Enbridge accused at Northern Gateway hearing of blocking environmental research

By Bob Weber, The Canadian Press September 20, 2012 5:56 AM

Enbridge hasn’t done enough research to properly estimate the environmental cost of its proposed $6-billion Northern Gateway pipeline and has even worked to block studies from being done, hearings into the proposed project heard Wednesday.

“They haven’t done the studies that are necessary to truly understand the impacts of these projects on coastal First Nations and the ecosystems they rely upon, not only for salmon, but for all the resources along the whole of their territories,” said Brenda Gartner, who represents aboriginal groups along the British Columbia coast.

“When work is being done, they lobby against that work proceeding,” she said outside the hearing.

Gartner pointed to testimony from environmental economists hired by Calgary-based Enbridge, who acknowledged they were unable to directly estimate environmental costs outside the immediate pipeline corridor.

They also said they hadn’t specifically determined if there would be impacts on salmon habitat.

“I’m relying on Enbridge’s information and I do my analysis based on that,” said Mark Anielski, one of the consultants.

Enbridge official John Car-ruthers said the company had filed 20,000 pages of information.

“I believe that there is sufficient amount of information for the panel to make a decision,” he said.

Gartner pointed to En-bridge’s involvement in the cancelling of an agreement between the federal and provincial governments, First Nations and conservationists that was to balance environmental concerns with economic development along the B.C. coast.

“Why was it that Enbridge lobbied the federal government to cancel the (Pacific North Coast Integrated Management Area)?” she asked.

Carruthers denied Enbridge wanted the effort blocked. However, he acknowledged the company lobbied the federal government.

“We had concerns about where some of the money was coming from.”

Ottawa ended the agreement it had with the other parties and returned an $8-million grant from Tides Canada, a non-profit group that would have funded the effort.

The federal government is now handling the coastal management effort on its own.

© Copyright (c) The Calgary Herald

Two men unhurt after helicopter hits power line near Cowley, ignites field fire

By Bryce Forbes, Calgary Herald September 20, 2012 7:36 AM

Both the pilot and passenger walked away with no injuries after their helicopter flew into a power line near the Cowley Glider landing strip in southern Alberta and crashed on Sept. 19, 2012. The downed power lines caused a fire in the field.

Photograph by: Courtesy , RCMP

Two men walked away injury-free after a fiery helicopter crash near Cowley, Alta.

RCMP say two Calgary friends took off from a field and made it about 500 metres before they struck a power line and crashed back into a pasture west of Lethbridge.

The downed power lines started a fire in the field.

The Pincher Creek fire department extinguished the fire quickly with the help of local residents and farmers.

The 60-year-old pilot was experienced, and was flying back to Calgary.

RCMP and Transport Canada continue to investigate.

© Copyright (c) The Calgary Herald

Ministers won’t comment on questions raised at Gateway hearings – Critics say gov’t trying to minimize debate

By Karen Kleiss, Edmonton Journal September 19, 2012

EDMONTON – Alberta’s provincial government won’t comment on questions raised at the Northern Gateway pipeline hearings, such as whether foreign ownership is acceptable to Albertans or whether Enbridge is vastly underestimating the projected cost of cleaning up spills.A lawyer for a B.C. First Nation suggested at the National Energy Board’s regulatory hearing that the economic benefit of the pipeline has been significantly overstated.

A Prince George engineer told the hearings that carbon emissions could cost $742 million a year, but the province will not say how or if those new developments impact the government’s view of the project.

“We are actually not commenting on the hearings at this point because Alberta is likely to appear before the panel next week … to discuss our economic submission,” wrote Mike Deising, press secretary for Energy Minister Ken Hughes. “Reason for not commenting is to respect the process.”

Environment Minister Diana McQueen “doesn’t want to offer comment on these issues yet,” her press secretary wrote in an email.

