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Archived Industry News: 2005

December 20, 2005

National Energy Board to begin Mackenzie Gas Project hearing

CALGARY -- The National Energy Board (NEB) will begin its public hearing on the proposed Mackenzie Gas Project in Inuvik on Wednesday, 25 January 2006.

The NEB set its hearing schedule after obtaining comments in communities during a Pre-Hearing Planning Conference in four Northwest Territories locations and through feedback received in writing and by phone.

"In setting the schedule, we wanted to ensure that people affected by the project have full opportunity to participate in the review process," said National Energy Board Chairman and CEO Kenneth Vollman, one of three NEB members selected for the Mackenzie Gas Project hearing.

Vollman noted that the schedule is coordinated with the environmental assessment process conducted by the Joint Review Panel for the Mackenzie Gas Project (JRP). A Cooperation Plan designed to reduce regulatory duplication and provide clarity of process was signed in 2002.

The JRP focus is on the environmental, socio-economic, and cultural issues of the project. The NEB will consider all other issues including engineering, safety and economic matters and will make a decision on whether the project is in the public interest after receiving the JRP's report and the response to it from the Government of Canada.

The National Energy Board is an independent federal agency that regulates several aspects of Canada's energy industry. Its purpose is to promote safety and security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development, and trade.

Visit the NEB website for the full hearing schedule.

Government establishes group to guide consultation for oil sands environment and development policy

Edmonton -- A stakeholder consultation group that includes representatives from environmental organizations, First Nations, industry and government is being asked to revise plans for consulting on policy principles for Alberta's mineable oil sands area.

"I've heard the desire of Albertans to discuss how we develop this valuable provincial resource in a way that protects and sustains the environment," said Environment Minister Guy Boutilier. "Stakeholders are also expecting us to move forward in a more open and collaborative manner."

Working with the Cumulative Environmental Management Association and other stakeholders, the steering group will review and recommend how consultation on policy principles for the oil sands area should proceed. As part of this process, workshops planned for January and the Internet consultation to gather feedback on the draft Mineable Oil Sands Strategy will be cancelled.

"Incredible development is going on and is forecast for this area. With some $80 billion worth of projects already announced, this area is key to the energy security of Alberta and Canada," said Energy Minister Greg Melchin. "There is a need to review our policy principles, but how we engage with Albertans to develop them is equally important."

"Working in partnership with key stakeholders is the best way to find solutions and ensure the public has confidence that development is sustainable," said Sustainable Resource Development Minister David Coutts.

The group is to deliver a final report to government by March 31, 2006. That report will help determine how consultation on policy development for this area moves forward. A backgrounder is available on the Government of Alberta website.

December 19, 2005

Federal Government Proposes Eliminating from Environmental Assessment Projects with Insignificant Impacts Seeks Public Comment

Ottawa -- The Canadian Environmental Assessment Agency invites the public to comment on proposed amendments to the Exclusion List Regulations under the Canadian Environmental Assessment Act. Comments received by January 31, 2006 will be considered when preparing the regulations for final approval.

The proposed changes would significantly reduce unnecessary environmental assessment screenings and redirect human and financial resources to projects with the potential to cause significant environmental effects. Exempted projects include undertakings involving structures such as buildings, fences and other associated facilities, leases within national park communities, road widening projects and railway crossings.

The amendments were determined following extensive consultations over the past several years with federal departments and agencies that must ensure environmental assessments are conducted when required by the Act. Also, the Regulatory Advisory Committee (RAC), a multi-stakeholder advisory group to the federal Minister of the Environment and Minister responsible for the Canadian Environmental Assessment Agency, was directly involved in developing the amendments. A RAC sub-committee examined an early draft and prepared a report including recommendations.

The proposed amendments were published in the Canada Gazette, Part I on December 17, 2005.

December 14, 2005

Alberta strengthening provincial disaster response system

Edmonton -- Alberta will have a world-class system for managing risks and responding to emergencies, including environmental disasters, once the recommendations of the Environmental Protection Commission are implemented. The Commission made 10 recommendations to the province when it delivered its final report to Alberta Environment Minister Guy Boutilier and Alberta Municipal Affairs Minister Rob Renner.

"The Environmental Protection Commission has done an incredible job of looking at Alberta's overall emergency management and response capacity. They've told us that there's a lot of good work being done and we should build on our strengths," said Boutilier. "Where we can, we will take immediate action on their recommendations."

The Commission told the government that the challenges of a growing economy and population mean the province needs a stronger oversight capacity in order to ensure that the right response is triggered during an emergency, particularly environmental emergencies. Alberta Environment is taking immediate steps to set up an environmental emergency support team and will work with Alberta Municipal Affairs and other departments over the coming months to examine how to implement the rest of the Commission's recommendations.

