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To: Dianne Murray <dianne@sandelman.ottawa.on.ca>
From: Tom Holzinger <t.holzinger@netaxis.qc.ca>
Subject: update version (38 K)
Status: OR

Dianne,
If you do another re-mailing of our long document, please use this
version. It has the Innu fax and e-mail numbers, and also Guy 
Chevrette's coordinates.
Thanks.
Tom

                          *  *  *  *  *

                        LETTER FROM QUÉBEC

                                        Montréal, 10 July 97 

Dear Fellow Environmentalists,

As you know, here in Québec we have recently entered a period 
of crisis with Hydro-Québec and Québec's Ministry of Natural 
Resources. These agencies wish to leap headlong into the newly 
deregulated American market for electricity, including greatly 
expanding electricity production for export. This expansion is 
almost entirely predicated on damming and diverting more rivers, 
here in Québec and in Labrador.

This letter describes the most urgent threat, that of additional 
near-term diversions into existing hydroelectric facilities. For 
those of you in the rest of Canada and the United States, it is 
suggested that you act immediately in solidarity by faxing to our 
Environment Minister opposing the diversions of the Carheil and 
Aux Pékans rivers, as he is under pressure to recommend an 
immediate authorization (first half of July).

                        * * * * *

BACKGROUND TO OUR URGENT SITUATION IN QUÉBEC

This year has seen Hydro-Québec mount a full-scale offensive for 
more hydro generation. Under the leadership of André Caillé, 
appointed nine months ago, the state-owned utility company has 
made a 180-degree turn towards the American export market and has 
revived many of the hydro projects that had been put on ice with 
the emergence of regional electricity surpluses in the early 90s.

In 1997 alone there have been the following developments:

HQ and the Québec Government have cooperated on a new law (Bill 50) 
and new regulations under the Hydro-Québec Act that mirror the 
provisions of FERC's Order 888, thus allowing third-party access to 
HQ's transmission lines, and permitting a very limited degree of 
wholesale competition in Québec. (Since HQ controls virtually all 
retail distribution of electricity in Québec, only 3% of Québec's 
market was in fact opened to competition.) The explicit purpose of 
these regulations was to gain FERC approval for HQ's unregulated 
exports to the U.S.; in fact, they were adopted in total secrecy, 
without even the standard 60-day comment period before regulations 
take effect. 

Hydro-Québec's FERC application via its subsidiary H.Q. Energy 
Services (U.S.) Inc. has been partially approved; it is presently 
under scrutiny to see if it meets FERC's "market power" test of not 
being too dominating a player. In the meantime HQ not only continues 
to sell a high volume of contract and spot electricity under its old 
arrangements but also has signed five new contracts whose terms remain 
secret, i.e. it is not known when deliveries are to begin, for how 
long, for what amounts, at what price. The purchasers are Long Island 
Lighting Company, Montaup Electric Company, Boston Edison Company, 
United Illuminating Company, and Central Maine Power Company; the 
government decrees ratifying these contracts were all issued between 
December 1996 and April 1997.

In addition, HQ has also acquired a controlling interest in a natural 
gas holding company, Noverco, that owns the principal natural gas 
suppliers and retailers in Québec and parts of New England. Mr. Caillé 
rose to prominence as the CEO of Gaz Métropolitain, the largest 
Noverco operating subsidiary, before being appointed to HQ. He has 
justified this purchase by invoking the trend toward "convergence" of 
electricity and gas; the anticompetitive aspects of the acquisition 
in Québec have been largely ignored. 

The Québec government has set up a new Régie de l'énergie (Energy 
Board) to oversee all future public and private activities in the 
production, transmission, distribution, and marketing of electricity 
and natural gas. This board of seven appointed members was named at 
the beginning of June and will begin its public work in September. The 
only commissioner expected to promote environmental protection is 
François Tanguay, the ex-director of Greenpeace Québec, whereas most 
the others are expected to take a dollars-and-cents view. The chairman 
is reportedly a close personal friend of André Caillé, and served on 
the Board of Gaz Métropolitain when Mr. Caillé was CEO. One board 
member was previously employed by Hydro-Québec; another was for 
many years in charge of electricity rates at the Ministry of Natural 
Resources and more recently worked in the office of Premier Lucien 
Bouchard. The Régie has wide-ranging powers to regulate retail prices, 
exports, investments, and investment priorities, and it is also 
mandated to advise the government on the further deregulation and 
restructuring of Hydro-Québec. Its decisions are final and are not 
subject to judicial review.

