Construction equipment sits idly outside Rimbey, Alta., waiting for a public hearing decision on whether Encal Energy’s proposed line for sour natural gas will proceed.
“We did the best we could to accommodate each of the landowners with concerns,” said Terry Barrows, vice-president of production for Calgary-based Encal Energy Ltd.
“We’d like to see approval to carry on and build the line and get the sour gas moving.”
More than 80 percent of proposed energy projects get permits from the Alberta Energy and Utilities Board without a public hearing and Barrows is disappointed Encal’s 37.5 kilometre pipeline is in the minority. Company officials hoped to have it running by the end of last year.
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On Feb. 11 the utilities board initially approved the line, which is planned to transport gas to the Gulf plant near Rimbey.
However, due to opposition by farmers and an area trapper, the board announced that a public hearing would be held April 5.
Brian Bietz, of the board, said it would consider all concerns presented at the hearing before deciding whether to grant Encal a permit. He didn’t know when the decision will be announced but said it could be within a few months. If Encal gets approval for its project, construction could begin this summer, said Barrows.
Phyllis Tarnasky farms in the area.
“We’re getting compounded. With this new Encal line coming through we know there’s going to be a lot more wells drilled that are all going to be spewing out their emissions, she said. “We’ve got lots already and how much more are we going to have to tolerate?”
The Rimbey area already has more than 560 pipeline segments and 400 wells.
Although the line won’t pass through their land, the Tarnaskys wanted to be listed as intervenors at the April 5 hearing because she and her husband will live about three kilometres from the line, and other family members are closer. Tarnasky supports the project if it lowers overall emissions and doesn’t include flare stacks, but she’s not sure that will happen.
About three-quarters of farmers who will see the line pass through their land signed contracts with Encal immediately, said Barry Edge, a local farmer.
However, over a 10 month period he and a handful of other farmers bargained with the company for conditions they wanted. These included a lower level of hydrogen sulphide running through the lines, more distance between their operations and the line and compensation for livestock harmed by the gas operation.
“We certainly hope nothing ever happens but why wait until something happens?” asked Edge in an interview. “If I was to lose 96 cows, the bank would be there.”
Although Barrows said Encal will stick to the agreements it signed with those farmers, the utilities board may not make them part of the permit given to Encal if it approves the project. According to board officials, such an agreement could limit the board’s jurisdiction and authority.
That means the signed conditions may be in jeopardy if Encal sells the operation to another company, said Roy Elander, the group’s lawyer who spoke at the hearing.
Lou Lucosano, Encal’s lawyer, assured those at the hearing that if approved, Encal’s project will exceed code regulations and guidelines.
The project will mean about 150 construction and two permanent jobs and when up and running will put millions of dollars in royalties into provincial coffers, said Lucosano in his closing argument.
