MLA Report: Albertans are justifiably frustrated

By Medicine Hat News Opinion on February 28, 2020.

It was greatly disappointing to hear that Teck Resources withdrew its application for approval for the Frontier Mine project. Due to regulatory uncertainty and death by delay, a project that went through nine years of regulatory clearance and consideration that was essential to Alberta’s economic future has come to a roaring halt. This should be concerning to all Canadians as our prime minister claims to understand the challenges faced by Western provinces and that it will take Canadians working together to find solutions to these challenges. Clearly, with the implementation of Bill C-69, the overreaching implication of a punishing carbon tax, the cancellation of Northern Gateway and Energy East, Albertans are justifiably frustrated.

So, where does that leave us? Teck Resources went above and beyond in their efforts to get this project approved. Through extensive and sustained consultations with the 14 Indigenous communities directly affected by this project. Alberta’s efforts were recognized by First Nations leaders as a path forward and an innovative approach to reconciliation.

Teck even gave up its leases on crown land to create the Kitaskino Nuwenene Wildland Provincial Park which would have contributed to the largest contiguous boreal protected forest in the world. This decision came out of consultations with the Mikisew Cree First Nation and would have created a buffer zone around Wood Buffalo National Park. Collaboration also resulted in a commitment to reclaiming the land as the project progressed; speeding up the process of returning the land to its original state and having a net positive effect on biodiversity.

There were also real and tangible efforts to ensure that emissions were kept in check through cogeneration and energy efficiency measures so that Frontier would operate at a lower carbon intensity than half the oil currently being refined in the U.S. Frontier’s emissions would have accounted for less than three per cent of Canada’s emissions – even by 2050’s 150 megatonne (MT) target. Canada’s current emissions are around 750MT.

In short, Teck had jumped through every green hoop and cleared every hurdle they could imagine, all in the name of social responsibility.

And of course, lastly but certainly not the least of these, is the economic impact that would have been created. I would be remiss not to mention the 7,000 construction and 2,500 operating jobs that the project would have created for Canadians, and especially Albertans who were looking for hope.

With all these benefits to our economy, environmental stewardship, and relationships with Indigenous communities, it is unfathomable that any government would see this as anything but a huge win for Canada and an essential piece of Alberta’s energy and economic future.

The Trudeau government has made a sustained and targeted effort to stifle Alberta’s energy sector. Their reasons turn from “not enough consultation,” to “improper consultation,” to “emissions caps” (read: moving the goal posts) fast enough to make one’s head spin. The federal government has even admitted that their goal is to end fossil fuel development in the name of climate action. They have imposed upon Alberta a carbon tax which, thankfully, the Alberta Court of Appeal has deemed a “constitutional trojan horse” by a decision of 4-1.

Our government has a real plan for the environment that doesn’t tax soccer moms and hockey dads for heating their homes and driving to work. Our TIER program introduced last fall will put the onus on heavy emitters to innovate to reduce emissions, not everyday Albertans. It’s a made in Alberta solution that will have lasting effects on supporting new technology and innovation.

It’s time that the federal government acknowledges that Albertans want to be partners in prosperity. We want to compete and succeed but we most certainly do not need their “aid.” Albertans are leaders in clean energy production, some of the best in the world and we will not be sidelined by regulatory delays and political uncertainty.

Michaela Glasgo is MLA (UCP) for Brooks-Medicine Hat constituency.

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Les Landry

4 years ago

That is not what the Teck letter of withdrawal states.
One of the major factors in Tech’s withdrawal is the lack of action on climate change and I think this UCP’s government must take some if not the most responsibility for that.
The NDP’s climate action plan was done with real consultation for all major energy-producing corporations.
The only reason why Kenney and the UCP killed Alberta’s climate action plan was because of ideology, know full well that Ottawa would impose the federal carbon plan and we would lose control of that revenue. Not only did Alberta lose control of that revenue to Ottawa (something all Albertans should be questioning” it also created an uncertainty to investors and investment as we witness from Tech Frontier.

