From: "Tom Hackney" <thackney@island.net>
Subject: GSX Hearing Day 7
Date: March 4, 2003

GSX Hearing Day 7

Tuesday 4 March 2003

This began with GSXCCC's gas supply witness, Rob Woronuk, being sworn in to
testify in defence of his gas supply evidence. GSXCCC submitted evidence to
the effect that conventional gas reserves in WCSB are expected to decline
seriously in the next few years, giving rise to upward pressure on prices.
We believe this shows that GSX is an ill-advised pipeline, as it will make
us dependent on an increasingly scarce (or expensive) resource. GSX PL and
the Province of BC declined to cross-examine Mr. Woronuk. This is likely to
be a strategic decision on their part: the more attention they bring on our
case,  the more it will seem it has credence. Justice Williams asked Mr.
Woronuk about coalbed methane and the likely expensive costs of extracting
it.

After Woronuk was excused, John Duffy, greenhouse gas expert for BC Hydro,
was called. Tim Howard led the cross-examination of Duffy, establishing that
BC Hydro accepts climate change as a major environmental problem, relevant
to GSX, VIGP and BC Hydro's natural gas strategy. Duffy agreed that from a
GHG perspective, it doesn't matter where or how the gas from GSX is burned.
Similarly, the calculation of GHG emissions is a simple ratio of the gas
transported in GSX. This means that one doesn't have to wait to discover the
end user in order to asses the GHG emissions. (In my opinion, this
demonstrated that it is appropriate to attach the GHG liability to GSX.)
Hydro is budgeting to offset 50% of GHG emissions from VIGP from its
inception to 2010. The BC Hydro GHG offset plan was largely undertaken in
response to the perception of public opposition to GSX/VIGP. Duffy admitted
that it would be feasible to arrange for BC Hydro's offset program to report
to some public regulatory body, rather than (or as well as) the proposed
private oversight. He also admitted that it should be possible to purchase
100% offsets.

I followed Tim Howard in cross. I attempted to emphasize the uncertain
nature of classifying GHG offsets, giving the example that the Hartland
landfill captures its methane without gaining an offset credit, while BC
Hydro pays offset credits to the Port Mann landfill project for an
essentially similar project.

Justice Williams asked if it would be feasible to store the CO2 in caverns
on Vancouver Island. Elizabeth Quarshie also showed interest in the GHG
offset question, asking several questions about Hydro's offset plan in
relation to the Kyoto commitment and the issue of offset verification.

Duffy was excused, and after lunch, Panel 5 was brought, the panel on
Engineering matters and Environmental and Socio-Economic effects.

Kevin Maher asked about the SCADA monitoring system and the leak detection
capability.

Francis Hugo (on behalf of the Braithwaite Estates Improvement District,
which supplies water to about 250 homes in Cobble Hill from the one aquifer
that underlies much of the South Cowichan region) began a long cross-
examination on ground water issues, which he expects to continue for a
couple of hours Wednesday. George Walker (of the Arbutus Ridge Ratepayers
Association) will also ask quesions.

Panel 5 is the one where the marine impacts will be considered. Hugo and the
Marine Coalition as represented by Susie Washington Smyth, are expected to
keep this panel under cross-examination for at least a couple of days.

Tom Hackney
BC Chapter - Sierra Club of Canada
and GSX Concerned Citizens Coalition
(250) 381-4463; fax (250) 381-4407
thackney@island.net