PC candidates take aim at recent Tory policies

By James Wood And Chris Varcoe, Calgary Herald May 26, 2014

Tory leadership candidates attempted to regain ground from the opposition on key policy issues and reconnect with the party grassroots Monday in the race to become Alberta’s next premier.

Former Calgary alderman Ric McIver delivered his leadership nomination papers to the Progressive Conservative party, while former federal cabinet minister Jim Prentice and Edmonton MLA Thomas Lukaszuk both offered up positions distancing them from recent Tory policies.

In a speech in Medicine Hat, Prentice said successive PC governments have “been less than careful about the protection of our property rights in this province.”

Taking aim at concerns that arose under former premier Ed Stelmach, Prentice promised that if he becomes premier, he would introduce a bill affirming the rights of property owners in cases where their land is taken for public purposes.

“That will make it abundantly clear that people have not been deprived of their property rights,” Prentice, a lawyer who specialized in property rights issues before becoming the MP for Calgary Centre-North, said in an interview.

“People are entitled both to be heard and to be fairly compensated.”

Prentice also said the new Alberta Energy Regulator — created under former premier Alison Redford — is not yet meeting the needs of either the energy industry or landowners.

The former federal environment minister said he would ensure farmers and ranchers directly and adversely affected by adjoining energy operations will have legal standing at hearings.

Keith Wilson, an Edmonton lawyer who has battled the Tory government over land rights issues for years, said he was “surprised and encouraged” by Prentice’s detailed promise to deal with the intervener issue, but believes a law affirming property rights doesn’t go far enough.

Redford resigned in March amid growing controversies over her travel bills and spending of taxpayers money, triggering the PC leadership contest.

Lukaszuk — who resigned as jobs minister last week to run for leader — called for additional oversight of the premier’s office by creating a separate legislative officer in charge of reviewing all government finances, mirroring an oversight position in Ottawa.

“Having a form of scrutiny over the expenditures and the budgetary processes, particularly some of the offices such as the premier’s office, would give Albertans a peace of mind. This is a bit of a sad situation, because actually historically … we never needed to put any measures in place,” said Lukaszuk.

Just days before Redford’s resignation, the government defeated a Wildrose private member’s bill that would have created an independent budget officer.

But Lukaszuk — who has hit Medicine Hat, Lethbridge and Calgary since Sunday — said he would also empower backbench MLAs and opposition members by beefing up all-party legislative committees to take on roles such as vetting all new legislation.

He intends to file his candidacy before the party’s May 30 deadline, while Prentice is already the first official candidate in the contest, which culminates in a September vote of party members.

McIver, who will become the second candidate in the race once he’s registered with Elections Alberta, said his recent travels gave him a chance to hear varying concerns on a regional basis — including 24-hour health care in Cold Lake, land use in Medicine Hat and the fate of the Michener Centre in Red Deer.

He said his platform will be developed in a similar fashion.

“You’re going to see me go out, talk to Albertans, listen to them, find out what’s important and then you’re going to see me unveil policies on the key issues,” said the former infrastructure minister.

“If I do my job well, they’ll decide I’m the right person to lead.”

[email protected]

Write-down of two-thirds of US shale oil explodes fracking myth

The Guardian
Industry’s over-inflated reserve estimates are unravelling, and with it the ‘American dream’ of oil independence

Next month, the US Energy Information Administration (EIA) will publish a new estimate of US shale deposits set to deal a death-blow to industry hype about a new golden era of US energy independence by fracking unconventional oil and gas.

EIA officials told the Los Angeles Times that previous estimates of recoverable oil in the Monterey shale reserves in California of about 15.4 billion barrels were vastly overstated. The revised estimate, they said, will slash this amount by 96% to a puny 600 million barrels of oil.

The Monterey formation, previously believed to contain more than double the amount of oil estimated at the Bakken shale in North Dakota, and five times larger than the Eagle Ford shale in South Texas, was slated to add up to 2.8 million jobs by 2020 and boost government tax revenues by $24.6 billion a year.