“Alberta is appearing before the panel next week to discuss its position at the Gateway hearings, and the minister feels we need to respect that process and put our thoughts before the panel when the time comes,” Wayne Wood wrote.

The extent of Chinese ownership of the project has not been made public.

Enbridge VP Paul Fisher told the panel he has “absolutely not” considered the possibility that foreign interests might seek commercial control of the line. Fisher told the panel the percentage of foreign ownership is more appropriately a policy consideration for the federal or provincial governments.

Deising did not say Wednesday whether Hughes will engage in such policy discussions, or whether the province has a position on the issue.

“The government is simply refusing to talk about hugely important questions so they get a minimum amount of debate and the public remains blissfully unaware of many of the serious problems that do exist,” NDP Leader Brian Mason said.

“It may not be within the jurisdiction of the board, but it is certainly in the jurisdiction of the government. It is worthwhile to have those conversations now.”

Mason also commented on suggestions that Enbridge is setting up a separate company to build the pipeline, a corporate structure that could protect the parent company from liability if the pipeline leaks.

“This manoeuver to avoid liability – which could be in the billions – is completely unacceptable,” Mason said. “If (the province) can’t prevent that kind of corporate manipulation, they should be demanding a massive bond, a billion to start.”

Lawyers at the hearing also have also suggested that Enbridge is significantly underestimating cleanup costs, pegging them at $14,000 per barrel. By that estimate, the company’s massive 2010 spill in Michigan’s Kalamazoo River would have cost $281 million to clean up, far less than the $760 million it actually cost.

The company says cleanup costs are higher in the U.S., but Wood did not say whether those numbers affect the province’s view of the project. He also did not comment on suggestions that carbon emissions will cost $742 million each year.

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© Copyright (c) The Edmonton Journal

Original source article: Ministers won’t comment on questions raised at Gateway hearings

Alberta’s largest wind project ready before winter

By Dave Cooper, Edmonton Journal September 18, 2012

EDMONTON – As Alberta’s largest wind farm nears completion, Edmonton-based Capital Power Corp. is opening the site of the $357-million project to the public.“On Wednesday we’ll have a blade signing in the village of Halkirk, where the public can sign a 44-metre blade that will be used on one of the 83 turbines, as well as tours of the site,” said spokesman Michael Sheehan. Halkirk is about 120 kilometres east of Red Deer.

Rising 124 metres from ground to blade tip — taller than the Epcor Tower in Edmonton — the turbines look a bit out of place on the gently rolling prairie of Paintearth County.

Capital Power says all the foundations for the turbine towers have been completed. As well, reclamation of the wide access roads has begun. Currently needed to bring in heavy equipment, the roads will eventually be less than five-metres wide, winding through the 10,000 hectares of private land within a 60 square kilometre area straddling Highway 12 between Halkirk and Castor.

So far, 34 turbines have been assembled completely and it is expected that all 83 will be up by the end of October as the 250 workers aim to have most work complete before winter arrives.

Work on the project’s power substation is also on target and is expected to be energized by Oct. 5 when power will be supplied to the site. After that, groups of turbines will be able to come online and feed power into the provincial grid.

The arrival of Capital Power offers an economic boost in the form of new tax revenue for the county and the village of Halkirk, as well as compensation and annual lease revenue to the 49 landowners. The company’s 14 permanent staff will also invigorate a village that claims a population of 121.

“There has been a lot of hustle and bustle throughout the area because of this project, and it means a lot to the local economy,” Tarolyn Peach, chief administration officer for Paintearth, said in a recent interview.

Capital Power purchased the project design and all approvals from Greengate Power Corp. in 2011. Alberta’s energy market does not pay extra for wind or solar power, so for Capital the deal-maker was a contract with a major California utility for the purchase of green-energy credits.

While power from the Halkirk project will go directly into the Alberta grid, Capital expects that half of the project’s revenue will come from these green credits, paid for by California consumers.

