Sullivan Field Notes

Clarity shines bright in schedule for final written argument

Last week the Board provided us with guidance regarding its go forward plan for final written arguments. It seems the new season has sprouted more than just leaves and flowers but also a renewed hope for a resolution to the formal hearing process.

 

Here’s what we currently know: 

• Petro-Canada’s written argument will be filed with the Board and provided to all other Interested Parties by 4:00 p.m. on Friday, May 22.

• The written arguments for Interested Parties are expected to be filed with the Board and provided to Petro-Canada and all other Interested Parties by 4:00 p.m. on Friday, June 12.

• Petro-Canada’s final reply will be filed with the Board and provided to all other Interested Parties by 4:00 p.m. on Friday, June 26.

Petro-Canada’s written submissions will be made available on the Sullivan Field Notes site as they are submitted to the Board.

Groundhog Day

Despite the timing, this post isn’t meant as an "April Fools" joke nor is it meant to discuss the furry weather prognosticator we turn to for signs of spring…

What I wanted to talk about is the movie starring Bill Murray – I’m sure many of you have seen it – where the main character wakes up every morning only to live through the same day (over and over again). No matter what Bill’s character does he knows he’ll wake up the next morning to the same thing… no consequence, nothing changed. So you’re thinking: "What does this have to do with the Sullivan project?"

Well, a recent article penned in the Calgary Herald had me feeling like Bill. As I opened the paper on Sunday morning a sense of déjà vu set in as I read a piece that’s been a recurring theme over the past several months (although the pictures were new).

The article did an accurate job reporting the concerns of area interveners and the differing opinions of Petro-Canada and some local stakeholders (specifically around routing options); however, what was missing was any mention of the information that’s been covered during the ERCB’s recent regulatory hearing, the witness testimony provided by both sides discussing the relevancy of an alternate route, or any of the reasoning that Petro-Canada has publicly made available as to why the Eden Valley route was submitted as the preferred route.

It’s like none of this dialogue ever happened. Did I miss something? Were we back in November 2008?

The process deserves better than this. Suggesting one alternative (Highway 940 in this case) without consideration of its consequences is an unfortunate oversimplification – it’s like comparing grade school math to advanced calculus.

Many folks (me included) would agree that at first glance, it would make more sense to propose a pipeline along an area of existing disturbance when one is available; but it’s fair to say that we’re not all pipeline and environmental experts and that decisions made in this arena are clearly not black and white.

For those interested, I encourage you to visit this link to a previous blog post for some additional content on Sullivan project routing.

What I’ve found in the two years that I’ve been working on this project is that everyone who has an interest tends to be polarized on their position. There’s not much of a grey area. It’s sort of like opera – you either love it or you hate it. There are groups who are for the environment and against any development and those who struggle with the decision to support our deep-rooted ranching history or the oil and gas industry. But from what I’ve seen, there’s nothing to suggest that there isn’t room for both.

What’s important is that we find the right balance.

ERCB Issues a Decision

The ERCB released the results of its third-party investigation today – a decision that concludes that the Sullivan hearing can "continue as constituted:"

Viewing all of the foregoing facts practically and realistically, the Panel finds that no reasonable, well informed, neutral person would perceive that the Panel has been biased by the events or that these facts would prevent the Panel from making a fair, impartial and independent decision in relation to the Applications.

I’ve included a link to the ERCB’s letter which summarizes the rationale behind the Board’s decision along with a document that was provided to the Board from Mr. Perry Mack – the independent third-party tasked with investigating this issue – that highlights his findings.

Suffice to say that today’s announcement confirms the integrity of the hearing process and we’re pleased with the result.

Now with this matter addressed we can turn our attention to the conclusion of the hearing process; something that I’m sure all parties are eager to move forward!

According to today’s letter, the Panel will now proceed to decide the motions currently before it. Once these motions have been ruled on, both Petro-Canada and legal counsel for intervening parties will submit final written arguments for the Board to consider. These statements will be reviewed along with all other materials for roughly 90 days before the Board delivers it's final decision on the Project.

ERCB Puts Hearing On Hold

You may have read in today’s news that the Sullivan hearing process has been put on hold. Late yesterday the Energy Resources Conservation Board (ERCB) announced that it is engaging an independent third party to assist in the investigation of an ERCB employee involved in the hearing. According to the ERCB, the purpose of these steps is to ensure that the integrity of the ERCB process is upheld.

