Plant wants permission to shut pollution control

Louisiana-Pacific's Swan Valley oriented strand board (OSB) plant has applied to the province to permanently shut its three regenerative thermal oxidizers -- RTOs control the amount of toxins released into the air -- to save money.

The move has outraged environmentalists who fought hard to get the devices put in a decade ago.

"To me it's a stupid argument to say good health is only predicated when the economy is in good shape," said Don Sullivan, executive director of the Boreal Forest Network.

L-P plant environmental manager Allan Hambley declined an interview, but said in a recent letter to Manitoba Conservation the fate of the area's largest employer rests in the hands of government. The brewing environmental and economic hot potato will land on Conservation Minister Stan Struthers' desk.

"It must be stressed that with annual operation and maintenance costs of over $3 million, the economic burden of operating RTOs places LP Swan Valley at a significant competitive disadvantage as compared to the rest of the OSB industry in Canada," Hambley said in the letter. "With the current market conditions forecasted into 2010 it is highly conceivable that the Swan Valley OSB mill would shut down indefinitely, directly impacting 175 staff and hourly personnel and various associated contractor log-handlers, should the requirement to operate RTOs remain."

In an application to the province to shut off the RTOs, L-P also stated the proposed shutdown will have negligible impact on the surrounding environment and community health.

L-P claims the shutdown will reduce the combustion of natural gas -- RTOs burn natural gas to control toxins -- and reduce greenhouse gas emissions by about 11,830 tonnes of carbon dioxide equivalents per year, which represents a 0.92 per cent reduction in greenhouse gas emissions for all stationary combustion sources in Manitoba's manufacturing sector.

L-P also said it installed a state-of-the-art system in 2004, at a cost of $26 million, to reduce the amount of toxins produced in making chipboard.

"As a result of this project, all wood residuals generated, previously the plant's primary waste stream, are now utilized as a renewable energy source for the plant's manufacturing processes," it said.

The company also said its RTOs are near the end of their lifespan. To replace them would cost US$10 million. "Given the current economic environment, there is no guarantee the plant would remain operational if capital replacement costs had to be incurred," the company said in a public document.

Environmentalists aren't impressed.

They say they want an independent analysis of L-P's claims.

"This has stirred up a lot of anxiety over possible job loss," Swan River resident Margaret Romak said. "It's just a heartache for so many people."

Romak said the way L-P has handled the application without first consulting area residents casts doubt on the company's claims in its application to shut off the RTOs. The company first approached the province late last year to temporarily shut off the devices. The request was approved.

"For all I know what they're doing is OK," she said. "The problem is there is no information."

Serge Scrafield, assistant deputy minister in Manitoba Conservation, said provincial officials are currently reviewing L-P's application and collecting emissions data from two locations near the plant.

Scarfield also said it's possible Struthers will ask the Clean Environment Commission to review the application, but that decision won't be made until after all material, including public comments, are filed. The deadline is March 13.

Dan Soprovich, a self-employed wildlife ecologist in Swan River, also said the province should get an independent evaluation of L-P's claims.

"They don't necessarily have a history of being right," Soprovich said. "There are a lot of red flags that are telling us to take a closer look."

Sullivan added government should look at L-P's circumstances to see if it qualifies for federal economic stimulus funding before making a decision to shut down the RTOs.

bruce.owen@freepress.mb.ca

Republished from the Winnipeg Free Press print edition March 10, 2009 A4