LNG speculative bubble is over, according to a West Coast-wide coalition of organizations opposing dependence on foreign Liquefied Natural Gas (LNG).

The coalition, Ratepayers for Affordable Clean Energy (RACE), is responding to two new government reports. According to the U.S. Energy Information Administration, natural gas imports will decline rapidly from 16 percent today to only 3 percent in 2030. The difference will be made up in increased domestic natural gas production. According to a staff presentation from the California Public Utilities and Energy Commissions, California’s natural gas demand will remain flat until 2030, while the one LNG import terminal serving California, located in Mexico, will not receive “significant deliveries.”

"These projections make clear that the West Coast does not need LNG,” said Rory Cox, California Program Director at Pacific Environment and coordinator for RACE. “LNG was an inappropriate choice to begin with, and it remains so. We’re ready to put this debate behind us, and join the new Administration in building a truly clean and sustainable energy future.”

“What a difference a year makes,” said Dan Serres, conservation director at Columbia Riverkeeper. “These new projections are a game changer. LNG is now off the table as a wise investment choice. The current LNG proposals are now just moving forward under nothing but their own momentum.”

Since 2004, RACE has opposed LNG as it will increase California’s contribution to greenhouse gases, undercut development of clean energy, and endanger the health and safety of West Coast communities. The coalition has maintained that despite the media and investment hype, imported LNG has never been necessary on the West Coast of North America. The coalition’s conclusions were based on trends in the domestic natural gas industry, on steadily declining natural gas consumption in California since 2000, and on new laws and initiatives in California such as mandated energy efficiency programs, the renewable portfolio standard, and the Global Warming Solutions Act (AB32). RACE has also pointed out that natural gas demand in Baja and the Pacific Northwest is quite small, making it clear that these regions were being used as “back doors” into California’s energy market.

The 2009 Annual Energy Outlook from the U.S. Department of Energy is here: http://www.eia.doe.gov/oiaf/aeo/index.html

A copy of the presentation from the California Public Utilities and Energy Commissions detailing new projections for natural gas usage in California are available by request at rcox@pacificenvironment.org or dserres@gmail.com.

More information about RACE: www.RaceForCleanEnergy.org

###

Contact:
Rory Cox, California Program Director, Pacific Environment. (510) 459-0933
Dan Serres, Columbia Riverkeeper, (503) 890-2441
Tom Ford, Executive Director, Santa Monica Baykeeper, (310) 738-6915
Jody McCaffree, Executive Director, Citizens Against LNG (Coos Bay), (541) 756-0759

Neufeld Accepts Senate Seat

COMMENT: Harper's 18 senate appointments are rewards to his bagpeople and other loyal supporters before he loses the opportunity. This from from the politician who is a firm believer in an elected senate. Sheesh. There's no reason to expect this to signal a change in government energy or mining policy, although it may be an opportunity to put a prettier face on the ministry.

By 250 News, Prince George
Monday, December 22, 2008

FORT ST. JOHN - Peace River North MLA Richard Neufeld, who also serves as Minister of Energy, Mines and Petroleum Resources, announced today he has accepted a position in the Senate of Canada.

"I have been privileged to serve the constituents of this riding for the last 18 years and I want to thank them for their support," Neufeld said from his home in Fort St. John. "In recent weeks I had discussed with Premier Campbell that I would not be putting my name forward for a fifth term, so I am honoured to have been chosen for the Senate."

Neufeld was first elected to the Legislative Assembly in 1991 to represent the riding of Peace River North and was re-elected in 1996, 2001 and 2005. He served on Fort Nelson council from 1978 to 1986, five of those years as mayor.

"Richard has been an outstanding MLA, minister and caucus colleague," said Premier Gordon Campbell. "We're really going to miss him on our team, but I know all British Columbians will be very well served by his continuing contributions on behalf of our province in the Senate."

Neufeld says the past eight years have put British Columbia on a good footing to withstand these difficult economic times.

"Working with Gordon Campbell and serving in his cabinet for the last eight years has been both an honour and a privilege," said Neufeld. "This province will continue to do well in these tough economic times because of his leadership.

"The challenges in the next few months are significant and I am proud to continue to represent both this province and now this country in years to come. I look forward to working with the Prime Minister to keep Canada strong."

Before entering provincial politics, Mr. Neufeld owned and operated a business in Fort Nelson. He has been involved in the oil and gas industry most of his life.

Richard and his wife Montana live in Fort St. John and have four grown children and a grandson named Connor.

Who's Behind 'BC Citizens For Green Energy'?

By Christopher Pollon
TheTyee.ca
Published: December 18, 2008

Group with BC Liberal ties slams gov't critics, pushes private power, nuclear.

BCCGE's Bruce Sanderson and Gene Vickers. (theTyee)

A bold new voice emerged in the provincial discussion about B.C. energy policy last spring, right around the time public outrage was peaking against private hydro development in the Pitt River watershed.

The B.C. Citizens for Green Energy (BCCGE) -- whose name is an apparent take on the B.C. Citizens for Public Power -- launched a website in March, containing articles and press releases aggressively attacking environmentalists, the B.C. citizens, and the organized labour groups that support them.

From its inception, the BCCGP displayed hallmarks of an "Astroturf" group -- a fake grass-roots organization designed to both promote industry-friendly messages and marginalize critics.

Read the rest of this article at the Tyee:
http://www.thetyee.ca/News/2008/12/18/GreenEnergy/

LNG Partners does not make payment to PNG

Marketwire
Tuesday, December 16, 2008

LNG Partners Does Not Make Option Fee Payment to PNG for Utilization of Excess Pipeline Capacity

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2008) - On September 25, 2008 Pacific Northern Gas Ltd. ("PNG") (TSX:PNG)(TSX:PNG.PR.A) filed an application with the B.C. Utilities Commission ("Commission") for approval to provide LNG Partners, LLC ("LNG Partners") with an extendable option to contract for a minimum 75 MMcf per day of firm gas transportation service using existing capacity on PNG's Western B.C. pipeline system. Commission approval was received on November 27, 2008, triggering the requirement for LNG Partners to pay a $1.5 million non-refundable option fee to PNG for an exclusive 6 month option to contract firm gas transportation service. Payment of the option fee was due by December 15, 2008 and PNG has yet to receive payment from LNG Partners.

Roy Dyce, President and CEO of PNG, said, "Discussions are currently ongoing with LNG Partners to secure payment of the option fee."

PNG is reviewing its alternatives and can provide no assurances that LNG Partners will make payment of the option fee.

Headquartered in Vancouver, British Columbia, Pacific Northern Gas Ltd. (TSX:PNG)(TSX:PNG.PR.A) owns and operates natural gas transmission and distribution systems. The Company's western transmission line extends from the Spectra Energy gas transmission system north of Prince George to tidewater at Kitimat and Prince Rupert, and provides service to 12 communities and a number of industrial facilities. In the northeast, Pacific Northern's subsidiary Pacific Northern Gas (N.E.) Ltd. provides gas distribution service in the Dawson Creek, Fort St. John and Tumbler Ridge areas. Further information is available on the Company's website at: www.png.ca.

