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Last Updated November 24, 2011
Foundation for a Sustainable Northern Future:
Report of the Joint Review Panel for the Mackenzie Gas Project (2009)
Acknowledgements..........................................................................................................................iv
Preface............................................................................................................................................v
Defined Terms..................................................................................................................................xxx
Abbreviations and Acronyms.............................................................................................................xxxii
CHAPTER 1 — Project Context
1.1 THE LAND.......................................................................................................................... 3
1.2 THE PEOPLE....................................................................................................................... 4
1.3 THE EVOLVING NORTH.......................................................................................................... 6
1.4 ASPIRATIONS AND APPREHENSIONS........................................................................................ 7
1.5 THE FUTURE AND SUSTAINABLE DEVELOPMENT......................................................................... 11
CHAPTER 2 — Project Description
2.1 INTRODUCTION................................................................................................................... 15
2.1.1 PROJECT OVERVIEW................................................................................................ 15
2.1.2 PROPONENTS......................................................................................................... 19
2.1.3 CAPACITY............................................................................................................. 19
2.1.4 PROJECT SCHEDULE................................................................................................. 20
2.2 MAJOR PROJECT COMPONENTS.............................................................................................. 24
2.2.1 ANCHOR FIELDS...................................................................................................... 24
2.2.2 MACKENZIE GATHERING SYSTEM................................................................................ 30
2.2.3 MACKENZIE VALLEY PIPELINE..................................................................................... 34
2.2.4 MACKENZIE GAS PROJECT FOOTPRINT......................................................................... 37
2.2.5 NORTHWEST ALBERTA FACILITIES.............................................................................. 37
2.2.6 PROJECT PRODUCTS................................................................................................ 38
2.3 PROJECT INFRASTRUCTURE................................................................................................... 38
2.3.1 CAMPS.................................................................................................................. 42
2.3.2 POTABLE WATER SUPPLY.......................................................................................... 42
2.3.3 BARGE LANDING SITES.............................................................................................. 42
2.3.4 STOCKPILE AND FUEL STORAGE SITES......................................................................... 42
2.3.5 ROADS................................................................................................................... 42
2.3.6 AIRSTRIPS AND HELIPADS......................................................................................... 42
2.3.7 BORROW SITES....................................................................................................... 42
2.4 LOGISTICS AND TRANSPORTATION.......................................................................................... 43
2.4.1 ESTIMATED CARGO WEIGHT...................................................................................... 43
2.4.2 CARGO TRANSPORTATION REQUIREMENTS.................................................................... 43
2.4.3 WORKFORCE TRANSPORTATION REQUIREMENTS............................................................ 43
2.5 EXPENDITURES AND WORKFORCE............................................................................................ 45
2.5.1 EXPENDITURES....................................................................................................... 45
2.5.2 WORKFORCE........................................................................................................... 46
2.6 ENVIRONMENTAL INPUTS AND OUTPUTS................................................................................... 47
2.6.1 INPUTS.................................................................................................................. 47
2.6.2 OUTPUTS............................................................................................................... 47
2.7 OPERATIONS AND MAINTENANCE............................................................................................ 48
2.8 DECOMMISSIONING, RECLAMATION AND ABANDONMENT.............................................................. 49
2.8.1 INFRASTRUCTURE DECOMMISSIONING.......................................................................... 49
2.8.2 FACILITIES AND EQUIPMENT DECOMMISSIONING........................................................... 49
2.8.3 NORTHWEST ALBERTA FACILITIES.............................................................................. 50
CHAPTER 3 — Potential Future Developments
3.1 THE PROJECT AS FILED WITH THE PANEL................................................................................. 53
3.2 EXPANSION CAPACITY SCENARIO OF THE MACKENZIE VALLEY PIPELINE......................................... 53
3.3 PROPONENTS’ HYPOTHETICAL EXPANSION CAPACITY SCENARIO................................................... 54
3.3.1 GLJ REPORT............................................................................................................ 54
3.3.2 OIL AND GAS MANAGEMENT DIRECTORATE................................................................... 54
3.3.3 PROPONENTS’ SCENARIO........................................................................................... 56
3.4 OTHER FUTURE SCENARIOS................................................................................................... 63
3.4.1 CANADIAN ARCTIC RESOURCES COMMITTEE’S SUBMISSION............................................. 63
