Higgs pitches First Nations on up to $1.6B in revenue with possible shale gas expansion
Pabineau First Nation Chief Terry Richardson says he's opposed to any new fracking
Premier Blaine Higgs is pitching First Nations on hefty revenue potential if they agree to allow new shale gas development in New Brunswick.
But at least one Mi'kmaw chief is already standing in opposition to any new potential fracking because of environmental concerns and worries that it's being used as a political bargaining chip.
Higgs confirmed in an interview that his government sent all chiefs a letter this month outlining how they could potentially see between $800 million and $1.6 billion in revenue — shared among them over 20 years — if a shale gas reserve near Sussex is further developed.
"The potential opportunity for First Nations is an absolute game changer for every First Nations community in this province," Higgs said.
Higgs
said new shale gas development in an area near Sussex known as the
McCully Field could tap into a reserve containing a trillion cubic feet
of natural gas. (Pierre Fournier/CBC)
The move by the Higgs government signals the premier's latest efforts to reignite the industry after former premier Brian Gallant imposed a moratorium on fracking in 2014 following violent protests.
The process of fracking involves injecting a mixture of sand, chemicals and usually water into the ground under high pressure to break rock and capture natural gas that couldn't be obtained otherwise.
It has drawn opposition over fears it could endanger the groundwater supply and potentially have other harmful environmental effects.
Tax-sharing agreement held hostage: chief
The province's proposal wasn't well received by Chief Terry Richardson of Pabineau First Nation in northeastern New Brunswick, near Bathurst.
That's because it came as he, and other Mi'kmaw chiefs, are months away from seeing an end to tax-revenue-sharing agreements that brought millions to communities annually.
Higgs announced he was ending those agreements in 2021, sparking backlash from both Wolastoqey and Mi'kmaw leaders.
Pabineau First Nation Chief Terry Richardson says he's opposed to the idea of resuming hydraulic fracturing in New Brunswick. (Ed Hunter/CBC)
Now Richardson said he feels like Higgs is "holding this tax agreement hostage" as a way to get approval for fracking.
"I mean that's what he's basically doing, is saying 'Well, I took your tax agreement away, but here, look at all this money you can make by agreeing to fracking,'" Richardson said.
Richardson said he's mainly concerned about potential environmental impacts from fracking, adding he hasn't seen any new information to allay those concerns.
And even if he was on board with lifting the moratorium, he doesn't think it would go over well with his community members.
"I don't think it's gonna fly," Richardson said.
"We have to revisit this in our communities and see what our community's perspective is, but I'm almost safe in 100 per cent saying that … unless the technology has changed, there would be a lack of of support for this."
Shale
gas exploration in eastern New Brunswick prompted protests resulting in
RCMP vehicles being burned and dozens of protesters being arrested in
Rexton in fall of 2013. (Andrew Vaughan/Canadian Press)
Mi'gmawe'l Tplu'taqnn Inc. represents Mi'kmaw communities in New Brunswick. Spokesperson Jennifer Coleman said in an email that staff have submitted a proposal to the province regarding resource revenue sharing.
"Under that proposal, all projects would be subject to a rights impact assessment," Coleman said. "We are still waiting to have a meeting on that proposal."
The Wolastoqey Nation, which represents Wolastoqey communities in the province, declined to comment.
In 2019, Higgs quietly carved out a small exemption to the Liberal moratorium for an area near Sussex where Headwater Exploration, formerly known as Corridor Resources, was already extracting gas.
If the moratorium were to be lifted in order to allow new fracking to take place, certain conditions would have to be met, including setting up a process for the province to meet its duty to consult with First Nations.
Higgs said an area known as McCully Field near Sussex is the only site currently being looked at for expanded shale gas extraction.
With the field containing about a trillion cubic feet of natural gas, he said it could supply domestic markets to off-set the reliance on burning coal for electricity, and it could supply European markets looking to turn away from Russian gas.