HQ has announced a commercial orientation, including a renewed 
emphasis on both sales and profitability. Mr. Caillé has detailed 
a goal of earning a yield on investment of 11% and has promised to 
provide the government with a dividend of some $400 million in 1997. 
He has not asked for new rate hikes, but he continues to cut costs 
and to look for new sources of revenue. He has revised the mandate 
of HQ from being the secure fountainhead of Québec electricity to 
being a wide-ranging commercial (and risk-taking) enterprise on the 
large North American playing field. He has announced the goal of 
making HQ one of the five major energy companies in North America, 
on the scale of Enron and Duke/PanEnergy. Within the past few days 
he has announced production and marketing partnerships with Enron, 
so that hydroelectricity and natural gas may "converge". He has 
spoken of export revenues in the billions of dollars and of overcoming 
transmission constraints by purchasing equity interests in U.S. 
transmission-owning companies, in order to facilitate the building
 of new lines. To feed these new exports, he has spoken of massive 
new hydro construction in Québec and rumours abound of another Churchill 
Falls complex in Labrador/Newfoundland, though specific plans (apart 
from the river diversions discussed below) will not be known until 
September. He has also mentioned the desirability of constructing 
gas generation in the USA, with HQ's new partner Enron supplying 
part of the fuel. Finally, HQ is part of a consortium fighting for 
the rights to pipe Sable Island gas (Nova Scotia) through Québec to 
New England.

It is not all expansionist news. HQ does take one specific risk in 
its daily operations that startles all observers: it "turbines" more 
water during the course of the year than flows into its reservoirs, 
thus steadily drawing down its reserves. Because of four consecutive
 years of below-average rainfall and snowfall, its current electricity 
exports are in effect being borrowed against uncertain future inflows. 
Québec may well live to regret this gamble. The pattern of risk-bearing 
exports began in January 1994 and has continued until recently with 
minimal publiccomment. Le Devoir, an influential newspaper, recently 
published figures indicating that current reserves are well below 
the danger level. Last week another paper reported that the Manic-5 
generating station is now largely idle because of a lack of water. 

In public, Hydro-Québec has recently begun to refuse to give out 
information concerning its water reserves, on the grounds that this 
is "commercial information" that might be useful to its competitors. 
It is known, however, that in the first three months of 1997 it 
exported more than 3.25 TWh and did not seriously cut back sales 
until April of this year. It is not known whether HQ has informed 
either its export customers or its investment bankers of its current 
situation. (Under a strict interpretation of NAFTA rules, if HQ were 
to curtail supplies due to drought, it would probably be obliged to 
cut both its Québec and American deliveries by the same proportion, 
a NAFTA provision which has never been tested and a potential outcome 
of which most Québecers are quite unaware.)

HQ has become very aggressive about acquiring additional water for 
its existing reservoirs and for the Sainte-Marguerite-3 dam now 
under construction. Since the beginning of the year it has announced 
plans to divert no fewer than eight rivers into four separate reservoirs. 


                        THE BERSIMIS REGION

The first proposals are for diversions of the Portneuf, Manouane, 
Sault-aux-Cochons, and Boucher rivers into existing dams of the 
Bersimis and Aux Outardes complexes, all in the same region north 
of Lac St-Jean. Hydro-Québec submitted detailed plans to the government 
early in the year without making them public, and neither HQ's CEO 
Caillé nor the Minister of Natural Resources Guy Chevrette acknowledged 
them to the parliamentary oversight committee that met in April. At 
that time these officials mentioned only the "optimization" of an 
existing project. It has since emerged (via Québec's Freedom of 
Information Act) that all four proposals state explicitly that the 
additional energy is "to take advantage of the growing opportunities 
of the American export market". This marks the first time that HQ has 
justified environmental impacts for the sole purpose of exports. 

