The various LNG Export Terminals proposed to be built in British Columbia may be subject to environmental assessment (or EA) under both the Canadian Environmental Assessment Act, 2012 and the British Columbia Environmental Assessment Act. The EA process, whether under the Federal or Provincial legislation, examines projects to identify adverse environmental, economic, social, heritage and health effects that may occur during development and operation of proposed facilities. The EA process includes involvement/consultation with interested parties such as First Nations and working groups, technical studies and the development of comprehensive reports.
In order to minimize duplication and streamline these generally similar Federal and Provincial processes, the Canadian Environmental Assessment Agency (CEAA) and the British Columbia Environmental Assessment Office (the BC EAO) have entered into a Memorandum of Understanding on the Substitution of Environmental Assessments with the Canadian Environmental Assessment Agency (the MOU). The MOU provides a mechanism for the CEAA to issue a Substitution Order and to effectively substitute the BC EAO's process for its own and to rely on the record established by the BC EAO in conducting its EA of projects located in BC, such as the LNG Export Terminals. Any such Substitution Order is subject to certain terms and conditions including as to the general nature of the process to be run by the BC EAO and also clearly preserves the right of the Federal government to exercise any judgement or discretion which it may possess under applicable Federal legislation as it sees fit. However the MOU does at least hold out the prospect of reducing unnecessarily duplicative proceedings.
Already, the BC EAO has been substituted for the CEAA in connection with several of the most advanced EA Applications – and many industry participants and commentators believe this trend is likely to continue as further EA Applications are submitted and processed.
The BC EAO EA process consists of three Stages:
- Pre-Application Stage: no fixed timeline; it
will largely be influenced by the time it takes to conduct the
necessary field studies and fulfill the Application Information
Requirements in order for a project proponent's EA Application
to be accepted as complete by the BC EAO.
- Application Review Stage: 180 days following
acceptance by the BC EAO of an EA Application for it to deliver an
Assessment Report and Recommendation.
- Decision Stage: 45 days following delivery of the BC EAO Assessment Report and Recommendation.
The following chart provides a summary of the major BC LNG Export Terminals announced to date and the status of their EA Applications.
PROJECT |
PARTNERS ON PROJECT |
STATUS OF ENVIRONMENTAL ASSESSMENT |
Kitimat LNG |
Apache Canada Ltd. (50%) Chevron Canada Limited (50%) |
Received British Columbia Environmental Assessment Certificate on 2006/06/06. Received CEAA approval on 2006/08/1. Status: Approved. |
BC LNG Export |
Douglas Channel LNG Partners comprised of LNG Partners and Haisla Nation (which includes 16 first nations groups)* *Project currently subject to court-sanctioned reorganization under the Companies' Creditors Arrangement Act (Canada) |
Not yet initiated. |
LNG Canada |
Shell Canada Ltd (40%) KOGAS Canada LNG Ltd (Korea Gas Corporation) (20%) Diamond LNG Canada Ltd. (Mitsubishi Corporation) (20%) Phoenix Energy Holdings Limited (Petro China Company Limited) (20%) |
Substitution Order issued 2013/05/31. BC EAO Application submitted: 2014/02/24. Status: Application Review Stage. |
Prince Rupert LNG |
BG Group Plc |
No Substitution Order issued. BC EAO Pre-Application Stage start date: 2013/05/02. CEAA Application submitted: 2013/06/21. Status: Pre-Application Stage at BC EAO; CEAA review in process. |
WCC LNG LTD. |
Imperial Oil Ltd. (50%) Exxon Mobil Corp (50%) |
Not yet initiated. |
Pacific Northwest LNG |
Petroliam Nasional Berhad through Progress Energy Canada Ltd (62%) China Petroleum & Chemical
Corp. Japex (10%) Indian Oil Corporation (10%) Petro-Brunei (3%) |
No Substitution Order issued. BC EAO Application submitted: 2014/02/20. CEAA Application submitted: 2013/04/08. Status: Pre-Application Stage at BC EAO; CEAA review in progress. |
Woodfibre LNG Export Pte. Ltd. |
Pacific Oil & Gas Ltd. |
Substitution Order issued: 2014/02/19. BC EAO Pre-Application Stage start date: 2013/11/27 Status: Pre-Application Stage. |
Triton LNG LP |
AltaGas Ltd. (50%) Idemitsu Kosan Co., Ltd. (50%) |
Not yet initiated. |
Aurora Liquefied Natural Gas Ltd. |
Nexen Inc. (60%) Inpex Corp. and JGC Corp. (40%) |
Substitution Order applied for by BC EAO: 2014/06/24. BC EAO Pre-Application Stage start date: 2014/06/23. Status: Pre-Application Stage. |
Kitisault Energy LNG |
Kitisault Energy Ltd. |
Not yet initiated. |
Stewart Energy LNG |
Canada Stewart Energy Group Ltd. |
Not yet initiated. |
Woodside Petroleum Ltd. |
Woodside Petroleum Ltd. |
Not yet initiated. |
Notes
- Pre-Application Stage:The Pre-Application
Stage is used to ensure that EA Applications contain the
information necessary for the BC EAO to actually undertake a
project EA and make recommendations. The BC EAO issues
Application
Information Requirements (AIR) which
identify the matters that will be considered in the EA and what
information must be included in an EA Application. A working group
is established and is involved in the development of the AIR. As
well, First Nations are consulted. The AIR include baseline
studies, project benefits (including socio-economic impacts such as
estimated government revenues and contributions to community
development), cumulative impacts and proposed mitigation measures
and First Nations impacts. Neither the legislation nor the BC EAO
impose time restrictions on the Pre-Application Stage, however
there is a maximum 30-day limit for the BC EAO to evaluate and
determine completeness of an EA Application.
- Application Review Stage:Following acceptance
of an EA Application, the Application Review Stage begins. This
involves public comment periods and the drafting by the BC EAO of
an Assessment Report to document: (i) the findings of the
assessment; (ii) outstanding issues; and (iii) methods to address
documented issues. The BC EAO will share its draft Assessment
Report with the proponent, the working group and First Nations. The
BC EAO typically provides three weeks for comment. As the last step
of the Application Review Stage, the BC EAO submits its final
Assessment Report, which includes recommendations, to the British
Columbia Minister of Environment and the Minister of LNG
Development (the Ministers) who have authority to decide whether or
not to issue an Environmental Assessment Certificate. The BC EAO
has a maximum of 180 days following the acceptance of an EA
Application to deliver its Assessment Report.
- Decision Stage:Upon receiving the BC EAO's Assessment Report, the Ministers have 45 days to make a decision. In doing so, the Ministers must consider the Assessment Report, any documents accompanying it and any other matters they believe are relevant to public interest. If the Ministers issue an Environmental Assessment Certificate, the proposed project may proceed and provincial authorities may issue other necessary project approvals, subject to the satisfaction of approval requirements. If a Federal EA is triggered, the Federal Minister of Environment's approval is also required, even if a Substitution Order has been issued under the MOU. Similar to the Provincial process, if the Federal Minister issues a positive EA decision, Federal authorities may issue other necessary approvals under their jurisdiction.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.