3.4.2 OTHER VIEWS......................................................................................................... 68
3.4.3 “BASIN-OPENING” PROJECT....................................................................................... 68
3.5 SUMMARY.......................................................................................................................... 68
CHAPTER 4 — Review Process
4.1 INTRODUCTION................................................................................................................... 73
4.1.1 JOINT REVIEW PANEL AGREEMENT.............................................................................. 73
4.1.2 DOWNSTREAM REGULATORS...................................................................................... 74
4.2 ESTABLISHMENT OF THE JOINT REVIEW PANEL......................................................................... 76
4.2.1 APPOINTMENT OF THE PANEL.................................................................................... 76
4.2.2 APPOINTMENT UNDER SECTION 15 OF THE NATIONAL ENERGY BOARD ACT.......................... 76
4.2.3 INDEPENDENCE OF THE JOINT REVIEW PANEL............................................................... 76
4.3 MANDATE OF THE JOINT REVIEW PANEL.................................................................................. 76
4.3.1 GENERAL............................................................................................................... 76
4.3.2 STEPS PRIOR TO PUBLIC HEARING PHASE..................................................................... 77
4.4 PUBLIC HEARINGS................................................................................................................ 78
4.4.1 PUBLIC INPUT AND ACCESSIBILITY............................................................................. 78
4.4.2 HEARINGS SCHEDULE AND GUIDANCE........................................................................... 79
4.4.3 HEARINGS STATISTICS............................................................................................. 80
4.5 RULINGS ON MOTIONS.......................................................................................................... 80
4.6 SITE VISITS....................................................................................................................... 80
4.7 TIMING OF PANEL RECOMMENDATIONS.................................................................................... 80
4.7.1 GOVERNMENT RESPONSE.......................................................................................... 80
4.7.2 DECISION TO CONSTRUCT........................................................................................ 80
4.7.3 LEAVE TO OPEN...................................................................................................... 80
4.7.4 COMMENCEMENT OF CONSTRUCTION.......................................................................... 80
CHAPTER 5 — Approach and Methods
5.1 INTRODUCTION................................................................................................................... 83
5.2 SCOPING THE PROJECT......................................................................................................... 84
5.2.1 PROJECT NEED AND PURPOSE.................................................................................... 84
5.2.2 ALTERNATIVES....................................................................................................... 86
5.3 THE RECEIVING ENVIRONMENT............................................................................................... 88
5.3.1 IDENTIFICATION OF VALUED COMPONENTS.................................................................. 88
5.3.2 TEMPORAL AND SPATIAL BOUNDARIES........................................................................ 88
5.3.3 BASELINE INFORMATION........................................................................................... 89
5.3.4 TRADITIONAL KNOWLEDGE........................................................................................ 90
5.4 IMPACT ASSESSMENT.......................................................................................................... 92
5.4.1 IMPACT PREDICTION................................................................................................ 92
5.4.2 PROPONENTS’ COMMITMENTS, MITIGATION AND ENHANCEMENT....................................... 92
5.4.3 UNCERTAINTY AND THE PRECAUTIONARY APPROACH...................................................... 93
5.4.4 MONITORING AND ADAPTIVE MANAGEMENT.................................................................. 95
5.4.5 CUMULATIVE IMPACT ASSESSMENT............................................................................ 97
5.4.6 SIGNIFICANCE OF PROJECT IMPACTS.......................................................................... 99
5.4.7 THE PANEL’S SUSTAINABILITY ASSESSMENT FRAMEWORK.............................................. 103
CHAPTER 6 — Project Design, Construction and Operations
6.1 THE PROJECT AND THE ENVIRONMENT.....................................................................................109
6.1.1 THE DISTINCTIVE NATURE OF THE PROJECT................................................................ 110
6.1.2 PREVIOUS ARCTIC OIL AND GAS PROJECTS.................................................................. 110
6.1.3 TERRAIN AND PERMAFROST CONDITIONS IN THE PROJECT REVIEW AREA........................... 111
6.1.4 PANEL VIEWS......................................................................................................... 113
6.2 PROPONENTS’ APPROACH TO PROJECT DESIGN, CONSTRUCTION AND OPERATIONS...........................114
6.2.1 PROPONENTS’ INFORMATION BASE............................................................................. 114
6.2.2 PROPONENTS’ DESIGN APPROACH............................................................................... 116
6.2.3 DESIGNING FOR GEOHAZARDS................................................................................... 118
6.2.4 ROUTING, SITING AND PROJECT FOOTPRINT................................................................ 119
6.2.5 PANEL VIEWS........................................................................................................ 120
6.3 GENERAL DESIGN FOR THERMAL IMPACTS............................................................................... 122
6.3.1 RIGHT-OF-WAY AND SITE PREPARATION AND RECLAMATION METHODS............................ 123
6.3.2 PIPELINE OPERATING TEMPERATURE REGIME............................................................... 126