Obviously, Petro-Canada is concerned about this latest development.

Yesterday’s announcement has spawned today's rumour and speculation -- a mix that has alot of people asking questions. Questions are good... but let me say that perception is not the most accurate form of reality.

Our interest, like those of the other hearing participants, is to ensure the fairness of the process; specifically, one that is open and transparent. Petro-Canada supports all of its employees involved on this Project and is satisfied that they have conducted themselves with the utmost integrity.

Under the circumstances it’s important that we continue to be patient. As we await the results of the Board’s investigation into its internal practices, we believe the results will demonstrate that the process has not been jeopardized in any way.

Until then all we can do is hurry up and wait. We need to let the investigation process run its course.

A Historical Footnote

I’ve been giving a lot of thought to the recent W5 piece that ran on the weekend; especially how much more comfortable the Cartwrights looked on horseback than I ever will! 

Those of you who’ve seen it would likely agree that aside from bookend references to our proposed East Slopes development, the bulk of the content focussed on specific cases that Petro-Canada had no involvement in; a story presented under the guise of a regulatory authority tasked with monitoring and addressing development concerns.

Neither topic is one that anybody outside of these circumstances could responsibly comment on.

That said, there was one event highlighted whose importance I want to underscore because it changed the way the industry operates ...

The worst sour gas incident in Canada occurred in 1982 in a relatively unpopulated area of west-central Alberta near the hamlet of Lodgepole (highlighted here by the National Film Board). As noted in the W5 video, the high-pressure gas well blew out of control for 68 days.

What wasn’t mentioned was that the Lodgepole incident led to a comprehensive review of sour gas drilling regulations and contributed to the development of national standards for emergency response. Lodgepole was a significant turning point in both the regulation and management of sour gas wells. From what I’ve read and seen, it was a horrible incident, yet one that sparked a fervent need for change.

The Lodgepole incident spawned a generation of safety regulations that require the industry to designate hazardous drilling targets as "critical wells" and to use elaborate safety precautions at the drill site. The new regulations imposed more stringent drilling procedures at critical wells, required specialized safety features on drilling and other equipment, and forced companies to develop detailed emergency response plans before beginning to drill.

A lot has changed since 1982 – for example, TIME magazine's Man of the Year in ’82 was for the first time given to a non-human; the personal computer. To put things into perspective… blogs and the Web (common features in today’s lexicon of communication) didn’t even exist!

In the wake of the Lodgepole incident, two decades of innovation, technology and best practice have rightfully molded the circumstances under which today’s companies operate. Today is not yesterday, and at least in this sense, we’re the better for it.

What do we do now? : ERCB process and the Sullivan hearing.

A recent article in the Okotoks Western Wheel provided insight from ERCB spokesperson Darin Barter as to the steps the Board will take now that the formal part of the hearing has wrapped up in High River:

Darin Barter, ERCB spokesman, said the panel is accepting written final arguments and it still has to decide on a number of motions.

Once the final closing argument is received, the hearing is considered closed and the ERCB panel has 90 days to make its decision.

"In essence, the hearing isn't closed until the final arguments are submitted and any other motions the lawyers might make are dealt with," he said.

The final decision will be sent by courier to Petro-Canada and all intervenors and a news release will be issued making the ERCB's answer known to the public.

Sour gas development and the Sullivan project were also the source for a recent story which aired on CTV’s W5. The program takes a historical look at development of sour gas and coalbed methane throughout Alberta via a number of case studies presented by impacted stakeholders.   

A Matter of Time

A recent article in the Okotoks Western Wheel focused on the "unprecedented length" of the Sullivan hearing:

The hearing started on Nov. 12 and was initially scheduled to run until Nov. 27, with five extra days scheduled if required. The meeting has since extended beyond the extra days and has even changed venues once.

Conflicts with schedules and the diverse amount of content covered over the past three months have extended the hearing beyond what anyone expected. I personally thought this would be finished well before the New Year!

As we near the end of the hearing process it would be easy to look back and scrutinize the path its taken to get to where we are today; however, doing so would belittle what we’ve heard. Albertans have long enjoyed a thorough and transparent regulatory process, where all stakeholders can provide their views on energy development and this hearing has been no different.