Industry lobbyists have for long highlighted the Monterey shale reserves as the big game-changer for US oil and gas production. Nick Grealy, who runs the consultancy No Hot Air which is funded by “gas and associated companies”, and includes the UK’s most high-profile shale gas fracker Cuadrilla among its clients, predicted last year that:

“… the star of the North American show is barely on most people’s radar screens. California shale will… reinvigorate the Golden State’s economy over the next two to three years.”

This sort of hype triggered “a speculation boom among oil companies” according to the LA Times. The EIA’s original survey for the US Department of Energy published in 2011 had been contracted out to Intek Inc. That report found that the Monterey shale constituted “64 percent of the total shale oil resources” in the US.

The EIA’s revised estimate was based partly on analysis of actual output from wells where new fracking techniques had been applied. According to EIA petroleum analyst John Staub:

“From the information we’ve been able to gather, we’ve not seen evidence that oil extraction in this area is very productive using techniques like fracking… Our oil production estimates combined with a dearth of knowledge about geological differences among the oil fields led to erroneous predictions and estimates.”

The Intek Inc study for the EIA had relied largely on oil industry claims, rather than proper data. Hitesh Mohan, who authored the Intek study for the EIA, reportedly conceded that “his figures were derived from technical reports and presentations from oil companies, including Occidental Petroleum, which owns the lion’s share of oil leases in the Monterey Shale, at 1.6 million acres.” Mohan had even lifted his original estimate for the EIA to 17 billion barrels.

Geoscientist David Hughes, who worked for the Geological Survey of Canada for 32 years, said:

“The oil had always been a statistical fantasy. Left out of all the hoopla was the fact that the EIA’s estimate was little more than a back-of-the-envelope calculation.”

Last year, the Post Carbon Institute (PCI) published Hughes’ study, Drilling California: A Reality Check on the Monterey Shale, which conducted an empirical analysis of oil production data using a widely used industry database also relied on by the EIA. The report concluded that the original EIA estimate was “highly overstated,” and unlikely to lead to a “statewide economic boom…. California should consider its economic and energy future in the absence of an oil production boom.”

A spokesman for the Institute, Tod Brilliant, told me:

“Given the incredible difference between initial projections of 15 billion barrels and revisions to 600 million, does this not call into account all such global projections for tight oil?”

As I’d reported earlier in June last year, a wider PCI study by Hughes had come to similar conclusions about bullish estimates of US shale oil and gas potential, concluding that “light tight oil production in the USA will peak between 2015 and 2017, followed by a steep decline”, while shale gas production would likely peak next year. In that post, I’d pointed out previous well-documented, and alarmingly common, cases of industry over-estimates of reserve sizes which later had been questioned.

Analysts like Jeremy Leggett have said, citing exaggerated oil industry estimates, that if reserve and production reality are indeed significantly lower than industry forecasts, we could be at risk of an oil shock as early as within the next five years.

The latest revelations follow a spate of bad news for industry reassurances about the fracking boom. New research published this month has found that measured methane leaks from fracking operations were three times larger than forecasted. The US Environment Protection Agency therefore “significantly underestimates” methane emissions from fracking, by as much as a 100 to a 1,000 times according to a new Proceedings of the National Academy of Sciences study published in April.

The Associated Press also reported, citing a Government Accountability Office investigation, that the US Interior Department’s Bureau of Land Management had failed to adequately inspect thousands of oil and gas wells that are potentially high risk for water and environmental damage.

Despite the mounting evidence that the shale gas boom is heading for a bust, both economically and environmentally, both governments and industry are together pouring their eggs into a rather flimsy basket.

According to a secret trade memo obtained by the Huffington Post, the Obama administration and the European Union are pushing ahead with efforts to “expand US fracking, offshore oil drilling and natural gas exploration”, as well as exports to the EU, under the prospective Transatlantic Trade and Investment Partnership (TTIP) agreement.

Dr. Nafeez Ahmed is an international security journalist and academic. He is the author of A User’s Guide to the Crisis of Civilization: And How to Save It, and the forthcoming science fiction thriller, Zero Point. Follow him on Facebook and Twitter @nafeezahmed.

