N2K - November 2016

N K YES! 2

NEED TO KNOW

NOVEMBER 2016 • VOL. 3 , ISSUE 7

Canada approves

$11 Billion

Pacific NorthWest LNG project

Inside N 2 K Moving Forward AltaGas greenlights propane facility

Boundary Moves Regional District looking to cash in on expansion

Four Lanes

Alabama Bound

Terrace focus of new fibre-optic network

Vanderhoof company tapped for U.S. sawmills

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NEXT STEPS

FOR PACIFIC NORTHWEST LNG

THANK YOU for your participation, patience and support in helping our Project reach this stage.

On September 27, 2016 after a rigorous

conditions imposed by the Government

review prior to a decision on next steps

and comprehensive regulatory process,

of Canada. It is important to our project

by project shareholders.

the Government of Canada announced

and to our shareholders, to take our

its conditional approval of our Project.

time to assess each and every one of

This is a significant milestone for Pacific

those conditions and their impacts to

NorthWest LNG and our shareholders.

the project.

We would like to thank area First Nations, stakeholders, local residents and all others involved in the regulatory process for their constructive participation in the science-based environmental assessment.

Pacific NorthWest LNG remains a committed member of the Port Edward and Prince Rupert communities and the region. Feel free to visit one of our

We will also continue our work with

Community Offices and speak to our

the local community, including First

staff if you have any questions about the

Nations, as we aim to build on the

Project.

positive relationships we have established to date. Pacific NorthWest LNG is working collaboratively with local communities including First Nations to provide real benefits and generational opportunities for decades to come. A long-term, trusting relationship between First Nations, Pacific NorthWest LNG and the communities in which we plan

Prince Rupert Office Unit 105, 515 3rd Ave West Open Monday - Thursday 8:30 - 6pm and Fridays 8:30 - 5pm Port Edward Office Located in the Old Port Edward School Open Wednesdays 1 - 4pm

to operate, is integral to the long-term success for everyone in northwest BC. The approval by the Government of Canada includes 190 conditions, in addition to the 8 conditions previously identified in the Project’s Environmental Certificate issued by the BC Environmental Assessment Office in November 2014. We are still reviewing the

PacificNorthWestLNG.com

months. The impact of regulatory

We thank you again for your participation, patience and support in helping our Project reach this stage.

timelines and changes to market

ADNAN Z ABIDIN

Moving forward, Pacific NorthWest LNG and our shareholders will conduct a total project review over the coming

conditions require a fulsome project

President and CEO Pacific NorthWest LNG

NK 2

Publisher & Editor-in-Chief Todd Hamilton Prince Rupert Ed Evans, Sales Kevin Campbell, Reporter Shannon Lough, Reporter Terrace Rod Link, Editor Jackie Lieuwen, Reporter Bert Husband, Sales Erin Bowker, Sales Kitimat Louisa Genzale, Sales Devyn Ens, Editor Smithers Grant Harris, Sales Nick Briere, Sales Chris Gareau, Editor Houston Mary-Anne Ruiter, Sales Burns Lake Laura Blackwell, Sales Flavio Nienow, Editor Fort St. James/ Vanderhoof Pam Berger, Sales Vivian Chui, Reporter Barbara Latkowski, Reporter Haida Gwaii Chris Williams, Sales/ Reporter N2K CONTACT INFO:

Vanderhoof Fort St. James Burns Lake Houston Smithers Terrace Kitimat Prince Rupert Haida Gwaii

• • • • • • • • •

250-567-9258 250-567-9258 250-692-7526 250-845-2890 250-847-3266 250-638-7283 250-632-6144 250-624-8088 250-559-4680

N2K is a Black Press publication mailed or delivered by carrier to more than 30,000 homes and businesses throughout Northwest B.C. Our Head Office is located at: 737 Fraser Street, Prince Rupert, B.C., V8J 1R1 250-624-8088 Fax: 250-624-8085

NEED TO KNOW M NORTHWEST B.C.’S INDUSTRY MAGAZINE

ore “i”s are getting dotted and more “t”s are getting crossed — even if we were missing one on our front page last month.

