OTTAWA - The federal government has vetoed an Alberta gas project proposed by Cenovus Energy (TSX:CVE) because it would have threatened the habitat of 19 species at risk.
Cenovus Energy initially proposed to drill up to 1,275 shallow gas wells in the CFB Suffield national wildlife area, doubling the number of wells that were in place before the area was declared a protected zone.
It's the first decision Environment Minister Peter Kent has announced since the government passed new, streamlined, environmental assessment rules amid much controversy last spring.
"It's clear the adverse environmental effects that would be caused by the proposed project are significant," Kent said outside the House of Commons.
"As a result, I've decided that the project will not be granted federal approval to proceed. The environmental impacts are simply too great."
The project was assessed by a joint Ottawa-Alberta review panel that started its work in 2006 and released its findings in 2009. It then took three more years to determine how fragile the ecosystem of the area actually was, set up recovery plans for the species at risk and then make a final decision on the proposal.
"This decision is a clear indication of our government's commitment to strengthening environmental protection, which as you know, is a crucial pillar of our government's responsible, resource development plan," Kent said.
The decision proves the government's critics were wrong, said Kent, adding that the new process does not rubber-stamp resource development.
"Contrary to the claims of our critics, responsible resource development is not an automatic green light for all development projects — only those projects that meet our environmental rigour will be approved," he said.
Cenovus has the right to try again for approval with a revised proposal, but Kent held out little hope for a change of heart.
"There would be significant disruption, I would think, even under a new proposal."
"Our government, the Harper government, takes its environmental responsibilities very seriously. Protecting the environment matters to our government. And this decision, I believe, demonstrates exactly that."
A group of local and provincial environmentalists warmly welcomed Kent's decision, saying it sets a high bar for how governments should protect the prairie.
"The government’s decision shows the department is serious about its commitment to the protection of the national wildlife area," Cliff Wallis of the Alberta Wilderness Association said in a statement.
“It is very good news for the species that rely on (the area) and it also sets an excellent precedent about the government’s commitment to preserving the integrity of other protected areas.”
The opposition NDP, on the other hand, was not impressed.
It has been obvious for years that the Cenovus proposal was a no-go, but the minister waited until the eve of United Nations climate negotiations where Canada's reputation is taking a beating, said environment critic Megan Leslie.
"It’s amazing that the minister has set the bar so low that just doing his job is newsworthy," Leslie said in an email.
She said the decision comes on the heels of another non-announcement designed to hype Canada's environmental credentials. Earlier this week, Kent announced new draft regulations to cut emissions from cars and light trucks during the latter half of this decade.
"That’s two pretty cynical announcements in one week, the week before the minister leaves for international climate negotiations," Leslie said.
"The first was announcing an American announcement to great fanfare — an announcement that the U.S. made this summer — and now an announcement that, three years later, the government won’t rubber-stamp industry’s application. And we’re supposed to be impressed?"
Alberta Premier Alison Redford said she was disappointed with Kent's ruling.
"We always know that when there's economic activity that we're doing to see some sort of environmental impact and from my perspective I think it's important that we ensure that we're always allowing for that development to happen in a way that's environmentally sustainable so we respect that process," she told reporters in Calgary.
The CFB Suffield national wildlife area is one of the few large blocks of dry, mixed-grass prairie still existing in Canada, accounting for 30 per cent of Alberta's protected grasslands, Environment Canada says.
While a decision on the Cenovus proposal took six years from start to finish, Kent argued that under the new rules announced last spring, a decision would have been much faster.
Still, he recognized that scientists needed time to properly assess the fragility of the area and examine ways to mitigate any damage. But he said lots of time was also wasted.
Now, with government-imposed time limits on how long a panel can take to assess resource projects, panel members will be forced to focus on the job at hand, he said.