From Tech Frontier letter.
“However, global capital markets are changing rapidly and investors and customers are increasingly looking for jurisdictions to have a framework in place that reconciles resource development and climate change, in order to produce the cleanest possible products. This does not yet exist here today and, unfortunately, the growing debate around this issue has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved.”
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Here is Tech Frontier’s complete letter of withdrawal.
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Dear Minister:

I am writing to advise that after careful consideration Teck has made the difficult decision to formally withdraw our regulatory application for the Frontier oil sands project from the federal environmental assessment process.

We are disappointed to have arrived at this point. Teck put forward a socially and environmentally responsible project that was industry leading and had the potential to create significant economic benefits for Canadians. Frontier has unprecedented support from Indigenous communities and was deemed to be in the public interest by a joint federal-provincial review panel following weeks of public hearings and a lengthy regulatory process. Since the original application in 2011 we have, as others in the industry have done, continued to optimize the project to further confirm it is commercially viable.

Teck is extremely proud of the work done on this project and the strong relationships that we have formed with local governments, labour organizations, scientists, researchers and many other stakeholders, as well as with affected Indigenous communities. We believe that our agreements with Indigenous communities on Frontier, and very recently the work undertaken by the Alberta government with Indigenous communities in the region, form an important foundation for the future, and we applaud them for this milestone achievement.

However, global capital markets are changing rapidly and investors and customers are increasingly looking for jurisdictions to have a framework in place that reconciles resource development and climate change, in order to produce the cleanest possible products. This does not yet exist here today and, unfortunately, the growing debate around this issue has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved. In that context, it is now evident that there is no constructive path forward for the project. Questions about the societal implications of energy development, climate change and Indigenous rights are critically important ones for Canada, its provinces and Indigenous governments to work through.

I want to make clear that we are not merely shying away from controversy. The nature of our business dictates that a vocal minority will almost inevitably oppose specific developments. We are prepared to face that sort of opposition. Frontier, however, has surfaced a broader debate over climate change and Canada’s role in addressing it. It is our hope that withdrawing from the process will allow Canadians to shift to a larger and more positive discussion about the path forward. Ultimately, that should take place without a looming regulatory deadline.

Resource development has been at the heart of the Canadian economy for generations. Resource sectors including the Alberta oil sands create jobs; build roads, schools and hospitals; and contribute to a better standard of living for all Canadians. At the same time, there is an urgent need to reduce global carbon emissions and support action on climate change.

As a proudly Canadian company for over 100 years, we know these two priorities do not have to be in conflict. Our nation is uniquely positioned with abundant natural resources coupled with strong environmental regulations and a deeply engrained culture of social responsibility. We can build on that foundation and be a global provider of sustainable, climate-smart resources to support the world’s transition to a low carbon future. And yes, that can include low-carbon energy produced from the Alberta oil sands from projects like Frontier, using best-in-class technology, which would displace less environmentally and ethically sound oil sources.

At Teck, we believe deeply in the need to address climate change and believe that Canada has an important role to play globally as a responsible supplier of natural resources. We support strong actions to enable the transition to a low carbon future. We are also strong supporters of Canada’s action on carbon pricing and other climate policies such as legislated caps for oil sands emissions.

The promise of Canada’s potential will not be realized until governments can reach agreement around how climate policy considerations will be addressed in the context of future responsible energy sector development. Without clarity on this critical question, the situation that has faced Frontier will be faced by future projects and it will be very difficult to attract future investment, either domestic or foreign.

Teck has not taken this decision lightly. It is our hope that the decision to withdraw will help to create both the space and impetus needed for this critical discussion to take place for the benefit of all Canadians.

Sincerely,

Don Lindsay
President and Chief Executive Officer
Teck Resources Limited

Fedup Conservative

4 years ago

Not only did they know we had to do something about our pollution problem to help them sell their product abroad, they wanted to get the celebrities off their backs. Other countries were cleaning up their act so why not Alberta? Oilmen think we are going to lose a lot more of our oil industry if these Reformers don’t change their attitudes toward global warming and start cooperating with our governments to try to do something about it.