Pipeline News North: July 2015 by Pipeline News North

Newsflash: Oilsands a ‘tremendous asset’: Alberta premier JULY / AUGUST 2015

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Northeast poised for major growth

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Pacific NorthWest LNG and LNG Canada could be transformative for Northern B.C.’s economy; If either project moves forward, it would represent the largest-ever foreign investment in Canada’s history, and most of the economic activity within the county would take place in Northeast B.C. and on the West Coast. Pacific NorthWest LNG made a positive investment decision, while a decision will be made next year on LNG Canada.

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NUMBERS

The following figures were taken from the stories in this issue of Pipeline News North.

24: The number of conditions attached to LNG Canada’s Environmental Assessment Certificate. Story on Page 5. $36 billion: The approximate price tag of the Pacific NorthWest LNG project that was given a conditional gren light by project leader Petronas. Story on Page 7. 2017: The year that the National Energy Board (NEB) expects the oversupply of natural gas in North America to continue until. Story on Page 12. 5: The number of conditions Squamish Nation laid out for Woodfibre LNG to win its support. Story on Page 13.

10.5: The number of acres of canola it takes to power one pick-up truck consuming 50 litres of diesel a week for a year with biofuel. Story on Page 14.

150: The number of new jobs created after a mill closed since 2012 reopened in July. Story on Page 22.

$13.48 million: The Alberta government’s haul in July’s oil and gas land auction. Story on Page 18.

1,100: The population of Hudson’s Hope. Business owners there say strict worker camp policies are killing its economy. Story on Page 23.

US$50-$80: Breakeven WTI oil price for a 30,000 bbl-per-day SAGD project in Alberta with a capital cost of $900 million to $1.75 billion and 90 per cent capacity utilization. Story on Page 18.

2, 3: Fort St. John and Dawson Creek’s provincial rank, respectively, in rent costs this spring, according to the Canada Mortgage and Housing Corporation. Story on Page 28.

24: The number of permits by the Ministry of Forests, Lands and Natural Resource to BC Hydro to begin early work on the Site C dam. Story on Page 20.

$456 million: The total cost of Pattern Development’s Meikle Wind dedelopment, the largest wind energy project in the province. It’s 33 kilometres outside Tumbler Ridge. Story on Page 30.

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pnn ‘Enormous’ investment 5 in South Peace if LNG Canada goes ahead

Northeast poised 6 for major growth

Oilsands a 8 ‘tremendous asset’: Alberta premier Drilling in Northeast 12 likely won’t recover until 2017

Woodfibre LNG asks 13 for more time Carbon-conscious 14 carmakers look at plant in Chetwynd

Notley and Couillard 18 discuss Energy East

16 Hydro gets permits to start Site C construction 13 150 new jobs for Chetwynd mill 18 Businesses lament worker camp policy

20 Victoria plays its hand on LNG 22 Rare summer session called to debate LNG 21 Vancouver Islands’ Discovery LNG gets NEB approval for exports

While NDP seems 16 consultative on royalty review, some worry about possible increases Alberta sale draws 18 $13.48 million

18 Outlook healthy for oilsands development, says regulator

25 The high cost of high rent in Dawson Creek and Fort St. John 26 Look for PNN on Twitter @PipelineNN

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Published monthly by Glacier Ventures International Corp. Pipeline News North is politically independent and a member of the B.C. Press Council. The Pipeline News North retains sole copyright of advertising, news stories and photography produced by staff. Reproduction is prohibited without written consent of the editor.

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SOUTH PEACE

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‘Enormous’ investment in South Peace if LNG Canada goes ahead Mike Carter

Pipeline News North

A major liquefied natural gas (LNG) plant on the west coast has cleared an important hurdle, bringing the South Peace one step closer to “enormous” economic benefits. The B.C. government and Canadian Environmental Assessment Agency issued a conditional Environmental Assessment Certificate to LNG Canada Development Inc. June 17 for an LNG export terminal in Kitimat. Among the 24 conditions attached to the approval are requirements to offset impacts to ecologically important wetlands, consult the public and aboriginal groups and develop a socioeconomic effects management plan. The project is a joint venture of Shell Canada Energy (50 per cent), PetroChina (20 per cent), Korea Gas Corporation (15 per cent) and Mitsubishi Corporation (15 percent). The proponents say they plan to make a final investment decision (FID) in early 2016. LNG Canada is for the South

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Peace what Pacific NorthWest LNG is for the North Peace. “Honestly, the Shell facility I think has the bigger impact on our region than any of the others,” Dawson Creek Mayor Dale Bumstead told Alaska Highway News.

“Honestly, the Shell facility I think has the bigger impact on our region than any of the others.” — Dawson Creek Mayor Dale Bumstead “The industry guys have said to me for a long time that for every dollar they spend developing the downstream LNG industry on building the plant [roughly $25 billion to $40 billion at last estimate], they are going to spend $7 to $10 in the upstream,” he added. “It’s an enormous economic spend that is going to occur in our region.” See SOUTH PEACE on Page 10

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Northeast poised for major growth

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Pacific NorthWest LNG and LNG Canada could be transformative for Northern B.C.’s economy; if either project moves forward, it would represents the largest-ever foreign investment in Canada’s history, and most of the economic activity within the county would take place in Mike Carter, Jonny Wakefield Pipeline News North

Debbie Bruinsma Sales 250-785-5631 C: 250-262-7294 dbruinsma at ahnfsj.ca.ca

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Pacific NorthWest LNG will invest nearly $36 billion in a liquefied natural gas (LNG) export project in Northern B.C., the company announced. Project-leader Petronas and its partners sanctioned the project on two conditions: approval from British Columbia legislature, considered a formality, and the granting of an environmental assessment from the federal government.

