December 19, 2014

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GAMES ECONOMY How will the 2015 Canada Winter Games affect us?

See Story Page 3 Dustin HALL/Courtesy of the 2015 Canada Winter Games Team BC short track speed skaters during the Canada Winter Games in Halifax. The Games come to Prince George in February and with them, an economic impact.

Government pitches LNG Lakeland Mills re-opens Resources Expo coming spinoffs.........................P6 sawmill.........................P11 to P.G. next spring......P16

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Friday, December 19, 2014

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LAKELAND BACK

Bill PHILLIPS/Free Press Inside Lakeland Mills’ new sawmill in Prince George. The mill was rebuilt after an explosion and fire destroyed the mill in 2012. About 110 people are now back on the job as the mill went back into production December 8.

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B.C. economy predicted to see growth B.C.’s economy will gain strength over the next five years, led by exports, says a new forecast

by Central 1 Credit Union.

The provincial economy will expand 2.5 per cent this year as consumer spending and the housing market have been stronger than anticipated. However, due to weak commodity prices and cuts in mining production, projected growth from 2016 to 2019 has been reduced since the last forecast in the spring.

“Growth will shift to a slightly stronger pace of 2.7 per cent in 2015 as U.S. demand and a low Canadian dollar fuel more export growth,” says Bryan Yu, regional economist with Central 1, which is the trade association and financial facility for B.C. credit unions.

During the 2016 to 2019 period, Central 1 projects the start of two major liquefied natural gas projects will drive growth to about 3.4 per cent.

Key findings in the forecast include: Economic growth will average 2.5 per cent this year, rising to 2.7 per cent in 2015 before averaging 3.4 per cent from 2016 to 2019.

Exports will lead growth over the next few years, especially in the forestry, manufacturing and tourism sectors.

The start of liquefied natural gas (LNG) projects will drive growth in 2016–19 Prolonged delays to LNG projects could lower growth by roughly half a percentage point each year.

Weak commodity prices and lower expectations for the mining sector have cut growth projections relative to previous forecasts.

Employment growth will climb to 1.4 per cent in 2015 before trending between 1.7 to 2.0 per cent.

“I expect forestry, manufacturing and tourism will lead the way for the B.C. economy,” Yu said. “Job creation will gain strength and the unemployment rate will fall to 5.3 per cent by 2019.”

Growth will shift to a slightly stronger pace of 2.7 per cent in 2015.

- Bryan Yu

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2015 Canada Winter Games will have an economic impact of $70 million Bill Phillips Northern Report The 2015 Canada Winter Games are fast approaching.

With the games set to start in mid-February, the games are approaching faster than they might like.

However, says 2015 Canada Winter Games CEO Stuart Ballantyne, they will be ready.

“The time is ticking quickly,” he told council in October. “Things are going well.”

The 18 days of the games is when the community, province and country will focus on Prince George, however the preparatory work has been ongoing for several years.

The games themselves will definitely have an economic impact on Prince George and northern B.C. The games staff estimates that the economic impact of the national event will be $70 million. From beginMichael RAY/Courtesy of the 2015 Canada Winter Games ning to end, the games will 2015 Canada Winter Games CEO Stu Ballantyne and Nanguz, the games’ official mascot. generate 700 jobs. city is contributing another $805,000 in It will take about $45 operating funds. The Regional District of million just to stage the games … an Fraser-Fort George has contributed $1.5 amount that, in October, the games had million while a total of $310,000 in other almost achieved. grant money has been received.

According to the presentation to city The revenue forecasted for the games council, $36.5 million in public funding had been allotted to the games, which is slightly is about $1.4 million. This amount comes from sponsorship sales, ticket sales, mermore than originally anticipated. Private chandise sales, the Legacy Wall project, and sector funding was at $6.7 million, about 81 per cent of the estimated funding. Ticket sale of assets after the games.

The Novak family Legacy Wall projsales were at $788,000, which was about 78 per cent of what was hoped for at that time. ect got underway in August. It involves Merchandise sales, which will certainly pick selling wood blocks for the legacy wall at $100 per block. The permanent site of the up as the games get closer, was at $62,000 Legacy Wall will be at the Prince George (41 per cent of budget). In addition, Civic Centre. Organizers are hoping to $450,000 in other revenue had come in, for raise somewhere between $200,000 and a total of $44.5 million, or 97.9 per cent of $500,000. what is needed.

The games will require a small army of “That leaves us with the remaining task volunteers, about 4,500 and so far 4,300 of raising just under $1 million,” Ballantvolunteers have signed up. yne said. “Staff are committed to not only The opening ceremonies will be on Frieliminating that but creating a legacy. We’re day, February 13 and the closing ceremonot focused on ($1 million) but a number nies on Sunday, March 1. In between, there much larger.” will be 18 days of sports, galas, entertainThe public funding portion of the games ment, festivities, and fireworks on the field comes from all four levels of government with Ottawa, Victoria and the City of Prince of competition and in the skies of Prince George every night.

George each pitching in $11.1 million. The

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Taking the temporary out of TFW program in Canada - CFIB pitches changes In a new report released earlier this month, the Canadian Federation of Independent Business (CFIB) calls for the Temporary Foreign Worker Program (TFWP) to be replaced with a stronger solution to address permanent labour shortages.

Geared towards entry-level workers, CFIB’s proposed Introduction to Canada Visa would simultaneously address critical shortages for small businesses while providing a clear path to permanent residence for foreign workers.