With 150 MW (megawatts) of capacity, Halkirk will provide enough power to supply 50,000 homes while the wind blows — which should be at least 30 per cent of the time.

While Alberta is the only province with a fully deregulated electricity market — which means wind power does not earn a higher price than less expensive coal-fired generation — it has Canada’s third largest system, with 891 MW currently in place, all in windy regions south of Calgary.

Ontario, by comparison, has 2,000 MW in operation with another 3,600 MW being built under its feed-in-tariff program, including projects by Capital Power.

The Edmonton firm is also building a wind power project in B.C., where BC Hydro pays a premium for renewable energy.

© Copyright (c) The Edmonton Journal

Enbridge overstates economic benefits of Northern Gateway pipeline: Haisla First Nation lawyer

By Sheila Pratt, Edmonton Journal September 18, 2012

EDMONTON – Enbridge is overstating the economic benefits — and underestimating costs — associated with the proposed Northern Gateway pipeline project to take Alberta bitumen to the west coast for shipment to Asia, said a lawyer for British Columbia’s Haisla First Nation.

Enbridge gives a much rosier picture of growth in oil production in Canada in its pitch for the pipeline than it gave to its investors at a shareholder meeting last fall, Hana Boye told the Joint Review Panel conducting hearings in Edmonton Tuesday.

The higher growth forecast, in public documents filed with the National Energy Board, results in a higher calculation of benefits to the oil industry from the proposed $6 billion pipeline, said Boye.

Boye said the lower growth forecast given to investors at a meeting in Toronto means as much as 500,000 fewer barrels per day by 2020 and therefore much less benefit to the oil industry from the pipeline that aims to carry 525,000 barrels a day of bitumen from the Edmonton area to Kitimat, B.C.

If Enbridge had used the internal, lower forecast it gave to investors, the much touted “price lift” for bitumen that gives oil companies their benefit would not be as robust, said Boye. Enbridge argues the proposed pipeline will secure higher prices for bitumen by opening up new markets in Asia.

Enbridge officials dismissed the difference in the two forecasts as not substantial. The higher forecast comes from the Canadian Association of Petroleum Producers.

The numbers will vary depending on when the forecast is done but the difference is too small to have an impact on whether the project is economically viable, said John Carruthers, top manager of the separate company building the Northern Gateway pipeline.

“There could be differences as forecasts change over time, but they all show substantial growth in oil supply from the western Canadian basin,” said Carruthers.

At the October 2011 investors meeting, an Enbridge executive described that forecast as “bullish” and told investors the company’s growth forecast is lower at 4.4 per cent growth in oil production over 20 years.

Boye also said the company has ignored another major cost that comes with the project — the cost of importing large amounts of condensate needed to dilute the thick, sticky bitumen so it will flow in the pipeline.

Until 2008, Canada produced enough condensate to meet demand in this country, said Boye. But it now imports 60,000 barrels a day and that will increase significantly to support the increase in bitumen exports in the Northern Gateway pipeline.

Each barrel of bitumen shipped in the pipeline must be diluted by about 30 per cent. Some producers may also use light crude oil to blend with bitumen, says an Enbridge report.

In its cost-benefit analysis, Enbridge did not calculate the cost of importing condensate because that is a cost borne by companies that ship the bitumen, said Paul Fisher, Enbridge executive.

“We anticipate a need to import condensate but that decision will be made by shippers,” said Fisher.

Enbridge also confirmed it did not do a separate study on the impact of Canada’s growing dependence on condensate imports from the U.S.

Meanwhile, Enbridge told the panel that the company has reversed a pipeline that in the past carried crude oil into the U.S. The Southern Light pipeline will now ship 180,000 barrels a day of condensate to Canada.

Enbridge also confirmed it is applying for two separate permits at the hearing, the export pipeline to ship bitumen and the import pipeline to import condensate into Canada. Each pipeline could go ahead separately depending on what the review panel board rules.