'An extraordinary opportunity': energy analyst
The prospect of getting First Nations leaders to agree to expanding shale gas extraction in the McCully Field would be "massive" for New Brunswick, said Todd McDonald, president of Energy Atlantica, an energy consulting and trading firm.
"It's an extraordinary opportunity," McDonald said.
Energy
Atlantica president Todd McDonald says new shale gas developments could
satisfy local markets and the leftovers could be exported to other
countries. (Energy Atlantica)
He's been in the industry for 20 years and said he's seen the highs and lows of market prices for shale gas.
Still, he said the business case for extracting shale gas in New Brunswick is "viable," considering consumers here are paying four times more than consumers in Alberta, where the gas is imported from.
"The first portion of any new natural gas could go to meet our own needs … then as we produce more gas than what we need we would actually have gas to export."
Limited window to acquire 'social license'
While there might be a business case for shale gas right now, that's not guaranteed to last, said Herb Emery, an economist at the University of New Brunswick.
That's because natural gas — while cleaner than other fossil fuels — is supposed to only be a "transitional" energy source to be phased out as green energy sources take precedent, he said.
Economist Herb Emery says it's going to take about a decade to develop the resource and get it to market. (CBC)
That means New Brunswick has a limited window to fulfil its duty to consult First Nations, acquire the "social license" to lift the fracking moratorium, and then obtain federal regulatory approvals.
"In order for it to be viable in New Brunswick you'd need to resolve those three things … probably within a time scale of a few years, not a decade, because you're still going to take about a decade to develop the resource and get it to market," he said.
ABOUT THE AUTHOR
Last hope for LNG terminal in Nova Scotia involves U.S.-sourced natural gas, change in N.B. policy
Pieridae Energy says latest proposal is 'less ambitious'
The company has asked the U.S. government for more time to export U.S.-sourced natural gas into Canada for the project. The previous deadline to start work expired in February 2023.
The U.S. gas would supplement the main supply, which is natural gas from New Brunswick. That would require the province to lift its fracking moratorium, said Pieridae president Alfred Sorensen.
"Where the project stands is to re-evaluate the size of the project to something less ambitious, but still a significant size at over $3 billion [U.S.]," Sorenson said.
Hopes rest on Higgs government
He said Pieridae did not kill the project because "the province of New Brunswick has shown a renewed interest to potentially develop their gas resources within the province, and we hold a significant land position in New Brunswick."
"So we're looking to see if that ... is something that can happen and you know if this doesn't work then the project is definitely dead."
Pieridae received approval from the U.S. Department of Energy in 2016 to export U.S.-sourced natural gas via the Maritimes and Northeast pipeline to a proposed LNG terminal in Guysborough County in eastern Nova Scotia.
The company has asked for a five-year extension.
It told U.S. regulators that it received a revised, smaller design for the terminal in January.
"Pieridae USA asserts that granting the requested extension of time will enable Pieridae USA to complete the necessary detailed design, engineering and costing work in order to commence construction and place the Goldboro LNG Project into service," the U.S. Department of Energy said this week when it posted notice of the application.
In its application, Pieridae said it has spent $41 million Cdn on the project to date and is ready to award contracts for construction of all marine facilities, site preparation and camp construction to a First Nations partnership in Nova Scotia.
Why N.B. gas is needed
"We're early days and we certainly keep our filing because we have an interest to maintain our U.S. export license. That gives us just optionality to use U.S. gas during certain times of the year. That's why we've done that. But it will not be the base-load volume that allows for the final investment decision to occur," Sorensen said.
The company has stepped back from the project before, blaming cost pressures and the pandemic.
Sorensen says the option of receiving larger volumes of natural gas from Western Canada are off the table because there is no political will to make that happen, particularly on the federal side.