Furthermore, HQ wants to dispense with environmental hearings. 
(A river diversion, though not as irreversible as a dam, is more 
devastating to the downstream region, since the riverbed below a 
diversion may be virtually dry.) Instead, it has proposed to overcome 
local opposition by offering a 2% annual revenue share to the affected 
county council. (Note below that revenue sharing instead of one-time 
compensation will probably be offered to the James Bay Cree as well, 
for the proposed further environmental damage to their territory.) 
There are also Innu communities in the Bersimis/Outardes region, and 
HQ is undertaking negotiations with them, in the hope of circumventing 
public hearings. Under the law, avoiding hearings should not be possible, 
since Québec's Environmental Quality Act gives any citizen the right 
to request them, but the Environment Ministry has made it a practice 
to dismiss as "frivolous" any request coming from individuals who do 
not live in the region directly affected by the project. (This practice 
was denounced by the Doyon Commission of inquiry, whose report in 1996 
was a major indictment of the government and HQ of complicity with 
private promoters). 

The diversions would deal a direct blow to a number of downstream 
commercial interests, among them several independent power producers. 
The owners of private dams on two of these four rivers include Alcan,
 the major aluminum corporation.Hydro-Québec would compensate these 
owners for their lost electricity generation. Although HQ would gain 
no capacity (its peak power would remain unchanged), it might gain 
as much as 1.2 terawatt-hours annually in total energy. As the capital 
cost of the diversions is estimated at $100 million, amortized over 20 
years, the immediate dollar cost of this additional energy is seemingly 
very low, low enough to reward HQ for overcoming the environmental and 
political obstacles described above. Because the timetable submitted to 
the government includes no months allocated to public review, HQ hopes 
to complete the Portneuf and Sault-aux-Cochons diversions by November 
next year (!), with Boucher following in 2001 and Manouane in 2002. 
If any of these diversions were to be carried out without a public 
review, it should become a cause celebré throughout North America.

Although the authorization process for these diversions has not 
been announced, there has already been public bickering between the 
Minister of Natural Resources Guy Chevrette and the Minister of the 
Environment David Cliche. As far as possible, Mr. Chevrette and HQ 
want these and similar hydro projects to be examined only by the new 
Régie de l'énergie (Energy Board) and not by the B.A.P.E. (Québec's 
environmental review office). Mr. Cliche recently tried to quash a 
private sector proposal to harness a well-known waterfalls on the 
Chaudière River but was beaten in Cabinet by Mr. Chevrette and a
 group of very determined business interests. Mr. Cliche has also 
supported the Heritage Rivers project to identify and classify those 
rivers to be saved from commercial development. While he may be a 
tactical ally, his instincts are political, and the experience of 
the environmental movement is that he cannot be relied upon to mount 
a principled defence of Québec's wild places.


                   THE MOISIE RIVER TRIBUTARIES

Within days of the Bersimis revelations, Hydro-Québec was back 
in the news when it approached the Uashat/Mani-Utenam Band Council 
(Innu) about diverting two of the headwaters of the famed Moisie 
River, the Carheil and Aux Pékans rivers, into the neighbouring 
Ste-Marguerite river basin. This latter river, much larger than the 
others, has several existing dams and a third under construction, 
SM-3, which would receive the proposed diversions. The additional 
water would add an estimated 1.2 TWh/year to HQ's energy supplies, 
i.e. the same amount as the four Bersimis diversions. In the case 
of SM-3, however, the generating plant has been designed so that an 
additional bank of turbines can easily be added. If HQ goes ahead 
with more turbines, it would gain an extra 440 MW of peak power for 
only a moderately increased investment. The low unit cost of the 
additional energy and power would bring the overall cost of SM-3 down 
to a potentially profitable level; without the diversions SM-3 
electricity would cost 3.5¢/kWh, more than the current (and anticipated) 
export price. 

