Resource tax-dollar potential huge

Proposed industrial projects would almost double regional tax base.

Franca Petrucci of Spectra Energy led a delegation to the Jan. 24 2013 board meeting of the Regional District of Bulkley Nechako (RDBN). His presentation concerned the recently announced joint proposal of Spectra Energy and the BG Group to build a liquid natural gas (LNG) pipeline from Northeast B.C. to Prince Rupert.

The proposed pipeline would be similar in capacity to the proposed Transcanada Coastal Gaslink project which is currently working on its provincial environmental assessment.

The pipeline would connect shale gas fields in the Fort Nelson and Fort St. John areas to proposed LNG terminals in Prince Rupert via a pipeline running westward more than 140 kms north of Burns Lake.

The Spectra BG Group proposal is the fourth proposed LNG pipeline that would cross RDBN areas.  A fifth pipeline, the Enbridge NorthernGateway pipeline has also been proposed to transport modified bitumen from Northern Alberta to Kitimat, B.C.

Any of these pipeline projects would contribute to the RDBN annual tax base.

The Mount Milligan Mine project, expected to be ready for production this year, will also contribute to the RDBN tax base.  If all four LNG pipelines and the Milligan Mine project were up and running, the estimated tax impact for the RDBN, the Stuart Nechako Regional Hospital District (SNRHD), and the North West Regional Hospital District (NWRHD) would total over $6.2 million.

If the Enbridge Northern Gateway Pipeline project were to come online, then an additional $2 million would drop into RDBN and hospital district coffers for a total of over $9.5 million per year.

These figures, provided to the board of directors of the RDBN by Hans Berndorff, Financial Administrator for the RDBN, are based on 2012 tax rates and do not include school taxes or other provincial property taxes.

Focussing on the Lakes District, the 2012 tax base for the RDBN and the SNRHD combined was $9 million.  The projected income from all proposed pipeline projects and the Milligan Mine would provide an additional $8.7 million to the tax base, according to 2012 tax rates.

As enticing as a near-doubling of the annual tax base sounds, Bill Miller, RDBN Chair and director of Region Area B, expressed a cautionary note regarding the likelihood of all projects moving forward.

Beyond vocal public resistance to the proposed Enbridge Northern Gateway project, supply and demand will govern which proposed natural gas pipelines get built.

“Realistically, we’re not going to see all those lines,” said Miller.

“All those players realize that there’s not going to be five pipelines.  We may end up with two, or one, or four, but not everybody is going to be there.”

Although the Milligan Mine is expected to begin limited operations later this year, off the proposed LNG pipelines, only the Apache Corp. Pacific Trails Pipeline (PTP) has completed all environmental assessments. Initial work has begun in the Terrace and Kitimat areas for PTP, but even that project has neither the long-term LNG contracts in place, nor the final engineering and design studies completed that will be required before a final investment decision is made by Apache and Chevron.

Pacific Trails Pipeline also faces strong opposition from the Wet’suwet’en, one of the First Nations whose traditional territories PTP is proposed to cross.

The other proposed LNG pipelines, Transcanada-Shell Coastal Gaslink Pipeline, Transcanada -Progress Energy Pipeline, and Spectra Energy Pipeline, are all at very preliminary stages and none have yet moved beyond pre-assessment to gain environmental or regulatory approvals.

Just Posted

Vanderhoof eligible for up to $6M in provincial infrastructure funding

The Northern Capital and Planning Grant will go to four regional districts and 22 municipalities

Province announces $100-million grant funding for Northwest communities

The Northern Capital and Planning Grant will go to four regional districts and 22 municipalities

Prince Rupert Gas Transmission project searches for partners

TransCanada is renewing permits for its natural gas pipeline project to North Coast.

Over 2,000 people used the pool in the first 2-weeks

Lifeguard training course needs a minimum of six people to register before Feb. 21

Coastal GasLink stops work to investigate archaeological find

OGC archaeologists are en route to the Houston-area site where Unist’ot’en report finding stone tools

‘Our entire municipality is heartbroken’: Seven children die in Halifax house fire

A man and woman remained in hospital Tuesday afternoon, the man with life-threatening injuries

B.C. man sues Maxime Bernier’s People’s Party over trademark

Satinder Dhillon filed application for trademark same day Maxime Bernier announced the new party

New trial ordered over banning whales, dolphins at Vancouver aquarium

Park board’s appeal reverses previous decision that found it had no right to implement a ban

Minister says plans to fight poverty, climate change, focus of B.C. budget

The NDP said in its throne speech last week that affordability will be the hallmark of its initiatives

Make sure measles shots up to date, Public Health Agency says

Measles causes high fever, coughing, sneezing and a widespread painful rash

Bomb threats, gunfire, kidnapping: Drug war rocks Kamloops

Kamloops RCMP battles a series of violent events

B.C. hotel trashes Channing Tatum in favour of Ryan Reynolds

Tatum’s picture left in recycling bin, replaced with photo of Ryan Reynolds

B.C. firefighters rescue bear cub stuck up a tree

Family Day was eventful for cub, firefighters

Payless to close 248 Canadian stores, saying it’s ‘ill-equipped’ for market

The company will begin closing stores at the end of March

Most Read