Potentially damaging Jackpine oilsands mine expansion OK'd by Ottawa

Shell Canada's Jackpine oilsands mine expansion plan has receivedthe go-ahead from Ottawa, despite the environment minister's viewthat it's "likely to cause significant adverse environmentaleffects."

In a statement late Friday, Environment Minister Leona Aglukkaqconcluded that the effects from the 100,000-barrel-per-day expansionare "justified in the circumstances."

The project would be located north of Fort McMurray, Alta. The nearby Athabasca Chipewyan First Nation has said the projectwill violate several federal laws covering fisheries and species atrisk, as well as treaty rights.

They said they had received so little information on how Shellplans to live up to conditions imposed on it by a federal-provincialpanel that they asked Ottawa for a 90-day delay on the decision originally expected Nov. 6 to work some of those issues through.

They were granted a 35-day delay, but Friday's decision didn'teven wait until that period was up.

Allan Adam, chief of the Athabasca Chipewyan First Nation, wasoutraged that the federal decision came as thegovernment was stillsupposed to be in talks with the band about how the project'seffects were to be mitigated.

"They just kept us in the loop and strung us along and playedgames with us," he said. "To them it's all a game."

• Jackpine Mine will destroy wetlands and wildlife, First Nations say
• Northern Alberta band challenges Jackpine oilsands proposal
• Jackpinereview panel won't rule on First Nations challenge
• Court rules against aboriginal groups on Jackpine decision
• Supreme Court refuses First Nation's appeal over oilsands expansion

Although all 88 conditions the review panel placed on the projectare now legally binding, Adam said neither the government nor thecompany has explained how those conditions will be met.

Adam said the government's move to go ahead despite the seriousenvironmental consequences of the project leave the band littlechoice.

"This government has to realize we'll be holding themaccountable," he said. "We'll be looking at legal action and we'llpursue this through legal action."

Greenpeace speaks out against expansion

Greenpeace Canada issued a statement accusing the Harpergovernment of putting the short term interests of oil companiesahead of environmental protection and First Nations treaty rights.

"Canada would be much better off diversifying its economy,investing in renewables, green jobs and projects that get us out ofthis madness not deeper into it," the statement said.

"How many more extreme weather events will it take till ourPrime Minister realizes this is one problem he can't mine his wayout of?"

The Jackpine expansion would allow Shell to increase its bitumenoutput by 50 per cent to 300,000 barrels a day.

"We're reviewing the recommendations and proposed conditionsattached to the approval," said Shell spokesman David Williams.

Williams added Shell must consult with the minority partners in the project Chevron and Marathon before making a formal decisionto proceed.

Review panel suggests compensation for 'irreversible damage'

A review panel concluded last July that the project was in thepublic interest but warned that it would result in severe andirreversible damage so great that new protected areas should becreated to compensate.

The review concluded that the project would mean the permanentloss of thousands of hectares of wetlands, which could harmmigratory birds, caribou and other wildlife and wipe out traditionalplants used for generations.

It also said Shell's plans formitigation are unproven and warned that some impacts would probablyapproach levels that the environment couldn't support.

Shell has said Alberta's new management plan for the oilsandsarea will provide more concrete data to assess and mitigateenvironmental impacts.

The company has purchased about 730 hectaresof former cattle pasture in northwestern Alberta to help compensatefor the 8,500 hectares of wetland that would be forever lost.