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SIMPLY THE BEST Huckleberry’s Huckleberry’s Mine Rescue Crew Mine Rescue Crew Family Affair Burns Lake’s Burns Lake’s Industrial Transformers Industrial Transformers That’s Avanti Kitsault mine scheduled Kitsault mine scheduled to re-open in 2017 to re-open in 2017 Project Caribou Vanderhoof mining company Vanderhoof mining company does it the right way does it the right way Beetle Battle Fort St. James project Fort St. James project turns devastation into energy turns devastation into energy AUGUST 2014 • VOL. 1, ISSUE 5
Transcript
Page 1: N2K - August 2014 N2K

SIMPLY THE

BEST Huckleberry’sHuckleberry’s Mine Rescue CrewMine Rescue Crew

Family AffairBurns Lake’s Burns Lake’s Industrial TransformersIndustrial Transformers

That’s AvantiKitsault mine scheduled Kitsault mine scheduled to re-open in 2017to re-open in 2017

Project CaribouVanderhoof mining company Vanderhoof mining company

does it the right waydoes it the right way

Beetle BattleFort St. James project Fort St. James project

turns devastation into energyturns devastation into energy

AUGUST 2014 • VOL. 1, ISSUE 5

Page 2: N2K - August 2014 N2K

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Page 3: N2K - August 2014 N2K
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While the mainstream media continue to bang away at industry by focusing its soundbites and headlines on the stories that divide and seemingly on the loudest person behind a megaphone, at N2K we

continue to discover the untold stories of industry.Invariably, these untold stories highlight a burgeoning Northwest B.C. sector

that not only promises vast social and economic benefi ts, but one that is already delivering.

Th e economic benefi ts are obvious and the social benefi ts are powerful. Unfortunately, these social benefi ts are oft en relegated to the status of footnotes with major media or are simply ignored.

Our mission is to inform Northwest B.C. readers and leaders about the incredibly positive stories tied to industry that continue to come from this region. At the same time we hope to illuminate and educate those who live, work and play here of the stunning changes we are seeing in corporate culture, industry best practices and innovation.

In this, our fi ft h issue, N2K’s Quinn Bender reports on a Burns Lake company that is the epitome of a family success story. Industrial Transformers — a heavy duty repair shop that has carved out a niche for itself in Northwest B.C. — was created by and for family.

Rod Link tells us about Freda Campbell’s wonderful story on how she battled distances and circumstance to obtain her business degree and land a top job in her traditional lands at the new Red Chris Mine.

Jessie Cole discovered that there is life aft er the pine beetle — green life. Cole fi led a story on the Fort St. James Green Energy Project that is taking waste and beetle-destroyed wood to produce energy with immense environmental benefi ts.

Bender again found another untold story about how New Gold, quietly and with little fanfare, went well beyond what was necessary to protect mountain caribou. And Ryan Jensen tells us about what the Northwest has at the ready should the unforeseen occur in his article about B.C.’s best mine rescue team at the Huckleberry mine near Houston.

We hope you enjoy this issue of N2K, because you do Need To Know the real stories of Northwest B.C. industry.

Todd HamiltonN2K [email protected]

PublisherTodd Hamilton

Editor-in-ChiefShaun Thomas

Prince RupertEd Evans, Sales

Lisa Thomas, SalesQuinn Bender, ReporterMartina Perry, Reporter

TerraceRod Link, Editor

Brian Lindenbach, Sales Bert Husband, SalesErin Bowker, Sales

KitimatLouisa Genzale, Sales Cameron Orr, Editor

SmithersGrant Harris, SalesNick Briere, Sales

Ryan Jensen, EditorHouston

Mary-Anne Ruiter, SalesJackie Lieuwen, Reporter

Burns LakeLaura Blackwell, Sales Steven Maisey, EditorFort St. James/

VanderhoofPam Berger, Sales

Jessie Cole, Reporter

N2K CONTACT INFO:Vanderhoof • 250-567-9258Fort St. James • 250-567-9258Burns Lake • 250-692-7526Houston • 250-845-2890Smithers • 250-847-3266Terrace • 250-638-7283Kitimat • 250-632-6144Prince Rupert • 250-624-8088

N2K is a Black Press publication mailed or delivered by carrier to 33,500 homes and businesses

throughout Northwest B.C.

Our Head Office is located at 737 Fraser Street,

Prince Rupert, B.C., V8J 1R1250-624-8088

Fax: 250-624-8085

View our e-version for free at:

www.thenorthernview.com/eeditions

Out-of-area subscriptions now availablee-mail: [email protected]

Page 5: N2K - August 2014 N2K

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IN THIS ISSUEVolume 1 • Issue 5 August 2014

FAMILY AFFAIRBurns Lake’s Transformers 6

BIG TIME PLAYERThe 411 onKitimat’s 101 10

TANKER TRUTHWhat makes LNG tankers safer 12

THAT’S AVANTINew life for Kitsault mine 13

DOORS OPENPort Edward ready for industry 16

COVER STORYHuckleberry’s rescue team 17

CARIBOU CARENewgold goes above and beyond 20

GREEN LININGGood comes from bad beetle 23

ECO SPANNINGCleaning up in the culvert 25

LONG COMMUTEDease Lake to Business Degree 27

TERRACE ALFALFAManufacturing for China 29

BRIGHT FUTUREBill Lomax 31

BALANCE STRIKINGPort Authority 33

LAND OR SEAWoodside Energy 36

CAREERS 38

Page 6: N2K - August 2014 N2K

A FAMILY AFFAIR

Industrial Transformers

Timing, skill and ambition are of course necessary ingredients for an overnight success story. But if you ask Kathy Waters, there’s one more element

needed to simply make it worthwhile.“We’re all family. We’re very proud of what we’ve

accomplished and I don’t think we would have done it if we weren’t all family.”

Twenty years ago Kathy’s husband Doug Waters made the easy decision of hiring his son, Ron, and nephews, Richard and Matt, straight from high school to work as mechanics at his Burns Lake contracting company. Two decades later, that decision would provide the foundation for one of the Northwest’s more exciting business developments. Where family businesses are

concerned, Industrial Transformers, a full-service heavy duty repair shop, is a prime example of how these unique relationships can foster success.

A family of partners

For almost 15 years the three young mechanics worked alongside Doug and Kathy, perfecting their trade and coming into sync with one another’s work habits and ethics. Early on, the family crew understood they worked well together.Th ey hatched a fragile idea to open a heavy-duty repair shop as equal owners.

See Page 7

By Quinn Bender

6

Page 7: N2K - August 2014 N2K

N2K PROFILE • INDUSTRIAL TRANSFORMERS FAMILY

“And then we all decided we missed each other.”- Kathy Waters

7

Th ey surveyed some properties but, due to side businesses and timing, the idea never took off . Fortunately for them, the timing would present itself 20 years later with no barriers to prevent the idea from forming into instant, unimaginable success.

Until then, one by one, Ron, Richard and Matt, now in their 30s, would venture out on their own and earn their own reputations as reliable and talented independent professionals.

“And then we all decided we missed each other,” Kathy said.

“We worked together so well, we wanted to come back together. Th is was the dream we had many, many, many years ago.”

It would be a partnership of eight couples, one family: Doug and Kathy Waters, Richard and Wendy Wainwright, Matt and Amy Wainwright, and Ron and Heather Waters.

Seizing the opportunityFor more than a decade heavy machinery operators in

the Burns Lake area had been forced to travel out of town for repairs, either 80 kilometres west to Houston or 130 kilometres east to Vanderhoof.

