Montana accuses B.C. of breaking green pact

BAUCUS TO BP EXECS: HALT COALBED METHANE PLANS
Press Release, Max Baucus, 10-Sep-2007

Montana accuses B.C. of breaking green pact

Montana accuses B.C. of breaking green pact

DON WHITELEY
Globe and Mail
September 14, 2007

VANCOUVER — Montana Governor Brian Schweitzer is accusing Premier Gordon Campbell of breaching a four-year-old pact to protect environmentally sensitive areas that straddle the border.

Mr. Schweitzer, in a three-page letter sent Aug. 22, says the province's decision to allow two projects - a coal mine and a coal bed methane development - to proceed through the early stages of permission is of "continued concern" to the state and a breach of the 2003 Environmental Cooperation Arrangement between Montana and British Columbia.

"Since the signing of the Environmental Cooperation Arrangement there have been five separate proposals for exploratory and industrial fossil fuel development in the British Columbia Flathead," the letter states. "I believe the intent [of the arrangement] is not being met and the proposed fossil fuel developments over the past five years run contrary to the language of the arrangement ..."

The governor's letter - combined with combative language on Monday from Montana's two U.S. senators, Max Baucus and Jon Tester - points to an escalation of the cross-border war of words over potential resource development in southeastern B.C.

"I've been fighting to protect water quality and wildlife in the Flathead Valley for 30 years," Mr. Baucus says in a news release posted on his website. "I'm not about to give up now. We're going to do whatever it takes to stop energy development north of our border. We're pulling out all the stops. The gloves are off."

Montana's concerns over the two current projects - BP Canada Energy Company's coal bed methane project and Sudbury-based Cline Mining Corporation's proposed coal mine - revolve around potential impacts on water quality in the Flathead River, which flows south from British Columbia into Montana along the western boundary of Glacier National Park.

Mr. Schweitzer makes it clear in his letter that British Columbia's environmental review process does not adequately deal with Montana's concerns, and that discussions between the two jurisdictions have not yet resolved the differences.

Mr. Schweitzer takes the province to task for encouraging the coal bed methane project: "It is my understanding that British Columbia solicited bids for the development of this resource. Once again, I ask that British Columbia honour the intent of the 2003 arrangement."

He also points out that none of the resource proposals now under consideration in B.C. would be allowed in the Montana portion of the Flathead River.

"South of the 49th parallel, the Flathead watershed is one of the most protected ecosystems in the continental United States," his letter states.

However, elsewhere in the state, Mr. Schweitzer is actively promoting the development of coal-liquefaction plants, coal-fired generating stations and coal bed methane projects.

B.C. government officials in the past have refused to rule out resource development, and argue that the province's environmental-review processes provide an appropriate level of scrutiny. For the Cline proposal, Montana officials have been invited to participate in the process.

Mike Morton, press secretary to Mr. Campbell, confirmed that Mr. Schweitzer's letter had been received, and that a reply would be made by the end of this week.

He declined any further comment.

Meanwhile, senators Baucus and Tester last Monday threatened to give BP Canada a major battle if it proceeds with its Canadian plans.

The two senators met separately in Montana with BP America president Bob Malone and BP Canada president Randy McLeod.

In a press release posted on his website after the meeting, Mr. Baucus said the company can expect "a massive and unpleasant fight from Montana that will end badly" should BP seek permits for its Mist Mountain coal bed methane project in British Columbia.

The two senators timed their meetings and subsequent comments to coincide with September celebrations marking the 75th anniversary of the establishment of the U.S.-Canada International Peace Park, comprising Waterton Lakes National Park in Alberta and Glacier National Park in Montana.

Anita Perry, BP Canada's vice-president of government and public affairs, said the meetings on Monday, which she described as open and direct, were at the request of the two senators.

Mr. Schweitzer and the two senators, with some help from U.S. Secretary of State Condoleezza Rice, persuaded Ottawa to launch its own environmental review of the Cline coal mine proposal through the Canadian Environmental Assessment Agency.

In an effort to kick-start further dialogue between B.C. and Montana, Mr. Schweitzer proposes at the end of his letter that the two jurisdictions co-sponsor a government-to-government summit in mid-December, in Kalispell, Mont.

Special to The Globe and Mail

Max Baucus
United States Senator from Montana
September 10, 2007

(Washington, D.C.) – The British Petroleum Company can expect “a knock-down, drag-out fight” if it advances a proposal to tap coalbed methane seems in the Canadian Flathead, Montana’s senior U.S. Senator Max Baucus said today.

Baucus issued the warning during a face-to-face meeting in his Washington, D.C., office with BP America Chairman and President Bob Malone and BP Canada chief Randy McLeod.

Baucus said BP can expect “a massive and unpleasant fight from Montana that will end badly” for the company should it file an exploratory permit for its Mist Mountain coalbed methane extraction project in British Columbia -- near North Fork of the Flathead River, which borders Glacier National Park and runs into Montana’s Flathead Lake.

Baucus, who successfully blocked a coal mining project in the same area in 1988, says coalbed methane development there could have devastating consequences to fish, wildlife, and the recreation industry downstream in Montana.

“I’ve been fighting to protect water quality and wildlife in the Flathead Valley for 30 years,” Baucus said after the meeting. “I’m not about to give up now. We’re going to do whatever it takes to stop energy development north of our border. We’re pulling out all the stops. The gloves are off.”

Baucus also asked the company to conduct public meetings in Kalispell as soon as possible to allow Montanans to weigh in on the proposal.

The most significant byproduct of coalbed methane extraction is wastewater that can contain high levels of harmful contaminants such as barium, copper, iron, and ammonium. Canada has no law requiring that coalbed methane wastewater be re-injected back into the ground. Even so, the Flathead Lake Biological Station in Montana says that re-injection would be technically impossible given the hydrology and rugged terrain in the region.

BP is expected to file for an exploratory permit to dig test wells in what’s called the Crowsnest Coal Field, an area that spans 190 square miles, covering much of the B.C. portions of the North Fork of the Flathead as well as the adjacent Elk River Valley, which drains into Lake Koocanusa near Libby.

At the same time he’s fighting the BP proposal, Baucus is also working to stop a separate coal mining project proposed by the Cline Mining Co., in the same area.

“Some places should be off limits,” Baucus said. “It’s that simple. Some places are too important to hunting, fishing, and outdoor recreation.”

Baucus is also making good on his promise to secure dollars to gauge the environmental threats posed by energy development in the Canadian Flathead. He’s working with Sen. Jon Tester to shepherd $1.25 million through Congress to collect baseline environmental data in the area.

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Senator Baucus Press Release