Are there Greenhouse Gas Emission Savings in Hazmat or Remediation Projects?

Up to $575,000 in support available for winners of contest held on Massachusetts Institute of Technology’s Climate CoLab platform

The Centre of Social Innovation in Toronto recently launched a contest to solicit a broad range of possible solutions to help small to medium enterprises (SMEs) in Ontario reduce their direct and indirect greenhouse gas (GHG) emissions.  The winning proposals will be eligible to receive funding and support to pilot their solutions in Ontario over eight months.

In-situ remedation may generated GHG credits vs. dig-and-dump

The contest, now sourcing proposals on the Massachusetts Institute of Technology’s (MIT’s) Climate CoLab platform, allows members of the public to provide feedback to proposal authors, and to cast votes for the People’s Choice Winner.  A panel of judges will select 3-5 winning proposals based on their desirability, feasibility, scalability and impact to potentially be piloted in Ontario.

SMEs make up 98.2% of businesses in Canada, and emit as much climate change-causing greenhouse gas (GHG) emissions per year as Canada’s combined transportation sector, including every car, truck, train, plane, and ship. Reducing their emissions can benefit SMEs by helping them grow while also building healthier communities.

“Recent research from the University of Waterloo shows us that the vast majority of SMEs believe that sustainability is important,” said Barnabe Geis, Director of Programs at the Centre for Social Innovation. “We want to support the implementation of solutions – whether technologies, programs or services – that help SMEs meet their sustainability goals as a powerful way to both strengthen our economy and improve the health and well-being of our communities.”

Barnabe Geis,
Director of Programs, Centre for Social Innovations – Toronto

Many SMEs face barriers to lowering their emissions, from lacking the technical expertise to assess options for reducing emissions to not being able to afford the upfront costs of a low-carbon technology. However, once the right technologies or practices are implemented, the savings and other benefits to SMEs can be substantial. This contest will offer support to demonstrate the value and scalability of solutions in order to make the path towards sustainability more accessible to SMEs across the province.

There may be opportunities in the hazmat and remediation sectors to reduce the generation of GHGs from SMEs.  If so, the contest offers a great chance to secure third-party funding to pursue the opportunities.

The contest is open to proposal submissions until August 3, 2018. Proposals submitted prior to July 11th, will be reviewed by the Judges and given feedback before the contest deadline.

For further information on the contest, contact Barnabe Geis, Director of Programs at the Centre of Social Innovation at barnabe@socialinnovation.ca.

Oil Spill Response using Real Time Tracking and GIS Technology

A new project taking place of the coastline of St. John’s Newfoundland aims to reshape marine oil spill response through real-time tracking and GIS technology.

Integrated Informatics Inc., headquartered in Houston,Texas, recently received funding from the Newfoundland and Labrador Innovation Council to undertake a project that will aim to reshape the way in which asset and personnel tracking are handled for Marine Oil Spill Response in Newfoundland and Labrador.

In November 2008, the Odyssey, a British-owned oil tanker, broke in two, caught fire and sank in heavy seas about 900 miles east of Newfoundland, spilling about a million barrels of oil.

The project will include the development of a new Tracking Data Management System to be deployed to Marine Emergency Response Industry users.

A spokesperson for Integrated Informatics, Sharon Janes, stated in a press release, “It is not uncommon to still see paper maps and documents heavily relied upon in Emergency Response Plans.  The problem with these resources is that they do not present information that is as complete and current as possible within an emergency situation. This is what we are excited to help change – putting this data into the hands of responders as quickly and efficiently as possible.”

The Tracking Data Management System will be completed by August 2019, consisting of a suite of applications for asset and personnel tracking and a data management system to streamline the acquisition of data necessary for emergency preparedness exercises and active response within command centers.  These products will utilize Geographic Information System (GIS) technology – including rich mobile and web interfaces – as well as a robust data analytics and reporting dashboard.

Ms. Janes also stated, “By accessing asset and personnel tracking data through mobile devices and the web, first responders will be able to more efficiently interpret data, analyze trends, and plan response in real-time. Because this system rests on such a familiar platform [mobile, web], those with technical and non-technical backgrounds alike will be able to implement it into their workflows with ease.”