(c) 2008 Marketwire. Provided by ProQuest LLC. All rights Reserved.

See LNG Partners books pipeline capacity with PNG for more information about the agreement and about LNG Partners.

B.C. Communities Unite Around Coalbed Methane Action Plan

Click here to sign on to the action plan

December 17, 2008 (Vancouver) - A coalition of citizens’ groups, including Citizens Concerned about Coalbed Methane - Vancouver Island, has launched a province-wide campaign around a five-point action plan they say could end the current stalemate on coalbed methane development.

“Across B.C., coalbed methane projects are being delayed or stopped by local conflict because residents lack confidence in the province’s approval process and regulations,” said Ted Ralfe, spokesperson for CCCBM-East Kootenay. “The action plan we’re proposing is a way to restore public confidence and create a more certain investment climate for companies.”

The coalition, Citizens Concerned About Coalbed Methane, released its five-point plan on a new website, www.concernedaboutcbm.org. The plan, “Building a safe future for CBM,” calls for the following –

1. Suspend CBM drilling across B.C. until four key policy improvements are in place:

2. Local communities have a clear say in deciding where and how CBM projects proceed

3. CBM projects undergo mandatory environmental assessments that address cumulative impacts

4. “World-class” CBM regulations promised in B.C.’s Energy Plan are fully implemented and enforced

5. Sufficient funds are dedicated to independent baseline research and to proving the safety of “world-class” technologies.

“We acknowledge that once sound regulations are in place, CBM drilling can occur safely in some places,” said Shannon McPhail, Executive Director of Skeena Watershed Conservation Coalition. “However, the approval process must start with the question of social license, and projects should proceed only if there is broad public support.”

Today’s campaign launch follows a mixed-bag announcement from the B.C. government earlier this month, which put the brakes on CBM drilling in the Sacred Headwaters while greenlighting another controversial CBM project in the Elk Valley.

“This kind of contradictory decision-making highlights the need for a consistent approach to approving and regulating CBM projects across the province,” said Sol Allison, Director of Save Our Similkameen. “Government has already made some progress towards better standards for CBM. We’re calling for a provincewide pause on new drilling to allow the full action plan to be implemented.”

B.C. residents and organizations are invited to sign on to the action plan at www.concernedaboutcbm.org and show their support for a consistent,responsible approach to CBM across the province.

“We think industry will also be interested in this action plan, because it would increase investor confidence and allow good projects to proceed safely and smoothly,” adds Ted Ralfe. “Today’s band-aid approach serves neither CBMcompanies nor communities in the long run.”

Coalbed methane projects have been or are currently proposed in B.C.’s Elk Valley (British Petroleum), Similkameen Valley (Petrobank), Sacred Headwaters (Royal Dutch Shell), Hudson’s Hope area (Hudson’s Hope Gas, Royal Dutch Shell), Vancouver Island, and Telkwa.

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Contact:

Ted Ralfe – Citizens Concerned About Coalbed Methane-East Kootenay
(250) 423 6844

Shannon McPhail – Skeena Watershed Conservation Coalition
(250) 842 2494

Sol Allison – Save Our Similkameen
(250) 293 1047

Click here to download the media release

Click here to sign on to the action plan

RCMP blows pipeline-bomb investigation

By Paul Joosse
Calgary Herald
December 15, 2008

Last week, the RCMP, represented by Tim Sheilds and flanked by a spokesperson from EnCana Corp., let the public have a glimpse into its investigations of the recent pipeline bombings near Dawson Creek.

The Mounties even took, in their words, "the very unusual step" of setting up a publicly accessible website dedicated solely to the investigations
(www.dawsoncreekbombings.com).

On the site -- an obvious point of pride for the force --one can view surveillance photos, photos of the blast sites, a copy of a threat letter and a statement from EnCana.

The strategy is to elicit tips from the public about the bombings and the RCMP rightly presumes the most valuable information will come from family members or close friends of the bomber--people who already may harbour suspicions but, for whatever reason (solidarity, denial, fear), may be reluctant to speak up.

Appealing for information, Sheilds noted the perpetrator(s) may "have talked about those grievances to someone, possibly advocating or threatening violent action."

So far, so good.

All evidence does indeed point to the fact that we probably are dealing with a local resident who may enjoy some communal sympathy for his or her grievances -- if not his or her tactics.

But when one looks at a nuts-and-bolts level at the channels available to those with tips, it is clear the police could have done much better.

People who give tips that cast suspicion on friends or loved ones often go through an agonizing decision-making process before they become willing to speak up.

For this reason, the tip-giving channels need to be hassle-free.

Any impediments to the process, such as dialing a wrong number or waiting on hold on the phone, increase the likelihood of engendering second thoughts or cold feet on the part of the tipper.

I went through the processes the new website encourages--partly to imagine myself in the role of a resident with germane information, partly to offer my advice, partly to request information from the police. This is what I found:

1) The CrimeStoppers phone line recited by Sheilds and reproduced in the original written news release (1-800-822-TIPS) is incorrect (the real CrimeStoppers number is 1-800-'TWO' 22-TIPS). This mistake was corrected in the written statement more than a day and a half after I notified them, while the video of Sheilds reciting the wrong number is still online as I write.

2) The tip-line specifically dedicated to the pipeline bombing investigation (1-866-994-7473) leads to a long machine message, not to a person.

3) The tip-submission webpage is very slow to process submitted information.

4) My calls to the RCMP expressing these concerns were not returned.

A fifth point will take more explanation.

Along with the written statement, the RCMP released a photo of the threatening letter sent on Oct. 7 to Coffee Talk Express, a newsletter that serves the area.

However, the pdf image had already been released to media in October. As such, it is not very useful for gleaning new information.

There were two other letters-- sent to EnCana and the Dawson Creek Daily News--and it is surprising the RCMP has refused to release.

There would be great value in releasing them.

To start, we might remember that the capture of Ted Kaczynski -- the Unabomber --was precipitated by the New York Times's decision to publish his "manifesto."

It was a controversial decision that ultimately proved very valuable, in that Kaczynski's brother, Dan, recognized in the letter some very familiar language and decided to alert authorities.

He had suspicions prior to the publication, but he became more certain after he read the document in its entirety.

This type of confirmatory process is less likely to happen if the RCMP continues its strategy of releasing only partial information.

No one can know ahead of time what the "Eureka" clue will be--perhaps some phraseology, perhaps an idiosyncratic spelling, perhaps the way the letter writer crossed his or her Ts.

Suffice to say that for the five reasons above it is reasonable the public should expect a revision of the RCMP's web-related investigative efforts.

Now, the reply from the RCMP might be that they are understaffed and under-re-sourced, and that we therefore shouldn't have such high expectations.

