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DRAFT/ES
March 6, 1995
To: Alberta Power Board of Directors
RE: AEUB Decision Concerning Unocal Gas Plant and APL
Substation at Seal Lake
The Alberta Energy and Utilities Board (AEUB) released two decisions on
Thursday, February 23, concerning the Unocal sour gas plant and the APL
substation at Seal Lake.
The Board reaffirmed previous Energy Resources and Conservation Board (ERCB)
approval for construction and operation of Unocal's sour gas plant, located
approximately 17 km. south of the community of Little Buffalo. The Board
also approved Alberta Power's application to construct and operate a
substation to provide electric service to Unocal's plant.
The decision on APL's application was quite straightforward, recognizing
both the need and the appropriate location for the proposed substation. The
substation proposal was also found to be technically and environmentally
acceptable.
In its decision on Unocal's plant, the Board found that the gas plant would
be in the public's interest. Some of the key points were:
* The Board noted it has no authority to enter into issues regarding land
claims but has full statutory authority to regulate energy activities in the
disputed lands.
* In future, the Lubicon will receive the same notification privileges
accorded to other aboriginal groups in Alberta when traditional lands are at
issue. (The AEUB requires only that companies notify surrounding
communities if they propose development on traditional lands--approval is
not necessary.)
* The Board believes the Unocal plant can be operated safely with no
substantive risk to people living in the area nor with any risk to their
future lifestyle. In fact, the plant could have considerable economic and
social benefit if co-existence could be mediated.
This decision has potentially serious implications for Alberta Power. The
Lubicon are viewing the AEUB's decisions extremely negatively. There is
strong potential for vandalism, criticism in the media and
national/international criticism from Lubicon supporters.
Although we have recently had positive relations with the Lubicon, they are
very concerned about our commitment to provide power to the plant. We
are continuing to indicate to the Lubicon that APL respects aboriginal land
claims but we also have an obligation to serve customers who request
electric service.
APL staff met with Chief Ominayak and several members of his band
council the day after the decisions were released. We are hoping to meet
again with them this week to try to resolve any concerns related to our
substation. We are targeting to hook up the plant by the end of the first
week in April. I will keep you informed of further developments.
J.R. Frey
President
Alberta Power Limited