Rutland Herald

OMYA faces opposition in Canada

November 20, 2000
By BRUCE EDWARDS Herald Staff

OMYA is involved in a battle with Canadian consumer and environmental groups over the withdrawal of millions of gallons of water a year from the Tay River in Ontario.

The Ontario Ministry of the Environment recently granted OMYA a permit to withdraw up to 825 gallons of water a minute from the Tay River to produce slurry at its Steep Rock calcium carbonate plant.

However, the permit was placed on hold two weeks ago when the Ontario Environmental Appeals Board granted the Council of Canadians, a consumer watchdog group, and seven other groups and individuals permission to appeal the permit, according to Jamie Dunn, water campaigner for the Council of Canadians.

Dunn said the Ontario Ministry of the Environment acted hastily in issuing the permit. He charged that the ministry issued the permit without having adequate information to determine the possible environmental effects of withdrawing such a large amount of water from the river, which is the town of Perth's primary source of drinking water.

"This is a tiny river that at times during the summer can go dry in spots," Dunn said during a telephone interview last week. "It's really not something you want to jump into without having any idea what the environmental impact will be."

He said that 283 groups and individuals filed comments on the proposed water withdrawal prior to the permit being issued. The Sierra Club of Canada also opposed the permit, but is not a party to the appeal.

Economic impact
Located on the Tay River about one hour southwest of Ottawa, Perth is one of eight municipalities that make up Lanark County. The local economy is a mix of high technology, wood products, agriculture, mining and tourism, said Dawn Durrant, director of community development for Lanark County.

From Durrant's perspective, OMYA is a significant player in the local economy with a sound environmental record.

"It provides local jobs. It puts $20 million (Canadian) a year into our local economy," said Durrant. "It's a half-billion dollar investment in Ontario, in Lanark County specifically."

Asked about the legitimacy of the environmental concerns raised by opponents, Durrant said all Canadians have a long tradition of being concerned about the environment.

"What I want to do is sift the fact from the fiction and I hope they do that. The Tay River is just as important as any other watershed in Canada," she said.

Until now, according to Durrant, OMYA has relied solely on ground water for its production. At the same time, she said, there are other users who withdraw water from the Tay River.

Durrant also said that OMYA had "jumped through all of the required hoops" prior to the permit's appeal.

"We find them extremely valuable corporate citizens, who react very quickly to any regulatory requests," she said. "This appeal just means there's phase two of due diligence being done."

Appeal
Dunn, the Council of Canadians spokesman, pointed out that appealing a permit under Canadian law is not an easy task. He said parties have to meet a "very high threshold" to be granted the right to appeal. He said opponents were able to show that, given the lack of environmental data, it was "completely unreasonable to issue the permit."

In addition, he said, the Council of Canadians argued that the ministry failed to consider the impact of increased economic growth and the demand for water induced by NAFTA, the North American Free Trade Agreement.

He said the groups appealing the permit have other concerns, including increased truck traffic, noise and impacts on the local ecosystem.

In a statement issued last month, Sierra Club Executive Director Elizabeth May said, "Our research indicates Ontario is fast becoming the water export capital of North America, despite all the claims about protecting the water resource of the province otherwise."

OMYA's planned water withdrawal coincides with a major expansion at its Canadian plant. OMYA Executive Vice President James Reddy said the company is pumping several hundred million dollars into the plant to meet demand, primarily from paper manufacturers. The company projects that the expansion will double the plant's current work force of 140 over the next 10 years.

Reddy took issue with opponents' claims that the withdrawal would have an adverse impact on the river and the environment. He said the company submitted studies to the Ontario Ministry of the Environment and agreed to take certain measures to mitigate any potential damage.

"The government had already decided we had satisfied all their requirements and there was no environmental impact," Reddy said.

OMYA officials have said the withdrawal would be phased in over several years with the plant's long-term permit allowing a maximum water withdrawal of 3,125 liters (825 gallons) per minute, based on the river's flow of between 450,000 and 1.5 million liters (119,000 and 396,000 gallons) per minute.

But Dunn argued that an accurate assessment of the river flow cannot be done because the current data is 75 years old.

He also maintains said that if OMYA prevails during the appeal process, it could have serious long-term economic repercussions for the local economy. He said without the expansion, OMYA estimated it had a 50-year supply of marble to run the plant. But if the expansion goes forward, OMYA will use up its marble reserves in 20 years.

However, Reddy said that Dunn's assertion is untrue. Assuming the water withdrawal permit is upheld, Reddy said OMYA will still have in excess of 50 years of marble ore in reserve.

"We intend to be in Canada, and have reserves to be in Canada for many, many, many years at that location," he said.

Water and NAFTA
The Canadian government has taken a keen interest in bulk water removal. In 1999, the federal government adopted the Canada-Wide Accord on Water, a policy to discourage bulk water removal because of the potential for environmental damage.

But Dunn said the accord is nothing more than a gentlemen's agreement that lacks any provision to force the provinces to comply. And he said that under NAFTA, environmental concerns are not a legitimate reason for barring water exports.

Dunn said he has reason to believe that up to 75 percent of OMYA's production will be shipped out of the country. Reddy, on the other hand, is adamant that most of the plant's production will continue to be shipped to Canadian customers.

Victor Castro, a surface water scientist with the Environment Ministry, makes the case that the permit did not violate the government's policy on water taking. Castro said the policy applies only to raw water not the end product, which in OMYA's case is slurry.

"It's an insignificant percentage of the total flow," he said.

Castro also said the ministry imposed restrictions on the withdrawal. If the river flow drops below 1 cubic meter per second, OMYA must stop withdrawing water, he said, adding that further studies are required before OMYA is granted its maximum withdrawal in 2003.

A hearing on the appeal could take place as early as January.

OMYA's expansion plans have run into problems elsewhere. In Vermont, a number of residents in the Danby, Tinmouth and Wallingford areas have raised concerns about the company's plan to open a new quarry in Danby. OMYA also has been stymied in its efforts to increase the number of marble ore hauling trucks from its Middlebury quarry to its Florence calcium carbonate plant.

The restriction on truck traffic was upheld earlier this year by the Vermont Supreme Court. However, a companion lawsuit filed by the company is now working its way through the federal court system.

In France, residents of Vingrau lost their battle to stop the Swiss-owned company from opening a quarry that overlooks the village. A decision on the village's final appeal is expected next month. But Deputy Mayor Renaud Chastagnol said recently that there is little chance that even a decision in the village's favor would require the quarry to close down.