6.3.3 CLIMATE CHANGE................................................................................................... 128
6.3.4 PANEL VIEWS........................................................................................................ 130
6.4 THAW SETTLEMENT............................................................................................................ 131
6.4.1 PROPONENTS’ VIEWS.............................................................................................. 131
6.4.2 PARTICIPANTS’ VIEWS............................................................................................ 134
6.4.3 PANEL VIEWS........................................................................................................ 137
6.5 SLOPE STABILITY IN PERMAFROST........................................................................................ 138
6.5.1 PROPONENTS’ VIEWS.............................................................................................. 138
6.5.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS.......................................................... 141
6.5.3 PANEL VIEWS........................................................................................................ 141
6.6 FROST HEAVE, FROST BULBS AND GROUNDWATER FLOW ........................................................... 142
6.6.1 PROPONENTS’ VIEWS.............................................................................................. 143
6.6.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS.......................................................... 145
6.6.3 PANEL VIEWS........................................................................................................ 145
6.7 WATERCOURSE CROSSINGS.................................................................................................. 146
6.7.1 EXISTING CONDITIONS............................................................................................ 146
6.7.2 PROPONENTS’ VIEWS.............................................................................................. 146
6.7.3 PARTICIPANTS’ VIEWS............................................................................................ 149
6.7.4 PANEL VIEWS........................................................................................................ 150
6.8 OTHER GEOHAZARDS.......................................................................................................... 151
6.8.1 SEISMICITY.......................................................................................................... 151
6.8.2 ACID-ROCK DRAINAGE............................................................................................. 151
6.8.3 KARST TOPOGRAPHY.............................................................................................. 152
6.8.4 PANEL VIEWS....................................................................................................... 152
6.9 ANCHOR FIELDS................................................................................................................ 152
6.9.1 PERMAFROST AT DEPTH......................................................................................... 152
6.9.2 SHALLOW GAS...................................................................................................... 154
6.9.3 SEA-LEVEL CHANGE, STORM SURGES AND SUBMERGENCE.............................................. 155
6.9.4 EXTRACTION-INDUCED SUBSIDENCE.......................................................................... 156
6.10 OVERALL PANEL VIEWS AND RECOMMENDATIONS................................................................... 163
CHAPTER 7 — Accidents, Malfunctions and Emergency Response
7.1 INTRODUCTION..................................................................................................................171
7.2 EXISTING CONDITIONS........................................................................................................172
7.2.1 NATIONAL ENERGY BOARD....................................................................................... 172
7.2.2 GOVERNMENT OF THE NORTHWEST TERRITORIES........................................................ 172
7.2.3 ENVIRONMENT CANADA.......................................................................................... 173
7.2.4 INDIAN AND NORTHERN AFFAIRS CANADA.................................................................. 173
7.2.5 TRANSPORT CANADA............................................................................................. 173
7.2.6 LAND AND WATER BOARDS...................................................................................... 173
7.2.7 THE NORTHWEST TERRITORIES/NUNAVUT SPILLS WORKING AGREEMENT........................... 173
7.2.8 AQUATIC SPILLS................................................................................................... 174
7.2.9 TRANSPORTATION OF DANGEROUS GOODS................................................................. 176
7.3 PROPONENTS’ VIEWS...........................................................................................................176
7.3.1 KEY PLANNING DOCUMENTS..................................................................................... 176
7.3.2 ACCIDENT AND MALFUNCTION SCENARIOS................................................................. 178
7.3.3 PROPONENTS’ MITIGATION MEASURES AND COMMITMENTS........................................... 181
7.4 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS..................................................................... 184
7.4.1 ANCHOR FIELDS AND PIPELINES............................................................................... 184
7.4.2 TRANSPORTATION................................................................................................. 185
7.4.3 HAZARDOUS MATERIALS MANAGEMENT..................................................................... 188
7.4.4 GENERAL CONCERNS.............................................................................................. 188
7.5 PANEL VIEWS AND RECOMMENDATIONS................................................................................. 190
7.5.1 SPILL REPORTING.................................................................................................. 191
7.5.2 SPILL CONTINGENCY PLANNING............................................................................... 191
7.5.3 TRANSPORT AND STORAGE OF DANGEROUS GOODS..................................................... 192
7.5.4 HAZARDOUS MATERIALS AND DANGEROUS GOODS MANAGEMENT PLANNING..................... 192