PRO: Potential Energy Independence
Estimates by the <a href="http://www.eia.gov/pub/oil_gas/natural_gas/data_publications/crude_oil_natural_gas_reserves/current/pdf/arrsummary.pdf" target="_hplink">United States Department of Energy</a> put the number of recoverable barrels of shale gas at around 1.8 trillion. To put that into perspective, Saudi Arabia is estimated to have roughly <a href="http://www.opec.org/opec_web/en/data_graphs/330.htm" target="_hplink">2.6 trillion barrels of oil reserves</a>. Christopher Booker writes for <em>The Telegraph</em><a href="http://www.telegraph.co.uk/comment/columnists/christopherbooker/8500496/Shale-gas-could-solve-the-worlds-energy-problems.html" target="_hplink"></a> that there are enough world reserves to "keep industrialised civilisation going for hundreds of years"
CON: Water Pollution
A <a href="http://switchboard.nrdc.org/blogs/amall/incidents_where_hydraulic_frac.html" target="_hplink">blog post by the Natural Resource Defense Council</a> explains that "Opponents of such regulation [of fracking] claim that hydraulic fracturing has never caused any drinking water contamination. They say this because incidents of drinking water contamination where hydraulic fracutring is considered as a suspected cause have not been sufficiently investigated." It then goes on to list more than two dozen instances of water pollution to which hydraulic fracking is believed to have contributed. A <a href="http://insideclimatenews.org/news/20111104/gasfrac-propane-natural-gas-drilling-hydraulic-fracturing-fracking-drinking-water-marcellus-shale-new-york" target="_hplink">new waterless method of fracking</a> has been proposed, but environmentalists are skeptical.
CON: Leaks More Emissions Than Coal
Methane is a greenhouse gas and <a href="http://www.ucsusa.org/clean_energy/technology_and_impacts/energy_technologies/how-natural-gas-works.html#enviroimpacts" target="_hplink">major component of shale's carbon footprint</a>. Cornell Professor Robert Howarth said about a study he conducted, "Compared to coal, the footprint of shale gas is at least 20 percent greater and perhaps more than twice as great on the 20-year horizon and is comparable when compared over 100 years."
PRO: Burns Cleaner Than Other Fossil Fuels
<a href="http://www.scientificamerican.com/article.cfm?id=natural-gas-could-serve-as-bridge-fuel-to-low-carbon-future" target="_hplink">Researchers at MIT found that</a> replacing coal power plants with natural gas plants could work as part of a plan to reduce greenhouse emissions by more than 50 percent.
CON: Hydraulic Fracking Has Been Linked To Earthquakes
<a href="http://oilprice.com/Energy/Natural-Gas/U.S.-Government-Confirms-Link-Between-Earthquakes-and-Hydraulic-Fracturing.html" target="_hplink">Several earthquakes both in the U.S. and abroad </a> have been linked to the hydraulic fracturing process. One British company, <a href="http://www.cuadrillaresources.com/cms/wp-content/uploads/2011/11/Cuadrilla-Resources-Press-Release-02-11-11.pdf" target="_hplink">Cuadrilla Resources</a>, admitted in a report that its hydraulic fracturing process well "did trigger a number of minor seismic events."
<a href="http://www.treehugger.com/fossil-fuels/facts-on-fracking-pros-cons-of-hydraulic-fracturing-for-natural-gas-infographic.html" target="_hplink">The industry currently employs more than 1.2 million people</a> in the U.S., and the Department of Energy estimates that natural gas resources have increased nearly 65 percent due to fracking, according to a TreeHugger graphic. Additionally, <a href="http://www.bu.edu/energy/files/2011/07/Fracking-article-Sept-14-2011.pdf" target="_hplink">the gas industry accounts for about $385 billion</a> in direct economic activity in the country, a <em>Nature</em> piece reports.
CON: Companies Don't Have To Disclose Chemicals Used In Process
<a href="http://water.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/wells_hydroreg.cfm" target="_hplink">Fracking is exempt from the Safe Drinking Water Act of 2005</a>, thus allowing companies to conceal the chemicals used in the process.
PRO: Buys Time To Develop Renewable Energy
Former chief of staff to President Clinton and former head of the Center for American Progress <a href="http://www.businessweek.com/magazine/could-shale-gas-reignite-the-us-economy-11032011_page_2.html" target="_hplink">John Podesta says natural gas can serve</a> "as a bridge fuel to a 21st century energy economy that relies on efficiency, renewable sources, and low-carbon fossil fuels."
CON: Requires Large Amounts Of Water
The fracking process can require around <a href="http://www.hydraulicfracturing.com/Water-Usage/Pages/Information.aspx" target="_hplink">five million gallons</a> of water. In some cases<a href="http://www.treehugger.com/fossil-fuels/facts-on-fracking-pros-cons-of-hydraulic-fracturing-for-natural-gas-infographic.html" target="_hplink"> less than a third of that water is recovered</a>.