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Enbridge Inc. will face tough questions from intervenors at the Northern Gateway Joint Review Panel's hearing in Edmonton this afternoon.

Among them are the Government of BC, the Alberta Federation of Labour, Ecojustice (representing ForestEthics Advocacy, Living Oceans Society and Raincoast Conservation Foundation) and various First Nations communities.

The proposed Northern Gateway pipeline involves constructing two pipelines approximately 1,170 km long carrying up to 525,000 barrels per day of diluted bitumen (dilbit) from Bruderheim, AB to Kitimat, BC. The other pipeline would carry 193,000 barrels of condensate per day east to Bruderheim.

Questions will center around issues such as the economic need for the Project, the potential impacts of the proposed Project on commercial interests and financial and tolling matters, according to a release.

The proceedings are being webcast live from 2 pm to 6 pm Mountain (MT), 1 pm-5 pm Pacific Standard (PST). Note: full transcripts are also available after the hearing at the official Joint Review Panel site hearings page.

17:58: Committee closes; will reconvene tomorrow morning at 09:30 MT.

17:57: Chahley: I can't believe how fast times goes when we're looking at these figures.

17:55: Five minutes remaining-- Chahley is asking detailed questions about figures used in the economic tables.

17:49: Now Chahley is fact-checking year-by-year the export numbers...

17:44: Riffling of pages as Chahley hones in on specific economic numbers on report.

17:38: Chahley confirms that those 17 additional modules are not listed. Mansell confirms.

17:37: Chahley asks where in the report Mansell lists these 17 modules. Mansell points to a brief note on page 37.

17:35: Mansell explains that his unique economic model is a framework that has input/output model at its center. It has 17 modules for oil sands, conventional oil and gas, electrical sources, demographic changes, population aging, migration. He has based his modelling on the Alberta economy, and applied nationally over time.

17:34: Chahley asks what else Mansell adjusted for, in addition to labour productivity. Mansell said loyalties are one factor. He flips through his reports for more factors.

17:34: Mansell says that labour productivity changes over time, otherwise there's an overestimate of employment impact.

17:33: Chahley is asking whether the modelling used is static, Mansell insists it's dynamic. Mansell said that "it's much more than simple application of static framework."

17:31: Now Mansell is talking about "varying impact year by year."

17:30: Chahley and Mansell do not seem to be on the same page on the economic modelling factors used to determine the economic impact of the proposed Northern Gateway pipeline.

17:23: Chahley asks further questions on economic impacts of pipeline year by year.

17:15: Chahley now referring to specific models listed in reports by expert witnesses.

17:11: Chahley: this panel has to look at the best interests of Canadians, and need to look at short, mid and long term impact of pipeline-- that's why she says she's spending so much time focusing on that aspect.

17:10: Pipeline is a long term investment-- 30 years is the approximate timeline for looking at economic modeling. (one of the expert witnesses)

17:06: Chahley gets blunt- says when you spend $5.5 billion on a pipeline, that's a shock to the economy, is it good or bad? Questions directly Mansell's economic modelling which shows the pipeline would be a positive gain for the Canadian economy.

17:02: Chahley still grilling Mansell about oil prices and productivity.

16:53: JRP back in session. Chahley dives right back into specific methodologies used in reports by Mansell.

16:39: Break called.

16:17: Chahley keeps pressing on whether refining crude oil is out of the question. Mansell denies it's out of the question.

16:09: Detailed questions about condensate prices (increase/decrease).

16:06: Confirmed (not clear who by the webcast).

16:05: Chahley asks whether Enbridge knows what Asian countries will do with condensate oil once it arrives.

16:00 Carruthers: Going into details of types of oil that can be used to move it through the pipeline system.

15:57: Chahley: Some of it is dilbit, some of it is synbit, how much of each will go through pipes will be determined by how much can be transported by rail, correct?

15:55: Chahley honing in on what specific types of dilbit and synbit will flow through the pipelines.

15:53: Carruthers: confirms that pipelines carry dilbit and synbit (50/50 blend of bitumen and synthetic crude oil).

15:51: Chahley now looking up shipment figures.