“Canada was built by people who decided to take a chance, come here, and work hard to make a new life for themselves and their families,” said CFIB president Dan Kelly. “The Introduction to Canada Visa would open up those opportunities once again. You shouldn’t need a PhD to live the Canadian Dream.”

Myths, misconceptions and endless controversy around the TFWP brought on ill-advised changes, which have cut off a vital lifeline for many employers and largely barred from the program employers in the restaurant, retail and hotel sectors in much of the country. With small businesses desperate for relief, the Intro-

duction to Canada Visa is one solution – outlined in CFIB’s new report – that makes sense for employers while honouring Canada’s immigrant roots.

“One of the legitimate criticisms of the TFW program is that it was often employing temporary workers to fill permanent labour market needs,” added Kelly. “Given the massive cost of turn-over, small businesses would much rather hire someone who is not temporary, but the permanent immigration system largely prohibits anyone with more junior skill sets.

We need workers at all skill levels, including for entry-level jobs, and that need isn’t going away.”

CFIB’s proposed new visa would give foreign workers in entry-level categories an opportunity to work with an employer for two years as a defined step towards permanent residency.

Other features include: • Employer must have one Canadian employee at same wage rate to have one Intro Visa; • Ability to switch employers, not sectors or regions, if commitments not kept; • Strict national and provincial enforcement.

The report also challenges the assumptions that employers are

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somehow using foreign workers as a source of cheap labour. In fact, almost 70 per cent of small business owners who have used the TFWP say it costs them more than hiring Canadian workers.

In addition to the Introduction to Canada Visa, the report recommends other options, including allowing current applicants for permanent residency to stay until processing is complete, recalibrating the new $1,000 fee, allowing more flexibility for restaurants, retailers and hotels, and dropping the target for a 10 per cent workforce cap on foreign workers.

Surprisingly, the CFIB is getting support from the New Democats.

“Business, labour and New Democrats all agree – the temporary foreign worker program needs to be replaced with a road to citizenship for people who come to work in Canada,” said New Democrat labour spokesperson Shane Simpson.

“Unfortunately Premier Clark does not

agree, and is instead trying to use the flawed current program as an option for companies to sidestep B.C. workers and instead access cheap labour for LNG development.

“That’s unacceptable. British Columbians need to be first in line for LNG jobs, and if there are not enough British Columbians to fill LNG jobs, we should be to inviting workers from elsewhere to move here permanently and make a life in our province.”

The current temporary foreign worker program ties workers to a single employer, and if they quit their job they have to leave the country, leaving them vulnerable to exploitation, said Simpson.

“This program is bad for workers, bad for businesses and bad for the province.

Workers who are good enough to work here are good enough to stay here. It’s time to give these workers the same opportunities to make a permanent life in Canada that most of our families were given.”

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Lakeland Mills’ plant manager Marc Witte explains the baghouse system to reporters during a tour of the new mill recently.

The new mill went into production on December 8.

Bill PHILLIPS/ Northern Report

Bright spots on the horizon for central British Columbia economy: CPA Stan Mitchell CPA In 2013, our region experienced a relatively challenging year after two consecutive years of economic growth.

The Cariboo had widespread job losses in various industries, an outmigration of labour, and a decline in capital investment. However, despite the difficulties we faced last year with our economy, employment opportunities are expected to improve this year as several major projects move forward and an upsurge expected in forestry and other natural resource sectors.

According to the BC Check-Up, Regional Edition, our region experienced the highest overall rate of job losses in the province in 2013, with a net loss of almost 4,000 jobs. Manufacturing and primary industries incurred the brunt of the damage, losing 1,300 and 900 jobs respectively.

Fewer available jobs drove many skilled tradespersons to leave the region and find work elsewhere, such as Alberta and the Peace country, and as a result, the labour force contracted.

The upside was more job opportunities for those who stayed, and the unemployment rate fell considerably last year.

While we saw skilled tradespersons leave the local workforce, many chose to keep their homes here and bring their wages back to the local economy where their spouses are employed and the cost of living is more affordable.

Overall, even with this migration of workers, our total population did not decline.

The report found that overall capital investment dipped by one per cent last year, due to the decrease in the value of major projects under construction, and the completion of two mines.

However, two new developments in Prince George are expected to be completed by the end of this year, and four others are scheduled to proceed, which will bring employment and economic

benefits to our economy.

Lakeland Mills is replacing its sawmill that was destroyed by fire in 2012, and once operational, it is expected to employ approximately 100 workers. In addition, the $25 million Wood Innovation and Design Centre will be completed.

Once finished, this research and academic centre for the technological advancement of wood products and building techniques should attract skilled workers and help raise educational attainment levels in the region.

Other projects that are scheduled to proceed this year have a total estimated value of $1.1 billion.

The largest is Spanish Mountain Gold Limited’s proposed open pit mine near Williams Lake; its capital cost estimate was revised upwards from $463 to $756 million in the past year. Other projects of note include a Biomass Project in McBride ($140 million), the Hills Health Ranch Expansion ($40 million), and a hotel and condominium development in Prince George ($40 million).

In addition, housing starts are on the rise in the U.S. and demand from China will likely continue driving our forestry industry, which is forecasted to have another good year even with the mountain pine beetle epidemic.

Although the epidemic has caused production to slow and shut down some mills, mills that remain in operation may benefit from soaring prices.

Overall, while there are bright spots on the horizon, although the Cariboo has experienced a 2.5 per cent decline in consumer insolvencies between 2012 and 2013, the fact that the Cariboo’s consumer insolvency rate was still among the highest in the province suggests that some residents are still struggling financially after the recession.

Beyond encouraging more construction activity, it is important for the region to focus on creating more long-term employment opportunities through the completion of proceeding projects and

their spin-offs.

