September 19, 2018
Sent via E-mail to ec.ministre-minister.ec@canada.ca and melanie.smith@ceaa-acee.gc.ca
Hon. Catherine McKenna
Minister of Environment and Climate Change
Environment and Climate Change Canada
200 Sacré-Coeur Boulevard
Gatineau, QC K1A 0H3

Melanie Smith,
Team Lead for CEAA,
Atlantic Regional Office,
1801 Hollis Street, Suite 200,
Halifax, NS B3J 3N4

Dear Minister McKenna and Ms. Smith:
Re: Request for designation under CEAA 2012 of Northern Pulp Nova Scotia’s proposed
new effluent treatment facility (ETF)
Friends of the Northumberland Strait (FONS) believes that the Minister of Environment for the
Province of Nova Scotia is unable to conduct an unbiased environmental assessment under the
Nova Scotia Environment Act of Northern Pulp’s proposed new effluent treatment facility (ETF).
We believe that the proposed project requires a Federal environmental assessment under the
Canadian Environmental Assessment Act, 2012 (CEAA). Our organization is adding our voice to
the voices of many other organizations, individuals, businesses, and municipal and provincial
elected representatives in requesting that the federal Minister of Environment and Climate
Change designate Northern Pulp’s proposed ETF as a physical activity requiring an
environmental assessment pursuant to section 14 of CEAA 2012.
We support the reasons for requesting designation presented in separate applications, including
the potential impact of the project on federal waters, on fish and fish habitat, on aquatic species
under the Species at Risk Act, potential changes that impact Prince Edward Island and New
Brunswick as well as Nova Scotia, and potential impacts on First Nations communities,
including on commercial and food fisheries. We note that the Minister has received more than
5,000 hard copy and electronic requests for CEAA designation, including a joint application from
organizations representing over 3,000 fishermen from Nova Scotia, New Brunswick, Prince
Edward Island, and Pictou Landing First Nation. This strong response demonstrates the broad
public concern about the risks Northern Pulp’s proposed ETF poses to the Northumberland Strait
and our communities.
Friends of the Northumberland Strait believes that the Nova Scotia Government has significant
conflicts of interest which compromise its neutrality and prevent the Provincial Environment
Minister from conducting an unbiased environmental assessment of Northern Pulp’s proposed
new ETF. The circumstances giving rise to these conflicts of interest are set out below. Due to

 the Province’s compromised position, we believe that the environmental assessment of this
project should not be left in Provincial hands.
The Province has a direct financial and proprietary interest in the current design and
construction of the proposed ETF
The Province does not have an arm’s length relationship to the new ETF. The Province is closely
linked, or has the appearance of being linked, to the new ETF in several ways which preclude it
from conducting a neutral and unbiased assessment of the environmental effects of the project.
The Province has acknowledged the significant possibility that it may become the
owner/operator of the new ETF and has invested heavily in the current design of the ETF.
Within an environmental assessment, the Province will have to assess that very design and may
have to pay for any changes to it. The Province therefore has a strong motivation to approve the
design without changes, and ignore or minimize the environmental risks posed by the proposed
ETF.
1. According to a September 2017 news report by CBC, the Province and Northern Pulp
were then in discussion as to who will own and operate the new ETF for the Northern
Pulp mill and who will pay for it. According to Brian Taylor of NS Transportation,
Infrastructure and Renewal (TIR), “The engineering and design processes should help
inform those negotiations." 1
2. In March 2018, TIR Minister Lloyd Hines confirmed that the Province has a number
of potential relationships to the new facility, including ownership, partnership and/or
shared liability. In response to a question from CBC reporter Michael Gorman about
whether the public would be responsible for the full costs of the new facility, Hines
responded, “ ‘In the present, we look at partnering, we look at sharing liability, we
look at reasonable partners who want to reach an objective who want to get things
done.’ Ultimately, it means the government is negotiating with the mill for a scenario
where the province wouldn't have to foot the full bill, said Hines. Other outstanding
issues to be settled include the design of the facility and determining ownership, said
Hines.” 2
3. According to the Nova Scotia Public Accounts for the period April 2017 to March
2018, 3 $6,526,148.46 were disbursed in that period to Northern Pulp, including
$6,001.238.13 from Transportation and Infrastructure Renewal (TIR) (Grants and
Contributions). Communication from TIR to MLA Karla MacFarlane confirmed that
“This funding was related to design work on a possible future effluent treatment
facility.” 4 5 An article by Brian Flinn in allnovascotia.com, August 21, 2018
confirms that the payment from the province covers costs relating to design work for
the ETF. 6 FONS believes that this represents a significant Provincial investment in
the design of the proposed ETF.