All of these works and proposed works have been the subject of 
intense and prolonged debate. In the late 80s, when HQ first drew 
up its plans for the upper Ste-Marguerite, it hoped to divert in part 
the Moisie River, a critical spawning area for Atlantic salmon. Public 
opinion and international opinion forced HQ to resubmit its project, 
this time asking to divert the two tributaries but leaving the Moisie 
free-flowing albeit much reduced. In 1993 a B.A.P.E. commission rejected 
this plan and expressed serious reservations about the justification 
for the Ste-Marguerite dam itself. In one of its final pre-election acts, 
the soon-to-be-defeated Liberalgovernment went ahead and authorized the 
building of the dam without the diversions. The same day HQ announced 
drastically reduced load forecasts and cutbacks to its plans for future 
projects. While the authorization excluded the diversions "for now", 
it allowed for them to be authorized at a later date. 

Meanwhile, a joint federal-provincial committee was formed to examine 
scientifically the diversions' impacts on the Moisie's salmon. (Other 
impacts on the river system were ignored.) A three-man committee 
commissioned an expert report, which through complex modelling based 
in part on the doubtful experience of the Snake River in the USA, 
determined that the risk was minimal. This model was severely 
criticized by biologists from the Atlantic Salmon Federation, who 
argued that the conclusions depended on unjustified assumptions and 
that there were insufficient data and thus an unacceptable level of 
risk. On April 14 of this year, the committee dismissed that opinion 
and advised the government that there was no evident risk. The MEF 
(Environment Ministry) received their report and initiated the 
standard 60-day waiting period during which comments were to be made 
by interested parties, but the interested parties were not informed, 
leading to suspicions that the government wanted to slip this project 
past its critics. 

This suspicion has been further fueled by recent changes in HQ's 
and the government's timetables. At the beginning of the year they 
reassured critics that any construction would be years away and 
that there would be fresh environmental hearings before diversions 
were authorized. Last week HQ announced that it was speeding up 
construction of the SM-3 dam and power plant so that it could 
impound water and come on line in May 2001 instead of November 2001.
On June 20 a spokesman told Le Devoir that HQ wanted the government 
to authorize the Carheil/Pékans diversions two weeks after the 60-day 
comment period, i.e. at any time after June 29. In response to a 
Freedom of Information request, Hydro-Québec confirmed on June 26 
that it has written to both governments that it is "not necessary to 
ask for 'approval' of the diversions of the Carheil and Aux Pékans 
rivers, because the request for approval was already made in July 1991 
as part of the whole project of hydroelectric development known as 
Sainte-Marguerite-3." The federal government of Canada must approve 
because it shares jurisdiction over fish; the National Energy Board 
of Canada must approve new production facilities designed to generate 
for export, but this examination is likely to be perfunctory if at all. 
Finally, with regard to compensation for the affected Native people, 
HQ has said that once the government gave its go-ahead, negotiations 
with the Mani-Utenam band council could be completed within 45 days.

Thus all external indications are that HQ now considers the SM-3 
project to include integrally the diversions of the Carheil and 
Aux Pékans rivers, and that the full project is on their fastest 
possible track. (Quite possibly driven by drought: a race for 
additional water reserves before a partial system shutdown). The 
construction of the SM-3 project -- including a dam wall and a 
generating plant that can handle the extra Moisie water -- is 
apparently proceeding well on their accelerated schedule.

Therefore it is believed environment minister Cliche is under 
intense pressure to authorize the two diversions without having 
them be examined by his ministry for impacts or waiting for the 
new Régie to scrutinize their rationale under integrated resource 
planning. If HQ and the Québec government override due process on 
a renowned river like the Moisie and its tributaries, they may 
choose to try to do so on the four proposed Bersimis diversions as well.

On Thursday July 3 there was a strong unsettling indication that 
the present government will try to give Hydro-Québec what it wants. 
After a fierce political battle both inside and outside its ranks, 
the cabinet approved the most scandalous dam project to date -- the 
damming and drying up of the above-mentioned Chaudière Falls just 
south of Québec City, a favourite tourist site. The private developer 
will bear no risk because it has a contract guaranteeing a high fixed 
price for 20 years; Hydro-Québec is obliged to purchase. The minister 
most opposed to the project, David Cliche of the MEF, was dragged 
along after marathon meetings of the inner cabinet. He would now 
appear to be the last line of administrative defence against the 
diversions of the Moisie tributaries, unless the federal government 
unexpectedly acknowledges its responsibilities.