7.5.5 ENVIRONMENTAL EMERGENCY PLANS........................................................................ 192
7.5.6 RESPONSE AND DESIGN FOR EARTHQUAKES............................................................... 193
7.5.7 EMERGENCY PREPAREDNESS AND RESPONSE PLAN....................................................... 193
7.5.8 LOCAL SPILL RESPONSE CAPACITY........................................................................... 194
7.5.9 GOVERNMENT PREPAREDNESS................................................................................. 194
CHAPTER 8 — Air and Water Quality
8.1 INTRODUCTION................................................................................................................ 197
8.2 AIR QUALITY.................................................................................................................... 197
8.2.1 EXISTING CONDITIONS.......................................................................................... 197
8.2.2 PROPONENTS’ VIEWS............................................................................................. 198
8.2.3 PARTICIPANTS’ VIEWS........................................................................................... 201
8.2.4 PANEL VIEWS AND RECOMMENDATIONS..................................................................... 202
8.3 WASTE INCINERATION........................................................................................................ 204
8.3.1 PROPONENTS’ VIEWS............................................................................................. 204
8.3.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS......................................................... 205
8.3.3 PANEL VIEWS AND RECOMMENDATION....................................................................... 205
8.4 GREENHOUSE GAS EMISSIONS.............................................................................................. 207
8.4.1 PROPONENTS’ VIEWS............................................................................................. 207
8.4.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS......................................................... 209
8.4.3 PANEL VIEWS AND RECOMMENDATIONS..................................................................... 214
8.5 WATER QUALITY AND DRINKING W ATER................................................................................ 219
8.5.1 PROPONENTS’ VIEWS............................................................................................. 219
8.5.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS......................................................... 221
8.5.3 PANEL VIEWS....................................................................................................... 222
CHAPTER 9 — Fish and Marine Mammals
9.1 INTRODUCTION................................................................................................................. 225
9.2 PROPONENTS’ APPROACH TO IMPACT ASSESSMENT................................................................. 226
9.2.1 INTRODUCTION..................................................................................................... 226
9.2.2 BASELINE CONDITIONS........................................................................................... 226
9.2.3 PANEL VIEWS....................................................................................................... 228
9.3 WATERCOURSE CROSSINGS................................................................................................. 228
9.3.1 EXISTING CONDITIONS.......................................................................................... 228
9.3.2 PROPONENTS’ VIEWS............................................................................................. 229
9.3.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS......................................................... 231
9.3.4 PANEL VIEWS AND RECOMMENDATIONS..................................................................... 234
9.4 FROST BULBS AND AUFEIS.................................................................................................. 235
9.4.1 PROPONENTS’ VIEWS............................................................................................. 235
9.4.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS......................................................... 236
9.4.3 PANEL VIEWS AND RECOMMENDATION...................................................................... 237
9.5 HABITAT COMPENSATION................................................................................................... 238
9.5.1 PROPONENTS’ VIEWS............................................................................................ 238
9.5.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS........................................................ 238
9.5.3 PANEL VIEWS AND RECOMMENDATIONS.................................................................... 239
9.6 BARGE TRAFFIC AND LANDING SITE CONSTRUCTION................................................................ 240
9.6.1 PROPONENTS’ VIEWS............................................................................................ 240
9.6.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS........................................................ 242
9.6.3 PANEL VIEWS AND RECOMMENDATION...................................................................... 244
9.7 MARINE AND RIVER DREDGING, AND DISPOSAL AT SEA............................................................. 245
9.7.1 PROPONENTS’ VIEWS............................................................................................. 245
9.7.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS......................................................... 248
9.7.3 PANEL VIEWS AND RECOMMENDATIONS..................................................................... 250
9.8 MARINE MAMMALS............................................................................................................. 250
9.8.1 EXISTING CONDITIONS........................................................................................... 250
9.8.2 PROPONENTS’ VIEWS............................................................................................. 251
9.8.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS......................................................... 253
9.8.4 PANEL VIEWS AND RECOMMENDATIONS..................................................................... 256
9.9 BALLAST WATER DISPOSAL................................................................................................. 258