The Commission recommended that an agency responsible for a comprehensive, all-hazards approach to emergencies, disasters and security be created within the Alberta government, reporting to Executive Council. The recommendations also include establishing a one-window emergency call centre; identifying "at risk" water bodies and other environmentally sensitive areas; adopting an Incident Command System; and increasing joint emergency response training exercises for all emergency responders.

The Commission was established by Boutilier after the CN derailment and spill at Lake Wabamun to review and make recommendations on Alberta's ability to respond to environmental incidents. The Commission's report, Learning the Lessons and Building Change, is available online or by calling Alberta Environment's Information Centre at 780-427-2700.

December 4, 2005

Report pitches Mackenzie Valley Highway to Canadian Arctic

Petroleum News -- In a government report released Nov. 29, Premier Joe Handley and Transportation Minister Michael McLeod made a pitch for federal government funding to complete the "missing link" in Canada's highway network by filling the 500-mile gap from the Arctic Ocean to the Northwest Territories' existing road system.

Completing to the tiny Arctic port of Tuktoyaktuk would cost about C$700 million and replace winter roads that see trucks operate on ice-covered rivers and frozen ground, which the report says is endangered by global warming.

Limited transportation inefficient

"The existing limited transportation window makes development and exploration activities expensive and inefficient," the report said. Handley has also talked about turning Tuktoyaktuk into a deepwater port in anticipation that a reduced freeze-up will open the way for more ships to use the Northwest Passage.

In addition, the NWT government wants C$162 million to upgrade its existing highway infrastructure in answer to the growing demands of resource development and Canada's fast-growing economy.

McLeod said a road to the Arctic Ocean would support resource development along the Mackenzie Valley and the Beaufort Delta, where oil and gas exploration is staging a comeback, partly in response to the proposed C$7 billion Mackenzie Gas Project, as well as northern sovereignty, emergency response and economic and social development.

November 23, 2005

Increasing environmental damage in Alberta's oilsands needs to be mitigated

CALGARY (CP) -- Increasing environmental damage in Alberta's oilsands needs to be mitigated by forcing new projects to meet performance hurdles and ending "incredibly low'' royalty rates, the Pembina Institute said Wednesday.

The combined implications of about $100 billion worth of committed investment in northern Alberta's oilsands will have a severe effect on the boreal forest, the water and air quality, the environmental policy group said in a new report, Oil Sands Fever: The Environmental Implications of Canada's Oil Sands Rush.

Findings in the Pembina report include:

• Natural gas consumption in the oilsands to triple current levels of 600 million cubic feet per day by 2012.
• Greenhouse gas emissions to double or triple over the next decade alone.
• Water requirements for current mining operations are approved to use 349 million cubic metres of water from the Athabasca River, three times more than the municipal requirements of the city of Calgary.
• Potential loss of habitat for boreal forest wildlife as service roads, infrastructure built for oilsands wells that use steam-assisted technology.
• Oilsands 'footprint' expected to grow from 400 square km of boreal forest in 2003 to 2,000 square km, including currently planned development.

The Pembina report also calls for an end to Alberta's royalty regime which allows energy companies to pay a one per cent royalty until all costs of their projects are recovered, at which time the rate rises to 25 per cent of net revenues.

November 6, 2005

Industry, environment clash in oil sands

Gary Park (Petroleum News) -- The Alberta government has outlined wide-ranging changes to its management of the oil sands sector with a plan that critics say has put industry ahead of the environment. The draft Mineable Oil Sands Strategy gives the "highest priority" to mining within a single development zone for the vast northern Alberta region, rather than giving equal weight to all resources, such as forestry, rivers and wildlife.

Energy Minister Greg Melchin said the government wants a strategy to "help coordinate development in this area. "The proposed (strategy) will provide regulators, industry and the public with a clearer understanding of how development and land reclamation will be managed in the mineable development zone," he said.

A consultation process with five Athabasca Tribal Council First Nations and the public will start in January. The need for a policy is being driven by forecasts that oil sands production could grow five-fold to 5 million barrels per day over the next 25 years.

Environmental groups unhappy

However, environmental groups are unhappy that the government is proposing a fundamental shift that puts oil sands development ahead of environmental concerns. The Alberta-based Pembina Institute for Appropriate Development said the government is moving away from its past practice of striking a balance between the two and offering no compensation for degradation of the environment.

It said that until now oil sands mining has only been allowed on the condition that rivers remain intact, the integrity of watersheds is maintained and wildlife corridors are preserved. Institute spokesman Chris Severson-Baker estimated that 725 square miles of Alberta's boreal forest will be written off, affecting people who live, fish and hunt in the area.

He speculated that the change is prompted by conflict between the mandates of Alberta's energy, environment and sustainable resource departments, who share responsibility for the oil sands. Severson-Baker said it appears that energy has won the debate.

