Gov't to be fuelled by Exxon?

By SEAN HOLMAN
24 HOURS
vancouver.24hrs.ca
April 4, 2007

DRILLING CONSENT

Exxon Mobil Corp. - the largest and one of the most powerful companies in the world - appears to have offered to help the provincial government lift the federal moratorium on offshore oil and gas development, 24 hours' Public Eye has exclusively learned. On Feb. 2, Energy, Mines and Petroleum Resources Minister Rich Neufeld met with Exxon Mobil executives while attending a convention in Houston, Texas. During that meeting, the executives told the minister their company "has new [offshore] technologies that are environmentally friendly." And they asked how Exxon Mobil can "help move the moratorium and public opinion." This, according to a government report obtained via a freedom of information request.

The ministry of energy mines and petroleum development declined an opportunity to elaborate on what went on at that meeting. For their part, Exxon Mobil media advisor Susan Reeves stated in an e-mail, "The offshore moratorium issue will be appropriately dealt with by the provincial government." She then added the company "has a longstanding public record of supporting policy efforts that provide greater access to resources worldwide, including non-traditional or frontier resources." And it's that record that has offshore drilling opponents concerned.

LASH-ING OUT

Speaking with 24 hours' Public Eye, Living Oceans Society executive director Jennifer Lash said, "Obviously, we'd be hoping that Neufeld would listen to the people of British Columbia and not to a company like Exxon Mobil when it comes to understanding what's in the best interests of British Columbia. And we also would be greatly concerned if the provincial government is going to start working in collaboration with Exxon Mobil to try to reach out to the public and try to do some sort of propaganda campaign to try and convince people from B.C. that offshore oil and gas drilling is safe when we know it's not ... One would hope [Neufeld] would just tell a company like Exxon that they're not welcome here to come and sway public opinion - that that's not necessary."

KINDER SURPRISE?

A government report prepared by the ministry of energy, mines and petroleum resources states Terasen owner Kinder Morgan Inc. wants to "discourage electricity" use in British Columbia and "replace [it] with natural gas." But a spokesperson for Terasen says "that would be an inaccuracy" - rejecting suggestions that Kinder Morgan wants the government to introduce a pricing system that could see some British Columbians who use electricity to heat their homes pay a higher Hydro rate than those who use other sources, such as natural gas.

The report summarizes a Jan. 31 meeting between Neufeld and Kinder Morgan chairman and chief executive officer Rich Kinder - as well as president Park Shaper and chief operating officer Steven Kean. According to the report, after the executives expressed a desire to replace electricity use with natural gas, "B.C. noted that electricity is cheap and competes with gas."

Kinder Morgan then suggested introducing "incremental prices" for residential electricity consumers. Under such a system - which has been in place for B.C. Hydro's industrial customers since 2005 - the more electricity you use, the higher your kilowatt hour rate will be.

That encourages energy conservation. And, in an interview with 24 hours' Public Eye, Terasen corporate communications manager Joyce Wagenaar said her company is simply working in co-operation with B.C. Hydro to make sure British Columbians "use the right fuel, at the right place, at the right time."

But incremental pricing also means those who don't heat their homes with electricity could receive a lower kilowatt-hour rate than those who do, depending on how much power they use.

Kinder Morgan is set to transfer ownership of Terasen to Canadian utility company Fortis Inc. sometime this year - having announced those plans on Feb. 26. Government declined comment on Neufeld's meeting with Kinder Morgan executives.

DEAD ARMADILLOS AND YELLOW LINES

More than a year ago, Premier Gordon Campbell "unveiled a comprehensive $3-billion plan to open up the province's transportation network in Vancouver" - also known as the Gateway Program. So it seems strange the provincial New Democrats still haven't decided whether to support that highway expansion project.

But could it be that some of the party's caucus members are getting a bit tired of standing in the middle of the road? This past Saturday, transportation critic David Chudnovsky addressed a mass rally in Delta organized by the Gateway 30 Network.

Asked whether that means the New Democrats are now opposed to Gateway, Chudnovsky explained the Lower Mainland needs a transit-based transportation strategy, not a road-based one. "That doesn't mean we never build another bridge or another road. But it does mean you've got to be going in the right direction."