Canada's National Energy Board has decided there is no need to expand the current scope of environmental review of natural gas shipments to the U. S.
In so doing, it turned down a request by the Rocky Mountain Ecosystem Coalition and other Canadian environmental groups for broader scrutiny of gas export applications. Granting the request could have delayed federal approval of shipments to Canada's only gas export customer.
RMEC said it plans to fight for tighter environmental review in Ottawa's Federal Court.
NEB found producers must file enough evidence with export bids for it to determine whether the proposal requires new upstream facilities or activities whose environmental effect is under federal control.
ALBERTA'S STANCE
Meanwhile, the Alberta government said it will not oppose the NEB's position that it can review social and environmental effects of new gas developments if the gas is planned for export.
Alberta Energy Minister Pat Black said the province wants to work with Ottawa to streamline the process and remove any duplication in environmental reviews.
Black said Ottawa already has a rigorous environmental review process in place to regulate the oil and gas industry and taxpayers cannot afford two levels of government doing the same work.
EXPORT APPROVAL
In related action, NEB approved a gas export license under an application filed by Husky Oil Ltd., Calgary. The gas is destined for a cogeneration plant under development at Tacoma, Wash. It involves 15 MMcfd for 15 years.
Husky's application was one of several NEB approved for producers last February, then suspended while the board reviewed its policy on environmental scrutiny of exports.
NEB will require Husky to provide more information if it develops further upstream facilities to meet requirements of the license.
Federal Resource,3 Minister Anne McLellan said she will recommend final cabinet clearance of several other export approvals that were placed on hold while NEB reviewed its policies. Those include export proposals by ProGas Ltd., Brooklyn Navy Yard Cogeneration Partners LP, and Western Gas Marketing Ltd.
McLellan said she is satisfied environmental concerns have been met.
More news on pp. 113-115
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