The long-awaited announcement of Canada’s decision on the fate of the Pacific NorthWest LNG project finally came and it was great news. Now we just have to wait and hope this exhaustive and extremely robust socio-economicenvironmental-regulatory review hasn’t closed the window of opportunity to bring as much as $11 billion into the economy — our economy.

The federal government gave Pacific NorthWest LNG 190 legally-binding conditions tied to the approval of its LNG project on Lelu Island. We boiled the conditions down and found the following being the most notable: 1. Consultation with First Nations; 2. Transparency; 3. Air quality and GHGs; 4. Fish habitat and little brown bats; 5. Using modelling before construction; 6. Human health; 7. Bubble curtains; 8. Preserving cultural heritage; 9. Independent environment monitors; 10. Five years to build; For further details, please check out the story at: http://www.thenorthernview.com/news/395859061.html Prince Rupert’s Kevin Campbell, however, spells out the Government of Canada’s decision and the reaction in this issue of N2K. As well, AltaGas is still “Getting Closer”.

They announced a positive final investment decision on their proposed North Pine propane project.

As Shannon Lough reports, president and CEO of AltaGas David Harris said the great success over the quarter advanced their northeast B.C. strategy.

“North Pine is a key component of our energy value chain and brings forward a significant new and competitive option for producers in the Montney. Together with our proposed Ridley Island Propane Export Terminal, we can offer producers superb service to existing and new markets. As we move into the last couple months of the year we expect to hit our financial targets and bring our Ridley Island Propane Export Terminal investment decision to fruition,” he said.

Just more good news for Northwest B.C., and for that matter, the rest of Canada.

Todd Hamilton N2K Publisher publisher@thenorthernview.com

Out-of-area subscriptions now available e-mail: circulation@thenorthernview.com View our e-version for free at: www.thenorthernview.com/eeditions

NK

Volume 3 • Issue 7

2

November 2016

IN THIS ISSUE

YES ANSWER Federal government approves LNG project on Lelu Island

6

ALABAMA BOUND Vanderhoof-based company building sawmills in southern U.S. states 11

MOVING FORWARD AltaGas announces positive Final Investment Decision on propane facility 8

ON TOP Fort St. James helicopter company remains a leader in Northwest B.C. 12

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CANADA SAYS

YES

CTV screenshot

Feds approve Pacific NorthWest LNG project with conditions

T

By Kevin Campbell

he Canadian federal government has approved the $11.4 billion Pacific NorthWest LNG export terminal on Lelu Island to proceed, with 190 legally-binding conditions to be met.

In a much-anticipated decision that has taken the duration of the past three years, Environment Minister Catherine McKenna and fellow cabinet ministers announced the approval late September in Richmond.

As part of the conditions, officials from the Lax Kw’alaams and Metlakatla First Nations, as well as those from the Tsimshian Environmental Stewardship Authority (TESA) will be placed on a committee with the government overseeing the environmental impacts of the construction and operation stages of the terminal.

The federal cabinet met earlier Tuesday morning and Environment Minister Catherine McKenna, Natural Resources Minister Jim Carr and Fisheries Minister Dominic LeBlanc flew to Richmond that same day.

Pacific NorthWest LNG (PNW LNG), an energy consortium led by Malaysian-based company Petronas, will now conduct a “total

6

review” of the project before tabling it to the project’s partners for a final investment decision (FID).

Late Tuesday, Pacific NorthWest LNG president Adnan Zainal Abidin said that the proponent will now conduct the review over the “coming months.”

“After a rigorous and comprehensive regulatory process, Pacific NorthWest LNG is pleased that the Government of Canada has issued an environmental decision statement to our project,” said Abidin in a statement.

“This is a significant milestone for Pacific NorthWest LNG and our shareholders. PNW would like to thank area First Nations, stakeholders, local residents and all others involved in the regulatory process for their constructive participation in the science-based environmental assessment. Moving forward, PNW LNG and our shareholders will conduct a total project review over the coming months prior to announcing next steps for the project.”

