Thursday, June 30, 2005
Calgary's News & Entertainment Weekly
FFWD Weekly
CITY
by Jeremy Klaszus
What’s up with those EUB boys?
Landowners struggle with a board they say rubber stamps industry applications
"The rubber stamp company." That’s what Alberta beekeeper Oscar Steiner calls the Energy and Utilities Board (EUB) because of the large number of wells that the province’s regulator of oil and gas activity approves.

"Applications go in, licenses go out," says Steiner.

The EUB approves more than 98 per cent of all routine gas well applications, and the board’s conditional approval of four sour gas wells (which are considered non-routine) just south of Calgary has reignited the passions of many landowners who feel the EUB favours industrial activity at the expense of human safety.

"I don’t trust (the EUB)," says Steiner. "I have so many examples and instances where the EUB has contradicted themselves, has spoken out of turn, has turned a blind eye, has not enforced regulations."

Steiner is one of many landowners in the province who have educated themselves on the complex inner workings and language of the EUB. He says he’s dealt with 12 different oil and gas companies that have operated on or around his land near Sherwood Park. Steiner describes himself as an "involuntary expert" on the EUB, adding it’s a role he’s taken on out of necessity and not desire.

Steiner is not alone in his struggle. Many landowners are frustrated with what they see as an ineffective regulator that gives the green light for companies to drill wells without adequately consulting and considering the public. They have complaints about everything from misinformation to exposure to harmful chemicals.

"There’s been a lot of evidence in the last few years that (the EUB) is not able to reassure Albertans that their decisions reflect the public interest," says Calgary MLA and Liberal environment critic David Swann. "There’s been a sense among many Albertans that they tend to bend over backwards for oil and gas development."

Swann says the province needs to conduct a review of the board to increase its effectiveness and regain the public trust. In particular, he says that the public should have more of a say in how board members are chosen.

"We need to make very clear where the public representation is, quite separately from the industry and oil interests," says Swann.

Steiner agrees that the nine-member all-male board should represent a broader swath of society.

"Look at the composition of the board. They all reside in Calgary, they’re all friends of the Klein government. Every one of the individuals on the board is male. How reflective is that of rural Alberta, where most of these decisions are being made?"

Another common criticism of the EUB is its reliance on industry for funding – sixty per cent of the board’s money comes from industry in the form of a tax applied to every well.

"To me, that’s a very incestuous relationship," says Steiner. "I believe it is reflective of the board’s decisions."

But EUB spokesperson Bob Curran says that’s not the case.

"That’s the kind of thing we’ve heard for years and years," he says. "It’s an easy thing to say, but it doesn’t affect our independence in any way, shape or form. We have to get our funding from somewhere."

Curran also points out that the statistic of 98 per cent of routine wells being approved doesn’t include applications that are sent back to companies because they’re incomplete, or applications that are closed by the board. Curran says between five to 10 per cent of applications fall into that category.

"That 98 per cent is a number that people that are critical of the board throw out there because it’s a convenient number, but it does not reflect what happens at this organization," he says.

Curran acknowledges that the number of approved wells is high, but he says there’s a good reason for that.

"Industry knows that if they submit an incomplete application, it will not be approved," says Curran. "There’s no leeway."

Curran says the EUB would welcome a provincial review of the board.

"If someone wanted to review our operations, we would welcome that scrutiny because we feel we have nothing to hide."

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