The planned system is one that has long been of interest within the Emergency Response and Natural Resources sectors of the Province – especially as organizations explore new, more challenging environments alongside their own endeavors to align processes and practices with innovative digital technologies.

Integrated Informatics Inc. is a consultancy for Geographic Information System implementation and development. Founded in 2002, Integrated Informatics has offices in Calgary, Alberta, Houston, Texas, and St. John’s, Newfoundland.

First ship launched of Trans Mountain spill response fleet

As reported by jwnenergy.com, the first of 43 new spill response vessels being built to support the Trans Mountain Pipeline expansion was launched recently in Prince Rupert, B.C.

The 26-foot Sentinel 30 workboat and landing craft was built for Western Canada Marine Response Corp. (WCMRC).  WCMRC is the Transport Canada-certified marine spill response organization for Canada’s West Coast. Its mandate under the Canada Shipping Act is to be prepared to respond to marine oil spills along all 27,000 km of British Columbia’s coastline, and to mitigate the impact when a spill occurs. This includes the protection of wildlife, economic and environmental sensitivities, and the safety of both the responders and the public.

The Sentinel 30 Spill Response Vessel built by WCMRC

The spill response vessels are part of an investment of $150 million committed after Kinder Morgan made its final investment decision on the pipeline in June 2017, British Columbia’s largest-ever expansion of spill response personnel and equipment.

“Workboats are the backbone of a response. These support vessels deliver equipment and personnel to a response, tow boom as part of a sweep system, deploy skimmers and can assist with waste removal,” WCMRC said in a statement.

“To perform these tasks, the new Sentinel 30 is powered by twin 150 HP counter-rotating Yamaha outboards and can travel at up to 35 knots.”

The Sentinel 30 will undergo spill response trials in Prince Rupert and ultimately be transitioned to the new 24/7 response base in Saanich on Vancouver Island.

In total, WCMRC is building 40 new vessels as part of the Trans Mountain pipeline spill response fleet. Other new vessel builds underway at WCMRC shipyard include purpose-built skimming vesselsCoastal Response Vesselslanding craft and response barges.

The Trans Mountain spill response enhancements also include six new response bases and about 135 new personnel. These new resources will be located along shipping lanes in the Salish Sea, with about 70 of the new WCMRC employees and most new vessels located at bases on Vancouver Island, according to Kinder Morgan.  Following the enhancements, there will be over 80 vessels in the fleet.

All new personnel, facilities and equipment will be in place several months before the first oil tankers associated with the expansion begin calling at Burnaby’s Westridge Marine Terminal in Burrard Inlet, the company said when the enhancements were announced last June.

New Partnership for Oil Spill Response

Four Norwegian companies have formed a new partnership to provide an oil spill response service. Framo, Maritime Partner, Norbit Aptomar, and NorLense have established the OSRV Group which is claimed to be a ‘one-stop-shop’ for oil spill response. The companies in this new group are all specialists in their particular fields and their Norwegian manufactured components have a dedicated function that is aimed at achieving the best result possible when an oil spill occurs. The products of this group also allows for conventional supply vessels to be converted to emergency oil-spill response support units as required.

OSVR Group offers a complete oil spill response solution

“Our aim is to be a ‘one-stop-shop’ where we pool our efforts and act as a total systems supplier of safe, highly functional, and well-tested technology. The emergency response equipment has undergone thorough testing and quality assurance, drawing on 40 years of oil spill response experience,” says Jørgen Brandt Theodorsen, Area Manager of Oil & Gas Pumping Systems at Framo. “The OSRV Group offers a package solution that covers everything the customer needs, from detection and containment to recovery of the spill and this is conducted with reliable equipment that can handle the challenges if an accident occurs.”

“The customer only has to deal with one of the partners to get access to a complete system that covers everything and is fully adapted in terms of functionality, volume and size,” said Roy Arne Nilsen of NorLense. Aptomar’s radar and infrared cameras can identify and produce an overview of the oil slick, whilst Maritime Partner’s high-speed vessels are designed for pulling equipment such as booms in place. These booms are supplied by NorLense, and then recovered oil is pumped onto a vessel with the Framo TransRec Oil Skimmer System.