This will encourage a more stable economy for those living in the Cariboo.

Stan Mitchell, CPA, CA is a partner at KPMG LLP in Prince George. The BC Check-Up report is available online at: www.bccheckup.com.

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Gov’t. pitches LNG spinoffs Tom Fletcher Northern Report The B.C. government has launched a website it says will help spread the benefits of liquefied natural gas development to businesses around the province.

Jobs Minister Shirley Bond unveiled the website at www.LNGBuyBC.ca recently, with 300 B.C. businesses signed up with details of their goods and services. Representatives of two of those businesses visited the B.C. legislature to endorse the effort.

Janice Shaben is a partner with her husband, Gord, in Terrace-based Silvertip Promotions and Signs. She said LNG companies are already active in the northwest and her company has landed some business deals by direct meetings.

She is also president of the Terrace Chamber of Commerce, with more than 300 member businesses.

“I’m going to encourage all my businesses in town to make sure they get connected, because by registering your company on the website, it allows you to showcase what you’re capable of doing, what services you’re able to provide,” Shaben said.

Devon Siebenga, president of Kelownabased BigSteelBox Structures, brought one of his company’s portable worker accommodation units with him. Converted from a steel shipping container, the unit contains two of what Siebenga termed “executive suites” with granite countertops and in-suite washrooms.

“We’re setting out to change the way people look at workforce accommodations and modular structures,” Siebenga said.

Photo Submitted BigSteelBox Structures president Devon Siebenga tells Jobs Minister Shirley Bond how his company’s portable housing is built in converted shipping containers and deployed in industrial camps.

Bond said the liquefied natural gas industry could create 100,000 jobs in the province. Companies that register at the website enter details of their goods and services and the system matches them up with needs listed by energy and construction companies.

The government hired former NDP cabinet minister Gordon Wilson to tour the province promoting B.C. business participation in LNG projects. Wilson stressed that aboriginal communities and companies will be at the front of the line.

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will let you know First Nations business trumps all other because they want to make sure First Nations are properly engaged in this process,” Wilson told the Prince Rupert and District Chamber of Commerce Oct. 15. “I think that is only proper and correct.”

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Liquefied natural gas sector could cause labour market challenges Bronwen Scott Northeast News Over the next 10 years, the province estimates there will be one million new job opportunities in the province, and it’s anticipated between 60,000 and 100,000 of those jobs will be in the LNG industry. “That is almost unprecedented, when you think about the opportunity we have ahead of us,� said Scott MacDonald, assistant deputy at the B.C. Ministry of Jobs, Tourism and Skills Training.

MacDonald was one of the special guests at the LNG Government Panel last month, which took place at the North Peace Cultural Centre in Fort St. John.

Organized to field questions from the audience, the panel was part of the Regional LNG Energy Seminars that have been touring the province, an initiative of the British Columbia Ministry of Natural Gas Development. “We know through our analysis that in the next 10 years ahead our province is going to see a massive change, we’ll see a large number of people moving through the work force and in hiring,� said MacDonald.

CURRENT AND FUTURE PRODUCTION RATES B.C. produces about 1.5 trillion cubic feet of natural gas a year, and is the second largest producer in Canada. About a third of Canada’s natural gas production comes from B.C. That number, however, is expected to skyrocket to 82 mega tonnes per annum, according to an official government forecast.

This would equate to about 15 billion cubic feet of raw gas per day.

In comparison to today’s production, it’s a little more than three times what B.C. is currently producing.

It’s these changes, how they will affect the landscape and how they will be managed, that drew a small but curious crowd to the Cultural Centre theatre room, where the panel took place. “It’s certainly important that we take a look at what the impacts of imposing that additional gas production in the province might look like,� said Ken Paulson, chief operating officer for the British Columbia Oil and Gas Commission.

Assuming that the estimate of 82 mega tones per annum required by 2020 is correct, a peak of activity on the land base would likely take place in 2019, to make sure gas is available to supply LNG plants, he said. “The number of wells that you might have to drill, say, in 2019, 2020, would be a little over 2,000 wells. So, 2,100 wells is what we forecast.�

ENVIRONMENTAL CONCERNS Reducing industry’s environmental footprint was a concern voiced by one citizen in attendance, something which government has already taken steps to address. “We are regularly looking at policies and programs that incent industry to be more competitive, to be more efficient, switching out infrastructure, specifically for new infrastructure that’s more efficient that reduces greenhouse gas emissions,� said Michelle Schwabe, from the Ministry of Natural Gas Development. “We could give incentives, we could give

regulatory approaches, so we’re definitely assessing LNG Spinoffs those pieces, because it is something that we want to see happening,� she said. “We want them to move forward with technology that will reduce emissions that will be cleaner and better for the environment.�

One of the policies recently developed has been to encourage industry to use the best technology available when they’re putting projects forward into the environmental assessment process. “We ask that industry carefully assess all of their technology, and ensure that they’re choosing technology that’s going to reduce emissions, that’s going to have the least Tom FLETCHER/Northern Report impact,� Schwabe said.

Janice Shaben, president of the Terrace Chamber of Commerce, says her sign and promotion Carbon capture and company has already received some orders from LNG proponents in northwestern B.C. storage projects are also extend our programs, those types of things,� of workers to stay in the workforce longer. in the works, although planning at this MacDonald said.

Also on the panel was Stuart Gale, senior point is still in early stages. There are barriIn years past there were incentives, like negotiator with the Ministry of Aboriginal ers, however, and a regulatory framework is retirement bonuses, to encourage people to Relations and Reconciliations, and David needed to move ahead. leave the workforce.