The most critical period for influencing environment minister 
David Cliche is probably now, the first weeks of July 1997. (See 
writing and faxing information below). He should be supported in 
his recent statements that all the proposed diversions should be 
publicly examined by his ministry's B.A.P.E. process. Messages can 
be worded so as to strengthen his resolve not to be pushed into 
overriding the principle of public review. They can also support 
the widely held view, and one which Mr. Cliche has publicly supported, 
that the Moisie and its watershed should be declared a Québec Heritage 
River and thus permanently protected from commercial development. 


                THE GREAT WHALE AND RUPERT RIVERS

Québecers woke up to a shocking headline on Saturday June 7: 
"Hydro Reviving Great Whale". Leaked by Cree leaders, the story 
revealed -- and was later confirmed by Hydro-Québec and Minister 
Chevrette's office -- that HQ wishes to divert the Great Whale 
River southwards and the Rupert River northwards so that both would 
flow into the La Grande River complex of dams and power stations 
which lies between them on the east side of James Bay. 

Under current treaty and law, jurisdiction over the affected land 
and water is shared between the Québec government, the Canadian 
government, and the James Bay Cree of Québec. A previous attempt 
by Hydro-Québec to dam the Great Whale foundered in December 1995
when solidarity with the Crees, strong domestic and international 
opposition, a cancelled New York export contract, and a projected 
high cost per kilowatt-hour caused the Parti Québécois government 
to put the project "on ice". 

Now, 18 months later with low water and only its export markets 
likely to grow, HQ is investing in additional kilowatt-hours of 
energy, not additional peak power capacity. River diversions, 
where they are possible, meet this goal at low dollar cost but at 
great environmental cost. First signs are that HQ will pursue this 
new production strategy tenaciously, including at James Bay. It has 
initiated talks with Cree leaders before going public with any 
detailed engineering or cost studies, and both Minister Chevrette 
and Premier Bouchard have become personally involved in these talks. 
One month ago Mr. Bouchard flew north to the Cree community of 
Waswanipi to meet with a group of Cree leaders, a significant 
gesture by the government. Furthermore, he apparently offered the 
broad outline of a revenue-sharing plan whereby Cree communities 
would receive a guaranteed share of proceeds (and control) from 
resource exploitation on their land, an improvement over the terms 
of the James Bay and Northern Québec Agreement in force now.

Because of the possibility of such a revenue plan, the Cree may 
not be unanimous in immediately opposing the river diversions. 
Some Cree leaders have already predicted, however, that within 
a few months their resistance to hydro development will again be 
high, especially if their international solidarity movement springs 
back to life. (Note: at the same time the Cree may well accept 
forest and mineral exploitation together with a share in its 
revenues and control). 

"What are the next moves on Great Whale?" For Hydro-Québec they 
are to talk privately with the Cree, hoping to deflect their 
resistance and forestall any international outcry. For the government, 
to try to have the broad outline of a tentative agreement before 
the next elections and referendum, but only if no group is too 
aggrieved at the result. For the Cree, to negotiate in broad scope 
and at length while achieving consensus among themselves as to what 
they want: environmental integrity, resource control, self-government, 
revenue, or some combination of all of these.


                THE ENVIRONMENTAL ACTIVIST RESPONSE

Paradoxically, it is only the environmental movement -- who have not 
been in any way consulted or informed -- who stand to gain from making 
hard-edged criticisms immediately. Québec's environmental groups have 
called for a suspension of the deregulation policy and of any planning 
for new hydroelectric works until the policy issues and their 
implications have been thoroughly aired. They have particularly 
attacked the Carheil and Aux Pékans diversions on procedural grounds 
(lack of adequate public review, leapfrogging over Régie jurisdiction, 
making meaningless a Heritage River status for the Moisie before it 
could even be considered) and on environmental grounds (huge unknown 
risk to unique salmon breeding grounds). Traditional Innu band 
members who dissent from their band council's cooperation with HQ, 
together with their supporters in Québec and the United States, have 
been vociferous in opposition to SM-3 and now to the diversions 
proposed to be incorporated.

The Québec environmental movement is working in an economic context 
of high unemployment and a political context of cultural nationalism. 
It argues that it is crazy for Québec to destroy its free-flowing 
rivers to generate cheap electricity for non-Québecers, that the 
monetary investment should instead be made in energy efficiency 
and wind farms.