Th e Waters and Wainwrights understood the opportunity this presented in a region brimming with logging trucks and industrial activity.

What followed next happened fast. When Lakes District

Maintenance (LDM) moved out of its industrial park location to a new facility, Richard rushed over and secured the site. Renovations were made. Tools were brought in. An opening date was set.

“Because LDM already had this building, they had already put in all the pollution controls, there was two overhead cranes, between everyone we already had most of the tools. We’ve put in a lot of work to build offi ce space, but everything really had just fallen into place,” Kathy said.

All that was needed was a name. As fans of the Transformers fi lm franchise they settled on the fun but evocative image. As one of their fi rst projects, the family prides itself on the transformation of a 290 Volvo Dirt Excavator a customer felt was too light for a mine ready machine. Th ey merged it with the undercarriage of a 320 low mileage, rigged-out heavy duty excavator. Th e customer was ecstatic.

If the challenges of a new business is attracting customers, the opposite was true for Industrial Transformers.

“We were very pleasantly surprised at the need,” Kathy said.

“We knew it existed, we knew it was real, but we didn’t know that three days before we even opened our doors people were already rolling in. We hit the ground running. It was crazy how busy we were.”

See Page 8

Page 8: N2K - August 2014 N2K

8

Th e powerhouse shop now employs 14 people and includes a broad range services: Repair and maintenance with Red-Seal Certifi ed mechanics, service trucks for on site work, low-bed service to transport equipment to the shop, heavy duty services from routine maintenance to large-scale repair projects and even a shop to install stereos. Th ere’s also a commercial vehicle inspection service with authorized inspectors through the CVSE Branch, a busy welding shop, a line boring machine to straighten axles and a plasma cutter that will fabricate parts straight from images.

“Th e plasma cutter is a huge opportunity for us, because otherwise it’s something you would have to send far far away to have done,” Kathy said.

“Th ere’s not too many service shops that have that. We’re pretty aggressive.”

A shop full of independent-thinkersBecause each family member is formally self-employed,

the company collective has an inherent streak of progressive, competitive thinking, despite being the only full service repair shop in the area.

Th anks to Doug’s 35-year background in logging, the company also provides construction service and site preparation. A project management division rounds off the services.

Since opening its doors, the company has picked up several major maintenance programs for outfi ts including

Arrow, CN and the Red Chris Mine. A full-time mechanic is also stationed at the mine site.

Industrial Transformers will undoubtedly be a fi xture on the Burns Lake landscape for a very long time. It’s a legacy that could not have been made were it not for one family’s resolve to work as a team, and work well.

“As my husband and I are kind of the seniors here, we were going into semi-retirement. We wouldn’t have thrown ourselves back into this if we weren’t working with family. Th is was because we could all help each other. And we did. My son and my nephews, who we care about very much, if we could do something that would help put them on the map we would. All together we made a fantastic team.”

N2K PROFILE • INDUSTRIAL TRANSFORMERS FAMILY

“We wouldn’t have thrown ourselves back into this if we weren’t working with family.”

- Kathy Waters

Page 9: N2K - August 2014 N2K

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Page 10: N2K - August 2014 N2K

It’s easy to look ahead at the wealth of business opportunities rising in the Northwest, but one Kitimat company is fi nding it wiser to fi rst look back—at its

origins, reputation and loyalties—and never lose sight of that as they move forward.

“You always want to remember that these new opportunities, these industrial opportunities, have a fi nite timeframe,” said Mark Harnadek, construction manager with 101 Industries.

“But we’ve seen throughout the province and the world that that timeframe can become quite short if a client decides they want to stop a project. We’ve been in business an awful long time, and we know that in order to maintain a good, strong business [we must] maintain what got us to where we are.”

101 Industries opened its doors in 1968 as a sheet metal, plumbing and roofi ng contractor. Th e name was a patriotic nod to 101 years of confederation. In 2014 there’s no quick way to describe the comprehensive list of services 101 now provides. With loyal clientele and calculated expansion they’ve reimagined the company to be a full-service contractor for the industrial, residential and mechanical sectors. Th ey handle roofi ng, structural steel and heavy industrial installation, as well as sheet metal, cladding systems, HVAC — the list goes on.

“We do sink repairs for the little old lady down the street, mechanical installations for the large industrial players and everything in between,” said general manager Th om Meier.

101 founder Willie Meier never gave up one market to reach into one more lucrative. Th at philosophy, to build then respect client loyalty, has helped 101 become one of the Northwest’s largest contractors. And its current management team still employs the founding philosophy while reaching in to the new economy. With a fi rm foundation in Kitimat, 101’s most signifi cant expansion to date isn’t held together with nuts and bolts, but with

paperwork and protocol.  Working with multinational companies comes with

a stringent criteria for how a contractor can interact on a technical basis, be it either documentation, quality assurance, or quality control. 101 has spent the past two years learning this process and adapting a division to meet the opportunity head on. For a local contractor that doesn’t travel the world in tandem with the multinationals, it’s a huge achievement.

“We’ve created some really good documentation that we can rely on, and lean on, to give a good record that satisfi es the most discerning and technical client,” said Meier.

“We’ve elevated our ability to provide quality assurances to an international level. And I can say quite assuredly that there isn’t another contractor locally, that I’m aware of, that can give that same kind of QAQC [quality assurance and quality control] capacity.”

By all means, 101 is a successful residential and commercial service-sector contractor—that is still the foundation of the business. But now, as an industrial specialist too, the company has seen nothing but growth since adapting to the protocols of the region’s largest projects.  

“We’re very happy and very proud that we can stick-handle with these guys,” Harnadek said.

“We don’t shy away from new opportunities and new growth.”

“We’re very happy and very proud that we can

stick-handle with these guys.”

- Mark Harnadek

10

BIG BOYSPlaying with the

By Quinn Bender

KITIMAT’S 101 INDUSTRIES: looking back to move forward

Page 11: N2K - August 2014 N2K

It’s easy as a company to make a promise that your project will be built safely, and with high regard for the environment.

Standing by our promises

This space is a collaborative promotional venture by LNG Canada and N2K Editor Cameron Orr

People are understandably concerned regarding impacts to local ways of life during construction. The company notes that their eventual LNG Canada worker accommodation village will be built in Kitimat’s industrial area and will have a number of services to reduce impacts to the main community.

Community safety during the project’s operation is another concern that has been voiced. LNG Canada is committed to meeting the strictest regulatory and operational standards for safety, and they’ll develop emergency response plans with local agencies.

The company also says they’ll develop a comprehensive housing strategy to help minimize impacts on housing in the community, which will include an easily expandable worker accommodation village, working with local developers to see new housing stock created in the community equivalent to the project need, and supporting the Kitimat Housing Action Plan that is currently being led by the province.

On the matter of increased shipping through north coast waters, LNG Canada says the ships will meet international standards, and tugs will escort ships through inland waters. They’re also going through a voluntary technical review that seeks to identify recommendations to support safe shipping.

And not to worry that the marine environment will be left out when the project is formally reviewed; LNG Canada has included inland shipping routes as part of the Environmental Assessment scope.

The list above is but a taste of what they’ve heard and what’s being done about it! For more in depth information, visit them online at lngcanada.ca.

LNG Canada’s desire to hear from the community obviously doesn’t end with this consultation period; they welcome input from anyone with something to share. If you want to reach out your best bet is to e-mail them at [email protected].