15:49: Priddle: Reminds Chahley that systems built as crude oil pipelines are now carrying several grades of crude oil and refined oil products.

15:48: Chahley: The problem with this pipeline is shipping away unproccessed resources if they were processed in Canada it would keep jobs in Canada.

15:40: Earnest won't answer that question.

15:39: Chahley: Enbridge's interests are for corporate bottom line, not for public interest. Asks whether expert witnesses whether they can agree on that.

15:34: Earnest still not answering clearly. Fischer said Enbridge has committed "substantial" amount of money-- close to $130 million to do an "analysis" of economic benefits.

15:29: Earnest dodges Chahley's questions about the economic benefits of the proposed Northern Gateway pipeline.

15:24: Chahley is going to question mostly about economic benefits of the pipeline.

15:19: Chahley asks whether Northern Gateway and the expert witnesses will accept that between 89 and 89 per cent of the benefits arrives is due to projected increase in oil prices?

15:17: Leanne Chahley from Alberta Federation of Labour begins presentation.

15:16: JRP back in session.

15:05: Alberta Federation of Labour requests five minute break.

15:04: Witnesses now available for questioning.

15:03: Carruthers: Northern Gateway should get approval, while addressing 'remaining concerns.'

14:59: Carruthers: Northern Gateway recognizes the importance of questions re: the Michigan oil spill.

14:55: Carruthers: "Create a framework that puts reconciliation over division, fact over rhetoric..."

14:55: Curruthers: Has taken note of concerns particularly in British Columbia. Starting today Enbridge will respond. It will through witness panel do their best through Joint Review Panel to demonstrate economic benefits as well as addressing concerns.

14:48: Curruthers confirms he is President of Enbridge Northern Gateway.

14:43: Going now into specifics of changes in reports authored by witnesses. None of the changes have a significant impact on their findings.

16:34: Further detailed questioning prices of crude oil.

14:54: Curruthers: Majority of those who have appeared before the panel have argued that projects should be refused.

14:53: Curruthers: compares Enbridge to Canadian National Railway.

14:52: Panel accepts witnesses as experts in these fields.

14:51: Moderator asks witnesses to be qualified as expert witnesses to the Board:

Mansell: expert on economics

Earnest: expert on petroleum refining and transportaion

Priddle: expert in enegry policy and regulations of pipelines on the National Energy Board

14:38: Now going into specific appendices on reports, going through each witness.

14:32: Continuing to confirm who wrote what report, and to confirm all evidence in reports as accurate.

14:30: Correction of minor errors on report.

14:25: Swearing in of expert witnesses, who wrote reports on Enbridge Northern Gateway: Dr.J. Ruitenbeek, Mr.Mark Anielski, Dr. Robert Mansell, John William Carruthers (president of Enbridge Northern Gateway), Paul William Fischer, Neil Earnest, Roland Priddle. Also present near the panel (not witnesses) Dr.Peter Eglington Mr.Murray Fraser, Drew Armstrong.

14:20: Panel moderator announces that members of the Joint Review Panel are not available for media interviews during breaks or after the hearing.

14:14: Reading of various intervenors and questioners.

14:00: Mountain Time (MT)- The hearing in Edmonton, AB begins.

Vancouver Observer, Tuesday September 4, 2012

Byline: Beth Hong (live blog)

Compares pipeline to Canadian Pacific Railway and the St. Lawrence Seaway

Enbridge has told the National Energy Board that the company's $6-billion plan to build a pipeline from the Alberta oilsands to the B.C. coast is similar to other massive industrial projects in Canada's history.

Speaking at a hearing in Edmonton Tuesday, John Carruthers, president of Enbridge's Northern Gateway Pipelines division, compared the project to the Canadian Pacific Railway and the St. Lawrence Seaway, which he says were controversial but ended up benefiting the country.

"Our project is no different," Carruthers told the three-member panel.

"There is a path forward that will ... provide a significant improved quality of life for all Canadians, including Aboriginal Canadians, while protecting the environment."

Calgary-based Enbridge Inc. wants to build the $6-billion pipeline to transport raw bitumen from the oilsands to Kitimat, B.C., where it can then be shipped to Asian markets.