The move represents a significant vote of confidence from the consortium, after months of uncertainty cast doubt on the probability of any of B.C.'s 19 proposed LNG projects moving forward. Major hurdles remain, however, particularly when it comes to winning the support of the Lax Kw’alaams band, on whose land the LNG terminal would be built. The project, if it does proceed, would be transformative for Northern B.C.’s economy. At $36 billion, it represents the largest-ever foreign investment in the province's history, and most of the economic activity within the

JULY 17, 2015

NORTH PEACE

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Northeast B.C. and on the West Coast. Pacific NorthWest LNG has a positive conditional investment decision, while a decision will be made next year on LNG Canada. country would take place in Northeast B.C. and on the coast. The gas would come from the Peace, where Petronas subsidiary Progress Energy is the largest holder of drilling rights in the Montney play. The company has drilled 215 natural gas wells and identified 13,000 more locations. Progress and other partners have already sunk $2 billion-plus per year into the North Montney gas basin, representing approximately 4,000 jobs, the company says. Thousands more would be needed to construct pipelines, wells and other infrastructure. See GROWTH on Page 27 R001622840

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ALBERTA

#oilsands

A worker is dwarfed as he walks into the mouth of a gigantic electric shovel used to dig up oil sands at the base of the Aurora mine of the Syncrude Canada Ltd. site in Alberta, Canada. The worker was preparing to replace the teeth of the electric shovel. Los Angeles Times/MCT

Oilsands a ‘tremendous asset’: ‘It’s a tremendous asset which has transformed Alberta into one of the world’s leading oil producers,” the premier added. “And I’m here today to emphasize that the province has a government determined to Speaking to a Stampede Investment Forum, Premier Rachel Notley said the oilsands “have really emerged as our international showpiece,” and characterized the resource as a “tremendous asset.” “For more than half a century, Albertans have been coming up with unconventional solutions for an unconventional resource,” she said, according to a text copy of her speech — media were not invited to attend the event, which was organized by the Alberta government, in partnership with Calgary Economic Development and the Canadian Association of Petroleum Producers. “This attitude of pushing the limits of what’s possible influences every aspect of the oilsands, from research and development to environmental manage-

ment to the service and support fields. “It’s a tremendous asset which has transformed Alberta into one of the world’s leading oil producers,” the premier added. “And I’m here today to emphasize that the province has a government determined to defend this advantage, by being constructive at home, and by building relationships around the world.” Notley said she understands that people are uncertain after the last election. “Whether you’re an Albertan or a long-time Alberta watcher, change at the top after so long can seem difficult,” she noted. “But we are working hard to make the transition as smooth as possible, and bring as much economic stability as we can, while we implement our plans.

“Those plans centre on living up to our promise to grow prosperity and create good jobs and conditions that benefit every Albertan,” Notley said. “We know there is only one way to succeed — and that’s by supporting a free, open, sustainable and increasingly diversified economy.” Job creators create jobs in the private sector, not government, she said. “And we will be honest, thoughtful partners to them,” she said. “We will maintain a warm welcome for investors and uphold their right to earn fair returns. “So Alberta will continue to be a healthy place for private investment under our government,” Notley added. This “definitely” applies to energy. “Expanding existing oilsands projects, establishing new ones and pio-

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ALBERTA

#oilsands

Alberta premier defend this advantage, by being constructive at home, and by building relationships around the world’ neering advanced technologies — all this requires spending on a large scale.” Under an NDP government, Alberta’s abundant oil and gas reserves “will remain wide open to investment,” Notley said. “We will maintain one of the most competitive tax systems in Canada,” she added. “Our government will boost exports by seeking out new relationships, strengthening old ones and enhancing Alberta’s environmental record.” When it comes to potential shifts, such as greenhouse gas emissions and royalties, “no one will be surprised by how our decisions unfold.” “Change will come after con-

sultations led by some of Alberta’s best minds, with all those who stand to be affected,” Notley said. “They will have every opportunity to share their perspectives. “There is so much riding on those decisions: the jobs that families depend on, the natural beauty surrounding us, and the inheritance we leave to our kids.” A confident industry, secure in the value of its investments, is vital to this process, the premier said. “After all, the energy sector needs stability to keep Albertans employed and to innovate as it confronts climate change. And I will not forget it.”

— Daily Oil Bulletin

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The site of LNG Canada's proposed facility would be located on 400 hectares of land in Kitimat. The project moved closer to becoming reality with environmental approval from the B.C. and federal governments. courtesy lng canada

SOUTH PEACE from Page 5 The LNG Canada terminal will be fed by TransCanada Corp.’s Coastal GasLink pipeline, which begins just west of Dawson Creek in Groundbirch. That could mean thousands of upstream drilling and pipeline jobs in and around Dawson

Creek. But it’s still too soon to bank on the project On top of the yet to be made FID, the project still requires federal regulatory approval from the Department of Fisheries and Oceans, Transport Canada and Environment Canada. It will also require permits from the

British Columbia Oil and Gas Commission (OGC), which are currently under review. TransCanada spokesperson Davis Sheremata says his company views the latest regulatory approval as an important step in the process. “In terms of Coastal GasLink, we con-

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Dawson Creek Mayor Dale Bumstead said the proposed LNG Canada project would have an "enormous economic" impact on the South Peace.

tinue to progress,” he said in an email. Applications for the pipeline’s permits are also in the review stages with the OGC. “We hope to hear from them soon,” Sheremata added. “[We are] working to be ready to begin construction in 2016, conditional on regulatory approvals and a positive in-

vestment decision by LNG Canada. The pipeline is expected to be in operation in time to supply gas as required to meet the in-service date of ... the LNG facility in Kitimat.” Should LNG Canada go ahead, the plant is expected to begin exports by 2021. dcreporter@dcdn.ca

courtesy lng canada

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BRITISH COLUMBIA

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Drilling in Northeast likely won't recover until 2017

Mike Carter

Pipeline News North

The National Energy Board (NEB) expects the oversupply of natural gas in North America to continue until at least the end of 2017. The NEB said this will hurt the competitiveness of Canadian natural gas and gas exports. But the board doesn’t think it will have any effect on B.C.’s proposed liquefied natural gas (LNG) projects and related pipelines. However, drilling in Northeast B.C. is not likely to rebound to last year's numbers until the end of 2017, NEB spokesperson Craig Loewen said. “Deliveries into a future major LNG project will likely be at least five years away and the start of actual construction of an LNG project would provide the impetus for greater drilling in Western Canada in the intervening years,” Loewen told Alaska Highway News. The Short Term Natural Gas Deliverability 2015-2017 report examines factors that impact natural gas supply Melanie Stogran

in Canada in the short term, and presents an outlook for Canadian natural gas from the beginning of 2015 to the end of 2017. It presented high-, mid- and low-price scenarios. In each case the outlook showed that the North American gas market will continue to be oversupplied, as deliverability outpaces growth in demand. “The assessment finds that despite the declining prices in the second half of 2014, Canadian and U.S. natural gas deliverability continued to increase,” an NEB release said. The board notes that new drilling could occur in Western Canada as producers attempt to establish natural gas reserves and assess their ability to provide supplies for proposed liquefied natural gas export projects. "Everyone is just waiting for any final investment decisions for LNG," NEB's Director of Energy Supply said. "It's hard to forecast when we don't know exactly what's going to happen in the next few years and what producers are planning." dcreporter@dcdn.ca

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Woodfibre LNG asks for more time After Squamish Nation sets five conditions for support of LNG project, Woodfibre requests suspension of EA process

Jennifer Thuncher Squamish Chief

Days after the Squamish Nation laid out its top five conditions that have to be met before it will give its nod to the proposed Woodfibre LNG facility in Squamish, the company pushed pause on its Environmental Assessment Review Period. “Call them the Top Five,” said Nation lawyer Aaron Bruce in a news release about the Nation's conditions. “Bottom line here is that Squamish Nation will simply not approve the Woodfibre LNG proposal unless all of these conditions are addressed and resolved — to the Squamish Nation’s satisfaction.”