Fortunately the Québec movement is gaining allies. The Parti
 Québécois government is alienating its own grassroots through 
numerous clumsy belt-tightening and budget-cutting policies, 
and some of these are perceived as betraying Québec's national 
interest. The swing in energy policy is already seen as such by 
a number of consumer, union, and professional groups, and they 
have joined environmentalists in making public denunciations. 
Several weeks ago over 30 of these groups unveiled a "Coalition 
contre la dénationalisation de l'électricité" which intends to 
wage a strong campaign at both the popular and political levels 
until the worst features of the new policy have been reversed. 
Given the present dynamic of Québec society, it may achieve much 
of what it wants after a new government is sworn in, perhaps in 
early 1999. In the meantime it must obstruct and delay any proposals 
for fast-track river diversions. 

The American environmental movement can help in the medium term 
by working to block all electricity imports from Hydro-Québec until 
a decisive political victory has been won in Québec, i.e. one in 
which it is declared that to additional wild river will ever be 
dammed or diverted. Until that time it should be evident that these 
imports are tainted. There is nothing "clean" or "renewable" or 
"sustainable" about Hydro-Québec's current policy of expansion. 
Each increased level of imports is directly paid for, in a clear 
one-to-one correspondence, by another North American watershed 
lost to wildlife and recreation.

In the very short term -- the summer of 1997 -- both the Québec 
and American movements can apply the pressure of media coverage 
and a whirlwind fax and phone campaign to insist that the 
government of Québec not authorize the diversion of the Carheil 
and Aux Pékans rivers.


                *  *  *  *  *

Letters and faxes should be sent to:


M. le ministre David Cliche 
Ministère de l'environnement
	et de la faune 
difice Marie Guyart, 30e étage 
É675 boulevard René Lévesque Est 
Québec, Québec 
Canada G1R 5V7

fax :		418-643-4143
tél :		418-643-8259 
e-mail :	david.cliche@mef.gouv.qc.ca

___________________________________________


M. le premier ministre Lucien Bouchard 
l'Office du premier ministre
Gouvernement du Québec 
difice J, 3e étage 
É885 Grande Allée 
Québec, Québec 
Canada G1A 1A2

fax :		418-643-3924
tél :		418-643-5321

___________________________________________


M. le ministre Guy Chevrette
Ministre des ressources naturelles 
Ministre des affaires Autochtones
5700, 4e avenue Ouest, bureau A308
Québec, Québec 
Canada  G1H 6R1

fax :		418-643-4318
tél :		418-643-7295
e-mail:   guy.chevrette@mrn.gouv.qc.ca

___________________________________________


Please send copies of your faxes and e-mails to the Coalition:

Coalition contre la dénationalisation
P.O. Box 1000, Station M
Montréal, Québec
Canada  H1V 3R2

fax :		514-254-5873
tél :		514-252-3016    
e-mail :	energie@netaxis.qc.ca

__________________________________________


If you are specifically supporting the Innu people, they ask 
that you copy your e-mails to innuqc@quebectel.com and copy 
your faxes to 418-646-4918.


MODEL LETTER IN FRENCH


Montréal, le 27 juin 1997 

M. le ministre David Cliche 
Ministère de l'environnement et de la faune 
difice Marie-Guyart, 30e étage 
É675, boul. René-Lévesque Est 
Québec, Québec G1R 5V7 
télécopieur : 418-643-4143
tél : 418-643-8259 
courrier électronique : david.cliche@mef.gouv.qc.ca


Cher M. le ministre,

Nous avons récemment appris par les médias qu'Hydro-Québec 
envisage de nouveau le détournement des rivières Carheil et 
Aux Pékans vers la centrale Sainte-Marguerite-3. Nous nous 
opposons à un tel détournement.

