Archive for February, 2009

Oil company to pay $200,000 for botched pipeline cleanup

Friday, February 27th, 2009

By Darlene Casten, staff reporter


http://www.westernwheel.com/news-oil.htm

A Millarville-area ranching family said although its legal battle with a Calgary-based oil company is over, the damage has been done.

Agnes Ball and her family were awarded close to $200,000 last week in their battle against Imperial Oil to cover the costs for their legal and consulting fees resulting from a lawsuit they filed against the oil company. Imperial Oil was found to be negligent in its handling of a leaky sour gas pipeline where the Balls pastured cattle.
Justice Bruce McDonald ruled that the Ball family should have most of its legal and expert costs paid by the oil company.

Susan Graham, Agnes’ daughter, who also lives on the family’s cattle ranch, said the ruling was not unexpected.

“I’m not surprised that we were able to get our costs because when you are successful at trial that is normal,” she said. “I am glad we were able to recoup the costs we put out.”

Lawyers for Imperial Oil argued that the Balls’ cost request should be reduced because of what they called mixed success at trial and asked that some legal and expert fees be reduced. McDonald agreed to cut the payment for the Balls’ second lawyer and a bill for Dr. Joanne Ball, also Agnes’ daughter, who testified at the trial. The Balls will only receive 50 per cent of the cost for a secondary lawyer and will receive only 65 per cent of the cost billed for Dr. Ball’s expert testimony.

Graham said the reductions will only add up to a few thousand dollars.

“We are going to get our costs as we feel we should,” she said.

In December McDonald awarded the Ball family approximately $65,000 for its loss of cattle and the spin-off effects it had on their cattle operation. The problem started in the summer of 2002 when Imperial Oil workers detected the leaky pipeline. Repair work began without the Balls’ knowledge and contaminated soil was piled up on the pasture land and water laced with hydrocarbons was also pumped on to the land.
The next spring the Balls said they had a difficult calving season and many of their cows became infertile.

Justice McDonald found that the tie to the Imperial Oil pipeline cleanup and the health of the animals was strong enough to deem the company negligent.
Graham said although the court case is done, there are lasting effects for themselves and others.

“It breaks your trust and faith that people will do the right thing,” she said. “You become a skeptic that people are going to tell you the truth.”

Others who have found themselves in the same situation are hopeful this case will create a precedent.

“You wouldn’t believe the number of calls we have received from complete strangers who have been fighting with oil and gas companies for years who have thanked us for taking this all the way,” she said. “They said it will help the next person.”

dcasten@okotoks.greatwest.ca

Cupid’s arrow pierces energy regulator

Monday, February 23rd, 2009
By Valerie Fortney, Calgary HeraldFebruary 21, 2009
 

 In my university days, I was a young, starry-eyed believer in love’s mysterious and magical ways. My bubble was burst in a sociology class where, to my horror, the class textbook revealed the first and biggest predictor of falling in love was proximity.

Not sense of humour or a beautiful set of pearly whites, but the familiarity of day-to-day contact with another person–no matter how glamorous or mundane the setting–is what brings out cupid’s arrow.

I was reminded of this decidedly unromantic fact upon hearing of the provincial energy regulator’s announcement Thursday that it was suspending an ongoing and contentious energy application due to a “personal” relationship between a Petro-Canada employee and a board employee–the latter who made the bombshell admission 72 hours after Valentine’s Day.

The Energy Resources Conservation Board has been holding public hearings since Nov. 12 on Petro-Canada’s controversial proposal to drill 11 sour gas wells and build a pipeline in the Eastern Slopes west of Longview.

All that has now come to an unprecedented halt. The board employee, of undisclosed gender, has been placed on administrative leave, and a third party brought in to investigate whether the integrity of the hearings has been compromised.

I asked board spokesman Bob Curran just what a “personal” relationship means in the 21st century. Although he acknowledged the vague wording, he wasn’t budging.

“What you have to understand is, because of the privacy act, there is very little we can say about this,” says Curran. “I’m legally prohibited from giving away any details.”

By Friday afternoon, Petro-Canada spokesman Kyle Happy had joined the cryptic conversation, assuring media the investigation “will demonstrate that the process has not been jeopardized in any way.”

