The Government of Canada Response to the Environmental Assessment Joint Review Panel Report of the Proposed Rabaska Project - Implementation of a Liquified Natural Gas Terminal (Archived)

Description of the Project

The Project submitted by the proponent Rabaska is for the establishment and operation of a Liquefied Natural Gas (LNG) terminal in Levis near Quebec City. The Project consists of a number of principle components, representing an $840 million investment: (i) up to 60 deliveries per year by LNG tankers with a capacity of ≤ 216,000m³; (ii) maritime installations including a jetty to accommodate tankers, (iii) cryogenic lines to bring LNG to the terminal; (iv) a terminal with a delivery capacity of 14M m³ of gas per day; (v) two storage reservoirs; (vi) 42 km pipeline connecting the LNG terminal to St. Nicolas, Quebec mainline connection; (vii) railway installations to connect to existing rail infrastructure; and (viii) various ancillary infrastructure.

Federal Regulatory Responsibilities

The Project requires: (i) Fisheries and Oceans Canada (or DFO) authorization pursuant to subsection 35(2) of the Fisheries Act; and (ii) Transport Canada (or TC) approval pursuant to subsection 5(1) of the Navigable Waters Protection Act; these regulatory approvals trigger the application of the Canadian Environmental Assessment Act (CEAA) and require DFO and TC as responsible authorities (RA) to conduct an environmental assessment (EA) under CEAA. With the approval of the Government of Canada response to the Joint Panel report, DFO and TC will proceed with their regulatory responsibilities.

Transport Canada also conducts the Technical Review Process of Marine Terminal Systems and Transhipment Sites or TERMPOL Review Process (TRP) in cooperation with other federal departments to form the TERMPOL Examination Committee (TEC). The TRP focuses on ship routing in waters under Canadian jurisdiction to berthing at a proposed marine terminal or transhipment site, as well as the process of cargo handling between vessels, or off-loading from ship to shore or vice-versa.

The TRP applies to: (i) the specialized equipment and procedures necessary at proposed bulk oil, chemical, liquefied gas terminals and any other cargoes which may be identified by Transport Canada Marine Safety; (ii) proposed transshipment facilities for these substances; and (iii) any proposed changes to existing terminals or designated transshipment sites or facilities for these substances. The federal Canada Shipping Act, the Marine Transportation Security Act and regulations created under these acts apply to the movement of LNG tankers and the operation of facilities at the proposed LNG terminal.

Environmental Assessment Process

The National Energy Board (NEB) with the support of Transport Canada and Fisheries and Oceans Canada referred the Project to the Minister of the Environment of Canada with the recommendation for the establishment of a review panel under subsection 21(2) of CEAA, October 27, 2004. The NEB notified the CEAA Panel manager Feb. 7, 2006 that it would not, at that time, be a responsible authority, for the Project as a result of communication from the proponent indicating that the timeline for submitting an application for the 42 km pipeline was undetermined.

The Rabaska LNG Terminal is subject to the environmental assessment (EA) and review processes pursuant to the federal Canadian Environmental Assessment Act (CEAA) and the provincial Loi sur la qualité de l’Environnement. Public review of the Rabaska liquefied natural gas facility and related infrastructure was carried out pursuant to the Canada-Quebec Agreement on Environmental Assessment Cooperation (Agreement). The Agreement provides the framework for the Joint Review Panel and promotes conducting cooperative environmental assessments.

Public Participation

The public were invited to comment on the guidelines prepared for the environmental assessment of the project as well to participate in the public information and hearing processes held in October/November/December 2006 and January/February 2007 conducted in Quebec, Levis, Saint-Henri and Saint-Pierre-de-l’Île-d’Orléans. The public and stakeholders submitted almost 700 briefs to the Joint Panel during the course of the public hearing process.

Aboriginal Consultation

There are two First Nations who may be potentially impacted by the Crown’s conduct in respect of the Rabaska Project – Malécite de Viger First Nation (MVFN) and the Mi'gmawei Mawiomi Secretariat (“the Mi’kmaq”).