Canadian's often use telephones, however, and know that it only takes a "staff" of one to correctly reproduce a telephone number.

In the Q and A period of the news conference, Sheilds asserted, "Every tip that has come in has been followed up very quickly."

Although this wasn't my experience, generally this may be true.

However, it is the prospect of tips actually reaching authorities' ears that is an area of concern.

Paul Joosse is completing a PhD in sociology at the University of Alberta. His dissertation focuses on radical environmental social movements. He can be reached at JJoosse@ualberta.ca

© Copyright (c) The Calgary Herald

See also

www.dawsoncreekbombings.com

Sabotage fears flow around B.C. pipelines

Third blast rocks B.C. pipeline

Inside an explosive situation

Six recent pipeline incidents, commission says

Oil vandal questioned in B.C. pipeline bombings

Somebody local with a grudge targeting oilpatch?

2nd explosion rocks northern B.C. pipeline

RCMP terror squad probes pipeline bombing

Long-term Vision for B.C.'s Electricity Needs

NEWS RELEASE
For Immediate Release
2008EMPR0072-001904
Dec. 15, 2008

Ministry of Energy, Mines and Petroleum Resources

LONG-TERM VISION FOR B.C.'S ELECTRICITY NEEDS

VICTORIA - New terms of reference will guide the British Columbia Utilities Commission (BCUC) in looking at the long-term, provincewide electricity transmission needs of British Columbia, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

"These terms of reference will ensure that the Province's long-term transmission infrastructure needs, looking ahead 30 years, are fully examined," said Neufeld. "This way we can continue to offer a clean, affordable and reliable energy supply for all British Columbians for generations to come."

This inquiry will be led by the BCUC, as outlined in the recent amendments to the Utilities Commission Act that were announced on March 31, 2008. The inquiry will consider the long-term, provincewide need for transmission infrastructure and capacity and recognize the long lead times associated with transmission development and the need to plan for future development of a clean, renewable, low carbon electricity supply.
The BCUC is required to start the inquiry by March 31, 2009. Following the inquiry, the BCUC will issue a draft report on its determinations of need for transmission infrastructure and capacity.

As a part of the inquiry, the BCUC will:

o conduct an open public process with the opportunity for all stakeholders to participate; o assess key areas for electricity generation development in the province, and the likely sequence of development of those areas; o assess the need for transmission to serve future electricity demand, in light of the direction set through the BC Energy Plan and climate action policies; o consider long-term needs, the risk of limiting opportunities for clean or renewable electricity resources and economic development; and o look at the efficient development of transmission, thus avoiding the need for multiple transmission lines to serve an area.

"This inquiry helps us develop our province's potential to open up new opportunities by ensuring that public infrastructure is in place on time to support investment in clean energy," said David Emerson, BC Transmission Corporation (BCTC) executive chair and CEO. "Transmission infrastructure is a critical component of B.C.'s long-term energy strategy."

BCTC will use the inquiry's findings to help plan the provincial transmission system to enable efficient construction of generating facilities.

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Contact:

Jake Jacobs
Ministry of Energy, Mines and Petroleum Resources 250 952-0628 250
213-6934 (cell)

Mike Witherly
BC Transmission Corporation
604 699-7267
604 374-8362

For more information on government services or to subscribe to the Province's news feeds using RSS, visit the Province's website at www.gov.bc.ca.

B.C. has potential to be a leader in natural gas

By Scott Simpson
Vancouver Sun
December 13, 2008

Demand is on the rise, and the province is getting set to cash in

British Columbia's "incredible" potential as a natural gas producer makes it a likely candidate to meet growing market demand in the United States and around the world, Energy, Mines and Petroleum Resources Minister Richard Neufeld said Friday.

Recent massive gas deposit discoveries in the northeast, coupled with plans to ship liquefied natural gas (LNG) from Kitimat, are certain to elevate B.C.'s status as a producer, he said.

"B.C. is a competitive jurisdiction in North America for oil and gas investment," Neufeld told an international council of oil and gas producers that is for the first time staging its quarterly conference in Vancouver.

"This past July the sale of natural gas rights resulted in a record-breaking total of over $610 million in bonus bids in that one month," the minister told delegates to a conference of The Energy Council, noting B.C.'s rapid growth in this decade as a gas producer.

For all of 2008 B.C. took in a record $2.7 billion, he said, with nearly all that investment in northeast B.C.

"To put that in perspective in the [2007] calendar year it was $1.2 billion in British Columbia. The year before that it was $640 million.

"I think Alberta's [all-time] record for land sales was $3.4 billion -- so we came very close to that in just a small portion of the province.

"These records are indicative of the amount of positive investment that the oil and gas industries can bring to British Columbia."

Neufeld listed Russia, Iran and Qatar as the world's top three gas reserves. The U.S. is sixth and Canada 18th.

World demand for gas is expected to jump 51 per cent by 2030, with gas emerging as a fuel for transportation, industry and heating -- and as a transitional fuel for electricity generation in lieu of coal-fired generation, he said.

"North American demand is projected to rise over the next 20 years, and British Columbia has an opportunity to provide more natural gas to our neighbours to the south," he said.

Meanwhile, overall Canadian production is down four per cent this year and is projected to continue to fall as a consequence of the maturation of Alberta's sprawling share of the Western Canada Sedimentary Basin.

"British Columbia is a bit of a paradox in this supply status question," Neufeld said. "B.C. may have an opportunity to become a North American leader in producing and exporting natural gas."

B.C.'s potential comes from vast unconventional gas reserves that have sparked furious bidding for drilling rights, particularly this year, as gas exploration and production companies have developed the technology to tap into those reserves.

The unconventional reserves commanding the most attention are Horn River north of Fort Nelson and Montney in the Dawson Creek-Fort St. John region.

Neufeld said the deep-drilling technology used to open up North America's largest new unconventional gas play, the Barnet field in Texas, can be applied at Horn River and Montney.

"Production in the future could double or triple according to some estimates. This puts B.C. in a unique position of being able to increase sales to Alberta, Eastern Canada, the U.S. and other export markets."

He said the revenue B.C. derives from gas royalties has skyrocketed and he expects it will continue to grow.

"The extraction of unconventional gas from B.C. will realize billions of dollars of investment. In the 10 years previous to our government [which came to power in 2001], the average investment money in the gas industry in British Columbia was $1 billion a year.

"In the last seven years that has increased to an average of just under $5 billion a year."

ssimpson@vancouversun.com

© Copyright (c) The Vancouver Sun

2008 OIL AND GAS RIGHTS SALES A RECORD $2.66 BILLION

Ministry of Energy, Mines and Petroleum Resources

NEWS RELEASE
For Immediate Release
2008EMPR0071-001883
Dec. 11, 2008

VICTORIA - The December sale of oil and gas rights resulted in a total of over $91.7 million in bonus bids, bringing the 2008 calendar year total to a record high $2.66 billion and building on the fiscal year record of $2.38 billion, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

"This sale puts a positive final note on a very successful year for B.C.'s oil and gas industry," said Neufeld. "In these times of global economic uncertainty, it is comforting that B.C.'s oil and gas industry provides funding that ensures the stability of health care, education and many other programs that sustain the well-being of British Columbians."