9.9.1 PROPONENTS’ VIEWS............................................................................................. 258
9.9.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS......................................................... 258
9.9.3 PANEL VIEWS AND RECOMMENDATIONS..................................................................... 259
9.10 WATER WITHDRAWAL AND DISCHARGE................................................................................. 260
9.10.1 PROPONENTS’ VIEWS............................................................................................ 260
9.10.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS........................................................ 262
9.10.3 PANEL VIEWS...................................................................................................... 262
9.11 FISHERIES MANAGEMENT................................................................................................... 262
9.11.1 PROPONENTS’ VIEWS............................................................................................ 262
9.11.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS........................................................ 262
9.11.3 PANEL VIEWS AND RECOMMENDATION..................................................................... 264
CHAPTER 10 — Wildlife
10.1 INTRODUCTION............................................................................................................... 269
10.2 IMPACT ASSESSMENT METHODOLOGY................................................................................. 270
10.2.1 PROPONENTS’ ASSESSMENT METHODS.................................................................... 270
10.2.2 PANEL VIEWS AND RECOMMENDATION..................................................................... 272
10.3 SPECIES AT RISK..............................................................................................................274
10.3.1 ASSESSMENT REQUIREMENTS................................................................................ 274
10.3.2 SELECTION OF SPECIES FOR ASSESSMENT.............................................................. 276
10.3.3 ASSESSMENT METHODS....................................................................................... 277
10.3.4 IMPACT ASSESSMENT.......................................................................................... 278
10.3.5 CUMULATIVE IMPACT ASSESSMENT........................................................................ 278
10.3.6 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 279
10.3.7 PANEL VIEWS AND RECOMMENDATIONS................................................................... 279
10.4 WOO DLAND (BOREAL) CARIBOU......................................................................................... 282
10.4.1 EXISTING CONDITIONS......................................................................................... 282
10.4.2 PROPONENTS’ VIEWS........................................................................................... 286
10.4.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 287
10.4.4 PANEL VIEWS AND RECOMMENDATION..................................................................... 292
10.5 BARREN GROUND CARIBOU................................................................................................. 295
10.5.1 EXISTING CONDITIONS......................................................................................... 295
10.5.2 PROPONENTS’ VIEWS........................................................................................... 296
10.5.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 297
10.5.4 PANEL VIEWS AND RECOMMENDATIONS................................................................... 299
10.6 GRIZZLY BEAR.................................................................................................................301
10.6.1 EXISTING CONDITIONS........................................................................................ 301
10.6.2 PROPONENTS’ VIEWS........................................................................................... 302
10.6.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 303
10.6.4 PANEL VIEWS AND RECOMMENDATIONS.................................................................. 304
10.7 POLAR BEAR................................................................................................................... 304
10.7.1 EXISTING CONDITIONS........................................................................................ 304
10.7.2 PROPONENTS’ VIEWS........................................................................................... 305
10.7.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 305
10.7.4 PANEL VIEWS AND RECOMMENDATIONS................................................................... 306
10.8 MOOSE......................................................................................................................... 306
10.8.1 EXISTING CONDITIONS........................................................................................ 306
10.8.2 PROPONENTS’ VIEWS.......................................................................................... 307
10.8.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 308
10.8.4 PANEL VIEWS.................................................................................................... 308
10.9 OTHER WILDLIFE............................................................................................................ 308
10.9.1 WOLVERINE....................................................................................................... 308
10.9.2 OTHER SPECIES AT RISK...................................................................................... 310
10.10 BIRDS: MACKENZIE VALLEY............................................................................................. 313
10.10.1 PEREGRINE FALCON........................................................................................... 313
10.10.2 PROTECTED AREAS FOR BIRDS IN THE MACKENZIE VALLEY....................................... 316
10.11 BIRDS: MACKENZIE DELTA...............................................................................................317
10.11.1 EXISTING CONDITIONS...................................................................................... 317
10.11.2 PROPONENTS’ VIEWS........................................................................................ 318
10.11.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS.................................................... 318
10.11.4 PANEL VIEWS AND RECOMMENDATIONS................................................................ 323