Conway, community relations manager “One of the things that we heard from But now the government’s focus will be for the Site C Clean Energy Project, who industry, and this is what we hear globally incenting kids to get into the workforce was present to answer questions about B.C. from the industry, is that they don’t want to faster, and incentives for an older generation Hydro’s energy supply to the LNG industry. have to maintain that long term liability for that CO2 importunity,� said Schwabe. “We’re looking at policies that would transfer that CO2 liability risk back to the province, so that once those projects are fully closed down and mediated to our standard, then the province would be able to accept those storage reservoirs as being our storage reservoirs into the future.�

A CHANGING WORKFORCE, A CHANGING FOCUS One of the driving factors behind the estimated one million new job openings expected in 10 years’ time has to do with demographics, a factor that will change the way the provincial government targets young workers, and appeals to older ones. “Historically, for as long as we’ve got data going back, we’ve always had more young people coming into the workforce than old people leaving, we’ve always had a surplus of young labour,� said MacDonald.

But that’s about to change. “2016 is the first time in the history of our province that we’ve got data available where we’ll actually have more old people leaving than young people to replace them,� he explained.

About two-thirds of the estimated million job openings across the province will be from an older generation of workers leaving the workforce.

The other third is going to be new growth, like LNG, new mines, economic growth in the lower mainland, in the north, and across the province.

The government’s approach to employment – both attracting new workers, and retaining older ones – need to change in order to cope with the anticipated economic growth. “Historically our strategies have been how do you keep kids in school longer, because there’s not enough job openings, how do we

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REPORT - Free Press

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B.C. Natural Resource Forum showcases economic opportunity in the North Mike Morris MLA Prince George-Mackenzie and forum co-chair Last month, a group of University of Northern British Columbia students organized a visit to Williams Lake and Prince George for Council of Forest Industries CEO James Gorman, to update citizens with their report, The State of the B.C. Forest Industry.

This is a strong indication that B.C.’s forest industry continues to be a mainstay of B.C.’s economy. The official opening of the Wood Innovation and Design Centre in Prince George is one example of the government’s commitment to sustaining our forest industry.

We also recently announced an increase in the annual allowable cut in the Mackenzie timber supply area by almost 50 per cent.

This will not only help to sustain the forest industry but will help our northern communities flourish while maintaining the environmental and land-use standards British Columbians expect.

The forum brings together community and First Nations leaders along with senior industry representatives from all natural resource sectors and government ministers and MLAs and will feature a keynote address given by former B.C. Attorney General Geoff Plant, Q.C. at the Celebrating Natural Resources Dinner January 20. Plant is one of the leading experts on First Nations legal and constitutional matters.

Following the Forestry Panel on Wednesday January 21, delegates will hear from speakers about challenges and opportunities in Energy, LNG, Education and Skills Training sectors.

On Thursday, January 22, delegates will hear from speakers about challenges Bill PHILLIPS/Free Press and opportunities in the Mining and Transportation sectors and learn more Premier Christy Clark and Carrier Sekani Tribal Chief Terry Teegee chat during the 2013 B.C. about First Nations and Resource Development. The BC Natural Resource Natural Resource Forum in Prince George.

Forum reflects the best of B.C. in all the natural resource sectors. Federal MinCouncillor, Haisla Nation, Douglas Eyford, Federal Special Treaty Advisor and Ken ister of Natural Resources Greg Rickford has confirmed his attendance as the Coates of MacDonald Laurier Institute, a former Prince George resident. keynote luncheon speaker on Thursday, January 22.

The BC Natural Resource Forum reflects the best of B.C. in all the natural resource To close our forum, a blue-ribbon panel will discuss issues and challenges of advancsectors and builds on the integrated approach to resource management. ing new resource projects while respecting aboriginal rights and engaging First Nations For more information about the 2015 BC Natural Resource Forum, visit bcnaturalrecommunities. sourcesforum.com.

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Market expansion forum set to be held during Natural Resources Forum Registration is now open for the third annual Market Expansion Forum being hosted by Initiatives Prince George (IPG) on January 20. The ‘Procurement Opportunities in Northern BC’ forum will connect Prince George and regional businesses with representatives of multiple major projects that are proposed or underway in northern BC. “The Market Expansion Forum is being held on January 20 to connect representatives of major projects in northern BC who are in Prince George to attend the Premier’s BC Natural Resources Forum on January 21 and 22 with local and regional businesses interested in bidding on components of these projects,” said Heather Oland, CEO at Initiatives Prince George. “Providing connections between major projects and local and regional suppliers will ensure that the supply chain is as informed and as robust as possible, which will help proponents ensure that their projects are delivered on time and on budget.”

The Market Expansion Forum will prepare Prince George and regional businesses for the many opportunities they will be given to share in the economic benefits of the $140 billion dollars’ worth of resource and resource related projects planned and underway in northern B.C. This forum also has a special focus on the $75 million dollars’ worth of forestry projects that are currently underway and the additional $786 million dollars’ worth of projects that are proposed in the next three years.

“This forum is an excellent opportunity for businesses to better understand

what major industry is looking for, what local procurement opportunities will be available and how to get into these industrial supply chains. The industrial develop planned for northern B.C. over the next decade is unprecedented and businesses need to be ready”, said Renata King, Director Business Development at Northern Development Initiative Trust.