ABOUT THE AUTHOR
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https://www.pieridaeenergy.com/our-company/board-and-management
403.261.5900
Pieridae Energy Limited
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| Mailing Address: | 1718 Argyle Street Suite 730 Halifax, Nova Scotia B3J 3N6 |
Head Office Address: | 1718 Argyle Street Suite 730 Halifax, Nova Scotia B3J 3N6 |
| Contact Name: | Alfred Sorensen | Principal Regulator: | Non-Reporting Issuer |
| Business e-mail address: | Alfred.Sorensen@pieridaeenergy.com | Short Form Prospectus Issuer: | No |
| Telephone Number: | 902 4924044 | Reporting Jurisdictions: | Non-Reporting Issuer |
| Fax Number: | 902 4925211 | Stock Exchange: | N/A |
| Date of Formation: | May 29 2012 | Stock Symbol: | |
| Jurisdiction Where Formed: | Canada | Auditor: | Ernst & Young LLP |
| Industry Classification: | junior industrial | General Partner: | |
| CUSIP Number: | Transfer Agent: | Burstall Winger Zammit LLP | |
| Financial Year-End: | Dec 31 | Size of Issuer (Assets): | $5,000,001 to $25,000,000 |
Alfred.Sorensen@pieridaeenergy.com
Mr. Sorensen is the CEO of Pieridae Energy Limited since its founding in 2012. He is a chartered accountant and a leader in the energy industry with over 30 years of Canadian and international experience. Mr. Sorensen served as the CEO of Canadian Spirit Resources from 2013 to 2015. From 2003 to 2010 Mr. Sorensen was the CEO and a founder of Galveston LNG. Galveston LNG’s Kitimat LNG project was the first new liquefaction facility permitted in North America in 40 years and is now owned by Chevron and Woodside Petroleum. Prior to Galveston LNG, he was President of Duke Energy Europe and before that President at Duke Energy Canada.
Mr. Reding brings thirty years of energy industry technical and leadership experience to Pieridae. Prior to joining Pieridae in April 2021, Mr. Reding was the Vice President of Operations & Geoscience at NAL Resources Management Ltd., a private exploration and production company with assets in western Canada, until the organization’s strategic combination with Whitecap Resources Inc. Mr. Reding’s experience spans broadly across the upstream and mid-stream energy business and includes health, safety, and environment (HSE), large drilling and asset acquisition investments, complex hydrocarbon gathering and processing infrastructure, asset optimization and integrity, business strategy development, transformational technology implementation, and data analytics. Mr. Reding’s prior experience includes small and mid-sized public and private companies including Norcen Energy, Northrock Resources, Samson Exploration, and Enterra Energy Trust. He is a University of Calgary graduate in Chemical Engineering and is a Professional Member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA).
Mr. Gray has been with Pieridae since January 2020, acting as Vice-President and Controller. He brings nearly 15 years of experience to the role, including five years with PwC, then eight managing accounting, commercial finance and operational readiness for the multi-billion-dollar North West Redwater Partnership, and providing financial modelling and analysis to the Government of Alberta’s Department of Energy. Mr. Gray holds a Bachelor of Commerce degree (BCom) from the University of Calgary, a Graduate Diploma in Leadership from Royal Roads University and is a Chartered Professional Accountant (CPA).
Mr. Dawson has been active in the energy industry for 30 years. He has been involved in the LNG industry for 15 years, including projects in Canada, Australia and the Middle East. Mr. Dawson was one of the principle founders of Galveston LNG. Galveston LNG’s Kitimat LNG project was the first new liquefaction facility permitted in North America in 40 years and is now owned by Chevron and Woodside Petroleum. He has been involved in trading for natural gas, crude oil, electricity and currency markets with several large energy-trading companies from 1992 to 2002. He has served on utility risk management committees of a number of Canadian energy utilities. Mr. Dawson has also sat on the boards of several Canadian junior oil and gas companies.
Ms. McLeod is a Vice President, Engineering at Pieridae Energy Limited. She was previously employed as a SVP Engineering at Ikkuma Resources Corp, and VP Drilling, Completions & Facilities at Manitok Energy. Ms. McLeod graduated with a Bachelor of Science in Chemical Engineering from the University of Calgary and started her Engineering career at ExxonMobil. While at Talisman Energy, Yvonne worked as a technical professional and drilling leader in the Alberta/BC Foothills and internationally in Trinidad, Alaska, Peru and Iraq. She is a Professional Member of the Association of Professional Engineers and Geoscientists of Alberta.