Continued on Page 7

N2K

Lelu Island at low tide / artist rendering Port of Prince Rupert manager of corporate communications Michael Gurney said that the organization is happy the federal government has reached its conclusion.

“The Port of Prince Rupert is pleased that a clear decision has been reached about the future of the Pacific NorthWest LNG terminal development following an environmental review that was extensive and thorough.”

Gurney added that the Port will continue engaging those occupying Lelu Island on a solution for those protesting the decision.

“We recognize even moreso now that dialogue and communications with the occupiers on the island are of critical importance and we will continue, as we have done over the past year, to extend an invitation to those involved in that occupation to participate in open communication with the port authority.”

In June, PNW LNG submitted the last of its scientific findings at the request of the Canadian Environmental Assessment Agency (CEAA), and the agency stated that the information was adequate to answer any remaining questions it had of the project.

A 4.3 million tonne annual cap on carbon dioxide emissions was also placed on the project, 900,000 tonnes less than originally proposed by PNW LNG. McKenna, in her announcement, said that the government

N2K

“B.C. has as much natural gas stored in the northeast as Alberta does.”

- Christy Clark stands by the science collected by CEAA, which she said is the most intensive research on environmental effects that has ever been performed in the area.

B.C. Premier Christy Clark proclaimed the announcement as a victory for the middle class in B.C. and for Canadians country-wide Tuesday.

“B.C. has as much natural gas stored in the northeast as Alberta does,” said Premier Clark, adding that demand coming from China, Japan and India will be a factor in Petronas’ FID. “We want to make sure we get our natural gas, the cleanest from anywhere in the world, to market.”

-N2K-

7

ALTAGAS M OV I N G FORWARD

AltaGas makes final investment decision on propane facility linked to export terminal near Prince Rupert

A

ltaGas has given the green light to its propane facility near Fort St. John, which will feed a proposed propane export terminal on Ridley Island near Prince Rupert.

After the company released its strong quarterly results late last month, a final investment decision was announced for the North Pine Facility. President and CEO of AltaGas David Harris said the great success over the quarter advanced their northeast B.C. strategy.

“North Pine is a key component of our energy value chain and brings forward a significant new and competitive option for producers in the Montney. Together with our proposed Ridley Island Propane Export Terminal, we can offer producers superb service to existing and new markets. As we move into the last couple months of the year we expect to hit our financial targets and bring our Ridley Island Propane Export Terminal investment decision to fruition,” he said.

In September, another piece of the puzzle came together in the northeastern B.C. strategy when the Townsend Facility began its commercial operations for processing natural gas liquids. The $430 million project is located 100 km north of Fort St. John and was finished ahead of schedule and cost less than expected. The Townsend Facility will feed into North Pine

8

By Shannon Lough pipelines.

On Oct. 18 the company received a 25-year licence from the National Energy Board to export up to 1.35 million tonnes of propane a year from the Ridley Island. The proposed Ridley Island export terminal is estimated to cost $400 to $500 million and will ship 1.2 million tonnes of propane per year.

The third quarter saw earnings before interest, taxes, depreciation and amortization at $176 million, which is a 41 per cent increase over the 2015 third quarter. In the results, AltaGas states it has successfully completed the public comment period for the environmental evaluation document for the proposed Ridley Island Propane export terminal.

The board of directors approved of the North Pine Facility on Oct. 19, which is 40 kilometres northwest of Fort St. John and will be able to access the CN rail network to transport the gas to the proposed Ridley Island export terminal. A final investment decision for the $125 to $135 million project near Fort St. John is just one more piece in the puzzle to link the company with its North Coast prospects.

Last month, the mayor of Port Edward was given a peak of what the Ridley Island terminal may look like during a recent visit to AltaGas’ propane terminal in Ferndale, Washington.

In early October, the company gave Mayor Dave MacDonald and his CAO Bob Payette the company a tour of the facility.

The mayor told District of Port Edward council he was impressed that the burners were not very high off the ground and the pilot light wasn’t always on. There will only be one tank on the Ridley Island site as opposed to two in Ferndale. “It was good to hear some of that stuff,” the mayor said. “It was a clean site.”

