Alcan, gov’t in tangle over Kemano dollars By JEFF NAGEL COMPENSATION TALKS between the provincial government and Alcan have broken down in the wake of a legal maneuver last week by the company which paves the way fora lawsuit. At issue is how the province will pay for its decision two years ago to cancel Alcan's lialf-built Kemano Completion Project after the company had already spent $500 million. Talks had aimed at settling the matter out of court, bul Alcan moved last Wednesday on the preliminaries needed to start a lawsuit before a two-year time limit to do so ex- pired. Alcan spokesman Ray Castelli said the writ of summons filed by the firm’s lawyers is a precautionary move that shouldn’t preclude further negotiations. He said the company won’t proceed to the next step of filing a full statement of claim against the province as long as negotiations are productive. But Premier Glen Clark exploded at the news last week, saying the company can negotiate or litigate, but not do both at the same time. ‘We will not succumb to hardball tactics like this from this multinational corporation,’’ Clark said. He demanded Alcan withdraw its suit before negotiations resume. Education minister Paul Ramsey, the province’s point man on the Alcan situalion, said the company ‘‘sprang”’ the lawsuit on the government after 18 months of negotia- tions, and in doing so betrayed a trust that bad built up. “T respect Alcan’s legalistic position that this is just technical,’’ he said, “‘bul at best they've handled this in an incredibly ham-handed way.’” He said the company should have given the province ad- vance warning of its intention, ‘ ‘TT would have expected some understanding that they intended to pursue this course of action far earlier than the day before writs arc filed,”’ Ramsey said. Now, he says, the province will insist on some kind of assurance that the company will not proceed further in court before going back to the bargaining table. Castelli said Alcan will not be withdrawing the writ it has already filed in B.C, Supreme Court. - “*Please don't ask us to forfeit-our rights simply on the promise of further ncogitialions,” be said. ‘Who in their right mind would do that?”’ Castelli said the province may have some grounds to be. upset, but said they also bear responsibility for letting the talks drag on for two years. , “(We have been extremely patient,’ he said, ‘‘We have sat by while premiers have changed, leadership conven- tions have taken place, and provincial elections have been fought.” “Tf they had paid more attention to the negotiations prior to this we wouldn’t have been put in this position.” Ramscy said the province could yet reply to the court ac- tion by legislating an end to the dispute. ‘*Thal remains a very real option,’’ he said. Negotiations were expected to lead to a deal in which the province would pravide Alcan the power needed to expand in Kitimat when it needed it for the money it would have cost the company to complete KCP. Last year the province said it would also seck a commit- ment by Alean to carry out that expansion by a certain date. Here’s some background on the ups and dawns associa- ted with the various phases of Alcan’s Kermano project. THE PROJECT tg Alcan’s $1.2 billion Kemano Completion Project would have generated power by diverting more water from the Nechako watershed through its Kemano turbines, THE HISTORY MW. Kemano power was originally intended to power aluminum smelters, The original Kemano power project was sufficient to drive the smelter in Kitimat, but dida’t take advantage of the much greater hydroelectric potential available by diverting more water. However, the 1949 agreement between the province and Alcan said the com- pany could have in perpetuity whatever water it needed to drive whatever generating facilities it could get in place by the turn of the century. That deadline is now approaching, and KCP was Alcan’s strategy to securing that power for the future, even though it had no immediate plans for smelter expansion. -THE TROUBLE | - Environmental opposition plagued Alcan - ever since a battle emerged. in the 1970s over water flows in the Nechako and whether sufficient water was being released to maintain fish stocks. m@ When plans were unveiled to start the Kemano Comple- tion Project — and divert even more water from the Nechako — opponents mobilized. bor forests. excellence — awards Ww In 1989 they won a court victory that ruled the federal government had wrongly exempted the project from en- vironmental assessment rules, Alcan halted work in the project that spring in