The conditions 1. More information on the seawater cooling discharge system, including potential immediate and cumulative impacts upon marine life in Howe Sound from discharges of warm, chlorinated water and the potential for small fish to be harmed by the intake system. The Nation also wants information about potential alternative technologies and the impacts of those technologies upon marine life in the sound. 2. The project must avoid the Skwelwil’em Wildlife Management Area (WMA). In particular, the project proponents must commit to a drilled underground pipeline that starts and exits outside of the WMA or avoids the WMA altogether. 3. The FortisBC compressor station must be relocated to a loca-

The proposed site of the Woodfibre LNG facility in Squamish.

tion that poses no risk to Squamish members living on any Indian Reserve in Squamish Nation territory. 4. Nation members must have access through the Controlled Access Zone of the Project to allow for Squamish Nation practice of aboriginal rights. 5. Insurance coverage or a bond must be obtained to cover risks of personal loss and injury costs for Squamish Nation members in the

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event of an accident that brings harm to Nation members, such as damage from a spill, explosion or other industrial or marine accident. Woodfibre LNG officials must be legally bound to fulfill the conditions, before the Nation will support the proposed liquefied natural gas export facility slated for about six kilometres southwest of Squamish, according to the release. “The con-

ditions are needed to protect sensitive land and marine habitat in the Squamish estuary, in Howe Sound and beyond – all in Squamish Nation traditional territory,” said Bruce. If the proponents of the project were daunted by the Nation's conditions, they didn’t show it at the time. FortisBC spokesman Trevor Boudreau said June 27 that his company had been involved with the Squamish Nation’s independent planning process. “The five major conditions outlined by the Nation demonstrate strong protections for the land, water and their community. We will continue to engage with the Nation on the issues and concerns they raise,” said Boudreau. Also on June 27, Woodfibre LNG’s vice-president of corporate affairs Byng Giraud said he looked forward to formally receiving the final report so the company could review and understand the conditions fully. “The Squamish Nation has announced a set of conditions for our proposed project that reflects their longstanding promise to protect the land, water and heritage of the Woodfibre site,” Giraud said. Woodfibre announced it had asked for and was granted a temporary suspension of the 180-day Environmental Assessment Review Period. The company made the request to allow it time to further engage with the Squamish Nation on its conditions, according to a news release. See SQUAMISH on Page 30 R001697755

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Carbon conscious carmakers look at plant in Chetwynd Mike Carter

Pipeline News North

Blue Fuel Energy’s Sundance Fuels project just got a lot more interesting. According to CEO Juergen Puetter, at least three global car manufacturers are now in discussions with the company regarding potential fuel purchase agreements and investment in the proposed natural gas-to-gasoline facility, which would be located about 20 kilometres outside of Chetwynd. Puetter would not name the car companies involved, but did say that some are high-end European manufacturers. The reason car companies are excited about the project: the gas from the plant would help them meet new low-carbon fuel standards that are being implemented around the world. “Six months ago we didn't even see this market opportunity and it may emerge as being just as important or maybe even bigger than what we had before,” Puetter told Alaska Highway News. New low-carbon fuel standards have been particularly aggressive in British Columbia and California, where legislation requires a reduction in

carbon intensity of fuels up to 10 per cent by 2020. The United Kingdom is in the process of implementing similar legislation. The European Union adopted low-carbon fuel standards in 2008. In British Columbia, the 2008 Renewable and Low Carbon Fuel Requirements Act mandates all fuel suppliers to sell gasoline with a certain amount of renewables included, 5 per cent for gasoline and 4 per cent for diesel. Currently, fuel companies are using biofuels to meet these targets, but canola, corn and sugar cane — used to make biofuels — require significant amounts of land. After accounting for resources used to grow those crops, including significant use of fresh water, experts question whether biofuels reduce carbon emissions in a meaningful way. Puetter says Blue Fuel studies conclude that one pick-up truck consuming 50 litres of diesel a week would require 10.5 acres of canola to run for one year. The Chetwynd plant will produce gas that will meet B.C. and California’s 10 per

Residents gather in Chetwynd during a March meeting on the Sundance Fuels project by Blue Fuel Energy. The project is now garnering attention from major

cent carbon intensity reduction goal — and they are aiming even higher. That has brought some big players in the auto industry knocking on Puetter’s door. “We can meet the 10 per cent reduction,” he said. “We are now shooting to get 20 per cent out of the gate.” Final investment decision Because of the latest developments, Blue Fuel Energy has had to

do some rethinking on the engineering of the proposed plant, , which has caused a three-month delay. “We found a very elegant way to further reduce the carbon intensity by doing some re-engineering,” he said. “These things have consequences [for the rest of the project] but I am very glad we did it. I’d rather be a few months later and if we can get [more] reduction [in carbon intensity] out of the plant, that has an enormous long term impact.”

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“We found a very elegant way to further reduce the carbon intensity by doing some re-engineering. These things have consequences [for the rest of the project] but I am very glad we did it. I'd rather be a few months later and if we can get [more] reduction [in carbon intensity] out of the plant, that has an enormous long term impact.”

car manufacturers because the fuels it will produce will help them meet low-carbon fuel standards.

A final investment decision (FID) has been pushed from early 2016 to mid-2016, but Puetter said they are not too hung up on making a firm FID on any schedule. “As far as final investment goes … who knows,” he said. “We’re still trying to build this by 2016, but it’s been an enormously interesting ride.” The outlook on the project remains rosy. The company will need to se-

cure a supply of natural gas for the project — which shouldn’t be a problem in the gas-rich Montney. Lower prices for natural gas mean the market has turned in its favour. Puetter suspects interest in his project will rise as demand for lowcarbon fuel increases. “I am trying to delay it as much as possible,” he said about signing purchase agreements for natural gas supply. “The writing on the wall is that

mike carter file photo

we have so much gas everywhere, and it’s all stranded,” Puetter added. “How many LNG facilities will there be? One, two maybe? Those have their own gas, so all the midmarket players that are not part of the Petronases or Shells of the world — what are they going to do with their gas?” The B.C. Environmental Assessment Office has said the project does not require an environmental certificate to proceed, but the re-

design of the engineering plan to remove as much carbon out of the fuel as possible has meant a delay in the permitting process with the Oil and Gas Commission. “We need to do our homework first,” Puetter said. “It’s new territory for everybody. “The amount of activity we are going to have [outside of Chetwynd] in the long-term is only going up.” dcreporter@dcdn.ca