October 31, 2005

A new Alberta law requiring drivers to slow down when passing emergency vehicles and tow trucks comes into effect October 31

The new law, which doubles the fines for speeders, will make roads safer for police officers, firefighters, ambulance workers, tow truck operators and construction workers, as well as motorists.

Motorists must slow down to 60 kilometres per hour, or less if the posted speed limit is lower, when passing emergency vehicles or tow trucks stopped with their lights flashing. Fines will be doubled for speeding in this situation.

If there are two or more traffic lanes in the same direction as the emergency vehicle or tow truck, passing vehicles need only slow down in the lane immediately beside the stopped emergency vehicle. Vehicles traveling in other lanes, including oncoming lanes, may maintain their speed but should proceed with caution.

In construction zones, motorists must observe the posted speed limit at all times. Fines for speeding through construction sites where workers are present will be doubled, even if the workers are behind equipment or not immediately visible.

Other changes were made to the Traffic Safety Amendment Act, 2005, including allowing police to seize a vehicle, for 24 hours, that is used for racing or driving on a bet, where public safety is at risk.

October 18, 2005

NEB to hold a pre-hearing planning conference regarding the Mackenzie Gas Project

Canada NewsWire via COMTEX -- The National Energy Board (NEB) has announced that it will hold a Pre-hearing Planning Conference (Conference) in the Northwest Territories during the weeks of 5 and 12 December 2005. The purpose of the Conference will be to:

• provide information on the NEB's role throughout the lifecycle of a pipeline and on the NEB hearing process for the MGP project; and
• hear parties' views on shaping certain parts of the NEB hearing process to meet the needs of the participants.

Persons can participate in the Conference by sending in written comments, speaking with NEB staff or attending one of the following four sessions: Inuvik (5 December), Yellowknife (6 and 7 December), Fort Good Hope (12 December) and Fort Simpson (13 December).

This News Release is available on the NEB's Web site at http://www.neb-one.gc.ca.

October 5, 2005

Canada needs plan to secure natural gas for industry, consumers

EDMONTON (CP) -- With natural gas prices on the rise and supplies declining, it's time to forge an energy strategy that puts the needs of Albertans and Canadians ahead of exports to the United States, says a new report by the Parkland Institute.

The University of Alberta think-tank warns that failure to act will hurt Canada's petrochemical industry and doom consumers to years of sky-high home heating costs. The report released Wednesday calls on Canadians to engage in a serious debate on developing an energy security strategy, including getting out of key provisions of the North American Free Trade Agreement (NAFTA) that guarantee gas supplies to the U.S.

Gibson said Canada currently exports about 55 per cent of its natural gas production to the U.S. even though the province only has about nine more years of conventional reserves. The report says Alberta government policies that favour the export of raw natural gas hurt petrochemical plants that need affordable supplies of feedstock such as ethane for manufacturing products.

The report calls on the Klein government to place a moratorium on increased energy exports, including new pipelines. It also calls for reinstating a policy that gas must be stripped of petrochemical feedstock before it is shipped to the U.S. Gibson said the report does not advocate a national energy program similar to the one brought in by Ottawa in the 1980s that cost Alberta billions in revenue.

September 18, 2005

Canada's upstream wants U.S. workers

Gary Park (Petroleum News) -- Drilling costs driven up by labor shortage; Alberta expected to need 40,000 additional skilled workers over next five years

Manpower shortages are cutting a swath through the Canadian oil patch, sending drilling costs higher by 10 to 25 percent a year and prompting an appeal for U.S. trade union locals to send 3,000 workers to the oil sands region of northern Alberta.

Things are so grim that Paul Ziff, chief executive officer of consulting firm Ziff Energy Group, raised an alert about the economic viability of the Western Canada Sedimentary basin as drilling and completion costs skyrocket. With the oil sands sector poised to explode out of the gates, it is expected that Alberta will need 40,000 skilled trades people over the next five years in addition to the 160,000 now available. In fact, contractors no longer believe that they can count on the domestic, or even the North American work force to meet the needs of a multi-billion dollar construction program.

Word has leaked out that the United Association of Plumbers and Pipefitters is trying to organize a pool of up to 3,000 U.S. union members who can be shipped to Canada at short notice. The Christian Labor Association of Canada estimates it could find work for 3,000 to 4,000 workers. And Ledcor Industries has government permission to import foreign laborers, despite a brewing controversy over whether those workers will be hired at reduced wages and conditions, driving unions off the job sites. However, a spokesman for the plumbers and pipefitters union said Eastern Canadians are turning down the chance to work in northern Alberta, forcing employers to consider paying transportation costs.

Canadian Natural will recruit overseas

Canadian Natural Resources has permission to recruit from overseas for its C$10.8 billion Horizon project and has built an airstrip at the site capable of handling Boeing 737s to reduce the travel time.
The consequences have been building for years, with Ziff Energy Group estimating that the cost of drilling and well completion has climbed to C$3.80 per thousand cubic feet equivalent from C$1.90 in 1995; gas drilling accounts for about 80 percent of Western Canada's upstream activity.

