North Corridor Expansion Project Approved

Summary#

This Order in Council directs the Commission of the Canada Energy Regulator to issue Certificate GC-131 to NOVA Gas Transmission Ltd. for the North Corridor Expansion Project in northwest Alberta. The project is about 81 kilometres of new pipeline plus a compressor station (estimated cost $632 million) and the order adds new conditions aimed at Indigenous participation and caribou habitat protection. The decision was made on April 30, 2021 and published in the Canada Gazette on May 8, 2021.

What it does#

• Directs the regulator to issue Certificate GC-131 allowing construction and operation of the North Corridor Expansion Project (about 81 km of pipeline; 77 km along existing disturbances, 4 km new right-of-way).
• Adds and changes conditions tied to the certificate to address Indigenous concerns and species-at-risk protections under the Canadian Environmental Assessment Act, 2012.
• Creates three new requirements for the project proponent (NOVA Gas Transmission Ltd.):
  • New Condition 35: NGTL must offer funding to Indigenous peoples to help them review NGTL filings. NGTL must file a summary of those discussions at least 45 days before construction starts, and then every 6 months until the filings are complete.
  • New Condition 36: NGTL must seek to form an Indigenous Working Group (IWG) for the Chinchaga and Red Earth caribou ranges. NGTL must file a plan to set up the IWG within four months of the certificate and report on progress within eight months, then annually while the IWG exists.
  • New Condition 37: NGTL must file a revised Caribou Habitat Restoration and Offset Measures Plan (CHR&OMP) at least 60 days before construction. The revised plan must show how Indigenous knowledge was included and describe offset measures outside the project area.
• Sets specific on-the-ground offset targets for caribou habitat:
  • Minimum 183 hectares of restored habitat in the Chinchaga range.
  • Minimum 603 hectares of restored habitat in the Red Earth range.
  • A required offset ratio of 30:1 in each affected range.
• Amends existing caribou-related reporting and monitoring conditions so filings must show how Indigenous groups and the IWG were involved and how concerns were addressed.

Who's affected#

• NOVA Gas Transmission Ltd. — must meet the new and changed conditions before and during construction and operation.
• Indigenous peoples and communities — about 22 Indigenous groups were identified for Crown consultations; some were intervenors in the regulator’s hearing. The new conditions give them funding options, a formal working group, and a clearer role in habitat planning.
• Local landowners, municipalities, and counties crossed by the pipeline and compressor station (some land is provincial Crown land and some private).
• Wildlife, especially Woodland Caribou in the Red Earth and Chinchaga ranges, which the project will affect and for which specific restoration and offset work is required.
• Local and regional labour markets and businesses — expected construction jobs and contracting opportunities (see Why it matters).

Why it matters#

• The project increases pipeline capacity and helps move Alberta natural gas to domestic and export markets. NGTL estimated the project cost at $632 million.
• The government tied approval to extra protections and to steps meant to involve Indigenous peoples more directly. That affects how decisions about habitat offsets and monitoring get made on the ground.
• The order tries to balance economic benefits (projected construction jobs and local spending) with environmental risks. The regulator and government concluded the project is not likely to cause significant adverse environmental effects if the conditions are implemented.
• For nearby communities and Indigenous peoples, the important practical effects will be whether the promised funding, the Indigenous Working Group, and the habitat offsets actually lead to meaningful participation and measurable improvements for caribou habitat.