Tag Archives: Oil

Kinder Morgan suspends work on Trans Mountain pipeline amid B.C. opposition

A man holds a sign while listening as other protesters opposed to the Kinder Morgan Trans Mountain pipeline extension defy a court order and block an entrance to the company’s property, in Burnaby, B.C., on Saturday April 7, 2018. CP/Darryl Dyck

Kinder Morgan says it is suspending all non-essential activities and related spending on the Trans Mountain pipeline expansion project.

The company says its decision is based on the British Columbia government’s opposition to the project, which has been the focus of sustained protests at its marine terminal in Burnaby, B.C.

Kinder Morgan says it will consult with “various stakeholders” to try and reach an agreement by May 31 that might allow the project to proceed.

The company’s decision will be seen as a blow Prime Minister Justin Trudeau, who has insisted that the pipeline would be built, despite the angry protests and the B.C. government’s continued battle against the project in the courts.

The expansion, which would triple the amount of oil flowing from Alberta to Burnaby, was approved by the federal government in 2016.

Kinder Morgan says it will make a decision about the project’s future based on whether it can get “clarity” on its ability to do construction in B.C. and protect its shareholders.

“As KML has repeatedly stated, we will be judicious in our use of shareholder funds. In keeping with that commitment, we have determined that in the current environment, we will not put KML shareholders at risk on the remaining project spend,” Steve Kean, the company’s chairman and chief executive officer, said in a statement.

“A company cannot resolve differences between governments. While we have succeeded in all legal challenges to date, a company cannot litigate its way to an in-service pipeline amidst jurisdictional differences between governments.”

Kean said the uncertainty around the company’s ability to finish the project “leads us to the conclusion that we should protect the value that KML has, rather than risking billions of dollars on an outcome that is outside of our control.”

About 200 people have been arrested near Kinder Morgan’s marine terminal in Burnaby, B.C., during recent protests.

By: The Canadian Press

[SOURCE]

Keystone XL, Line 3 and Trans Mountain ‘More Vital Than Ever’ as Energy East Cancelled: Analyst


An analyst says the shelving of TransCanada Corp.’s Energy East pipeline means it’s more vital than ever that three other pipelines to oil export markets proceed as planned.

AltaCorp Capital analyst Dirk Lever said Friday that Canadian producers will have to transport any new oil production over the next year or so using railcars because the pipelines leaving Western Canada now are essentially full.

He said the next capacity increase is expected to come with Enbridge Inc.’s Line 3 replacement project, which is under construction and will add 370,000 barrels per day of capacity to the United States by early 2019.

But that additional room will only just accommodate new output from oilsands expansions and the situation will remain tight until the Trans Mountain expansion pipeline to the West Coast proposed by Kinder Morgan is in service, which is expected to add 590,000 barrels per day by late 2019.

TransCanada hasn’t yet approved its Keystone XL pipeline into the U.S., but Lever said its 830,000-barrel-per-day capacity will likely provide enough room for Canadian oil production growth until about 2030, when the industry expects Canadian production to reach five million barrels per day.

He said Energy East could come off the shelf if any of the other pipelines don’t go ahead, or if market conditions change to encourage higher production growth.

The Canadian Press

[SOURCE]

Indigenous Tribes in Peru Seize Oil Facilities Operated by Canadian Company

Indigenous tribes seize facilities at Peru oil field, warn of wider uprising 

Indigenous people living on Peru’s largest oil field concession have seized facilities operated by Frontera Energy.

They are demanding that the government apply an indigenous rights law before signing a new contract with the Canadian company.

Passed in 2011 the so-called prior consultation law, requires the government to seek input from indigenous people before approving any development plans that might affect them.

Tribal chiefs in Frontera’s Block 192 said the government has refused to carry out the consultation process even though it is negotiating a new contract with Frontera, whose 2-year contract is due to expire this month.

Protesters from the indigenous community had taken control of oil drums and other facilities to curb output in Block 192.

“If the government says it’ll carry out prior consultation, we’ll automatically end the protest” – Wilmer Chavez, chief of the community of Los Jardines

The same installation was hit with an occupation which began in April and ended in June. Indigenous communities had demanded US$1 million from Frontera for use of their territory.

Photo of occupation by El Commercio

Frontera, which produced some 7,500 barrels a day from Block 192 in July, said in a statement that it values community consent and that only the government could legally carry out prior consultation.

Amazonian tribes in Block 192 want the government to sign new commitments for the clean-up of oil pollution and for access to health care and education in the remote region before awarding Frontera a new contract.