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AltaLink’s transition to Berkshire Hathaway Energy will be ‘seamless,’ official says

Beef producers plead their case

CANADA-U.S. MEAT DISPUTE TAKES A FREE-SPEECH TWIST
Alexander Panetta
THE CANADIAN PRESS — WASHINGTON

Canadian livestock producers were in a U.S. courtroom Monday fighting against labeling requirements blamed for having devastated their exports. Their case invoked one of America’s most cherished principles: the free-speech guarantee in the First Amendment of the Constitution. The public gallery was filled as close to 200 people came to hear the argument in the U.S. Court of Appeals, the second-highest court in the country.  According to a coalition of industry groups from the three North American countries, foundational speech rights are violated when meat companies are forced to stamp, “Born in Canada,” or “Born in Mexico,” on their packaging.  They say country-of-origin labeling isn’t just costly, from a logistical standpoint. They say it also amounts to the government forcing them to divulge information, against their will and without justification, in breach of the principles espoused by America’s founding fathers. The multiple parties with standing in the case were represented by a pair of attorneys: a federal lawyer who argued on behalf of the U.S. government, against an opponent who represented meat-industry groups.  The industry attorney argued that the
rules are nothing more than protectionism, disguised as an attempt to help consumers learn about the origin of their food. She said the rules did not meet the standard set by past court cases about what corporations need to disclose.  “We’re here representing ranchers who are feeling a colossal impact,” said Catherine Stetson, arguing for the American Meat Institute and its Canadian-Mexican allies. “(Proponents of labeling) want to favor meat that is born, raised and slaughtered in the U.S.”  U.S. rules on country labels, introduced in 2002 and enforced since 2008, are blamed for reducing Canadian cross-border meat exports by half. The provisions are opposed by various elements in the U.S.
meat industry — but are supported by some border-area ranchers who compete with Canadians and Mexicans, and by their allies in Congress. The labeling rules are also being fought at the World Trade Organization. In the U.S. court system, a lower court judge sided against the meat coalition’s speech argument. District Court judge Ketanji Brown Jackson, appointed by President Barack Obama, concluded last year that free speech standards applied differently to corporations.  In a rare reversal last month, however, the country’s second highest court agreed to hear the case.  The surprise announcement from the U.S. Court of Appeals came just a few days after a panel of three judges declared they would not take it on.  Oral arguments were held Monday. Attorneys for the opposing sides answered questions from 11 judges at the Court of Appeals.  The lawyer speaking for the U.S.  government insisted the labeling rule had legitimate aims. He said the goal was to help consumers — not give the domestic industry a protectionist advantage.  “It’s furthering consumers’ ability to act on their own preference,” said Daniel Tenny, the U.S. Department of Justice lawyer.  “We’re not directly trying to help American ranchers . . . (although) it might have that effect.”  That federal lawyer received a rough ride from one judge appointed by George W. Bush. Brett Kavanaugh repeatedly pressed Tenny to explain
how the rules did anything to help consumers.  He suggested the legal precedent says governments cannot force companies what to say, except under three circumstances: to protect health, safety, and consumers from being deceived.
Kavanaugh suggested the labeling rules did not meet that standard — but served other purposes.  “This is a bias against Mexican and Canadian ranchers,” the judge said.  “It’s a traditional protectionist impulse. What’s the difference?”
Later in the hearing, he added:  “The implicit message is to buy American.”

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A Canada-U.S. meat dispute takes a free-speech twist

By The Canadian Press on May 19, 2014.

Cowboys move cattle northwest of Calgary, May 28, 2013. Canadian cattle producers were in a U.S. court Monday, arguing for their right to free speech under the First Amendment. THE CANADIAN PRESS/Jeff McIntoshCowboys move cattle northwest of Calgary, May 28, 2013. Canadian cattle producers were in a U.S. court Monday, arguing for their right to free speech under the First Amendment. THE CANADIAN PRESS/Jeff McIntosh

WASHINGTON – Canadian livestock producers are in a U.S. court, arguing for their free-speech rights under the First Amendment.

The case centres on whether the country-of-origin labelling rules that have harmed the meat industry are a violation of one of the most sacrosanct provisions of the American Constitution.