The $6 billion price tag includes construction and operation of both pipelines.

The hearings continue until Sept 28.

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© Copyright (c) The Edmonton Journal

No need for Canadian Energy Strategy, federal minister says

By Karen Kleiss, Edmonton Journal September 11, 2012

EDMONTON – The Redford government will continue to press for a Canadian Energy Strategy despite clear signals Tuesday the federal government doesn’t support the plan.

Federal Natural Resources Minister Joe Oliver said Tuesday that Premier Alison Redford’s national strategy is redundant and unnecessary, tacitly aligning the federal government with Alberta’s opposition Wildrose party.

“I’ve asked (Redford) about what she had in mind and I didn’t hear anything that suggested something that we weren’t actually covering,” Oliver said at a news conference Tuesday after a two-day meeting with Canada’s provincial energy ministers in Charlottetown, P.E.I.

Oliver acknowledged the need for federal and provincial governments to work together to develop Canada’s energy resources but said Stephen Harper’s Conservative government won’t back a formal strategy.

“If you want to put a bow on it and call it a Canadian Energy Strategy, go ahead. But we’re not applying that labelling to it,” Oliver said.

The idea for a Canadian Energy Strategy was a cornerstone of Redford’s election campaign, and since taking office in April she has been a relentless advocate for the idea.

Her goal in part is to get all the provinces working together to develop Canada’s energy resources. Technically, this means co-ordinated environmental standards, consistent regulations and construction of new pipelines and other needed infrastructure. Practically, Alberta could benefit from increased co-operation and support from other provinces as it develops its oilsands resources.

Redford is currently on a trade mission in China and a spokesperson for her office declined to comment. Energy Minister Ken Hughes was unavailable for comment Tuesday, but a spokesman for his office said the provincial government won’t abandon efforts to secure a national consensus on energy development.

“Our position on the importance of a Canadian Energy Strategy has not changed,” spokesman Mike Deising said in an email. He did not address Oliver’s comments or the impact they might have on Redford’s proposed strategy.

Wildrose energy critic Jason Hale said he is pleased the federal government agrees with his party’s position.

“We are of the same mindset,” Hale said. “A misguided strategy like this leaves the door wide open to provinces that oppose Alberta’s energy sector to have more of a say over our resources.

“Ultimately, Alberta needs to defend and promote our resources the way we see fit.”

Redford has had some success securing support for the strategy.

At Council of the Federation meetings in Halifax earlier this year premiers from across the country expressed support for the idea. After that meeting, Redford started working with premiers from two other provinces to draft a Canadian Energy Strategy “that recognizes regional priorities and areas of expertise.”

That draft will be presented to premiers and territorial leaders at the next Council of the Federations meeting in the spring of 2013.

Oliver said the meetings in Charlottetown included discussions on improving infrastructure, such as the possibility of building pipelines to carry oil and natural gas from Western Canada to markets in Atlantic Canada.

He said the ministers also talked about improving electricity reliability through data sharing and advancing energy efficiency initiatives.

Two months ago, B.C. Premier Christy Clark withdrew her support for the strategy and for the controversial Northern Gateway pipeline, which would carry Alberta crude to the West Coast.

Clark said at the time that B.C. deserves a “fair share” of Alberta’s royalties for taking on the environmental risks associated with the pipeline, a premise Redford rejected.

With files from The Canadian Press

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© Copyright (c) The Edmonton Journal

Documents reveal oilsands development about to exceed Alberta’s new pollution limits

By The Canadian Press September 11, 2012

EDMONTON – Less than two weeks after Alberta enacted legally enforceable pollution limits for its oilsands region, industry figures already suggest they will soon be breached by emissions of two major gases causing acid rain.

Regulatory documents for Shell’s proposed Jackpine mine expansion say annual levels of sulphur dioxide and nitrogen dioxide are likely to push past limits contained in the province’s Lower Athabasca Regional Plan if all currently planned developments proceed.

