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RISK ANALYSIS of BRITISH COLUMBIA NATURAL GAS PROJECTS: ENVIRONMENTAL and INDIGENOUS PEOPLES ISSUES Ii Canadian Energy Research Institute

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RISK ANALYSIS of BRITISH COLUMBIA NATURAL GAS PROJECTS: ENVIRONMENTAL and INDIGENOUS PEOPLES ISSUES Ii Canadian Energy Research Institute Study No. 161 November 2016 CANADIAN RISK ANALYSIS OF BRITISH COLUMBIA NATURAL ENERGY GAS PROJECTS: ENVIRONMENTAL AND RESEARCH INSTITUTE INDIGENOUS PEOPLES ISSUES Canadian Energy Research Institute | Relevant • Independent • Objective RISK ANALYSIS OF BRITISH COLUMBIA NATURAL GAS PROJECTS: ENVIRONMENTAL AND INDIGENOUS PEOPLES ISSUES ii Canadian Energy Research Institute Risk Analysis of British Columbia Natural Gas Projects: Environmental and Indigenous Peoples Issues Authors: Anna Vypovska Laura Johnson ISBN 1-927037-45-4 Copyright © Canadian Energy Research Institute, 2016 Sections of this study may be reproduced in magazines and newspapers with acknowledgement to the Canadian Energy Research Institute November 2016 Printed in Canada Front photo’s courtesy of istockphoto.com Acknowledgements: The authors of this report would like to extend their thanks and sincere gratitude to all CERI staff involved in the production and editing of the material, including but not limited to Allan Fogwill, Dinara Millington and Megan Murphy. The authors would also like to personally thank Miles Scott-Brown of Integrated Environments Ltd. and Dr. Stella Swanson of Swanson Environmental Strategies for providing helpful insights for this study. ABOUT THE CANADIAN ENERGY RESEARCH INSTITUTE The Canadian Energy Research Institute is an independent, not-for-profit research establishment created through a partnership of industry, academia, and government in 1975. Our mission is to provide relevant, independent, objective economic research in energy and environmental issues to benefit business, government, academia and the public. We strive to build bridges between scholarship and policy, combining the insights of scientific research, economic analysis, and practical experience. For more information about CERI, visit www.ceri.ca CANADIAN ENERGY RESEARCH INSTITUTE 150, 3512 – 33 Street NW Calgary, Alberta T2L 2A6 Email: [email protected] Phone: 403-282-1231 November 2016 Risk Analysis of British Columbia Natural Gas Projects: iii Environmental and Indigenous Peoples Issues Table of Contents LIST OF FIGURES ............................................................................................................. v LIST OF TABLES ............................................................................................................... vii ABBREVIATIONS AND DEFINITIONS ................................................................................. ix EXECUTIVE SUMMARY .................................................................................................... xiii CHAPTER 1 INTRODUCTION AND BACKGROUND ......................................................... 1 History of Natural Gas Development in British Columbia ................................................. 1 Regulatory Requirements to the Environmental Assessment Process for Natural Gas and LNG Projects in British Columbia ............................................................ 4 Provincial Environmental Assessment Process............................................................... 5 Federal Environmental Assessment Process .................................................................. 7 Research Objectives and Methodology ............................................................................. 10 Baseline Inventory of Environmental Assessment Applications for Major Natural Gas and LNG Projects in British Columbia ............................................................ 10 CHAPTER 2 MAJOR ENVIRONMENTAL ISSUES ASSOCIATED WITH NATURAL GAS AND LNG DEVELOPMENT IN BRITISH COLUMBIA ................................................ 25 The Practice of Environmental Assessment ...................................................................... 25 Potential Adverse Effects on the Environment Identified from Natural Gas and LNG Projects ....................................................................................................................... 30 Potential Cumulative Effects from Natural Gas and LNG Development ........................... 33 Significant Residual and Cumulative Adverse Effects on the Environmental Valued Components ........................................................................................................... 35 Increase in Greenhouse Gas Emissions .......................................................................... 35 Significant Adverse Effects on Terrestrial Wildlife ......................................................... 38 Significant Adverse Effects on Marine Mammals ........................................................... 43 Accidents and Malfunctions .............................................................................................. 44 Potential Accidents and Malfunctions ............................................................................ 44 Natural Gas Pipeline Incidents in British Columbia ........................................................ 46 CHAPTER 3 MAJOR INDIGENOUS PEOPLES ISSUES INFLUENCING NATURAL GAS AND LNG DEVELOPMENT IN BRITISH COLUMBIA ................................................ 51 Indigenous Peoples in British Columbia ............................................................................ 51 Canadian Aboriginal Law .................................................................................................... 56 Royal Proclamation (1763) .............................................................................................. 56 Section 35 of the Constitution Act .................................................................................. 56 History of Treaties in British Columbia ........................................................................... 56 Indigenous Peoples Rights and Legal Issues ................................................................... 59 Principles Articulated by the Supreme Court of Canada ................................................ 62 The Crown’s Duty to Consult with Indigenous Peoples within the Environmental Assessment Process .................................................................................. 63 November 2016 iv Canadian Energy Research Institute Potential Impacts on Indigenous Peoples Interests Identified in the Environmental Assessment Process .................................................................................. 64 Potential Adverse Effects on Aboriginal Interests .......................................................... 64 Potential Cumulative Impacts on Aboriginal Interests ................................................... 66 Significance of Potential Impacts to Aboriginal Interests ............................................... 67 Aboriginal Consultation and Engagement Issues ........................................................... 68 CHAPTER 4 KEY APPROACHES TO ADDRESS ENVIRONMENTAL AND INDIGENOUS PEOPLES ISSUES IDENTIFIED ON NATURAL GAS AND LNG PROJECTS .......................... 71 Mitigation Measures to Avoid or Reduce Potential Adverse Effects ................................ 71 Examples of Mitigation in Legally Binding Conditions of Environmental Assessment Certificates ..................................................................................................... 72 Measures to Mitigate the Increase of GHG Emissions from the Projects ...................... 75 Measures to Mitigate the Adverse Impacts of the Projects on Caribou and Caribou Habitat ............................................................................................................... 75 Measures to Mitigate the Cumulative Adverse Impacts of the Projects on Grizzly Bear ..................................................................................................................... 76 Measures to Mitigate the Adverse Impacts of the Projects on Marine Mammals ........ 76 Environmental Management Plans and Follow-up Programs ........................................... 76 Environmental Management Plans ................................................................................ 77 Follow-up Monitoring Programs ..................................................................................... 77 Accidents and Malfunctions Prevention ............................................................................ 78 Examples of Key Strategies and Progressive Programs Proposed by the Province........... 79 Greenhouse Gas Emissions Policies ................................................................................ 79 Caribou Stewardship Strategies ...................................................................................... 79 Prince Rupert Port Authority Marine Mammal Management Plan ............................... 80 Cumulative Effects Management Programs ................................................................... 80 Indigenous Peoples: Consultation and Engagement ........................................................ 81 Agreements with Indigenous Peoples ............................................................................... 85 LNG Environmental Stewardship Initiative ..................................................................... 85 Capacity Building Initiatives ............................................................................................ 86 Economic Benefit Agreements ....................................................................................... 87 CHAPTER 5 CONCLUSIONS .......................................................................................... 93 BIBLIOGRAPHY ..............................................................................................................
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