The articles in this series appeared in The Ottawa Citizen in 2001 and concerned an environmental hearing taking place in Perth, Ontario, near Ottawa. All the articles were written on a freelance basis but my copyright does not include the many excellent photographs that accompanied them in the newspaper.
The series begins with a summary that occurred at the midpoint of the lengthy hearing, after an adjournment of several months. It then returns to the beginning and follows the first half in chronological order. (This reporter was not available to cover the second half.)
Stage set for water usage dispute
In hearings that start tomorrow, OMYA Inc. will defend its permit to take 1.5 million litres of water per day from the Tay River. It's a case that could have precedent-setting repercussions, writes Carrie Buchanan.
Monday, October 8, 2001
Page: C3
Section: City
Byline: Carrie Buchanan
Dateline: PERTH
Source: The Ottawa Citizen
PERTH - Into the Perth Civitan building they will
stream at noon tomorrow, about two dozen people
lugging boxes and binders full of documents.
Lawyers, scientific and technical experts, government
officials and a captain of industry will come to
answer their challengers: a retired Mountie, two
former teachers, the head of a Perth environmental
group, an Algonquin Indian chief, a former MP and
MPP, three Bob's Lake cottagers and the Council of
Canadians.
All are involved in an appeal by Ontario's
Environmental Review Tribunal of a permit (now in
abeyance) granted in August 2000 to OMYA
(Canada) Inc., a Swiss-owned multinational. OMYA
makes products out of calcium carbonate, which in its
natural form is limestone, marble or chalk. The
products are widely used in products ranging from
paint to drywall.
These people represent all of us. The questions at this
hearing are being asked across Canada: How do we
balance the needs of industry and the economy with
those of nature and healthy communities? And how
do we maintain control of our resources, as
once-public goods such as water become
commodities involved in global trade?
The permit now under appeal allows OMYA to
remove up to 1.5 million litres of water a day from
the Tay River, a small, struggling river that runs
through this picturesque town of 6,000 about 100
kilometres west of Ottawa. The Tay connects to a
network of 46 lakes whose shores are dotted with
thousands of cottages.
In 2004, the permit lets OMYA triple its water-taking
to 4.5 million litres a day provided monitoring and
further studies show no adverse impacts. The amount
is slightly more than the town of Perth used for
drinking water in 2000, according to testimony by
Jim Ronson, president of the Perth Community
Association. The smaller amount, to be used in the
first few years, would just about fill two
Olympic-sized swimming pools.
OMYA wants to mix most of this water with
ground-up calcium carbonate to make a slurry, used
in paper-making, which is shipped all over North
America in tanker trucks and rail cars. The slurry is
about 25 per cent water, similar to ketchup but less
dilute than, say, beer or liquid soap, says Olivier
Chatillon, vice-president and general manager of
OMYA (Canada) Inc., a company that has no
president.
OMYA now uses about 650,000 litres a day of
groundwater for this purpose, a majority of which
ends up in the product, Mr. Chatillon says. Thus,
most of the water OMYA wants to take will leave the
area in shipments to other parts of Canada and the
U.S.
Biologists who testified last summer noted that when
water leaves an ecosystem like this, it can't help
having an impact. However, several studies produced
to date have predicted "no significant impact" on
water levels or fish habitat in the river and the major
lakes that feed it.
The argument that OMYA is disrupting the
ecosystem bothers Mr. Chatillon. "Water is a
renewable resource and is constantly replaced by
rainfall. It's part of a complete cycle," he says.
"Water flowing in the Tay River goes into the St.
Lawrence River and (also) leaves the area."
To the Council of Canadians, OMYA's shipments
should be classified as a bulk water export, prohibited
under several treaties and accords. But senior water
policy and trade experts have told the hearing that
OMYA's product is not a prohibited export. That's
because it's a "product" rather than "water in its
natural state," said Frank Quinn, a senior federal
water policy analyst. He got substantial agreement
from Stephen de Boer, a senior provincial
government trade analyst, when both men testified in
July.
Products, they said, are exempt from the ban on water
exports in Canada's international treaties and
interprovincial accords. They're also exempt from
Ontario law prohibiting water shipments from one
watershed to another. Even bottled water is
considered a product and, provided the containers are
small, they too are exempt.
Presiding over the Perth hearing is a former federal
cabinet minister, Pauline Browes, who was a junior
minister of the environment and later minister of
Indian Affairs in the Brian Mulroney governments of
the early 1990s. It's her job to decide whether the
permit should go ahead, perhaps with conditions
attached, or be revoked.
