UPDATE: NATURAL GAS PIPELINES

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1 UPDATE: NATURAL GAS PIPELINES Carrier Sekani Tribal Council Newsletter June 2014 Latest News The Carrier Sekani Tribal Council (CSTC) has been working with its member First Nations to determine if the natural gas boom will benefit its members. We ll bring you the latest in what s been happening, how natural gas pipeline projects impact CSTC members, and what leadership and technical staff have been doing to ensure Carrier Sekani rights, interests and responsibilities are protected during this hectic time. For updated information check out our website: carriersekani.ca BC First Nations LNG Summit in Fort Nelson On April 15, the Fort Nelson First Nation hosted another First Nations LNG Summit. Many First Nations leaders, technicians and Chiefs attended. Government and industry also provided updates on their various projects and processes. On the same day the BC government decided to change the rules regarding environmental assessment of sweet gas plants. This meant that these plants would no longer require a more rigorous environmental assessment. Chief Sharleen Gale of the Fort Nelson First Nation requested that BC and industry officials leave the room while the Chiefs discussed next steps. First Nations leaders issued various statements, including: There was no consultation as far as changing that policy. We were blindsided. - Tribal Chief Terry Teegee "In a stunningly stupid move, the Province has effectively declared war on all BC First Nations and jeopardized all LNG discussions throughout the entire Province of BC." Grand Chief Stewart Phillip, UBCIC...given the magnitude and potential environmental implications of any new LNG development...it is our view that the appropriate consultation standard is the free, prior and informed consent of the First Nations potentially affected. Grand Chief Edward John, First Nations Summit The BC Government immediately rescinded the Order in Council, and reversed it s decision, with apologies issued by Minister Polak and Minister Coleman. Many First Nations are working to develop common strategies to manage natural gas development in their territories. The coastal First Nations could be impacted by the tanker traffic, pipelines and LNG plants; the interior First Nations could be impacted by pipelines and future exploration; the north east First Nations are being impacted by the gas extraction, and may see an increase if the various projects are approved. In This Issue Natural Gas 101 Project Updates BCEAO and OGC LNG Supply Chain Photo: BC First Nations Leaders at the Fort Nelson LNG Summit. Right to left: Grand Chief Stewart Phillip, Grand Chief Edward John, BC AFN Regional Chief Jody Wilson-Raybould, Miles Richardson. Credit: Terry Teegee. Cumulative Impacts 1

2 What is Natural Gas? Natural gas is a fossil fuel that was formed over thousands of years in deep underground rock formations or other hydrocarbon reservoirs. Consists of various gases including mostly methane, and lesser amounts of carbon dioxide, nitrogen and hydrogen sulfide. Before it can be used as a fuel, natural gas must be processed to remove impurities, including water. The by-products of this processing can include ethane, propane, butanes, pentanes, and other hydrocarbons. Image above: LNG Supply Chain. Credit: BC First Nations Energy and Mining Council. Natural Gas 101 Source: Wikipedia. Just a few years ago North Americans were getting ready for a shortage of natural gas. The original PTP project was proposed by PNG to IMPORT gas into Kitimat, and ship it via pipeline; then everything changed with the use of horizontal drilling and hydraulic fracturing of shale gas. This technique is also known as fracking. It is estimated that there is at least 100 trillion cubic feet of recoverable gas in BC. Billions of dollars have been generated in provincial revenues. The north east of BC is now the center of natural gas industry in BC. First Nations across the natural gas supply chain (from extraction, to mid-stream, to coastal facilities) have been involved in one way or another. However, there is still much to be understood of the impacts from building 4+ natural gas pipelines and 5+ LNG terminals on the coast. There are too many projects being proposed, and not all of them can be built. Map Above: Existing natural gas pipeline system in BC and NE shale areas. Credit: investnorthwestbc.ca WHAT IS LNG (LIQUID NATURAL GAS)? LNG is natural gas that has been cooled to 160 degrees Celcius. Natural gas is shipped by pipeline to facilities on the coast (LNG terminals/plants). The CSTC may only be directly impacted by the pipelines carrying natural gas. Photo Above: Natural gas pipeline being constructed in Oregon, WA. Credit: theepochtimes.com The LNG plants allow the gas as a liquid to be put onto LNG tankers that ship the liquid gas to clients (i.e. Asian markets), and then LNG is converted back to gas and shipped via pipeline to end users for various uses (i.e. electrification, heating, etc.). 2