The Dec. 10 sale offered 56 parcels covering 79,022 hectares, and sold 44 parcels covering 60,649 hectares. The average price per hectare was $1,512.

The key parcels in the sale included:

* Two drilling licenses with bids of $4,134 and $7,118 per hectare, respectively, totalling over $19.5 million, located between the Wolverine and Grizzly north fields, approximately 20 km south east of Tumbler Ridge.

* A group of three drilling licenses located within the Horn River Basin, about 40 km north of Fort Nelson, generated over $46 million at average prices ranging from $1,721 to $4,279 per hectare.

* A fourth drilling licence parcel within the Horn River Basin, located at the B.C./NWT border, 130 km north of Fort Nelson, earned over $12 million in tender bonus and averaged $4,345 per hectare.

* Over $28,900 per hectare, for a total of over $7.6 million, was received for a lease parcel located beside the Sunset Prairie Field, approximately 30 km south of Fort St. John.

Additionally, this sale sets new records for the highest per hectare amount ($28,974) and highest tender bonus ($7.65 million), breaking the previous records set in July 2008.

"Since 2001, the oil and gas industry in B.C. has seen unprecedented growth and investment," said Neufeld. "Through effective incentives, programs and royalty structures, B.C. has established itself as one of the most competitive oil and gas jurisdictions in North America."

Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells. They are acquired by the successful bidder at the Crown sale, and primary terms are three, four or five years, depending on location.

Leases provide the exclusive right to produce petroleum and natural gas and are acquired by the successful bidder at the Crown sale or selected from permits and drilling licences. Primary terms are five or 10 years, depending on location.

The next sale is scheduled for Jan. 14, 2009 and will offer 18 parcels covering 11,938 hectares.

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Media contact:

Jake Jacobs
Public Affairs Officer
Ministry of Energy, Mines and Petroleum Resources
250 952-0628
250 213-6934 (cell)

For more information on government services or to subscribe to the
Province's news feeds using RSS, visit the Province's website at
www.gov.bc.ca.

Coal bed gas exploration will proceed, minister says

By Scott Simpson
Vancouver Sun
December 11, 2008

Groups attack B.C. approval of southeast drilling

Calls for a moratorium on coal bed gas exploration in southeast B.C. were rejected Wednesday by Energy Minister Richard Neufeld.

Environmental groups, and the provincial New Democrats, are attacking the government for an announcement last week that while it's imposing a two-year moratorium on Shell Canada's coal bed gas drilling in northwest B.C., it is simultaneously allowing BP Canada to proceed with drilling in the southeast.

The northwest moratorium was praised, the southeast decision condemned.

Coal bed gas exploration is a fledgling industry in B.C., with potential to generate enormous resource royalty revenue for the province, but it poses a risk to drinking water and fish-bearing streams if not properly managed.

Neufeld said in an interview that the government has rules in place to safely address the risks, but critics aren't convinced.

NDP leader Carol James said in an interview that she's not opposed to coal bed gas development if it can be demonstrated that it poses no risk to the environment. But James said the government has failed to provide any proof that the environment can be protected.

The government said last week that it would allow BP to proceed with its Mist Mountain coal bed gas project in the East Kootenays, near Fernie -- but excluding the Flathead River drainage.

"The concern I heard from people up there is that they don't feel environmental issues had been considered, that neither the government nor the company has given them any kind of assurance that we are not going to see environmental damage," James said.

She said the moratorium in effect in the northwest, at Shell's Klappan coal gas project, should be imposed across B.C. -- including Mist Mountain in the Elk Valley drainage.

"The moratorium should apply across the board until the environmental issues are addressed and until someone could show that community. . . that things are going to be done properly, the moratorium should remain."

Casey Brennan, Southern Rockies and Flathead program manager for environmental group Wildsight, helped organize a rally Wednesday in Fernie where about 120 people gathered to protest the government's decision for their area. A similar rally this past summer attracted 300.

"It's too big an experiment on too big an area and it's going to put at risk the things we care about -- clean water, healthy wildlife populations, and a diverse economy growing in many ways other than just resource extraction," Brennan said.

He said the province has no knowledge of how drilling for gas would affect Elk Valley stream and ground-water resources.

"Their closest groundwater monitoring well is in Cranbrook. They have no baseline data for this area. We have no idea what the subsurface hydrogeology looks like here."

Neufeld, meanwhile, said the government-imposed conditions under which BP must operate -- including deep-well reinjection of water removed during coal bed gas exploration and production, already provide the measure of environmental protection the critics are seeking.

"They have to actually be allowed to drill a few wells, to find out what they are going into. If they can't meet the tough rules and regulations we have then we won't let them go ahead," Neufeld said.

"It's no different than conventional oil and gas. They don't exactly know what's below surface in some big area until they start drilling and find out what's there."

ssimpson@vancouversun.com

© Copyright (c) The Vancouver Sun

4 projects selected in Bioenergy Call for Power

BC Hydro announces successful proposals in phase one of Bioenergy Call for Power

News Release
BC Hydro
December 8, 2008

VANCOUVER – BC Hydro has selected four proposals submitted in phase one of BC Hydro's Bioenergy Call for Power.

"Bioenergy provides clean and reliable electricity year-round, so this is another step on the road to achieving electricity self-sufficiency by 2016," said Richard Neufeld, Minister of Energy, Mines and Petroleum Resources.

"These projects are a tremendous opportunity to create new jobs and diversify the forest economy for B.C. communities through better utilization of the wood waste resource," said Pat Bell, Minister of Forests and Range.

These bioenergy facilities will use forest-based biomass, including sawmill residue, logging debris, trees killed by mountain pine beetle, and other residual wood, to generate electricity. The four projects will generate a combined total of 579 gigawatt hours of electricity annually, or enough to power more than 52,000 homes.

The selected proposals were submitted as part of a competitive process and are from Canfor Pulp Ltd. Partnership's PGP Bio Energy Project in Prince George, PG Interior Waste to Energy Ltd.'s proposal also in Prince George, Domtar Pulp and Paper Products' Kamloops Green Energy Project in Kamloops, and Zellstoff Celgar Ltd. Partnership’s Celgar Green Energy Project in Castlegar.

"BC Hydro is pleased that industries are taking the initiative to provide an innovative source of made-in-B.C. electricity, utilizing a carbon-neutral fuel," said Bev Van Ruyven, BC Hydro Executive Vice President, Customer Care and Conservation.

Once signed by the selected proponents and BC Hydro, the electricity purchase agreements will be submitted to the British Columbia Utilities Commission.

