Vancouver Sun

B.C.’s cleaning bill hits $508 mil

Liability for contaminat­ed sites surges on new reporting rules

- ROB SHAW

VICTORIA B.C. taxpayers face a rapidly growing bill to clean contaminat­ed sites across the province.

The government’s liability to identify and clean contaminat­ed sites on public Crown land has jumped by $224 million in the past two years, and now sits at $508 million, according to a new government report this month.

That represents a 210 per cent increase since 2006, when the province estimated costs at $163.7 million.

“It’s definitely an issue people should be concerned about,” said Andrew Gage, a lawyer with West Coast Environmen­tal Law. “If they are not cleaned up, the cost of cleaning them up will probably get worse over time if the contaminat­ion spreads. If they are cleaned up, they are a significan­t financial cost.”

The increase is in part due to a 2014 change in how the government evaluates contaminat­ed sites, which obligates the province to make an informed estimate. Previously, potential liabilitie­s could go unreported if an assessment was not commission­ed because of a lack of funding or staff resources.

“Therefore, this is not an increase over two years of costs of remediatio­n but a statement of existing liabilitie­s that have existed for decades and are being reported based on new accounting standards,” the Ministry of Forests, Lands and Natural Resource Operations said in a statement.

Minister Steve Thomson was unavailabl­e for an interview despite repeated requests.

The government is on the hook for cleaning old and abandoned properties if the companies go bankrupt, no longer exist or if the sites have defaulted back to the province.

Many of the high-risk contaminat­ed sites involve old and abandoned mines, as well as pulp mills and industrial sites, which are leaching pollutants into the ground and water supply. But some are also in urban areas, like the ongoing remediatio­n of the Pacific Place lands at the former Expo 86 location in Vancouver’s False Creek, where B.C. agreed to remediate the soil and clean groundwate­r as part of a developmen­t deal with Concord Pacific. So far, the province has spent $68 million.

There are also major projects, like the Britannia Mine, 45 kilometres north of Vancouver, which was the largest copper-producing mine in the Commonweal­th in the early 1930s before it closed in 1974 and left taxpayers on the hook for $63.5 million in cleanup costs to date.

The ministry said it prioritize­s which sites to clean based on risks to human health and the environmen­t. Of 84 sites investigat­ed since 2003, 48 were deemed low priority, 18 were remediated and 16 were under investigat­ion or remediatio­n, according to the ministry report. The government has spent about $22.5 million on actual cleaning in the past two years.

“This is a huge financial as well as an environmen­tal liability for British Columbians,” NDP critic George Heyman said.

B.C. auditor general Carol Bellringer blasted the government in a May report on mining, warning taxpayers could be on the hook for even more costs in the future because of a $1.2-billion shortfall in the amount of securities mining companies have posted with the province compared to the estimated cleanup costs if they abandoned their projects. In response, Energy Minister Bill Bennett pledged to develop reforms to the system.

“If they then go bankrupt, we either leave the mess, which is unacceptab­le to British Columbians, or British Columbians are forced to pay the costs, which is equally unacceptab­le,” Heyman said.

The biggest shortfall was $500 million from Teck Resources for its coal mines and its large Highland Valley Copper mine against estimated reclamatio­n costs of $1.187 billion.

The B.C. government has, in the past, estimated there could be up to 2,000 contaminat­ed sites on private and provincial land across the province, a figure that doubles when you include contaminat­ed properties in which the federal government has liability.

This is a huge financial as well as an environmen­tal liability for British Columbians.

 ?? ADRIAN WYLD/THE CANADIAN PRESS ?? The auditor general has warned taxpayers could be responsibl­e for a $1.2-billion shortfall between the securities miners have posted and the estimated cleanup costs of their projects.
ADRIAN WYLD/THE CANADIAN PRESS The auditor general has warned taxpayers could be responsibl­e for a $1.2-billion shortfall between the securities miners have posted and the estimated cleanup costs of their projects.

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