1

http://www.cbc.ca/news/canada/nova-scotia/northern-pulp-proposal-boat-harbour-waste-water-facility-1.4270995
https://www.cbc.ca/news/canada/nova-scotia/boat-harbour-northern-pulp-mill-pictou-county-effluent-1.4599028
3
https://www.novascotia.ca/finance/site-finance/media/finance/PublicAccounts2018/2018_Vol3.pdf , p330
4
Private communication with Pictou West MLA Karla MacFarlane
5
http://thechronicleherald.ca/novascotia/1592134-nova-scotia-pays-millions-for-northern-pulp’s-treatment-facilitydesign
6
allnovascotia.com, August 21, 2018 (behind paywall)
2

 The Province may face direct and significant financial consequences and litigation if it does
not quickly approve the environmental assessment
1. In 1995, an Indemnity Agreement 7 was signed by the Province of Nova Scotia in
favour of Scott Maritimes. We understand that this Indemnity has been transferred to
Northern Pulp as a successor owner of the pulp mill at Abercrombie Point. In general
terms, it obligates the Province to indemnify the mill owner against any losses,
expenses or costs arising from any legal claim put forward by anyone in relation to
the existing effluent treatment facility (the Boat Harbour Treatment Facility),
including costs arising from compliance with government directives and orders and
even violations of environmental laws.
2. We believe that the Indemnity Agreement, combined with the 2002 Lease Extension
Agreement giving the Mill the right to use the Boat Harbour Effluent Treatment
Facility until 31 December 2030, holds the Province responsible for the cost of a new
ETF required by the closure of Boat Harbour Treatment Facility by January 30, 2020
under s. 3 of the Boat Harbour Act. The agreement may also make the Province
responsible for any lost profits that Northern Pulp could incur from not being able to
continue to use Boat Harbour until the end of the lease period. The Indemnity
Agreement, Lease Agreement and related documents 8 impose on the Province a direct
financial interest in decisions relating to the new ETF, both the cost of a new ETF and
a potential claim for lost profits if the new ETF is not in operation in time to meet the
deadline for closing Boat Harbour. In 2015, the estimated cost for building the new
treatment facility was $100 million.9 Estimates of lost profits could be significant. 10
FONS believes that the Province’s potential financial liability, and the urgent need to
have a new effluent treatment process operational before January 2020, create
powerful incentives for the Province to approve the presently proposed ETF. These
pressures create barriers to the Province taking the time necessary to fully assess the
proposal and determine whether to require and fund a more costly, more
environmentally protective design, or to reject the proposed project.
3. The 1995 Memorandum of Understanding, to which it appears that Northern Pulp and
the Province are now parties, requires the Province to, among other things, at clause
4.01(l) “…use its best efforts to assist Scott [now Northern Pulp] obtain [sic] all
necessary permits, consents and approvals to permit the construction and operation of
7