BC Hydro, the Ministry of Energy, Mines and Petroleum Resources and the Ministry of Forests and Range continue to work together on plans to develop phase two of the Bioenergy Call.

Contact:
Dag Sharman
Media Relations
Phone: (604) 623-4022

BC Hydro news release

Enbridge pumps pipeline plans at city open house

By George T. Baker
The Daily News (Prince Rupert)
Thursday, December 04, 2008

Enbridge representatives came clad in green golf shirts and brought big flashy placards with pictures of mountains and cozy pastures in an effort to give their side of the story.

That story is about the oil pipeline operators' Northern Gateway project that they hope will snake its way from Brudenheim, Alberta, to Kitimat. It's a project that could deliver 4,000 temporary construction jobs for the region.

It is also a project that has its share of opposition.

"People come to open houses and they think that these are the venues that we tell you what we are doing but actually it is more of a venue saying this is what we think would work and you tell us what you think would work," explained Roger Harris, Enbridge's vice president of communications and aboriginal affairs.

The pipeline itself will not come to Prince Rupert, but there are concerns about oil tankers operating in the region. Some of the tankers would be carrying Alberta tar sands oil to Asia, while some tankers would be bringing in condensate from Australia to the B.C. coast, a highly volatile light petroleum product used to thin bitumen.

Harris went on to explain that another reason for the Prince Rupert stopover was because Enbridge realizes that any project that is developed in the Northwest affects the whole region.

"People in Prince Rupert need to be part of how we craft this project. Not just from the design of the pipeline perspective but also from the shipping vessel perspective," said Harris.

And that's where the nuts and bolts of the issue sits for the North Coast.

It's the old argument of environment versus economy, with both at risk. The sound of 4,000 temporary jobs opening up for a hurting Northern B.C. region, devastated by declines in fishing stocks and plundered by a pine beetle infestation that has battered the forestry industry, could be music to residents' ears. But it also comes with some potential environmental risks, say critics. Enbridge's open house was as much about selling the potential shipping safety measures as it was about the pipeline itself.

The organization's representatives were open about the way they have been perceived by the public and recognized the backlash they have seen.

There have been concerns about oil tankers entering the region. People along the North Coast have not forgotten March 24, 1989, when the Exxon Valdez oil tanker crashed into Bligh Reef in Prince William Sound, spilling 53.1 million gallons of oil into the ocean.

Enbridge has responded to Valdez concerns by mentioning that the new tankers are now double-hulled, with separate oil containers, rather than a single, big container that has been used in the past.

They say that such a vessel design would protect the coast from a Valdez-like spill.

"If we are going to actually design the future of the West Coast of Canada in a way that facilitates the things that everybody wants to do, from shellfish aquaculture to potentially this project, then we better start sitting down collectively and putting together what we need to do collectively to make it work," said Harris.

Another issue that has prevented the viability of the pipeline is a 1972 moratorium on oil tanker traffic and offshore oil drilling installed by then Prime Minister Pierre Trudeau. That moratorium came about in response to concerns about environmental damage to the North Coast region.

But the Enbridge representatives said they have been unable to find where any moratorium has been written down; meaning that respect for the moratorium may be a moot point.

One B.C. environmental group said that there is one, regardless of whether it is written and that it should be respected.

"The (federal) government has talked about in the past that there is moratorium - they have looked at reviews and looked at reviewing moratoriums on offshore oil and gas, and oil tanker traffic in B.C., so we feel there is a moratorium," said Living Oceans Society Executive Director Jennifer Lash.

Lash said that the federal government has verbally committed to that and therefore they have committed to a social contract with the people who work and live on this coast to not allow oil tanker traffic into the region.

She added that LOS was not saying that they were against tanker traffic all over the world but the North is one of the most ecologically sensitive places in Canada.

"History shows that what usually causes oil spills is human error. If there is an oil spill, industry considers it good if 10-to-15 per cent of oil spilt is recovered. That's just not good enough. We deserve better."

Chief taking a long look at pipeline

By George T. Baker
The Daily News (Prince Rupert)
Friday, December 05, 2008

Lax Kw'alaams elected Chief John Helin expressed cautious concern about Enbridge Inc.'s plan to build its Northern Gateway pipeline though Northern B.C. to Kitimat.

While the project would dip southward before it reaches Prince Rupert, it will partially go through Lax Kw'alaams territory, meaning the First Nation band is expecting to be consulted.

Helin said Enbridge had approached the band about the project and he said he was waiting to hear more.

"We understand the proposed route and we have some concerns around tanker traffic and where it is going to go," said Helin of the conversation he and Lax Kw'alaams council had with Enbridge officials. "We just have to see how that is going to go."

The proposed project consists of two pipelines going east-west with Alberta tar sands oil and west-east with condensate. Enbridge expects to pump 525,000 barrels of oil and 193,000 barrels of condensate each day.

Helin added that Enbridge representatives have insisted that it will be the safest project of this type in the world but he said the band has not said 'yes' or 'no' at this point.

For North Coast residents, the environmental concerns that have been raised centre around the oil tankers moving through the province's northern shores - a scary proposition for some.

If a condensate tanker were to spill in Hecate Strait, according to Bruce Hill of the Headwaters Institute, it would kill any species within contact. The good news is that it would evaporate fairly quickly.

As for the oil, they are still cleaning up the mess Exxon Valdez left in 1989.

In an effort to subdue those fears, Enbridge has taken to touring the northern-half of B.C. to give their side of the story and, as the company's representatives claim, to receive feedback on their plans and mold their plans into what northerners want to see.

As part of that wooing, the Calgary-based pipeline operator has added an extra incentive to First Nations communities in the North by offering them a collective 10 per cent stake in the project. There are also potentially 4,000 temporary jobs at stake, which for a community like Lax Kw'alaams suffering from sever unemployment could mean jobs.

Helin said economics were an important consideration and part of the reason why he could not just turn his back on Enbridge even though his community has serious environmental concerns about the proposed project.

"I think any opportunity like that we would be very interested in," said Helin.
But he added that Lax Kw'alaams leadership was very concerned about the salmon in the region and conservation efforts for the environment.

"We have to be comfortable in the fact that nothing is going to happen to harm the environment."

Enbridge's vice president of communications and aboriginal affairs Roger Harris said that Enbridge has already got almost 20 First Nation communities to sign on to the agreement. Harris said that agreement does not mean they approve the project, it just means they are working on the design aspect.

The challenge for Enbridge is that its proposed pipeline runs through 60 First Nations communities, many of which are still dealing with land claims and treaty rights and still undecided. Navigating through different politics will be just as important as planning the line itself.

Opposition to the proposed project among First Nations communities along the projected line run from expectations needing to be met to outright refusal.

There are tribes, such as the Carrier-Sekani Tribal Council whose territory is just west of Prince George, who have said they will not approve the pipeline until there is an independent First Nations-led Environmental Assessment. And there are tribes like Haida Nation who have said that they would not sign an agreement with Enbridge and that they were opposed to any oil tanker traffic in Hecate Strait.