While they were on the site, the workers were offloading the propane, which is mostly transported by truck. The proposed facility on the North Coast would use mainly rail transport.

“AltaGas was pleased to provide a tour of the Ferndale Terminal operated by AltaGas near Ferndale, Washington,” said Dan Woznow, vice president of energy exports at AltaGas. “The tour provided a first-hand opportunity for the Mayor and CAO to see a LPG export terminal that will be similar to the one AltaGas is proposing to build on Ridley Island.”

The Port Edward mayor has also travelled to Malaysia to see Petronas’ LNG operations. He was surprised he was able to drive everywhere they went on the tour as opposed to what he experienced in Malaysia where he had to walk the area.

“Overall, it was a good visit and it was only an hour, at the

N2K

“We expect to hit our financial targets and bring our Ridley Island ... investment decision to fruition.”

- David Harris most, out of Vancouver,” he said.

Councillor James Brown asked about the noise level. There was one place full of fans for the cooling process and the mayor was told they would be using newer fans but, “if you were here out to the end of our lot you couldn’t hear it. It’s just when you’re driving by,” the mayor responded. No odd smells either.

They were very receptive to our visit, the mayor said.

-N2K-

9

BOUNDARY

T

EXPANSION

By Flavio Nienow

he Regional District of Bulkley-Nechako (RDBN) is moving forward with a proposed expansion of its boundaries, which is expected to bring more profits to the entire region.

Bill Miller, RDBN chair, explained that expanding the regional district’s boundaries would create more potential for revenue from mining and forestry. In addition, he said this change would make the RDBN’s administrative boundaries more in line with some of the provincial administrative boundaries.

“It’s important for us to match our administrative boundaries the best we can,” said Miller. “If those boundaries match, it makes it much easier from an administrative point of view; if the timber supply area and our boundary are the same, then we deal with only one office.”

“Right now there are overlaps all over the place; the province has done that to us a lot,” he continued. “We have for instance, in our regional district, two hospital districts — the Stuart-Nechako Regional Hospital District and the North West Regional Hospital District.”

“We don’t want to take areas that only are going to be a burden on our tax payers,” he added. “It has to make sense, so that’s what we started to do.”

Miller and other RDBN directors met with provincial representatives during the Union of B.C. Municipalities convention in Victoria in September to further those discussions.

The provincial government and RDBN staff are currently collecting data and assessing which areas could be added to the regional district.

“We’re at the stage now where we’ve asked both the ministry and our staff to start to draw those boundaries; [to see] how they make sense to our transportation corridors, our forest districts and cultural lines.”

According to Miller, consultation with First Nations will be a vital part of the process.

“It’s more than just consultation, they [First Nations] have to be a part of the decision-making process,” he said.

Although discussions are still preliminary, Miller said the plan is definitely moving forward.

“We don’t know where they [the boundaries] will be, but the boundaries are going to change,” he said. “The proposed timeline is to have this in place by the next local government election, two years from now.”

-N2K-

ALABAMA

BOUND

By Vivian Chui

V

anderhoof-based BID Group of Companies is advancing their foray into southern U.S. states with mechanical support from home.

Selected by Two Rivers Lumber Co. to deliver a turnkey sawmill complex in Demopolis, Alabama, BID will begin construction in early 2017, with mill production to start in the fall.

Successful execution of the project will require the combined efforts of the company’s facilities located across North America, as well as Two Rivers management.

“A large percentage of the handling equipment for this project will be manufactured and shipped from the Nechako Mechanical shop including, but not limited to, conveyors, decks, wave feeders, transfers, rolls, gates, belts, fences, and sorters,” said Kane Kelly, BID’s vice-president of business optimization. “The Nechako Mechanical shop is an important strategic manufacturing location for the group due to the many efficiencies of this facility, especially in terms of the reliability and quality exemplified in both the team of employees and the finished products.

“This project will also benefit the many local suppliers that are an important component of all BID Group projects.”

