The Dominion - business

Canadian Delegation Talks Pipeline Impacts in Washington

Tim McSorley — Fri, 22 Jul 2011 05:43:54 +0000

Fears over spills, environmental impact spurr concerns on both sides of border

VANCOUVER—First Nations and environmental representatives from Canada are ratcheting up the pressure against the oil sands by taking their campaigning to the United States. In late May, a delegation headed to Washington, DC, to lobby against the proposed Keystone XL pipeline expansion and future impacts on the environment and their communities.

The controversial project would funnel over a million barrels of oil sands bitumen each day from Northern Alberta down to the Gulf of Mexico and has caused concern over pipeline safety and environmental and land rights issues that have yet to be addressed.

“Many were intrigued that we were there. They don’t get a chance to hear from First Nations on this side of the border too often. There are a number of concerns we have with this project. Firstly there is no cohesive long-term plan on how to proceed with the Alberta oil sands. It’s really the ‘old west’ in Alberta when it comes to natural resources and downstream communities are negatively affected by this development,” said Assembly of First Nations Regional Chief for the North West Territories Bill Erasmus.

“We want to see sustainable development of this resource as well as having the downstream impacts addressed. Canada needs a strong climate change policy and right now there is no plan," he said. "We are not saying no to development, we need to take a step back, see what is truly transpiring and develop a better approach.”

Upon invitation from the US Congress and the Obama administration, Erasmus, Chief Roxanne Marcel from the Mikisew Cree First Nation and representatives from the Pembina Institute, Climate Action Network Canada and Environmental Defense Canada stated where they stood on the project.

The delegation met Assistant Secretary of Ocean and Environment Dr. Karri-Ann Jones, members from the Department of Energy, the Environmental Protection Agency, members of the media and several congressmen.

The proposed Keystone XL pipeline by Calgary-based TransCanada Corporation would build upon existing pipeline infrastructure that transports Alberta oil sands bitumen to refineries in the US.

Keystone pipeline infrastructure currently sends 590,000 barrels per day (bpd) from Hardisty, Alberta to refineries in Illinois, Nebraska and Oklahoma over the 3,467-kilometre trek.

The XL would add another 2,673 kilometres of added pipeline infrastructure that will cross Indigenous lands in Alberta, Saskatchewan and the United States.

Keystone has said the XL pipeline will move 700,000 bpd from Canada and US receipt points through Steele City, NB, to Cushing, OK, and down to refineries on the Gulf Coast.

About 200,000 bpd of the payload will be delivered into Cushing and the remaining 500,000 bpd will be transported to refineries on the Gulf Coast.

Keystone has said their presidential permit application is requesting authority to transport up to 900,000 bpd, up from their initial capacity of 700,000 bpd.

The 6,140 km XL project would be over four times longer than the Trans Alaskan pipeline, and TransCanada has compared the undertaking to the construction of the Pyramids of Giza.

For Obama and other Americans the debate is on safety, energy security and vying for access to Canadian reserves while considering Asian and other international market competition.

Republicans are pressuring the Obama administration to approve the project before the end of 2011.

Only in operation for about a year, the Keystone pipeline has already had numerous reported spills.

Discussions of the XL expansion impacts come as TransCanada continues to clean up two recent spills in Kansas and North Dakota.

Keystone was shut down on May 9, 2011, after a spill in Bismarck, North Dakota where 21,000 gallons of oil leaked from a valve failure at a pumping station, and again May 29 after a small spill in Kansas.

A formal investigation has been set up by the North Dakota Public Service Commission into how the spill occurred and if TransCanada acted appropriately.

First Nations downstream from Albertan oil sands projects have felt the worst of the development, suffering serious health impacts, water, fish and soil contamination as well as massive amounts of water consumption, deforestation, and greenhouse gas emissions.

Studies from respected scientists have shown increases in harmful contaminants in the area including arsenic, mercury, aluminum, chromium, cobalt, copper, iron, lead, phosphorus, selenium, titanium, total phenols, herbicides and pesticides as well as traces of ammonia, antimony, manganese, nickel and molybdenum.

These chemicals have been associated with type 2 diabetes, cancers of the bile duct, liver and urinary tract and skin and vascular diseases.

Industry and government sources suggest tailings pond leakage into soil, groundwater and surface water are insignificant despite reports in 2003 that found leakage rates were at 11 million litres per day.

The Alberta government, industry-funded Regional Aquatics Monitoring System has been widely criticized for using “questionable statistical methods and assumptions,” and for the “lack of details of methods, failure to describe rationales for program changes, examples of inappropriate statistical analysis and unsupported conclusions and inadequate monitoring sites.”

With no clear long term sustainable vision or plan for the oil sands, the Keystone pipeline expansion would allow for unabated increased production in Northern Alberta without considering present issues associated with the development.

Erasmus said he and other First Nations have taken their concerns to provincial and federal governments north of the border, including requesting independent environmental monitoring, but they have been all but ignored.