September 15, 2005

Alberta regulator releases report on province's oil and gas reserves

CALGARY (CP) -- Production from Alberta's oilsands is expected to more than double over the next 10 years according to a report from the Alberta Energy and Utilities Board entitled Alberta's Reserves 2004 and Supply/Demand Outlook for 2005-2014.

Continuing high levels of development in northern Alberta's oilsands resulted in last year's bitumen production increasing by 14 per cent over 2003 levels and by 63 per cent from the year 2000. According to the energy board's report, annual bitumen production will more than double from the current 1.1 million barrels per day to 2.6 million barrels per day by 2014.

Alberta has 1.6 billion barrels of remaining conventional oil reserves with 2004 production declining five per cent from 2003 levels to 224 million barrels per day. To put it into perspective, the oilsands are estimated to contain 174.1 billion barrels of bitumen reserves.

"The size of that reserve would put Canada in about second place in the world behind Saudi Arabia in terms of total oil reserves,'' said Curran. "At current production rates, that's about 400 years of supply,'' he said.

The forecast for bitumen production closely mirrors figures from the Canadian Energy Research Institute. CERI is forecasting production to be 2.5 million barrels per day by 2014 said global energy analyst Vincent Lauerman.

August 8, 2005

National park expands boundaries

Dorothy Westerman (Northern News Services) -- An 1,850 square kilometre parcel of land has been added to the Tuktut Nogait National Park, extending it into the Sahtu region. The park, beginning at the northwest corner of the territories near Paulatuk, now covers 18,200 square kilometres of land.

Tuktut Nogait was first established in 1996 through a signing between the federal government and the Inuvialuit Regional Corporation.

"This is a land we need to protect and be very careful about," Environment minister Stephane Dion said after signing an impact and benefit plan with the Sahtu First Nations. Dion said the region will benefit from the resulting research conducted in the parkland.

"It's about fisheries, it's about the impact of pesticides and the entire ecosystem," he said, describing the research objectives. "It is a good coincidence that the Polar Year is coming. We will need more guides because the park is to protect wildlife, but also for people to learn and enjoy,"
Dion said.

Alan Fehr, a superintendent for Parks Canada based in Inuvik, said the addition has helped complete the national park and protect the watershed region of the Hornaday River as well as more of the calving grounds of the Bluenose caribou.

August 1, 2005

Victorious Precedent Set for Northern NGOs

Yellowknife -- A major precedent was set when the Mackenzie Valley Environmental Impact Review Board (Review Board) rejected Canadian Zinc Corporation's request to remove a non-governmental organization (NGO) from the environmental assessment process.

In mid-July, Canadian Zinc sent a letter to the Review Board requesting a ruling to remove the Northwest Territories Chapter of the Canadian Parks and Wilderness Society (CPAWS-NWT) from the environmental assessment process for proposed drilling activities at their Prairie Creek property. Yesterday, the Review Board released their reasons for decisions and rejected the company's claim that CPAWS-NWT's "contribution will not be useful and will not be designed to help or facilitate the EA process."

A submission was made by Sierra Legal Defence Fund, on behalf of CPAWS-NWT, to the Review Board to respond to the Canadian Zinc's request. The submission argued NGOs have a critical role in the environmental assessment process, which includes ensuring free public debate around developments in the Northwest Territories. Submissions supporting CPAWS-NWT maintaining party status were also received by the Review Board from the Dehcho First Nations, Parks Canada, and the Department of Industry, Tourism and Investment, Government of the Northwest Territories.

In its decision, the Review Board noted the environmental assessment process is intended to ensure the concerns of the residents of the Mackenzie Valley, as well as organizations with an interest in the northern environment, are taken into consideration. The Review Board also "encourages interested parties to participate in its proceedings, to share their perspectives, concerns and information."

CPAWS-NWT is concerned that the proposed Prairie Creek mine, located on a tributary to the South Nahanni River, threatens Nahanni National Park Reserve, a UNESCO designated World Heritage Site and the proposed park expansion. More information is available at www.cpaws.org/action/nahanni.php.

July 19, 2005

CAPP releases 2005 Canadian Crude Oil Forecast

The Canadian Association of Petroleum Producers (CAPP) is projecting significant potential growth in crude oil production by 2015 as released in its 2005 Canadian Crude Oil Production and Supply Forecast.

Total Canadian production is projected to increase from the current 2.6 million barrels per day to reach 3.9 million barrels per day (b/d) by 2015. The 1.3 million b/d growth in production represents an increase of 50 per cent over the annual average level of production recorded in 2004.

Growing production will serve Canada's domestic market, export markets in the United States and will help meet growing global oil demand.