The documents, filed late last week, also provide what may be the clearest picture yet of what impact two decades of development have had on northeastern Alberta.

“It validates the concern that many stakeholders have raised about the cumulative pace and scale of development,” said Simon Dyer of the Pembina Institute. “It’s the first real test of the (plan).”

Shell filed the papers after the Canadian Environmental Assessment Agency asked the company to give a clearer account of how the environment of the oilsands region has changed since development began and what part the Jackpine expansion would play. Written by environmental consultants Golder and Associates, the document estimates how levels of the two gases have grown over the years.

Average annual levels of sulphur dioxide are estimated at about 20 times what they would naturally be over a large area from Fort MacMurray to about 100 kilometres north. Nitrogen dioxide is estimated to be at least 10 times pre-development levels — although the report acknowledges hard data from that time is spotty.

And if all the projects that have been announced publicly or are in the regulatory process go ahead, the pollutants are projected to exceed what are supposed to be absolute caps.

Sulphur dioxide will reach average annual concentrations of 21.1 micrograms per cubic metre of air, just over the plan’s limit of 20 micrograms. Nitrogen dioxide will reach 59.5 micrograms, well over the limit of 45.

Randall Barrett, director of Alberta Environment’s northern region, said the projections are derived from models deliberately designed to overestimate emissions as a way to ensure caution.

“It shows us we have to be very diligent in how we are setting pollution controls for any plants in this area, because the computer models are predicting that we are getting close or over some of the air quality (levels).”

Regulators use the models to determine what sort of emission controls to impose on applicants, said Barrett.

“What would likely happen is they would go to the most stringent type of air quality pollution control, because the models are predicting you could be over the limit.”

Barrett said actual air monitoring data continues to show both sulphur and nitrogen dioxides remain well under their caps. If those gases increase as more facilities come on stream, the plan includes “trigger” levels that would require industry to improve its pollution controls.

“This (modelling) is enforcing how important that monitoring is.”

The government is obliged to act if pollutants exceed either the triggers or the absolute caps — an obligation that Environment Minister Diana McQueen has underlined.

“It is a legally binding commitment that holds government accountable to Albertans,” she said when announcing the plan Aug. 22.

Spokesmen for Shell weren’t available for comment.

In the document, Shell points out the sulphur dioxide levels are concentrated in areas closest to its mines, regions that should be treated differently. Levels in “non-developed areas” remain below the government’s cap, it says.

It also says elevated nitrogen dioxide levels are a result of “over-predicted” emissions from giant trucks used in the mines and suggests those emissions are being reduced as the vehicles are upgraded.

Dyer says the government’s plan makes no provision for treating some areas differently than others. He also says contaminants in one area do ultimately spread throughout the region.

An earlier Shell document acknowledges 23 small, mostly unnamed lakes, have already passed their critical load for acid.

The document also lists cumulative effects that aren’t yet governed by the regional plan, such as wildlife impacts.

Out of 22 indicator species — including birds, mammals and amphibians — 16 will suffer high or moderate negative consequences even under the current amount of development, it says. Some areas will suffer “moderate” biodiversity loss, even after reclamation efforts.

Shell argues species will rebound as the area is returned to a more natural state and adds there should be enough undisturbed regions to maintain a healthy ecosystem.

Worst of the wildfire is over?