The Canadian companies and their U.S. and Mexican allies are arguing that they’re being compelled, by the American government, to divulge information for illegitimate reasons.

They say that violates their free-speech rights.

Numerous parties have standing in the case, which is being argued on the anti-labelling side by a lawyer for the American Meat Institute. Opposing arguments are being made by U.S. government lawyers.

Attorneys for both sides are being grilled today by 11 judges at the U.S. Court of Appeals in Washington.

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ATCO boss takes aim at regulators, says Albertans power bills are too high

By Amanda Stephenson, Calgary Herald May 14, 2014

Albertans pay more than they should for electricity because the province’s regulatory system is inefficient and cumbersome, said ATCO boss Nancy Southern on Wednesday.

The president and CEO of the Calgary-based company accused regulatory bodies of creating “needless challenges” for industry that end up being reflected on consumers’ power bills. And she told reporters following ATCO’s annual general meeting that she worries about the future, saying federal regulations requiring the phase-out of cheap, coal-fired generation could drive up electricity prices even further.

“There is no ceiling,” Southern said.

Last week, a report by independent think-tank the Fraser Institute ranked Alberta’s electricity prices as among the highest in North America. The report’s authors said the province can’t compete with other jurisdictions that have access to large amounts of hydroelectricity, but also acknowledged that bills here are high because Alberta has a market-based system that means consumers pay the full cost of electricity up front rather than through government subsidies or tax dollars.

But Southern said the report is indicative of a regulatory regime that means it can take years for companies to get a power plant or transmission project approved. Figures provided by ATCO say regulatory costs in Alberta have climbed from $13.5 million in 1998 to $146 million in 2014. (Electricity consumption and generating capacity also increased during that time.)

“It’s created a huge cost burden for all Albertans and what’s the return?” she said. “We’re slowing down our industry because we go through these lengthy processes for permitting and licensing.”

ATCO’s chief operating officer for energy and utilities, Siegfried Kiefer, said the province needs to overhaul electricity regulation the way it did with oil and gas last year when it launched the new Alberta Energy Regulator.

He said there is currently significant overlap between separate bodies like the Alberta Utilities Commission, the Market Surveillance Administration, the Utilities Consumer Advocate, and the Transmission Facilities Cost Monitoring Committee.

“When you allow endless questions, debates on costs that haven’t changed in years and take up hours and hours of time in a hearing room with lawyers, then that (regulatory) process needs to be reviewed,” Kiefer said.

The Herald attempted to contact the Alberta Utilities Commission on Wednesday but was unsuccessful.

Southern also warned that consumers’ electricity bills could spike higher due to federal greenhouse gas regulations that will require up to a dozen of Alberta’s coal-fired power plants — two of which are operated by ATCO — to be shut down out over the next 15 to 20 years. ATCO is revisiting the development of hydro facilities in northern Alberta on the Slave and Athabasca Rivers as a source of long-term reliable green power to replace coal, but Southern said projects like that are expensive and in the meantime electricity demand continues to grow.

“I understand why we’re shutting them (the coal plants) down and I agree we have to be careful of our environment,” she said. “But I also get very concerned that we have a wonderful asset base in Alberta that is going to be thrown out with the bathwater . . . And all of us today are not going to be able to enjoy that low-cost benefit that we have today and have paid for.”

Also on Wednesday, ATCO announced the launch of a new division that will sell power directly to commercial and industrial customers in Alberta.

The company will offer customers such as hospitals, shopping malls, light industry, and large industrial operations electricity solutions for their business.

[email protected]

 

Farmland value is on the rise

By Student on May 15, 2014.

Shelby Craig

FOR THE HERALD

A Farm Credit Canada (FCC) report recently released shows there has been a rise in the value of Alberta farmland.

Values continued to rise nationally in 2013, and the average in Alberta increased 12.9 per cent since then and is part of a continued trend which began in 2011. Supporting the increase is the growing food demand and low interest rates.

Across Canada, average values of farmland have increased by 22.1 per cent in 2013, in which the majority began in the first half of the year.