light of the ruling. KCP was at that point about half complete, with $500 million spent, and a tunnel to nowhere burrowed into the heart of Mt. Dubose. W@ Although a subsequent court decision ruled in Alcan’s favour, the firm did not resume construction, Wi In 1995, Premier Mike Harcourt declared the project un- acceptable to the people of B.C. and said it would not be allowed to go ahead, THE TALKS BI The cancellation of the project apparently leaves B.C. taxpayers on the hook for compensation for the $500 mil- lion Alcan spent before Victoria pulled the plug. But politicians played down the idea that compensation was required, suggesting they could negotiate a deal under which B.C. would sell Alcan the power KCP would have provided for about the same cost. Critics screamed that it would amount 10 a sweet taxpayer-subsidized power deal for Alcan — compensation under another guise. fi In 1996, the province took the position that Alcan must commit to a smelter expansion as part of a power sales deal. That remains the government's strategy — to salvage a jobs victory from an otherwise no-win situation of hav- ing to pay out cash to a big corporation. Alcan’s move to secure its legal position makes it clear there will be no easy out from the costly consequences of the politically popular decision to kill KCP. nominations Forest Renewal BC will honour individuals and groups from around the province who have made valuable contributions to forestry in British Columbia, with the second annual Forests Excellence Awards to be announced in June of 1997. Awards will be given in each of the following categories: * Forest Management * Environment * Value Added + Labour * Community » Education + Forest Service + Communications/Media * Youzh. Entry deadline is March 21, 1997. Call 1-888-535-9811 for information and nominations forms. FOREST RENEWAL BC KERMODE FRIENDSHIP CENTRE SPRING WHEELS nie at TICKET RAFFLE 0951 O88 ch Ticket eligible for all 3 Prizes! The Terrace Standard, Wednesday, January 29, 1997 - A11_ Relatives angry after man dies THE BROTHER of a Hazelton man who died of flesh eating disease last week is calling the province's response to his loss insensitive and self-serving. Nelson Azak, 53, died of necrotizing fascitis -— a devastating tissue-destroying bacteria — while being air lificd to Calgary Foothills Hospital from Prince Rupert when doctors couldn't find an available bed in Vancouver. At the time of his death, it had been five full days since Azak first walked into Wrinch Memorial Hospital in Hazelton complaining of severe hip and back pain so intense he could barely walk. The slow diagnosis of his condition and the lack of an intensive care bed when things became critical has taised the question of whether or not cuts to B.C.'s health care system have left medical services spread dangerously thin. Bul health minister Joy MacPhail says Azak would most likely have died whether there had been a bed for him in Vancouver or not, That comment has left Alvin Azak, Nelson’s younger brother, thinking about pursuing an independent i inves- ligation into the incident. “T can understand her statements in that she has to protect herself and she has to ] guess protect the system and its shortcomings,’’ said Nelson, ‘“But the fact remains there was another person, Lucien Bouchard, who survived the same disease. If the facilities, the per- sonnel and the system for detecting that disease were in place, then my brother would still be alive. “Tsee her comments as self-serving and not sensitive to (he tragedy that has happened to my family.” Azak, a maintenance worker with the Glen Vowell Indian band and the father of two college-aged sons, is the second fatality in a month being linked to poor emergency care in B.C. A two-and-a-half year old Maple Ridge girl choked to death on a sausage Dec. 20 while waiting for an am- bulance. The incident is currently under review, Paul Ramsey “| would have ex- pected some under- standing that they intended to pursue this course of ac- tion far earlier than the day before writs are filed,” Back on the Road In No Time Flat! You have enough siresses in your life, @ tat choosing the right body shop shouldn't be one ne of them. See us! We'll mend your car - A and have you back on course fo pds * Out of Town Customers Welcome | ° iS © All Make Body Repairs re! =o = aoe : ve = * All ICBC Work Accepted Sa ae NP * Quality ICI Paints Se & Materials ee Sr * New Downdraft Paint ee Booth & Bake Oven ¢ Fast, Courteous Service ® Quolity Workmariship, Guaranteed! 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