On October 10, 2007, the Agency, on behalf of the Government of Canada, contacted the two First Nations to seek their comments regarding the recommendations of the panel.

The Malicite de Viger responded and provided comments. On December 6, 2007, the Government of Canada offered to meet with the Malicite de Viger in early 2008, while also indicating that it would proceed with its response to the Joint Panel Review recommendations.

A follow up letter was sent to Mi’kmaq on November 5, 2007 stating that if no comments were received by November 9, 2007, the Government would proceed with its response to the Panel recommendations and that the Crown would be in touch with them to discuss the regulatory decision making in respect of the project. No further communications were received from the Mi'kmaq.

Fisheries and Oceans, Transport Canada and the Canadian Environmental Assessment Agency will continue the consultation process during the regulatory phase under the Fisheries Act and Navigable Waters Protection Act.

Joint Review Panel Report

The panel submitted its report to the government authorities on May 30 2007. The Minister of Environment made the report public the 5th of July 2007. The Panel addressed 34 recommendations to the Proponent, the Government of Canada, the Government of Quebec and the City of Levis. The Panel concluded that the Project would not likely have significant adverse environmental effects, conditional on the mitigation and follow-up measures proposed by the Proponent as well as those proposed by the Joint Panel in the recommendations.

The Government of Canada supports recommendations that are within its mandates and jurisdictions and will carry out regulatory responsibilities under the Fisheries Act and the Navigable Waters Protection Act. The Government of Canada will cooperate with the proponent and other levels of government to ensure appropriate mitigation and follow-up measures are in place where federal mandates and jurisdictions apply.

Course of Action Decision

In conformity with the approval of the Governor in Council, the RAs may take a course to exercise any power or perform any duty or function with respect to the project. After taking into consideration the report of the review panel and the implementation of appropriate mitigation measures, the RAs are of the opinion that the project is not likely to cause significant adverse environmental effects.

The economic context of the project

Recommendation 1

The Panel recommends that the proponent establish a regional committee with the mandate to establish a strategy in an aim to maximize the project’s economic spin offs for the Chaudière-Appalaches region.

Response

The Government of Canada notes that this recommendation is directed to the proponent.

Recommendation 2

If the project is approved, the Panel recommends that the City of Lévis take the necessary measures so that the project can have the maximum structuring effect for the economy of the region and for industrial development.

Response

The Government of Canada notes that this recommendation is directed to the City of Lévis.

The territorial context of the project

Recommendation 3

If the project is authorized and in order to attract companies that must be physically in proximity to the project’s installations, the Panel recommends that in its land use planning and development plan now being revised, the City of Lévis designates for industrial use of the land adjacent to the project. The Panel also recommends that the City of Lévis include this land in the request for exclusion that it will address to the Commission de protection du territoire agricole du Québec.

Response

The Government of Canada notes that this recommendation is directed at the city of Lévis and the Province of Quebec who are responsible for the protection of agricultural land and zoning.

Recommendation 4

If the project is to be carried out, the Panel recommends that within the framework of, and during, the current environmental assessment, the proponent take all measures necessary to ensure the best possible integration of the port and on-shore facilities in the landscape, particularly the access road to the jetty.

Response

The Government of Canada notes that this recommendation is directed to the proponent and that the access road is under provincial and municipal jurisdiction.

Assessing the risks associated with the project

Recommendation 5

The Panel recommends that, when planning emergency measures, the proponent should provide Environment Canada and the ministère du Développement durable, de l’Environnement et des Parcs with an analysis of sensitive elements when considering an accident scenario for a berthed LNG tanker, on the basis of criteria using a 1,500-mm breach, a steady-state pool and a 3-kW/m² thermal radiation threshold.

Response

The Government of Canada supports the Joint Panel recommendation regarding environmental emergency measures planning. Federal departments implicated in planning emergency measures will work with the proponent, provincial and municipal governments to develop the necessary emergency measures to respond to the Joint Panel recommendation.