This annual change represents the largest increase since FCC began reporting in 1985, according to the FCC report.

Kenneth Gurney, senior appraiser at FCC Lethbridge, said this kind of rise doesn’t just affect small operations.

“Increases in land prices impacts all types of operations, both large and small. Those operations that are not able to purchase land at the higher values still have the ability to rent land.”

However, Gurney added the rise could be beneficial to some smaller operations as well.

“Some land owners may want to hold onto the land and not actually farm the land. This often happens when farmers retire but are not wanting to sell the land yet. This creates opportunities for other farmers to rent the land. Renting land can be a good fit for some operations.”

Rental rates usually take a little time to adjust downward following lower grain and oilseed prices, according to the report, and multi-year leases are gaining in popularity.

J.P. Gervais, FCC chief agricultural economist, said although rentals are gaining in popularity, they can expect to change over time.

“For the next several years, we expect the demand for farmland to slow down.”

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Wind power is not reliable

By Letter to the Editor on May 14, 2014.

Re: “Wind energy has proven to be reliable and cost competitive” (May 6 Letter to the editor).

It is a serious abuse of the English language to use the words “reliable” and “cost competitive” to describe wind energy. Webster defines “reliable” as “trustworthy; there when needed; dependable” – all the things that wind is NOT.

The “current supply and demand report” for Alberta ( May 6, 1 p.m.) www.aeso.ca, showed total net generation as 8,605 MW with wind supplying 415 MW (4.8 per cent of what Albertans were using).

To examine what wind had being doing in the 48 hours before, I went to www.cns-snc.ca for easy-to-read graphs based upon Alberta (AESO) data. Twenty-seven hours ago (10 a.m. May 5) wind was producing ZERO for three hours in a row; six hours ago it was providing 879 MW and now, 415 MW as I write. This performance does not fit any definition of “reliable” or “there when needed.”

“Cost competitive?” Indeed the Alberta Electric System Operator shows “wind energy is consistently the lowest cost” but why?

The Alberta market is based upon supply and demand. Prices change by the hour. Big demand means higher price. Small demand – lower price. Wind blows when it will, often during the night when demand is low. Occasionally wind might blow during a period of high demand and then it gets the higher price but on average, it typically blows during off-peak hours when demand and prices are low. It is “consistently the lowest cost” because it often comes on the market when Albertans are asleep. In Ontario unuseable wind is sold into the U.S. at a loss.

In Alberta legislation requires that wind power MUST be bought. If wind is available coal and gas MUST make room on the grid while standing by to help if wind dies. Wind gets preferential treatment at every level but still can’t capitalize on it because it frequently generates when few need to buy.

Hence the CanWEA push for bigger subsidies, higher carbon taxes, longer term contracts and more preferential legislation. Wind investors are finding “life challenging.” They need higher prices.

As I close this letter wind is now contributing 354 MW to the grid. Down 61 MW. Please don’t tell me anymore how “reliable” wind is. The correct words are “unreliable,” “erratic,” “unpredictable” and a bad deal for Albertans.

Shaun Ward

Lethbridge

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Keep AltaLink Canadian, Atco chief says

By Gary Lamphier, Edmonton JournalMay 8, 2014
EDMONTON – ATCO boss Nancy Southern says AltaLink is “critical infrastructure” that should remain Canadian-owned.

Southern was reacting to a recent announcement by Montreal-based engineering giant SNC-Lavalin that it sold its Alberta electricity transmission unit to Warren Buffett’s Berkshire Hathaway Energy for $3.2 billion.

Southern wouldn’t say whether ATCO or its affiliates had pursued a deal for AltaLink, but she told the Journal the province must recognize the “strategic and critical” role such key infrastructure plays in driving economic growth.

“I believe there should be greater strategic thinking from our government and from the (energy) regulators about what is critical infrastructure, and what is important in driving economic growth in our province. This has very large implications for Canada,” she said.

“I’m not so much worried about security of supply because we’ll have an American company in here. But the fact is that people in Alberta and people in Canada are driven by different motives and our government is driven by different motives than perhaps a foreign entity would be,” she added.