The primary source of Canada's growing crude oil supplies is the expected development of Alberta's vast oil sands reserves. Oil sands production, which now exceeds the 1.0 million b/d plateau, is forecast to almost triple by 2015 to almost 2.7 million b/d. With 175 billion barrels reserves, Alberta has the second largest petroleum deposit in the world.

In Western Canada, conventional oil currently accounts for more than one of every two barrels of oil produced. While there has been a gradual overall decline since the late 1990s, the lifespan of Canada's conventional oil resources continues to be extended from earlier forecasts through advances in technology.

Looking forward, crude oil produced from oil sands will more than offset declines in conventional production. The shift in the source of production means that by 2015 approximately three out of every four barrels of oil produced in Canada will come from oil sands.

The forecast growth in production in Western Canada will exceed existing pipeline capacity used to deliver crude oil to markets. The growing oil supply will require construction of new pipeline capacity to ensure western Canadian crude can be transported to markets in Canada, the U.S., and potentially Asia. A number of pipeline companies are currently exploring opportunities for new pipeline projects to meet the forecast growth in oil supply.

July 11, 2005

Landmark grizzly bear study in Banff and Kananaskis complete

(Parks/Wildlife News - University of Calgary) -- Maintaining a sustainable human-caused death rate will be critical and challenging but is necessary for bear survival in the Bow Valley, report concludes

One of the most comprehensive and long-lasting research projects on grizzly bears is now complete, with the release of the final report of the Eastern Slopes Grizzly Bear Project (ESGBP) today.

Goals and recommendations contained in the ESGBP final report focus on managing and monitoring human-caused mortality of adult female grizzly bears. The report says that a particularly challenging aspect of this will be managing habitat used by grizzly bears in a manner that allows bears to live without dangerous risk of mortality in and around some of the fastest-growing communities in Canada.

The report shows where and suggests how to do this in a series of recommendations, including:

• Maintaining and restoring grizzly bear habitat throughout the region.
• Minimizing conflicts between bears and people by enhancing public education and wildlife law enforcement.
• Restricting public use of some areas during times of high bear activity.

The 248-page report summarizes a team of University of Calgary-based researchers' 11-year study of grizzly bears in and around Banff National Park and Kananaskis Country and stresses that achieving a sustainable, scientifically documented, human-caused grizzly bear mortality rate is key to the grizzly's future.

Part of the ESGBP demographic research was published in the January issue of the Journal of Wildlife Management. It showed that in order to maintain a non-declining population, survival of adult female bears from year to year needed to be at least 91 per cent or greater. This was achieved in the Bow River Watershed of Banff National Park and Kananaskis Country from 1994 to 2002 but the survival rate fell to 88 per cent in 2003 and 71 per cent in 2004.

The final report identifies nine goals and related management recommendations that, if achieved, will support a future for grizzly bears. The recommendations are prioritized into steps that should be taken within two or five years and assume that the three major jurisdictions involved in grizzly bear management in the study area: the federal government, which manages Banff, Yoho and Kootenay National Parks and the Alberta and British Columbia governments, want to support a non-declining grizzly bear population.

The report is published and is available to government agencies and the public for reference, review and guidance for grizzly bear management. More than 225 individuals and 55 supporting organizations contributed to the East Slopes Grizzly Bear Project.

Principal participants included the U of C, Parks Canada, the Government of Alberta (Alberta Energy and Utilities Board, Sustainable Resource Development, Community Development and Kananakis Country), the Government of British Columbia (Fish and Wildlife); conservation, community and recreation groups; the oil and gas industry; the forest products industry; the land development industry and the cattle industry.

June 7, 2005

Government of Canada Announces $9.2 Million to Help Conserve Species at Risk and Their Habitat

OTTAWA -- The Honourable Stéphane Dion, Minister of the Environment and the Honourable Geoff Regan, Minister of Fisheries and Oceans announced $9.2 million in funding to help protect species at risk and their habitat. The funding supports 153 Habitat Stewardship Program (HSP) projects across Canada.

The Habitat Stewardship Program for species at risk is in its sixth year of operation. Its goal is to contribute to the recovery and protection of species listed under the Species at Risk Act as endangered, threatened or of special concern. Since Program inception, Canadian stewardship projects have benefited the habitat of hundreds of species at risk.

“The Habitat Stewardship Program enables Canadians to become actively involved in stewardship projects to help secure and restore healthy habitat for species at risk,” said Minister Dion, Minister. “The conservation of species is critical to guide the way to a healthier environment that in turn will allow for Canada’s long-term economic well-being.”

The Habitat Stewardship Program is a partnership-based conservation initiative sponsored by the Government of Canada. The Program is managed cooperatively by Environment Canada, Fisheries and Oceans Canada and Parks Canada, and is administered by Environment Canada. It is one of three major components in the Government of Canada Strategy for the Protection of Species at Risk. The other two components are the Accord for the Protection of Species at Risk, endorsed by the provinces, territories and the Government of Canada, as well as the Species at Risk Act.