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ALBERTA

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While NDP seems consultative on royalty review, some worry about possible increases Carter Haydu

Daily Oil Bulletin

Although there is some concern and uncertainty with the looming royalty review and other legislation in Alberta that could increase costs for the province’s oil and gas sector, the NDP government does seem to want to consult with industry, which is encouraging for Darren Gee, president and chief executive officer at Peyto Exploration & Development Corp., and other producers. “We are encouraged by the fact this government seems to be cognizant of capital markets and capital flows,” he told the 2015 TD Securities Calgary Energy Conference. “But obviously, the devil is in the details and we will see what comes out of any royalty review.” Last month, Energy Minister Margaret McCuaigBoyd announced that Dave Mowat, president and CEO of ATB Financial, would chair a royalty review panel to consult with Albertans, industry and all stakeholders in order to provide feedback to the government, which aims to make some “preliminary conclusions” before the end of the year (DOB, June 26, 2015). When meeting with the energy minister and her staff, Gee stressed that the royalty take should not be as important as capital flow when considering an optimal outcome for the province. He said capital investment is necessary to increase the size of the overall proverbial pie. That way, if the province wants a bigger slice, there is more to go around. “Right now, though, with commodity prices the way they are, the pie is shrinking pretty fast, generally speaking.” If the government continues to consult with industry, Gee said, the relevant stakeholders should be able to work out a favourable royalty scheme, which perhaps could be better than the status quo. “Arguably, I think, Alberta’s royalties are relatively complex, and so maybe there is some simplification that could happen.” He added: “I think the worst case we can probably anticipate is the government coming up with a new scheme that is half baked and as a result does not work. Activity would dry up in the short-term and [the government] would have to patch it all up together again so that we ended up with something pretty close to what we have today.”

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However, while Vermilion Energy Inc. has “strong projects” in Alberta for which the company would like to continue adding investment, if a royalty review ultimately means the returns improve elsewhere, then the company will direct more capital to places such as Saskatchewan, Wyoming, Europe and Australia, Anthony Marino, president and chief operating officer, told the conference. “I just don’t see really that there is room economically for a royalty increase. In terms of policy, it probably would not be a good idea,” he said. “If there were an increase in royalties now, it would probably be completely reversed over the long term with lower land sale prices. I would certainly encourage the current government to not take actions that would further impair the profitability of the industry.” Marino added: “I think it has been a tough business, actually, with pretty low returns on capital when you look at industry as a whole. I don’t think it was incredibly profitable on a full-cycle basis even at the prices we had a year ago. Obviously it is

way, way less profitable today, and you can see that in the lower activity levels.” Whitecap Resources Inc. has not altered its program at all in light of recent royalty review announcements for Alberta, but president and CEO Grant Fagerheim said his company expects to run two different budgets going into 2016 — one with the status quo royalty regime, and a second one that considers potential royalty adjustments. “We would probably have to put a bit higher risk on when looking at acquisitions in Alberta at this time, whether looking at a discount rate or something [else], just because of the lack of clarity,” he said, adding the NDP fortunately seems consultative. “I think they will do what is reasonable, and ultimately I do not expect a huge amount of change.” For Jason Skehar, president and CEO of Bonavista Energy Corporation, it is “business as usual outside of a few additional sleepless nights” when it comes to potential royalty changes implemented by the government. He noted that his company’s allocation capital continues to head in the same di-

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ALBERTA

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dustry. Stadnyk added: “The premier gave a talk, and it was a really thoughtful approach to how important the oilsands are to Alberta’s future, and that one is very, very dynamic with the emissions issue,” he said. “Actions matter more than words, but I feel like there is a real interest to consult.” Royalty companies, Pembina Pipeline weigh in on royalty uncertainty Being a freehold mineral-title holder, Freehold Royalties Ltd. could be consideredcompetition to the government, said president and CEO Tom Mullane. Therefore, if Alberta’s government increases royalties on its lands, then obviously his company would look more attractive. However, he noted, the government likely will not increase royalties to such prohibitive rates, given the industry is already grappling with ongoing market woes. “Obviously the biggest driver for drilling on lands is the available capital of the producers to drill, and so we think, first of all, that the NDP

government would probably like to preserve jobs, and so I don’t think they are going to increase royalties to such an extent that it destroys more jobs. I think commodity prices have done a good job at eliminating jobs, and so what [the government] will want is something that promotes activity.”

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rection as it did three months ago before the election. Further, Skehar is encouraged by the NDP’s initial approach since taking office and is hopeful the new government can learn from the mistakes from the last royalty review process under the Progressive Conservatives. He said: “What is different this time around is we have a case history of what not to do, and so I would like to think that we could all apply that appropriately. But in addition to that, there are more than just royalties on the table. “Certainly, there are tax changes, there is the carbon issue, and so we are feeling as though these are all going to be considered in collaboration with business and with industries.” Myron Stadnyk, president and CEO of ARC Resources Ltd., said he too is encouraged by the business sophistication and understanding of the recently-elected NDP government. He commended the appointment of Mowat as the royalty review advisory panel chairman, as Stadnyk believes the Alberta Treasury Branch head understands the in-

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Alberta sale draws $13.48 million

The Alberta government kicked off its first sale of the second half of 2015 with a $13.48-million auction in early July. Industry acquired 92,885 hectares at an average price of $145.09 per hectare (click here for results). Year-to-date, the government has taken in $178.54 million on 1.1 million hectares at an average price of $162.54. To the same point of 2014, the industry had paid $254.56 million for 568,528 hectares at an average price of $447.75 per hectare. Highlights of the sale included a licence acquired by Landsolutions GP Inc. for $1.57 million, the land sale high. The broker paid an average of $6,136.54 for the 256-hectare parcel, which included section 11 at 62-20W5, adjacent to Smoke Lake near Fox Creek. Rights included petroleum and natural gas (P&NG) below the base of the Triassic System, except natural gas in the Swan Hills member. “This section has Duvernay shale gas/liquids potential, and is in the midst of the Duvernay developments in the Fox Creek area,” said Brad Hayes, president of Petrel Robertson Consulting Ltd. Posted rights below the Triassic exclude the Montney. “Although the price is high by today’s standards, I think these rights would have sold for a lot more money a couple of years ago. Clearly, however, at least one bidder still sees good value in the Duvernay play.” — Daily Oil Bulletin

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Notley and Couillard discuss Energy East