During the forum, Oland will give a presentation on IPG’s new Business Retention & Expansion Program; Renata King, Director, Business Development, Northern Development Initiative Trust will discuss the Supply Chain Boot Camps and Supply Chain Connector; and Gordon Wilson will give a presentation on LNG – Buy BC. Eight industry sessions running concurrently throughout the day will follow and will feature a major project proponent from Transcanada, Spectra Energy, Pretium Resources, Graymont, Canfor, Pacific BioEnergy, Enbridge and LNG Canada. There will also be a luncheon featuring keynote speaker Stewart Muir, Executive Director, Resource Works.

The third annual Market Expansion Forum will be held at the Ramada Hotel from 8:30 a.m. to 3:30 p.m. on January 20, 2015. Early bird registration for the “Procurement Opportunities in Northern BC” forum is available until December 21, 2014 at http://marketexpansionforum2015.eventbrite.ca. The cost for registration will increase after December 21, with registration remaining open until January 15, 2015.

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Friday, December 19, 2014

REPORT - Free Press

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Oil refinery backers move ahead Tom Fletcher Northern Report Backers of a third large oil refinery proposal for B.C.’s North Coast made some high-profile appointments this month, naming former Assembly of First Nations national chiefs Shawn Atleo and Ovide Mercredi as advisors to their team.

Pacific Future Energy, proposing what it calls the world’s greenest refinery near Prince Rupert, announced the appointments at a Vancouver Board of Trade event hosted by Stockwell Day, the former Conservative trade minister who has been the group’s public face since August.

Pacific Future’s proposal is similar to Kitimat Clean, a refinery bid launched in 2012 by David Black, chairman of Black Press. Both would be constructed from modules manufactured offshore to produce diesel, gasoline and other fuels for sale, avoiding the transport of heavy oil by tankers to reach export markets.

The third proposal is called Eagle Spirit Energy, headed by aboriginal author and lawyer Calvin Helin with financial backing from the Aquilini Group, the Vancouver family business that owns the Vancouver Canucks and extensive real estate and farm holdings.

Eagle Spirit is proposing a pipeline from the Alberta oil sands to an upgrader that would produce synthetic crude oil for export by tankers, likely from the Prince Rupert area.

Black announced last week that engineering firm Hatch Ltd. has completed a design and feasibility study for a refinery

Wikipedia Commons Shawn A-In-Chut Atleo’s latest appointment is as partnerships advisor for Pacific Future Energy.

at an estimated cost of $22 billion, making it one of the 10 biggest in the world.

Black said in an interview he sees obvious similarities with the Pacific Future proposal, which describes new technology and carbon capture to reduce its environmental impact. Kitimat Clean proposes a new refining process that avoids production of petroleum coke, a coal-like byproduct of conventional heavy oil refining that is used in steel making.

Black Press Kitimat Clean CEO David Black.

Black said the entry of Pacific Future, headed by an executive of Mexican conglomerate Grupo Salinas, shows the business case for a B.C. refinery is sound and there is capacity for more than one plant.

All proposals for B.C. North Coast refining require oil transport to the coast, either by rail or in some version of the Enbridge Northern Gateway pipeline project, which received a federal environmental certificate this year and awaits approval by the federal cabinet.

All proposals also face opposition to transport of heavy oil. Pacific Future has appointed Atleo as a senior advisor for partnerships, months after Premier Christy Clark appointed him as an advisor for dialogue between First Nations, government and industry.

Black said his next steps include negotiating “acceptable compensation” for his project with the Kitselas and Haisla First Nations for use of their traditional territory.

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Friday, December 19, 2014

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Bill PHILLIPS/Free Press A construction worker puts some last-minute touches on the new Lakeland Mills sawmill. The rebuilt mill went back into production on December 8, almost two years after it was destroyed by an explosion and fire that killed two people and injured a couple dozen more in April 2012.

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Friday, December 19, 2014

REPORT - Free Press

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Second power project powers up AltaGas says the second of what will be three run-of-river hydro-electric projects north of Terrace is producing power.

The Volcano Creek project along the Iskut River, rated at 16 megawatts, had its powerhouse and high voltage switchyard completed this month and is now delivering power to the provincial grid through BC Hydro’s Northwest

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“We are pleased to announce the safe commissioning of Volcano Creek two years ahead of schedule and on budget,” AltaGas CEO David Cornhill said.

The company, based in Calgary, expects final project commercial operations to be achieved by the end of the year.

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AltaGas’ first run-of-river project along the Iskut River to go into production was the much larger Forrest Kerr project of 195 megawatts.

That site began producing power and running it through the Northwest Transmission Line this summer and was officially certified in October.

A third run-of-river project, McLymont Creek at 66 megawatts, is under construction with a completion date scheduled for mid-

2015.

BC Hydro is buying the power from all three projects under a 60-year deal it has with AltaGas. Taken together, the three projects have a combined cost of $1 billion.

AltaGas built its own transmission line from its three projects to a substation at Bob Quinn on Highway 37 North where power then flows into the Northwest Transmission Line.

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High school students in northern B.C. have one more reason to consider a career in the trades with access to new shop class equipment.

Northern Development Initiative Trust’s board of directors have approved a $250,000 grant for Project Shop Class (northern B.C.) – a program designed to replace and augment shop class equipment in high schools throughout the region.

“Northern B.C.’s shortage of skilled trades workers is a potential barrier to investment in the region, and the Project Shop Class program will help address that challenge, strengthening local construction businesses and the regional economy,” said Evan Saugstad, Chair, Northern Development Initiative Trust.

The grant was approved with support from all four of the trust’s regional advisory committees as well as its board, and comes amid a significant wave of proposed industrial development in the region that will require more skilled trades workers than northern B.C. currently has available.