Dans son communiqué du 5 juin 1997, Hydro-Québec à indiqué 
qu'elle entend soumettre pour évaluation environnementale le 
détournement des quatre rivières suivants : Portneuf, 
Sault-aux-Cochons, Manouane et Boucher. L'absence de mention 
de ces deux affluents de la Moisie dans le communiqué du 5 juin, 
ainsi que le fait qu'Hydro-Québec n'a pas soumis un avis de 
projet sur ces détournements, nous amènent à croire que la 
société d'État entend soumettre sa demande quant à ces deux 
rivières directement au Conseil des ministres, dans le cadre 
de l'autorisation du projet Sainte-Marguerite-3 (décret 298-94).

Or, nous sommes de l'avis que le détournement proposé de la 
Carheil et la Pékans posent des questions extrèmement important, 
sur lesquelles le public aura un fort intérêt à se faire entendre. 
Ce questionnement touche les aspects environnementaux et également 
la justification du projet. Dans les deux cas, on ne peut pas 
prétendre que les audiences du BAPE en 1993 les ont reglé.

Nous aimerions vous rappeler les conclusions du « Rapport 
d'enquête et d'audience publique » de juin 1993 concernant 
« l'Aménagement hydroélectrique Sainte-Marguerite-3 » qui 
recommandaient fortement que le projet SM-3 ne comprenne pas 
le détournement des tributaires de la rivière Moisie vers la 
rivière Ste-Marguerite. Dans son rapport, la Commission conclut, 
d'une part, que ce projet devrait être envisagé seulement si le 
besoin de l'énergie à produire était démontré par une évaluation 
indépendante. D'autre part, un aménagement hydroélectrique de la 
rivière Ste-Marguerite, sans le détournement des tributaires de 
la rivière Moisie, pourrait être acceptable socialement et 
s'avérerait à moindre risque environnemental.

De plus, d'après ce rapport, le projet n'aurait été justifié 
que si les besoins énergétiques du Québec l'avaient exigé. Par 
conséquent, SM-3 n'aurait jamais dû être entrepris, car au moment 
de son autorisation, en pleine campaigne électorale, les prévisions 
de la demande future d'Hydro-Québec étaient en chute libre. Même 
aujourd'hui, il est loin d'évident que cette centrale est justifiée, 
et encore moins des nouveaux détournements. Selon le dernier document 
de planification d'Hydro-Québec, « Tant en énergie qu'en puissance, 
aucun nouveau moyen ne serait requis avant 2004-2005. » (L'équilibre 
énergétique : Rapport particulier au 31 décembre 1996, p. 25).

Vous avez, dans le passé, indiqué votre engagement à ce que les 
questions entourant les développements hydroélectriques se fassent 
sans un contexte de transparence et de respect mutuel. Vous avez 
également indiqué votre ouverture à la possibilité que la Moisie 
soit reconnu comme rivière patrimoniale, dans le cadre d'un 
programme de classification de rivières, tel que prévu par le 
rapport du débat public de l'énergie et de la politique gouvernementale 
qui en découlait -- ce qui deviendrait impossible si le gouvernement 
autorisait ces détournements.

Nous vous demandons donc de ne pas recommander au Conseil de 
ministres d'autoriser les détournements des rivières Carheil et 
Aux Pékans vers la rivière Ste-Marguerite, avant que des audiences 
publiques exhaustives aient eu lieu devant le B.A.P.E. pour examiner 
ses impacts environnementaux et sa justification énergétique. 

Veuillez agréer, monsieur le Ministre, 
l'expression de nos sentiments distingués.

Tom Holzinger



MODEL LETTER IN ENGLISH


June 27, 1997
Minister David Cliche 
Ministry of the Environnement and Wildlife 
Marie-Guyart Building, 30th floor 
Québec, Québec 
Canada  G1R 5V7
fax: 418-643-4143, tel: 418-643-8259 
e-mail: david.cliche@mef.gouv.qc.ca


Dear Minister Cliche,

We are writing to express our alarm and indignation over 
Hydro-Québec's intentions to divert the Aux Pékans and Carheil 
rivers, tributaries of the world-famous Moisie River, into the 
Sainte-Marguerite-3 dam now under construction. A decision by the 
government of Québec to approve this diversion project would go 
against world opinion and would subvert the earlier environmental 
assessment process -- the first in HQ's history -- in which all 
sectors of the public condemned the proposal.