“To have the ability to respond quickly to growth and development by getting power lines in quickly and reducing costs for your industries and the population of your province and country are all important incentive drivers for economic growth.”

Asked whether she considers it unfair that the U.S. government continues to delay approval of TransCanada’s proposed Keystone XL oil pipeline — regarded by the Canadian government as vital to the national interest — while the AltaLink deal unfolded with little fuss, Southern demurred.

“We’re talking way beyond my pay grade in terms of sovereign issues between Canada the United States. I would say, though, that a lot more thought should be going into whether you want to have this sold off.”

Southern, who was in Edmonton Wednesday to address the annual general meeting of ATCO subsidiary Canadian Utilities, also blasted Alberta’s energy regulatory system as overly cumbersome and costly.

“It’s out of control. We have an increasing number of agencies and committees that are providing oversight and prudency tests on behalf of consumers, and a burgeoning industry for interveners,” she said.

For a typical major capital project that takes two years to bring onstream, ATCO spends all but 16 weeks of the entire period dealing with regulators, with the rest on construction.

“We just finished a deferred capital hearing, for example. What that means is that for all the $500 million of transmission lines we put into service this year, we have to (subsequently) get approval to get those costs recovered in the rate base,” she said.

“Now, those lines are commissioned already so they’re in service. And for that $500 million investment we had to submit 55,000 pages of reports to regulators. And on top of that they can keep asking further questions.”

Southern said the onerous regulatory burden, which has pushed up related costs to taxpayers more than 10-fold since 1998 to $137 million last year, is a key reason why a recent Fraser Institute study of 119 cities found that Calgary and Edmonton have among the highest electricity costs in North America.

“The Fraser Institute and all these other pundits are talking about high electricity costs and they’re right. We have high electricity costs, and we shouldn’t have such extremely high electricity costs,” she said.

“And part of it is that now we’re in this position where we have to prepare 55,000 pages of documentation to justify these lines going into service. And that’s on top of spending two years in permitting and planning and dealing with interveners to actually get the construction approved.”

[email protected]

© Copyright (c) The Edmonton Journal

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Law gives land owners more rights than they might realize

By Letter to the Editor on May 7, 2014.

In reply to Alvin Shier’s letter of March 27, “Owner of mineral rights controls the land”: Many individual Canadians and foreigners own mineral rights in Alberta and cannot trespass on private land. What gives conglomerates that right?

The constitution belongs to the people, as does the jurisdiction of powers of Section 91 and 92 of the British North America Act.

Supreme Court Chief Justice Rinfret, in a ruling on a 1950 case, Attorney General of Nova Scotia v. Attorney General of Canada, said (page 33): “The Parliament of Canada and the legislatures of the several provinces are sovereign within their sphere defined by the British North America Act, but none of them has the unlimited capacity of an individual. They can exercise only the legislative powers respectively given to them by Sections 91 and 92 of the Act, and these powers must be found in either of these sections.

“The Constitution of Canada does not belong either to Parliament, or the legislatures; it belongs to the country and it is there that the citizens of the country will find the protection of the rights to which they are entitled.”

Supreme Court Judge J. Kerwin, on page 36 of the same ruling, said: “But the federal Parliament cannot amend the British North America Act, nor give, either expressly or implicitly to the local legislatures, a power which the Imperial Act does not give them. This is clear, and has always been held in this court to be the law.”

Under the above, Prime Minister Trudeau did not have the right, power or jurisdiction to amend the BNA in 1982.

There is a law protecting us from the pollution of air, water and land that also applies to polluting and fracturing the subterranean strata. Pumping in millions of gallons of poisonous liquids in same can pollute the aquifers. If the governments don’t have the guts or fortitude to stop this, the people do, by right.

I know my rights and one of them is the Trespass Act and provincial governments cannot change it. I will challenge any company or anyone else to trespass without legal authority onto my property. Land or property owners also control the atmosphere above the said land.

As a property owner, I can drill a well, dig a dugout, put in a fence line, trench, dig a basement, etc., so don’t tell me I own just the top six inches of soil.

Dean Oseen

Lethbridge

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