“We are very pleased that Northern Development Initiative Trust has chosen to support this worthy undertaking. This is just the type of commitment our region needs to help promote economic development in our com-

munities and encourage our youth to consider a career in the trades,” stated Rosalind Thorn, president of the B.C. Construction Association-North.

Local high school graduates are an important source of labour for small and medium-sized construction companies, but without more emphasis on shop class many of the companies will have difficulty recruiting the people they need to land new contracts and grow, which could result in lost growth opportunities for the region.

Project Shop Class is a partnership between the B.C. Construction Association North and the Construction Foundation of B.C. that will benefit the secondary schools in the region to provide the tools and equipment students need to train for rewarding trades careers.

The current budget for this northern focus of Project Shop Class totals $532,000 and includes generous donations from industry. A list of all donors can be found at the Construction Foundation of B.C. website. B.C.’s northern high schools have requested more than $1 million in support to date and therefore fundraising activities will continue.

Northern Development’s funding commitment was approved through the Trust’s Economic Diversification Infrastructure program, which provides up to $250,000 in grant funding.

QUICK FACTS • Project Shop Class is a partnership between the Construction Association of B.C. and the Construction Foundation of B.C. • Buildforce Canada predicts skill shortages for the construction industry in B.C. for the next decade, which will be exacerbated by the development of an LNG industry • Approximately 85 per cent of the businesses operating in the construction industry have fewer than 10 employees and yet they hire and train most of the journey persons across all sectors • Northern Development’s $250,000 grant contribution will be used to purchase tools for high schools throughout the region that take part in the program • To date, Northern Development has approved more than $125 million in grant funding for 1,500 economic development projects throughout central and northern B.C. • The Trust’s funding contributions to the region have helped create more than 6,000 new jobs since 2005

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REPORT- Free Press

Friday, December 19, 2014

13

Diesel price stays high as crude oil drops to lows not seen in some time Jeff Nagel Northern Report Pity the poor diesel truck owner.

While regular gasoline prices have dropped significantly with the plunging price of oil, the pump price for diesel has remained stubbornly high.

According to bcgasprices.com, regular gas fell below $1 a litre at a Costco station in Prince George last week, with other prices around the B.C. Interior nearly as low. One of the best deals on diesel was $119.9 at the No Frills station in Port Alberni, with diesel prices as high as $145.9 at the Esso and Shell stations in Kitimat.

“It shouldn’t be that high,” said John Whittall, a West Kelowna retiree who bought his diesel pickup for the fuel savings. “Typically, diesel hasn’t been more than gas. When gas was low it was lower.”

That’s historically true.

But early 2009 – when diesel was 85 cents a litre and gas was nearly $1 – is the last time diesel drivers enjoyed big savings.

The price gap closed and since 2012 diesel has cost a few cents a litre more than gas most of the time, according to statistics maintained by petroleum industry analysts MJ Ervin and Associates.

For the last three years, diesel has been stuck between $1.30 and $1.50 in Vancouver, costing a few cents more than regular gas for most of that time.

Jason Parent, vice-president of consulting at MJ Ervin, says the reason for the disparity is diesel and gasoline are two very different commodities that don’t move together in lockstep.

“They each have their own supply and demand fundamentals and they can move in different directions,” he said.

Unlike gasoline, which jumps in price towards summer as more drivers hit the road, diesel tends to rise in the winter.

The reason, Parent said, is that diesel is virtually identical to heating oil, which is in high demand to heat homes in the winter.

“In the winter season when it gets colder, demand for heating oil spikes and that causes a demand pull on both heating oil prices and diesel prices.”

The drop in crude oil prices has put downward pressure on diesel, he said, but that has been largely offset by the increase in winter demand – much to the irritation of diesel users.

“The guys who use diesel are all wondering why they’re not seeing the same benefit as everyone else.”

Whittall said he has difficulty believing Parent’s explana-

tion.

He said diesel prices never seem to budge, no matter if it’s summer, winter or crude oil prices are collapsing.

“I bet you it hasn’t moved a penny up here,” he said.

ITA launches apprenticeship tool The Industry Training Authority (ITA) and WorkBC have a new innovative online Apprentice Job Match tool which will better connect local apprentices looking for on-the-job training they need to boost their skills and achieve certification in their chosen trade. See here for video of new tool in action.

The launch of this new tool was timed to coincide with the provincial government proclaiming November 7 as B.C.’s inaugural “Apprenticeship Recognition Day.” This day will help raise awareness of the importance of developing a highly trained and skilled workforce for key sectors of B.C.’s growing economy where skilled trades are needed.

The online Apprentice Job Match tool is located on WorkBC’s website which has over 20,000 visitors daily and 10,000 job postings. Finding an employer sponsor is one of the biggest hurdles to

a successful apprenticeship. With over 37,000 registered apprentices in B.C., and over 9,400 employer sponsors, the need to connect apprentices to local employers is greater than ever.

The Apprentice Job Match tool was launched locally at the College of New Caledonia (CNC), where Foundation program students, local employers, and other industry stakeholders joined ITA to learn more about how the tool works, and how it can assist them in their job or apprentice search.

“Helping apprentices find employer sponsors is critical to improving apprenticeship completion rates and ensuring industry has the skilled labour it needs to take advantage of our growing economy,” said Shirley Bond, Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour.

“Through our Skills for Jobs Blueprint, we committed to improving the way we connect apprentices and employers, and

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the Apprentice Job Match tool is providing an easy and accessible way to do exactly that.”