Alberta is built on “dynamic commodity prices,” says Premier Rachel Notley, and the province can handle any potential oil-price suppression resulting from increased Iranian supply on the world stage, but the province’s market access must improve. “We know ultimately that we want to get the best price for our product and that there are a number of different ways to do that, and market access is one component of that,” she told reporters. “We will continue along the same strategies focused on that objective.” Today, six major world powers reached a deal with Iran to limit the Middle Eastern country’s nuclear program in return for ending economic sanctions. Notley said: “We have seen oil go up, we’ve seen oil go down, and throughout it all we have seen the resilience of our economic infrastructure. I am convinced that regardless of the outcome, our industry will certainly work … to ensure we are able to come out of it as prosperously as possible.” With respect to the Energy East pipeline project, this week the newly-elected NDP premier met with her Québec counterpart, Premier Philippe Couillard, to discuss the issue of market access, among other things. While Couillard has expressed concern for the proposed pipeline project to move western Canadian crude through Central Canada and to the East Coast, the Alberta premier believes there is hope finding an agreeable outcome for both provinces. “I think it is fair to say that he understands that energy continues to be a key driver of prosperity not just in Alberta, but across Canada,” Notley said during a teleconference following her meeting. “[Couillard] acknowledged as well that pipelines are ultimately the best way to move that product, and we need to look at ways to increase market access. “That being said, he also described what is true for the people of Québec, and I think [is true] for many people in Alberta as well — we have an obligation to show that we are taking real action on climate-change concerns and overall environmental protection and environmental standards.” — Daily Oil Bulletin

Outlook healthy for oilsands development: AER

Given current and forecast oil prices, the near-future development of many in situ and mining oilsands projects is still supported and existing projects’ production is on the rise, says the Alberta Energy Regulator’s yearly reserves and supply/demand outlook. A project’s viability depends largely on the cost-price relationship between production, capital cost, operating and transportation costs (supply), and the market price for bitumen and upgraded bitumen (demand), says the report. Other factors include the refining capacity to handle bitumen or upgraded bitumen and competition with other sources of supply in United States and Canadian markets. The AER’s forecasts for crude bitumen and upgraded bitumen include production from existing projects, expansions of existing projects, and new projects that have been granted or are currently seeking approval. According to the regulator, in 2014 a typical, 30,000 bbl-per-day SAGD project with a capital cost of $900 million to $1.75 billion and 90 per cent capacity utilization had estimated supply costs of US$50 to $80 per WTI-equivalent bbl, with purchased natural gas requirement of one to two mcf of natural gas per bbl. A standalone oilsands mine, said the AER, with production of 100,000 bbls per day, a capital cost of $7.5 billion to $9 billion and capacity utilization of 90 per cent had supply costs of US$90 to $105 per WTI-equivalent bbl, with purchased natural gas requirement of 400 to 600 cubic feet of natural gas per bbl. In its ST98-2015: Alberta’s Reserves 2014 and Supply/Demand Outlook 2015-2024, the AER says the province’s total bitumen production improved 10.5 per cent last year compared to 2013 while remaining reserves fell just one per cent. Mineable production of crude bitumen rose six per cent and in situ output climbed 14 per cent from 2013 volumes. Crude mined bitumen production in 2014 totalled 1.04 million bbls per day and in situ operations contributed 1.27 million bbls per day. — Daily Oil Bulletin

JULY 17, 2015

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JULY 17, 2015

SITE C

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hydro gets permits to ‘BC Hydro has just received the initial permits required to start some activities on Site C construction. We are finalizing our planning and site preparation activities could begin in late July. The specific start date will be confirmed soon and communities and First Nations will be notified prior to starting any work’

William Stodalka

Pipeline News North

The provincial government has issued permits for BC Hydro to begin initial work on the Site C dam, clearing a major hurdle for the utility. The work will involve timber removal, road building and other endeavors for site preparation. “BC Hydro has just received the initial permits required to start some activities on Site C construction,” said Craig Fitzsimmons, a BC Hydro spokesman. “We are finalizing our planning and site preparation activities could

begin in late July. The specific start date will be confirmed soon and communities and First Nations will be notified prior to starting any work.” Greig Bethel, a Ministry of Forests, Lands and Natural Resource spokesperson, said 24 permits were issued, but a number of other permits are being reviewed. “Six applications under the Mines and Heritage Conservation Act are pending decisions,” he wrote in an email to Alaska Highway News. “Ten applications under various statutes have been deferred as a procedural accommodation to allow more time for

First Nations consultation. The majority of the deferred applications allow for further consultation with First Nations until mid-September.” Consultation with First Nations was a requirement for issuing the permits. “The province has made substantial efforts to engage and consult with Treaty 8 First Nations,” Bethel said. “The [province] is satisfied that the consultation process was adequate and upholds the honour of the Crown and duty to consult.” In May, the Globe and Mail reported that Treaty 8 members hadn’t agreed to a framework for consultation for some Site C permits.

JULY 17, 2015

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SITE C

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It’s a work in progress, according to Bethel. “The province will continue to consult on applications and will also continue to attempt to negotiate a custom consultation process agreement to guide how consultations on future applications will be conducted,” he said. In early July, a First Nation dropped out of a lawsuit seeking to stop the dam from being built. A provincial judge allowed McLeod Lake Indian Band to “cease to be a party” to a lawsuit involving itself, Prophet River First Nation and West Moberly First Nations. One week ear-

lier, a federal judge granted McLeod Lake’s departure from a similar Site C lawsuit that also involves Prophet River, West Moberly and Doig River First Nations. The dam still faces numerous legal hurdles. On July 2, a B.C. Supreme Court judge dismissed a case by the Peace Valley Landowner Association (PVLA) aimed at blocking the Site C dam. It was the first decision involving seven cases against the $8.8 billion hydroelectric project. In the decision, Justice Robert J. Sewell sided with the B.C. govern-

ment, advising the court that he could see no reason to conclude that the director had erred in his advice to the minister. “The decision to grant the certificate was clearly within the range of reasonable options in light of the facts and the law,” Sewell wrote. “It is not for this court to substitute its views of what the ministers ought to have decided or the weight they were required to give to the many factors they had to consider in arriving at their decision.” reporter@ ahnfsj.ca

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JULY 17, 2015

CHETWYND

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150 new jobs for Chetwynd mill Soft-opening was held in June, but as of early July the plant is in full operation Tembec company closed the mill in 2012 and Paper Excellence purchased it in 2014 William Stodalka

