Alberta energy regulator shutting off discussions, critics say

Critics say Albertans are in danger of being shut out of discussions on how the province's natural resources are developed.

Expert observers and opposition politicians worry Alberta's newenergy regulator is drawing the circle of who can speakso tightlythat one hearing on a proposed energy project had to be cancelledbecause no one was allowed toappear.

"They have not widened the circle at all," said Nigel Bankes, aprofessor of resource law at the University of Calgary.

"I think it sends the overall message that [they're]not reallyinterested in public review."

The Alberta Energy Regulator is responsible both for holdingpublic hearings on oilsands proposals and other energydevelopmentsand for determining who has the right to appear.

The regulator isobliged to allow only those"directly and adversely affected" toappear.

Lately, ithas taken that language too far, said Liberallegislature member Laurie Blakeman.

"Unless you live across the road literally, across the road you're not going to get standing."

First Nations, coalitions denied chance to speak

Bankes and Blakeman point to a recent decision concerning apublic hearing scheduled for Canadian Natural Resources Ltd.'s(TSX:CNQ) Kirby oilsands expansion proposal.

Seven First Nations, one individual and one environmentalcoalition applied for permission to speak. Three of theapplicantslater withdrew their requests. Of the six remaining, not one met theregulator's criteria.

The hearing into an 85,000-barrel-a-day project was simplycancelled.

"The panel has in fact determined that none of the parties thatfiled a submission in response to the notice of hearing willbepermitted to participate in a hearing and therefore the AER will not be scheduling a hearing," the regulator wroteto one of the applicants onMarch 27.

Last fall, two aboriginal groups were also denied standing to appear at public hearings on proposed oilsands developments adjacentto their traditional lands.

Decisions on who has the right to speak are not made public.

The regulator has reversed some earlier decisions made by AlbertaEnvironment. It gave the Oilsands EnvironmentalCoalition permissionto speak at a Southern Pacific Resources hearing after the group which includes the Pembina Institute and the Fort McMurray Environmental Coalition was turned down a second time by thegovernment.

Alberta Energy Regulator spokesman Peter Murchland said theagency makes judgments on a case-by-case basis.

"AER hearings provide a level playing field for all participantsand are open to the public to observe," he said.

"Submissions toparticipate in hearings are assessed depending on a number ofcriteria including whether or not anenergy project directly andadversely affects them."

Regulator 'closing its mind?'

Blakeman said decisions such as what happened with the Kirbyproject ignore important realities.

"The government seems to believe that the air doesn't move,water doesn't flow and soil doesn't leach," she said.

"There's nothing wrong with making a process move faster or moreefficiently. There is something very wrong with itwhen they designa process that essentially prohibits any other consideration from being on the table."

The position of the regulator and the government appears to conflict with recent Supreme Court rulings, said Bankes.

"The Supreme Court has moved in favour of recognizing what'sreferred to as public interest standing. If ... you can show thatthere's a serious issue to be talked about, that there's no otherobvious person to raise the issue, then the court cangive youstanding.

"That's the sort of discretion the AER should be able toexercise. Instead, what it's doing is closing its mind."