Already, Ms. Browes has made legal history by
agreeing to consider, among other issues, the impact
of trade agreements such as the North American Free
Trade Agreement and World Trade Organization
agreements, as well as water exports and the
relevance of Canada's federal-provincial bulk water
accords.
"This case is a landmark. It's the first time a
regulatory tribunal at a provincial level has ever
considered Canada's obligations under NAFTA and
the WTO. And the fact that it concerns a water-taking
permit makes it that much more important," says
Steven Shrybman, the lawyer representing the
Council of Canadians at the hearing.
"The 20th century was about oil and gas. The 21st
century is about water. It's what many say the wars of
the next 100 years will be fought over. So I think
that's the context," Shrybman adds.
If the Council of Canadians is right, the hearing
taking place in this small Ontario town could have
serious repercussions for Canadians' control over
water resources. That's because this permit, if
granted, would set a precedent, says Jamie Dunn,
water campaigner with the Council of Canadians.
What's precedent-setting about it? Basically, that so
little information was required before it was granted.
No environmental assessment was done, and the
environment ministry relied largely on studies paid
for by the company, to assess the potential
environmental impacts. One of those studies was
thoroughly criticized by hydrology experts at the
hearing for relying on scanty, out-of-date data on
water flows.
Under NAFTA's controversial Chapter 11, Mr. Dunn
argues, a foreign company could claim the same right
in the future, to obtain a water permit without any
environmental assessment. If denied such a permit,
the company could sue, and in a private hearing, win
a cash settlement not just for the amount the company
invested, but also for lost profits it might have
earned.
Ontario routinely makes decisions about water
permits without basic information about what is
being taken out of the system already, and what will
be needed in the future, Ontario's Environment
Commissioner Jim Miller told the hearing in July. He
called for a "water budget" to account for such things.
There are some mitigating factors: OMYA's permit
did set conditions requiring more studies during the
first three years, before the higher amount can be
taken in 2004. The ministry also consulted with other
federal and provincial departments and agencies. And
in the year since the permit was issued, the company
has produced several more studies. But there have
been many scathing comments about Ontario's
procedures during the hearing, including some from
federal officials.
"It seems strange that you would issue a permit
before you had all the information. We normally
issue the permit after the information is gathered,"
said David Ballinger, the senior Parks Canada official
responsible for the Rideau Canal.
Indeed, Brent Valere of Fisheries and Oceans Canada
said the federal government, upon hearing about
OMYA's plans, launched a full environmental
assessment because it was felt the device could harm
fish habitats. The federal process requires that the
studies be done by scientists who are not paid by the
company applying for the permit, Mr. Valere noted.
The federal environmental assessment was nowhere
near finished when the permit was issued, and is still
underway. The process has produced "volumes" of
material since it began in March 2000, Mr. Valere
said, and a report is expected next week, which will
then be subject to public consultations for 30 days
before it's finalized. The process might continue, Mr.
Valere testified, depending on the outcome of the
public consultations. But if the public comments
don't turn up a significant objection, it could soon be
over.
For Mr. Chatillon, the end to all these hearings and
consultations is anxiously awaited. "We have been
very supportive of the process, but after 20 long
months it's time now to put some closure on this
issue." That's how long it has been since the company
first applied for the permit, on Feb. 29, 2000.
The appellants, too, are suffering. Some, having used
up vacation time to attend the first three weeks in
June and July, are taking unpaid leave for the
unexpected extra month the hearing is scheduled to
take. Some, such as Carol Dillon, have cottagers
staying in their homes because the cottages aren't
winterized.
For Ms. Dillon, the story of this hearing is
multifaceted, involving community tensions over
OMYA's role as a major employer, as well as the
environmental issues at hand. It's a story that's not
isolated to Perth, she notes.
"It's happening in local areas across the country. Not
always about water, but we hear from British
Columbia about trees and logging, it's the same sort
of thing. It's big multinational companies, it's small
communities, and it's the pressure that the presence of
a very large company can have on a small community
in a number of ways."
The hearing is scheduled daily at the Civitan Club,
6787 County Road 43 in Perth, from noon to 5 p.m.
Tuesday, 9 a.m. to 5 p.m. Wednesday and Thursday,
adjourning at noon on Friday. It is expected to
continue until Nov. 2.
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