The project has met with widespread opposition in British Columbia, particularly among environmentalists and First Nations people who worry about the potential damage to inland and coastal areas that would be caused by a pipeline leak.

Many opponents have pointed to damage done when a 2010 spill from an Enbridge pipeline damaged waterways and wetlands near Marshall, Mich., and cost $800 million to clean up.

Carruthers directly referenced the Marshall spill in his opening remarks, saying that the company had made improvements to the safety of its pipelines.

"Canadians have asked why, and how that event happened," he said. "Northern Gateway understands the importance of those questions and will answer them as this hearing proceeds."

Labour group questions Enbridge numbers

The Alberta Federation of Labour spent the afternoon questioning Enbridge's experts. The group, which represents organized labour in Alberta, plans to argue that the project is not in the public's interest because it will send refining jobs out of the province.

There is also political opposition to the project. B.C. Premier Christy Clark sparked a battle with her Alberta counterpart, Alison Redford, when she announced that British Columbia would not approve the project unless conditions, including a larger share of royalties, were met.

Two weeks have been set aside for the Edmonton portion of the hearings. The panel will move on to Prince George in October and Prince Rupert in November and December.

Final arguments will be presented to the panel next spring, which must make a recommendation by the end of 2013.

Ottawa is expected to make a decision with six months of the panel's review.

CBC News, Tues Sept 4 2012

Compares pipeline to Canadian Pacific Railway and the St. Laurence Seaway

Enbridge has told the National Energy Board that the company's $6-billion plan to build a pipeline from the Alberta oilsands to the B.C. coast is similar to other massive industrial projects in Canada's history.

Speaking at a hearing in Edmonton Tuesday, John Carruthers, president of Enbridge's Northern Gateway Pipelines division, compared the project to the Canadian Pacific Railway and the St. Lawrence Seaway, which he says were controversial but ended up benefiting the country.

"Our project is no different," Carruthers told the three-member panel.

"There is a path forward that will ... provide a significant improved quality of life for all Canadians, including Aboriginal Canadians, while protecting the environment."

Calgary-based Enbridge Inc. wants to build the $6-billion pipeline to transport raw bitumen from the oilsands to Kitimat, B.C., where it can then be shipped to Asian markets.

The project has met with widespread opposition in British Columbia, particularly among environmentalists and First Nations people who worry about the potential damage to inland and coastal areas that would be caused by a pipeline leak.

Many opponents have pointed to damage done when a 2010 spill from an Enbridge pipeline damaged waterways and wetlands near Marshall, Mich., and cost $800 million to clean up.

Carruthers directly referenced the Marshall spill in his opening remarks, saying that the company had made improvements to the safety of its pipelines.

"Canadians have asked why, and how that event happened," he said. "Northern Gateway understands the importance of those questions and will answer them as this hearing proceeds."

Labour group questions Enbridge numbers

The Alberta Federation of Labour spent the afternoon questioning Enbridge's experts. The group, which represents organized labour in Alberta, plans to argue that the project is not in the public's interest because it will send refining jobs out of the province.

There is also political opposition to the project. B.C. Premier Christy Clark sparked a battle with her Alberta counterpart, Alison Redford, when she announced that British Columbia would not approve the project unless conditions, including a larger share of royalties, were met.

Two weeks have been set aside for the Edmonton portion of the hearings. The panel will move on to Prince George in October and Prince Rupert in November and December.

Final arguments will be presented to the panel next spring, which must make a recommendation by the end of 2013.

Ottawa is expected to make a decision with six months of the panel's review.

CBC News, Tuesday, September 4, 2012 

Two-Tier Minimum Wage

• lberta's poorly written two-tier minimum wage system is open to abuse by employers who are taking advantage of these laws to rip off the lowest-paid workers in Alberta. West End Swiss Chalet is one example. For more information see Aug 31 AFL release and backgrounder

AFL's 100 Years

• sure to have a look at our insert in the Edmonton Journal on Friday, August 31, 2012 – a special Labour Day message from Gil McGowan and a 10 page special on the past and present struggles of workers in Alberta.

