: premier cused the company of extortion. . . . lakes. , “=> flooded out. The province signs a 1950 ptepare evidence: for the coming SECOND § BE “MOUNT DuBOSE ; _ devation 2,144m > WITCHYARD CONSTRUCTED } _KEMANO COMPLETION PROJECT HYDROELECTRIC GENERATING FACILITY CUT- AWAY DRAWING — SN OONG GROSS CONN ON “TRANSVISSION TO BEACONSTAU \e LINE: TQ KITIMAT.“”. ‘a " "NL SECOND-ATRANSMISSIOM-TINE =>, Se BE CONSTRUCTED } cae) i AM yore . PENSTOCKS. SECOND TAILAACE (TO BE- CONSTRUCTED}. sTLON ‘TUNNEL POWERHOUSE TRANSFORMER GALLERY (TO BE CONSTALCTED } CTED } 3 SECOND. POWERHOUSE.” (TO BE CONSTRUCTED) ° 7 ’- WEST TAHTSA LAKE (NECHAKO RESERVOIR | INTAKE UNLIKE THE original Kemano project, KCP doesn't involve the “ -construction of new dams or flooding of land. Most of the work involves the drilling of a second tunnel through Mt. Dubose, now about half complete, to use the existing Nechako Reservoir to . KEMANO Power price hike may be generate more power. That, however, will mean a significant decrease in water flows in the Nechake River — the key issue in the B.C, Utilities Commission review of the project. The review's technical hearings begin this week in Prince George. payoff for review fallout All quiet in back rooms — for now By JEFF NAGEL THE PROVINCE will likely have to buy any changes to the Kemano Completion Project by paying Alcan more for the power ‘it sells,.. -That’s why there has been si- - lence .of late on. the issue of renegotiating Alcan’s contracts to . supply B.C. Hydro with Kemano _ power. - - There's really very little to talk about. until the BC. Ulilities Commission review — which resumes technical hearings in Prince. George this week — is- . SUES its recommendations. “The ‘issue first blew up very publicly“ last’ summer’ _when ‘Mike Harcourt ail-but ac: At that time, Alcan called on Victoria ‘to enter negotiations to _ help “‘revitalize’* the economics “oF its mothballed billion-dollar ... Kemano Completion Project. “Mike. Harcourt responded with - A: speech in the legislature, ex- . plaining’ that Alcan’s plan to renegotiate sales of power to B.C. Hydro could cost taxpayers $350 million. “He went on to say that Alcan ~ had threatened legal action and had indicated Kemano constrac- . -: tion would not resume without a "new power deal. “Alcan denied saying it would “pull the“plug on the project and Harcourt dispatched Moe Sihota . to‘ clarify’? the company’s inten- ‘tions. ” “In. private. they had told us KCP was uneconomical and that they required an injection of per- A brief "1950: Alcan gets approval to build .Kemano [. The Nechako River is dammed and reversed, creating. a 92,000-heclare reser- voir out of a serles of rivers and Cheslatla. natives are water licence pranting the compa- ny legal rights to additional water ~ ‘to drive whatever generating ca- - pacity Alcan has in place by 1999, 1978; Alcan begins selling sur- plus electricity to B.C. Hydro ~ and increases power generation to supply the market. The diversion - of more water, plus dry weather, results in very low water levels in “the Nechako. 1980: The federal government . gets a court injunction requiring -° Alcan to release extra water to pratect fish. ‘Wf 1985; Alcan challenges the federal injunction in a bid to pro- tect its. rights to the additional water it’s entitled to under the _agteerient, All sides court case, 1987: An out-of-court deal is . reached between Alcan, Ottawa and. Victoria. The Nechako Settlement Agreement gives Al- . can. tights. to ‘divert. half the remaining water in the Nechako system, reducing flows to as little ~ 88 12: Per cent of pre-185) | levels, haps $350 million to make it vi- able,”’ Prince George MLA Paul Ramsey said last week. “But in ‘public afterwards they said the project is a go as it stands. “Mr. Sihota did talk to Alcan in August and his report was that the project did require more money.”’ Ramsey, Harcourt’s designated spokesman on Kemano, said there have been no further meet- ings Since then. “We think the focus right now should be on the review of KCP by. the B.C. ‘Utilities Commis- sigh,” ‘He said: "There W in pdb ably be'no substantivé discussion’ (of power contracts) until after the review and its recommenda- tions are before the government.” “We haven't sent them a bill. We haven't even taken a firm posi tion within the compa- ny on which of our cosis we should ask the province to pay.” That’s because B.C. Hydro ne- gotiations at that time will be used fo settle accounts between Alcan and Victoria. The province’s own legal ad- vice was that it could not stop or méke major changes to the pro- ject without becoming liable for hundreds of millions of dollars 4 in compensation Alcan also hinted a year ago that it viewed the review itself as contravening the 1987 water tights agreement and that it was “protecting its legal position.” That’s Kemano code for ‘*be good or you'll be in court ti] the cows come home.’ Tf the province wants to stay out - of court it will try to pay off Al- can by negotiating new power contracts with B.C. Hydro at that time. And thus B.C. power con- sumers will ultimately pay the piper for any modifications to the project” “Fecommended, iby. “thé review — and accepted ‘by cabi- net --- to reduce or mitigate loss o€ fish habitat. “Uh, that’s an interesting scenario,” was Ramsey’s only Tesponse to the suggestion. Alcan vice-president Bill Rich was a litthe more forthcoming. “fT don’t disagree with the thesis,” Rich said Friday. “It is not a heroic leap in logic to say at that time the stakeholders — the government, B.C, Hydro, and Al- can — will have to come together to work out what are the implica- tions of that (the review) and on what basis does the project go ahead,” Rich says the company isn’t trying to suggest that all the in- creases in costs associated with the project are the fault of the province. ; “We haven’t sent them a dill, We haven’t even taken a firm position within the company on Bill Rich which of our cosis we should ask the province to pay.’”” Rich also suggests there will be other factors at work in reaching new power contracts. **The cost of the delay and the hearings will be one of many and possibly not the major thing that’s before us at that time.’” Rich: plays down the idea be- cause it raises the spectre of more so-called secret backroom deals. “I’m very sensitive about nego- tiations and discussions with povernment,’” he said. ‘When someone else negotiates with the government or talks to a minister they brag about it. It’s something to be proud of. “*When Alcan talks about nego- tiating with government it’s not such a gocd thing. We’re not sup- posed to do thal.’ history of Kemano THE ROCK EATER: The 600-tonne tunne!-boring machine was dismantled and put into storage in 1992. The machine's laser- guided cutter head, about as wide as a two-lane highway, had Just completed the first eight-kllometre half of the second tunnel, against the advice of federal fisheries scientists. In exchange, Alcan gives up rights to divert the Nanika-Kidprice walcrshed on the upper Bulkley. Mf 1988; Construction begins on the Kemano Completion Project. A second tunnel is to be drilled through Mt. Dubose and more generators are to be added in- creasing power output by as much as 540 megawatts, ~ @ 1990: The Tory government passes a special order exempilng the project from federal Environ- mental Assessment and Review Process (EARP) regulations. M@ 1991: Environmental op- ponents win a surprise judgment from the Federal Court. It .over- tums the 1990 exemption, nul- lifies the 1987 settlement agree- ment and orders a federal en- vironmental review. Two months later Alcan halis consimuction and lays off 800 workers. The project Is half-built, with more than $500 million in the ground. Wi 1992: The Federal Court of Appeal: overturns the lower court ruling. No review is necessary, the court finds, and awards costs to Alcan. Construction can resume, but Alcan elects to wait out any further legal chalienges. @ 1993: Victoria lawyer Murray Rankin tells the governtoent it cannot stop or significantly alter KCP without exposing itself to vast compensation claims. To satisfy Mike Harcourt’s 1991 election promise, the NDP government orders the B.C. Utili- tles Commission to carry out a public review of the project, even though it has accepted the 1987 sctilement agreement as binding. The Supreme Court of Canada refuses to hear further appeals of the court challenge. Alcan claims new uncertainty is created by the provincial review, and declines to recommence con- struction. The company does agree to join the provincial review, Public hearings ate held in communities throughout the north. Alcan demands the province ne- gotiate new B.C. Hydro contracts fo help “revitalize the econom- ics’” of KCP. Premier Mike Har- court. reveals that = Alcan threatened to Kill the project without a new power deal. . _ 1994: The public review’s technical hearings begin Jan. 