Over the past three months we’ve heard from a diverse array of experts – from wildlife biologists and botanists to pipeline engineers and local range riders. We’ve heard from those with professional degrees and those whose familiarity and history with the land have made them professionals in their own right.

Has it been a long process? Yes. But when the formal hearing process concludes next week what will be left is an unprecedented volume of knowledge that the Board will use to determine if the Sullivan project is in the best interest of all Albertans.

Has it been a valuable process? No doubt.

Light at the End of the Tunnel

Happy New Year!

Over the past few weeks the Board has heard from interested parties and their legal counsel regarding the resumption of the Sullivan hearing and have since confirmed the following schedule:

• Tuesday, January 20, 2009 (starting at 9:00 a.m.)

• Wednesday, January 21, 2009 (starting at 9:00 a.m.)

• Thursday, January 22, 2009 (starting at 9:00 a.m.)

• Friday, January 23, 2009 (starting at 9:00 a.m.)

• Thursday, January 29, 2009 (starting at 8:30 a.m.)

• Friday, January 30, 2009 (starting at 8:30 a.m.)

• Saturday, January 31, 2009 (if required: starting at 8:30 a.m.)

There hasn’t been any mention of a change in venue which would suggest that the hearing will continue at the Highwood Memorial Centre in High River.

An Editorial Opinion

Prior to Christmas, Nigel Hannaford -- a member of the Calgary Herald's editorial board -- addressed the Sullivan proposal in an opinion column that focussed on some of the concerns raised by area stakeholders. Its a good piece -- what's provided is an interesting juxtaposition of the two sides of this evolving story.

Two things make this situation interesting.

One is Petro-Canada isn't doing anything illegal or unethical, nor is it seeking to bend any regulations in its favour. The land where it wants to run the pipeline is zoned for it, and it's a reputable company that's prepared to be accountable for what it does. The ranchers don't dispute any of that.

The other is that the Pekisko Group is not claiming potential harm to themselves: Speaking to the Herald editorial board last week, member Wendy Cartwright said the line wouldn't touch anybody's land. It just "wasn't in the best interests of Albertans."

Read Nigel's full piece over on the Calgary Herald.

H2... Oh?

Seasons greetings!

The Sullivan Regulatory Hearing that began back on November 12 is taking a break over the holiday season and is set to resume in High River in mid-January, 2009. Once dates have been confirmed I’ll have them posted on the site.

Last week, direct evidence was provided by members of the Pekisko Group and Dr. Brad Stelfox – a landscape ecologist whose work with a cumulative effects simulation (called ALCES) in the Eastern Slopes has garnered local interest over the years from a variety of stakeholder groups.

You may recognize Dr. Stelfox’s name from previous work that was conducted as part of the Southern Foothills Study – a study whose purpose was "to provide background data for informed land use planning and to understand the potential effect of all types of landuse development on an ecosystem which provides significant value to Alberta." Petro-Canada contributed to the support of this study.

Mac Blades, Francis Gardner and Gordon Cartwright – a trio of long-term lease holders and well-respected ranchers – presented the position of the Pekisko Group to a full house of supporters. In addition to their concerns over potential impacts on range habitat and the natural landscape, one of the recurring themes of this hearing has been water – specifically, what impact Petro-Canada’s proposed project could have on this resource?

From what I’ve heard, it’s not Petro-Canada’s use of water in the area – Petro-Canada's overall water use is expected to be very minimal in amounts allowed without formal approval under the Alberta Water Act – but rather the potential impact any development could have on water quantity and quality in the region.

It's a concern we don't take lightly.

What I can say is that there are limited pathways by which routine, anticipated Project effects will impact water quality or quantity in the Sullivan region. Through project planning and design, surface water flow will not be adversely affected by the project. Our design of well pads, pipelines and watercourse crossings incorporates features to maintain and manage surface and near surface flows. Sediment and erosion control structures will also be installed and maintained in sensitive areas.

Our environmental protection plan provides details on mitigation measures put in place to minimize spill risk and in an unlikely event, respond to any inadvertent release. As Albertans, it is in our best interest to maintain the quality of our water – as employees of Petro-Canada our expectation is to achieve nothing less.

Best wishes for a restful holiday season.