Following through on that promise is the hard part, but one that all major projects must do, and LNG Canada is embracing that task with passion and energy.

From June 24 to July 15 this year, LNG Canada embarked on its latest round of community consultation, which began with a community open house which featured the unveiling of their 3D site model, and continued with a number of small group meetings.

“Since we were last out in the community, we have been working to develop updated project information, including the design of the facility, ways we can work together to address concerns we have heard, and identify additional areas for community input,” said Susannah Pierce, LNG Canada’s External Affairs Director. “What we gathered during this most recent consultation period will go a long way towards helping us further develop our plans.”

LNG Canada hopes to build their liquefi ed natural gas facility in Kitimat, but plans like these take many years of studies and engagements with stakeholders. It will need input from the town and area to make sure they get it right.

It is important to the company that it hears the hopes, concerns and ideas of the local community as it prepares its application for an Environmental Assessment Certifi cate. The assessment, conducted by the provincial government through the B.C. Environmental Assessment Offi ce (EAO), is a crucial step as they work towards their end goal of building a liquefi ed natural gas facility in Kitimat. In the company’s proposed timelines, the Environmental Assessment application is expected to be complete sometime in the fall of 2014.

But to date, what has LNG Canada heard exactly, while talking to the community? A number of things.

Onlookers surround LNG Canada’s 3D project site model during an open house at their community information centre.“What we gathered

during this most recent consultation period will go a long way towards helping us further develop our plans.

Page 12: N2K - August 2014 N2K

They say looks can be deceiving and that could well be the

case for the tankers that are proposed to carry liquefi ed natural gas (LNG) from the North Coast to markets in Asia.

You wouldn’t know it to look at the metal exterior of the ship, but there’s a lot of distance between the water and the product being carried aboard the massive vessels.

“For an LNG carrier, there will be three layers of barrier between the product and the sea. Double-hull carriers have two complete layers of watertight hull surface, with the inner hull typically four metres (13 feet) inside the outer hull. Th e inner hull and outer hull is fi lled with ballast water as required for stability purposes,” explained Pacifi c NorthWest LNG senior corporate aff airs advisor Spencer Sproule.

But the double-hull feature is just one of the safety features of modern LNG tankers, both while at sea and at the terminal.

“Our vessels have double hulls and primary and secondary cargo containment systems, as well as proven onboard safety systems that include gas detection and low temperature monitoring, heat and fi re detection and emergency response systems,” said BG Canada vice-president Madeline Whitaker.

“Th e safety design will also ensure that the loading operation will stop automatically for each storage compartment of the carrier before reaching the maximum allowed level. In the unlikely event that a spill occurs due to a storage compartment overfi lling, an alarm will be triggered and the automated system will take over to shut down the operation. Any LNG remaining in the loading system will be contained until loading resumes,” noted Sproule.

Before docking at any port in the province, LNG tankers are boarded by a local B.C. marine pilot who gives detailed information on navigation as the ship approaches shore and meets control tugs at a point the pilot deems additional vessel

control necessary. “Under the positive control of tugs and pilot, and

with additional guidance provided by the Marine Traffi c Control System, the vessel is maneuvered at very low speeds into or away from its berth,” said Sproule, adding the captains themselves have to go through a rigorous program before taking the helm of any ship.

“In addition to the marine certifi cations required to operate a commercial vessel, LNG carrier offi cers require training and certifi cation unique to handling and carrying LNG as cargo. LNG offi cers must pass succeeding levels of certifi cation and cannot progress to the next level without meeting specifi c time periods of experience.”

Th e result of this attention to detail has given liquefi ed natural gas tankers a safety record beyond reproach.

“LNG carriers hold one of the best safety records in the shipping industry. According to the Centre for Liquefi ed Natural Gas, LNG carriers have made more than 135,000 voyages without major accidents, safety or security problems, either in port or at sea,” said Whitaker.

“LNG has been safely transported to markets around the world in LNG carriers for over 50 years. Th ere have been more than 71,000 loaded voyages without loss of cargo through either accident or equipment failure, and more than 151,000 million miles traveled without a major incident,” noted Sproule.

You can’t judge a book by its cover and the record of safe transport and use of enhanced technology show there is more to LNG tankers than meets the eye.

12

Don’t judge the book by the cover

By Shaun Th omas

LNG TANKERS: Backups for the backups

“LNG carriers hold one of the best safety records in

the shipping industry.”

- Madeline Whitaker

Page 13: N2K - August 2014 N2K

• Daily direct flights to Vancouver, Kelowna, Prince George and others

• Regular scheduled flights to BC’s mineral resource region along Highway 37, including Dease Lake and Bob Quinn

• 7,500 ft of paved runway

• New LPV approaches for lower landing limits

• Airport land available for lease and for sale

• Multiple airport-based helicopter and fixed wing charter operations

Your Way Up

www.smithers.ca/airport

Six years aft er it bought the site of a former molybdenum mine at Kitsault on the North Coast, Avanti Mining is working up to what it expects will

be full-on construction starting next year for a revived operation to open in 2017.

Th e work being done this summer and into fall, which follows intensive periods of drilling and exploration and thousands of pages of studies leading up to federal and provincial approvals and an economic benefi ts deal

signed with the Nisga’a Nation, consists of building a four kilometre road to where the mine’s planned main processing plant will be. As well, site clearing and preparation for an accommodation camp will be done.

“It’ll be of the same standard as a forest service road,” said Avanti chief operating offi cer Jeff Lowe of the gravelled access road, which will branch off of an existing forest service road.

See Page 14

“It’s great to be involved in a local project like this ...”

- Mike Edwards

Avanti

Moving Forward

By Rod Link

Page 14: N2K - August 2014 N2K

Work at the plant site includes expanding the current 50-person exploration camp to hold 150 people and preparing the ground for permanent facilities such as a kitchen, rec centre and offi ces, he said.

Road construction is being done through a contract let to Hobiyee and Bear Creek Contracting Joint Venture made up of Bear Creek Contracting of Terrace and Nisga’a-owned Hobiyee Management Ltd.

“We’d like to get as much of that work done as possible in order to put in those facilities when they are ready,” Lowe said.

Mike Edwards from Bear Creek described the road project as exciting in two respects.

“It’s great to be involved in a local project like this and we’re excited about our partnership with Hobbiye,” he said.

“Th ere’s good opportunity for training of Nisga’a people and we’re looking forward to being involved with local people.”

Th e work now underway is part of a multi-pronged plan for next year’s start of actual construction which, at the peak, will employ 700 people.

Avanti has hired AMEC, a mines engineering and consulting company, to prepare the detailed kind of drawings and specifi cations needed.

“Having that detail is pretty important as we start soliciting quotes from manufacturers,” said Lowe. “As we get into summer you can expect us to start signing some pretty major contracts.”

Th e objective, said Lowe, is to have “everything fi t together like a glove” starting next year.

Plant site earthworks and powerline work starts this fall.Avanti is forecasting a 14-year mine life employing 300

directly, but additional drilling at the location has offi cials optimistic of extending operations.

Concentrate produced at the site will be shipped south of Kitsault on a forest service road before turning east on the Cranberry Connector then south on Highway 37 South to Highway 16 at Kitwanga for the journey to port facilities at Vancouver.

From there it will be shipped to overseas smelters.Avanti already has an agreement with a German fi rm to

buy half of its production and an agreement with a major South Korean steel manufacturer to buy another 20 per cent of its production.

