Lawmakers grill FDIC chief after sexual harassment report


November 14, 2023 

(Reuters) -The head of the U.S. Federal Deposit Insurance Corporation faced outraged criticism from lawmakers on Tuesday following a media report that cited pervasive, longstanding allegations of sexual harassment at his agency.

FDIC Chairman Martin Gruenberg, who appeared at a Capitol Hill oversight hearing with other top financial regulators, told the Senate Banking Committee he was personally distraught after the Wall Street Journal's report on Monday and committed to providing a safe working environment for staff.

The subject threatened to overshadow testimony on proposed changes to bank capital regulations that have drawn fierce opposition from industry.

The FDIC's performance has come under harsh scrutiny following a costly series of large bank failures earlier this year, two of which occurred during the agency's supervision.

In a related development, Republican lawmakers on the House of Representatives Financial Services Committee, before which Gruenberg is due to testify on Wednesday, called for an urgent briefing on the matter from an FDIC watchdog agency.

Gruenberg said Tuesday he found the matter was "deeply disturbing" and said the FDIC would employ all its resources to review internal practices "and how we can most effectively address it."

Republican Senators John Kennedy and Cynthia Lummis, Republican both noted Gruenberg's nearly 20-year tenure on the FDIC board, chastising him for what they said was his failure to act on a long-standing problem spotlighted by the FDIC's inspector general.

Kennedy asked Gruenberg if he had personally ever engaged in sexual harassment, which the chairman denied. Kennedy and Lummis cited examples of "disgusting behavior," such as lewd remarks, wild partying and alcohol consumption, an unsolicited nude photograph and behavior that created barriers to professional advancement, prompting women to leave the agency.

"You and your colleagues ought to hide your heads in a bag," said Kennedy. "This is no country for creepy old men."

Gruenberg noted that he was not chairman at the time of the inspector general's report in 2020 and said the FDIC had addressed all of that report's recommendations. But he conceded this had likely not changed workplace culture.

"You've been there for 18 years at an agency that now has been exposed as having a hostile work environment towards women," said Lummis. "This is so far beyond the pale that I'm just gonna say you sure as heck better do something about it."

Gruenberg on Monday told FDIC staff that the agency would not tolerate sexual harassment and announced it had hired an outside law firm to review its internal practices.

The FDIC Office of Inspector General did not immediately respond to a request for comment on Tuesday, but told Reuters on Monday that since the 2020 report, the FDIC had addressed all of its prior recommendations.

(Reporting by Douglas Gillison and Pete Schroeder; Editing by Anna Driver, Paul Simao and Jonathan Oatis)

FREE TRADE, EH

China receives US equipment to make advanced chips despite new rules-report

ALEXANDRA ALPER
November 14, 2023 



By Alexandra Alper

WASHINGTON (Reuters) - Chinese companies are buying up U.S. chipmaking equipment to make advanced semiconductors, despite a raft of new export curbs aimed at thwarting advances in the country's semiconductor industry, a congressional report said on Tuesday.

The 741 page annual report, released by the House of Representative's bipartisan select committee on China, takes aim at the Biden administration's Oct. 2022 export curbs, which seek to bar Chinese chipmakers from getting U.S. chipmaking tools if they would be used to manufacture advanced chips at the 14 nanometer node or below.

With the Commerce Department using the 14 nanometer restriction limit, "importers are often able to purchase the equipment if they claim it is being used on an older production line, and with limited capacity for end-use inspections, it is difficult to verify the equipment is not being used to produce more advanced chips," the report stated.

The finding comes as the United States scrambles to figure out how Chinese telecoms giant Huawei was able to produce an advanced 7 nanometer chip to power its Mate 60 Pro smartphone at China's top chipmaker SMIC, despite the export curbs announced last year.

Huawei and SMIC were also added to a trade restriction list in 2019 and 2020, which in theory bars U.S. suppliers from shipping certain technology to the companies.

