Offshore questions undecided

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A study just completed by nine researchers at Simon Fraser University (SFU) concludes that offshore oil and gas development in British Columbia comes with some significant risks and a great number of unknowns.

The Coastal First Nations of the Turning Point Initiative (CFN) commissioned the study. CFN is an alliance of the Council of the Haida Nation, and the Wuiknuxv, Heiltsuk, Kitasoo/Xaixais, Gitga'at, Haisla, Metlakatla, Old Massett and Skidegate First Nations, which has come together to develop the sustainable, ecologically sound use of land, water and other resources.

The study revealed that a "modest size" offshore oil and gas development could conceivably lead to 484 small oil spills and a one-in-five chance of a large spill over the 25-year lifespan of a project.

The same sized project would not result in a job bonanza either. According to the study, fewer than 200 jobs would be created.

Art Sterritt is CFN's executive director. He said the study is part of CFN's plan to give communities accurate information that will enable them "to make informed decisions about off-shore oil and gas."

Sterritt explained this was the first time a full-scale study has been done that encompassed the environmental, social, legal, economic and regulatory facets of offshore development. "We think this report is the most comprehensive piece of work that has been done on the subject to date, and it in many ways will provide answers and probably give rise to all the types of questions that our people need to ask and have answered in order to make a decision as to whether or not to support the lifting of the moratorium on offshore oil and gas."

He said the federal and provincial governments' studies have only looked at environmental and technological issues. He also said that while the study gave them a great deal of valuable information, much more scientific research needs to be done in 26 areas they have identified as being "knowledge gaps."

In terms of the information deficiencies, Sterrit added, "We've been getting a lot of smoke and mirrors in terms of what it is. You know we don't have any complete answers, for example, around what kind of an economy would be developed out of this. I mean, we've had people telling us that this is going to be the solution to all of our economic woes on the coast of British Columbia, and that just doesn't hold up to scientific ... scrutiny, and this report has shown that."

Other problem areas the study identified were in the areas of regulation and the moratorium review process, which it termed "deficient." It pointed out that the current system for managing oil and gas does not meet international best practice management guidelines.

Because of the knowledge gaps identified, the researchers oppose removing the moratorium on offshore development at this time.

Dr. Thomas Gunton, SFU's director of the resource and environmental plannng program, said "We simply do not have the information to make an informed decision on offshore development. It would be a mistake to lft the moratorium if we have inadequate information on cost and benefits."

Because of the high cost of developing offshore oil and gas resources, it is estimated that royalties (based on the modest development model) would only amount to about $18 million annually, compared to $1 to $2 billion annually for northeast inshore producton.

"It's a myth to think that offshore development will solve the economic challenges of coastal regions of B.C.," added Gunton.

The study proposes setting up a development fund to aid the tourism, fishery and forestry industries.

Sterritt added that, moratorium aside, big companies such as Shell and Texaco want to see issues around land and treaty rights resolved before taking the investment plunge.

"They're not particularly interested in investing in a province that has not settled who owns, or who has jurisdiction over, the Queen Charlotte Basin. Not only do e have controversy over whether it's between the feds and the province, but we also have Aboriginal rights and title; they still exist in British Columbia.