https://docs.wixstatic.com/ugd/b61814_0a1a269b9eb943aca6bfebf5308f5f47.pdf , Tab 1
The Agreements referred to are listed on page 2 of the April 9, 2015 letter of Appeal from Northern Pulp to
Environment Minister Randy Delorey, http://northernpulp.ca/assets/Uploads/NorthernPulpAppealLetter.pdf Tab 2
They include 1) Memorandum of Understanding dated December 1, 1995 (“MOU”), Tab 3, 2) Lease dated
December 31, 1995 (“Lease”) Tab 4, 3) License Agreement dated December 31, 1995; Tab 5, 4) Indemnity
Agreement dated December 31, 1995 (“Indemnity Agreement”) Tab 1, 5) Water Supply Agreement dated June 30,
1995 (“Water Supply Agreement”) 6) Lease Extension Agreement dated October 22, 2002; and 7)
Acknowledgement Agreement by the Province dated May 12, 2008 (“Acknowledgement Agreement”).
(Collectively, the “Agreements.”). We are not privy to the contractual arrangements between Northern Pulp and the
Province, but to the best of our knowledge, these agreements are still in force and we assume this to be so in this
submission.
9
April 9, 2015 Northern Pulp letter of appeal to Minister Randy Delorey, p 8, II, A,
http://northernpulp.ca/assets/Uploads/NorthernPulpAppealLetter.pdf , Tab 2
10
Private conversations with elected representatives
8

 a replacement treatment facility to replace the [Boat Harbour] Facility at the
expiration of the term of the Lease.” We believe that the obligations imposed by this
clause are completely at odds with the Minister’s obligation to conduct an unbiased
and neutral environmental assessment. A refusal to accept the ETF as proposed could
result in contractual liability for the Nova Scotia Government.
4. On April 9, 2015, Northern Pulp appealed new Industrial Approval conditions
established by NS Department of Environment. In a letter to the Minister of
Environment (attached Tab 2), Northern Pulp discussed its views of its agreements
with the Province, in part as follows:
"Government cannot arbitrarily revoke Northern Pulp's contractual rights under the
Agreements with the Province by way of an administrative approval process. Any renegotiation of Northern Pulp's rights or the Province's obligations under the
Agreements must necessarily be the result of written amendments to the
Agreements. ... Absent any such cooperation between the Province and Northern
Pulp, certain provisions of the [Industrial] Approval cannot reasonably stand given
their clear breach of Northern Pulp's rights and the Province's obligations under the
Agreements. Any provision in the Approval that is inconsistent with the Agreements
must be removed or revised so that the Approval is consistent with the
Agreements...” 11
Northern Pulp's words speak for themselves, but appear to indicate that Northern Pulp
considers the contractual relationships with the Province to supercede any statutory
discretion on the part of the Province to regulate Northern Pulp's operations on points
covered by those agreements.
The Province has been unwilling to communicate with the local community that would be
affected by the proposed ETF

11

1.

The Province has been co-operating with Northern Pulp on the proposed new ETF
project, and providing significant funding to Northern Pulp for project design, but has
been unwilling to speak with or provide information to fishermen’s groups or
citizens’ groups concerned about the project’s potential risks. The Minister of
Environment has received requests for meetings about the project from fishermen’s
organizations, tourism organizations, and community representatives, including our
group. Neither the Minister of Environment originally responsible for this file, nor the
new Minister, has agreed to a meeting with any of these groups.

2.

On June 26, 2018, a working group representing more than 3,000 fishermen from
three provinces and Pictou Landing First Nation sent then Environment Minister Iain
Rankin a detailed request for information relating to correspondence, discussions, and
meetings between provincial officials and Northern Pulp on the subject of the
proposed new ETF. When no information was received, the request was sent again on
July 27, 2018 to the new Minister of Environment, Margaret Miller. A response from
Minister Miller dated August 22, 2018 provided a small amount of information in

p 4, April 9, 2015 Northern Pulp letter of appeal (attached) The Agreements referred to are listed on page 3 of the
letter, and are included in footnote 8 on page 3 above, and attached where available as Tabs 2-5.

