Energy and Mines News:

An Update on Canada's LNG Industry
Canada, which ranks fifth in the world in terms of estimated shale gas reserves, is competing within the highly competitive global market for liquefied natural gas (LNG) with a number of other countries to build the infrastructure necessary to export LNG to key Asia Pacific markets. Finding new markets for Canadian shale gas reserves is of critical importance to Canada given the anticipated economic benefits that will flow to Canadians from the development of an LNG industry. This need has become more pressing in light of the US – our traditional natural gas export market – being awash with natural gas as a result of its own highly prolific shale gas reserves. Not only has this resulted in lower Canadian exports of natural gas to the US, it has also resulted in a number of US-based LNG development projects working towards final approval or, in the case of Cheniere Energy's Sabine Pass Facility, delivering first cargoes. Most of the LNG projects currently under development in Canada are located near the Prince Rupert and Kitimat areas in the northwest corner of British Columbia (BC). These areas benefit from both proximity to the major shale plays, as well as relatively short transit times to Asia Pacific markets. There are currently 21 LNG projects proposed along Canada's west coast representing aggregate LNG capacity of more than 250 metric tonnes per annum (mtpa) (based on publicly available initial and expansion plans). Of these proposed projects, one project (LNG Canada) has received a 40 year export licence from the National Energy Board to export LNG from Canada, while 16 other projects have received 25 year export licences. Read the full article by Alicia K. Quesnel and Evan W. Dixon of Burnet, Duckworth & Palmer LLP and published on Financier Worldwide. 

Pipeline Firms to Reveal Emergency Plans
Pipeline safety and emergency response procedures are about to get a whole lot more transparent in Canada. The federal Liberal government, through the National Energy Board, announced it will be issuing orders to oil and gas pipeline companies that fall under its jurisdiction to publish emergency procedure manuals on their publicly available websites by April 29. This is a strong step forward to greater transparency, corporate social responsibility and public confidence in pipeline safety in Canada. Pipeline safety has been under political, public and occupational safety scrutiny for a number of years. Pipeline expansion has been virtually paralyzed and politicized as recently as the last federal election. However, economic development and transportation of western and northern Canadian resources are dependent on getting resources, such as oil and gas, to deepwater ports for export and sale to world markets. The new Liberal government has been unclear on its position on several major pipeline projects that have been on hold due to First Nations land claims, regulatory review and general public concern about viability and safety. Read the full article by Norm Keith and published on the Canadian Occupational Safety website. 

BC Increases Potential Fines, Adds Administrative
Penalties for Mining Law Violations
Since the 2014 Mount Polley tailings dam breach, the British Columbia government has made numerous changes to its mining regulatory regime. The most recent amendments, some of which came into force late last week, significantly increased the penalties that may be imposed for violation of the Mines Act (Act). The changes heighten the potential exposure of mining companies and their directors, officers and agents in cases of unpermitted environmental impacts, as well as non-compliance with the administrative aspects of the legislation and permits issued under it. Mine owners and operators throughout British Columbia have faced increased scrutiny over the past two years, a trend which is likely to continue. The government's most recent actions have stemmed largely from the reports and recommendations of the Independent Expert Engineering Investigation and Review Panel and the Chief Inspector of Mines, delivered in January and December 2015 respectively. The government has stated that it is committed to ensuring all of the recommendations are implemented over the next 12 to 18 months. Read the full article by Roy Millen and Janice H. Walton of Blake Cassels & Graydon LLP. 

Environmental Group Ramps Up Protection Effort for Western Toads
Threatened by West Kootenay Logging
The Wilderness Committee is seeking immediate protection for 700 hectares of forest land in the West Kootenay following a new video showing countless western toads – a species of concern – crawling around logging equipment in the Summit Lake area near Nakusp. "The toads are everywhere," campaigner Gwen Barlee said in [a recent] interview. "They're in the cutblocks, on the road … under the tires of logging equipment. There's no way in a million years that you can log in this habitat without killing toads left, right and centre." The BC government spent almost $200,000 to build a toad tunnel underneath Highway 6. More than a million toadlets migrate at once, moving en mass from the lake across the highway to forested habitat where they live for four or five years before returning to the lake to breed. Read The Vancouver Sun article. 

Environmental Management Act
Bill 25, the Miscellaneous Statutes (General) Amendment Act, 2016, proposes a number of amendments to the Environmental Management Act. The intent of these changes is to provide the minister with flexibility to update area-based management plans (ABMP) and improve permitting certainty within ABMPs. These amendments will provide more certainty for those looking to invest in BC, while continuing to protect the environment and preserve the independence of statutory decision makers. ABMPs are already based on science, with technical input from experts, including statutory decision makers.

Environmental Appeal Board Decisions
There were four Environmental Appeal Board decisions released in the month of May:

Environmental Management Act

• StewardChoice Enterprises Inc. v. Director, Environmental Management Act [Preliminary Issue of Jurisdiction – Appeal Dismissed]
• Nickomekl Enhancement Society; Semiahmoo Fish and Game Club; Little Campbell Hatchery; Little Campbell Watershed Society; Frank Mueggenburg; IronGait Ventures Inc.; Randy Ryzak; Pritpal Sandhu; Gabriel Farms Ltd.; Carl and Inge Thielemann; Sonja Kroecher; East Kensington Elementary P.A.C.; Loblaws Ltd.; Patricia Rush v. District Director, Environmental Management Act [Stay Decisions – Granted with Directions]

 Water Act

• Bridge Creek Estate Ltd. v. Assistant Regional Water Manager [Order – Extension confirmed]
• Bridge Creek Estate Ltd. v. Assistant Regional Water Manager [Order – Extension confirmed]
• Bridge Creek Estate Ltd. v. Assistant Regional Water Manager [Order – Extension confirmed]

Visit the Environmental Appeal Board website for more information.