Pipeline News North

Chetwynd is celebrating the official re-opening of a mill that has been closed since 2012. In early July, government and company officials officially opened the Paper Excellence Mill. The reopening of the plant brings almost 150 additional jobs to the South Peace, according to MLA Mike Bernier. “Forestry is a real important part of our area,” he said. “[The re-opening] helps the communities of Dawson Creek and Chetwynd.” The mill was formerly run by Tembec. In 2012, they closed the plant, citing low pulp prices. In 2014, another company, Paper Excellence, purchased the mill. Bernier said the company wanted to ensure the mill was running as efficiently as possible, and spent the time since then purchasing and installing new equipment. A soft-opening was held about a month ago, but as of the first week of July the plant is in full operation. The move was also praised by Unifor, the union representing some of the mill workers. “We're proud to have been a part of a process to create good resource jobs," said Joie Warnock, Unifor Western Director. "B.C.'s pulp industry has struggled because our export policy kills Canadian jobs, but hopefully this re-opening can lead a trend in the industry." "The government has placed all of its eggs in the basket of liquefied natural gas extraction," he added. "But in the pulp sector, this is just the tip of the iceberg if the BC government began to take resource jobs seriously." reporter@ahnfsj.ca

Government and company officials officially marked the reopening the Paper Excellence Mill. submitted photo

JULY 17, 2015

PIPELINE NEWS NORTH •

HUDSON’S HOPE

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Businesses lament camp policy Jonny Wakefield

Pipeline News North

A policy requiring employees and contractors to live in prefabricated work camps is strangling the Hudson’s Hope economy, business owners say

With a $5 billion natural gas pipeline on its doorstep, Hudson’s Hope should be booming. Instead, several business owners in the town of 1,100 say a new Progress Energy policy requiring employees and contractors to live in company worker camps is cutting local businesses out of economic benefits. Hudson’s Hope Mayor Gwen Johansson and several business owners are asking Progress Energy to relax its camp policy, saying it prevents employees from spending money on food, hotels and other local services. But so far, the company is standing firm, saying camps are the best way to keep its workers and Hudson’s Hope residents safe. Progress, a Petronas subsidiary, is gearing up to supply gas from Northeast B.C. to the Pacific NorthWest liquefied natural gas plant near Prince Rupert, where it would be processed for shipment to Asia. The gas would flow through TransCanada’s proposed Prince Rupert Gas Transmission pipeline, which begins in Hudson’s Hope. The company decided in mid-May to require construction and drilling workers on the project to live in camp. “This decision to have construction, drilling and completion workers on rotation stay in camps has not been made in isolation,” said Progress spokesperson Stacie Dley. “It was based on prior dialogue with ... stakeholders in the communities where we operate.” “This issue is complex, and while our decision may not be agreeable to all area business owners, we believe it is in the best interest of the great majority of the community,” she added. The camp policy has been especially tough on apartment owners and RV park operators who rent to oilpatch workers. Terri Clark, who owns the Lynx Creek RV park, said the camp policy

is new to Progress Energy, adding the town prospered when Talisman Energy operated in the area. “When Talisman was up there, they supported our community huge,” she said. “Their workers stayed at the local campgrounds and in the hotels. It was a very booming little community.” That began to change when the Calgary-based company sold its Montney holdings to Progress in early 2014. Harry Bolliger, owner of the Williston Lake Resort, says he has already seen a drop in business. “We had reservations from the Progress guys in our RV park and in the lodge,” he said. “The last two or three years, the [employees] would stay in our camp. Then Progress says ‘everyone has to go in camp,’ and now we’re empty.” Despite the massive investment nearby, some apartments are largely vacant. Dennis Beattie, who manages an apartment building in town, said half of his 36 units are unoccupied. “There are no workers in it,” he said. “It’s taken a toll on Hudson’s Hope, the whole town,” he said of the work camp policy. Scott Linley, a convenience store owner, said that despite some economic trickle down, some businesses are souring to Progress. “They may have legitimate reasons from their point of view to keep people in camp,” said Linley. “However, what ends up happening is the perception from local businesses is that not only are they coming in and [taking out] resources, [they’re] not even dropping crumbs in town.” The District of Hudson’s Hope has raised the issue with the company, but Mayor Gwen Johansson said Progress officials stood firm at a June 14 meeting. “They’ve taken the stand that they’re going to enforce their policy of having everybody in camp,” she said. “Basically, there was no discussion of that. That’s what they’re going to do.”

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JULY 17, 2015

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First Nation drops out of Site C lawsuit Mike Carter

Pipeline News North

A First Nation has dropped out of a lawsuit seeking to stop the Site C dam. A provincial judge allowed McLeod Lake Indian Band to “cease to be a party” to a lawsuit involving itself, Prophet River First Nation and West Moberly First Nations on July 2. One week earlier, a Federal judge also granted McLeod Lake’s departure from a similar Site C lawsuit that also involves Prophet River, West Moberly and Doig River First Nations. The move by McLeod Lake is not expected to impact the status of the lawsuits. Not long after the province announced it planned to go ahead with the construction of the Site C dam, a number of First Nations announced plans to fight the $8.8 billion project in provincial and federal courtrooms. The provincial lawsuit asks the court to quash or set aside the decision of the provincial and federal governments to issue an environmental assessment certificate for Site C. A judge heard initial arguments in the case April 23 to May 6. “After the conclusion of the hearing, on May 21, 2015, McLeod Lake

agreed with BC Hydro to withdraw from, and discontinue all of its claims in, this proceeding,” according to a notice from McLeod Lake. Soon afterwards, McLeod Lake dropped Rana Law Firm and Devin Gailus Westaway Law Corporation — the firm representing all three of the First Nations — and hired lawyer Albert Peeling. The notice does not say why McLeod Lake Indian Band left the lawsuit. The departure does not mean that Prophet River and West Moberly will stop their lawsuit. “McLeod Lake consents to Devin Gailus Westaway Law Corporation and Rana Law continuing to act for Prophet River and West Moberly in this proceeding,” the documents state. Dave Conway, Hydro’s spokesman for Site C, said he could not comment on McLeod Lake’s departure. Questions sent to Rana Law, Peeling, Devin Gailus, the McLeod Lake Indian Band office, and the offices of the other First Nations involved in the lawsuit were not returned as of press time.