Government trying to erase agricultural workers by no longer reporting farm fatalities

• The Alberta government's decision to stop reporting farm fatalities is an attempt to move the issue to the back burner and off the public radar. Farm workers are already left unprotected under health and safety regulations. For more information see Aug 20 AFL release.

Government documents reveal source of Harper's low-wage agenda

• nternal federal government documents show the source of Harper's low-wage agenda. Last year, a select group of CEOs and other business leaders were invited by the federal Conservatives to an annual closed-doors conference where they urged the Tories to adopt measures to reduce the pay of Canadian workers, limit union power by enacting U.S.-style right-to-work legislation, and allow two-tier health care. For more information...

 AFL shows government using bogus labour-shortage figures

• The government is using bizarre calculations to show a catastrophic "labour shortage" even though their own figures show a labour surplus for every year until 2021. The AFL revealed that the government's own figures show the supply of labour exceeding the demand for labour – a labour surplus – well into the future. For more information see July 25 AFL release and backgrounder

New Study shows billions in lost royalty revenue after Northern Gateway

• he Alberta Federation of Labour (AFL) and Parkland Institute released a study showing Albertans will let billions slip through their fingers if the Northern Gateway Pipeline is approved and constructed. If Alberta met royalty targets in place when Lougheed was Premier, the province would have $1 trillion in the Heritage Fund by 2039. For more information... see Aug 9 AFL release and backgrounder

Statement from Gil McGowan on the proposed takeover of Nexen by the China National Offshore Oil Corporation (CNOOC)

• Does it matter who owns the oil sands? You bet it does!" explains AFL president Gil McGowan. "If foreign governments are allowed to expand in Alberta through companies like China National, they'll develop the oil sands in their own best interest, not in the best interest of Canadians." For more information...July 24 AFL release

Urgent Action

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UFCW 1118 workers on strike for fair wages and working conditions

• FCW 1118 sisters and brothers at Lilydale Foods' North Edmonton shop are on strike for wages comparable to those in other Lilydale plants. The employer refuses to pay wages on par with other Lilydale plants despite the fact that these workers work harder by handling larger and heavier poultry. The employer has cut the number of workers on the floor, meaning those left on the floor have to work harder while their wages have remained the same. Workers are also asking for a guaranteed minimum number of hours per week. There are about 200 workers on strike in shifts of about 75. Support these workers on the picket line at 127 Avenue and 76 Street in Edmonton. Pickets will be going in shifts between Monday and Friday, 6:00 AM and 6:30 PM.

Events

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September2:Calgary Pride Parade

September 3: EDLC Labour Day BBQ

September 3: Labour Day

September 5: Official Opening Historical Display, Alberta Provincial Museum

September 7: AFL Education Committee

September 8: World Literacy Day

September 10: AFL Women's Committee

September 11: AFL WOCAW Committee

October 1: AFL Pride and Solidarity Committee

October 2-3: AFL Executive Council

October 8: Thanksgiving

October  14-17: CEP National Convention

October 17: National Day for the Eradication of Poverty

October 18: Persons Day

November 23-25: Parkland Fall Conference

January 14-19, 2013: AFL Weeklong School

EDMONTON, Alberta (Reuters) - Enbridge Inc's proposed Northern Gateway oil pipeline to Canada's Pacific Coast could cost thousands of high-paying refining jobs in Alberta, a labor group warned on Tuesday as the company faced its first day of grilling at public hearings into the contentious project.

Alberta Federation of Labour contends the C$6 billion ($6.1 billion) line, which would ship 525,000 barrels a day of oil sands-derived crude to tankers bound for Asia, would mean 5 percent less refinery throughput at home and the loss of 8,000 jobs.

Enbridge and the oil industry say it would open up lucrative new markets for growing volumes of Canadian crude in regions overseas where the producers can escape the deep price discounts their oil now sees in the North American market.

"China is in the midst of a building boom in terms of refineries and refining capacity, so our fear is that if our policymakers allow this pipeline to be built we'll end up in a situation where our own homegrown refineries are no longer economic and they'll close down," federation President Gil McGowan said during a break in the hearings.

