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Tue, 2012-12-18 15:32Carol Linnitt
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Shell Abandons Fracking Plans For BC's Sacred Headwaters

Shell Canada announced that the company will immediately abandon plans to frack for natural gas in an area of British Columbia known as the Sacred Headwaters on Tahltan Nation traditional territory. The province of BC says it will issue a permanent moratorium on oil and gas tenures in the area.

A four-year moratorium, scheduled to expire today, began after Shell drilled three test wells in the area, igniting protest and blockades throughout the region and at Royal Dutch Shell headquarters in The Hague. In 2004, Shell was awarded a 400,000 hectare tenure in the Sacred Headwaters, the point of origin of the Skeena, the Nass and the Stikine rivers which are among the province's most important salmon-bearing waterways.

According to the Skeena Watershed Conservation Coalition, Shell's plans involved the construction of nearly 300 kilometers of road and over 4000 wells, as well as pipeline infrastructure and compressor stations. 
 
In a separate agreement, BC will award Shell $20-million in royalty credits, as compensation for the lost tenure. The funds will be redirected toward a water recycling project at Shell's gas drilling operations elsewhere in the province.
 
“Shell has backed away from a project only a handful of times. The powerful, relentless movement led by the courageous Tahltan and supported by nearly 100,000 people from around the world has not only stopped Shell, but persuaded the BC government to permanently protect the region from any further gas development,” said Karen Tam WuForestEthics Advocacy senior conservation campaigner. 
 
“It’s an inspiring day when communities in northern B.C. can stand up to one of the largest oil companies in the world and win. Congratulations to the Tahltan, and to the citizens and government of British Columbia.”
Thu, 2012-12-13 14:05Carol Linnitt
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China Investment Corporation Eyes BC Forests, Spells FIPA Danger

The China Investment Corporation (CIC), one of the world's largest sovereign wealth funds, is set to become a powerful landowner in British Columbia if a $100 million deal with Island Timberlands, the second-largest owner of private forests in the province, goes through. The Ancient Forest Alliance (AFA) is concerned that closure of the deal, especially in light of Canada's pending ratification of the Foreign Investment Protection and Promotion Agreement (FIPA), could have negative consequences for protection of BC's treasured old-growth forests, forestry jobs, and the rights of First Nations, according to an AFA press release.

“The Communist Party of China is about to become one of the biggest landowners in British Columbia if this deal goes through,” said Ken Wu, executive director of the AFA
 
“In light of the proposed Canada-China investment treaty, this could be at the expense of BC’s environment, forestry workers and First Nations,” said Wu, adding, “Chairman Mao’s spirit is seemingly being channelled by Chairman Harper these days, as it’s hard to see how this proposed agreement will be a net benefit to Canadians.”
 
Chinese investment in Canadian resources has taken on a new significance since the Harper government announced the possibility of entering into a strict trade agreement with China. The deal, an investment treaty with a 31 year lifespan, would strongly dissuade municipal, provincial and federal governments from making any decisions that might affect the profit margin of Chinese investors.
 
“The China-Canada FIPA would allow Chinese investors in Canada to sue the federal government for lost profits due to new regulations, taxes, and environmental laws enacted federally or provincially. This would undercut the ability of future federal and provincial governments to enact new regulations or policies that might result in a lawsuit by Chinese companies which are accountable to the Chinese government,” says the press release.
 
Thu, 2012-12-13 11:05Carol Linnitt
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Van Harten: Canada "Recklessly" Entering Trans-Pacific Partnership, FIPA

Last week Foreign Affairs and International Trade Canada announced Canada had “officially joined the latest round of Trans-Pacific Partnership (TPP) trade negotiations” after more than two and a half years of talks by previously engaged nations. The 15th round of talks, involving Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam, wrapped up yesterday in Auckland. 

The TPP has already been the cause of significant concern in the U.S. where citizen groups and elected leaders have argued the agreement is shrouded in secrecy, leaving the American public to speculate about its consequences. This summer, after members of Congress complained corporate access to the trade documents superseded their own, leaked portions of the agreement began to circulate online. 
 
At the time Lori Wallach, director of Public Citizen's Global Trade Watch, said, “the outrageous stuff in this leaked text may well be why U.S. trade officials have been so extremely secretive about these past two years of [trade] negotiations.”
 
During those two years, while Canada was vying for a seat at the TPP table, America made arguments that seemed to anticipate the furor Canadians would soon feel after the announcement of the Canada-China Foreign Investment Protection and Promotion Agreement, or FIPA
 
Much like FIPA, the TPP grants unprecedented power to corporate entities with access to international tribunals that have the authority to overrule Canadian decisions regarding domestic policies that may apply to environmental regulation or reform, finance and labour policies and First Nations rights.
 