"There is absolutely no doubt that there are communities that have problems with the federal government's environmental process," said Harris, who is the former BC Liberal MLA for the Skeena riding and who has been at odds with the Haida Nation in the past over forestry on Haida Gwaii.

He recognized there was opposition to oil tankers but said Enbridge would continue to try to work with all First Nations communities during the lifeline of the project.

Anger erupts over conflicting coal bed decisions

WENDY STUECK
Globe and Mail
December 8, 2008

Mist Mountain project gets tenure; moratorium announced in the Klappan

A proposal to wrest unconventional gas - also known as coalbed methane - from an area near Fernie, B.C., in the shadow of the Rocky Mountains has moved another step closer to reality, with the province granting BP Canada tenure for its Mist Mountain project.

But opponents of the project are furious, especially since the province on the same day - Friday - announced a two-year moratorium on coal bed activity in the Klappan, where native bands and conservation groups had dug in against Shell Canada's plan to explore for the resource.

"Why have they ignored concerned citizens in the Elk Valley and granted BP tenure, yet at the same time they have imposed a two-year moratorium on [coalbed methane] development in northwestern B.C.?" said Casey Brennan, a program manager for Fernie-based conservation group Wildsight.

The BP tenure was granted after a comprehensive referral process that included local natives, communities and government agencies, B.C. Energy Minister Richard Neufeld said yesterday.

BP's Mist Mountain project could last 50 years and feature as many as 150 well pads consisting of 10 wells per site. The company has spent the past few years doing preliminary work in the 500-square-kilometre project area in southeastern British Columbia. Fernie City Council opposes the project, but the nearby town of Elkford backs it.

The province is keen to develop B.C.'s extensive coalbed-methane reserves, but some residents of potential production areas are less enthusiastic.

Shell Canada has had coal bed interests in northwestern B.C. since 2004, but has had its exploration program mostly on hold since 2005, saying it respected local communities' demands for more consultation.

Friday's announcement by the province means Shell's exploration is shelved for at least another two years.

Conservation groups are worried about potential impacts on salmon. The area Shell wants to explore contains the headwaters of the Skeena, Nass and Stikine Rivers.

The Tahltan natives - comprising on-reserve and off-reserve residents living in Telegraph Creek, Dease Lake and Iskut - need time to come up with a sustainable resource plan, said Anita McPhee, chair of the Tahltan Central Council.

"At this point in time we can't see this type of development advancing without having full and complete information," she said.

"There needs to be a proper framework for decision making. And there also needs to an informed decision-making process. And that wasn't taking place."

The coalbed-methane decisions were made as natural gas prices are falling and other projects are winding down or being delayed.

Toronto-based Barrick Gold's Eskay Creek mine, a profitable gold and silver operation that employed many Tahltan workers and contractors, wound up production early this year.

Galore Creek, a massive copper-gold project jointly owned by Vancouver companies Teck Cominco and NovaGold Resources, was put on hold last year after costs ballooned.

Other potential projects are on hold pending a commodity comeback or new infrastructure, including a proposed electricity transmission line for the region.

That slowdown poses employment challenges, but doesn't lessen the Tahltan's determination to take a cautious approach to development, Ms.
McPhee said.

"There are definitely some economic development challenges because of the financial crisis," she said. "In Tahltan territory and everywhere, I suspect."

BP granted rights for Mist Mountain CBM project

This just in from CCCBM in Fernie ...

BP granted rights for Mist Mountain CBM project in the heart of the Rockies

Today the BC Government announced that BP received its tenure for their Mist Mountain project. At the same time they announced that Shell has been placed under a 2 year moratorium for their development in Northwestern BC.

Why have they ignored concerned citizens in the Elk Valley and granted BP tenure, yet at the same time they have imposed a two-year moratorium on CBM development in northwestern B.C.? Are our concerns less valid then those in the northwest?

Let BC Premier Gordon Campbell and Minister of Energy and Mines Richard Neufeld know your thoughts on this recent announcement by sending a quick message here - http://www.cccbm.org/take-action-write-e-mail

For more information on this announcement visit this link - http://www.cccbm.org/sad-day-wildlife-province-gives-bp-key-elk-valley

---

And here's the news release from the Ministry of Energy, Mines, and Petroleum Resources. You'll love the title, and the rest of it is a painful piece of language twisted in the service of spin. Sad though. A ten year moratorium on all of it would have meant something. This is just intended to get them through the May election, and it's a cynical reading of the electoral advantage they hope to purchase in the northwest, and don't think they need to buy in the southwest.

NEWS RELEASE
Ministry of Energy, Mines and Petroleum Resources
For Immediate Release
2008EMPR0070-001843
Dec. 5, 2008

LEADERSHIP SHOWN IN UNCONVENTIONAL GAS DEVELOPMENT

VICTORIA – Shell Canada will take a break in exploration activity in the Klappan and have more discussions with First Nations and the community, Energy, Mines and Petroleum Resources Minister Richard Neufeld announced today.

“Government is facilitating this by specifying no activity for two years,” said Neufeld. “I commend both Shell Canada for showing leadership in making this decision and the Tahltan who have expressed their concerns and their interest in having more information.”

As the Province moves forward and takes another step towards realizing the benefits of the BC Energy Plan, it is awarding tenure to BP Canada for their Mist Mountain Project in the East Kootenay.

The awarding of this tenure follows a comprehensive referral process that included local First Nations, communities and government agencies requesting they provide comments on the tenure and process. Three of the four local governments either supported approval of the tenure, or were neutral, provided best practices in the BC Energy Plan are adopted and followed for the Mist Mountain Project.

“British Columbia has put in place some of the toughest regulations for unconventional gas development in North America, and BP Canada will be bound by those,” said Neufeld. “BP has been engaging communities and other stakeholders in the region to share information and their environmental processes and seek input on their proposed project.”

In recognition of the Flathead Valley’s environmentally sensitive status, the provincial government has not included any land area within the Flathead River Basin.

“The BC Energy Plan states that government would not allow companies to surface discharge produced water from any CBG projects,” said Neufeld. “We’re keeping that commitment.”

-30-

Media Contact:
Jake Jacobs
Public Affairs Officer
Ministry of Energy, Mines and Petroleum Resources
250 952-0628

KLNG puts call out for potential clients

By Cameron Orr
Kitimat Northern Sentinel
December 03, 2008

Kitimat Liquid Natural Gas (KLNG) expects strong natural gas reserves in Western Canada. low geopolitical risks and the flexibility of its proposed LNG plant in Kitimat will be major factors in attracting potential users and investors.

Last Tuesday the company issued a call for formal expressions of interest from potential users of the liquefaction facility.

Ilene Schmaltz, vice-president of supply marketing for KLNG, said the move is to ensure fairness and that it hears from all possible candidates.

