Canada's National Energy Board has approved long term natural gas exports worth more than $1 billion (Canadian) during 15 years.
The contracts, subject of export hearings this fall, cover volumes of 424 bcf for terms of 9-15 years to U.S. customers.
Export applications were approved for CanStates Gas Marketing Ltd., Chevron Canada Resources Ltd., Renaissance Energy Ltd. and Western Gas Marketing Ltd., all of Calgary.
Buyers are Hermiston Generating Co., Oregon; AmGas Inc., Omaha; Bay State Gas Co. and Northern Utilities Inc., New Hampshire and Maine; and Michigan Gas Utilities, Michigan.
Officials with industry applicants and a number of environmental groups clashed frequently at NEB hearings in the fall on the adequacy of environmental regulation for gas exploration in western Canada (OGJ, Dec. 5, p. 24).
BATTLE LINES DRAWN
It took little time for environmentalists to draw new battle lines with industry over the NEB decision.
The Rocky Mountain Ecosystem Coalition (RMEC), one of the environmental groups, requested that Alberta's Energy Resources Conservation Board (ERCB) hold a hearing on the CanStates approval.
CanStates requires a removal permit from ERCB. The board will make a decision shortly on whether a hearing is necessary.
RMEC's Mike Sawyer said it is very clear that the battleground on the environmental issue is in the marketplace. That group and Greenpeace Canada are mounting public relations campaigns this winter with U.S. consumers in the Pacific Northwest.
INDUSTRY CAMPAIGNS
The Canadian Association of Petroleum Producers (CAPP) also is planning a campaign aimed at U.S. gas consumers. CAPP president Gerri Protti said the NEB decision provides investors with assurance of uninterrupted gas supplies from Canada.
Meanwhile, Canadian Gas Association (CGA) said it will join industry efforts to persuade U.S. consumers that Canadian environmental regulation is effective. The 320 member association represents gas buyers in Canada, including pipelines, distributors, appliance makers, and some exploration and development companies.
CGA Pres. Gerald Doucet said the main producing provinces of Alberta and British Columbia are vulnerable to exploitation of a perception that there is going to be less attention to regulation and less commitment in terms of resources to environmental review.
He contends that is a false perception because there are extensive regulatory requirements in place. Doucet said CGA plans to release a study shortly that shows gas industry emissions are declining.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
Issue date: 12/12/94
