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Exxon Valdez, Alaska LNG turn BC edgy British Columbia leaders still believe province has edge in LNG, but First Nations leaders warn Northern Gateway could sour LNG By GARY PARK For Petroleum News
Alaska is suddenly taking an influential, if indirect role in settling the future of Enbridge’s Northern Gateway project.
The specter of the Exxon Valdez and the prospect of LNG exports from Alaska are playing a part in eroding the outlook for Northern Gateway and Canada’s chances of shipping 525,000 barrels per day of diluted bitumen from Alberta through British Columbia to Asia.
Scientists and aboriginal leaders from British Columbia, Alaska, Washington and California met June 18 to celebrate the return of sea otters to the West Coast of North America, but abruptly switched their focus to the threat posed by Northern Gateway tankers and devastation of the marine ecosystem caused by the 1989 grounding of the Exxon Valdez.
Violet Yeaton, an environmental planner from the village of Port Graham, Alaska, told the conference that the spill of 11 million gallons of crude from the Exxon Valdez killed 2,800 sea otters, 900 eagles and 250,000 sea birds and shut down a portion of a king crab fishery that has yet to reopen.
Letter to Clark In a letter to British Columbia Premier Christy Clark - all but one of the 50 delegates decided there was no point in contacting Prime Minister Stephen Harper - the Native leaders and scientists said the risks of Northern Gateway “threaten coastal ecosystems, livelihoods and economies.”
“We reject the proposition that there are any conditions that make the Enbridge project acceptable,” they wrote.
Guujaaw (who uses only one name), past president of the Council of Haida Nation, which claims it is still impacted by the Exxon Valdez disaster, said the Canadian government has now “forfeited the moral authority to manage these lands and these waters.”
Concern over Alaska LNG More disturbing for the British Columbia government is the threat posed by Northern Gateway to its grand plans for an LNG industry that are designed to pump billions of dollars into the provincial economy.
Compounding that concern is the sudden awakening in British Columbia to the possible commercialization of Alaska’s natural gas through the LNG venture that started taking shape two years ago when ExxonMobil, ConocoPhillips and BP along with the state joined forces to exploit 35 trillion cubic feet of North Slope reserves.
British Columbia’s Natural Gas Development Minister Rich Coleman, the cabinet’s point man on LNG, downplays any talk that his government is wary of what is happening in Alaska if the massive project comes onstream in 2023.
“There are multiple LNG export projects being proposed internationally, including the Alaska LNG project,” said a statement issued from Coleman’s office. “We are confident our competitive advantages make B.C. the best place to build new natural gas export facilities.”
Coleman refuses to get drawn into debate on the comparative merits of British Columbia’s promise to provide the “most competitive LNG jurisdiction in the world,” and Alaska’s blending of state and industry in a deal for the state to collect 25 percent of the gas in lieu of taxes and royalties.
In addition, British Columbia aboriginal leaders are hailing the progress Alaska has been made in settling Native land claims and offering Native corporations and municipal governments’ investment options in the Alaska LNG Project - all elements British Columbia is still grappling with.
Dead end with First Nations What little success British Columbia has achieved in bringing First Nations on board has suddenly encountered a dead end, pending a resolution of Northern Gateway’s future.
Although there is no formal arrangement in place, some First Nations have endorsed aboriginal equity stakes in pipelines and LNG terminals and have praised the efforts by international LNG companies to consult with aboriginal communities on their projects.
But Terry Teegee, tribal chair with the Carrier Sekani Tribal Council, said any sign that the British Columbia government is ready to sign off on Northern Gateway could have a “potential domino effect on any” major LNG, mining or pipeline project.
If British Columbia softens the five conditions it says Enbridge must meet that could “sour the relationship” between the province and First Nations, Teegee said.
Grand Chief Stewart Phillip, president of the Union of B.C. Indian Chiefs, was less emphatic.
He said that talk of linking LNG support with the outcome of Northern Gateway “has not been widely embraced” by First Nations.
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