She said that when the company announced in September it was switching from import to an export, “we got a lot of calls from interested parties wondering as to the availability of terminal capacity or off-take or potential equity.”

As a result, Schmaltz explained. “What we thought we would do is make it more of a formal process to ensure we contacted any potential party that may be interested in our facility.”

A terminal capacity deal would see a party get the rights of a certain amount of LNG processing capacity while off-take refers to the LNG exports.

Schmaltz couldn’t discuss how many parties they have already talked to, but noted, “we have had several companies already tell us they intend to submit responses to our request for expressions of interest.”

Although KLNG hasn’t talked about what capacity they need buttoned down to make the project a go, she said the bulk of their capacity would have to be contracted before they would proceed.

“I would say that we would more than likely be able to go ahead with our project if we had at least 80 per cent of the capacity contracted for,” she said.

While global economic woes are dominating the headlines these days, KLNG is not greatly concerned that will affect the overseas customer base for their product.

“We’ve found over the last few weeks...is that most of these companies that are looking for LNG - the Asian buyers in particular - are long-term thinkers,” said Schmaltz.

“In the long-term they know they are going to continue to need LNG on an ongoing basis well into the future.”

When she attended a Kitimat city council meeting in September, Schmaltz had noted the ‘icing on the cake’ for changing the terminal from a regasification facility to a liquefaction plant was the prospect of numerous natural gas reserves going online in the near future.

Last week she told the Sentinel that in informal discussions with the producers she had been assured that these reserves are still going to be developed.

“Will there be a delay? We’re not sure, but a lot of producers are still actively drilling and exploring,” Schmaltz said. “It still looks very positive.”

The company is still waiting for federal regulatory approval on their facility, but she said the process is going very well and KLNG expects the approval early in 2009.

They are also waiting to receive an amendment for their already granted provincial approval (required since they changed the terminals function) and waiting to hear from the BC Environmental Assessement Office if any further steps need to be taken.

“We’re hoping to be able to finalize our commercial arrangements and get re-permitted in 2009,” said Schmaltz. “If we’re able to do that by the end of 2009 we could start construction as early as late next year or early 2010.”

On that timeline, the 36-40 month construction phase would put them online in early 2013.

Interested parties wanting to fill out an expression of interest have only a limited time as KLNG hopes to have all EOIs in by mid-December.

“Then we’ll take a look at them and decide who we want to proceed with,” she said. Those decisions will likely be made early in the New Year.

KLNG still expects to export five million tonnes of LNG annually.

Kitimat LNG Request for Expressions of Interest

Spring completion seen for oil pipeline

COMMENT: Someone in BC reading this headline might panic. After all, it's about Enbridge, and it's about two pipelines, one to transport oil from Alberta's tar sands, and the other to transport diluent to the tar sands. Sounds a lot like the Enbridge Northern Gateway project.

But Gateway's other end point is Kitimat BC, whereas the pipelines in this article terminate in the US midwest, at one of the largest North American petroleum near Chicago.

In recent years, forecasts have indicated dramatically increased oil production from the tar sands, and investments in tar sands mining projects have been consistent with the forecasts. Pipeline companies have introduced expansion projects on existing pipelines, and completely new pipeline proposals, which would accomodate that increased production, and move all that new oil to markets.

Fill 'Er Up! is an article I wrote a couple of years ago about these pipeline proposals.

Enbridge, TransCanada, and Kinder Morgan dominate the project list. TransCanada's Keystone and Enbridge's Clipper/Southern Access both go into the US midwest. KM's Trans Mountain expansion (TMX) ends in Burnaby, BC, where increased capacity will all result in more tankers leaving the port, to California and other Pacific delivery points.

In BC, Enbridge is generating most of its headlines with the Gateway project, an oil export pipeline going west and a diluent or condensate import pipeline going east.

In its first round, Gateway made it as far as an application to the National Energy Board, strong resistance from First Nations along the route, fierce opposition from the Haida and others who won't tolerate oil tankers on BC's north coast. Then it collapsed in 2006 when Chinese participants (investors and shippers) bailed.

But early in 2008, it reappeared, and Enbridge is now conducting open houses along the route, and is attempting to mollify First Nations once again.

It ain't workin'. The Haida have resoundingly re-rejected the project because of the tankers and marine issues. Council of the Haida Nation objects to oil pipeline plans

The Haida and other First Nations introduced a resolution at the First Nations Summit insisting that First Nations will conduct their own review process for the Gateway project. Approval Process for Enbridge Gateway Flawed: BC First Nations

Gateway is a doomed project, and Enbridge should pack up its bags and leave BC. Nobody is in the market for this oil today. With oil prices in freefall, and now in a price range that makes tar sands development uneconomic, producers are fleeing Alberta. Over $40 billion in projects were shelved in October alone. That figure may be matched by more cancellations announced in November and December. Global economic collapse is definitely not working in Enbridge's favour. Despite the rah-rah boosters in the BC government and the greedy forecasters in Enbridge's head office. Enbridge's shareholders are likely getting pretty edgy right about now, too, about money being spent on Gateway.

So this article is not about Gateway, it's about Enbridge's Clipper/Southern Access/Southern Lights. Pretty poor odds right now that we'll ever see one like it about Gateway. And the newspaper from Ottawa? That's Ottawa, Illinois.

Here's a map from Enbridge. La Salle County is just west of Chicago.

Spring completion seen for oil pipeline

Charles Stanley
The Times, Ottawa, Illinois
December 3, 2008

If you want a look at the Enbridge oil pipeline being installed in La Salle County, do it now: by next April there should be little above ground evidence left.

"A big part of the project is to restore the land to its previous contours and appearance after the construction is completed," said Dave Henderson, an Enbridge spokesman. "Our goal is when it's all said and done and you drive down the road the only thing you will see different is the pipeline markers along the highway."

But in the meantime, he said, "I think people find it sort of fascinating how the pipeline moves along."

Actually, two pipelines are being put in: a 42-inch pipeline that will carry crude oil mostly from Western Canada but also from Montana and North Dakota.

There also is a 20-inch pipeline for light hydrocarbons — called diluent — from the refineries and other suppliers in the Chicago area to be shipped to Western Canada.There it will be blended with the heavy crude oil produced up there to dilute it enough to make it transportable by pipeline.

"So it will be like one big recycling loop."

The first 321 miles of that dual pipeline that runs in Wisconsin from Superior to a pumping station in Whitewater was completed last April.

The section from Whitewater to the Flanagan terminal north of Pontiac is scheduled for completion by Wednesday, April 1.

The completed 42-inch pipe will have the capacity to transport 400,000 more barrels of crude oil per day.

Enbridge bores under major highways, roads and even rivers to install the pipeline.

In the case of the Illinois River, a technique called horizontal directional drilling is employed. An arc is drilled 30 to 40 feet beneath the river bed and comes up on the other side.

Most of the pipe installation, however, takes place in farm ground.