Recommendation 6

Should the project be implemented, the Panel recommends that the proponent set up a yearly public information mechanism regarding the project’s operational security report, for individuals who could be affected by accidents involving the project’s facilities.

Response

The Government of Canada notes that this recommendation is directed to the proponent.

Social acceptance of the project

Recommendation 7

The Panel recommends that the Canadian Environmental Assessment Agency and the ministère du Développement durable, de l’Environnement et des Parcs give greater weight to psychosocial impacts in the guidelines that they issue for projects that present potential risks for neighbouring communities aiming at a better assessment of this category of impacts.

Response

The Government of Canada federal departments (Fisheries and Oceans Canada and Transport Canada) implicated in the development of guidelines for joint environmental impact studies will cooperate, within their mandates and jurisdictions, with provincial authorities to improve the evaluation of psychosocial impacts in the guidelines that they issue for projects that present potential risks for neighbouring communities aiming at a better assessment of this category of impacts.

Impacts on the inhabited area and human activities

Recommendation 8

Beyond the measures proposed by the proponent for the purpose of noise mitigation, the Panel recommends that the proponent avoid, as much as possible, the execution of noisy work between 7 p.m. and 7 a.m., and that the work schedule be planned on the basis of this consideration.

Response

The Government of Canada notes that the recommendation is directed to the proponent. Noise control is the jurisdiction of provincial and municipal authorities.

Recommendation 9

The Panel recommends that the proponent take steps to prevent exceeding the criteria of the ministère du Développement durable, de l’Environnement et des Parcs by reducing the number of noise events and their intensity at the source. When that is not enough, the proponent should reduce the spread of residual noise by taking effective anti-noise measures, or by planning measures to compensate residents.

Response

The Government of Canada notes that the recommendation is directed to the proponent.

Recommendation 10

If the project is authorized, the Panel recommends that the proponent take the steps necessary to ensure that sulphur dioxide emissions from the project meet the standards applicable in Quebec, especially in the part of Ville-Guay that overlooks the jetty. This should include the use of diesel fuel containing the lowest amount of sulphur.

Response

The Government of Canada notes that the recommendation is directed to the proponent. The federal government will cooperate with the proponent and provincial agencies to ensure the application of the MARPOL Convention (The International Convention for the Prevention of Pollution from Ships) in the control of sulphur dioxide emissions. As well ships entering Canadian waters must adhere to the Regulations for the Prevention of Pollution from Ships and for Dangerous Chemicals which limits sulphur concentrations to 4.5%.

Recommendation 11

The Panel recommends that the proponent ensure a proper follow-up, after reaching agreement with the ministère du Développement durable, de l’Environnement et des Parcs with the purpose of assessing the true level of additional air pollutants from the project compared to existing levels within the area currently retained for the planned project.

Response

The Government of Canada notes that the recommendation is directed to the proponent.

Recommendation 12

The Panel recommends that the ministère du Développement durable, de l’Environnement et des Parcs add a new sampling station to its network to show air quality in Lévis. If the project goes ahead, the Panel recommends that the proponent establish a monitoring station in the inhabited area between the jetty and Highway 132 together with the ministry.

Response

The Government of Canada notes that this recommendation is directed to the provincial ministère du Développement durable, de l’Environnement et des Parcs.

Recommendation 13

The Panel recommends that the data collected from air quality samples taken at the monitoring station operated by the proponent in the inhabited area most exposed to the project’s emissions be analyzed in concert with the ministère du Développement durable, de l’Environnement et des Parcs. Sources of recurring exceedances that go beyond the Québec standards in force must be corrected to the ministry’s satisfaction.

Response

The Government of Canada notes that this recommendation is directed to the provincial ministère du Développement durable, de l’Environnement et des Parcs.