“This is a turnkey solution where customers have access to emergency preparedness expertise without themselves having to acquire this. With our package solution, supply vessels can easily be upgraded and used as part of new emergency response tenders. It is quick and easy for ship-owners to convert existing vessels in order to offer new services to oil companies,” commented Lars Solberg of Norbit Aptomar.

A prompt response is important so the OSVR Group will ensure that an emergency oil-spill response system responding quickly.” said Peder Myklebust, of Maritime Partner.

 

Vancouver files claim against owners of vessel that leaked fuel in 2015

As reported by CTV News, the City of Vancouver has filed a federal court claim against the owner of a vessel that spilled fuel into English Bay in 2015, as part of the city’s continuing effort to get compensation for its response efforts.

Vancouver Mayor Gregor Robertson says three years after the MV Marathassa spilled 2,700 litres of bunker fuel into the bay, the city still hasn’t been compensated for about $550,000 it spent on response efforts.

Robertson says Vancouver has sought repayment through the federal government’s Ship-source Oil Pollution Fund, but has only been promised compensation for 27 per cent of its costs — something Robertson called “totally unacceptable.

“It’s ridiculous that it’s taken over three years now fighting for our costs to be covered by an oil spill in our harbour,” Robertson told reporters gathered at Sunset Beach in Vancouver on Sunday.

The city’s claim against the ship owners — filed last month but announced on Sunday — calls for damages, interest and court costs related to the spill.

Robertson said the city’s difficulty in getting paid back for what he described as a “relatively small oil spill” shows there aren’t enough measures in place to protect coastal communities against more major spills.

He said the costs and impacts of a potential diluted bitumen spill from the increased tanker traffic that would come with the Kinder Morgan Trans Mountain pipeline expansion has not been meaningfully addressed by the federal government.

Robertson said the Ship-source Oil Pollution Fund was set up by the federal government to act in the interest of communities like Vancouver, but is failing to do so.

“It clearly does not do that, does not deliver the results. This speaks to the greater concern we have with Kinder Morgan and oil tankers,” he said.

Transport Canada, which oversees spill response, could not immediately be reached for comment.

The claim’s statements have not been proven in court.

Crews on spill response boats work around the bulk carrier cargo ship Marathassa after a bunker fuel spill on Burrard Inlet in Vancouver, B.C., on Thursday April 9, 2015. (Darryl Dyck/THE CANADIAN PRESS)

Environmental charges laid against Husky Energy Inc. and Husky Oil Operations Limited

Environment Canada and Climate Change (ECCC) recently laid a number of charges against Husky Energy Inc. and Husky Oil Operations Limited relating to the blended heavy crude-oil spill, in July 2016, which impacted the North Saskatchewan River, near Maidstone, Saskatchewan. The Government of Saskatchewan also filed a charge under the Environmental Management and Protection Act, 2010. These charges result from a 19-month joint federal-provincial investigation.

There are a total of ten charges which include one charge under subsection 36(3) of the federal Fisheries Act, one charge under subsection 38(5) of the federal Fisheries Act, six charges under subsection 38(6) of the federal Fisheries Act, one charge under the federal Migratory Birds Convention Act, 1994, and one charge under Saskatchewan’s Environmental Management and Protection Act, 2010.

The first appearance was at the end of March at the Lloydminster Provincial Court office.  According to the Premier of Saskatchewan’s office, the company faces a possible maximum $1 million fine.

Shoreline cleanup for the Maidstone-area oil spill (Jason Franson/Canadian Press)

Saskatchewan Minister of Environment Dustin Duncan said the spill led to significant changes in the provincial Pipelines Act; changes that include greater regulation, auditing powers, penalty provisions and licensing flowlines.

“We take this very seriously. There, to my knowledge, hasn’t been a charge with respect to the unintended release of oil from a pipeline in the province’s history,” he told reporters in late March.

Duncan said the site cleanup was completed by the end of last year, but Husky will have to work with the province’s Water Security Agency and the Ministry of Environment to make sure nothing else is required.  He said he expects full co-operation.

“In the last year, despite a very unsettling situation, Husky was very responsive when it came to the cleanup but also responding to the concerns by First Nations, by communities along the river, as well as to the requests that were made by the government department,” Duncan said.