"We'll end up in a situation where we're sending our raw bitumen oil to China and then buying back the refined product."

Enbridge's evidence shows the project creating 907,067 direct and indirect jobs across the country through 2048.

The current phase of the hearing into the 1,177 km (731 mile) pipeline across the Rockies is examining its financial need and economic benefits to the industry and Canada. Enbridge's numbers show a benefit to the industry of at least C$24 billion through 2035.

It is the first time since proceedings began in January before a federal review panel that Enbridge has had the chance to make its own case for the development, a key part of a strategy to diversify oil markets and forge greater energy trade ties with China and other Asian countries.

The other portion is inviting more Asian investment into the country, as shown by CNOOC Ltd's $15.1 billion bid for Calgary-based Nexen Inc, an oil sands producer.

Until now, the company has watched as many aboriginal communities and environmental groups harshly criticized the proposal, saying it would bring unnecessary risks of oil spills, both along the rugged route and in coastal waters.

Enbridge's case has been undermined by oil spills on other parts of its system and a highly critical report by U.S. regulators into a 20,500 barrel leak in Michigan in 2010.

Enbridge Northern Gateway President John Carruthers acknowledged the opposition in his opening statement, saying that the company has taken note of public concerns.

He compared Northern Gateway pipeline to others major infrastructure projects that have brought large economic rewards to Canada, including the Canadian Pacific Railway, St. Lawrence Seaway and TransCanada pipeline.

He said it was possible to highlight its major economic benefits while noting Embridge was taking its environmental responsibilities seriously.

"It involves assessing, in the same objective fashion, and according to the same standards, the information or evidence that has been presented by those who are opposed to the development of our project," he told the panel. "And it culminates in approving the project under a framework of conditions that will promote reconciliation over division, and fact over rhetoric."

Alberta Federation of Labour was first to grill Enbridge's witness panel, made up of authors if its financial and economic reports, and its lawyer took most of the opening afternoon questioning them on the reliability of long-term forecasting.

The federation has been front and center calling for more plants to extract and refine bitumen oil from Alberta's vast oil sands in order to create jobs, rather than shipping raw materials overseas. The industry has said the market should decide if processing plants are required and that there is enough oil to go around. ($1= $0.99 Canadian)

Rueters Canada, Tuesday September 4, 2012

Byline: Jeffrey Jones

Enbridge and their supporters in the Harper and Redford governments like to claim the Northern Gateway pipeline will create thousands of jobs for Canadians.

Those claims don’t stand up to the facts.

The real story on Northern Gateway jobs – 228 permanent jobs

The Northern Gateway pipeline will create only 228 permanent jobs.  For all the millions of dollars worth of oil sands resources flowing out of Canada, we will see just 228 jobs created, most of them in B.C.

Four reasons why Enbridge’s jobs claims don’t hold water (or oil)

1.       Enbridge’s own assessment of construction work is an average of 1,850 jobs per year for three years. Enbridge likes to claim there are 5,536 “person-years” of construction employment on the line with Northern Gateway. That sounds like a lot. But when translated into numbers ordinary people can understand, it’s an average of 1,850 actual jobs per year for just three years. Those jobs are short-lived. They’re only around for three years, and then those workers will be laid off.

2.       The steel pipe needed for the Northern Gateway pipeline won’t likely be made in Canada. Sinopec – China’s state oil company – has already said they would be happy to build the pipeline, and the pipe for Keystone XL was not built in North America. Enbridge’s claims that we’d gain thousands of jobs in steel manufacturing are shaky, at best.

3.       Enbridge likes to claim there will be 63,000 person-years of employment from the Northern Gateway project. If that sounds too good to be true, it likely is. These aren’t real, guaranteed jobs. They’re a guess based on what economists call “induced” effects estimated by trying to count spinoffs. Enbridge came up with these astounding figures, but didn’t release their math to the public.

The real story on jobs – layoffs and closures at Canadian refineries a virtual certainty

The only way the Northern Gateway pipeline makes economic sense for its foreign-owned backers is if the price of bitumen goes up by quite a bit. And this would make refining oil in Canada much more expensive. In fact, Enbridge predicts we will refine less oil in 2018 than we do now. Most of that reduction will be in Western Canada. Refineries will close, and people will lose good-paying, long-term jobs.