Not everyone was willing to provide property access. In La Salle County, four eminent domain lawsuits were filed by Enbridge. Three were settled and one is listed as remaining active, according to court records.

The pipeline installation is driven by industry installation practices and the agricultural impact mitigation agreement Enbridge signed with the Illinois Department of Agriculture, said Henderson.

"That lays out all of the techniques that we are utilizing to try to insure that the farmers get their crop productivity back relatively soon after the pipeline construction is completed."

For instance, when trenches are dug, topsoil and subsoil are kept separate and then put back in the proper order. Also, any drain tiles that were cut or damaged are restored or repaired.

Before the pipe is covered over, it is tested several ways.

"We run tools through the pipes called pigs to thoroughly clean it out."

There also are pipe sections filled with water and pressure tested for leaks.Then another tool called a caliper is run through to re-inspect the inside of the pipe.

Restoration is dependent on weather conditions, which means some of that work may have to wait until spring.

The project has been a boon to local economies, said Henderson.

The first section employed 2,000 workers at its peak, while the shorter section now under way has about 1,500 workers.

"A lot of the workers are local workers hired out of the union halls."

They include operating engineers, welders, pipefitters and laborers.

"So it does create a pretty nice increase in employment and general economic stimulation. It's a pretty good influx of workers that are making purchases in restaurants, service stations and all sorts of retail establishments."

More information on the project, including maps, is available online at www.enbridge-expansion.com.

RCMP say EnCana specifically targeted in B.C. pipeline bombings

James Keller
Prince George Citizen
Wednesday, 03 December 2008

DAWSON CREEK, B.C. - Calgary-based energy giant EnCana (TSX:ECA) was likely the intended target of three gas industry bombings in northern B.C., the RCMP said Wednesday, publicly speculating for the first time about what may have motivated the attacks.

The Mounties also released video surveillance images of eight people they want to interview as they investigate the bombings of two pipelines and a wellhead in October near Dawson Creek, not far from the Alberta-B.C. boundary.

The explosions were preceded by a letter that called oil and gas companies, and EnCana in particular, "terrorists" and demanded an immediate halt to operations.

Until now, police have not speculated about a potential motive other than to say the bombings and the letter appeared to be related.

But Sgt. Tim Shields told a news conference Wednesday that investigators believe EnCana was specifically targeted.

"Investigators are confident that the person or persons exploding these bombs is from the local area and has a grievance with EnCana," he said in a prepared statement, asking the public to speak up if they know anyone who has expressed anger about the company.

"They will have talked about those grievances to someone, possibly advocating or threatening violent action. This person will have knowledge of and possibly access to explosives."

EnCana spokesman Mike McAllister appealed directly to the bomber Wednesday, inviting whoever is involved to stop their attacks and contact the company directly if they have concerns about local oil and gas development.

"We do not believe you intend the loss of life, but you must understand that a continuation of the bombings dramatically raises the danger of that occurring," McAllister said in a statement.

"It is apparent from your letter that you have grave concerns about the course of energy development in the Tomslake area. I urge you to contact EnCana to discuss your concerns."

No one was injured in the blasts - which occurred on Oct. 12, 16 and 31 - but two pipelines were damaged and there was a small leak of toxic sour gas at a wellhead.

The blasts put a spotlight on local concerns over the rapid growth of the industry in the region, particularly projects containing sour gas.

The gas contains hydrogen sulphide, which can be lethal if breathed even in small amounts.

B.C. has more than 4,000 producing oil and gas wells, all in the northeastern part of the province, and the industry has seen massive expansion.

In 1996, it was worth about $370 million in revenues to the province. By 2006, that figure had jumped to $2.5 billion, mostly related to natural gas projects.

The threatening letter was mailed to local media on Oct. 7 - just days before the first bombing - from a Shoppers Drug Mart in Dawson Creek.

There are eight people on the store's surveillance footage who mailed letters that day and who police have been unable to identify.

Shields said investigators need to speak to those people and he appealed for public help in the case.

"Protecting the person responsible by remaining silent, or failing to notify police of your suspicions, only enables the bomber to continue," he said.

The Mounties have also launched a website - DawsonCreekBombings.com - which contains the surveillance camera images, as well as other information about the case.

The incidents are reminiscent of the bombings and vandalism that plagued Alberta's oilpatch in the 1990s.

Alberta farmer Wiebo Ludwig, who blamed the industry for hurting his family, his land and his livestock, was convicted of several charges and spent nearly two years in prison.

Police said they have spoken with Ludwig as part of their investigation, but don't consider him a suspect.

See also

Sabotage fears flow around B. C. pipelines

Third blast rocks B.C. pipeline

Inside an explosive situation

Six recent pipeline incidents, commission says

Oil vandal questioned in B.C. pipeline bombings

Somebody local with a grudge targeting oilpatch?

2nd explosion rocks northern B.C. pipeline

RCMP terror squad probes pipeline bombing

Council of the Haida Nation objects to oil pipeline plans

George T. Baker,
Canwest News Service
Victoria Times Colonist
December 03, 2008

Group won't accept risk of tanker spills

PRINCE RUPERT -- The Council of the Haida Nation says it has not been consulted about Enbridge Inc.'s plans to build an oil pipeline running from northern Alberta to Kitimat.

CHN representative Robert Davis said the Haida Nation would never accept Enbridge's plan even if it did consult.

"The Haida Nation will certainly not accept tanker traffic where we would bear the burden of risk and oil spills in our waters. Our livelihoods would be jeopardized," Davis said. "Many of our neighbour nations are equally concerned about impacts on their lands and water. We are willing to stand united to protect our waters."

Davis spoke after the First Nations Summit called for an independent First Nations environmental review of the proposed $4-billion Northern Gateway project.

The Haida Nation has been clear that it will oppose any plan that would bring oil tanker traffic to the North Coast area.

There is already plenty of traffic west of the Queen Charlotte Islands, with many ships making the trip from Alaska to the western U.S. But opening up the pipeline to Kitimat would put oil tankers into the heart of North Coast waters. That is something northern B.C. first nations want to be very cautious about.

The First Nations Summit call followed a Nov. 6 gathering during which hereditary chiefs, elected chiefs and other representatives from six First Nations shared concerns about the Gateway pipeline and coastal tanker traffic.

They agreed that current consultation attempts by the federal government and Enbridge do not meet a standard of genuine engagement with First Nations.

"Regulators are not respecting the fact that we have a responsibility to protect our ancestral territories, rights, title and interests," said David de Wit, natural resources manager for the Wet'suwet'en First Nations.

"Gateway is a major project with significant risks. Yet, the federal government is advancing a decision-making process for Gateway without any provision for addressing aboriginal rights and title. This is unacceptable."

Enbridge held an open house in Prince Rupert yesterday to provide its side of the story.

The pipeline is to undergo a Joint Review Panel process beginning in early 2009. But that process does not take into account risks from coastal tanker traffic and oilsands expansion that would follow pipeline construction, critics say.