Liquefied Natural Gas a Taxing Puzzle for British Columbia
Victoria seeking "sweet spot" for a tax that doesn't hurt LNG projects, but swells proposed prosperity fund
When Christy Clark's Liberal government announced a new tax on liquefied natural gas in the run-up to last spring's provincial election, the reception from industry was far from warm. Industry observers, industry representatives and potential foreign customers warned the tax could harm the LNG export industry in British Columbia before it got started.

The Canadian Association of Petroleum Producers, which represents LNG project proponents with interests in BC, weighed in, as did Tokyo Electric Power Co. Inc., a heavyweight global LNG buyer. Eech urged caution in proceeding with a new tax. But Clark's government argued that BC's LNG competitor, Australia, has a natural gas tax regime that charges as much as one third more than BC's existing system, which meant British Columbia could attract investment and compete while introducing a new tax on LNG. Read Vancouver Sun article.

Renewable Energy To Meet BC Premier's Objectives
The prospect of new mines, natural gas drilling and the export of liquefied natural gas (LNG) has the Province of British Columbia on the brink of a period of unprecedented growth in the energy and natural resources sector.

In May, the BC Liberal Party under the leadership of Premier Christy Clark was elected on a platform of jobs and the economy. But what might have been missed in all of the hoopla is the Premier's subtle yet impressive desire to achieve her objectives with the help of the Province's clean and renewable energy sector, as evidenced by her letters to her cabinet ministers.

Shortly after the Premier appointed the new cabinet in June, she sent out distinct mandate letters to each of her ministers which set out her priorities for government and listed specific initiatives for each Ministry. Read the full article by Warren Brazier with Clark Wilson LLP and published in their Megawatt Blog.

Panel Finds Flaws in Taseko's Revised New Prosperity Mine Proposal
Opponents of Taseko Mines Ltd.'s New Prosperity mine proposal are claiming victory, but the company is not conceding defeat, after a federal environmental review that concluded the project would have "significant adverse effects" on the environment and Aboriginal rights.

Ultimately, it is up to Environment Minister Leona Aglukkaq to decide whether the project is likely to cause significant damage. And if she agrees with the review's findings, it will be up to Prime Minister Stephen Harper's cabinet to decide whether the mine's socio-economic benefits outweigh environmental concerns enough to justify approving the $1-billion copper-gold mine. Read Vancouver Sun article. Footnote: The Prosperity deposit is a gold-copper porphyry with a one billion tonne measured and indicated resource containing 5.3 billion pounds of copper and 13.3 million ounces of gold.

Environmental Appeal Board Decisions
A number of Environmental Appeal Board decisions were released in the month of October. These included the following:

• Wildlife Act – Darren DeLuca v. Regional Manager of Fish and Wildlife
• Environmental Management Act – Lynda Gagne; Emily Toews; Charles Henry Claus; Pamela Vollrath; Elisabeth Stannus; Skeena Wild Conservation Trust; Lakelse Watershed Stewards Society v. Director, Environmental Management Act
• Water Act – Robert Ackerman; Julie Nurse; Kenneth Hampson; Alix Macdonald and Dieter Haubold; Swissterra Land Corporation v. Assistant Regional Water Manager
• Water Act – John Vlchek, doing business as Cariboo Water Wells Ltd. v. Regional Water Manager
• Water Act – Ellen Weir, Greg Whynacht; D'Arcy Lubin, Ian R. Poyntz; Catherine Willows Woodrow; Michael Dix (on behalf of himself and the Cowichan Lake Recreational Community Inc.) v. Deputy Comptroller of Water Rights
• Water Act – Katrina Sigloch v. Assistant Regional Water Manager

The Proposed Water Sustainability Act
On October 18^th, the BC Government released its legislative proposal for the new Water Sustainability Act. The new act is to replace the existing Water Act. The intent behind the new legislation is modernize the Water Act by updating regulations concerning groundwater usage, water security and overall health of aquatic environments. For example, under the new Act, companies that extract groundwater will for the first time be required to pay a fee for this privilege (85 cents per million litres). For more information including the complete legislative proposal, visit the BC Water Sustainability Act website.

FLNRO – Two New Information Documents
FLNRO has recently published the following new information documents:

• Board of Scaling Examiners (BOSE) – Examination Standards – The purpose of BOSE is to ensure consistency and fairness in setting and conducting scaling examinations.
• Provincial Scale Site List

BC Sets Out New Regulations for Pesticide Use
The Province is proposing revisions to the Integrated Pest Management Regulation (IPMR) to ensure cosmetic pesticides are being used safely and responsibly. These revisions will require stricter control on the sale and use of pesticides in private landscaped areas, while at the same time simplify requirements for the sale and use of pesticides commonly considered safe. The proposed changes include the following requirements:

• A licence is required in order to apply most pesticides in private landscaped areas.
• Licence holders are required to employ trained pesticide applicators and practice Integrated Pest Management (IPM).
• Residents are to be notified when pesticides are used on private landscaped areas.
• A list of pesticides considered safe for use by untrained people will be developed. These pesticides may be sold and applied in a private landscaped area without a licence.

These proposed revisions are detailed in a document at the Ministry of Environment's website. Read government news release.

The New Wastewater Systems Effluent Regulations
Under the Federal Fisheries Act
Each year, Canadian waters receive billions of litres of untreated wastewater. After a number of high profile prosecutions of a number of municipalities under the Fisheries Act for depositing these "deleterious substances", and after three years of consultation on national wastewater standards, the new Wastewater Systems Effluent Regulations ("Regulations") under the federal Fisheries Act have come into operation.

The Regulations set the national baseline quality standards for effluent discharged from wastewater facilities and compliance will be phased in over a number of years. Operators of so called "high risk" facilities will have to achieve compliance (and upgrade their plants) by the end of 2020, while lower risk facilities by the end of 2030 and 2040, depending on the level of risk. View the full article by Tony Crossman with Miller Thomson LLP.