China watchers had theorized that SMIC could have made the chip with equipment obtained prior to the October 2022 rules, but it had other options for obtaining the equipment from oversees, the report shows.

The United States managed to plug a key loophole in its efforts to stymie China's access to advanced chipmaking tools by convincing allies Japan and the Netherlands, with similarly robust chipmaking equipment industries, to announce their own restrictions on exports of the coveted technology.

But China stockpiled equipment by taking advantage of the lagtime between the United States' October 2022 rules, and Japan and the Netherlands' similar moves in July and September of 2023 respectively, the report details.

According to the document, between January and August 2023, China imported $3.2 billion (RMB 23.5 billion) worth of semiconductor manufacturing machines from the Netherlands, a 96.1% increase over the $1.7 billion (RMB 12 billion) recorded over the same period in 2022. China's imports of semiconductor equipment from all countries totaled $13.8 billion (RMB 100 billion) over the first eight months of 2023, it added.

The report does not outline a specific recommendation to address the gaps in the U.S. rules, but urges Congress to request an annual evaluation, to be completed within 6 months by the General Accountability Office and later made public, of the effectiveness of export controls on chipmaking equipment to China.

(Reporting by Alexandra Alper; Editing by Chizu Nomiyama)

Bill Gates says AI is 'pretty dumb' now, but predicts everyone will have robot 'agents' within 5 years

MICHAEL LEE

FOX NEWS

November 14, 2023 

Microsoft co-founder Bill Gates had a bold prediction for the future of artificial intelligence, arguing that every person will soon have a robot "agent" acting on their behalf.

"In the near future, anyone who’s online will be able to have a personal assistant powered by artificial intelligence that’s far beyond today’s technology," Gates said, according to report in Fortune. "Agents are smarter. They’re proactive — capable of making suggestions before you ask for them."

Gates comments come as AI technology continues to develop rapidly, with new platforms such as OpenAI's ChatGPT gaining mainstream popularity over the last year. While Gates acknowledged the "software is still pretty dumb" as of 2023, that reality will "change completely" within the next five years.

The billionaire tech entrepreneur argued that basically everyone will have a personal assistant adept at carrying out seemingly any task, citing the potential for the technology to plan entire vacations for its users.

Microsoft co-founder Bill Gates.

"When asked, it will recommend things to do based on your interests and propensity for adventure, and it will book reservations at the types of restaurants you would enjoy," Gates said. "If you want this kind of deeply personalized planning today, you need to pay a travel agent and spend time telling them what you want."

The Microsoft co-founder argued the technology will have wide-ranging uses to make life easier, carrying out more complex tasks than users of current voice assistants are used to.

"If your friend just had surgery, your agent will offer to send flowers and be able to order them for you," Gates said. "If you tell it you’d like to catch up with your old college roommate, it will work with their agent to find a time to get together, and just before you arrive, it will remind you that their oldest child just started college at the local university."

While the technology Gates envisions may make people think of the widely held assistants many currently hold in their pocket, such as Apple's Siri, AI assistants will be capable of much more.

"Bill Gates is talking about Natural Language Processing (NLP) as the key to these improved AI assistants," Christopher Alexander, the Chief Analytics Officer of Pioneer Development Group, told Fox News Digital. "NLP enabled assistants differ from Siri because NLP is actually a coding language. This means the NLP AI assistant will have significantly greater functionality because it possesses far greater problem-solving abilities."

From Lagos to London: Africa’s economic powerhouse makes historic debut at Lord Mayor’s Show

 
By Stephanie Busari and Nimi Princewill, CNN
Tue November 14, 2023

The Lagos government is stepping up a hunt for foreign investment as federal authorities battle to revamp Nigeria’s battered economy.

Lagos, NigeriaCNN —

Nigeria’s Lagos state marked a historic moment by making Africa’s inaugural appearance at the renowned Lord Mayor’s Show in London – an annual procession, steeped in 800 years of tradition, that celebrates the history and commerce of the city.

