Big equipment stickered

BAILIFFS UNDER the direction of the city were busy Sept. 5 attached lien stickers to New Skeena equipment at its mill here. The company owes the cily millions in back taxes and establishing its legal footing is one way of ensuring it has a chance of getting paid, said city officials.

Rules needed quickly

for offshore, says MP

SKEENA ALLIANCE MP Andy Burton says B.C. needs a version of the Atlantic Accord, which sets out the division of re- source ownership in the Maritimes, to establish the ground rules for what could be a thriving offshore oi) and gas industry here.

Above all else, secure tenure must come before ail and gas companies will be willing to invest the many millions of dollars necessary for exploration and possible development, he added.

“It’s the jurisdictional issue that’s the largest,” said Burton. “We need a Pacific Accord, just like the Atlantic Accord.”

He did acknowledge that tenure issues off of the west coast include native land claims,

But while tenure is im- portant, both the provincial and federal governments need to lift their moratoria on offshore drilling first, the MP continued.

While government ge- alogists forecast substan- tial oil and gas reserves under the seabed off of B.C.’s coast, the estimates have yel to be proven, said Burton.

“We've got to see what

From front

Andy Burton

we really have there,” he added.

Burton did admit to be- coming a little impatient at the slow pace undertak- en by both the province and the federal govern- ment in tackling the no- drilling moratoria.

- “The ball is really in the province’s court to have them lift their mora-

~torium. Once that happens,

then we can concentrate on the federal govern- ment,” he said,

In the meantime, the University. of Northern British Columbia contin- ues its offshore oil and gas research with four projects

Sirike vote Friday

The union is prepared to agree to a one-year wage freeze, Malhotra said.

He said the primary issues are ensuring companies fully fund workers’ pensions and benefits. Shift schedul- ing and contracting out are also issues.

The employers’ bargaining group, Forest Industrial Relations Lid., says the union has failed to table any meaningful proposals to help reduce the coastal indus- try’s high costs.

The companies say direct labour costs are more than 70 per cent higher than any other region.

“The B.C. coast needs to modernize its mills and la- baur practices just as the Pacific Northwest and other re- gions have done,” said FIR president Terry Lineker.

“During last month’s bargaining, the [WA tabled ab- solutely nothing that would reduce costs, but instead ta- bled a package which we estimate would add a mini- mum of $140 million to our tatal labour costs for the pro- posed term of the agreement.”

Monarch

financed by a $2 million provincial grant.

UNBC has hired several companies to do an as- sessment of the health of Marine ecosystems, to identify highly-valued marine and shoreline ar- eas, to review community and socioeconomic impli- cations and to. develop a way communities can quickly obtain information.

The plan is to have the bulk of information ready by early next year, says Norman Dale who is the UNBC program manager on the project.

The $2 million grant —

was provided last year to UNBC but its work is sep- arate from the provincial government’s own offshore oil and gas section. As well, the federal govern- ment has established its own procedures to pursue the idea of an offshore oil and gas industry.

COME ON DOWN... T’S FREE!

Local loggers buy mill site on the coast

A TERRACE logging family are partners in a venture to turn the old North Coast Timber sawmill in Prince Ru- pert into a log sort.

Lloyd, Norman and Gord Hull, along with Bob and Darren Smurthwaite of Prince Rupert have formed Kaien Iskand Fibre Ltd,

They have bought the sawmill from West Fraser and will liquidate its assets, turning it into a custom log sort and custom chipping operation.

“Anyone thal wants wood sorted, graded, whatever, we'll be hanging out a shingle and going to work,” Lloyd Huil said.

He said the sort will start up this month and custom chipping could begin around January.

Hull estimated Kaien Island Fibre will employ 25 to 30 workers initially and possibly more later.

He expects the timber to come through the sort as a result of the province’s move to make more wood avail- able through B.C. Timber Sales, a provincial goverament agency, and as a result of the takeback of timber from Major companies.

“Up to 20 per cent of the fibre is coming available,” Hull said. “We think this fits perfectly with the direction the government is taking,”

Kaien Island also has chip buyers lined up on Van- couver Island — and as far away as Turkey.

Hull said one Turkish mill is looking for environmen- tally certified fibre because its traditional suppliers in the Ukraine and Russia have balked at seeking certifica- tion.

The sale turns the page on the old North Coast Tim- ber sawmill, which West Fraser built for $40 million in 1995,

West Fraser closed the mill two years ago, citing the collapse of Japanese lumber markets and the shutdown of Skeena Cellulose, which was to buy the chips.

Hull said he and his partners aren't sawmill special- ists and have no plans to restart North Coast as one,

“What I consider to be the best most reputable saw- mill outfit in the province built it and they couldn't make it work,” he said.

“If West Fraser can’t make a sawmill run I’m not go- ing to try.”

He said the equipment will be sold off first piecemeal then by a mass auction.

Han

Meanwhile, the Hulls’ other firm is getting back inta the bush.

Don Hull and Sons Contracting has some logging work at the north end of Kalum Lake, where it bought some standing timber from New Skeena last year.

And the contractor is also beginning road construction work that will also lead to logging near Prince Rupert at Alder Creek and Kennedy and Smith Islands.

The coastal logging is for timber sold through B.C. Timber Sales. Lloyd Hull said about 10 employees are working in those areas now and that should rise to ar- ound 20 in the next week or so. ,

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“_#H HISTORY ATA. GLANCE - ~

5 YEARS AGO

A DELUXE plan for a multiplex that would cost an

# estimated $14 million is being pared down to a level hoped to be more palatable to taxpayers.

City planner David Trawin said city counsel re-

presentative Linda Hawes has indicated at advisory

design committee meetings that she would like to

see the project costs reduced to about $10 million. The- $14 million design included a double gym-

nasium and a 250-seat drama theatre. Now other op- §

tions are being considered to reduced capital costs. Hawes would not comment on what those plans ‘entail pending a Sept. 10th meeting. Sept. 9, 1998

10 YEARS AGO

WHETHER or not West Fraser will lose more than

100,000 cubic metres of wood because it is buying J

| out a partner remains unknown.

The company decided earlier this spring to buy out Enso Gutzeit Oy’s 50 per cent interest in joint venture Eurocan Pulp and Paper.

The $165 million deal between West Fraser and

f its Finnish partner needs the blessing of the forest’]

service because it involves wood rights. Provincial rules require five per cent of wood tenure be re- turned to the province whenever it is sold or relevant licences are up for. renewal. In this case that could add up to 110,000 cubic metres.

Forest minister Dan Miller will ultimately decide J

| if that take-back applies in this case. Sept. 8, 1993.

15 YEARS AGO

CONSTRUCTION should start early next year on a g renovation and expansion of the Terrace Shopping Centre.

Bob Guy of the Okanagan-Skeena Group Ltd. Va- .

f lued the project at $5 million.

The project would see the shopping centre grow |

f from 30,000 square feet to 50,000 square feet. The plan involves extensive remodelling of the | existing building which will be done in phases.

It also includes covered walkways for pedestrians. .

Sept. 7, 1988,

From the archives of the Terrace Standard — your |

| focal newspaper of record since 1988,

Construction, Terrace . Your Local Highway & Bridge Maintenance Contractor Phi: (250) 6382188]

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