Power line push continues in north

COMMENT: The private sector harbours such big illusions about itself - willing to take big risks, entrepreneurial and inventive, willing to go where no public sector agency has the cojones to go before... Then crumbling in unacknowledged self-abasement when it doesn't quite go as planned and it finds itself bleating along with the most abject trough-wallowers of them all, to increase the public subsidy to make it all worthwhile.

We may not share their view that transmission lines are an appropriate undertaking for the private sector in British Columbia (we don't, as a matter of fact, but apparently, neither do they) but let's at least see their mony put where their begging mouths are.

Power line push continues in north
Terrace Standard, 19-Dec-2007

Line assessment on hold
Terrace Standard, 19-Dec-2007

Mine man confident of power line
Terrace Standard, 19-Dec-2007

REGIONAL OFFICIALS continue to press the provincial government to at least complete environmental and other studies needed for a planned $400 million power line up Hwy37 North even though it has frozen its development.

The line was put on hold the end of November, the day after its one and only firm customer, Galore Creek Mining Corporation, citing a huge capital cost overrun, itself froze construction of its massive copper and gold mine construction project.

Terrace officials joined in with counterparts across the region to tell economic development minister Colin Hansen in Smithers last week that completing the assessment work for the line, including getting all the needed permits makes sense.

This way, says Terrace councillor Brian Downie, a more complete package could be delivered to a potential builder, whether it be a public sector body or not, when conditions warrant the line's construction.

"You'd be able to identify the issues now, particularly the socio-economic ones, and address those that needed to be addressed," said Downie.

Both he and Sam Harling from the Terrace Economic Development Authority noted that the environmental review, once studies are concluded, takes place according to a 180-day clock.

"If we had a mine that was ready to go, and then we had to wait for that 180 days for a power line decision, that's a lot of time," said Harling.

He and Downie also said that an environmental approval designation is good for five years, a healthy period of time in which events can take place to justify the line's construction.

"In that sense then, the line would be ready to go," said Harling.

He said the province just last week announced that it received $1 billion from oil and gas companies for drilling rights in northeastern B.C. for 2007.

"The cost of completing the process for the line in terms of economic development for other opportunities is not that much compared to what the province earned in oil and gas rights," Harling added.

Harling, Downie were accompanied by new city councillor Dave Pernarowski.

"He said he would take what we said down to energy minister Richard Neufeld," said Harling of the meeting with Hansen.

Hansen was in Smithers to speak to that community's chamber of commerce and also to attend the opening of a meat processing plant in Telkwa, financing of which was assisted by the Northern Development Initiative Trust.

The Terrace and District Chamber of Commerce has also added its voice to the call to complete the power line's environmental assessment and permitting process.

THE PROVINCIAL crown corporation that would be in charge of the construction of the planned $400 million power line up Hwy37 North has asked that the public comment phase of the project be suspended.

The public had been asked to make comments about the draft terms of reference for the project's environmental assessment phase and the deadline for making submissions had been Dec. 13.

But with the project on hold because the line's main customer, the Galore Creek copper and gold mine construction project, has ground to halt, there was little need to ask the public for their opinions.

The B.C. Transmission Corporation had been given orders just over two months ago to go ahead with the line's construction.

Part of that involved a detailed environmental assessment conducted through the B.C. Environmental Assessment Office and it had been asking for comment on the draft terms of reference.

"This is part of the process of suspending the project," said corporation official Chris Rathbone of the request to cancel the public comment phase.

The corporation had also cancelled its call for companies interested in power line construction contracts to submit their qualifications for consideration.

Those documents had a submission deadline date of Dec. 7.

But Rathbone cautioned that the transmission corporation and the provincial government have yet to make a final decision on the future of the project.

"It's pretty much where it's been since the announcement it was on hold - the project is being evaluated," he said.

The decision to put the power line on hold followed within a day the announcement by NovaGold Resources and Teck Cominco that Galore Creek construction project was being put on hold because costs had ballooned from $2 billion to $5 billion.

The companies said they need to look at ways of trimming costs before there was any move to start construction again.

The B.C. Transmission Corporation had spent more than a year preparing for a formal start on the power line construction project.

A lot of that work involved sketching out costs involved based on various sizes of potential lines and what users might be interested in buying the power the line would provide.

The crown corporation's costs were in the $1 million range by spring.

And the bill was in the $3 million range when the crown corporation suspended work on the project.

B.C. Transmission was once part of B.C. Hydro but was carved off so it could act as a stand alone entity to transmit power throughout the province.

A PLAN to get the northwest power line back into development could be in place by as early as spring.

The Mining Association of B.C. (MABC) is promoting talks with a consortium of companies interested in picking up the $158 million tab abandoned by the Galore Creek Mining Company in November.

Provided a deal can be struck with the provincial government, MABC president Michael McPhie said the initiative is sure to produce results.

"In the early part of the new year you're going to see the ... formation of a formal deal that would allow the work to reengage in earnest," said McPhie.

He cautioned that the success of pulling a massive public-private partnership together with multiple partners will require the government to keep the permitting and engineering processes moving along, uninterrupted.

"The government should not hold back on continuing the preparatory work. Plan for the power line to be built - don't loose the momentum," said McPhie.

"There is substantive interest in the region... Nobody was expecting Galore to come off the table, so a lot of people are having to readjust and figure out what [the power line project] really looks like now. That's going to take a little time to work out."

The NovaGold and Teck Cominco's Galore Creek Mining Company was supposed to invest the $158 million into the $400 million project, but pulled out when their electricity demands ceased with the shut down of mine construction in late November.

The power line was considered a catalyst to the development of at least 15 potential mining operations near Hwy. 37.

B.C.. energy and mines Richard Neufeld, who acted quickly to put the power line project on hold when Galore Creek construction was stopped, says he is highly receptive to new partnerships, but to date has received no proposals.

"We're certainly open to offers. If there are other mining companies that want to come forward that are in that area and take Galore's place, we'll certainly consider that and work with them.... That was the deal to start with. The government was there with a deal and an offer. It was the private sector that pulled back."

The province also has no plans to finance the $158 million construction shortfall on its own.

"The one [mine] that was very well on its way, was Galore Creek. All of a sudden they said "we're hanging up the shingles for five years"... I don't know if ratepayers would be comfortable with government saying: we're just going to swallow $400 million... with no one at the end of the line to take the electricity."

In the past the MABC has criticized the province for turning its back on the project, saying the relatively small $158 million expenditure should be viewed as a vital economic infrastructure investment worth billions of dollars in potential Northwest mining revenues.

Neufeld dismissed the connection.

"I can tell you about all kinds of places that can bring back billions of dollars. It's pure speculation."