Recommendation 14

The Panel recommends that the proponent establish a procedure for communications on conditions governing the clearance of transmission lines and the measures to be taken for passage of LNG tankers in the case of restrictions on overhead clearance under the line, and that this be done after agreement with Hydro-Québec, Transport Canada and the Canadian Coast Guard.

Response

The Government of Canada notes that the recommendation is directed to the proponent. The Government of Canada will cooperate with Hydro Quebec and the proponent to facilitate the development of a communication system with regard to overhead hydro-electric transmission lines.

Project impacts on wooded areas

Recommendation 15

In order to avoid a net loss of wildlife habitats, the Panel recommends that the proponent prepare a compensation plan for deforested areas located in the terminal area and in areas of similar value, to the satisfaction of the ministère du Développement durable, de l’Environnement et des Parcs and the ministère des Ressources naturelles et de la Faune.

Response

The Government of Canada notes the recommendation is directed to the proponent.

Recommendation 16

The Panel recommends that the proponent assess the cumulative environmental effects of the two projects related to his own, i.e. the two power distribution lines and the access road leading to the terminal as regards the extent of deforestation required.

Response

The Government of Canada notes that forest resources are under provincial jurisdiction. The cumulative effect of clearing forested areas in relation to the current project should be reviewed in subsequent environmental assessments for the two distribution lines and access roads to the terminal.

Project impacts on water environments

Recommendation 17

The Panel recommends that the proponent develop a management plan that would ensure the maintenance of an acceptable flow rate in the Saint-Claude stream and the integrity of the refuge pond. This management plan should be to the satisfaction of Fisheries and Oceans Canada, the ministère du Développement durable, de l’Environnement et des Parcs and the ministère des Ressources naturelles et de la Faune, and should cover the terminal construction, operation and abandonment phases.

Response

The Government of Canada supports the Joint Panel recommendation for the proponent to develop an acceptable flow management plan for the Saint-Claude stream and the maintenance of the refuge pond, during construction, operation and decommissioning of the terminal. The Department of Fisheries and Oceans will condition its authorization under the Fisheries Act and will work cooperatively with the ministère du Développement durable, de l’Environnement et des Parcs et du ministère des Ressources naturelles et de la Faune to ensure that the integrity of the Saint-Claude stream and the refuge pond is maintained.

Recommendation 18

Should the project be carried out, the Panel recommends that the proponent take measures to reduce the temperature of vaporizer discharge before it reaches the river so as to minimize the impacts on fish habitat.

Response

The Government of Canada supports the Joint Panel recommendation for the proponent to take the necessary steps to reduce the temperature of vaporizer discharge into the St. Lawrence River. The Department of Fisheries and Oceans will condition its Fisheries Act authorization in order to reduce the effect of vaporizer discharge temperature on fish habitat. Fisheries and Oceans will work cooperatively with provincial agencies to limit this impact.

Recommendation 19

The Panel recommends the characterization of vaporizer discharge as well as a periodical follow-up of its compliance with the Environmental Discharge Objectives and toxicity tests on aquatic life, to the satisfaction of Environment Canada and the ministère du Développement durable, de l’Environnement et des Parcs.

Response

The Government of Canada supports the Joint Panel recommnedation to: (i) characterize the effluent; (ii) monitor; and (iii) determine the toxicity of the effluent on aquatic life. The Government of Canada will work cooperatively with the proponent and the ministère du Développement durable, de l’Environnement et des Parcs to ensure appropriate mitigation and follow-up measures are implemented.

Recommendation 20

The Panel recommends that, subject to an agreement with Fisheries and Oceans Canada and the ministère des Ressources naturelles et de la Faune, the proponent determine the water supply sources for the hydrostatic tests on the pipeline pipes and this, at the environmental assessment phase. This choice should comply with the minimum ecological instream flow regimes of the bodies of water concerned. If needed, mitigation or compensation measures should be taken to reduce impacts on fish habitat.