JULY 17, 2015

PIPELINE NEWS NORTH •

NATURAL GAS

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victoria plays its hand

photo courtesy petronas

The B.C. government has publicly released the project development agreement (PDA) it signed with Petronas for the Pacific NorthWest LNG project. It sets out the ratification process for the company and for government, identifies important milestones toward achieving project certainty, and provides long-term certainty that the investments will be treated equitably and consistently over the term of the agreement. The project, if it does proceed, would be transformative for Northern B.C.’s economy. At $36 billion, it represents the largestever foreign investment in the province's history, and most of the economic activity would take place in Northeast B.C. and on the North Coast. The agreement provides the proponent with assurance through legislation to be proposed and debated in the legislature that it will not face significant increases in certain specific taxes and environmental

charges for the specified term of the agreement: The PDA with the province solidifies: — The LNG Income Tax; — The Natural Gas Tax Credit; — The Carbon Tax (specific to liquefying natural gas at an LNG facility); — The key features of greenhouse gas emissions regulatory scheme at an LNG facility. The PDA does not provide the proponent with assurance on laws of general application, such as changes to provincial sales tax or corporate income tax. Finance Minister Mike de Jong signed the PDA on behalf of the province on May 20 in Vancouver, initiating a ratification process by both the proponent and the B.C. legislature. The government is recalling the legislature on July 13 to introduce and publicly

debate legislation that will enable the Pacific NorthWest LNG agreement and future potential agreements. Last month Pacific NorthWest LNG said they’d move ahead with the nearly $36 billion export project in Northern B.C. Project-leader Petronas and its partners sanctioned the project on two conditions: approval from British Columbia’s legislature, considered a formality, and the granting of an environmental assessment from the federal government. The move represented a significant vote of confidence from the consortium, after months of uncertainty cast doubt on the probability of any of B.C.’s 19 proposed LNG projects moving forward. Major hurdles remain, however, particularly when it comes to winning the support of the Lax Kw’alaams band, on whose land the LNG terminal would be built. — Daily Oil Bulletin, with files from Alaska Highway News

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JULY 17, 2015

LNG

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Rare summer session called to debate LNG Government intends to pass special LNG rules, one of two conditions for Pacific NorthWest LNG approval Mike Carter

Pipeline News North

The B.C. government has announced it will recall the legislature July 13 to debate a project agreement signed with the Petronas-led Pacific NorthWest LNG consortium. The move is said to be the next step towards finalizing the liquefied natural gas (LNG) export terminal proposed for Lelu Island within the District of Port Edward. "The company has met its commitment to ratify the agreement we signed, which established the path to a final investment decision on the project,” Finance Minister Mike de Jong said in a statement. “Now it’s [up to] the government to address our commitment, which will see the public release of the project development agreement and the introduction of legislation that would ratify this agreement and enable future agreements with other proponents.” The ministry did not respond to inquiries about what that legislation would look like by deadline It is also unclear how long the summer session will last.

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The B.C. government will begin a rare summer session July 13 to debate LNG legislation. “This is important for B.C. and the region,” South Peace MLA Mike Bernier said. “I am glad we are not waiting and calling a summer session.” courtesy B.C. government The Pacific NorthWest LNG consortium consists of Petronas (62 per cent) along with Sinopec (10 per cent), Indian Oil Corp. (10 per cent), Japan Petroleum Exploration, (10 per cent), China Huadian Corp., (5 per cent) and Petroleum Brunei (3 per cent). The group announced a conditional positive Final Investment Decision for the project on June 11. The deal was sanctioned on two conditions:

approval from British Columbia’s legislature, considered a formality, and the granting of an environmental assessment from the federal government. “This is important for B.C. and the region,” South Peace MLA Mike Bernier said. “I am glad we are not waiting and calling a summer session.” dcreporter@dcdn.ca

Vancouver Islands' Discovery LNG gets NEB approval for exports Quicksilver Resources Canada Inc. has received approval from the National Energy Board (NEB) for a 25 year natural gas export licence. The issuance of this licence, which has a maximum term quantity of 733 billion cubic metres, is subject to the approval of the federal government. When evaluating natural gas and LNG export licence applications, the NEB considers if the quantity of gas proposed to be exported is surplus to Canadian requirements, taking into account trends in the discovery of gas in Canada. The NEB has determined that the quantity of gas proposed to be exported by Quicksilver is surplus to Canadian needs. The NEB is satisfied

that Canada’s gas resource base, and the overall gas resource base in North America, is large and can accommodate reasonably foreseeable Canadian demand. This demand would include the LNG exports proposed by Quicksilver as well as a plausible potential increase in Canadian demand. The approved export points are the north side of Campbell River, British Columbia, at the outlet of the loading arm of a proposed natural gas liquefaction terminal. Quicksilver filed an export licence last July with the NEB to send the chilled gas overseas from its planned Discovery LNG project on Vancouver Island to points in Asia. — Daily Oil Bulletin

JULY 17, 2015

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PIPELINE NEWS NORTH •

NORTH PEACE

matt lamers photo

“In parallel with work to support the final investment decision, Pacific NorthWest LNG will continue constructive engagement with area First Nations, local communities, stakeholders and regulators,” Michael Culbert, President of Pacific NorthWest LNG said in a release. “The integrated project is poised to create thousands of construction and operational careers in the midst of the current energy sector slowdown.” Petronas owns a 62 per cent interest along with Sinopec (10 per cent), Indian Oil Corp. (10 per cent), Japan Petroleum Exploration, (10 per cent), China Huadian Corp., (5 per cent) and Petroleum Brunei (3 per cent). South Peace MLA Mike Bernier said the conditional decision goes a long way towards providing certainty to the oil and gas industry — and the region in particular.” There are some things that have to be worked out with First Nations along the coast and we have to be sensitive around those concerns,” he said. “But in our area … to me what this is all about is, are people going to have jobs and be able to stay in the region? This goes a long way towards [that].” The federal government accepted the National Energy Board’s (NEB) recommendation to approve an important pipeline for the Pacific NorthWest LNG project. TransCanada Pipelines Ltd.’s North Montney Mainline Pipeline was given the green light subject to 45 conditions. The $1.7-billion pipeline will transport gas from Northeast B.C to its existing NGTL system, where it will meet up with the Prince

Rupert Gas Transmission (PRGT) pipeline to bring natural gas to the liquefaction facility on the coast. The PRGT pipeline has already received the first two permits to begin construction from the British Columbia Oil & Gas Commission. Dawson Creek Mayor Dale Bumstead said that while the biggest economic impacts will be in the North Peace, the effects of an LNG plant on the North Coast would trickle through the entire Peace Region. He said a likely uptick in pipeline development will follow. “[Petronas] have got to have the gas processed and ready to go, which means increased drilling and fracking, pipelines, processing facilities, to get that gas from Northeast B.C. to the West Coast.” “All of the service sector — water, sand, vac trucks — that support the industry, you’ll see that ramping up, particularly in Dawson Creek and Fort St. John as anticipation builds for that activity,” he added. Among the most directly impacted will be residents in Pink Mountain, the rural area around Mile 143 on the Alaska Highway. Those people are represented at the Peace River Regional District by director Karen Goodings. She said the roughly 150 permanent residents in the area are ranchers and farmers who live close to hundreds of drilling operations, many of them owned by Progress Energy, along with new resource roads and industrial worker camps. “It’s going to present its issues,” she said of the potential for a massive ramp up of industrial activity in the area. “The residents in Pink Mountain who have been there for years will

be the ones impacted. The cities feel they need their fair share of [revenues from gas operations], but so do those communities and those rural residents.” “We can’t stop it. We can work with it,” she said. “[Those residents] are not going to complain about industry, but they are going to complain if someone doesn’t do some work on their roads and look after the issues this credcreporter@dcdn.ca ates.”

