NALCOR’S AGM: ONE QUESTION FOR ED MARTIN ON “THE NORTH SPUR INSTABILITY PROBLEM”

Since Nalcor’s
last Annual General Meeting, the $7.7 billion Muskrat Falls Project was
sanctioned and the construction site is busy with contractors.  There are no surprises to report, just yet,
right?

Actually, that’s
not correct.

What about
the North Spur? What’s that, you may ask? That’s the natural feature which, together with
two new dams to be built by Nalcor, will constitute the “impoundment system” of
Muskrat Falls.  Cabot Martin, the former
Senior Policy Advisor to several Premiers, has referred to it as the “weak link
in the Muskrat Falls Project”.  Why? Because,
without the North Spur, there can be no Muskrat Falls.

What is the
problem?  You can read Cabot Martin’s full
Report on “The North Spur Instability Problem” yourself.  (I strongly suggest that you take the time to
do so.  It is quite detailed and offers
highly compelling arguments for stopping this Project on geotechnical grounds,
alone.)  In a nutshell, the “ground
conditions at the North Spur are very unstable as they include significant
amounts of glacio-marine clay (Quick Clay) that is highly prone to liquefaction
and failure.”

Yes, that is
a direct quote: “liquefaction and failure”. 
This Scribe wrote an Article on Mr. Martin’s Paper, in March of this
year, entitled, “Would You Build Your House On A River Of Mud?”  Since then, he has updated the extensive tome
with additional historical and geotechnical evidence of the North Spur issue.

Although the
Muskrat Falls Project was sanctioned in December, 2012, Nalcor, as of March 1,
2013, according to Martin, “Nalcor had not conducted the geotechnical field
work and collected the data necessary to fully assess the North Spur
instability problem and design a suitable, cost effective solution.”

Nalcor’s
Engineers, SNC Lavalin, have now decided they want to build something called a “Cut-Off
Wall” to deal with the instability problem. 
This is a “BIG NEW ITEM” for a Project, whose potential for cost overruns,
many warn, may do irreparable harm to this Province’s finances.  Remember, in December, Nalcor informed us that
engineering on the Project was well advanced and that all the big cost items
and major materials were defined and given to the Government with such
certainty that their ‘contingency’ allowance, for the Project, was reduced from
the prior estimate.    

The master propagandist
for Muskrat Falls, CEO Ed Martin, will be facing the public, Wednesday, June 5th, at
Nalcor’s AGM.  Nalcor downplayed the North
Spur problem when Cabot Martin brought it to light. Now, six months after Sanction,
and with SNC Lavalin forced to deal with the problem, it is time to ask the Nalcor
CEO if he will come clean on the ‘instability’ issue?  In so doing, will he also:

1.     
Inform
us what the “Cut-Off Wall” actually is.

2.     
Provide
us a cost-estimate of the “Cut-Off Wall”.

3.     
Advise
if the cost figure for this “remediation” represents the entire cost of fixing the
North Spur Instability Problem.

4.     
Inform
us if the cost of the “Cut-Off Wall” was included in the Project Estimate, at
the time of Project sanction.

5.     
Advise
if the Federal Government’s “Independent Engineer” has signed-off on the North
Spur Remediation Program, and

6.     
Make
public a ‘picture’ of the “Cut-Off Wall”; show us what it actually looks like.

One simple
question, in six easy parts.  Now, that
can’t be too difficult, for the master propagandist.  Can it?

REMEMBERING BILL MARSHALL

Bill left public life shortly after the signing of the Atlantic Accord and became a member of the Court of Appeal until his retirement in 2003. During his time on the court he was involved in a number of successful appeals which overturned wrongful convictions, for which he was recognized by Innocence Canada. Bill had a special place in his heart for the underdog.

Churchill Falls Explainer (Coles Notes version)

If CFLCo is required to maximize its profit, then CFLCo should sell its electricity to the highest bidder(s) on the most advantageous terms available.

END OF THE UPPER CHURCHILL POWER CONTRACT: IMPROVING OUR BARGAINING POWER

This is the most important set of negotiations we have engaged in since the Atlantic Accord and Hibernia. Despite being a small jurisdiction we proved to be smart and nimble enough to negotiate good deals on both. They have stood the test of time and have resulted in billions of dollars in royalties and created an industry which represents over a quarter of our economy. Will we prove to be smart and nimble enough to do the same with the Upper Churchill?