To the Editor,I would like to point out some very important topics about the proposed Effluent Plant between our City (Dawson) and Shell Canada . The Posted
Contract in the Dawson Creek Daily News on Friday Aug 27 2010 has the following information. That Shell will pay $9.75 million dollars. You and I as taxpayers will pay $1.5 million for construction. It also states that the plant will do 4500m3 a day in water production from the plant. Shell will receive 3400 m3 a day. The city will receive 1,100m3 a day.
Let's do a break down of the 4500m3 if the city sold the water themselves.4500 m3/day X $4.50 per/m3 =$20,250 day ($4.50 m3 is actual charges for water); $20,250.00 day X 30 Days = $607,500/month revenue; $607,500 X 12 months = $7,290,000/year in revenue; $7,290,000 X 15 Years = ~ $109.350,000 total revenue.
Total lost to the citizens of Dawson Creek for a 15 year contract is $109,350,000 in Water Revenue.
This is the revenue the city actually is going to get: 1,100m3 X $ 4.5 m3 = $ 4,950/day; $ $ 4,950 X 30 days = $148,500/month; $ 148,500 X 12 months = $ 1,782,000/year to the taxpayer; 15 Years X $ 1,782,000/year =$ 26,730,000.
For 15 years the citizens of Dawson have to operate and maintain the plant with this money. There is no proof on what are the actual operating costs. I would like to see hard cost and facts. As Shell stated, this is a new technology from the EU. I do read all the different publications on the city's web page. The City has different numbers on every other announcement. Re: page 56 City News, Booklet for proposal of plant, and announcements in the Dawson Creek Daily News.
Now let's look at what Shell gets.
Shell pays $9.75 million and gets 3,400/day X $4.50m3 = $15,300/day; $15,300 X 30 = $459,000/month; $459,000 X 12 = $5,508,000/year; $5.508,000 X 15 years = $82,620,000 for a 15-year contract.
Cost to Shell $9,750,000.00 for start up. $82,620,000 - $9,750,000 = $72,870,000 to Shell's pocket for the complete contract proposed by our Council.
Shell will have the complete monopoly and control. No wonder they want to move forward with the plant.This contract states clearly that all other commercial water connections for industrial use will be terminated by the City of Dawson Creek Council.
Which means all Major Companies directly related to Oil and gas, Mining, and Forestry will be turned down for water usage? Shell will be the only one that can receive the water?
EnCana, Arc Energy, Huron Energy, Murphy, Suncor, Trident, Tourmaline, BP and Talisman also work in the area. Some companies have announced the building of plants, pipelines and drilling activity. The logging companies, Pipeliners, Trucking companies, owner operators and all other service contractors will be affected in a negative way. EnCana, Arc, Huron and Murphy have all donated large amounts of monies for projects in our Community. They too will be cut off from this water.
Our Mayor quotes no negative affect it's a win - win for everyone (page 56 community City News) Well, let's see. Here is an example of how it starts to affect the truck drivers of our community. Quoted by Ed Greenberg, a spokesman for SHELL CANADA put out in the same community City News on page 56. Shell wants to pipeline the water out to Groundbirch.
They say this will take about 85 trucks off the road a day. Right there Hundreds and Hundreds of PEOPLE are out of work when this contract is signed. Businesses and families livelihoods every day will be destroyed.
Dawson Creek Council is then taking away the water for the rest of the industry instead of having 5,000m3 a day down to 1,100m3. Who knows how many more families are going to lose there jobs and a way to feed their kids. That's just the start.
Let's look at the spin down affect. Truckers stay at hotels, motels, buy fuel, tires, parts, and clothing and eat at many restaurants. I personally think that is a very big negative affect Mayor Mike Bernier!!!
The main point I would like to make to my fellow citizens of Dawson Creek is that, if the proposed effluent plant was up and running by June 1, 2010, we would still be under stage 4 water restrictions today. This will not change anything; the fact that we don't have a new water source is the main reason for these water restrictions.
We would like to water our lawns and wash or trucks. Why do we not spend or invest money to a more sustainable water source for all citizens and industry alike. This would then stop the Monopoly that SHELL will have over everyone else. This would also put roughly $72 million dollars in the tax payer's pockets. Then [the city] wouldn't have to raise our taxes again. I'm sure we could afford to find another source.
This is a bad deal for the citizens of Dawson Creek. The Citizens of Dawson Creek can stop this proposed monopoly from moving forward.
The deadline for the submission of elector forms in relation to the approval process is 4:30 pm on Sept 272010. We need to get 719 Elector signatures to make this go to a referendum. Elector Response forms will be available City Hall between the hours of 8:30 am and 4:30 pm . Monday thru Friday excluding holidays. Only those responses received on the Elector Response Form established by Council will be considered by the Corporate Officer. The only persons entitled to sign the forms are Electors of the City of Dawson Creek.
Public consultation will begin with a town hall meeting on September 13th at the Kiwanis Performing Arts Centre at 1100 95th Avenue, at 7:00 p.m.
Fred Lumnitzer, Dawson Creek