Other Indigenous groups in the region are backing the occupation and warn there will be a wider uprising unless Peru begins proper consultations.

Nearly 25 representatives from some 120 Indigenous communities have been in Lima since Monday to talk with the government officials about the issue.

Chiefs of Amazonian tribes attend a news conference with the foreign media in Lima, Aug. 22, 2017.

Four other chiefs, speaking to foreign media in Lima described similar demands in the 16 out of 20 villages they represent in Block 192 and vowed to stage their own protests unless prior consultation was applied.

Carlos Sandi, chief of the Corrientes River basin, told reporters that the government must fulfill its promises to clean up oil pollution that is sickening local residents.

U.S. oil company Occidental Petroleum Corp operated Block 192 for about 40 years before Argentine energy company Pluspetrol took over in 2001.

Video of occupation by El Commercio

Bigstone Cree Nation Blocks Roads, Denies Access to Oil and Gas Companies

The Bigstone Cree First Nation wrote a letter intending to install gates to and from the community to control who comes in or out. (Terry Reith/CBC)

Chief plans toll to access natural resources

By Black Powder | RPM Staff, March 14, 2017

Bigstone Cree Nation Chief Gordon Auger is taking action against off-reserve industrial operators in the Wabasca area.

On March 10, the First Nation in Northern Alberta, posted a list of multinational companies on its website that would not be allowed access to the territory as of Monday, March 13th.

Companies on the no-entry list include:

  • CNRL
  • Cenovus
  • Husky
  • Laricina
  • Alberta Pacific Ltd.
  • BonaVista
  • TransCanada
  • Banister
  • Tolko
  • West Fraser
  • All Logging Trucks
  • All Star Contracting
  • Exact Oilfield

Read: the full entry/no-entry list here

According to CBC News, Bigstone Cree Nation issued a letter to Indigenous Relations Minister Richard Feehan on Feb. 20. The letter cited six reasons roads would be blocked, including “the abandonment of the local economy and local companies,” along with a lack of meaningful consultation between the band and oil and gas companies and concerns around water protection.

The letter said the community was planning on installing gates to control all traffic going through the reserve — and all oil and gas traffic heading to work.

Wind Speaker reports, at about noon on Monday, some vehicles belonging to multinational oil, gas and forestry companies were being denied access at turn-around points established on Highways 813 and 754 on Bigstone Cree Nation land.

However, on Sunday, Chief Auger told Windspeaker.com it was never his intention to turn around vehicles belonging to multi-national corporations as of Monday.

Auger says he didn’t plan this action and steps may have been taken due to misinterpretation of his directive by the management team.

Toll booths

Auger said the direction he gave to council was to determine where toll booths should be located. Then, he said, signs will be put up indicating toll booth locations and when toll-taking would begin. Augers says this will be the item on the agenda when he meets with council Tuesday morning.

He also contends that band members have the right to take action.

“They’re just practicing right now,” he said. “It’s a good exercise, but I don’t think they should be sending people back, just maybe let them know … maybe a public awareness.”

A Public Notice on the band’s website states, on March 14, 2017, Bigstone Cree Nation maintains their “STAND” that originates from the Treaty signed in 1899. This is not a blockade but rather to have toll stations set up on highway 754 and 813 to monitor who is accessing and removing resources from Bigstone Cree Traditional Land.

All traffic will be allowed through for the time being, but the monitors will remain at the sites until further notice.

Auger has said he’s not worried about companies pulling out of the area.

“We’re tired of living in a third-world situation,” he said. “Nobody should have control of our land. It’s our land.”

The border security manned toll stations not only allow the band to control who comes in and out of the territory but could also generate revenue for the community.

Protestors block Highway 754 at the Bigstone Cree First Nation as part of the Idle No More movement. The two hour blockade near Wabasca-Desmarais included a second road block on Hwy 813. PHOTO: DWAYNE YELLOWKNEE

Travis Gladue says Chief Auger is shutting out off-reserve industry without having gone to the membership first.

“He never even consulted with the membership. He never even held a band meeting. The last band meeting he had was Nov. 30 and there was a motion to have him removed,” said Gladue.

Minutes from the Calling Lake general membership meeting, provided by Gladue, indicate that a motion was made to remove Auger as “the lead negotiator for industry for Bigstone Cree Nation effective immediately. The motion was passed by a majority vote.

Gladue says the chief’s latest stand with industry will only hurt band members.