Th ose kinds of agreements go a long way in negotiations now underway for the company to line up the approximately $1 billion it needs in construction capital and then working capital during the mine’s early operating life before it can establish cash fl ow, says Avanti chief fi nancial offi cer Graham du Preez.

Th e off take agreement (50 per cent of production for the life of the mine) with German steelmaker Th yssen Krupp, comes with an additional advantage for Avanti.

Based on the amount of its product to be sold and consumed within Germany, the German federal government has agreed to provide a loan guarantee of up to $300 million of any debt undertaken to fi nance the project.

“For a junior resource company like Avanti, that makes a huge diff erence and gives the project credibility,” du Preez said of the fi nancial groundwork already in place.

“Th e Korean off -take agreement in particular makes the project attractive to Asian fi nanciers as well,” du Preez added.

Avanti’s Kitsault deposits also contain an amount of silver, leading to the possibility of selling that as one way of raising capital.

“Th ere are companies that would be willing to pay a percentage up front in this type of streaming transaction,” said du Preez.

Th e ability to sell a byproduct further adds to the kind of innovative fi nancing junior resource companies need to undertake to move their projects forward, he said.

A successful start-up by Avanti will be the third time molybdenum has been mined from Kitsault.

Th e second attempt in the late 1970s resulted in a town being built but production ceased in 1982 when the market for molybdenum, which is primarily used in steel alloys, collapsed.

“There’s good opportunity for training of Nisga’a people and we’re looking forward to

being involved with local people.”

- Mike EdwardsBear Creek Contracting

14

Page 15: N2K - August 2014 N2K

Todd Hamilton photo

Staky-ya Suecroft, 11, from W.L. McLeod Elementary School in Vanderhoof concentrates while using the excavator simulator as part of the New Gold mining education program. The simulator provides new learners with a hands-on experience and helps existing operators hone their skills. It can take many years for heavy equipment operators to develop a high level of profi ciency and simulators signifi cantly reduce learning time and help address B.C.’s shortage of skilled labour.

Page 16: N2K - August 2014 N2K

16

It may not seem that municipal leaders in a community with fewer than 600 people would be as busy as the larger cities of the Northwest, but don’t

tell that to the District of Port Edward.With the eyes of industry turning to the North

Coast as the closest Canadian gateway to Asia, a lot of those eyes are falling squarely on the small town approximately 15 kilometres from Prince Rupert. Some of that attention does have to do with Pacifi c NorthWest LNG’s proposed $11-billion LNG export terminal on Lelu Island, which falls within the district’s boundaries, but a critical component of that interest has to do with a vision created by mayor and council more than a decade ago.

“Many years ago we started going to the Crown to acquire land to be ready for industry, not knowing what industry would be coming. Th e thought was that if it were owned by the district, the process to begin operations could be faster,” explained Mayor Dave MacDonald, who is in his second term aft er serving many years as councillor.

“Th e whole concept was that we didn’t have much land for industry, so we went and started buying it.”

Much of the purchased land sat dormant and unused for years on end, but the plan has begun to pay off in spades. Th e district was singled out by Premier Christy Clark in her speech to the Union of British Columbia Municipalities in 2013 as proof of the potential of the developing LNG industry, and in the past year the municipality will have sold approximately $5.7 million in land.

“It makes us feel good that we are able to off er the land to industry, but it also shows the foresight of past councils as well as the council of the day,” said

MacDonald, noting the money is making a diff erence for the entire community.

“It’s not self-gratifying, it’s good for the people of Port Edward.”

Th at sense of being open for business extends beyond the sale of land. Th e district recently revised its Offi cial Community Plan to create more certainty for industry, passing a bylaw allowing parcels of land to be rezoned more quickly if the project is something short-term — such as worker accommodation or industry related to major project construction — and off ers its community centre for industry use at little to no costs.

“We have always been open to anyone using our community hall for open houses or for something that may be of interest to the members of the community ... with development, we know some are for and some are not, but we will always do what is best for the people of Port Edward,” said MacDonald.

For the District of Port Edward, foresight and an open-for-business attitude have created limitless possibilities.

“We have always said, ‘come talk to us’. If people have industry they want, we invite them to sit down and talk with us,” said MacDonald.

“The whole concept was that we didn’t have much land for industry, so we went and

started buying it.”

- Mayor Dave MacDonald

OpenFor BusinessFor Business

By Shaun Th omas

Port Edward: the little town that could ... and did

Page 17: N2K - August 2014 N2K

Providing safe and efficient service to Northwest BC for over 60 years

4265 Bristol Road, Terrace BC250-635-2430

Th e Huckleberry Mine Rescue Team won the Th ree Person First Aid component for the third year running at the 59th annual B.C. Mine Rescue Competition in Smithers.

Also for the third time, Huckleberry Mine coach Dwayne Allen was honoured as the Best Coach in the Th ree Person First Aid event.

Huckleberry Mine Rescue Team captain Cliff Yuen said the members felt a little bit more pressure performing in front of a home crowd, but never forgot the basics of teamwork and cooperation.

See Page 18

SIMPLY THE

BEST Huckleberry’sHuckleberry’s Mine Rescue CrewMine Rescue Crew

By Ryan Jensen

Page 18: N2K - August 2014 N2K

“It was a diff erent scenario than we were used to dealing with,” Yuen said.

“But we stayed focused and were able to get the task completed well.”

Because of a shutdown at Huckleberry Mine, the team only had fi ve days of practice compared to their usual schedule of 16 over the last year.

Teams compete in either surface or underground events.In underground mine rescue, teams are tested on skills

such as fi refi ghting, fi rst aid, obstacles and recovery. On the surface, judges mark teams in areas such as extrication, rope, fi re fi ghting and fi rst aid. Th e Th ree Person First Aid event has teams perform a demonstration of basic fi rst aid skills in a simulated emergency.

Teams qualifi ed for provincials at the zones, which happened at the Town of Smithers Public Works yard.

Al Hoff man, chief inspector of mines for B.C., said Smithers has been an important mining hub for many years and that it was a great location for the competition to be held. Sitting in the stands in between events, he said he continues to be impressed by the hard work put in by the teams.

“In order to have a sustainable industry, it has to be safe and part of that is having people who are highly-trained

and ready to attend to emergencies that do happen at mine sites occasionally,” Hoff man said.

“It’s a critical part of health and safety.”Minister of Energy and Mines Bill Bennett also watched

the provincial competition intently. Mining is a huge business in his Kootenay East riding and he said he knows the time and energy that goes into training these teams of professionals.

“I have fi ve coal mines in my own riding,” Bennett said. “I’m just so impressed with the dedication of these

teams. Th is is a big, big deal. Although mining is the safest heavy industry in Canada, there are enough accidents that these people know they need to take it seriously.

Partly because of its excellent safety record, Bennett said mining has an important place in the future of B.C.

“Mining is without a doubt one of the three most important industries in the province because of the high wages and because of how safe the jobs are,” he said.

“It’s an incredibly strong industry for communities and it’s a real community-building industry.

“It’s really an exciting industry where people get up in the morning and believe that they’re going to be successful.”

With hundreds of extra people in town for better part of a week, Colin Bateman, Smithers and District Chamber of Commerce president, said the event had a very positive eff ect on the community.

“[Th e economic impact] is pretty huge,” Bateman said. “Th e hotels were all fi lled and the restaurants and

downtown would have benefi ted too.”Smithers Mayor Taylor Bachrach said mining has always

been an important part of the landscape in the Bulkley Valley and he appreciated seeing fi rst hand how serious these companies take safety.