3 Photo Above: Chiefs meeting with Premier Clark and Ministers. March Right to left: Grand Chief Ed John, Chief Martin Louie, Minister Rich Coleman, Chief Anita Williams, Chief Archie Patrick, Premier Christy Clark, Chief Justa Monk, Chief Fred Sam, Chief Wesley Sam, Minister John Rustad, and Chief Wilf Adam. Photo credit: David Luggi. Cumulative Impacts and LNG Many First Nations, and British Columbians in the north, are concerned about the cumulative impacts from the natural gas boom being proposed. Cumulative effects are the combined effects of past, present and foreseeable human activities, over time on the environment, economy and society in a particular place. One of the primary goals of cumulative environmental effects assessments is to determine when combined past, current and future impacts from human use (i.e. forestry, mining, gas development, hunting, and fishing) on the land and water reaches a tipping point or threshold. Once this threshold is crossed, the health of the ecosystem declines more rapidly. A relevant assessment will: Include First Nations early on, and incorporate traditional knowledge in a meaningful way. Focus on First Nations values, ecosystem functions and proper baseline data (collection and analysis). Focus on regional and local level impacts. Projects have impacts that are beyond their immediate area. POSSIBLE CUMULATIVE IMPACTS: Socio-cultural: influx of foreign workers affect families, infrastructure and services. Environmental: stresses on hunting and fishing grounds as access is increased, and predatory/prey relationship change with a linear corridor across a large area. Economic: temporary employment (1-3 years) for pipeline construction does not lead to meaningful employment or careers. We need to understand the possible cumulative impacts, and we need to plan and prepare!! 3 Government-to-Government Discussions The CSTC Chiefs are working together to improve the relationship with the BC government. Talks are underway at the CSTC level and Band level to determine if a government-to-government agreement with BC can be reached. Over the next several months the CSTC will host community meetings, on and off reserve to determine from membership, Keyoh holders, hereditary leaders, Chiefs, Elders and youth, what matters most to them regarding these natural gas pipeline projects. Capacity funding has been provided by BC for CSTC to enter into negotiations with participating member First Nations, and the BC government. The goals are to reach agreement on a natural gas pipeline deal within 6 months, and a higher level government-to-government agreement within 12 months. Each participating CSTC member First Nation has appointed a representative to sit on a negotiation committee. For the latest information regarding these discussions, please contact the CSTC office, visit our website, and or contact your Band office. There are confidential aspects of these discussions that will be communicated to membership during community meetings. Meetings have been held in: Prince George. Ramada Tues. May 13. Over 50 members attended. Vancouver. Holiday Inn. Tues. May 20. Approx. 20 members attended. Next meeting will be held in PG end of June or early July. See website for details.

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6 Natural Gas Pipeline Projects Over the last 2-3+ years various natural gas pipeline companies have been developing their plans to build and operate natural gas pipelines that would transect the Carrier Sekani territories. In this section we ll outline these various proposals, and which companies are involved. SOUTHERN ROUTES (corridors located between Vanderhoof and Fort St. James) COASTAL GASLINK PIPELINE PROJECT (CGLP) Route: Dawson Creek region to Kitimat B.C Pipeline Company: TransCanada Corp. LNG Partners: LNG Canada Gas (Shell, Petro China, Mitsubishi, Kogas) Pipeline Capacity: bcf/d* Pipeline Diameter: 48 inches Length of Pipeline: 650 km Length of Pipeline in CSTC: approx. 382 km Environmental Assessment Status: Application Review Phase PACIFIC TAILS PIPELINE (PTP) Route: Summit Lake to Kitimat B.C Pipeline Company: Chevron/Apache LNG Partners: Kitimat LNG (Chevron/Apache) Pipeline Capacity: 1.4 bcf/d Pipeline Diameter: 36 inches Length of Pipeline: 462 km Length of Pipeline in CSTC: approx. 370 km Environmental Assessment Status: EA Certificate Issued. Several amendments required. PACIFIC NORTHERN GAS LOOPING (PNG LOOPING) Route: Dawson Creek region to Kitimat B.C Pipeline Company: Pacific Northern Gas LNG Location: Kitimat LNG Partners: AltaGas (BC LNG Export Cooperative. Haisla Nation/LNG Partners) Pipeline Capacity: bcf/d Pipeline Diameter: 24 inches Length of Pipeline: 525 km Length of Pipeline in CSTC: approx. 330 km Map above: Southern route natural gas pipelines proposals - CGLP, PTP, PNG Looping. *NOTE: bcf/d = billion cubic feet per day Environmental Assessment Status: Pre-Application Phase Pre-application Phase. Section 11 Order issued on Oct. 25, LNG SUMMITS First Nations across BC have been hosting meetings to discuss all the natural gas developments affecting their territories. The CSTC organized one of the largest meetings in Prince George in October. Speakers included Chiefs, industry and government. The ambassador of Japan in Canada also spoke about the Japanese interests in natural gas. For more info visit: carriersekani.ca and fnlngstrategy.ca Image right: Document available on CSTC website - Discussion Paper. How do First Nations Get a Fair, Just, and Honorable Share in the Benefits that will Flow from the Proposed LNG Project Developments in BC? 6