Ms. McLeod, Q.C. is an experienced corporate board director, former senior legal professional and Privacy and Compliance Officer of multiple regulated companies. Ms. McLeod Q.C. has held vice president and General Counsel roles in energy utilities and electricity retail, property development, insurance and financial services companies. She has extensive corporate/commercial legal experience as well as advising on mergers and acquisitions, business development and joint ventures for large infrastructure projects. Ms. McLeod also serves on the boards of Alberta Innovates (Chair, Governance & HR Committee; Member, Executive Committee and Business Planning and Strategy Committee), the Green Line Board (Member, Governance & HR Committee and Budget & Risk Committee), the Beverage Container Management Board (Chair, Governance & Compensation Committee) and MINDD Inc.. Patricia is also the Board Chair of the Calgary Film Centre and a former Vice Chair of Calgary Economic Development. Ms. McLeod is a former Chair of the boards of Calgary Co-operative Association, the Real Estate Council of Alberta, the YWCA of Calgary and cSPACE Projects. She holds an MBA (Queens University) and Bachelor of Laws and a Bachelor of Commerce (University of Alberta) and an ICD.D (University of Calgary/Institute of Corporate Directors).
Mr. Sorensen is the CEO of Pieridae Energy Limited since its founding in 2012. He is a chartered accountant and a leader in the energy industry with over 30 years of Canadian and international experience. Mr. Sorensen served as the CEO of Canadian Spirit Resources from 2013 to 2015. From 2003 to 2010 Mr. Sorensen was the CEO and a founder of Galveston LNG. Galveston LNG’s Kitimat LNG project was the first new liquefaction facility permitted in North America in 40 years and is now owned by Chevron and Woodside Petroleum. Prior to Galveston LNG, he was President of Duke Energy Europe and before that President at Duke Energy Canada.
Mr. Boulanger is the Chief Executive Officer of Leddartech Inc., a private company with a unique, patented solid-state LiDAR technology. He is also the President of Moody Management Inc., a private investment firm. Mr. Boulanger has over 30 years of experience in senior management positions in several industrial sectors with companies such as Shell Canada, Irving Oil, GSI Environment and Prolab Technologies. In 2008, he was the Founder, President and Chief Executive Officer of Groupe Unipex SAS, and President of the Active Ingredients and Specialty Chemicals Division of Atrium Innovations (TSX: ATB) from 2004 to 2008. Before joining Atrium, he was the Founder and President of Quebec International (formerly Pôle Quebec Chaudière-Appalaches) further to a partnership with Phenix Capital. Mr. Boulanger has over fifteen years of experience as a director and officer of numerous companies in the industrial and oil sectors; he currently sits on the boards of Chimie Parachem, Pétrolia and LeddarTech. Mr. Boulanger earned a degree in mechanical engineering from Université Laval in 1981 and graduated from the senior management program at the International Center for Research and Studies in Management (CIREM) in 1990.
Mr. Couillard is currently President and CEO of CouilOil Energy Inc., a private corporation. Mr. Couillard has over 40 years’ experience in domestic and international oil and gas exploration, development and production activities which includes 21 years with Chevron Corporation in a variety of technical and management roles. The majority of his career has been focused on the Western Canadian Sedimentary Basin. Mr. Couillard’s directorships have included Canadian Spirit Resources Inc. (2003-2020), Badger Infrastructure Solutions including its predecessors (2005-2015) and Kensington Energy Inc. (2002-2005). Mr. Couillard holds a Bachelor of Science (Honours) degree in geology and geophysics and is a member of the Canadian Society of Petroleum Geologists (CSPG).
