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Memorial of the Investors

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Memorial of the Investors IN THE MATTER OF AN ARBITRATION UNDER CHAPTER 11 OF THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE UNCITRAL ARBITRATION RULES WILLIAM RALPH CLAYTON, WILLIAM RICHARD CLAYTON, DOUGLAS CLAYTON, DANIEL CLAYTON and BILCON OF DELAWARE Investors v. GOVERNMENT OF CANADA Respondent MEMORIAL OF THE INVESTORS Appleton & Associates International Lawyers 77 Bloor St West Suite 1800 Toronto, Ontario M5S 1M2 Tel.: (416) 966-8800 Fax: (416) 966-8801 Counsel for the Investors Memorial of the Investors Re: Bilcon of Delaware et. al. PART ONE: OVERVIEW .......................................................................................................................... 1 CHRONOLOGY OF THE DECEIT .............................................................................................................. 6 PART TWO: STATEMENT OF FACTS ....................................................................................................... 7 I. THE PARTIES .............................................................................................................................. 8 A. The Investors .................................................................................................................. 8 B. The Investment ............................................................................................................ 10 i. Canadian Business Operations ..................................................................... 11 ii. Encouragement to Invest in Canada ............................................................ 12 C. Government of Canada ................................................................................................ 14 D. Government of Nova Scotia ......................................................................................... 14 II. THE ENVIRONMENTAL ASSESSMENT REGIME IN CANADA .................................................... 15 A. Permit application and environmental assessment under Nova Scotia law ............... 15 B. The Canadian Environmental Assessment Act ............................................................. 15 i. Triggers Under the CEAA .............................................................................. 16 ii. The Canadian Environmental Assessment Agency....................................... 16 iii. The Minister of the Environment ................................................................. 17 iv. Types of Environmental Assessments .......................................................... 18 v. Scoping of the Environmental Assessment .................................................. 19 vi. Statutory Factors to be considered in an Environmental Assessment ........ 19 C. Review Panel Process ................................................................................................... 22 i. Decision Making ........................................................................................... 22 D. CEAA Guidelines and Policies ....................................................................................... 23 i. Public Involvement ....................................................................................... 23 ii. Objective and enumerated environmental effects ...................................... 23 iii. Framework for guiding responsible authorities in determining whether an environmental effect constitutes significant adverse environmental effects ...................................................................................................................... 24 iv. Mitigating Measures ..................................................................................... 25 v. Cumulative effects ........................................................................................ 25 III. THE REVIEW PROCESS IMPOSED ON THE INVESTMENT ......................................................... 27 A. Federal Assessment ..................................................................................................... 27 i. The Blasting Test ........................................................................................... 27 ii. The Navigable Waters Application ............................................................... 28 Memorial of the Investors Re: Bilcon of Delaware et. al. iii. Demand for Project Revision ........................................................................ 30 B. The DFO as Responsible Authority ............................................................................... 32 i. Improper Use of Discretion .......................................................................... 33 ii. Political Considerations ................................................................................ 34 C. Referral to Joint Review Panel ..................................................................................... 35 i. CEA Agency Opposition to a Joint Review Panel .......................................... 35 ii. Referral of the Whites Point Quarry to a Joint Review Panel Assessment .. 36 iii. Project Partnership a Casualty of Canada’s Measures ................................. 38 D. Joint Review Panel Assessment ................................................................................... 40 i. The Selection of the Panel Members ........................................................... 40 ii. Terms of Reference and Panel Members ..................................................... 41 iii. Environmental Impact Statement Guidelines .............................................. 43 iv. Traditional Knowledge .................................................................................. 45 v. Sustainable Development............................................................................. 46 vi. Ecosystem Approach .................................................................................... 46 vii. Cumulative Effects ........................................................................................ 46 viii. DFO’s Prevention of Test Blasting ................................................................ 47 ix. Guidelines for the Use of Explosives Near Fisheries Waters ........................ 49 x. Bilcon’s Environmental Impact Statement ................................................... 50 E. Public Support .............................................................................................................. 66 F. The Public Hearing ....................................................................................................... 69 i. Inadequate time ........................................................................................... 69 ii. Acceptance of Biased Statements ................................................................ 69 iii. Improper Considerations .............................................................................. 71 iv. Minister Thibault .......................................................................................... 76 v. Presentation of Elizabeth May ..................................................................... 77 vi. Post-Hearing Responses to the Panel .......................................................... 77 G. Joint Review Panel Report Issued ................................................................................ 77 i. Precaution and Adaptive Management ....................................................... 80 ii. “Community Core Values” ............................................................................ 81 iii. NAFTA Cumulative Effects ............................................................................ 82 iv. Use of ANFO ................................................................................................. 83 v. Factual Errors ................................................................................................ 84 H. Ministerial Abdication .................................................................................................. 85 i. Provincial Abdication .................................................................................... 85 ii. Federal Abdication ........................................................................................ 88 Memorial of the Investors Re: Bilcon of Delaware et. al. iii. Federal Response and Course of Action Following the Joint Review Panel Report ........................................................................................................... 89 PART THREE: SUBSTANTIVE LEGAL ISSUES ......................................................................................... 92 I. INTERNATIONAL LAW STANDARD OF TREATMENT ................................................................ 92 A. The Protection of Customary International Law .......................................................... 93 B. Fair and Equitable Treatment ...................................................................................... 95 i. The Elements of Fair & Equitable Treatment ............................................... 95 ii. Fairness and Reasonableness ....................................................................... 97 iii. Treatment Free from Arbitrary Conduct .................................................... 102 iv. Treatment Free from Discriminatory Conduct ........................................... 106 v. Treatment Free from Political Motivation ................................................. 108 vi. Legitimate Expectations ............................................................................. 109 vii. Procedural Fairness ...................................................................................
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