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Terrace Standard  Wednesday, April 10, 2013

Hydro project had been source of suit once before tractors and suppliers.” The legal response goes on to say that contrary to this agreement, Surespan had taken on subcontractors “who were not disclosed to and/or not approved in writing ...” Surespan had billed Veresen on several occasions before it pulled out their operations and filed a Supreme Court claim to recoup unpaid labour and construction costs. Veresen had paid $646,174.37 including tax to Surespan, and stated in their response to Surespan’s claim that “the total amount claimed is not a reasonable amount for the work performed.” The Surespan suit was eventually noted as closed according to B.C. Supreme Court records. There was no subsequent record of any arrangement that lead to the suit being closed. Surespan executive administrator llonka Noble said she was unable to comment according to terms of an agreement reached between Surespan and Veresen. The Dasque Middle project is to supply 20 megawatts of electricity to BC Hydro. Dowland left the area in early February though, and local companies who supplied various goods and services say they are still owed money. Main Logging of Terrace filed a lawsuit on March 14, claiming that Dowland owes them more than $100,000. Veresen, the owners of the DasqueMiddle Creek run of river project, is based in Calgary and bought out Swift Power, the company that began the development, in 2010. The project involved diverting water from the two creeks and running it through powerhouses to generate electricity which is to be then transmitted to BC Hydro’s Skeena Substation via a power line that is now under construction. Veresen is selling the power to BC Hydro, part of a province-wide effort to generate more power. BC Hydro has said it expects the power later this year.

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MAIN Logging’s recent B.C. Supreme Court claim against Dowland Contracting isn’t the first to boil out of a major industrial project southwest of Terrace. A little more than a year ago, a Vancouver-based construction company called Surespan sued Veresen, the owner of the Dasque-Middle run of river hydro-electric, claiming it was owed nearly $2.5 million. Surespan was the first prime contractor hired by Veresen to work on the $80 million project in 2011. When it and Veresen became embroiled in a contract dispute, it was replaced last spring by Dowland which is now in financial trouble itself. Local company Main Logging has now sued Dowland claiming unpaid invoices and Dowland is saying it can’t pay contractors it hired because Veresen isn’t pay invoices it has submitted. In its suit filed Feb. 19, 2012, Surepsan says it struck a deal with Veresen for more than $21 million worth of civil works at the location 25 km from Terrace. Surespan says it was cleared to begin work Oct. 4, 2011 and started to build roads, prepare a location for one of two planned powerhouses and to prepare corridors to contain pipes that would bring creek water to the powerhouse turbines. The relationship between Surespan and Veresen soon soured though and according to Surespan’s claim Veresen requested late January 2012 that “Surespan cease performing any work in connection to the Dasque Cluster Project and demobilize from the Site.” Surespan doesn’t mention the reason they were fired in the claim, but Veresen’s legal response says that the work by Surespan’s subcontractors “was inadequate in terms of quality and efficiency.” Furthermore, Veresen claimed the original proposal stated Surespan had to “obtain written approval .... for all subcontractors and to submit the identities of any proposed subcon-

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Terrace Standard, April 10, 2013  
Terrace Standard, April 10, 2013  

April 10, 2013 edition of the Terrace Standard