“To date the federal and provincial governments have not taken the concerns seriously of impacted First Nations,” said Erasmus. “They claim there is no proof the oil sands are adversely effecting communities. The project is seen as being in Canada’s national interest and that it must go ahead.”

The UN Declaration on the Rights of Indigenous Peoples states that Indigenous communities must have free, prior and informed consent before any projects like the Keystone XL get the go-ahead.

The US State Department has opted to hold a new round of public consultation hearings into the XL expansion in six different locations throughout impacted areas, after they release a final environmental impact statement on the project.

A decision is expected near the end of 2011.

Keystone refused to be interviewed for this article.

Trevor Kehoe is a journalist originally from Calgary, now based in Vancouver. You can read more at www.commoninterestcanada.blogspot.com, where this article was originally published.

Pulp Dreams

hillarybain — Wed, 06 Jul 2011 05:24:19 +0000

Pictou Mill is Asia Pulp Paper's latest acquisition

HALIFAX—If you thought that the Canadian pulp and paper industry was environmentally irresponsible, you were right. But the new players on the clear-cut block make them look like a bunch of patchouli-scented tree-huggers. This is the story of how Canada hopped into bed with one of Asia's worst environmental criminals, and how for the Pictou Landing Indian Band in Nova Scotia, it's just one more proverbial slap in the face.

Amidst a lack of fanfare from mainstream Canadian media, and encouragement by the federal government, a company known as Paper Excellence Canada Holdings Corporation has lately been buying up Canadian pulp mills at a rapid rate. Paper Excellence is a shell company of global pulp and paper giant Asia Pulp Paper (APP), itself the logging and pulping arm of the massive Indonesian conglomerate, known as Sinar Mas.

In 2001, APP defaulted on $12 billion in bonds, kicking the Indonesian economy, and indeed the entire Southeast Asian economy, into a downward spiral. Three independent audits have never been able to account for between three and four billion dollars, in part because APP simply re-financed itself through the financial arm of Sinar Mas. APP has illegally logged a national park in Cambodia, and makes a regular practice of creating shell companies, illegally logging, and by the time the underpaid forestry authorities figure out who's responsible...POOF! They're gone.

Richard Brooks, Forests Campaign Coordinator for Greenpeace, has spearheaded a global campaign to boycott APP products. Large-scale paper distributors, such as Xerox, Staples, and Target, have heeded Brooks' message, and now refuse to carry APP products. In an interview with The Dominion, Brooks says:

(APP) is on this mission to grow themselves into the largest paper company in the world...They're involved with illegal logging and deforestation in Indonesia, and quite a bit of their pulp and paper production is in Indonesia...These are old-growth, tropical, rainforests that are being cut down, and turned into acacia plantations and eucalyptus plantations, or are being turned into palm oil plantations, which is another division of their company.

Brooks continues:

You've got endangered species habitat that's being wiped out...orangutans, Sumatran tigers, rhinos...a lot of logging that happens outside of their legal concessions. There's evidence of them logging in protected areas...Huge amount of conflict with local communities which they are disenfranchising...basically going in, logging the hell out of the forest, putting in these (palm oil) plantations, and not asking for any approval from local communities.

If Paper Excellence/APP/Sinar Mas get their hands on the Northern Pulp-owned mill in Pictou, Nova Scotia, and all signs point to the deal being finalized shortly, it will be their fifth Canadian pulp mill acquisition in as many years. The other mills are located in Howe Sound, British Columbia, MacKenzie, British Columbia, Meadow Lake, Saskatchewan, and Prince Albert, Saskatchewan.

The Canadian pulp mills in question haven't seen this much attention in years. The mill in Pictou has been surviving on a steady diet of government loans for almost a generation. The Prince Albert mill was mothballed at the time of sale. But China is entering a phase of consumerism known as the "paper-culture," and suddenly pulp is again a very hot global commodity. APP simply can't keep up with the Chinese demand for toilet paper, so it has come calling for the mills, and, more importantly, Canada's forests.

We should note that Paper Excellence is not buying any Canadian paper-making facilities. Brooks interprets this to mean that we are in fact witnessing the death of the Canadian, if not North American, paper-making industry, as Canadian pulp will now travel back to Asia, get mixed up with Indonesian hardwood pulp, be made into paper, and then travel back to Canada.

Ed Roste, Vice President of Operations for Paper Excellence, and former VP at Meadow Lake, Paper Excellence's first Canadian pulp mill acquisition in 2006, claims, in an email interview, that while the majority of Canadian pulp will in fact be shipped to China to make paper, there is still a significant North American client base for Canadian pulp. Roste speaks of the “excitement” of the new market opportunities.

The Harper government has opened the public coffers to pay for upgrades to mills all across the country. Canadian taxpayers are on the hook for the 'Pulp and Paper Green Transformation Program' (PPGTP), in which Canadian mills can access up to $1 billion in grants. If Canadian pulp and paper mills were nationalized, such a program might make economic sense for Canadians. As it is taxpayers are to pay for "greening" the mills, only to have many of them sold off to foreign investors, like Sinar Mas, with problematic environmental and financial histories. Paper Excellence's Howe Sound mill received more than $45 million, and the Meadow Lake mill received $2.6 million.