June 3, 2005

NEB releases an Energy Market Assessment Report on the Outlook for Electricity Markets 2005-2006

(Canada Newswire) -- The National Energy Board today issued an Energy Market Assessment (EMA) titled Outlook for Electricity Markets 2005-2006. The Board has found that there will be adequate supply of electricity to meet domestic demand in all Canadian regions in the time frame 2005-2006. However, actions must be taken soon to ensure supply adequacy in the future.

The analysis developed in this EMA leads to the following conclusions:

• Electricity supply is adequate in all regions during the 2005-2006 period; however, tight supply conditions could emerge as early as 2007.
• Alternative and renewable resources and demand management are becoming more important in addressing air quality issues and supply adequacy.
• Market uncertainties could delay timely investment and development of new infrastructure.
• In all regions, there are forces that will exert upward pressure on electricity prices.
• Exports and imports continue to benefit Canadians; interprovincial energy transfers should be further explored.

Ken Vollman, Chairman of the Board said that "in developing the conclusions for this EMA, the Board found an opportunity to formulate recommendations in five areas. The recommendations pertain to: policy clarity and predictability; electricity pricing; the need for diversity of generation sources; incentives for alternative and renewable energy; and expansion of east-west interconnections."

The EMA provides an analysis and discussion of Canadian electricity markets, with an emphasis on the main drivers influencing near-term trends in generation, demand, infrastructure additions, inter-regional and international trade and pricing. The report also includes an update of industry restructuring activities in Canada. While the focus is on the short-term (2005-2006), the report also identifies and discusses current issues that may have longer term effects.

May 25, 2005

Pollution rising in Canada, declining in U.S., watchdog finds Canadian industries emit more lead

Jeff Sallot (The Globe and Mail) -- Pollution has been increasing in Canada even as it has been declining in the United States, according to a report by an international environmental watchdog panel that challenges the image many Canadians have of their stewardship of the continent's land, air and water resources.

The direct release of dangerous pollutants -- including lead -- into the environment increased by 5 per cent in Canada during a five-year study period, the Commission for Environmental Co-operation of North America reported yesterday.

During the same period, on-site pollution levels in the United States decreased by 14 per cent, said the commission, which the governments of Canada, the United States and Mexico established to monitor North American environmental trends.

The report, entitled Taking Stock, looked at data in the United States and Canada for the period from 1998 to 2002, the last year for which complete sets of comparable figures were available.

Canada is so big and the population so small in comparison with the United States, that Canadians often do not get a clear picture of just how dirty their industries can be, environmental groups say.

The study's conclusions, therefore, will surprise those who believe the rhetoric of Canadian politicians, said John Bennett of the Sierra Club of Canada.

Environment Canada says the picture in Canada is not all bleak. In a news release, Environment Minister Stéphane Dion said the report actually shows a 13-per-cent reduction in the "release" of pollutants. To arrive at that figure, though, Canadian officials factored in the amount of pollutants disposed of in off-site landfills.

April 12, 2005

Environment Minister Announces Decision on the Beaufort Sea

(CNW Telbec) -- The Honourable Stephane Dion, Minister of the Environment, announced that the proposed Beaufort Sea Exploration Drilling Program in the Northwest Territories does not require further assessment by a review panel or mediator under the Canadian Environmental Assessment Act. The Minister referred the project, proposed by Devon Canada Corporation, back to the lead responsible authority, the National Energy Board (NEB), as well as to Fisheries and Oceans Canada, Transport Canada, and Indian and Northern Affairs Canada for appropriate action.

The Minister has determined that the project is not likely to cause significant adverse environmental effects with the implementation of the mitigation measures outlined in the comprehensive study report. The Minister based his decision on:

• the comprehensive study report, including the conclusions and recommendations, submitted by the NEB;
• public comments received during the 30-day consultation period, and the NEB's response to the comments;
• the determination of the Environmental Impact Screening Committee for the Inuvialuit Settlement Region;
• the implementation of mitigation measures; and
• the implementation of a follow-up program.

Devon Canada Corporation is proposing to conduct an exploratory drilling program to evaluate potential natural gas reservoirs in the southern Beaufort Sea, north of the Mackenzie River Delta. The exploration drilling would be conducted during the winter, within the landfast ice zone, from one of three potential drilling platform systems: a steel drilling caisson, a landfast tender-assist drill unit; or an ice island platform. Devon is currently planning to drill the first well during the winter of 2005-2006, and one well each subsequent winter season, completing the program in the winter of 2008- 2009.

The Canadian Environmental Assessment Agency administers the federal environmental assessment processes, which identify the environmental effects of proposed projects and measures to address those effects, in support of sustainable development.