“We are excited about the potential of the new Apprentice Job Match tool to help better connect our students at the College of New Caledonia with local employers willing to sponsor apprentices. These connections will help ensure that our students are able to complete their apprenticeship, gain certification and go on to be the next generation of skilled tradespeople in B.C,.” says Henry Reiser, President, College of New Caledonia.

“One of the biggest hurdles to apprenticeship is securing employment with an employer sponsor,” says Prince George-Mackenzie MLA Mike Morris.

“Employers are an essential component of any apprenticeship as 80 per cent of an apprentice’s journey is spent in practical training under the guidance of their employer. Jobseeking apprentices

and employers will use this tool to help find and secure a suitable apprenticeship.”

“The employer is key to any successful apprenticeship journey as the majority of time is spent in practical training under the guidance of the employer,” says Gary Herman, ITA CEO. “It can be challenging for young apprentices, especially those just starting out, to find employment, so the online Apprentice Job Match tool is an invaluable resource for them, as well as employer sponsors looking to hire apprentices.”

The Introduction of the Apprentice Job Match tool is part of ITA’s increased efforts to better support apprentices through the apprenticeship pathway and to increase continuation and completion rates across the province. It also delivers on recommendations outlined in B.C.’s Skills for Jobs Blueprint: Re-engineering Education and Training and the McDonald Report.

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Friday, December 19, 2014

REPORT - Free Press

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Clark on climate, clawbacks, and credit cards A year-end interview with Premier Christy Clark conducted by Tom Fletcher.

TF: Are you still confident that we’re going to see a major LNG project approved by the end of 2014?

CC: We’re still in negotiations with Petronas and Shell, so I don’t know if it will be by the end of 2014, but I’m hoping in the next few months.

[Days after this interview, Petronas announced a delay in their investment decision until 2015.]

TF: I talked to a couple of SFU climate mitigation specialists, and they agreed that it’s unlikely to the point of impossible to have a major LNG industry and still meet Gordon Campbell’s ambitious greenhouse gas target of a 33 per cent reduction by 2020. What do you think?

CC: I think that we may prove them wrong.

Many of these facilities, not all of them, will be partly or fully electrically powered up, so that reduces those impacts, and there’s going to be a real incentive to invest in new technology to minimize that as well.

I think the bigger picture is what really matters, which is that in shipping 82 million tonnes of liquefied natural gas to Asia, we help them get off coal and other dirtier sources of oil, and that is the biggest contribution that we’ve ever made to reducing climate change.

TF: Ontario and Quebec have taken a page from your book. They have seven conditions for an oil pipeline, Energy East, which involves conversion of gas pipelines and taking Alberta oil to the East Coast.

What do you think?

CC: I think they took our five conditions

and elaborated on them. So you’ve got British Columbia, Alberta, now Ontario and Quebec, all signed on to some version of the five conditions. And of course Enbridge and Kinder Morgan as well.

TF: What about the conditions they have added?

CC: One of the things they say they want to protect against is a shortage of natural gas coming to Ontario and Quebec.

These are the same two provinces that have put a moratorium on extracting natural gas.

They want to make sure that we do it here, good enough for us to do, and send it to them, but they won’t do that themselves. I look at their last two conditions, and I roll my eyes a little bit.

TF: All the way to New Brunswick, they’ve basically bought the anti-hydraulic fracturing myth?

CC: Yes. Somehow they all watched an American mockumentary or whatever you call it, Tom FLETCHER/Northern Report Premier Christy Clark in her Victoria office after the fall legislature session passed new tax and believed it. and environmental rules for natural gas exports.

Here in British Columbia we do fracking better than anywelfare rates and in particular ending child We are going to see if we can find ways where in the world. It is the gold support clawbacks. What’s your view? to improve some of the programs over standard.

CC: Like any family that’s been through time, but can’t do that until we can afford it.

TF: Finance Minister Mike de Jong says tough times, the first thing you need to It’s typical, the NDP want us to spend the we have a surplus estimated at more than do when you get back to finding a job and money before we have it. $400 million for this fiscal year, and he making an income again, is to pay off your Tom Fletcher is legislature reporter and suggested that much of that would have to credit cards. columnist for Black Press newspapers. Email: go to pay off deficits from previous years.

And that’s what we’re going to do. tfletcher@blackpress.ca Of course the opposition is interested in

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Friday, December 19, 2014

15

Nisga’a nation signs on to LNG Tom Fletcher Northern Report A $6 million benefit agreement with the Nisga’a Nation to build a gas pipeline through its territory is the first of a series of deals that will share benefits of liquefied natural gas development with B.C. First Nations, Aboriginal Relations Minister John Rustad says.

Rustad and Natural Gas Development Minister Rich Coleman signed the agreement earlier this month with Nisga’a Nation President Mitchell Stevens to accommodate a pipeline through Nisga’a territory to an LNG export facility proposed near Prince Rupert.

The pipeline is proposed by TransCanada Corp. to supply gas from northeast gas fields to an export facility at the Port of Prince Rupert.

But the Nisga’a have aspirations to go beyond one project.

The Nisga’a government has identified four sites near the mouth of the Nass River that have level land and ship access that could accommodate land-based or floating LNG terminals.

“We’re not interested in a pipe that comes from the northeast and brings raw resources to the coast,” Stevens said. “What we are interested in is a pipe that gives us an opportunity to provide for an economic base for Nisga’a citizens.

And these are the sites that were identified,

which we own in fee simple.”

The Prince Rupert proposal is led by Malaysian energy company Petronas, which is expected to be one of the first of more than a dozen LNG proposals to make its final investment decision.