Not to be outdone, in January of 2011, two months prior to the sale being made public, Peter MacKay, Canadian Minister of National Defense, whose family handily owns sizable woodlot holdings in the Pictou area, announced that the Pictou mill would be receiving $28 million under the federal grant. In a telephone interview, Don Breen, Vice-President of Strategic Planning and Government Affairs at Northern Pulp, noted that the $28 million would be used to “reduce odour at the mill by up to 70 per cent, improve boiler performance, and invest in renewable energy initiatives.”

In Nova Scotia, the Pictou mill isn't just a taxpayer-subsidized employer to 230 mill workers, it's the home of a very dirty secret.

Opened in 1966, it is infamous for its continued use of once-idyllic Boat Harbour, a natural lagoon that is located on Pictou Landing Indian Band reserve lands, as an effluent dumping grounds. As documented by the King's College Investigative Journalist Team in 2009, an estimated 1,000,000,000,000 litres of liquid pulp mill waste has poured into Boat Harbour since then, causing untold environmental destruction.

Indeed, an indemnity agreement was signed in 1995 between Scott Maritimes, original owners of the mill, and the provincial government. The agreement guarantees that the Nova Scotia government (actually, Nova Scotia taxpayers) will swallow the costs of cleaning up Boat Harbour. The agreement is valid in transfers of mill ownership. The current NDP provincial government has no alternative plan on what to do with the mill waste, and the Pictou Landing Band is currently in a two-year-and-counting legal battle with the province to see Boat Harbour closed.

Boat Harbour is now a foul-smelling, foam-encrusted, 142-acre wasteland, largely devoid of life. Don Breen, one of the witnesses to the 1995 indemnity, makes no mention of any of the $28 million going to clean up the Boat Harbour disaster that he personally has helped whoever owns the Pictou mill wash their hands of.

In an interview with The Dominion, Kevin Christmas, Indigenous Mi'gmaw, band advisor to Pictou Landing and long-time activist against the pollution of Boat Harbour, notes that effluent-capture technology has existed for years, and that the dire straits of the Pictou Landing Band could have been avoided from the start.

“Boat Harbour is at the tail end of a beautiful reserve called Canada.” says Christmas. “What happens there is one hundred and ten million gallons of the worst possible effluent is being dumped every day, for the last fifty years, in the middle of this beautiful reserve...It's destroying and killing the people. The children...[they] don't know what's wrong with them. But they are not going to live very long lives, and probably will never have children because of base-metal contamination. It's the end of the generation at Pictou Landing.”

Charlie Parker, Minister of the Nova Scotia Department of Natural Resources, whose riding is located in Pictou West, site of the mill, unveiled the province's 'Renewable Electricity Plan' (REP) in 2010. The REP considers biomass burning, which can involve large-scale, whole-tree harvesting, to be a renewable source of energy.

The repercussions of this definition of 'renewable' have already been felt in Northern Pulp-owned land. In the summer of 2009, Northern Pulp made national headlines in Canada by decimating a wide swath of land in the Musquodoboit-Sheet Harbour area through whole-tree harvesting. Katy Didkowsky, of the Save the Caribou Committee, and a local tourism operator, called the scene a “purposeful massacre.”

Musquodoboit-Sheet Harbour may only be the start. Frank Magazine (Issue 611) recently reported that over 28,000 parcels of land in Nova Scotia, almost 250,000 acres, are without an original Crown grant. The archaic, neo-colonial law in Nova Scotia states that without an original grant, which may be over 300 years old, the land belongs to, and can revert back to, the Crown. Nova Scotia has one of the lowest percentages of Crown land available. That the provincial government has found this new source of potentially exploitable land is perhaps more than convenient.

In this light, it is no great stretch of imagination to interpret the $28 million grant for odour reduction, improved boiler performance, and "green" energy capture as simply implying that emissions from the mill will smell better, while processing more trees, potentially whole trees, and burning more wood as biomass. Anonymous sources in Pictou confirm the mill's preparedness for increased production, and note that boilers “which have not been active for years” are now operational.

The Pictou Chamber of Commerce has come out in favour of the mill's sale. The Communications, Energy, and Paperworkers Union of Canada (CEP) has also endorsed the sale of the mill in Pictou, as it has done for the other four Paper Excellence acquisitions. Representatives from the CEP were unavailable for comment on whether they knew, or cared, who the actual new owners of the mill were.

The NDP government of Nova Scotia went so far as to engage in a public meet-and-greet with Paper Excellence's VP Ed Roste, and fully endorsed the sale. When Richard Brooks questioned whether the government knew of the links to APP and Sinar Mas, the province pleaded ignorance.

All groups were shamefully mum on addressing the decades-overdue clean-up of Boat Harbour.

For the rest of Nova Scotia, and Canada, it remains to be seen whether we will see the forest for the trees.

Miles Howe is a journalist in Halifax. This article was originally published by the Halifax Media Co-op.

Pictou Mill