Just when I started to think I’d entered a Seinfeld script, things got more entertaining. I called up Andrew Nikiforuk, the one person I know who is familiar with the board and, married with three sons, also with the ways of love.

But whereas I was thinking possible candlelight dinners and walks in the park, Nikiforuk’s mind went straight to the gutter.

“People have been saying for years that the ERCB and the industry are in bed together,” says Nikiforuk, an award-winning author who has followed the industry for years.

“Now we have hard evidence to prove it.”

No fan of the board, Nikiforuk says this latest boondoggle is another example of the hazards of having a provincial energy regulator that receives 58 per cent of its funding from the oil and gas industry.

“Their mandate to be impartial has been compromised once again, but this time it’s in the bedroom, not the boardroom.”

Nikiforuk is nevertheless impressed the staid environs of a hearing would spawn a relationship with enough sparks to shut down the whole show.

“Sex is the last thing you’d think of when you walk into an ERCB hearing,” he says. “I would actually argue that it’s an effective form of birth control.”

According to Joe Anglin, Nikiforuk’s not the only observer having fun with this latest news in an otherwise dry and serious sector.

“The e-mail jokes have been flying back and forth all day,” says Anglin, spokesman for nearly 1,000 Alberta landowners and farmers, who is usually angry, rather than amused, by what goes on at the board.

He shares a couple of the jokes with me. And no, they can’t be printed in this newspaper.

Anglin can be forgiven for having a laugh at the expense of the board. Back in 2007, Alberta’s Energy and Utilities Board, the precursor to the ERCB, hired private investigators who wiretapped Anglin’s home phone during another hearing. Alberta’s privacy commissioner found that the EUB violated two sections of the Freedom of Information and Protection of Privacy Act by using private eyes to collect information on private citizens.

“They’re no strangers to scandal,” says Anglin, “but this time, we’re the ones having the laugh.”

But this is just a brief interlude, a moment of levity in a world where levity is too often a rare commodity. Soon enough, things will get straight-faced once again the next time Anglin and his fellow landowners square off with the province’s regulator.

Because for these longtime adversaries, proximity has not made the heart grow fonder.

‘Personal’ relationship derails hearing for southern Alberta sour gas project

Friday, February 20th, 2009
 

A budding personal relationship has derailed an already contentious hearing into a sour gas project in southern Alberta.

In an unprecedented move, the province’s energy regulator announced Thursday it has suspended an ongoing energy application hearing due to a “personal” relationship between a Petro-Canada representative and an agency employee.

“We’ve never had to take steps of this nature,” said Bob Curran, a spokesman for the Energy Resources Conservation Board.

“We just want to ensure that the integrity of the process hasn’t been compromised in any way.”

The reasons for the delay shocked and infuriated stakeholders in the Longview area.

“My clients and I are simply surprised,” said lawyer Stan Carscallen, who represents a group of ranchers and landowners who are opposed to the drilling.

“We had no inkling any such thing was going on.”

Similarly, the lawyer who represents the Stony Nakoda Nations said his clients were stunned and disappointed, given the time, money and energy that has gone into the month-long process.

“We vigorously object to any semblance of (bias),” Oliver MacLaren said. “This is all a bit of a shock.”

The board has been holding public hearings since Nov. 12 on Petro-Canada’s controversial proposal to drill 11 sour gas wells and build a pipeline in the Eastern Slopes west of Longview.

“This has been an involved process so these shenanigans must have been pretty shady or swarmy to call things to a halt,” said 72-year-old rancher Harvey Gardner, who is opposed to the Sullivan Field project.

Curran would only disclose that the relationship began in this calendar year and that the board employee told panel officials about the relationship this week.

“The panel and other staff were unaware of (the relationship) prior to this point.”

A spokesman for Petro-Canada said the company will co-operate with the probe.

“Obviously this is disappointing news,” Kyle Happy said.

“We respect the ERCB’s decision and their hearing process. We are therefore taking this matter very seriously and will co-operate fully with the ERCB in its investigation.”

The board said it will hire an outside investigator to look into the relationship to make sure that the “integrity” of the process is upheld.

The board took pains to point out the agency employee is not a “decision maker” at the hearing, but both people have been involved in the hearing. The employee has been placed on an administrative leave, pending the results of the investigation.

Curran said in his nine years at the agency this is the only time he can recall a board hearing being suspended due to a personal relationship.