Mr. Dreisinger has over 35 years’ experience in the energy and chemical industry having worked in both domestic and international markets. He is a consultant providing strategic and business development services predominantly in the energy sector. Mr. Dreisinger worked for Nexen (now CNOOC) for 20 years in positions ranging from Vice President Business Operations for the chemical business, to President of Global Energy Marketing and Trading. His skills and experience at Nexen include the LNG development of Aurora LNG in conjunction with their development partner, Inpex. Mr. Dreisinger is currently a director of Connacher Oil & Gas Limited, a privately held Calgary based exploration, development and production company. He is a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA).
Ms. Harding was the Senior Vice President, Chief Legal Officer and Corporate Secretary for Canadian Western Bank Financial Group until her retirement in 2018.She was previously a partner at the law firm Fraser Milner Casgrain LLP, (where she specialized in capital markets and mergers and acquisitions), and Legal Counsel and Exchange Secretary at the Alberta Stock Exchange. Ms. Harding brings extensive board experience having served on the boards of the Alberta Electric System Operator, The Workers’ Compensation Board (Alberta), AC Energy (TSX-V), Alberta Ballet and numerous subsidiaries of the CWB Financial Group. She currently serves on the boards of Meridian Credit Union (Chair, Risk Committee) and the Alberta Securities Commission. Ms. Harding was a recipient of the Canadian General Counsel Award, the Women in Law Leadership Award, and the Queen’s Counsel designation from the Province of Alberta. She holds Bachelor of Education and Bachelor of Laws degrees (University of Alberta), ICD.D (Institute of Corporate Directors) and FSA (Sustainability Accounting Standards Board) designations and is a Fellow of the Canadian Institute of Bankers.
Since 2019, Mr Judson has been a Director of Condor Petroleum, a public Canadian company operating oil and gas developments in Turkey and Kazakhstan. Prior thereto and until November 2019 Andrew was Director and Senior Advisor to Daytona Power Corp, a private company developing Pumped Hydro Storage projects in the SW United States. Prior thereto, and since 2013, Mr Judson was a Managing Director of Camcor Partners Inc., a Private Equity manager focused on the upstream oil and gas industry in the WCSB. Mr Judson has more than 25 years’ experience in Canadian Energy Capital Markets and was a Managing Director with FirstEnergy Capital, an energy focused boutique investment dealer where he was responsible for the Equity Capital Markets group. Mr Judson advised some of the largest institutional investors in Canada, the United States and Europe on energy investments. Mr Judson also currently serves as a Director of The Fraser Institute and Winsport.
Ms. Singh is a financial executive and corporate director. She served as Chief Financial Officer, Vice President Risk Management and Treasurer during her 30-year career in the energy sector where she led more than $4.5B of corporate financings and $11B of global project financings and insurance programs representing privately held and publicly traded Canadian (TSX) and US (NYSE) corporations including Gibson Energy Inc., OPTI Canada Inc., Value Creation Inc., Exxon Mobil Corporation and Mobil Corporation. Ms. Singh serves on the boards of Dynamic Risk Assessment Systems Inc. (Chair, Finance and Risk Committee); Agriculture Financial Services Corp. (Audit and Risk Committees); and, Travel Alberta (Chair, Audit and Finance Committee). She holds an MBA and Bachelor of Commerce (University of Calgary); and a CFA (CFA Institute), CRM (Global Risk Management Institute) and ICD.D (University of Toronto).
| Additional Contact(s): |
| Electronic Documents in this submission: |
| ID | Document Type | File Name |
| A0W7V8 | Other | Panel 5 Exhibit Responsibilities.pdf |
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| Note: an electronic placeholder will be generated for each paper-only document. |
| ID | Document Type | Name |
| Acceptance of Submission/Responsibility | |
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I understand the terms and conditions of submitting electronic documents with the National Energy Board. I waive copyright for use by the NEB and third parties of documents contained in this submission only for the purpose for which the information was provided. I hereby certify that I have electronically submitted the above documents to the National Energy Board. I also certify that the paper submission attached hereto is complete and contains accurate renditions of the electronic documents listed above and, where applicable, the requisite number of hard copies for each paper document listed above. |
| ______________________ | ______________________ |
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| F I L I N G R E C E I P T | |||||||||||||||||||
| The
National Energy Board 444 Seventh Avenue SW Calgary, Alberta T2P 0X8 |
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| Project: Brunswick Pipeline Project | |||||||||||||||||||
| Title: B-56 Witness Panesl 5 policy - Commercial - Project Specific Supply Responsibilities | |||||||||||||||||||
| NEB File Number: 3200-E236-1 | Hearing Order: GH-1-2006 | ||||||||||||||||||
New Brunswick pipeline plan opens East Coast rift
Nova Scotia's Premier fears a proposed pipeline to ship liquid natural gas from near Saint John directly to the U.S. border could scuttle proposals for natural gas projects in his province.
