CANADIANS SEE NO THREAT TO GAS EXPORTS

Industry spokesmen say a preliminary ruling by Canada's National Energy Board on environmental issues is not a threat to natural gas exports to the U. S. NEB said Mar. 17 it will reconsider whether its environmental screening of applications for gas exports is adequate. The statement followed a decision by the Supreme Court of Canada that said Ottawa must increase environmental tests of hydroelectric exports from Quebec. There must be more consideration of upstream effects.

March 28, 1994

2 min read

Industry spokesmen say a preliminary ruling by Canada's National Energy Board on environmental issues is not a threat to natural gas exports to the U. S.

NEB said Mar. 17 it will reconsider whether its environmental screening of applications for gas exports is adequate.

The statement followed a decision by the Supreme Court of Canada that said Ottawa must increase environmental tests of hydroelectric exports from Quebec. There must be more consideration of upstream effects.

Environmentalists say similar requirements should apply to gas exports, involving more than 2 tcf/year to the U.S.

Gerry Protti, president of the Canadian Association of Petroleum Producers, said the regulatory and environmental approval process in producing areas of Alberta, Saskatchewan, and British Columbia is effective.

"I don't see any reason why current procedures shouldn't hold at the end of the day," he said.

The Rocky Mountain Ecosystem Coalition, which asked NEB to review its procedures, said current environmental screening is a superficial rubber stamp that must be changed.

NEB agreed to review its environmental screening procedures. It will conduct a hearing on the issue. Meantime, NEB has placed a hold on approval of gas export licenses covering about 250 bcf scheduled to become effective soon.

The review involves approval of 16 export licenses granted this year to Husky Oil Operations Ltd., ProGas Ltd., Western Gas Marketing Ltd., Shell Canada Ltd., and Brooklyn Navy Yard Cogeneration Partners LP.