The debut signals the state government’s ambitions to become a global financial hub and to attract foreign investment, particularly crucial as federal authorities grapple with revitalizing Nigeria’s economy, which faces challenges such as mounting debts, unprecedented inflation rates, and a sharp decline in the local currency.

Organizers of the Lord Mayor’s Show said Lagos was invited to participate in the London procession because of the state’s “growing economic prominence.”

Lagos Governor Babajide Sanwo-Olu, who led Nigeria’s contingent to the London parade on Saturday, told CNN his state’s participation was an invitation to the world to explore “the myriad of opportunities” available in Lagos.

Among the Lagos contingent were the traditional Eyo masquerades who take part in the famed Yoruba Eyo festival in the state.

He told CNN: “Let it be known that Lagos State, with its rich cultural heritage and unwavering spirit, is not just participating in a historic procession; it is striding into the global spotlight, inviting the world to witness its dynamism, its progress, and the myriad of opportunities available to all.”

“Lagos isn’t just open for business — it’s open for transformative, groundbreaking projects that shape the future,” he added.

A global financial center

Lagos is Nigeria’s former capital city and has remained the economic nerve center of the West African country – contributing 30% to its GDP and more than 50 percent of Nigeria’s port revenues, according to figures released by the state.

However, it faces many issues, not least its struggles with inadequate infrastructure, such as roads, public transport, and utilities. Lagos has also experienced rapid population growth, leading to issues such as overcrowding, a strain on infrastructure, and increased demand for basic services.

However, many backers believe that Lagos has the potential to evolve into a global financial hub capable of drawing substantial foreign investments into Nigeria.

Aigboje Aig-Imoukhuede, co-chair of the newly inaugurated Lagos International Financial Centre Council (LIFC) told CNN Lagos was now ready to position itself with global players.

The “market infrastructure is in place,” he said adding, “The problem was the management of the market. Our market unfortunately suffered very poor management for the last eight years. But things have changed.”

Nigeria participates at London processionEnterpriseNGR

The yearly event commemorates the induction of the new Lord Mayor of the City of London, and Lagos had a colorful procession showcasing the best of its arts and cultural heritage.

Huddle for investors

Amid the scramble for foreign investments into Nigeria, myriad challenges however abound for potential investors.

According to the US Department of Commerce, foreign exchange restrictions and the rising cost of doing business in Nigeria were some of the drawbacks of investing in the country.

Nigerians outraged over government spending plans as millions face hardship

Last year, flights between Nigeria and the United Arab Emirates were stopped after Dubai’s Emirates airline suspended its operations in the country citing trapped revenues.

In a similar move, British drugmaker GSK said this year it was ending its business in Nigeria, partly due to soaring business costs.

Aig-Imoukhuede, whose advocacy group EnterpriseNGR partnered with the Lagos government to create the LIFC, wants Nigeria’s financial authorities to address some of these issues, especially the country’s rising inflation and unstable exchange rate.

“Focus on the inflation rate, bring it down,” he urged the Nigerian Central Bank. “A low stable inflation rate automatically signals a stable currency … and that’s the job half done,” he told CNN.

Home Depot says the worst of inflation is over — that could be good news for retailers and shoppers

MELISSA REPKO, CNBC
November 14, 2023 

David Paul Morris

Even as Home Depot forecast sales declines, the retailer had good news for investors and consumers on Tuesday.

“I think the most important observation we’ve made is that the worst of the inflationary environment is behind us,” Chief Financial Officer Richard McPhail said on an earnings call.

Shares of the retailer rose by nearly 6% in early trading after the company beat quarterly earnings expectations, driving a rally for the Dow Jones Industrial Average. The company’s comments also came as federal data on Tuesday morning showed that inflation was flat in October from the prior month.