April 6, 2005

National Energy Board releases 2004 Annual Report

CALGARY (Canada Newswire) -- The National Energy Board, in its 2004 Annual Report released today, says the Canadian oil pipeline infrastructure is being strained to the limit. As a result, plans are being made for both expansions and new pipelines to accommodate growing oil sands production.

While there is some spare capacity on existing natural gas transportation infrastructure, applications for new pipelines to deliver production from new sources continue to be filed. In October, the Board received five applications from Imperial Oil Resources Ventures Limited and other applicants for the construction and operation of the Mackenzie Gas Project in Northern Canada.

The theme of the National Energy Board's 2004 Annual Report is protect and enable.

"In harnessing our energy resources, we must protect the things that are important to Canadians: the integrity of our environment; respect of individual property; public safety and security; and effective market functioning," said Chairman Ken Vollman.

The concept of enabling implies a responsibility to provide efficient regulatory processes and practices so that projects found to be in the public interest can proceed on a timely basis.

The National Energy Board is an independent federal agency that regulates several aspects of Canada's energy industry. Its purpose is to promote safety, security, environmental protection and economic efficiency in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development and trade.

April 4 , 2005

Millenium Study Calls Environmental Degradation 'Economic Suicide'

LONDON -- The just-released Millennium Ecosystem Assessment (MA) report has put a spotlight on the value of the world's forests, wetlands, coral reefs and other ecosystems, showing how important they are for fighting poverty and delivering sustainable development.

Taking an approach never previously used toward conservation issues, the report points out that ecosystems and the services they provide are financially significant, and that to degrade and damage them was tantamount to economic suicide.

"Any progress achieved in addressing the goals of poverty and hunger eradication, improved health and environmental protection is unlikely to be sustained if most of the ecosystem service on which humanity relies continue to be degraded," the MA report warned.

It also stated that scientific evidence showed that the harmful consequences of this degradation would grow significantly worse over the next 50 years if world leaders and businesses did nothing to prevent it.

Although evidence remains incomplete, the assessment contains enough for experts to warn that the ongoing degradation of over half of the ecosystems examined is increasing the likelihood of potentially abrupt changes that will seriously affect human well-being.

This includes the emergence of new diseases, sudden changes in water quality, the creation of "dead zones" along the coasts, the collapse of fisheries and large shifts in regional climate.

"This assessment gives us, for the first time, an insight into the economic importance of ecosystem services and some new and additional arguments for respecting and conserving the Earth's life support systems."

The scope of this assessment reaches right around the globe -- according to its findings, a total of 60% of the ecosystem services that support life on earth are currently being degraded by human activity or are being used unsustainably, presenting a serious road block to the Millennium Development Goals agreed to by the world's leaders at the United Nations in 2000.

View the report on the Millennium Ecosystem Assessment website.

March 16, 2005

Canada Joins International Climate Change Partnerships

Oil and Gas News -- The Honourable Stéphane Dion, Canada’s Environment Minister, and the Honourable R. John Efford, Minister of Natural Resources Canada, announced today that Canada has joined both the Renewable Energy and Energy Efficiency Partnership (REEEP) and the Methane to Markets Partnership at the G8 Energy and Environment Ministerial Roundtable. The goal of REEEP is to accelerate and expand the global market for renewable-energy and energy-efficient technologies.

It assists the governments of developing countries in creating regulatory policy frameworks which integrate renewables into the energy mix and help establish investment climates to encourage the development and use of renewable energy.  The partnership also assists with creating sustainable energy funds and financing models.

“Joining these partnerships will strengthen Canada’s ties to governments of industrialized, emerging and developing countries.  They will increase opportunities for our businesses and researchers involved in creating and commercializing clean energy technologies and practices in pursuit of a healthier global environment for Canada and the world,” said Minister Dion. “We shall put these innovations into action to cut emissions of greenhouse gases like CO2 and methane along with smog-causing pollutants and airborne toxics like mercury.”

The Methane to Markets partnership, for its part, aims to enhance international cooperation to advance the recovery and use of methane to improve energy security, economic growth, air quality and industrial safety; and reduce greenhouse gas emissions throughout the world. It focuses on developing strategies and markets, implementing frameworks for action and removing barriers to the design of collaborative projects between countries. 

“Our membership in both REEEP and Methane to Markets enhances Canada’s commitment to energy innovation in the fight against climate change. Budget 2005 showed our commitment to tackle climate change with more than $2 billion over 15 years in tax and production incentives for renewable energy including wind, solar and land-fill gases,” said Minister Efford.  “Canada is becoming a renewable energy leader and joining these partnerships will further speed our global emergence.”

February 17, 2005

CAPP Releases Oil Supply, Markets and Pipeline Summary Report

The Canadian Association of Petroleum Producers (CAPP) released its Crude Oil Pipeline Expansion Summary report today summarizing CAPP's assessment of the need for additional oil pipeline capacity as well as the changing mix of crude oil types in light of forecast supply growth.