 relation to several of the questions. In response to the majority of the questions which
related specifically to the proposed new ETF, the Minister provided no information.
Instead, after a delay of two months, the Minister wrote, “Any member of the public
can apply to receive this information through the process which is required by the
Freedom of Information and Protection of Privacy (FOIPOP) Act.” 12
The former lawyer and lobbyist for Northern Pulp is now a senior civil servant in the
Provincial Government
Mr. Bernie Miller was a registered lobbyist for Northern Pulp from 2009 to 2014. He moved
from this role to a position in the Premier’s office in 2014, when he was appointed Deputy
Minister, Office of Planning and Priorities and Senior Executive Advisor, Executive Council
Office, for the Province, reporting directly to the Premier. In addition to his position as
registered lobbyist for Northern Pulp, Mr. Miller served as the pulp mill’s lawyer on
environmental compliance for many years prior to moving to the Premier’s office. Mr. Miller
was present at the signing of the 1995 Indemnity Agreement on behalf of Scott Maritimes. When
Mr. Miller took the position in the Premier’s office in 2014, questions were raised as to whether
he would be in a conflict of interest. Conflict of Interest Commissioner Merlin Nunn found that
his position would be a conflict. 13 Premier McNeil has stated that Mr. Miller would have
nothing to do with the Northern Pulp file.
Mr. Miller currently holds the position of Deputy Minister of the Office of Strategy Management
(2017 to present), and reports directly to the Premier. He also holds the position of Deputy
Minister for the Department of Business, reporting to Minister Geoff MacLellan. According to
Bloomberg, Northern Pulp Nova Scotia Corporation and Northern Timber Nova Scotia
Corporation are both subsidiaries of Northern Resources Nova Scotia Corporation. 14 According
to information obtained through the Nova Scotia Registry of Joint Stock Companies in
September 2018, five registered companies, Northern Pulp Nova Scotia Corporation, Northern
Timber Nova Scotia Corporation, Northern Resources Nova Scotia Corporation, Northern Pulp
NS GP ULC and 3243722 Nova Scotia Limited have the same two registered directors, John
Hamm (previously Premier of Nova Scotia) and Choong Wei Tan, and the same General
Manager, Bruce Chapman. Northern Resources Nova Scotia Corporation lists one additional
director, Terri Fraser. 15 Northern Pulp is a key player in the Westfor Management Group which
has been given management of 1.25 million acres of Nova Scotia’s forests by the provincial
government, with a 10-year additional lease pending. 16

12

Letter from Minister of Environment Margaret Miller, August 22, 2018, Tab 7
https://www.cbc.ca/news/canada/nova-scotia/connections-revealed-between-high-ranking-bureaucrat-andnorthern-pulp-1.2747606 ,
13

14

https://www.bloomberg.com/research//stocks/private/snapshot.asp?privcapId=129343391
Northern Resources Nova Scotia Corporation, through its subsidiaries, Northern Pulp and Northern Timber operates
paper and pulp mills. The company is based in Canada. As of May 12, 2011, Northern Resources Nova Scotia
Corporation operates as a subsidiary of Paper Excellence Canada Holdings Corp.
https://www.bloomberg.com/research//stocks/private/snapshot.asp?privcapId=129343391
15
Tab 8
16
http://www.digbycourier.ca/news/local/westfor-presents-at-digby-municipal-council-on-business-its-methods36584/