In 1995 Hydro-Québec agreed to modify the SM-3 project in response 
to the public's opposition to the diversion scheme. At the time, 
the Québec government claimed that this modification alone would 
bring the SM-3 project into compliance with public opinion and 
particularly, with the conclusions of the environmental review 
board (BAPE). While the BAPE had recommended that the Aux Pékans 
and Carheil rivers not be diverted, HQ's compliance with this 
recommendation was the only concession to the Board's may criticisms 
of the SM-3 proposal. Other concerns, and they are by no means 
minor, have been ignored.

First, the environmental review board had found in 1993 that HQ's 
energy demand forecasting was seriously flawed. HQ has always failed 
to prove that there is any need for another giant hydroelectricity 
facility. Furthermore, the Board concluded that HQ's Environmental 
Impact Statement was incomplete, and that before the project was 
authorized, HQ should conduct a number of additional studies. 
Among them: studies on the cumulative effects of all existing 
dam projects in the North Shore region as a whole; studies of 
the effects of transmission lines, and further studies on the 
impacts on the natural environment, on human health and on the 
social fabric. The review board also noted HQ's Moisie salmon 
studies were grossly inadequate and recommended that the Moisie 
diversions not be approved.

Hydro-Québec subsequently submitted a two-year study of salmon 
impacts to a joint commission, which recently concluded that the 
impacts would be insignificant. However, numerous fishery experts 
disagree. 

First, how can changing the habitat that began with the last ice 
age not have significant impacts on creatures as sensitive to 
changes in their particular waterway as the majestic Atlantic 
salmon? HQ still has not conducted a proper study. The life cycle 
of the salmon is seven years, not two. Any study on the life cycle 
of the Moisie salmon short of a seven-year study is inadequate.

Further, HQ used the Snake River in Idaho as a model for 
"regulated flow" management. But in fact the historic salmon 
runs on the Snake River are now a thing of the past. It is a 
model of failure, not success. The Snake River sockeye salmon 
has recently been declared an endangered species by the US Fish 
and Wildlife Service, and the primary cause is stated to be -- 
hydroelectric dams.

Finally, the aboriginal Innu people, who have never ceded their 
land to any government, are intricately connected to the Moisie 
and its salmon. It is the Innu's "Great River". To risk the death 
of the salmon run on this river is to gamble away the survival of 
the Innu people and their age-old culture.

The Ste-Marguerite-3 project was the first Hydro-Québec to go 
through public hearings. Now HQ has attempted to remove the debate 
from the public sphere and to confine it to a team of 
government-appointed "experts" working behind closed doors, and to 
secret negotiations with the Mani-Utenam/Uashat Band Council. The 
352 BAPE report, in which the testimony of Innu, recreationists, 
biologists, environmentalists and other sectors of the public, as 
well as the government-appointed review panel, thoroughly critiqued 
HQ's claims that the Moisie salmon would remain undisturbed by the 
diversions, has apparently been tossed aside. 

Mr. Minister, we learn from Hydro-Québec's internal documents that 
it has now submitted its Moisie water diversion project directly 
to your ministry and/or the Cabinet for authorization, intending 
to preclude any further public comment or debate.

Mr. Minister, the world's environmental community finds this to be
unacceptable. We urge you to suspend construction of the whole 
Ste-Marguerite-3 project until all the studies specified by the 
environmental review board have been carried out and until the 
modified proposal has been subjected to a public review.

We also urge you to deny, once and for all, authorization of any 
diversions of the Moisie or its tributaries, and to declare the 
Moisie River a world heritage site. To tamper with this great 
salmon river -- the jewel of Québec -- for a few megawatt-hours 
of electricity is worse than folly. Keep it wild. Let it be.

I look forward to your early reply. 

Yours sincerely,

John Clark
Charlotte, Vermont
U.S.A.


                        *  *  *  *  *

To obtain further information, please contact the person who 
has forwarded this bulletin to you, or contact me below. Thank you.


Tom Holzinger	      tel:  514-271-0564,   fax:  514-271-0564 
5160 Jeanne-Mance     e-mail:	     t.holzinger@netaxis.qc.ca 
Montréal, Québec      coalition:     energie@netaxis.qc.ca 
Canada H2V 4K1        http://www.unites.uqam.ca/cese/energie/index.htm