Response

The Government of Canada supports the Joint Panel recommendation that the proponent determine the source of water for hydrostatic testing. Fisheries and Oceans Canada will require the proponent to adopt appropriate mitigation and follow-up measures in its authorization under the Fisheries Act. Fisheries and Oceans will work cooperatively with the ministère des Ressources naturelles et de la Faune to ensure that both federal and provincial requirements are understood by the proponent.

Recommendation 21

Noting the fact that the proponent committed himself to producing an inventory of the wells located within the influence perimeter where they would be likely to undergo a drawdown exceeding 0.5 m, the Panel recommends that wells be inventoried and groundwater characterized before construction work begins. Characterizing the groundwater would enable to establish its current physicochemical and microbiological quality to better assess the potential impacts of construction and operation of the terminal.

Response

The Government of Canada notes this recommendation is directed to the proponent.

Project impacts on wetlands

Recommendation 22

Noting the mitigation measures put forward by the proponent, the Panel recommends that the latter conduct additional geological studies in order to confirm the groundwater behaviour and the existence of potential links between the groundwater body, the peat bog located north-east of the site, the refuge pond and the ruisseau Saint-Claude.

Response

The Government of Canada notes that this recommendation is directed to the proponent. The Government of Canada, within its mandate and jurisdiction, will work with provincial agencies and the proponent to protect the integrity of wetlands and associated ecology.

Recommendation 23

The Panel recommends that the peat bog be preserved from backfilling by removing the planned concealment berm from the project. The Panel also recommends that any residual loss be compensated, in compliance with the guidelines provided by the ministère du Développement durable, de l’Environnement et des Parcs, to authorize work on an ombrotrophic or minerotrophic peat bog.

Response

The Government of Canada notes that this recommendation is directed to the proponent.

Recommendation 24

The Panel recommends that the proponent study the possibility of modifying the H-I stretch of the route for the pipeline to avoid the Saint-Étienne-de-Lauzon peat bog. If avoiding it is impossible, the Panel recommends that the proponent conduct the required inventories, assess the potential use of this sector by protected animal and plant species and analyze the work’s impacts on wetlands. If necessary, mitigation, compensation and follow-up measures should be planned, in compliance with the guidelines of the ministère du Développement durable, de l’Environnement et des Parcs for work to be authorized on wetlands.

Response

The Government of Canada notes that this recommendation is directed to the proponent. The Government of Canada, within its mandates and jurisdiction, will cooperate with provincial authorities.

Project impacts on fish and their habitats

Recommendation 25

The Panel recommends that, additional measures be taken when a spawning area for the rainbow smelt is present in the jetty area in order to avoid disrupting the species, to the satisfaction of Fisheries and Oceans Canada and the ministère des Ressources naturelles et de la Faune.

Response

The Government of Canada supports the Joint Panel recommendation that appropriate mitigation and follow-up measures be implemented should spawning of smelt occur within the sector proposed for the jetty. Fisheries and Oceans Canada will require the proponent as a condition of its Fisheries Act authorization to implement appropriate mitigation and follow-up measures to safeguard smelt spawning habitat. Fisheries and Oceans will work cooperatively with the ministère des Ressources naturelles et de la Faune to protect smelt.

Recommendation 26

The Panel recommends to the ministries concerned to keep in mind the technical feasibility of the directional drilling as a criterion in the final choice of a pipeline route for the rivières Etchemin, Chaudière and Beaurivage crossings.

Response

The Government of Canada, within its mandate and jurisdiction, will work cooperatively with the proponent and provincial departments to ensure, that the selection of the pipeline route at the Etchemin, Chaudière and Beaurivage rivers crossings, that the directional drilling is taken into consideration.

Recommendation 27

The Panel recommends that the proponent’s compensation project for fish habitat losses and disruptions be submitted to Fisheries and Oceans Canada within the present environmental assessment.

Response

The Government of Canada supports the Joint Panel recommendation for the proponent to submit a fish habitat compensation plan. Fisheries and Oceans will require acceptable mitigation, fish habitat compensation and follow-up programs as a condition of its authorization under the Fisheries Act. Fisheries and Oceans will cooperate with provincial departments in responding to this recommendation.