International investment lawyer and trade agreement expert, Gus Van Harten told DeSmog that Canada is currently on track to become “the most locked in developed country in the world in investor-state arbitration.” He added, Canada is “proceeding recklessly” into this enfeebling agreement which will give “almost all foreign corporations in the country exceptional leverage to pressure governments behind closed doors.”
 
The Harper government is selling out Canada's long term sovereignty and prosperity in what appears as a thoughtless gamble, without so much as a financial risk assessment. As Van Harten puts it below, “We do not intend to slip on the sidewalk in winter, but we still check for ice.”
 
I asked Professor Van Harten 5 questions about the TPP and its relation to the politically-contentious FIPA
Tue, 2012-12-11 17:02Carol Linnitt
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Northern Gateway Pipeline Hearing Exposes Gaps in Enbridge Evidence

It looks like islands aren't the only thing Enbridge overlooks these days.

A report released today by ForestEthics Advocacy summarizes all of the information missing from Enbridge evidence brought before the Joint Review Panel in the Northern Gateway Pipeline hearing. The ongoing hearings, which began in September, address the proposed project's economics, construction plans, operations, environmental impacts, risks to marine life and First Nations' rights.
 
However ForestEthics suggests the evidence submitted by Enbridge is far from comprehensive. In fact, the company has “a frightening number of gaps in its information that won't be prepared until after approval is granted” to the project, says the report.
 
Below is an abridged version of ForestEthics' Pipelines and Promises, which outlines the evidence Enbridge has so far failed to submit to the Northern Gateway hearings:
Mon, 2012-12-10 12:31Carol Linnitt
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Documents Reveal Alberta Colludes with Industry in Pipeline Safety Review

A pipeline safety review conducted by the Alberta government last summer was done with the oil and gas industry's interests in mind, according to recent documents released to Greenpeace through Freedom of Information legislation. The documents (PDF) show the review, commissioned after a series of back-to-back pipeline incidents across Alberta raised public concern, was coordinated internally between government and industry, and appears to have required industry consent.

Greenpeace campaigner Keith Stewart told the Canadian Press “there's a difference between talking to industry and asking for their approval.”

Private communications suggest government officials worked behind the scenes to develop a review plan that would please industry.
 
“It looks like industry got to write the terms for this review,” said Stewart.
 
The review was commissioned by the Alberta government after a collective of more than 50 prominent environmental, land rights, First Nations and union representatives called upon Premier Alison Redford to initiate an independent review of the province's pipeline safety. The groups, including the Alberta Surface Rights Group, The Council of Canadians, the Sierra Club and Greenpeace Canada also launched an anonymous oil spill tipline, urging individuals to make rupture and spill information public. The Alberta government does not make such information available on a public database.
 
Between May and June the pipeline industry suffered three major incidents in Alberta. The first saw 3.5 million liters of oil leaked into muskeg near Rainbow Lake. In June, a tributary of Red Deer River, which provides drinking water to many Albertan communities, was flooded with 475,000 liters of oil from an unused pipeline. Not two weeks later, more than 230,000 liters were spilled from a leaking line near Elk Lake
 
Fri, 2012-12-07 17:21Carol Linnitt
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Harper Government Approves Foreign Acquisition of Nexen, Progress Energy, Affirms FIPA Concerns

Today Prime Minister Stephen Harper announced the approval of two major acquisitions of Canadian energy companies by foreign state-owned enterprises. The Chinese National Offshore Oil Company (CNOOC) will commence the $15.1 billion takeover of Nexen Inc., a Canadian company with major holdings in the Alberta tar sands. Malaysia's Petronas will proceed with the purchase of Progress Energy Resources Corp., a Calgary company with considerable shale gas plays in British Columbia, for $5.2 billion. Petronas has plans to construct an $11 billion liquified natural gas plant in Prince Rupert to prepare gas exports for Asia. 

Prime Minister Harper announced the takeovers, which are steeped in controversy, in tandem with new takeover guidelines intended to address growing concerns of foreign ownership of Canada's resources by energy-hungry nations. He remained silent on the significance of the approval for FIPA, the Foreign Investment Protection and Promotion Agreement, also known as the China-Canada Investment Treaty.
 
“Canadians generally and investors specifically should understand that these decisions are not the beginning of a trend but rather the end of a trend,” said Mr. Harper. The full meaning of that statement, however, remains to be seen. The Harper government's decision to ratify FIPA may mean deals done with China, like today's deal with CNOOC, will carry a new significance.
 
The government previously raised the threshold for official review of foreign takeovers from $330 million to $1 billion, signaling open arms to potential foreign investors with an eye on mega projects like the Alberta tar sands. However, today that threshold was returned to $330 million for state-owned enterprises.
 
“To be blunt, Canadians have not spent years reducing ownership of sectors of the economy by our own governments only to see them bought and controlled by foreign governments instead,” Mr. Harper said

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