The Panel asked these questions of Parties to the GH-4-2001 Proceeding:

(1) Under the Canadian Environmental Assessment Act or under the National
Energy Board Act, or both, does this Panel have the authority to consider
the environmental effects of:
. the combustion of the gas proposed to be transported;
. the combustion of the gas at the existing Campbell River ICP facility; and
. the combustion of the gas at proposed new generation facilities?

(2) If this Panel has the authority to consider these environmental effects,
should it consider them?

The Panel answered these questions thus:

Conclusion

In summary, the Panel has determined that a consideration of the
environmental effects of the combustion of the gas at the proposed new
generation facility is relevant to its determination under section 52 of the
NEB Act. While the Panel has determined that this matter is relevant to the
proceeding before it, it has not determined what weight it will be given.
That question is not now before this Panel and was not a part of the
questions posed to the Parties. The weight to be given to this evidence will
be determined by the Panel during the course of the proceeding or upon its
conclusion. This issue will be added to the List of Issues to be considered
during the hearing of this matter.

Furthermore, under the CEA Act there are two areas where the environmental
effects of the combustion of the gas might be considered by the Panel.
First, the environmental effects of the combustion of the gas to be
transported may ultimately be included in the Panel's consideration of
cumulative environmental effects of the GSX Canada Pipeline. Whether the
effects of the combustion of the gas will act cumulatively with the effects
from the pipeline is not clear at this time. The record will likely be
further developed on that issue and the Panel may need to determine the
likelihood of the occurrence of cumulative effects resulting from the
environmental effects of the pipeline and those of projects or activities
that will burn the gas to be transported and which have been or will be
carried out. The issue of the cumulative effects of the GSX Canada Pipeline
has already been included in the List of Issues.

Second, in the course of the development of the record in relation to the
purpose of, need for and alternatives to the GSX Canada Pipeline, the Panel
may be asked to consider the environmental effects of the combustion of the
gas to be transported. Those factors have already been included in the List
of Issues to be considered during the hearing. A determination as to what
the Panel will consider in conjunction with those factors has yet to be
made.

Finally, the Panel notes that the Terms of Reference require it to consider
the comments from the public received during the review. While the Panel is
unable to actively consider some of those comments insofar as they relate to
matters outside the scope of the review, the Panel does have the ability to
reflect those comments in its report to the Minister, as it deems
appropriate, and it intends to do so.

Directions as to the evidence to be filed in relation to the environmental
effects of the combustion of the gas at the proposed new generation facility
and the timing of its filing will be provided in conjunction with a letter
setting out the revised schedule in relation to the hearing of this
application.

The following issue has been added to the list of issues for the proposed
GH-4-2001 hearing:

11. the environmental effects of the combustion of gas at the proposed new
generation facility, being considered for Duke Point on Vancouver Island.

A revised List of Issues is attached.

Yours truly,

Michel L. Mantha

Attachment 2 to JRP Letter
Dated 31 May 2002
File 3200-G049-1

Revised List of Issues

The Joint Review Panel has identified, but does not limit itself to, the
following issues for consideration in the hearing:

1. The economic feasibility of the proposed GSX Canada Pipeline having
regard to, among other things:

- the outlook for long-term demand for natural gas in the markets proposed
to be served by the proposed pipeline;
- the outlook for the long-term supply of natural gas available to be
transported on the proposed pipeline;
- the ability of the proposed GSX Canada Pipeline Project to attract volumes
to its system over the long term; and
- project financing with reference to the corporate structure of the
Applicant and financial arrangements with related parties.

2. The potential environmental and socio-economic effects of the proposed
GSX Canada Pipeline Project including those factors set out in subsections
16(1) and 16(2) of the Canadian Environmental Assessment Act as described
below:

- the environmental effects of the Project, including the environmental
effects of malfunctions or accidents that may occur in connection with the
Project and any cumulative environmental effects that are likely to result
from the Project in combination with other projects or activities that have
been or will be carried out;
- the significance of the effects referred to in the paragraph above;
- comments from the public that are received during the review;
- measures that are technically and economically feasible and that would
mitigate any significant adverse environmental effects of the Project;
- the purpose of the Project;
- alternative means of carrying out the Project that are technically and
economically feasible and the environmental effects of any such alternative
means;
- the need for, and the requirements of, any follow-up program in respect of
the Project;
- the capacity of renewable resources that are likely to be significantly
affected by the Project to meet the needs of the present and those of the
future;
- need for the Project;
- alternatives to the Project;
- a description of the present environment which may reasonably be expected
to be affected, directly or indirectly, by the Project, including adequate
baseline characterization;
- measures to enhance any beneficial environmental effects; and
- proposal for contingency and emergency response plans.

3. The potential impact on landowners and communities affected by the
selected route of the proposed pipeline, including:

- The potential impact of the 30 metre safety zone; and
- The potential impact on farming operations.

4. The appropriateness of the routing and location of the proposed
facilities, land requirements and land rights acquisition process.

5. The safety of the design, construction, operation and emergency response
planning for the proposed Project, including the potential for the
occurrence of and consequences of failures, malfunctions or accidents.

6. The reasonableness of the proposed tolling methodology.

7. The terms and conditions to be included in any certificate which may be
granted.

8. The adequacy of consultation with First Nations regarding the proposed
Project.

9. The potential impact of the proposed Project on First Nation communities,
traditional use activities, and their treaty and aboriginal interests.

10. The ability of the Applicant to manage risk and financial liabilities
related to the construction, operation, and decommissioning of the proposed
Project, and pipeline failures, malfunctions and accidents.

11. the environmental effects of the combustion of gas at the proposed new
generation facility, being considered for Duke Point on Vancouver Island.

NDB Filing ID A0E1W1 ... PDF