A single refinery can employs 2,000 people for a period of 30-40 years. In other words, we could have more employment, for much longer, with real economic benefits, if we refine our oil sands resources in Canada.

An independent assessment of the number of jobs Canada could have – if we upgraded and refined all the bitumen products going down the Northern Gateway pipeline – puts the total amount of employment at 26,000 good jobs going to China.

Enbridge wants Canadians to trade 26,000 good, long-term jobs, along with all the taxes and other spinoffs that come with upgraders and refineries, for 228 permanent pipeline jobs. It’s not a fair trade.

About the AFL Northern Gateway reality check series

 The Alberta Federation of Labour is a full intervener in the Northern Gateway Pipeline hearings.

The debate around the Northern Gateway pipeline is heated, and we hear governments and industry saying all kinds of things to justify locking Canada in to being a raw resource producer, but never move up the value chain with our natural resource wealth.

“The Northern Gateway pipeline hollows out our value-added industries, imposes higher oil prices on consumers, and rewrites the rules of Canada’s oil industry. Gateway will reduce the amount of oil refined in Canada and ship thousands of jobs to China.”

- Gil McGowan, President, Alberta Federation of Labour.

Enbridge’s figures show dramatic drop in Western Canada refinery activity: AFL

EDMONTON – Western Canada’s refineries will lose tens of thousands of barrels of oil per day when the Northern Gateway pipeline is constructed, according to a new analysis released by the Alberta Federation of Labour.

The AFL is before the Joint Review Panel on the Northern Gateway pipeline in Edmonton. AFL President Gil McGowan says Western Canadian refineries – most of which are in Alberta – are in for a massive drop in throughput due to the Northern Gateway pipeline.

“The drop in refinery activity will mean thousands of jobs lost,” says Gil McGowan, President of the Alberta Federation of Labour, which represents 150,000 working Albertans, including 25,000 in the energy sector and energy-related construction.

“This pipeline will ship our raw resources to refineries in China. It will raise the price of bitumen and permanently undermine our ability to refine oil sands in Canada,” says McGowan. “It will hollow out our refining industry and impose higher costs on our refineries, and ultimately, Canadian consumers.”

The AFL report examined Enbridge’s predictions for refinery throughput, as contained in their evidence before the Northern Gateway Joint Review Panel.  Most of the losses in refinery throughput are likely to be in Western Canada. Western Canada is forecast, by Enbridge, to shed 46,000 barrels per day in refinery throughput. 

Job loss estimates were modeled using a recent report by the Conference Board of Canada. A 5 per cent reduction in refinery throughput results in approximately 8,000 jobs lost.

The full AFL report, released as the Edmonton hearings on the economic impact of the Northern Gateway pipeline, can be found here.

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MEDIA CONTACT: 

Gil McGowan, President Alberta Federation of Labour at 780-218-9888 (cell) or 780-483-3021 (office)

“Canada needs new markets in Asia!”

The Enbridge case for the Northern Gateway pipeline rests on fetching a higher price for bitumen from Asian customers. The argument from Enbridge and their friends in the Harper and Redford governments is that Alberta’s oil is “trapped” in North America, and we can get a higher price from customers in Asia.

Indeed, without the increase in the price of oil, Enbridge’s economic case for the Northern Gateway pipeline evaporates.

Four reasons why the “New Markets” argument from Enbridge and the governments who support them are questionable at best

But will the Northern Gateway pipeline actually deliver what they say?

1. The oil is going to China. Enbridge’s own filings of evidence show the only refineries capable of refining the products Enbridge expects to ship on the Northern Gateway Pipeline are in China. Eventually, Enbridge says some products will go to Taiwan and Korea, but those exports are further into the theoretical future.

2. Bitumen needs to be diluted with something in order to ship it. Bitumen a thick, sticky, tar-like substance that needs lighter fluids added to it in order to make it flow down a pipeline. Enbridge has only today disclosed their forecasts for the cost of condensate and/or diluent – on the first day of the hearing and with little time for the public to examine it. The cost of diluent has a massive effect on the price of oil in North America. Because we don’t know the future market, supply, and cost of condensate and/or diluent, we can’t know whether Enbridge’s claims of a “price uplift” for bitumen are grounded in reality or not.