“CNRL already said they’ll issue a statement that they provide lots of jobs, lots of work to a lot of local companies that are First Nations and Metis and now they’re very, very upset and these are Bigstone members and they don’t understand why Gordon is doing what he’s doing,” said Gladue. “Because now they can’t go to work.”

Gladue alleges that Auger is wanting to charge industry 15 per cent royalty to access natural resources from the First Nation’s land. Gladue says industry is refusing to pay.

Kyle Ferguson, a spokesperson for the ministry of Indigenous relations, said the government will “make every effort to prevent the establishment of toll gates.”

“The Alberta government is aware of the potential construction of highway toll gates near Bigstone Cree Nation and is working diligently with Bigstone Chief and Council to resolve the issue promptly,” he said

“Our intent is to resolve this issue peacefully and expeditiously. Industry in the area has been notified and RCMP officers have been dispatched to monitor the situation and to alert drivers to ensure the safety of motorists and members of the First Nations,” said Ferguson in an email.

Bigstone Cree Nation is 300 km north of Edmonton Alberta. 

Sources:

cbc.ca

Windspeaker.com

US officials to hold meeting on Alberta Clipper Pipeline

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Pipeline expansion spurs meeting in Bemidji

MINNEAPOLIS (AP) Mar. 5, 2017 — State Department officials will come to Minnesota on Tuesday to hold the only public meeting on a draft environmental review for the final segment of Enbridge Energy’s project to boost capacity in its Alberta Clipper pipeline, which carries Canadian tar sands oil across northern Minnesota to Superior, Wisconsin.

The State Department’s four-year review concluded that there would be no significant environmental impacts from completing the project, which requires a presidential permit because the last remaining segment crosses the U.S.-Canadian border in North Dakota. But environmentalists and some Native American tribes dispute that and are gearing up for the meeting in the northern Minnesota city of Bemidji.

Here’s a look at some issues involved:

The pipeline

Enbridge built the Alberta Clipper, also known as Line 67, in 2009 for $1 billion. Its capacity was 450,000 barrels per day. Enbridge later decided to nearly double that to 800,000 barrels; the Calgary, Alberta-based company did most of that by adding pumping stations along the route.

Enbridge needs a presidential permit for the 3-mile segment where the 1,000-mile pipeline crosses the border. Getting the permit is a lengthy process. The Keystone XL pipeline that would run from Canada’star sands oilto Nebraska, for example, was derailed when President Barack Obama rejected its permit. President Donald Trump has invited Keystone XL developer TransCanada to reapply.

Enbridge is operating the Alberta Clipper at full capacity with a temporary workaround. It built a detour to and from a parallel pipeline that crosses the border nearby and already has a permit. Opponents challenged the legality of that setup in court but lost.

Why Enbridge wants it

Enbridge spokeswoman Shannon Gustafson called the Alberta Clipper “a vital piece of energy infrastructure” that bolsters America’s energy security because it lessens the need for imports from unstable nations. Midwest refineries depend on the oil that Enbridge pipelines deliver, she said.

“Pipelines continue to be the safest, most reliable means of transporting crude oil that Minnesotans and Midwesterners rely on in their daily lives,” Gustafson said.

Other Enbridge projects in the works are a proposed replacement for its 1960s-era Line 3 that would follow part of the same corridor. In fact, the Alberta Clipper detour uses an upgraded section of Line 3 to cross the border. Line 3 is also drawing opposition from tribes and environmentalists.

The opposition

A coalition of environmental and tribal groups opposes the Alberta Clipper because it carries tar sands oil, which they consider a bigger environmental threat than regular crude. The pipeline crosses the lake country of northern Minnesota, including the Leech Lake and Fond du Lac Ojibwe reservations. Opponents say it threatens ecologically sensitive areas, as well as resources such as wild rice that are important to the Ojibwe bands.

Some of the leading opponents, including Winona LaDuke, executive director of Honor the Earth, were also active in the fight against the Dakota Access oil pipeline. LaDuke said protests that drew thousands to the Standing Rock Reservation in North Dakota have spawned new “water protectors” to oppose Enbridge.

LaDuke is organizing a “Sustainability Summit” for Tuesday ahead of the State Department meeting. Her event will highlight clean energy alternatives. Participants will then march to the meeting and hold a rally that will include traditional Ojibwe drumming and dancing.

The meeting

The State Department is holding Tuesday’s meeting as part of the public comment period on the draft environmental review, which runs through March 27. The agency will consider those comments as it prepares the final version. The president must then determine whether issuing the permit is in the national interest.

By The Associated Press

[SOURCE]