 In his present positions, Mr. Miller is a key member of the provincial government team for issues
with a broad provincial reach. It has never been clarified whether Mr. Miller is involved with any
files relating to Northern Pulp’s parent company, Northern Resources Nova Scotia Corporation,
its sister company Northern Timber Nova Scotia Corporation, the Westfor Management Group
in which Northern Pulp is a key player or any other related company. We believe it would be
difficult to draw clear lines of distinction between decisions which impact Northern Pulp,
Northern Resources, Northern Timber and Westfor. The Department of Business, of which Mr.
Miller is Deputy Minister, is described on the government website as “a new, lean central agency
focused on creating the right conditions for the private sector to grow the economy and create
jobs.” We believe that in Mr. Miller’s positions as Deputy Minister for Strategy Management
and Deputy Minister for Business, it would be difficult to avoid involvement with decisions that
impact Northern Pulp or its related companies, Northern Resources, Northern Timber or with
Westfor Management Group.
The former Environment Minister, a cabinet colleague of the current Environment Minister,
made repeated public statements minimizing the environmental impacts of the proposed ETF
Iain Rankin, who served as Environment Minister until July 2018, responded to constituents’
concerns about Northern Pulp’s proposed new ETF discharging 70-90 million litres of treated
effluent daily into prime fishing grounds of the Northumberland Strait with the statement, “I am
sure you are aware that effluent from the pulp mill has been treated by the Boat Harbour effluent
treatment facility and then discharged into the Northumberland Strait for the last 50 years.” 17
Minister Rankin made the same point in responding to PEI Premier Wade McLaughlan, who also
raised concerns about the project. This talking point was also used by Northern Pulp’s
spokespeople. 18 The statement is misleading as it ignores the current effect of the Boat Harbour
Basin in mitigating the impacts on the Strait itself (although to the great environmental detriment
of Boat Harbour itself and to the Pictou Landing First Nation.)
Friends of the Northumberland Strait wrote to Minister Rankin 19 providing detailed
information 20 to illustrate that the statement was misleading, and asking the Minister to
discontinue using the phrase. FONS requested a meeting with the Minister to discuss this matter,
as well as the group’s concerns about Northern Pulp’s proposed new effluent treatment plans.
FONS was never provided an opportunity to meet with the Minister or to engage in any
discussion about the statement or related issues. After receiving the letter and background
information from FONS, the Minister continued to use the same statement, “I am sure you are
aware that effluent from the pulp mill has been treated by the Boat Harbour effluent treatment
facility and then discharged into the Northumberland Strait for the last 50 years” in responding to
constituents’ concerns. 21 In addition to the explanation provided by FONS, the Minister should
also have been aware that material published by the Boat Harbour Remediation Project showed
17

https://docs.wixstatic.com/ugd/b61814_cb1fe197fadd438d9ba75c3c98b0df78.pdf, Tab 9
“Kathy Cloutier, spokeswoman for Paper Excellence Canada, which owns Northern Pulp, said in an email
statement that effluent has been flowing into the strait for 50 years, and the proposed drainage site is not far from the
current one.” https://nationalpost.com/pmn/news-pmn/canada-news-pmn/fisheries-groups-opposing-nova-scotiamills-proposed-effluent-treatment-plant Similar statements also appear in a number of sponsored content
advertisements placed in the Chronicle Herald by Northern Pulp.
19
https://docs.wixstatic.com/ugd/b61814_4df46ccd4a6f406784b3997464d59a5a.pdf , Tab 10
20
https://docs.wixstatic.com/ugd/b61814_ab61cca668f1432f890d2d0a7715a554.pdf, Tab 11
21
Tab #12
18

