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This is a guest post by energy economist Andrew Leach.
Neil Young and the Honour the Treaties Tour is crossing the country in support of the Athabasca Chipewyan First Nation’s court challenge against Shell’s proposal to expand its mining operations north of Fort McMurray.
The biggest risk I see from this tour is not that Neil Young says things which are wrong (there have been a few), that he blames Prime Minister Harper for promoting an industry that has played an important role in the policies of pretty well every Prime Minister to precede him in the past four decades (that part was pretty clear), or, least of all, that he’s a famous musician who hasn’t spent his life working on energy policy.
The biggest risk I see is that all of the heat and light around the Neil Young tour will distract you from what you should do, which is to sit down, read the mine approval, and decide for yourself what you think.
A joint review panel approved (PDF) the Jackpine Expansion in July 2013, and in December, the project received cabinet approval. The most important issue here, so far over-shadowed during Neil Young’s tour, is summarized in one line in the decision letter: “the matter of whether the significant adverse environmental effects (of the project) are justified in the circumstances.”
This decision is likely to be as important for the future of the oil sands in Canada and its so-called social license as the pipelines, rail accidents and greenhouse gas policies which have been covered to a much larger degree in the media. This is a decision where your government had spelled out clearly before it the environmental risks and uncertainties of an oil sands project, in all its gory detail, and decided it was worth it or, “justified in the circumstances.”
We’ve come a long way from the days when then-Premier Ed Stelmach declared environmental damage from the oil sands to be a myth. Around that time, in its approval of the Kearl oil sands mine, for which Phase I started last year, a Joint Review Panel concluded that, “the project is not likely to result in significant adverse environmental effects.” But, the panel evaluating Kearl raised a flag, saying that, “with each additional oil sands project, the growing demands and the absence of sustainable long-term solutions weigh more heavily in the determination of the public interest.”
We’ve now reached the point—the panel evaluating the Jackpine Mine left no doubt—where significant environmental consequences will occur in order to not (and, I kid you not, these are the words used) sterilize bitumen. Reading the Report of the Joint Review Panel (warning, it’s a slog) will be eye opening. Let me give you a couple of excerpts, in case you can’t spare the time:
· The Panel has concluded that the Project would provide significant economic benefits for the region, the province, and Canada
· The Project will provide major and long-term economic opportunities to individuals in Alberta and throughout Canada, and will generate a large number of construction and operational jobs.
· The Panel concludes that the Project would have significant adverse environmental project effects on wetlands, traditional plant potential areas, wetland-reliant species at risk, migratory birds that are wetland-reliant or species at risk, and biodiversity
· The Panel understands that a large loss (over 10,000 hectares) of wetland would result from the Project, noting in particular that 85 per cent of those wetlands are peatlands that cannot be reclaimed.
· The Panel finds that diversion of the Muskeg River is in the public interest, considering that approximately 23 to 65 million cubic metres of resource would be sterilized if the river is not diverted
· The Panel recognizes that the relevant provincial agencies were not at the hearing to address questions about why the Project (which seeks to divert the Muskeg River: author’s addition) is not included in the Muskeg River Interim Management Framework for Water Quantity and Quality;
· The Panel concludes that it could not rely on Shell’s assessment of the significance of project and cumulative effects on terrestrial resources;
· The Panel notes that a substantial amount of habitat for migratory birds that are wetland or old-growth forest dependent will be lost entirely or lost for an extended period;
· The Panel is concerned about the lack of mitigation measures proposed for loss of wildlife habitat…that have been shown to be effective.
Don’t stop reading before you get to the good parts:
· Although the Panel has concluded that the Project is in the public interest, project and cumulative effects for key environmental parameters and socioeconomic impacts in the region have weighed heavily in the Panel’s assessment;
· All of the Aboriginal groups that participated in the hearing raised concerns about the adequacy of consultation by Canada and Alberta, particularly with respect to the management of cumulative effects in the oil sands region and the impact of these effects on their Aboriginal and treaty rights.
It’s these last two that have got us to where we are today—to a First Nation challenging the government in court for a decision that it made which valued bitumen over the environment and their traditional territory and for not fulfilling its constitutional duty to consult on that decision.
The decision on this project will, in all likelihood, go all the way to the top court in the land. The decision which really matters, however, will be the one you take: is it justified, in your mind, given the circumstances?
Image Credit: Waging Heavy Peace book cover
Shell Canada’s Jackpine oilsands mine expansion plan has received the go-ahead from Ottawa, despite the environment minister’s view that it’s “likely to cause significant adverse environmental effects.”
In a statement late Friday, environment Minister Leona Aglukkaq concluded that the effects from the 100,000-barrel-per-day expansion are “justified in the circumstances.”
The nearby Athabasca Chipewyan First Nation has said the project will violate several federal laws covering fisheries and species at risk, as well as treaty rights.
They said they had received so little information on how Shell plans to live up to conditions imposed on it by a federal-provincial panel that they asked Ottawa for a 90-day delay on the decision – originally expected Nov. 6 – to work some of those issues through.
They were granted a 35-day delay, but Friday’s decision didn’t even wait until that period was up.
Allan Adam, chief of the Athabasca Chipewyan First Nation, was outraged that the federal decision came as the government was still supposed to be in talks with the band about how the project’s effects were to be mitigated.
“They just kept us in the loop and strung us along and played games with us,” he said. “To them it’s all a game.”
- Northern Alberta band challenges Jackpine oilsands proposal
- Jackpine review panel won’t rule on First Nations challenge
- Court rules against aboriginal groups on Jackpine decision
- Supreme Court refuses First Nation’s appeal over oilsands expansion
Although all 88 conditions the review panel placed on the project are now legally binding, Adam said neither the government nor the company has explained how those conditions will be met.
Adam said the government’s move to go ahead despite the serious environmental consequences of the project leave the band little choice.
“This government has to realize we’ll be holding them accountable,” he said. “We’ll be looking at legal action and we’ll pursue this through legal action.”
Greenpeace speaks out against expansion
Greenpeace Canada issued a statement accusing the Harper government of putting the short term interests of oil companies ahead of environmental protection and First Nations treaty rights.
“Canada would be much better off diversifying its economy, investing inrenewables, green jobs and projects that get us out of this madness not deeper into it,” the statement said.
“How many more extreme weather events will it take till our Prime Minister realizes this is one problem he can’t mine his way out of?”
The Jackpine expansion would allow Shell to increase its bitumen output by 50 per cent to 300,000 barrels a day.
“We’re reviewing the recommendations and proposed conditions attached to the approval,” said Shell spokesman David Williams.
Williams added Shell must consult with the minority partners in the project – Chevron and Marathon – before making a formal decision to proceed.
Review panel suggests compensation for ‘irreversible damage’
A review panel concluded last July that the project was in the public interest but warned that it would result in severe and irreversible damage so great that new protected areas should be created to compensate.
The review concluded that the project would mean the permanent loss of thousands of hectares of wetlands, which could harm migratory birds, caribou and other wildlife and wipe out traditional plants used for generations.
It also said Shell’s plans for mitigation are unproven and warned that some impacts would probably approach levels that the environment couldn’t support.
Shell has said Alberta’s new management plan for the oilsands area will provide more concrete data to assess and mitigate environmental impacts.
The company has purchased about 730 hectares of former cattle pasture in northwestern Alberta to help compensate for the 8,500 hectares of wetland that would be forever lost.