Monday, 10 September 2012 17:21 Garrett Simmons

Nick Kuhl & Katie May
LETHBRIDGE HERALD
A wind-wrecked power line is believed to be the culprit of a raging grass fire that forced evacuation of several southern Alberta communities and burned through at least 4,800 hectares around Lethbridge Monday.
Gusting winds snapped a power line in the northwest corner of the Blood Reserve near Old Agency early Monday afternoon —  according to a preliminary Blood Tribe Police investigation, said police chief Lee Boyd — sparking a wildfire that jumped Oldman River and spread to areas of west Lethbridge, nearing the town of Coalhurst 10 kilometres away.
Lethbridge fire chief Brian Cornforth updated the situation at Fire Headquarters at 9 p.m. last night and said the fire is well contained.
“We have the fire in a condition of what we call ‘being held,’ meaning the current resources we have on that fire will work on that fire tonight,” he said.
“We don’t believe it’s going to get any larger unless we have erratic fire behaviour or wind change. We have a significant amount of resources on that fire. Crews have done a phenomenal job.”
At 10:30 p.m. the City of Lethbridge adjusted the local state of emergency, originally issued at 3:44 p.m., to apply only to the previously evacuated areas — Westside Trailer Court, Bridgeview Campground, and areas east of 30th Street West and north of Walsh Drive West — which will remain evacuated and under a state of local emergency.
This adjusted state of emergency will continue to allow local fire crews to monitor hot spots, said Lethbridge Mayor Rajko Dodic.
“It’s now being contained as much as possible,” he said late last night. “We’re now cautiously optimistic and hopefully the news in the next number of hours will get better as we go along.”
More than 100 emergency responders from Lethbridge, Coalhurst, Picture Butte, Coaldale, Nobleford and Taber helped battle the blaze.
But with separate fires across Western Canada and near the U.S. border stretching firefighting resources thin, the County of Lethbridge called in water bomber planes from Pincher Creek, expecting five but receiving only two because of other fires raging in B.C. and in the U.S.
“They’ve dropped a couple of drops already and they’re on their way back to Pincher Creek to recharge and they’re coming back,” said County Reeve Lorne Hickey around 8 p.m. Monday. “They’re trying to get the northerly edge of the fire under control so it doesn’t move north toward Coalhurst.”
The water bombers were expected to return from their 40-minute round trip to make their final drop of the night as the sun set over smoky skies in southern Alberta, leaving officials to pray for gentler winds.
“I’m sure they’re getting a little weary about now, but they’re doing a remarkable job,” Hickey said.
“The foam retardant from the water bombers has helped a great deal,” he added. “But we’re just hoping the wind is going to die down a little bit and they can try to get things under control a little better.”
Alberta’s Deputy Premier Thomas Lukaszuk spoke to media late Monday night at the Enmax Centre after a visit to the community centre in Picture Butte, which took in at least 150 displaced Coalhurst residents.
“Families are obviously nervous and distraught because they left properties behind and all of their belongings,” he said.
“But the most important thing is – and that’s always our priority – is saving lives.”
Authorities couldn’t confirm any structure loss as of late Monday, but Sustainable Resources Alberta and local investigators will be on scene this morning.
The only injury reported was that of one individual being transported by ambulance from Coalhurst to Chinook Regional Hospital.
“Lives are very precious and we want to make sure that we’re able to take care of the situation,” Hickey said. “That’s why we had an evacuation. When it came close to the river it was definitely time to move on.”
Mountain Meadows and Sunset Acres residents, and those in Township 8-22, were the first with an evacuation notice, followed by a full mandatory evacuation to the town of Coalhurst.
Monday’s fire also reignited flashbacks of a massive grass fire that burned through the region last November, spurred on in the midst of a severe windstorm, and scorched thousands of acres of crops and river bottom land as one of the biggest fires the region had ever seen.
That fire started at a sweatlodge ceremony on the west end of the Blood Reserve around 3:30 p.m. Nov. 27, 2011, spreading quickly in extreme wind gusts reaching more than 100 kilometres per hour, jumping the Old Man River and burning through west Lethbridge right up to city limits at 30 Street West, north of 24 Avenue West.
Two Blood Reserve homes were destroyed in the blaze and no injuries were reported. No charges were laid in connection to that fire.
Coalhurst resident George Bradbury remembers that day.
This time he was more prepared, however, as he has all of his house and car insurance papers, as well as his passport, all in a tin box.
He took that as well as the first family photo album he could find before making his way to the Picture Butte community centre as part of the forced evacuation.
“We were outside working and a neighbour came and told us so we went and grabbed some things before the RCMP came down and told us that we had to leave,” said Bradbury, who has lived in Coalhurst for the past six years.
“The first thought that went through my mind was ‘not again’. And it was coming from the same area.”
Jonathan Moedt just moved to Coalhurst in March. He was on his way home from work in west Lethbridge right after the evacuation notice was issued.
“I was met at the entrance of Coalhurst with fire trucks and police there,” Moedt said.
“They told me I wasn’t allowed into Coalhurst because we were being evacuated.
But Moedt was allowed to go in to get his dog. While he was home he also quickly grabbed his laptop, a change of clothes and personal papers.
“I was told I had between two and five minutes to get back out of town and go to Picture Butte. One of the first things through my head was thinking about Slave Lake two years ago and what could possibly happen.”
Tracie Moore at Canadian Red Cross said initially there were 150 evacuees in Picture Butte, 25 at the Enmax Centre and 15 at Fritz Sick.
Heavy traffic and multiple accidents were reported along Highway 25 between Lethbridge and Picture Butte during the late afternoon and pets were being taken in at the Enmax Centre, but Lethbridge Animal Services couldn’t confirm an official number as of press time.
As of just after 11 p.m. last night there were reports that some residents were being allowed back into Coalhurst.