3. Will the government of China and their state-owned oil companies pay market prices for bitumen? Northern Gateway doesn’t opens up Canadian oil to a “free market” in Asia – it’s a market dominated by China, Russia, and Saudi Arabia – none of whom are free market, open economies like Canada. Making predictions – as Enbridge has done – about what kinds of prices our oil will fetch, and assuming normal “free market” principles, is questionable at best.

4. The question before us is not whether Canada sells petroleum products on the world market. We already do this. The question is what we are selling. Are we selling the product that fetches the lowest price and creates the fewest, most temporary jobs? Or are we refining our oil sands wealth in Canada, and using the resource to build a more sustainable economy?

About the AFL Northern Gateway Reality Check Series

The Alberta Federation of Labour is a full intervener in the Northern Gateway pipeline.

The debate around the Northern Gateway pipeline is heated, and we hear governments and industry saying all kinds of things to justify locking Canada in to being a raw resource producer, but never move up the value chain with our natural resource wealth.

“The Northern Gateway pipeline hollows out our value-added industries, imposes higher oil prices on consumers, and rewrites the rules of Canada’s oil industry by reducing the amount of oil refined in Canada and shipping those jobs to China.”

-          Gil McGowan, President, Alberta Federation of Labour.

Compares pipeline to Canadian Pacific Railway and the St. Lawrence Seaway

Enbridge has told the National Energy Board that the company's $6-billion plan to build a pipeline from the Alberta oilsands to the B.C. coast is similar to other massive industrial projects in Canada's history.

Speaking at a hearing in Edmonton Tuesday, John Carruthers, president of Enbridge's Northern Gateway Pipelines division, compared the project to the Canadian Pacific Railway and the St. Lawrence Seaway, which he says were controversial but ended up benefiting the country.

"Our project is no different," Carruthers told the three-member panel.

"There is a path forward that will ... provide a significant improved quality of life for all Canadians, including Aboriginal Canadians, while protecting the environment."

Calgary-based Enbridge Inc. wants to build the $6-billion pipeline to transport raw bitumen from the oilsands to Kitimat, B.C., where it can then be shipped to Asian markets.

The project has met with widespread opposition in British Columbia, particularly among environmentalists and First Nations people who worry about the potential damage to inland and coastal areas that would be caused by a pipeline leak.

Many opponents have pointed to damage done when a 2010 spill from an Enbridge pipeline damaged waterways and wetlands near Marshall, Mich., and cost $800 million to clean up.

Carruthers directly referenced the Marshall spill in his opening remarks, saying that the company had made improvements to the safety of its pipelines.

"Canadians have asked why, and how that event happened," he said. "Northern Gateway understands the importance of those questions and will answer them as this hearing proceeds."

Labour group questions Enbridge numbers

The Alberta Federation of Labour spent the afternoon questioning Enbridge's experts. The group, which represents organized labour in Alberta, plans to argue that the project is not in the public's interest because it will send refining jobs out of the province.

There is also political opposition to the project. B.C. Premier Christy Clark sparked a battle with her Alberta counterpart, Alison Redford, when she announced that British Columbia would not approve the project unless conditions, including a larger share of royalties, were met.

Two weeks have been set aside for the Edmonton portion of the hearings. The panel will move on to Prince George in October and Prince Rupert in November and December.

Final arguments will be presented to the panel next spring, which must make a recommendation by the end of 2013.

Ottawa is expected to make a decision with six months of the panel's review.

CBC News, Tuesday Sept 4 2012

TUESDAY BILLS

* Northern Gateway Hearings. The Alberta Federation of Labour says the Enbridge pipeline project will actually eliminate Canadian jobs.

Take those jobs and shove them. Enbridge says the Northern Gateway will employ thousands of people -- but the Alberta Federation of Labour says the oil company is giving us the business.

As It Happens, the Tuesday edition, Tuesday Sept 4 2012