The B.C. and Nisga’a legislatures are changing legislation to allow a gas pipeline to pass through Nisga’a Memorial Lava Bed Park, the first provincial park to be co-managed with an aboriginal community.

The B.C. government has also proposed legislation to give the Nisga’a government taxation authority over natural gas facilities in their territory.

The Nisga’a government has also made an agreement for a still-undetermined share of $10 million in annual benefits from the TransCanada pipeline.

Stevens said there was opposition within the community to the pipeline proposal, but after an extraordinary debate where all Nisga’a hereditary leaders addressed the elected legislature, the project was approved by a two-thirds majority.

“The opportunity to be an active player in the LNG industry is the kind of opportunity for which our elders struggled for over a century, so we could achieve sustainable prosperity for our people into the next century,” Stevens said. “Our elders have told us, now is the time to be bold Nisga’a Nation President Mitchell Stevens and move forward.”

Petronas LNG delay not due to B.C., Coleman says Tom Fletcher Northern Report Malaysian oil and gas giant Petronas has put off its final investment decision on a large-scale liquefied natural gas project until some time in 2015, but it’s not because of B.C.’s taxes and conditions, says Natural Gas Development Minister Rich Coleman.

Pacific Northwest LNG, a consortium led by Petronas for a pipeline and terminal at the Prince

Rupert port, issued a statement earlier this month citing construction costs and federal approvals it still needs for a pipeline and plants worth $36 billion.

“Costs associated with the pipeline and LNG facility remain challenging and must be reduced further before a positive final investment decision can be undertaken,” the statement says. “At the same time, Pacific Northwest LNG will continue to work to secure necessary regulatory and other approvals from the government of

Canada.”

Coleman said he was consulted on the statement and remains optimistic about the project going ahead. The province set its tax and greenhouse gas rules for LNG projects during the fall legislature session, and completed agreements with the Nisga’a Nation to allow a gas pipeline to pass through their territory to the coast.

“It was always clear that once

they got our piece completed, they would move on to making sure their numbers across the board with their partners work,” Coleman said. “That’s the pipeline, the upstream cost for gas plants, that’s the LNG plant itself, which they would build in Port Edward.”

Petronas CEO Shamsul Azhar Abbas said the decision will be made as soon as possible.

“This is vital in light of

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the current intense market environment and for Pacific Northwest LNG not to lose out on long-term contracts to competitive United States LNG projects,” Abbas said.

NDP natural gas critic Bruce Ralson called the decision “a setback,” noting that BG Group also cited U.S. competition in its recent decision to delay a final decision on its project for the Prince Rupert area.

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Friday, December 19, 2014

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REPORT - Free Press

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Canada North Resources Expo set to go in May of next year in Prince George All the equipment needed to get the jobs done will be on display for the return of Canada North Resources Expo May 29-30, 2015 in Prince George.

From forestry, to heavy construction, and project infrastructure, this show will take over the CN Centre with four acres of indoor and outdoor exhibits.

Canada North Resources Expo launched to huge accolades in 2013, and the resounding success of that show is carrying over to the 2015 edition. With booth space already 70 per cent sold out, exhibitors are eager to get their products in front of a qualified audience – like the more than 8,300 visitors who came to the show two years ago.

Master Promotions Ltd. acquired this show in 2012, and since then has worked closely with its west coast partners to ensure it remains a must-attend event for industry representatives, including: • Forestry – harvesting, woodlots, community forests, silviculture, pulp and chips • Heavy Equipment – excavation, grading, crushing and screening, road building, land clearing • Mining – exploration, construction • Independent Power Producers – run of the river, wind farms, solar • Biomass Industry – wood pellets, power cogeneration, bio-fuels • Resource Industry Professionals – engineers, foresters, planners, GIS technology, project managers, consultants, technicians • Transportation Industry – air, rail, land, sea • Suppliers and Service Providers – equipment, manufacturing, machining, camps, caterers • Training and Employment Services – career planners, assessors, training schools, postsecondary institutions, HR managers The Canada North Resources Expo is supported by the Resources Expo Society, the orga-

nization that formerly ran the show on a volunteer basis. Representatives from the society’s board sit on the show’s steering committee, and are joined by local organizations including the BC Forest Safety Council, Scotiabank, Leavitt Machinery, Initiatives Prince George, Inland Kenworth – Parker Pacific, Wajax Industries, and the Logging & Sawmill Journal. Representatives from these organizations come together to provide input to Master Promotions Ltd. to help ensure that the Expo is relevant to the various resource sectors.

The show also partners with local schools and community groups; in 2013, Prince George Big Brothers and Big Sisters held a pancake breakfast at the show, with all proceeds going directly back to help fund their initiatives. Members from a local high school football team – the Eagles Juvenile Football Team – assisted onsite with clean-up and logistics and were presented with a donation for their efforts. Similar partnerships are planned for the 2015 edition.

Master Promotions Ltd. is committed to supporting the resource community by channeling some of the show profits back into the Resources Expo Society. This funding is used locally for resource education and promotion.

The economic impact to the Prince George area is significant, with hundreds of exhibitors and thousands of visitors, as well as committee members and support staff booking hotel rooms, renting cars, eating in restaurants, and frequenting other local businesses.

The expo is just one of several west coast shows that Master Promotions Ltd. produces.

With the support of its Abbotsford-based employees, the company produces the BC Boat and Sportsmen’s Show annually, as well as TRUXPO and the Pacific Heavy Equipment Show, which are held biennially.

For more information on Canada North Resources Expo, find them on Facebook, follow us on Twitter, and visit us online at www.CNRE.ca.

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