Unprecedented demand and record prices for Canadian farmland – Soaring commodity values and limited supply push prices upward

By Mario Toneguzzi, Calgary Herald September 10, 2012 7:00 AM

CALGARY — Soaring commodity values and limited supply continue to push Canadian farmland values to new heights, with price per acre now commanding top dollar in most markets across the country, says RE/MAX in a report released Monday.

The RE/MAX Market Trends Report, Farm Edition 2012, highlighting trends and developments in 16 markets throughout Canada, found that prices have increased almost across the board this year with only the Annapolis Valley, parts of Windsor/Essex, and the Fraser Valley reporting levels on par with 2011.

The report said tight inventory has been an issue in all markets, restricting year-over-year sales activity to a large extent. While low interest rates, high commodity prices, and nutrient/supply management requirements have been the primary factors fuelling the trend toward expansion, increased advancement in farm equipment has also been behind the push for additional acreage, it said.

“Farmers have yet to be deterred from expanding their operations, despite rising values and tight supply,” said Elton Ash, regional executive vice-president of RE/MAX of Western Canada, in a statement. “Pent-up demand has been building, with some farmers making their move after years of sitting on the fence, waiting for prices to correct. Most now believe that there is room for further growth, given the upward momentum of commodity values.”

The report said demand, sales and the value of farmland have climbed in central Alberta again this year. Prices have increased 20 to 25 per cent over year-ago levels. The price per acre of dry land now ranges from $2,000 to $4,500, depending on location and land quality. The average is approximately $3,300 an acre.

“Offering the best and most productive farmland in the region, the Olds area remains among the most sought-after, with price per acre topping $4,500,” said RE/MAX. “Proximity to Highway 2 can also be a factor, with parcels close to this transportation corridor now commanding upwards of $6,000 per acre.

“This pales in comparison to the $20,000 an acre that some land fetched just a few years earlier — when oil and gas were booming and development closer to the cities was on a tear.”

The report said expansion by large operators continues to be the main driver of farmland sales, whether it be cash crop or supply-managed livestock operations. However, inventory remains scant.

The report also said demand remains exceptionally strong for farmland throughout southern Alberta, with buyers eagerly waiting for the right property to come on-stream.

“Inventory has been a considerable challenge, as a shortage of listings continues to characterize the market,” said RE/MAX. “As a result, sales are off last year’s pace and are expected to remain below year-ago levels through to year-end. Cultivated dry land remains in greatest demand, with prices at record levels, as existing farmers continue to eye expansion.”