The Demopolis sawmill will involve technologies designed, supplied, and installed by the BID Group including a Comact optimized log bucking system, a Comact saw line with profiling systems, and a fully-automated mill outfeed. The planer mill will be equipped with the Miller high speed planer, and the latest Comact GradExpert 2.0. Lumber drying will utilize continuous kiln technology provided through a Deltech dual-path kiln.

As part of BID’s expansion strategy into the southern states, the project with Two Rivers is the second sawmill BID will build in the region within a year. In February, BID was selected by Biewer Lumber to deliver a turnkey mill in Newton, Mississippi.

“The BID Group has built a reputation in Canada of executing large scale projects on-time and on-budget and this is now becoming known, and proven, to U.S. customers.”

BID’s original construction company was founded in 1983

by Brian, Ike, and David Fehr in partnership with Bob Derksen and Barrie Topper, starting with construction and fabrication work for Northern B.C. sawmills. The group now operates 11 facilities for forestry-related construction, mechanical, equipment, and transportation across the North America.

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-N2K-

STAYING ON TOP

F

By Barbara Latkowski

or Interior Helicopters in Fort St. James, it’s all about having a forward-thinking management approach along with making available the most modern fleet possible.

“We are always trying to improve in every way by being able to provide the best service to meet our client’s needs and with the newest helicopters,” said Butch Rogers, Operations Manager from Interior Helicopters.

Rogers has been with the company for four years and says there are many good things to come in the future.

“We are local and we continue to employ local people,” Rogers said. “And with our outstanding record for safety and reliability, things can only get better.”

Interior Helicopters began operation in 1996 by a father and son team, Grant and Westley Luck.

As second and third generation pilots, the Lucks brought their clients experiences of a lifetime by flying to the bush country across Northern B.C. and the Yukon.

In 2007, Interior Helicopters joined with Jetom Ventures Inc. to provide full service operation including helicopter charters with in-house maintenance facilities.

Interior Helicopters continued to grow over the years and it is now considered to be a leader in Northern B.C.’s helicopter industry.

“Access to remote areas is always in demand,” Rogers said.

“From moving drills for drilling companies for exploratory jobs in rural areas, timber cruising for the forestry industry and even firefighting, these and other services remain in high demand,”

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With more than 25,000 hours of combined flying in Northwestern B.C., Interior Helicopters’ pilots are rich in years of experience and knowledge.

Interior Helicopters provides services in: air ambulance, gas, oil, seismic, forestry, firefighting, mineral exploration, staking, seeding, fertilizing, cone picking, wildlife and resource management, infrared scanning, aerial photography, backcountry drop-offs and pick-ups, (for hikers or fishermen) and sightseeing tours including customized tour packages.

-N2K-

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NEW BEGINNINGS

W

By Devyn Ens

ith the retirement of Jack Oviatt, owner of J. Oviatt Contracting Ltd., his son Shaun Oviatt, owner of Daudet Creek Contracting, has discovered an opportunity to take on a new challenge.

Daudet Creek was started up by the younger Oviatt about 15 years ago, initially to do snow clearing and construction site preparation work. While those are still aspects of the company’s operations, they do a whole lot more than shovel snow now.

“Any type of roadworks, subdividing, all the underground utilities, sewer and water... aggregate sales, trucking and pulling heavy equipment,” listed Ian Pereira, who has been with the company for seven years.

“We’re maintaining that legacy of Oviatt contracting,” said Pereira.. “They’ve been a big company in this town for many years.”

“Our safety (protocols) have been upgraded amazingly in the last year, I’d say,” said Kayla Hume, who has worked with Daudet Creek for two years. Pereira added that the upgrading had been a challenge with the company growing so quickly in such a short period of time.

“Even when I started, there were 12 people who worked here,

and now we’re at over 50,” he said. “(Shaun) could’ve easily used the Oviatt name and just taken over, but he didn’t, he wanted that Daudet name on there,” said Pereira.

Hume said growth at the company was encouraged by the high demand of larger projects like the Kitimat Modernization Project at Rio Tinto.

“We’re pretty self-contained now for what type of work we do and the operations we provide, we’re very self-sufficient. It’s very rare that we have a subcontractor work for us,” said Pereira.