All charges are currently before the Court, and they have not yet been proven. Under Canadian law, those charged are presumed innocent until proven guilty. Therefore, Environment and Climate Change Canada and Saskatchewan’s Water Security Agency, which has a responsibility for the specific charge under the provincial Environmental Management and Protection Act, 2010, will not be commenting further at this time.

 

New Brunswick Southern Railway pleads not guilty to charges related to oil transport

As reported by the CBC, New Brunswick Southern Railway has pleaded not guilty to 24 charges related to the transportation of oil.  Defence lawyer Catherine Lahey entered the pleas on the Irving-owned company’s behalf during a brief appearance in Saint John provincial court on earlier this month.

The charges against the railway, a subsidiary of J.D. Irving Ltd., stem from a Transport Canada investigation triggered by the 2013 derailment that killed 47 people in Lac-Mégantic, Que., prosecutors have said.  Twelve of the charges under the Transportation of Dangerous Goods Act relate to failing to create proper shipping documents for the purpose of transporting petroleum crude oil.  The other 12 charges relate to having unqualified personnel handling dangerous goods — crude oil.

The offences are all alleged to have occurred between Nov. 3, 2012, and July 5, 2013, at or near Saint John.  Irving Oil would have imported about 14,000 cars of crude for its Saint John refinery during that period.

New Brunswick Southern Railway is part if NBM Railways, a subsidiary of J.D. Irving Ltd., which also includes Cavendish Farms, Kent Building Supplies and Irving Pulp & Paper.

A trial date will be set on June 4.  Judge David Walker said the Crown is expecting to take about three weeks to present its case.  There is no word on how long the defence will take.  Pleas were delayed last month because the defence was still in the process of receiving an estimated 9,000 disclosure documents from the Crown.

The rail cars full of crude that exploded in Lac-Mégantic, Que., in July 2013 were destined for Irving Oil’s refinery in Saint John. (CBC)

In October 2017, Irving Oil was ordered to pay $4 million after pleading guilty to 34 charges under the same act.  Those charges related to failing to properly classify the crude oil it transported by train and inadequately training its employees in the transportation of dangerous goods.

The crude oil in the derailed rail cars that exploded in Lac-Mégantic was destined for Irving’s refinery in Saint John.

New Brunswick Southern Railway, along with its sister railways — Maine Northern Railway and Eastern Maine Railway — operates 883 kilometres of railway in New Brunswick and Maine.

Ontario Announces Cleantech Strategy & Support for Cleantech Companies

Article by Richard CorleySophie Langlois and Catherine Lyons

Goodmans LLP

Recently, the Ontario Minister of Research, Innovation and Science, Reza Moridi, launched Ontario’s Cleantech Strategy (the “Cleantech Strategy“) which aims to catalyze the growth of Ontario’s clean technology sector to support sales into a global market which is expected to grow to $2.5 trillion by 2022. The Cleantech Strategy is aligned with Ontario’s five-year Climate Change Action Plan (CCAP) to fight climate change, reduce greenhouse gas (GHG) pollution, and drive the transition to a low-carbon economy.  It is also aligned with Ontario’s Business Growth Initiative (BGI), which is, among other things, assisting innovative companies to scale up.

Purpose of the Cleantech Strategy

The Cleantech Strategy bolsters Ontario’s commitment to support the development of new, globally competitive low-carbon technologies that will contribute to fighting climate change and to meeting Ontario’s GHG pollution reduction targets of 15% below 1990 levels by 2020, 37% by 2030 and 80% by 2050. As Minister Moridi explained:

By helping our cleantech companies get ready to scale – and helping them to connect to early customers here in Ontario – Ontario is supporting innovation and reducing emissions and environmental impact across industries. Over the longer term, we expect to see more scaled-up Ontario cleantech companies recognized as North American leaders.

Ontario has the largest share of cleantech companies in Canada and the Cleantech Strategy further supports the province’s leadership in GHG pollution reduction through the development and scaling of cleantech solutions.

Principal Elements of the Cleantech Strategy

Based on Ontario’s strengths in cleantech and global demand, the Cleantech Strategy prioritizes the following four cleantech sub-sectors: energy generation and storage, energy infrastructure, bio-products and bio-chemicals, and water and wastewater.