Price per acre of dry land now sits at $800 on the low end, up to $2,500 to $3,000, although $1,500 to $2,000 is most typical. Irrigation land, with pivot — if it can be had — now generally runs from $5,500 to $6,500 an acre and generally sells in quarter sections of 160 acres, added RE/MAX.

Todd Hirsch, senior economist with ATB Financial, said Statistics Canada compiles an index value of prices of various agricultural products, and breaks it down by what farmers in each province are generally receiving.In Alberta in June 2012, those index values were fairly good, and in some cases they were hitting record highs, he said. The index value for grains, which includes wheat and barley, two of Alberta’s largest crops, was 139.3 — lower than the extreme highs it hit during the global food shortage of 2007, but still very strong. The index value for cattle and calf prices — another of Alberta’s traditional farm products — was 132.8, added Hirsch.

“But oilseed prices in Alberta hit some record highs in June, reaching an index value of 158.5. Alberta’s major oilseed crop is canola, and it tracks fairly closely to some of its agricultural substitutes, notably corn and soybeans in the U.S. Because of the severe heat and drought south of the border this year, corn and soybean prices have risen sharply — and have risen even more through July and August,” said Hirsch.

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© Copyright (c) The Calgary Herald

Alberta Elections officials investigate alleged breach of contribution laws by three Conservative MLAs

By Karen Kleiss, Edmonton Journal September 6, 2012

EDMONTON – Elections officials are investigating allegations that three Progressive Conservative candidates breached elections contribution laws.

In a letter delivered Thursday to Chief Electoral Officer Brian Fjeldheim, Bill Moore-Kilgannon of Public Interest Alberta alleged the three Tories accepted donations that run afoul of the Elections Finances Contributions and Disclosure Act.

“These contributions clearly break the spirit of the law,” Moore-Kilgannon wrote in the letter, dated Sept. 5.

“It is important that your office investigate these contributions and clarify the rules so that in future, clear attempts to exceed contribution limits, and disrespect campaign finance rules, will be prevented.”

Moore-Kilgannon alleged that Fort McMurray-Wood Buffalo MLA Mike Allen and associate minister of Transparency Don Scott breached the act by contributing to each others campaigns. He said the politicians effectively “doubled down” by contributing the maximum $2,000 to their own campaigns and the same amount to each other.

Both MLAs denied the allegations.

“We were very careful to make sure that we were compliant,” Allen said. “We don’t believe that we have contravened the act in any way at all, either the intent or the letter of the law.” He added that if elections officials say otherwise, they will comply.

Scott said he has already cleared his donations with elections officials. “I don’t believe there’s any substance to the allegations that have been made,” he said.

“Elections Alberta told me that I am in compliance with the act.”

Moore-Kilgannon also alleged that Service Alberta Minister Manmeet Bhullar accepted $12,000 in donations from Solo Liquor Stores and its subsidiaries, far above the $2,000 a single person or company can donate to a candidate, and over the $10,000 limit that any person or company can give to a single party.

Bhullar said he takes the allegations seriously but is confident his contributions will be cleared by elections officials.

“I’ve checked with my campaign team and, again, they said we’ve received six individual donations from six separate corporations that file six different tax returns,” Bhullar said.

“If there’s something beyond that, I will be in touch with the chief electoral officer. Obviously I will abide by his guidance.”

If anything is amiss, he said, he will refund the money.

Elections Alberta spokesman Drew Westwater said he couldn’t comment on allegations contained in the letter but that all serious accusations such as these are investigated by the office.

“In this case, it is certainly something we would look into,” Westwater said.

He noted that it is not illegal for candidates to donate to each other, and it is not illegal for several people from the same company to donate to a candidate, so long as the contributions come out of the individual donor’s pocket and are not reimbursed by the company.

The outcome of the investigation will not be made public, pursuant to privacy rules in Alberta’s elections laws.