Continuing to be a part of the community is also something that’s important to the company brand.

“We do some volunteer hours and things like that,” said Hume, who added that keeping up community engagement is something that the younger Oviatt is keen to do, not like unlike his father.

With the company continuing work on a number of projects, including the Strawberry Meadows subdivision in Kitimat, they’re also looking to the future of development in the northwest region.

-N2K-

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FOUR-LANE FIBRE T

By Rod Link

elus has chosen Terrace in northwestern B.C. and Fort St. John, Dawson Creek and Charlie Lake in northeastern B.C. as the locations in the north this year where it is expanding its wide-ranging fibre optic service to homes, businesses and institutions.

That explains the large numbers of bucket trucks and traffic control people in the area right now.

The $28-million project in the northeast, which began earlier this year, and the $17-million which is now being spent in Terrace, are meant to connect more than 90 per cent of homes and businesses to the Telus fibre network should they choose to do so.

Fibre optic technology uses glass or plastic wire to carry far more information at a much faster speed than conventional copper wire and with far few chances of electromagnetic interference.

The technology isn’t new and already connects communities with Telus broadband network, which marketing director Andy Balser likened to a four-lane highway. By expanding the fibre network, that highway is coming right to homes and businesses, he says.

“It’s four lanes in and four lanes out,” he explained, speaking of the virtually unlimited capability of fibre to move information, which means upload speed equals download speed. It’s called the symmetrical internet and the capability of upload equalling download is growing in importance, he said.

Continued on Page 15

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“With 4K TV, the latest now in high definition TV, people using YouTube and more smartphones, upload speed is very important,” Balser said.

Installing fibre now is not only important for today but puts Telus in the position of meeting communications demands for the next several generations of people and of technology, he added.

Telus expects its install project to be finished here by the end of the year with service to begin this year and into 2017.

He said Telus chose Terrace as the first city in the northwest to run fibre to homes and businesses because of its long connection to the city.

The company began the project this spring by having homes and businesses sign consent orders to have fibre run at no charge to their locations.

Telus official Liz Sauve said there’s no obligation for people to sign up for the Telus service.

“What we’re anticipating is what the connected home will be like in the next 10-15 years. TV is changing. There are now connected fridges, stoves,” said Sauve. “All these things are connected to the internet and we need to build that capacity now.”

Even if current occupiers of houses and businesses do not wish to sign up through Telus for fibre service, Sauve said that having that option should appeal to the next owners of homes and business locations.

“Our crews are working their way through town as quickly as they can, and we anticipate the majority of homes will be connected by the end of the year. The first area will be in service

by November, and other areas will continue to receive service into early 2017,” said Sauve.

“As much as possible, we prioritize hiring local contractors

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and businesses to support our fibre builds in communities across the province. On an average day, we have more than 40 flaggers, aerial linemen, splicers and other crew members working throughout Terrace. We have support from two local flagging companies and three local subcontractors.”

The amount Telus spent in the north is part of more than $1 billion in installations this year throughout the province and part of an overall $4.5 billion fibre project through to 2019.

But even though Telus is spending heavily on fibre, don’t expect to see copper wire connections disappear anytime soon.

“We will still have some legacy services [for customers] through copper but over time they will transition to fibre,” said Balser.

Other telecommunications customers have also been active.

City of Prince Rupert-owned CityWest built its fibre line between Prince Rupert and Terrace in 2006, a project that cost $8.2 million and part of a $30 million capital expenditure package for Terrace, Thornhill and Kitimat in the past decade.

It does not yet run fibre lines to homes or businesses and company officials say it focuses on meeting customer needs within the technology it offers.

Fibre optic service is also available to the Nass Valley through an arrangement negotiated between the Nisga’a Lisims Government and B.C. Hydro. That arrangement is part of the overall economics benefit agreement between the two parties tied to the construction of the Northwest Transmission Line which runs north of Terrace to the Nass Valley and beyond.

In this instance, fibre optic service to the Nass is provided as part of BC Hydro’s own internal data system that was installed on the transmission line’s towers.

-N2K-

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