The Cleantech Strategy has four interrelated pillars through which the province intends to meet its objective of helping cleantech companies scale up and meet global demand:

  1. Venture and scale readiness – strengthening opportunities for in-house research and development, strengthening entrepreneur knowledge of key global markets, reducing regulatory uncertainty to facilitate access to capital, and attracting and developing a strong pool of sales, marketing and management talent
  2. Access to capital – increasing access to scaling capital, providing guidance on available provincial and federal cleantech funding, and simplifying access to such capital
  3. Regulatory modernization – streamlining the regulatory environment where possible to reduce barriers for cleantech market entry, supporting performance-based standards and approvals processes, and supporting the development of harmonized industry standards
  4. Adoption and procurement – increasing demonstration and pilot opportunities to de-risk and validate new technologies, and addressing prescriptive and risk-averse procurement practices

Initiatives funded through Ontario’s carbon market as part of the Cleantech Strategy include the Global Market Acceleration Fund (GMAF) and the Green Focus on Innovation and Technology (GreenFIT).

The Global Market Acceleration Fund

The GMAF will help companies lower the risk associated with expanding production of a proven clean technology.  The fund will also assist companies with the cost of scaling up inventory, distribution and sales to domestic and global markets.  The GMAF can provide between $2 million and$5 million of funding to Ontario-based companies with promising GHG reduction technologies and scale-up and export potential.  To receive funding, these companies must be able to demonstrate funding commitments for at least 50% of the eligible project costs. A total of $27 million has been allotted to the GMAF.

Green Focus on Innovation and Technology

Through the GreenFIT program, Ontario will commit $10 million towards demonstration projects of new technologies and services. Early adoption of these new technologies and services will benefit both the adopting public sector institutions with support for their emissions reductions and participating companies with opportunities for validation and credibility for their products.

The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.

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About the Authors

Richard Corley is a partner at Goodmans LLP and leads the firm’s Cleantech Practice Group.

Sophie Langlois is an associate at Goodmans LLP.  She practices in the area of corporate and securities law and mergers and acquisitions.

Catherine Lyons is a partner at Goodmans LLP.  She dedicates her practice to representing both private and public sector clients at the intersection of municipal and environmental law.

 

This article was first published on the Goodmans LLP website.

The Supreme Court of Canada to Decide who pays to Clean-up Toxic Industrial Sites

The Supreme Court of Canada is hearing a controversial case this week concerning who is responsible for cleaning up toxic industrial sites when a company goes bankrupt.

At stake is potentially billions of dollars in environmental clean-up costs. And entities ranging from governments to Canada’s big banks to oil and gas companies and farmers are all looking to ensure that they don’t end up on the hook for cleaning up toxic sites – many of them in remote rural and northern areas of the country.

The case itself focuses on a small Alberta oil company, Redwater Energy, which entered creditor protection in 2015. Only a few of the company’s assets had value, so the bank wanted to sell those wells to recover some of its debt and abandon the rest of the oil and gas sites. The question became whether Redwater’s assets should help pay its debts or be used to pay for the cleanup cost of its worthless oil and gas wells?

The case will address a fundamental public policy dilemma about what happens when a resource company bites the dust. For instance, every mine in the country has environmental regulations attached to its licence about reclaiming the site when the mine closes.

But if the company goes belly up, does the bank take over those end-of-life responsibilities? If not, is the site abandoned or do taxpayers pick up the hefty tab?

The question for the Government of Alberta and area farmers that had Redwater oil and gas wells on their land became whether Redwater’s assets should help pay its debts or be used to pay for the clean-up cost of its worthless and contaminated work sites?

The Supreme Court case addresses a fundamental public policy dilemma about what happens when a resource company fails. Every mine operation in Canada has environmental regulations attached to its licence about reclaiming the site when the mine closes. But if the company goes belly up, does the bank take over those end-of-life responsibilities? If not, is the site abandoned or do taxpayers pick up the hefty tab when the provincial government pays to clean it up? And how much cost should farmers and other landowners bare for clean-up and reclamation costs?

“We need to be able to ensure the people of Alberta, collectively, are protected,” Alberta Premier Rachel Notley told reporters earlier this week.

The Alberta Energy Regulator (AER) says there are approximately 1,800 abandoned oil and gas sites in that province alone and pegs the cost to remediate them at $8.6 billion.