Project impacts on avian fauna

Recommendation 28

The Panel recommends that Environment Canada and the ministère des Ressources naturelles et de la Faune ensure the effectiveness of the mitigation measures suggested by the proponent with regard to avian fauna.

Response

The Government of Canada supports the Joint Panel recommendation and will work with the proponent to ensure appropriate mitigation measures are undertaken by the proponent for migratory birds under its jurisdiction and will cooperate with ministère des Ressources naturelles et de la Faune regarding birds under provincial jurisdiction.

Project impacts on protected plant species

Recommendation 29

Given the protection statuses of the fringed gentian, Victorin variety, and the spotted water-hemlock, Victorin variety and the threat facing their habitats, the Panel recommends that the proponent take measures to protect the individuals of theses species and their habitats if he develops a crossing over the bank for small craft. These measures should be implemented following an agreement with the ministère du Développement durable, de l’Environnement et des Parcs.

Response

The Government of Canada notes that this recommendation is directed at the proponent. The Government of Canada, within the context of its mandate and jurisdiction, will work with the ministère du Développement durable, de l’Environnement et des Parcs to ensure the protection of individual plants with special status and their natural habitat.

Recommendation 30

Considering the rich floristic quality of jetty area, the Panel recommends that the proponent compensate for the loss of protected species habitat for the entire area affected by the work. These measures should be assessed following an agreement with the ministère du Développement durable, de l’Environnement et des Parcs.

Response

The Government of Canada notes that this recommendation is directed to the proponent. The Government of Canada, within the context of its mandate and jurisdiction, will work with the ministère du Développement durable, de l’Environnement et des Parcs to promote habitat compensation for species with special status within the area affected by the proposed works.

Recommendation 31

The Panel recommends that the ministère du Développement durable, de l’Environnement et des Parcs see to it that appropriate measures be taken to ensure the protection of individuals belonging to these protected species and their habitats. Transplantation should be considered only as a last resort.

Response

The Government of Canada notes that this is directed to the Province. The Government of Canada, within the context of its mandate and jurisdiction, will work with the ministère du Développement durable, de l’Environnement et des Parcs in the development of appropriate mitigation and follow-up measures for the protection of species with special status.

Recommendation 32

The Panel recommends that the ministère du Développement durable, de l’Environnement et des Parcs ensure that the proponent performs new inventories during the construction of facilities to ascertain the absence of two-leaved toothworts in the areas covered. In the case where two-leaved toothwort individuals would be recorded in the work area and transplantation would be the only conceivable option, the Panel recommends that the proponent develop a follow-up program to verify the success of the transplantation.

Response

The Government of Canada notes that this recommendation is directed to the proponent. The Government of Canada, within the context of its mandate and jurisdiction, will work with the ministère du Développement durable, de l’Environnement et des Parcs to determine appropriate mitigation and follow-up measures.

Recommendation 33

Given the absence of data regarding the success potential of the transplantation of Platanthera blephariglottis, blephariglottis variety, the Panel recommends that the proponent develop a follow-up program following an agreement with the ministère du Développement durable, de l’Environnement et des Parcs.

Response

The Government of Canada notes that this recommendation is directed to the proponent.

Environmental monitoring and follow-up

Recommendation 34

Noting that the proponent has planned to set up a Public Advisory Committee to conduct the follow-up on the project’s environmental impacts, the Panel recommends that the entire set of mitigation measures be monitored. The proponent should also establish a liaison committee with the population in the area to ensure appropriate management of the disturbances during work, following an agreement with the City of Lévis, neighboring municipalities and community organizations.

Response

The Government of Canada notes that this recommendation is directed to the proponent. The Government of Canada, within its mandates and jurisdictions, will cooperate with the proponent, municipalities, stakeholders, and provincial agencies in this regard.