This 17-page report reviews current production and supply forecasts, existing crude oil pipeline infrastructure, opportunities for new market development, requirements for new pipeline capacity and tolling options for pipeline development. The focus of the document is the importance of timely expansion rather than simply explaining the need for new pipeline capacity to move growing supply to existing and new markets.

View the Oil Supply, Markets and Pipeline Summary Report online.

January 27, 2005

Trans-Canada to expand

By Bryce Pudwell (Star Reporter) - Parks Canada approved a development permit for Phase 111B of the Trans-Canada Highway (TCH) twinning project in Banff National Park, recently. Phase 111B will eventually see the twinning of 33 km of the highway between Castle Junction and the Alberta/B.C. border. Currently only 10 km is planned for construction on the highway, east of Lake Louise.

"Right now, only $50 million is allocated by Infrastructure Canada (IC) for the 10 km construction," says Michelle Macullo, Media Relations for Parks Canada. The first $5 million of IC's money was released early in 2004 for environmental assessment, preliminary design, and consultation on the project.

In early 2005, Parks Canada will take the next step with a submission to the Treasury Board of Canada to release the other $45 million for the 10 km construction. Macullo states that there are three goals to the phase - to improve motorist safety, increase efficient movement of people and goods, and reduce wildlife and traffic conflicts by bringing in environmental improvements.

Parks Canada hopes to have one third of the 35 km stretch from Castle Junction to the Alberta/B.C. border twinned by 2008. Parks Canada will make small improvements to the other two thirds, until funding is approved to continue twinning.

"Parks will be chip-sealing the roads, improving safety at intersections, using better techniques for winter de-icing, installing better signage and reworking some tight corners, until more funding is allocated for twinning," says Macullo. Parks Canada estimates it will cost roughly $160 million to twin the remaining 33 km to the Alberta/BC border.

January 18, 2005

Roads, infrastructure get $130M boost in N.W.T.

YELLOWKNIFE - The federal and N.W.T. governments announced $90 million in new funding for transportation in the territory Tuesday morning as Ottawa's infrastructure minister continued his tour of the North.

John Godfrey and the territory's transportation minister, Michael McLeod made the announcement in Yellowknife. The money is for highway improvements and construction of a bridge over the Great Bear River.

It is intended to improve access to communities across the territory, including a major upgrade to the Mackenzie Valley Winter road and paving of the last gravel stretch of Highway 3 between Yellowknife and Rae.

McLeod says the new money will go a long way. "On a conservative basis we are roughly $186 million short of what we need in terms of investment in infrastructure in the communities," he said Tuesday. "So this is a really big step for us, it's good news."

The governments also announced a new program to boost community infrastructure funding in the territory. The Municipal Rural Infrastructure fund will see close to $40 million invested at the community level over the next five years. The money will be spent on anything from sewer and street upgrades to community sports facilities and tourism.

January 10, 2005

Canadian Arctic Resources Committee Releases Mapping Study of the Cumulative Effects of the Mackenzie Gas Project

In a study by the Canadian Arctic Resources Committee, a package of maps has been released that project the full scope of gas exploration and development that could occur in the onshore Mackenzie Delta, offshore Beaufort Sea and Colville Hills area of the Central Mackenzie Valley.

The purpose, said the committee's research director, Kevin O'Reilly, is to show the Mackenzie project is "not simply a case of putting a thin ribbon of steel down the Mackenzie Valley."

Visit the CARC website for links to the maps and files related to the study.

January 9, 2005

Natural gas pipeline to Vancouver Island scuttled

By Gary Park (Petroleum News) - Five years of work on plans to build a natural gas pipeline to Vancouver Island from the United States have collapsed, with the proponents unable to secure competitive gas supplies.

BC Hydro and U.S.-based Williams Gas Pipelines, joint partners in the Georgia Strait Crossing, said Dec. 20 they had cancelled plans for the C$340 million pipeline.

The Canadian portion of the 16-inch pipeline was designed to carry 96 million cubic feet per day to gas-fired electricity generation plants on Vancouver Island by October 2005. Gas was also destined for Williams' customers in northwestern Washington state.

The project had already experienced a rough ride in public hearings, with opponents citing a litany of concerns ranging from the impact on marine life, the dangers of a major earthquake under the southern Strait of Georgia and the project's economic justification.

An environmental review panel approved the project a year ago, but expressed concern about the pipeline's environmental effects, safety and reliability, suggesting any failure in the marine section could take months to fix.

In the end, BC Hydro decided that a "large capacity pipeline like GSX is no longer a competitive supply option because the large gas supply requirements it was designed to meet have not materialized," said Executive Vice President Dawn Farrell.

The alternatives to the Georgia Strait Crossing include plans by Terasen to build a thermal-electric plant near Nanaimo. Terasen had already argued GSX was unnecessary.