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FORT ST. JOHN

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The high cost of high rent William Stodalka

Pipeline News North

Rent in Fort St. John and Dawson Creek grew almost two times faster than inflation Hourly and service sector workers are increasingly struggling to make ends meet

Sara Duncan and her husband recently found a two-bedroom apartment in Fort St. John, but it wasn’t easy. “I’ve lived in Vancouver and in Victoria, and the rent is higher here than it was there,” she said. “It would be impossible for someone who made less than $20 an hour to reasonably live here in a place that wasn’t absolutely terrifying, in a horrible neighbourhood.” It was only through a friend of her husband’s that they were able to finally find somewhere to live. In North Vancouver, Duncan said she paid $800 for a 1,300 square foot two bedroom with an ocean view. Now she pays $1,450 for an 800-square foot two bedroom. For renters in Fort St. John and Dawson Creek, Duncan’s experience is all too common. This spring, tenants in those cities faced the second and third most expensive rents in the province, respectively, according to recently released data from the Canada Mortgage and Housing Corporation (CMHC). So why are apartments so expensive in this

corner of the province? Factors include high population growth, a limited stock of housing and a strong economy. Northeast B.C. saw the fastest population growth in the province from 2013 to 2014, data from from B.C. Stats shows. Leading the region was Fort St. John with the second-highest rate in B.C. It grew 4.7 per cent to 21,523. Dawson Creek, the second largest municipality within the region, grew about three per cent to 12,653 people. High population growth drives rents higher because it takes municipalities and developers longer to build apartments than it does for people to move into them. Since 1991, the number of rental units in Fort St. John has risen only 10 per cent, but the population increased 15 per cent, according to BC Stats. It’s a similar story in Dawson Creek, where the number of rental units rose 10 per cent from 1991 to 2014, but the population shot up about 17. Driving the region’s population growth is an abundance of jobs. From October 2014 to February 2015, the unemployment rate in this part of the province was

so low that it was almost impossible to measure. There were about 1,100 people without jobs in January, of a 41,600-strong labour force, according to data. It wasn’t until after spring breakup (when seasonal oilfield jobs evaporate) that BC Stats measured the rate at 4.7 per cent in April and 5.9 per cent in March. Rent prices in the cities increased almost two times faster than general inflation. Inflation drives rents higher, as well. Twenty-five years ago, the average apartment cost $367 per month in Fort St. John and $349 in Dawson Creek. Had rent costs risen on par with inflation, they’d be $598 and $568 in Fort St. John and Dawson Creek, respectively. According to the CMHC data, the average rent this spring for all types of row townhouse and apartment buildings in Fort St. John was $1,059 and Dawson Creek $1,005 — roughly 77 per cent higher than inflation. This is much higher than many other cities in B.C. Of the 22 municipalities that the CMHC has kept tabs on since 1990 (those with populations over 10,000), on average their rents rose only eight per cent faster than inflation. Vacancy rates can also be tricky to measure

JULY 17, 2015

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in Dawson Creek and Fort St. John because so many jobs are seasonal — although not as many as in the past. Generally, higher vacancy rates are supposed to translate into lower rents. But the seasonal nature of Fort St. John and Dawson Creek’s economies tends to lessen that impact. The annual vacancy rate for Dawson Creek has consistently been higher than the provincial average. The only exceptions were in the

PIPELINE NEWS NORTH •

DAWSON CREEK

years 1994, 1997, 1998 and 2006. The only year Fort St. John’s vacancy rate was lower than provincial average was in 2011. One of the people who has been affected by rental prices is is Dawson Creek resident Daneka Hussey. Hussey rented while saving up for a down payment on a home. But she said that “a lot of people don’t have that option.” For her, people in town may graduate from

high school, and work in lower-end jobs while they decide what they want to do with their lives. Should they decide they want to upgrade their learning, they are burdened with higher rent. “It’s impossible for you, if you’re paying $1,300 a month, to pay for tuition,” she said. “Availability is common now, but brand new units are so expensive that if you work a lower end job, you can’t afford it.” reporter@ahnfsj.ca

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JULY 17, 2015

TUMBLER RIDGE

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pattern wind secures funding Construction on Meikle Wind, the largest wind energy project in the province, began in April

The Dokie wind farm outside Chetwynd is currently the largest in the province. After it’s complete next year, the Meikle Wind farm will take that title. Photo By BV Land Corp.

Mike Carter

Pipeline News North

The company building the largest wind energy project in the province, 33 kilometres outside of Tumbler Ridge, said it has been fully financed. Pattern Development began construction on the $456 million Meikle Wind project in April. It consists of 61 General Electric wind turbines capable of producing 180 megawatts and is expected to be fully operational in late 2016, producing enough power for 54,000 homes. “This project was a successful collaboration with First Nations, the communities of Tumbler Ridge, Chetwynd and BC

SQUAMISH from Page 13 The review period had been scheduled to end on July 13. In addition to the top five conditions, there are 21 others, according to Bruce. “Issuing these conditions is quite significant in that the Squamish Nation has been able to identify what environmental issues are important to them and determine how these issues should be addressed from its perspective. The provincial and federal Environmental Assessment processes simply don’t allow

Hydro,” Mike Garland, chief executive officer of Pattern Development said. The project will generate an estimated $70 million in payments for property taxes, Crown leases, wind participation rent and community benefits during the first 25 years of operation. Pattern Development has a 25-year purchase agreement with BC Hydro for power produced at Meikle Wind. The company estimates it will employ 275 workers on-site at peak construction activity. Up to nine permanent positions will be created once it's operational. Meikle Wind received its Environmental Assessment Certificate in June 2014. dcreporter@dcdn.ca

for that.” The Squamish Nation chiefs and council will still vote on accepting or rejecting the proposal at the end of July, according to the release. The nation did its own independent assessment of the project. A technical review of all aspects of the project from a First Nations’ point of view was done, according to a nation spokesman. At least four meetings on the project were for the Nation’s 4,000 members over the last several months. Mayor Patricia Heintzman said she applauded

the Squamish Nation on their response and conditions. “As a titleholder and First Nation they are in a unique position in this regard and I personally admire their conviction and their goal to ensure the safety of their members and protection of the environment, particularly the marine environment and the Skwelwil’em Wildlife Management Area of our estuary,” she said. “We will be keenly scrutinizing how Woodfibre LNG and Fortis respond to their steadfast conditions.”

JULY 17, 2015

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