“Th ere are a lot of families in the Bulkley Valley who rely on mining and I think it’s reassuring to see how seriously the industry takes safety,” Bachrach said.

Smithers also hosts the B.C. Mine Rescue and Th ree Person First Aid Competition in 2015.

“I think for everyone involved, it gave us some ideas for next year of how we can do an even better job of rolling out the red carpet for the teams that are visiting,” said Bachrach.

“Next year is the 60th annual mine rescue competition and I think it’s an opportunity to really put on a big show and showcase our community.”

“In order to have a sustainable industry, it

has to be safe ...”

- Al HoffmanChief inspector of B.C. mines

18

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The federal government has approved Enbridge’s $6.8 billion Northern Gateway oil pipeline project subject to 209 Joint Review Panel conditions and fi ve

provincial conditions.“We’re pleased by their decision to accept the

recommendation of the Joint Review Panel — an approval that was grounded in sound science and fact. But we have much more work to do yet to meet the 209 JRP conditions and the fi ve conditions of B.C.,” Janet Holder, a Northern Gateway spokesperson, said.

Prime Minister Stephen Harper has emphasized that it is in the national interest to open a new pipeline route to the Pacifi c Ocean to carry Alberta oil sands bitumen and break the Canadian oil industry’s dependence on U.S. markets.

Th e decision followed Enbridge’s earlier pledges to improve the project’s safety with thicker steel and other measures along the 1,177-kilometre route.

Th e twin pipelines would carry 525,000 barrels per day of diluted bitumen from the oil sands west to Kitimat and send condensate to act as a thinning agent east to Alberta.

“We have much more work to do ...”- Janet Holder

Northern Gateway approved

By Todd Hamilton, with fi les from Tom Fletcher

A proposed liquefied natural gas facility located on Lelu Island within the District of Port Edward. Pacific NorthWest LNG would generate significant benefits for northwest British Columbia and the rest of the province.

• 330 new careers operating the facility• 300 local spin-off jobs• 4,500 construction jobs at peak activity• $1 billion in new annual revenue for local, provincial and

federal governments• Contracting opportunities for local and regional businesses

Visit www.PacificNorthWestLNG.com to learn more about the project and follow our progress.

Canadian Energy. Global Reach.

Source: Gatewayfacts.ca

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When New Gold acquired the Blackwater project from a junior mining company in 2011, they inherited the common task of safeguarding a

protected animal species. But in a response that’s anything but common, they more than met the minimum standard for the mountain caribou that use the area for their winter range.  

Th e Blackwater Project is a an open pit mine with an anticipated annual yield of 507,000 ounces of gold and 2,039,000 ounces of silver in its 17-year lifespan. It’s expected the project will require 1,500 workers during construction and 500 full time employees during production.

Th e mine site, located 110 kilometres southwest of Vanderhoof, falls squarely within the Omineca region,

which supports approximately 40 per cent of the world’s habitat of mountain caribou, the highest density anywhere on the planet. Because of their association with old forests and their vulnerability to the eff ects of human activity in their range, mountain caribou are a species of great concern to habitat managers worldwide.  

Needless to say, it caused New Gold some concern when they learned the site’s existing facilities, its tailings pond and the access road, all had the potential to interfere with the animals’ passage. It would all have to be moved.

“Th ere’s a large expense involved in doing these things, but at the end of the day it’s the right thing to do,” said Tim Bekhuys, director of environment and sustainability.

Although the mountain caribou winter range is protected

under the province’s Forest and Range Practices Act, New Gold went beyond the basic protections by fi rst establishing a Caribou Management Plan during the exploration phase. Th is ensured the two objectives — a prosperous mine and a safeguarded species — were intricately connected from the outset. It resulted in a workable plan to avoid all contact with the winter range during critical periods of caribou migration.

To do this, some major expenses would have to be made.  Aft er the tailings pond and facilities left by the junior mining company were relocated, the most signifi cant alteration, upon approval of the mine plan, will be to relocate the entire access road that currently cuts directly through the winter range. Th e road will be permanently

closed, as construction crews carve out new access 30 to 40 kilometres away.

See Page 22

20 21

“There’s a large expense ... but at the end of the day, it’s the

right thing to do.”

- Tim Bekhuys

By Quinn Bender • Photos by Lisa Th omas

Page 21: N2K - August 2014 N2K

“If you’re going to move these projects forward, you really have to do the right thing and be respectful of your neighbours.”

-Tim Bekhuys

22

“We were aware of the ungulate winter range when we acquired the mine, but what we heard in our consultations with the public is this is a matter of high importance,” Bekhuys said. “We’re committed to the communities and First Nations — we’re guests on their land. When we talked to the First Nations in particular, and a lot of the local people as well, this was a main area of concern. If the mine is to go ahead, we do it in a way that is respectful to our neighbours at the end of the day.”

New Gold has amended its development plans numerous times to compliment the natural balance of the

area. From its earliest site investigations, comprehensive environmental studies prompted the company to design a mine that could recycle its water and never discharge the eventual waste into the environment.

Th e discovery of a rare species of Whitebark Pine adjacent to the site will also be managed in a way to harvest seeds, cultivate saplings and propagate the species in the region.

“It’s really about recognition,” Bekhuys said. “If you’re going to move these projects forward you really have to do the right thing and be respectful of your neighbours.”

Page 22: N2K - August 2014 N2K

British Columbia’s mountain pine beetle infestation left vast swaths of northwest B.C. forests a desolate, decomposing wasteland.

Despite a massive eff ort to harvest as much of the damaged wood for traditional forest products before the trees began to rot, much of the wood was rendered useless.

However, energy companies Dalkia Canada and Fengate Capital Management, along with B.C. Hydro, have

embarked on a project to fi nd a silver — or rather a green — lining to the infestation.

Rather than allowing the beetle-ravaged wood to just rot and release methane — more than 20 times more damaging to the environment than C0

2 — the Fort St.

James Green Energy project will use the waste biomass to produce electricity.

See Page 24

“The plant will bring along with it a number of jobs to the area, which can’t be a bad thing.”

- Kevin Crook

BeetleBattle

Creating green energy from red devastation

By Jesse Cole

www.portedward.ca

The District of Port Edward, on the shores of Porpoise Harbour and surrounded by the majestic Coast Mountains, offer all the advantages of small town life within

close proximity to the major industrial development happening on the North Coast.

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Page 23: N2K - August 2014 N2K

24

Th e Fort St. James Green Energy project is designed to be a 40-megawatt facility that will consume up to 200,000 metric tonnes of biomass per year when fully operational. It is estimated to produce roughly 285,000 gigawatt-hours of electricity annually. Th e average household consumes a mere 11 gigawatt-hours per year, meaning the facility could power upward of 26,000 homes. BC Hydro will pay $115, slightly more than the North American average, per megawatt hour produced.

Th e facility will be fueled by three main forms of biomass: roadside debris, by-product from Fort St. James’ sawmill operations and, of course, pine-beetle aff ected forests. Th e project has been issued a 20-year harvest license for those sections of forest by the B.C. Ministry of Forests, Lands and Natural Resource operations.

Th e Fort St. James Green Energy Project’s facility will produce environmentally-friendly energy, using new emissions-reduction technologies, as well as burning fuels that are part of an already existing carbon-cycle, meaning they would not create any additional greenhouse gas (GHG) emissions.