“We want to avoid any perceived conflicts,” he said. “We’re very sensitive about those sorts of things.”

Curran said it is not unheard of to see relationships between board staff members and companies with applications before the board.

“But what we do in those situations is those staff don’t participate in any files that involve any company where there’s a conflict or perceived conflict of interest,” he said.

“For example, if someone here had a spouse who worked at EnCana, then they wouldn’t work on any files that pertain to EnCana.”

Curran said the board hasn’t yet found an outside investigator, but he hopes the process will be completed as quickly as possible.

“This proceeding has taken a long time as it is.”

It remains to be seen whether the investigation into the relationship will lead to a new hearings, or what actions will be taken.

The ERCB panel hearing Petro-Canada’s application will make the final decision on what will be done.

All parties opposing the drilling said they eagerly anticipate the results of the investigation to know whether the process picks up where it left off, or starts over again.

ERCB places Petro-Canada hearing on hold - engaging independent third party to ensure integrity of hearing

Friday, February 20th, 2009

February 19, 2009

Calgary… The Energy Resources Conservation Board (ERCB) is engaging an independent third party to assist in the investigation of an ERCB employee involved in the ERCB hearing on Petro-Canada’s Sullivan Field applications. The ERCB hearing is now on hold, pending the outcome of the investigation. The purpose of these steps is to ensure that the integrity of the ERCB hearing is upheld.

 

On February 17, 2009, an ERCB employee disclosed that the employee had recently commenced a personal relationship with a Petro-Canada employee. The ERCB employee is not a decision maker in the hearing. However, both parties have been involved in the hearing on behalf of their organizations.

 

The ERCB employee has been removed from the file and has been placed on administrative leave from employment with the ERCB, pending the investigation into this matter.

 

As the integrity of the ERCB hearing needs to be upheld and the potential impact of this matter on the hearing needs to be understood, the ERCB is in the process of engaging an independent third party to assist in the investigation of the matter. The investigation will include an analysis of what impact, if any, this matter may have on the hearing and the ERCB Panel’s ability to fulfill its adjudicative function objectively and impartially.

 

The ERCB hearing began on November 12, 2008 in High River and pertains to a series of Petro-Canada applications to drill eleven sour gas wells, construct and operate one multi-well battery, and construct and operate two sour gas pipelines in Southern Alberta’s eastern slopes.

 

-30-

 

For more information, contact:

Bob Curran, ERCB Communications

Phone: (403) 297-3392

Email: bob.curran@ercb.ca

 

 

 

 

Alberta Government | Newsroom | Ministries Listing | Energy Resources Conservation Board Home Page | News Releases | Top of Page |

 

The Pembina Institute Warns Alberta’s Water At Risk

Monday, February 9th, 2009

Climate change expected to decrease Alberta’s water supply Energy sector must reduce its reliance on water

Edmonton, February 9, 2009 — With available fresh water resources expected to decrease as a result of climate change, Alberta faces the challenge of meeting its growing demand for water in asustainable manner, according to a new report by the Pembina Institute.

“We need to plan ahead and consider the impact that climate change is likely to have on fresh water resources in Alberta,” says Mary Griffiths, the lead author of the report, Heating Up in Alberta: Climate Change, Energy Development and Water.

The report draws attention to the decline of summer river flows, the future effects of climate change on water supply and the projected growth in demand for water for energy production and to meet the needs of a growing population. It also documents Alberta’s contribution to climate change through growing greenhouse gas emissions, which the Government of Alberta will allow to continue to increase through 2020.

“This report should encourage efforts to reduce water use for energy production,” says Griffiths. “It may also motivate greater action in Alberta to address climate change by reducing greenhouse gas emissions.”

Griffiths says new ways must be found to reduce water consumption for the production and upgrading of bitumen from the oil sands. “Reducing water consumption is especially important when developing new, large-scale projects for electricity generation and bitumen extraction, which are likely to be in operation for 40 years or more.”

Water use for electricity can be reduced by increasing the proportion generated by wind or solar sources. Coal-fired power plants, which produce 60 per cent of Alberta’s electricity, consume a lot of water compared with most other types of electricity generation. They are also the largest contributor to Alberta’s greenhouse gas emissions. The report also recommends charging for water used by the energy sector.