If the Supreme Court sides with previous court rulings, the AER will likely respond by increasing the orphan levy imposed on well licensees. However, a portion of the expense will inevitably fall to the provincial government, and thus to taxpayers. But if the Supreme Court decides to reverse the decision, it will create hesitancy among lenders. Financial institutions will likely respond by tightening their purse strings as they begin pricing the risk into new loans made out to the industry.

This case has consequences that reach far beyond one small energy company. The Redwater case could act as precedent in other provinces. If the previous rulings are upheld, it will send a clear signal to natural resource companies’ creditors that bankrolling fossil fuel infrastructure, mining projects, and pulp and paper mills without accounting for clean-up costs is not only acceptable, but encouraged in a legal climate where the public—not the polluter—pays.

“The Redwater decision impacts Alberta’s constitutional right to manage its own resources,” said AER spokeswoman Cara Tobin, adding that “By rejecting the polluter pays principle that underlies virtually all of Alberta’s oil and gas legislation, it’s shifted liability from the polluter to innocent third parties and the public.”

The provincial governments of Ontario, which currently has about 2,400 oil and natural gas producing wells, along with British Columbia and Saskatchewan have also joined the Supreme Court Case, which will be heard in Ottawa this week. The Canadian Association of Petroleum Producers is also an intervener in the legal case.

Bitumen floats longer than expected, Natural Resources Canada research shows

As reported in the Vancouver Sun, researchers at Natural Resources Canada are discovering important characteristics of bitumen (the un-processed form of crude oil from the Alberta oil sands) and its interactions with the environment.  Information from the research will be useful in the development of strategies and technologies to clean-up bitumen in the event that is leaks into the environment as a result of a pipeline leak or tanker spill.

One important question with respect to bitumen is whether it sinks or floats when it hits the water. The short answer is it floats, most of the time, according to a growing body of research being compiled by Natural Resources Canada scientists.

Researcher Heather Dettman, a senior scientist with Natural Resources Canada in Devon, Alta., is leading a team looking into some of those questions in research under the federal government’s world-class tanker safety program and ocean protection program.

Postmedia caught up with her and a spokesman from Western Canada Marine Response Corp. to talk about answers.

Bitumen

Q: What is diluted bitumen?

A: Bitumen is the basic, tar-like petroleum product extracted from the Athabasca oilsands, which are oil deposits that were first formed deep underground, but were moved closer to the surface by geological movements of the earth. That allowed microbes to degrade the components that make up gasoline and diesel leaving only its asphalt components. Producers inject those lighter components back into bitumen to make it thin enough to flow through pipelines.

Q: How would rough seas change the behaviour of diluted bitumen?

A: “From a density perspective, it will be floating unless it’s really stormy, then it can go anywhere, the same as any other petroleum product,” Dettman said.  If a storm pushed bitumen ashore, it would pose the problem of having to clean it up on land.

Q: Has there ever been a spill of diluted bitumen on the coast?

A: The biggest spill that the Western Canada Marine Response Corp. has dealt with involved a mix of bitumen and synthetic oil, said spokesman Michael Lowry.  That was the 2007 puncture of Kinder Morgan’s Trans Mountain pipeline in Burnaby that led to about 100 tonnes of oil flowing down storm drains into Burrard Inlet.  In nice weather and close to the industry-funded spill responders’ facilities, Lowry said they were able to recover 90 per cent of the oil.

“Those are ideal conditions; I can’t extrapolate those to other spills for sure,” Lowry said.

Kalamazoo River diluted bitumen spill clean-up

Q: How do you clean up a bitumen spill?

A: Lowry said methods haven’t changed much over the years. Chemical dispersants, in situ burning and mechanical recovery are the techniques that responders use, but since the first two require government permission, the corporation focuses on mechanical recovery — booming and skimming. From its 2007 experience, Lowry said responders learned that its brush skimmers — conveyors that rotate heavy plastic brushes over the surface to collect oil — were particularly effective.

“Conditions play a huge role in recovery,” Lowry said. “High winds are going to impact your ability to respond and rough seas definitely impede your ability to respond.”

Q: What research is being done to improve spill response?

A: Lowry said new tools are being developed, such as advanced booming systems that perform better under tougher conditions, which the corporation deploys.  In the meantime, Lowry said Environment Canada and Natural Resources Canada are putting resources into studying the topic.