Moreover, the facility will help to reduce overall GHG emissions by up to 95,000 metric tonnes per year through the closing of sawmill beehive burners and reduced roadside debris burning. GHG emissions will not be

the only area to see improvement from the project — air quality will also improve as beehive burners and roadside burning are eliminated and devastated areas of the forest

will be cleared to permit regrowth.

Th e facility has a price tag of $235 million, $175 million of which is being fi nanced by a series of banks, including the National Bank of Canada and the Bank of Tokyo-Mitsubishi, funding that was confi rmed in November 2013.

Economically, the construction and operation of the facility will add a substantial number of jobs for the region. Fort St. James District Councillor Kevin Crook said the plant will be a positive addition to the town and its economy.

“Th e plant will bring along with it a number of jobs to the area, which can’t be a bad thing,” he said.

Th e facility is expected to create 200-250 temporary jobs during the construction phase. Twenty-two permanent

operational jobs will be created, as well as 60 supply-chain positions ranging from logging operations to trucking and transport.

Th e Fort St. James Green Energy project plans to begin delivering energy by 2016 and is one of four in the province under a 30-year contract to sell energy to BC Hydro.

At a glance• 40 MW (megawatt) facility• Would create 22 permanent jobs and 60 permanent supply jobs• Would create 200-250 temporary construction jobs• Will produce 285,000 GWh per year• Will consume 200,000 metric tonnes of biomass, annually.• Will not increase GHG emissions • Has a 20-year harvest licence issued by B.C. Ministry of Forests, Lands and Natural Resource • BC Hydro will pay $115 per MWh• Reduce GHG emissions by 95,000 metric tonnes per year.

Page 24: N2K - August 2014 N2K

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Northern development oft en gets a critical review by environmental pundits, but one Prince George

waterworks company understands the folly of this belief, knowing full well developers and industry are not without a will to protect the environment in the course of doing business.

Northlands Water and Sewer Supplies are known for their staff ’s varied background experiences, allowing them to source hard-to-fi nd materials others struggle to locate.

Recently, Northlands brought in a product many had not heard of before, but is quickly becoming a highly-regarded standard in culvert replacements.

It’s called Enviro-Span. As B.C.’s major supplier, Northlands’

manager Nancy Taylor can personally attest to its rising popularity with industry, saying last year’s sales doubled over 2012 and this year’s are set to double again.

See Page 26

Page 25: N2K - August 2014 N2K

“People understand immediately how much better these are than old culverts. You just place it over a creek and it creates an arch without touching anything in the water. When you’re done in one location, you just pull it up and put it down again somewhere else,” said Taylor.

Enviro-Span is described as a reusable, next-generation bottomless culvert with a combination of simple design and new material technology. Th e non-metallic arch eliminates in-stream and stream-bank disturbance, reduces costs of shipping and installation due to its light weight and eliminates the risk of leached toxins. Its elbow modules allow a stream’s natural course to be followed without channel modifi cation. Best of all, no tools are needed for installation.

So far, Taylor has personally delivered Enviro Spans as far as Cranbrook, Port McNeill, Vernon and Mount Milligan.

“You can never know where they end up. Once you’re fi nished you just pull them out and move them to another site. It’s continual recycling of them, just going from one creek to another creek, to another road to another road.”

Th e economics make sense to most purchasers, but its application to environmental stewardship is undoubtedly the driving factor in its rapid popularity, Taylor says.

“People are looking for alternatives. Th ey don’t want to disturb these little creeks that have the little fi sh, the rainbow trout. Th ey want to go in as carefully as possible and they want to come out the same way without leaving a footprint,” she said.

Northlands has supplied everyone with this product

from small local outfi ts to some of the major players. Th ey are also gearing up for what many expect will be a boom time for the construction of various pipelines.

As they secure the permits to participate in those projects, the company is busy assisting various mines in the area.

Turner says the Mount Milligan mine has installed an Enviro-Span to reduce their footprint and two other mines, still in the exploration stage, have included them in their design plans.

More and more, government agencies, the general public and developers are demanding tools and technologies that better adhere to sustainable environment principles. With a drive to uphold sustainable practices in all of the services off ered at Northlands, this is one company that has seen its success grow as a result in the past, and likely into the future, as new products emerge.

“People understand immediately how much better

these are than old culverts.”

- Nancy TaylorNorthlands Water and Sewer

26

Page 26: N2K - August 2014 N2K

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Freda Campbell has one of the longest commutes around in order to attend classes tied to an MBA business program she’s taking at Simon Fraser

University.Several times a year, using points earned from a loyalty

program, the Dease Lake resident makes the trip by plane to the Lower Mainland.

Once in Vancouver, she sleeps on a cousin’s couch for the six-week long sessions at the university.

“At the beginning I really didn’t think I’d make it,” says Campbell. “But now I can see the end and I know I can do it.”

Campbell, a Tahltan, already had completed a business diploma program at Camosun College in Victoria and had enrolled in a Th ompson Rivers University distance education diploma program in leadership and organization.

But Campbell didn’t connect well with the inpersonal nature of the online communication required for that program.

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Page 27: N2K - August 2014 N2K

And she was determined to stay within the Tahltan territory to be close to her father, who has esophageal cancer.

Th en one day while in the Northern Lights College offi ce in Dease Lake, Campbell saw a poster advertising SFU’s executive MBA in Aboriginal Business and Leadership off ered through its Beedie School of Business.

“It looked appealing but I didn’t think I would qualify without a degree. I had to visit the college a few times that month and the poster kept catching my eye, so, I decided I would apply,” said Campbell.

“I really didn’t think I would get into it but I did. I am so glad I did, it was the perfect solution to my problem. I didn’t have to move out of the north to attend and I have a cohort and teachers that I interact with all the time, both in person and online. It really does seem suited for us northerners in remote communities.”

Campbell has just started a new job as the human resources coordinator and community liaison for Imperial Metals, which is in the fi nal stages of opening its Red Chris copper mine on Tahltan traditional territory.

“What I do is work with the company and the communities of Telegraph Creek, Dease Lake and Iskut,” she explained.

Aside from organizing meetings and keeping communications channels open between the company and the communities, the job includes connecting people within the territory with job opportunities.

Campbell has had plenty of experience in connecting mining companies with potential employees dating back to 1994 when she worked in the offi ce of the Eskay Creek gold mine, which was also located on Tahltan traditional territory.

Back then there weren’t the type of widespread economic benefi ts and agreements that exist now between major projects and aboriginal communities.

And the cyclical nature of the resource industry has Campbell convinced that the future for aboriginal people within large projects lies in training and skills development.

“Our communities really hurt when there were no mines,” said Campbell. “We had all that time to improve and prepare ourselves.”

“But all of the programs were attached to jobs. When there weren’t jobs, there was no training. Th at was a serious fl aw for aboriginal people ... what we had were people working seasonally and in the winter, they’d be on employment insurance.”

And now with the natural resource industry on the rise in Tahltan territory, Campbell sees a fi t between the traditional way of life and work.

“When you work two weeks on and two weeks off , you still have the time to practice the traditional ways. You can still hunt, you can still trap.”

“If you have a Monday to Friday job, doing that stuff on the weekends sometimes just doesn’t work.”

Campbell also believes industrial work can lend itself to the traditional ways of problem solving and being innovative.

“It’s not only possible for aboriginal people to make that shift , they can do that by innovation, particularly in the north,” she said.