“Putting a price on water for energy use serves two purposes,” says Griffiths. “It would encourage conservation and also provide funds for better monitoring and management of surface and groundwater resources, as well as research.”

Download the report from http://www.pembina.org/pub/1779.

For more information contact:
Mary Griffiths
Senior Policy Analyst
The Pembina Institute
780-433-6675

W-5 on CTV, website article and online clips

Sunday, February 8th, 2009

For those who are interested in seeing what was said on W-5 on Saturday, February 7th, 2009 please check out their online synopsis of the show. There are some video clips as well, runtime is about 20 minutes or so. Spread the word, pass it on, and be sure to sign the petition if you get a chance.

CTV W-FIVE AIRS PROGRAM ON PIPELINE THREAT SATURDAY

Wednesday, February 4th, 2009

The W-FIVE program on the proposed Petro-Canada pipeline and the opposition it is encountering from numerous stakeholders will air on CTV this Saturday, February 7, at 7 pm, MST and ET.

CURTIS BARTLETT PRESENTS STRONG ARGUMENT FOR REJECTION OF PROPOSED PETRO-CANADA PIPELINE

Monday, February 2nd, 2009

(Francis Gardner’s notes from Bartlett’s testimony at ERCB hearing)

 

Curtis Bartlett, Southern Alberta rancher and oil company owner, presented to the Energy Research and Conservation Board on January 29, 2009 a comparison of the pipeline routes that Petro-Canada has examined, concluding with the rejection of Petro-Canada’s chosen K-Country route.

 

In a seven-hour testimony including cross-examination, Mr. Bartlett spoke to 45 points on the pipeline routes based on the Petro-Canada Environmental Assessment.  He compared the pipeline route proposed by Petro-Canada (the K -Country route) and an alternative route under consideration that travels parallel to Hwy 940.

 

Mr Bartlett said that the K-Country route travels through areas that are grown and that have no wheel traffic. It is an area that is least disturbed. In contrast, the industrial route along Hwy 940 is used for logging as well as oil and gas pipelines. The rancher and oilman reviewed 45 points to consider in the decision of which route to use and ranked them as supporting the K-Country route or supporting the Highway 940 route. Included in the categories were fragmentation, mitigation, cleaning required, reclamation costs, land owners and stakeholder, wildlife habitat and water course crossings. He stated that 31 bridges through valuable water courses could be avoided by using Highway 940. He also noted that Petro-Canada failed to consider fisheries as a factor and did not even acknowledge the existence and inherent danger to the threatened West Slope Cutthroat Trout in the Headwater region.

 

Speaking to the visibility (Category 23) of the project Mr. Bartlett stated that Petro-Canada seemed to say that if the pipeline and construction can not be seen, it must be better. Mr. Bartlett also observed that the corporate reputation of Petro-Canada will be damaged by constructing the pipeline through K-Country as opposed to hwy 940. He felt it would damage the reputation of the oil industry generally. Further, he said that when residents of the area had previously shown their opposition to the K-Country route, Petro-Canada would give the residents a lecture that K-Country was the only route. He concluded with the comment that if Petro-Canada had asked residents where to construct the pipeline, instead of the other way around, maybe no hearing would have been needed.

 

During the presentation, Mr. Bartlett read the current statistics from the Petrocant website.  When a member of the ERCB panel asked Mr. Bartlett if there was any merit in those numbers, he replied that the ERCB should listen to those numbers as Crown land or public land was involved.

 

In conclusion Mr. Bartlett ranked the 45 points that had been presented in terms of favouring the route of Hwy 940 or K-Country using solid research based on the Petro-Canada Environmental Assessment. The following results were found: 32 points favoured Hwy 940, none favoured K-Country, seven points were equal and six points had insufficient data.

 

Our way of life is on trial in oilpatch hearing

Sunday, February 1st, 2009
 

The area south and west of Longview is ranching country, but industry argues that it has also been used by the oilpatch, lumber operations and recreational users for decades.

“It is far from untouched by human hands,” Petro-Canada’s lawyers told the Energy Resources Conservation Board panel on Nov. 13.

Numerous opponents have lined up to challenge the company’s plans for this natural gas field.

Read more at:

http://www.calgaryherald.com/Technology/life+trial+oilpatch+hearing/1241170/story.html