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Relevant • Independent • Objective www.ceri.ca 1 Canadian Energy Research Institute Cumulative Effects Assessment of Natural Gas Projects in British Columbia Anna Vypovska*, Laura Johnson, Dinara Millington, Allan Fogwill IAIA2017 Conference, Montreal April 7, 2017 Relevant • Independent • Objective www.ceri.ca

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Relevant • Independent • Objectivewww.ceri.ca1

Canadian Energy Research Institute

Cumulative Effects Assessment of Natural Gas Projects in British Columbia

Anna Vypovska*, Laura Johnson, Dinara Millington, Allan FogwillIAIA2017 Conference, Montreal

April 7, 2017

Relevant • Independent • Objectivewww.ceri.ca

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Canadian Energy Research InstituteOverview

Founded in 1975, the CanadianEnergy Research Institute (CERI) is anindependent, non-profit researchInstitute specializing in the analysisof energy economics and relatedenvironmental policy issues in theenergy production, transportation,and consumption sectors.

Our mission is to provide relevant,independent, and objectiveeconomic research of energy andenvironmental issues to benefitbusiness, government, academia andthe public.

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Current Sponsors

Supporters include:

In-kind support is also provided:

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• Background and research methodology

• Cumulative adverse effects to environmental VCs

• Cumulative adverse effects to Aboriginal interests

• Key approaches and initiatives to mitigate/manage cumulative impacts

Agenda

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Source: LNG in B.C., 2016

Background: Natural Gas Production in BC

• BC is the 2nd largest natural gas producer in Canada

• > 2,900 Tcf of natural gas in place

• > 8,700 operating wells in 2014

• Rise in unconventional gas over the last 10 years

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• Since 2010, 18 major natural gas, LNG and NGL projects in BC have completed EA process

• EA applications for these projects and EA reports by regulators were reviewed for CEA

• Primary regulatory documents/policies were analyzed for cumulative effects initiatives

Research Methodology

3

10

41

Completed Federal and/or Provincial EA Process by Project Category

Natural Gas Processing Facility

Natural Gas Pipeline

LNG Facility

Natural Gas Liguids Pipeline

Source: CERI, 2016

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Cumulative Adverse Effects on Environmental VCs

• No significant cumulative adverse effects on environmental VCs for majority of the projects, if proper mitigation applied

• Significant cumulative adverse effects on Wildlife VC:

Caribou and caribou habitat (4/18 projects)

Grizzly bear (1/18 projects)

Harbour porpoise (1/18 projects)

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Significant Cumulative Effects on Caribou and Caribou Habitat

Photo Credit: Wally Gobetz via Flickr

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Significant Cumulative Effects on Caribou and Caribou Habitat (Continued)

Source: BC Ministry of Environment (MOE), 2010

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Significant Cumulative Effects on Caribou and Caribou Habitat (Continued)

Factors contributing to cumulative effects:

• Habitat loss, alteration and fragmentation

• Fragmentation of the herd

• Displacement or disruption of caribou movement

• Enhanced predator access to caribou, resulting from natural gas activities

Examples of key mitigation measures:

• Avoiding sensitive caribou habitat

• Reducing the project corridor length within caribou ranges

• Developing Caribou Habitat Restoration Plan

• Offsetting all unavoidable and residual effects

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Significant Cumulative Effects on Grizzly Bear

Photo Credit: BC Parks

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Significant Cumulative Effects on Grizzly Bear (Continued)

Source: Environmental Reporting BC and BC MOE, 2012

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Significant Cumulative Effects on Grizzly Bear (Continued)

Factors contributing to cumulative effects:

• Degradation, loss or fragmentation of habitat

• Alienating bears from suitable habitat

• Creating barriers or filters to movement

• Impacts to the reproductive potential of breeding females

Examples of key mitigation measures:

• Avoiding critical habitat for grizzly bear

• Developing a Grizzly Bear Mitigation and Monitoring Plan

• Providing funds to support conservation of grizzly bear populations

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Significant Cumulative Effects on Harbour Porpoise

Source: Fisheries and Oceans Canada, 2009

Photo Credit: National Park Service

Factors contributing to cumulative effects:• High sensitivity to acoustic

disturbance

• High degree of behavioral response

• Large industrial projects proposed in the area

Examples of key mitigation measures:

• Developing a Marine Mammal Detection Program

• Monitoring of potentially affected marine mammals

• Follow up program and post-construction monitoring

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Cumulative Adverse Effects on Aboriginal Interests

Source: Indigenous and Northern Affairs Canada, 2016

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Cumulative Adverse Effects on Aboriginal Interests (Continued)

Source: Ecotrust Canada, 2016

Example: Oil & Gas Fields on the Blueberry River FN Territory

Provincial regulator (BC EAO):• Majority of Aboriginal concerns

regarding cumulative effects were satisfactorily addressed

• No significant cumulative adverse effects will occur with the implementation of mitigation

Treaty 8 First Nations in NE BC:• Industrial development in the NE BC

results in reduced ability to exercise the Treaty rights

• Cumulative effects assessment of FNs territories, relative to their respective Aboriginal interests, should be completed

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Number of petroleum and natural gas wells (1950-2011) in the Peace Region of BC

Cumulative Adverse Effects on Aboriginal Interests (Continued)

Source: Lee and Hanneman, 2012

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Cumulative Effects Framework (BC MFLNRO, BC MOE, 2015)

• BC is one of the first provinces to develop such a framework

• Built on the Province’s existing environmental management framework

• Includes policy, procedures and decision support tools to support cumulative effects assessment and management

• Supports assessment of impacts to First Nations rights and interests

• The framework is being implemented throughout the Province

Key Approaches & Initiatives To Manage Cumulative Impacts

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Key Approaches & Initiatives To Manage Cumulative Impacts (Continued)

Source: BC Oil and Gas Commission (BC OGC), 2015

Area-Based Analysis (BC OGC 2015)

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Area-Based Analysis: What values are included?

Key Approaches & Initiatives To Manage Cumulative Impacts (Continued)

Source: BC OGC, 2014

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LNG Environmental Stewardship Initiative (BC MARR, 2014)

• A new form of collaboration between the Province, Indigenous Peoples and the LNG sector established in May 2014

• The aim is to train First Nations so they can monitor land activities linked to LNG on their traditional territory

Regional Strategic Environmental Assessment (Province of BC, 2016)

• Stems from the negotiation of Pipeline Benefits Agreements

• Involves Treaty 8 First Nations in BC, the Provincial Government and industry

• Funded by the LNG Environmental Stewardship Initiative

Key Approaches & Initiatives To Manage Cumulative Impacts (Continued)

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Canadian Energy Research Institute

Thank you for your timePlease visit us at

www.ceri.ca