17 in Prince George. . The Terrace Standard, Wednesday, January 19, 1994- AS CORRESPONDENCE FOR THE TERRACE STANDARD The Mail Bag Strong picker presence Dear Sir: Tread with interest your articles on pine mushrooms and the pro- posed task force assigned to look at the industry. It will be a great injustice if there is not strong Tepresentation of local people In- volved in the industry as part of that task force. I started picking when I was 13. It was great recreation and we made some money, too, I took my mother down to Vancouver to a Canuck game with part of the proceeds (Montreal won). — Mr. Grier’s comments about the industry being great for people on welfare or UI does bother me. He is quite right that it {s a great financial boost for them, and i am sure he knows that all people drawing money from those two sources are required by law to declare all their carnings to the appropriate deparimenis. But do they? What would compel them to? Mushrooms are paid for in cash, no receipts, no names, no records, just cash. But people are honest, they would report — yeah, like no one cheats on GST, or on their wives, . I work five days a week, and pick when I find the time. I pay taxes, part of my tax money goes to welfare payments and part to UL. Those pickers who are on welfare or Ul pick five days a week, make good money and put my tax money in their packets, too. So what is wrong with a regulation if it can stop that abuse? Not al! the money goes into the local economy, The Cranberry is a tent city in September. From Alberta, Quebec from all across Cana- da they come, from overseas they come. They camp there, pick seven days a week, buy some groceries and gas. The rest of the Money goes home, If you had seen Glacier Creek when Dad and I first picked there and see it now, you would agree there needs to be some regulation. Some, but not too much, but you know how governments are on overkill. That’s why it Is so very important that there be good, strong, local representation on that task force. Albert Watmough, ' ‘Terrace, B.C, ‘Students being denied ‘An open letter to: Mr. R. Greenwood, Principal, Skeena Jr. Secondary, Dear Mr. Greenwood: Iam writing to express my concerns regarding the Tack of a stu- dents council at Skeena Jr. Secondary School. ms I was informed that the reasons there is no students Council this year is that no Icacher was willing to participate, I find this appall- ing. In this day and age the challenges our children face are much greater than ever before. They need to lear much more than aca- demics they-also need to Jeam Jeadership skills and how to work co- operatively. These skills must be learned long before gradualion. They also need to feel they have some ownership in their school in order to not only stay in school but to excel, Without a students council they not only have no ownership they have no voice. I find it difficult to understand how any group of adults could al- low this to happen. How can so called professionals, and I am refer- Ting to both. management and. teachers.be so neglectful. of ouymost precious | resource:: IT wonder how all the staff of School District 88, ‘would function without their unions and management associations. The students at Skecna Jr. Secondary are being shown they simply are not worth the time or effort of even one of their role models, - [hope that when this letter is recived some serious thought will be given on how to rectify this appalling situation and that a stu- ” dents council will be formed, It is every student’s right and respon- sibility to have representation at the students council level, So oe ~ Yours-truly, “Candice Kerman, - ~ Terrace, B,C, THE START IS FOR PEOPLE LEARNING TO READ ~The Start New mill started Work has started on a new mill in town. It is going in right beside Skeena Sawmills on the highway. In the picture are Len Bruggeman and Ken Strymecki. They are working on the foundations of the new mill. The new mill is called a value added mill. It will take hemlock logs and turn them into lumber, The lumber will be shipped out of the country. The hemlock will be turned into window frames and door frames. There is a big demand for this type of wood. — The new mill will employ more than 20 people, It is costing near- ly $2 million to build, The mill-is owned by Forstar Trading of New Westminster and West Fraser, which owns Skeena Sawmills, These two. partners have formed a company called Forwest to run the new mill ae