 that hazardous contaminants found in Boat Harbour including cadmium, dioxins, furans,
mercury, polycyclic aromatic hydrocarbons (PAHs), petroleum hydrocarbons and zinc have not
been released into the Northumberland Strait. The Boat Harbour Remediation Project public
information states:
“Studies conducted in 2017 show that the contaminated sediments are, for the most part,
confined to the active Boat Harbour Effluent Treatment Facility and within its shoreline.
Lower concentrations of contaminated sludge have been found in the area outside the
dam structure, in the estuary. The underlying marine sediment in the estuary is not
contaminated. No contaminated sludge has been found beyond the estuary or out into the
Northumberland Strait.” 22
We believe that for the Minister to state that “effluent from the pulp mill has been treated by the
Boat Harbour effluent treatment facility and then discharged into the Northumberland Strait for
the past 50 years” without clarifying that at present, after leaving the Boat Harbour ETF, treated
effluent remains for a 28-day period in the 300 acre Boat Harbour Lagoon, which serves to
provide additional treatment, also known as polishing, including removing many hazardous
heavy metals and reducing TSS, is misleading and appears to underestimate the potential
negative impacts of the proposed new ETF. We believe that the fact that the Minister
responsible for undertaking an environmental assessment of the new ETF would make such
statements prior to receiving and evaluating information from members of the public, including
key stakeholders and independent experts, raises concerns about bias and prejudgment of the
issue. The fact that Minister Rankin continued to make the statement after being provided with
detailed information pointing out ways in which his statement was misleading, and was
unwilling to discuss this information with FONS, makes our concerns about bias and
prejudgment even stronger. We believe this is a compelling sign that cabinet is predisposed to
approve the anticipated Environmental Assessment without properly assessing and weighing the
environmental risks of the project.
Conclusion
In a recent Opinion piece in the Chronicle Herald, Ronnie Heighton, President of the
Northumberland Fishermen’s Association wrote:
“The Federal government recognizes that there are times when a project ordinarily
handled by a province should receive a federal environmental assessment. We believe
that Northern Pulp’s proposal to pipe treated effluent into the prime fishing grounds of
the Northumberland Strait is one of these times.” 23
FONS agrees with Mr. Heighton. We feel that the Nova Scotia government has a serious conflict
of interest in this situation, and is unable to conduct an environmental assessment of Northern
Pulp’s proposed new ETF that will be, or will be seen to be, fair and unbiased.
The stakes of this project are high. The Northumberland Strait is a valuable and delicate ecosystem. Thousands of fishing families in three provinces and First Nations communities depend
on the Strait for their livelihoods. The Strait is the backbone of the economy of many rural

22

23

https://docs.wixstatic.com/ugd/b61814_de2677b8310b45e7a11c2aa77a57c89d.pdf , Tab 13
Opinion: Feds must stick their oar in to protect Northumberland Strait, Chronicle Herald, July 25, 2018.

 communities, and a key component of the economies of three Atlantic provinces. The proposed
ETF would discharge into Federal waters.
Friends of the Northumberland Strait calls on the federal Minister of Environment and Climate
Change to designate Northern Pulp’s proposed ETF as a physical activity requiring an
environmental assessment pursuant to section 14 of CEAA 2012.
Thank you for your attention to these concerns. Please contact us if you would like any
additional information. We look forward to hearing your decision on this matter.

Jill Graham-Scanlan
President,
Friends of the Northumberland Strait
c: Sean Fraser, MP, Central Nova by email, Sean.Fraser@parl.gc.ca
Enclosures
Tab 1 - 1995 Indemnity Agreement (p 2, footnote 7)
Tab 2 - Northern Pulp Appeal Letter to Minister Delorey, April 9 2015, Footnote 8, p 2
Tab 3 - Memorandum of Understanding dated December 1, 1995 (“MOU”)
Tab 4 - Lease dated December 31, 1995 (“Lease”)
Tab 5 - License Agreement dated December 31, 1995
Tab 6 - NSGFPB et al letter to Minister Rankin June 4, 2018
Tab 7 - Minister Miller’s reply to Heighton et al August 22, 2018
Tab 8 - Northern Pulp Related Companies: Information compiled from Nova Scotia Registry of
Joint Stock Companies, September 2018 – footnote 15
Tab 9 - Iain Rankin Letter to citizen, January 16, 2018
Tab 10 - FONS letter to Minister Rankin, March 2, 2018
Tab 11 - FONS backgrounder, 50 Years of Pulp Effluent
Tab 12 - Iain Rankin letter to citizen, March 29, 2018
Tab 13 - Boat Harbour Remediation Project handout - Spring, 2018