7 Map above: Northern natural gas pipeline routes. PRGT is south of Takla Lake. WCGTP is north of Takla Lake. NORTNERN ROUTES (corridors located north and south of Takla Lake) PRINCE RUPERT GAS TRANSMISSION (PRGT) Route: Fort St. John region to Lelu Island, near Port Edward Pipeline Company: TransCanada Corp. LNG Partners: Pacific Northwest LNG (Progress Energy, Petronas) Pipeline Capacity: bcf/d* Pipeline Diameter: inches Length of Pipeline: 900 km Length of Pipeline in CSTC: approx. 175 km Directly Impacted CSTC First Nations: Takla Lake, Nak azdli and Tl azt en Environmental Assessment Status: Application Review Phase. BCEAO decision expected late-nov WESTCOAST GAS TRANSMISSION PROJECT (WCGTP) Route: Cypress region to Ridley Island, near Prince Rupert Pipeline Company: Spectra Energy LNG Partners: Western Canada LNG (BG Group, Spectra Energy) Pipeline Capacity: bcf/d* Pipeline Diameter: inches Length of Pipeline: 870 km Length of Pipeline in CSTC: approx. 222 km Directly Impacted CSTC First Nations: Takla Lake, Nak azdli Environmental Assessment Status: Application Review Phase Application Review Phase. BCEAO decision expected late-nov Photo above left: Conceptual image of LNG facility in Kitimat. Source: Apache. Photo above right: Typical gas extraction well. Source: Canadian Press. 7

8 Environmental Assessment To view the updated timeline for these natural gas pipelines, please visit the CSTC website at: carriersekani.ca Of all the 4 pipelines proposed in CSTC territory that are going through the EA process, THE COMPANIES HAVE SUBMITED TO THE EAO THAT NO SIG- NIFICANT EFFECT IN ALL CA- TERGORIES INCLUDING LAND, WATER, WILDLIFE, HERITATE, HEALTH, AND SO- CIAL IMPACTS HAVE BEEN IDENTIFIED IN THEIR SUBMIS- SION TO THE GOVERNMENT. This highlights the lack of rigor of the EA process to identify any impacts in a meaningful manner. Map Source: BC government. BC Environmental Assessment Process The BC Environmental Assessment (EA) is a formal process to assess potential environmental, economic, social, heritage and health impacts of a major project. The EA process is mandated under the BC Environmental Assessment Act. The assessment of a project is comprised of 3 stages: 1. Pre-Application Stage Ensures that the application for the environmental assessment contains the necessary information. AIR (Application Information Requirements) Terms of Reference for the proposed project. It will include issues that will be addressed in the assessment and what is needed for the final Application. Application is prepared and submitted. Application is then is evaluated during a 30 day screening process. 2. Application Review Stage If an application is accepted by the Environmental Assessment Office.it is posted on their website ( and has 180 days to review the application and submit recommendation to the Minsters for decision. 3. Ministers Decision EAO submit recommendations to 2 ministers for review and a decision (e.g. Minister of Environment and Minister of Mines and Petroleum). Ministers have to make a decision whether the project will proceed to receive an Environmental Certificate or deny the project. The CSTC and several of its member First Nations have been submitting comments at these various stages. 8 Oil and Gas Commission (OGC) The Oil and Gas Commission is an independent Crown Corporation, funded through industrial application fees and levies. The OGC is responsible for overseeing oil and gas projects in BC from exploration, duration of operations to the decommissioning of the projects. On October 17, 2013 the BCEAO and the OGC signed a Memorandum of Understanding (MOU), with the purpose of streamlining the environmental assessment and permitting for LNG projects, including natural gas pipelines. Objectives of the MOU: Sharing information to eliminate the need for companies to submit the same reports to both agencies. Working with companies to identify opportunities for environmental assessments (BCEAO) and permitting reviews (OGC) to run concurrently, reducing the overall time required to authorize a project. Sharing information and attending meetings together to ensure a comprehensive and respectful approach to First Nations engagement. Joint inspections for a co-ordinated approach to compliance with environmental assessment certificate and permit conditions. The CSTC nor its member First Nations have any agreement with the OGC. Nor were First Nations involved in developing the MOU. The BCEAO process is considered insufficient and inappropriate to deal with assessing impacts from major projects on aboriginal rights, including title. The BCEAO and OGC also do not provide sufficient resources for First Nations to adequately review proposals or permit applications from companies.

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10 About the CSTC The CSTC provides a variety of political and technical services to its member First Nations. On the political side, CSTC provides a method for the Chiefs to collectively work together to address issues that are affecting their communities such as employment, major natural resource development, negotiations, etc. Currently the following Chiefs make up the Board of Directors at the CSTC: Contact Us Give us a call for more information. 1 (250) Chief Martin Louie, Nadleh Whut en Chief Archie Patrick, Stellat en Chief Anita Williams, Takla Lake Chief Wesley Sam, Burns Lake Tribal Chief Terry Teegee, RPF Chief Fred Sam, Nak azdli Chief Stanley Thomas, Saik uz Chief Justa Monk, Tl azt en (Vacant), Wet'suwet'en Ben Berland, General Manager Sixth Ave Prince George, BC V2L 3N2 Natural Gas Pipeline Projects Not Certain This information is provided as a resource to use by CSTC members, other First Nations and the general public. It is not the full picture of the natural gas industry, nor does it reflect the positions or full understanding of the CSTC communities regarding possible impacts, benefits, etc. The CSTC calls for the free, prior, and informed consent as the way for its members to decide whether or not these natural gas pipelines will be allowed. The CSTC does not endorse nor support any of the projects, and is directed by its membership and Council of Chiefs. Carrier Sekani Tribal Council Sixth Ave Prince George, BC V2L 3N2 PLACE STAMP HERE 10