“We are innovative. In the north you have to do things yourself. We come by that naturally. If you visit one of our fish camps, a hunting camp, you will see what we can do ... when I go out with my father I see how he looks at the world. He can do anything. There’s nothing that he can’t do. He’ll look at something and he’ll figure it out.”

“What is not natural for us is to do it for money. But if we can make that switch, we can be incredible entrepreneurs.”

“When you work two weeks on and two weeks off, you still have the time to practice the traditional ways. You can still hunt, you can still trap.”

- Freda Campbell

28

Page 28: N2K - August 2014 N2K

Plans by Chinese industrial interests to build an alfalfa protein extraction plant on land just purchased at the City of Terrace-owned Skeena Industrial

Development Park make total sense, says mayor Dave Pernarowski.

Pernarowski, who was front and centre in negotiations leading up to the land deal struck earlier this month with business interests from the Chinese economic development zone Qinhuangdao, said there is huge demand for alfalfa

for livestock and human consumption in China which is becoming increasingly health-conscious and affl uent.

“Th ere is a particular shortage in China for this type of protein and the Chinese government is also trying to restructure diet there to a certain degree, so there are school milk plans and the development of animal agriculture which brings the demand for this protein even higher,” said Pernarowski.

See Page 30

“I don’t think that many people would have imagined this would be the fi rst manufacturing facility they would see come...”

- Dave Pernarowski

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If the plans announced in July come together, construction of an alfalfa processing centre could start within three years on a 33-acre parcel at the industrial development park. Th e plant would supply 10,000 tonnes of feed-grade alfalfa protein annually for livestock and 2,000 tonnes of food grade alfalfa protein for human consumption for shipment to China.

Canada is a signifi cant exporter of alfalfa to countries such as Japan and Korea and those in the Middle East, however shipping the actual plant in unprocessed form to China has proven nearly impossible because of strict inspections for organic imports there.

By synthesizing the alfalfa into pure form using what Pernarowski calls “an intense process” it can then be shipped in powdered or condensed form from Prince Rupert.

Th is process involves pressing, liquid fi ltering and centrifuging leading to a protein in packaged form with another process that turns left over alfalfa into pellets.

Raw alfalfa would come from Saskatchewan, making Terrace the processing point of a value-added supply chain that would eventually end in China.

According to Ed Shaw, an Albertan forage broker and president of International Forage and Feed, in recent years many large forage companies have either been blacklisted or withdrawn from alfalfa feed export to China.

“Chinese regulations for the import of [alfalfa] hay is the most strict in the world. Th ey’ve got a platinum standard that far exceeds Japanese standards,” said Shaw. “If you ship

stuff over and it’s rejected you can’t ship it back. Th ere are major exporters in the U.S. who will no longer ship to China or will not start to. Th e risk is too big. We’re talking hundreds of millions of dollars of cost when it’s rejected.”

Pernarowski highlighted the fact that processing alfalfa for export here is an environmentally-friendly process.

“What we like about this particular manufacturing plant is that the protein is naturally pressed and extracted from the alfalfa leaf so there is no chemical synthesis and no chemical emissions, it’s just a small amount of waste water that comes from a plant like this and it is not harmful to the environment,” he said.

Th e proposed development also fi ts with Terrace’s inclinations as a community that has a long-standing agricultural tradition with a long growing season aff orded by the coastal climate, he said.

“I don’t think that many people would have imagined this would be the fi rst manufacturing facility they would see come to the Skeena Industrial Development Park,” the mayor said.

“As a community that really supports locally-grown food and agriculture we have an opportunity now considering our strategic location in Northwest British Columbia to start working really closely with agricultural-based products and this is a good example of that.”

Th e Terrace processing facility will employ 170 skilled workers, most of them slated to be local, said Pernarowski.

“Chinese regulations for the import of [alfalfa] hay is the

most strict in the world. They’ve got a platinum standard

that far exceeds Japanese standards.”

- Dave Pernarowski

30

Wikimedia photoPlans have been drawn up to construct a processing centre in Terrace for Alfalfa from Saskatchewan. The Terrace processing facility will be the fi rst manufacturing facility to come to the Skeena Industrial Development Park. Dave Pernarowski expects the facility will employ up to 170 skilled local workers.

Page 30: N2K - August 2014 N2K

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By Rod Link

A Gitxsan lawyer now working for a large private equity management fi rm in California sees a bright future for

northwestern First Nations.Bill Lomax, from the Hazeltons who

earned a Doctor of Laws at UBC as well as a Masters of Business Administration degree from Columbia University in New York, said resource development, including natural gas pipelines and liquefi ed natural gas plants, can provide the foundation for First Nations’ wealth creation.

See Page 32

Page 31: N2K - August 2014 N2K

Lomax said there’s a parallel between the northwest and American Indian tribes developing casino operations in and around populated areas.

Th ose tribes were able to take advantage of their close proximity to populated areas through casinos and other entertainment centres on their tribal lands.

Th e resulting success: A lucrative payback to those Indian tribes.

“You’ve won the geographic lottery. You can become very successful,” said Lomax of the new-found importance of the Northwest as a corridor for energy exports.

Lomax’s experience with capital built up by American Indian-owned casinos dates back years to when he worked on Wall Street.

And that experience has now translated into a position in San Francisco with the international private equity fi rm Capital Dynamics, which has $19 billion under management, some of it belonging to Indian tribes.

Lomax said the desire by companies to either develop on First Nation territory or, in the case of energy companies, seeking pipeline route access through First Nation territories off ers people in northwest B.C. the same opportunities for economic growth as those experienced by American Indian-owned casinos.

Th ere’s a growing movement within Gitxsan territory, for example, to take on greater roles, he added.

“It’s not just wanting a little money, a piece of the action, we’re poised to start taking real leadership roles,” he said.

Lomax is also a director of the Gitxsan Trust, the entity which owns the Gitxsan Development Corporation,

and said it is positioning itself to take advantage of opportunities within the 33,000 square kilometres claimed by the Gitxsan.

But Lomax did acknowledge that there are diff erences within the Gitxsan, as is the case with other First Nations, over what kind of economic development to pursue and who within the First Nation would have control.

Within Gitxsan territory those diff erences in the past have resulted in court cases and blockades of Gitxsan government offi ces.

And, recently, there’s been increased opposition in the territory to natural gas pipeline construction.

Lomax remains confi dent those diff erences will be ironed out.

“I think there’s a realization now that there’s a need for employment for young people,” he said.

“I believe the house chiefs are moving forward toward economic development and opportunities for young people and to have a revenue stream.”

Looking at the experiences of Indian tribes when political diff erences have surfaced even as they’ve grown economically, Lomax said cooler heads have prevailed.

“I’ve yet to see a tribe shut down a casino because they can’t get along,” he said.

Lomax does add, however, that income from resource development is fi nite and won’t go on forever.

It’s why Indian tribes who have made their initial gains from casinos are moving into other enterprises.

“Th at’s what they’re looking at, an economic life aft erward,” said Lomax.

“I’ve yet to see a tribe shut down a casino because

they can’t get along.”

- Bill Lomax

32

Wikimedia photoHazeltons’ Bill Lomax, a Gitxsan lawyer working for a large, private equity fi rm in California and director of the Gitxsan Trust, draws a parallel from the economic windfall American Indian tribes experienced after development of casino operations in the U.S. to the potential benefi ts for northwestern B.C. First Nations from energy company pipelines.