In a recent interview, Rodney MacDonald noted Emera Inc.'s 145-kilometre Brunswick pipeline poses challenges for his government.
Mr. MacDonald said the pipeline -- known as a "bullet" because it bypasses other lines -- could affect tolls charged on the 558-kilometre Maritimes and Northeast pipeline between Nova Scotia and the United States.
"These are all issues that could potentially mean the difference between having a project in Nova Scotia or not having a project," he said.
The two projects currently being considered for liquefied natural gas terminals in Nova Scotia include one proposed by Anadarko Petroleum Corp. for Bear Head on the Canso causeway, and a second by 4Gas Ltd. in Goldboro.
The two Nova Scotian projects have been in a race with a project at the Irving Oil-owned Canaport LNG facility, where giant tankers are expected to deliver the cooled gas from Spanish-owned Repsol YPF SA starting in 2009.
However, the Irving-Repsol project is further along, and is making its proposal before the National Energy Board this fall.
Mr. MacDonald did not go into further detail on why he has concerns, but experts from several Nova Scotia provincial departments describe the Brunswick pipeline as giving the Irving-Repsol project strong cost advantages over the toll prices the Nova Scotia projects would pay.
They say if the Emera pipeline had instead hooked up to the Maritimes and Northeast system, it would have increased volume in the system -- and lowered costs for all users. Both would have to hook up to the end of the Maritimes and Northeast pipeline, which charges a rate based on a region-wide average -- known as a "postage stamp" system.
Meanwhile, the much shorter Brunswick Pipeline would charge based on distance, and is calling for its prices to be secret.
Energy expert Ian Doig, editor of a leading oil and gas industry newsletter, notes competing projects in Nova Scotia are already facing challenges.
Anadarko's bid to create a terminal at Bear Head has been in limbo since it announced it planned to sell the project to U.S. Venture Energy, a private equity firm.
"It doesn't seem reasonable for any buyer to enter a Bear Head purchase until it sees how the NEB deals with the Brunswick matter and how this will affect tolling on the Maritimes and Northeast system," Mr. Doig said.
Despite the challenges to the Nova Scotia projects, provincial officials say they won't be opposing Emera's bid. They fear that might kill the Irving-Repsol project and affect a needed source of natural gas for the region.
The mixed emotions are reflected by the Premier's answers on where the province stands. "Again, because of the concerns, I wouldn't say I'm pro the project, but I'm not adamantly opposed," Mr. MacDonald said.
Peter Milne, a consultant for Anadarko, has filed highly critical evidence before the energy board, arguing the pipeline should have run north to join with the Canadian portion of the Maritimes and Northeast system. He argues that would have reduced rates for all potential users of the line by tens of millions of dollars annually.
However, Steve Rankin, a spokesman for both the Emera and Maritimes and Northeast pipelines, said the reality is that there will be a market for both Irving-Repsol gas and the Nova Scotian projects.
He also said the Brunswick pipeline provides new natural gas supply to the U.S. portion of the Maritimes and Northeast pipeline, and that increased volume will slightly reduce overall toll costs for all users.
Mr. Rankin said that Emera chose the route straight to the United States because it is cheaper and runs parallel to power transmission lines being built by New Brunswick Power Corp. "The project is more economic, and you don't have to do additional reinforcement on the main line," he said.
Maritimes and Northeast is majority-owned by Duke Energy, and Emera has a 12.9-per-cent interest in the project.
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