Decision to Approve Pacific Northwest
LNG Facility a Boost to Industry
The Liberal government's decision to approve the Pacific Northwest LNG Project (Project) demonstrates that the federal government is prepared to make decisions on proposed resource development projects to get Canada's resources to market. The September 27, 2016, Decision Statement [PDF] approving the Project signals to industry, investors and the public that Canada's natural resources can, and will, be developed in a responsible and sustainable manner. The decision was announced at a joint press conference in British Columbia held by three federal ministers (Environment and Climate Change Minister Catherine McKenna, Natural Resources Minister Jim Carr and Fisheries Minister Dominic LeBlanc) and BC Premier Christy Clark.

The Project proposes to convert natural gas to liquefied natural gas (LNG) for export to Pacific Rim markets in Asia. This decision – after multi-year federal and provincial environmental assessments – could spark significant economic development across the natural gas industry in BC. If the Project receives investment approval, it will enable one of Canada's largest resource development projects, with up to $36 billion of new terminal facilities, pipeline infrastructure and upstream development. Read the full article by Jeremy Barretto, Thomas McNerney, Terri-Lee Oleniuk and Shawn Denstedt, Q.C. of Osler, Hoskin & Harcourt LLP.

Ecofiscal Commission Report Says It's
Time to Drop Costly Biofuels Subsidies
A blue-chip group of economists says federal and provincial government biofuel subsidies are an expensive experiment and it's time to let them expire.

A study released Tuesday [October 4^th] by Canada's Ecofiscal Commission finds that ethanol and biodiesel policies cost consumers and governments about $640 million a year – while cutting Canada's greenhouse gas emissions by about three million tonnes annually.

Put another way, the report says that every tonne of carbon dioxide reduced by using ethanol costs at least $180 while biodiesel reductions cost at least $128. And even those high price tags, states the report, may severely under-represent the true cost per tonne of CO₂ reductions when the full life-cycle emissions of biofuels are taken into account.

The biofuels industry lobby group, Renewable Industries Canada, was consulted by the commission during the report's preparation but called the study's conclusions "flawed and skewed."

The report comes a day after the federal Liberal government announced it would impose on provinces and territories a mandatory carbon price of $10 a tonne starting in 2018, increasing to $50 a tonne in 2022, if those jurisdictions refuse to adopt their own carbon price or cap-and-trade plan. Read the full Vancouver Sun article.

AME Issues Important Environmental Regulatory
Reviews and Health & Safety Update
The Association for Mineral Exploration issued the following Update on its public site:

Situation
Following last year's federal election result, and the provincial Auditor General's report, both governments are currently reviewing environmental procedures and regulations with a view to strengthening protections and enhancing public confidence in regard to environment, health and safety. Protecting the environment and health and safety are very important to AME members. Your input into government's reviews is critical so that any potential changes contemplated to regulations will also result in more timely and cost-effective decision-making and improved procedures for the mineral exploration and development industry.

Read the full AME article.

Where Does the Softwood Lumber
Agreement Currently Stand?
The 2006 Softwood Lumber Agreement expired on October 12, 2015. While that agreement mandated export measures on Canadian softwood lumber exports destined for the United States, it also protected those lumber exports from the potential imposition of onerous import measures by the U.S. Currently, a 12-month post-termination stand-still period protects Canadian softwood lumber exports from U.S. import measures. However, that residual protection will soon expire. On August 18, 2016, Martin Moen, Canada's Chief Negotiator, provided an update report to the Standing Parliamentary Committee on International Trade. According to his oral report, if a replacement agreement is not reached by October 12, 2016, there is a "high risk" that U.S. producers will petition the U.S. Department of Commerce for the imposition of high countervailing and antidumping duties. As in the past, these attempts likely will be made on the grounds that Canadian provinces are subsidizing the industry by setting stumpage values that do not reflect market rates and that Canadian exporters are dumping softwood lumber in the U.S. at unfairly low prices. Read the full article published on the law firm Bull, Housser & Tupper LLP website.

Report Urges Better BC Planning on Water
British Columbians should still be worried about drought, water quality and better water planning, says a new report, even though the relatively mild summer failed to cause any water shortage crises.

A University of Victoria POLIS Project on Ecological Governance report released [September 21^st] said the province should act now to build resistance to drought and floods, protect water for drinking and recreation, ensure future sustainability, more accurately map B.C.'s watersheds and better include water issues in planning natural resource and economic development projects.

"The report is trying to say British Columbia, British Columbians and in fact many Canadians for a long time haven't really thought about water issues a whole lot," said Oliver Brandes, project co-coordinator. "Sure they crop up, the drought of 2015 we think about for a bit, we respond and sometimes it's enough. Sometimes it goes away. And then we forget." Read The Vancouver Sun article.

Logging Violations Cut through Scenic Mountainside in Port Alberni – Twice
Investigation launched by watchdog finds logger violated government standards on two occasions
A heavily logged mountainside in Port Alberni has watchdogs concerned the BC government failed to notice clear violations of provincial forestry practices.

An investigation launched by BC's Forest Practices Board found a scenic mountainside on the Port Alberni Inlet was over-logged – twice – according to provincial "visual quality" standards, and the ministry of forests was warned of the violations, but failed to act.

"The government's enforcement of visual management in that instance was not adequate or appropriate," said Tim Ryan, director of the FPB. The area was cut by foresters from the Tseshaht First Nation.

According to the report, in 2011, logging left large scars across the landscape visible from the Port Alberni Harbour – a practice that is not allowed in the area, according to legislation. Read the CBC article.

Environmental Appeal Board Decisions
There were five Environmental Appeal Board decisions released in the month of September:

Environmental Management Act

• MTY Tiki Ming Enterprises Inc. v. Director, Environmental Management Act [Final Decision – Appeal Dismissed]
• West Fraser Mills Ltd.; Catalyst Paper Corporation; Zellstoff Celgar Limited Partnership; Domtar Inc.; Nanaimo Forest Products Ltd. (aka Harmac); Kruger Products LP.; Neucel Specialty Cellulose Ltd.; Canfor Pulp LP; Canadian Forest Products Ltd.; Mackenzie Pulp Mill Corporation v. Regional Director, Environmental Management Act [Jurisdiction Confirmed – All Appeals; 28 Appeals Allowed]
• Greater Vancouver Sewerage and Drainage District v. Director, Environmental Management Act [Preliminary Application – Denied]

Wildlife Act

• Darren DeLuca vs. Deputy Regional Manager, Recreational Fisheries and Wildlife Programs [Final Decision – Appeal Dismissed]
• Darren DeLuca vs. Deputy Regional Manager, Recreational Fisheries and Wildlife Programs [Application for Evidence to be Received in Confidence – Allowed]

Visit the Environmental Appeal Board website for more information.