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Strikinga balance

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By Shaun Th omasFacing expansion that

includes more terminals and more tonnage in the years ahead, the Prince Rupert Port Authority (PRPA) is choosing to be proactive in ensuring the people of Prince Rupert are part of that growth.

Rather than simply hearing second or third-hand about the concerns of residents, the PRPA launched a community information forum that connects more than a dozen people directly with the decision makers at the port’s Atlin Terminal offi ces.

See Page 34

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“We’re very aware that the local community is much more scrutinizing of projects before us.”

- Shaun StevensonPrince Rupert Port Authority

34

“We’re very aware that the local community is much more scrutinizing of projects before us. If we look back a decade ago, our alignment with the City of Prince Rupert and our priority was about economic revival and economic vitality. But we know as we go forward, projects and opportunities for expansion are really going to be scrutinized with a mix of positive anticipation with the positive economic vitality they may contribute but also trepidation about potential social impacts and environmental impacts. I think the key to striking that balance is conversation,” said PRPA vice-president of trade development and public aff airs Shaun Stevenson.

“Th rough a public call for membership, there were 19 members of the community appointed to the community information forum working group who represented a wide variety of opinions and interest. It really underpins and ongoing dialogue with the community, regardless of what is before us, to understand how the port can better refl ect the values and interest of the community going forward.”

Th e 19-member group has been meeting monthly with port authority staff since February and they are the ones to drive the discussion, said Stevenson.

“We have given the members the latitude to choose

their own questions and topics for discussion, we have brought in experts both from within the port authority and among the port community broadly to respond to the topics of interest that have been identifi ed,” he said.

“Although relatively new, there has already been some very valuable two-way dialogue and discussion as it relates to both current operations and future considerations for the port authority ... we’re learning a lot within the port about what the interests, the values, the concerns and so forth are within the community, a lot more so than we have previously.”

Th e community information forum provides an avenue for discussing projects that is unique from the many open houses, email addresses and toll-free feedback lines currently in use, and Stevenson said it is that uniqueness that is making it a success for all parties involved.

“While we have many communications instruments available, whether it be through working with local media or through our website, newsletters and social media, we are always thinking of ways to strengthen that and really support an ongoing dialogue with the community,” he said.

“I think we have made great strides ... in anchoring that with formalized, structured engagement.”

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To build on land or on sea, that is the question facing Woodside Energy Ltd. as it begins feasibility work on its Grassy Point LNG terminal.

Th e Australian energy giant, which owns six of seven operational LNG trains in that country, is weighing its options for its 20-million ton export terminal across from the community of Lax Kw’alaams. Woodside indigenous aff airs manager John Litchfi eld said the onshore facility would be constructed in modules then brought to the site

by barge where a workforce would complete it, while the fl oating facility would be constructed overseas and brought over in one piece before being secured to the seafl oor with pilings.

“Th e footprint on the land is signifi cantly diff erent, and the way in which they would be built are signifi cantly diff erent,” he said, noting initial plans are for two LNG trains with plans for up to four once completely developed.

See Page 36

“The footprint on the land is signifi cantly different, and the way in which they would be built are signifi cantly different.”

- John Litchfi eld

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Aside from construction, another major diff erence between the two is the number of employees needed on Canadian soil during construction. According to Litchfi eld, there would be 1,000 workers during peak construction of the nearshore concept and 6,000 for the onshore option.

Regardless of which option is chosen, there would be a workforce of 300 needed to operate the plant over its expected 25-year lifespan.

Woodside LNG is currently working on the project description for the B.C. Environmental Assessment Offi ce, which is expected to be complete by August. Litchfi eld, along with corporate aff airs advisor Dayna Burns, were in the Northwest during the last week of June and said the trip was just the start of consultation on the project.

“We anticipate there needs to be a lot of consultation. It’s something we’re experienced in and welcome. We understand for Woodside to have a world class operation and profi table business, our social licence is one of the most

important things ... our experience in Australia is that maximizing employment opportunities and contracting opportunities with the local business and people, especially [Aboriginal] people, is critical to success,” he said, noting Woodside plans to go above and beyond for the terminal.

“Compliance is just our base position. We want to go beyond that and hope to build strong relationships.”

In January, Woodside signed an agreement with the provincial government to investigate the feasibility of building a LNG terminal within 693.6 hectares of land and 243.9 hectares of foreshore on the southern part of Grassy Point, across from Lax Kw’alaams. Litchfi eld said there is still much to be done in the three-year exploratory window granted by the agreement.

“Th ere are a lot of people working behind the scenes to make sure this investment is sound,” he said, adding market conditions will be a big factor in a fi nal investment decision.

“We anticipate there needs to be a lot of consultation. It’s something we’re experienced

in and welcome.”

- John Litchfi eldWoodside Energy

36

Don Craig/GCPE Graphic Design photoMinister of Natural Gas Development Rich Coleman, Lax Kw’alaams councillor Andrew Tait and Minister of Aboriginal Relations and Reconciliation John Rustad look on as Lax Kw’alaams Mayor Garry Reece and Premier Christy Clark sign a revenue sharing agreement for Grassy Point.

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In April, the Metlakatla and Lax Kw’alaams First Nations reached an LNG revenue sharing agreement with the provincial government.

Th e deal, announced by Premier Christy Clark, provides the two First nations with a portion of provincial government revenues from the sole proponent agreements reached for projects at Grassy Point proposed by Aurora LNG and Woodside LNG. In signing the agreements, both the Metlakatla and Lax Kw’alaams “signal their support for co-operating in respect of prospective LNG development at Grassy Point”, reads a media advisory from the province. Th e agreement also addresses Crown consultation and accommodation.

In making the announcement, Premier Clark said this agreement is a “major milestone” in developing B.C.’s LNG industry.

“Th is kind of cooperation and stability ... is going to play a crucial role in ensuring investors have the confi dence they need to make sure their fi nal investment moves forward,” she said, noting working together with First Nations is the only way the province will grow.

“[LNG] is an opportunity for every British Columbian, but more importantly it is an opportunity for First Nations to become full partners in the economic development

of the province and the country like never before ... agreements like this plant the seeds of prosperity for generations to come.”

While noting that protecting the environment was key to the band, both Metlakatla Chief Harold Leighton and Lax Kw’alaams Mayor Garry Reece said this agreement was extremely important to their people.

“We have come to a time when the status quo is no longer acceptable. Th is is an opportunity to build an economy and improve the social situation in Metlakatla and on the North Coast ... when you look at the benefi ts LNG can bring to the province and to the country, we want to be part of that,” said Leighton.

“We look at this as a huge opportunity for my people and it is going to change a lot for my people ... it means a lot,” added Mayor Reece.

Noting he hoped other First Nations would join in revenue sharing agreements, Leighton noted this agreement could be used as a blueprint in the province.

“Revenue sharing agreement like the one at Grassy Point are a good example of how First Nations communities can get early benefi ts from projects ... it is a good example of what can happen when you approach LNG in the spirit of partnership,” he said.

“This is an opportunity to build an economy and improve the social situation in Metlakatla and on the North Coast.”

- Chief Harold Leighton

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Trade connects us.Colin, Elaine and workers like them are building the Port of Prince Rupert’s Road, Rail, and Utility Corridor. Once the two-year construction project is complete, our gateway will move more cargo to overseas markets. That means jobs and prosperity for people in northern BC. Our terminals may be located in Prince Rupert, but we’re building connections clear across Canada—and the globe. Learn about the value of trade at www.rupertport.com/connections.

Page 39: N2K - August 2014 N2K

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