Home Depot kicked off a much-anticipated week of retail earnings that includes other household names, such as Walmart, Target and Macy’s. All of the retailers have struggled with consumers who have become more selective about spending, particularly on pricier and discretionary items, as they pay more for necessities like groceries.

Home Depot is no exception. For multiple quarters, its customers have bought fewer big-ticket items and taken on smaller, less expensive projects.

Yet with its comments on Tuesday, Home Depot gave fresh hope that consumers and the broader economy could soon see relief. In the short term, cooling inflation reduces sales numbers for retailers, including Home Depot. Yet long term, if prices level off or even start to drop, it can free up extra money that shoppers can spend elsewhere.

Plus, cooling inflation could speed along the end of interest rate hikes by the Federal Reserve. The central bank has been trying to tame decades-high price increases without tipping the economy into a recession.

Still, Michael Baker, a retail analyst for D.A. Davidson, said relief won’t come soon enough for the holiday season. He expects modest sales growth for retailers.

“Less inflation can invite back in some discretionary spending, but that’s offset by the fact it’s generally a pretty soft spending environment,” he said.

At Home Depot, McPhail has described 2023 as “a year of moderation” after the boom in home improvement during the Covid pandemic. The retailer predicts a drop in sales from last year.

Yet the normalization of other trends has brought predictability for the business and customers, he said.

“Some prices are settling at levels higher than 2022,” McPhail said. “Others are settling lower. But we’re seeing some stabilization there.”

Appliances, which sometimes requires months-long wait times, are back in stock. Those healthier inventory levels have lifted sales in the category, said Billy Bastek, executive vice president of merchandising, on the earnings call.

Yet some factors that drive inflation are beyond retailers’ control and influence consumers’ decisions, too.

Just take the cost of painting a living room, CEO Ted Decker said on the earnings call. He said Home Depot remains focused on offering low prices. But, he added, it’s backed off on the kinds of promotions that don’t make a difference.

He said cutting the price of paint by $10 doesn’t put a dent in the bigger cost: Paying the painters.

For climate advocates, a well-timed meeting between Biden and Xi

LUCAS THOMPSON
November 14, 2023 

Kent Nishimura

For those invested in the fight against climate change, the timing of this week’s meeting between President Joe Biden and Chinese President Xi Jingping is fortuitous.

The rare face-to-face, scheduled to happen Wednesday on the alongside the Asia-Pacific Economic Cooperation summit, comes as signs of a renewed desire between the two economic giants to work together to rein in fossil fuel use appear to be growing — a significant shift and a possible topic on which the countries can agree.

On Thursday, John Kerry, Biden’s special climate envoy, wrote on X that the nations had “comprehensive and constructive discussions” and “reached common ground on a number of issues.” His update comes less than a month ahead of COP28, the United Nations conference at which countries are expected to agree to new pledges to fight climate change and its consequences.

That’s a crucial signal for the world, much of which takes its climate cues from the U.S and China.

“I think both presidents see the climate and clean energy space as perhaps one of the bright spots in the relationship,” said Alden Meyer, senior associate at E3G, a climate think tank that focuses on global policy. “Both in terms of what the countries are doing domestically and how they can help smooth out some of the roadblocks to successful outcomes in the climate negotiations process.”

For Kerry, it’s a reversal from a more sour tone just six months ago when he said climate negotiations had struggled amid growing geopolitical tensions. A 2021 agreement between the U.S. and China to combat climate change has since been overshadowed by China’s growing fossil fuel production, most notably with coal.

But each country has shown signs of willingness to clean up their energy use. China recently announced its long-awaited methane emissions agreement, and the sweeping policies included in the Inflation Reduction Act, the U.S. climate law that passed last year, help both nations align on decarbonizing sectors while bringing down emissions

Fan Dai, director of the California-China Climate Institute, a partnership between the University of California, Berkeley, and Tsinghua University, said cooperation would be natural since both countries want to move away from fossil fuels and bolster their economies but have security implications to consider.

“I think that’s another issue that really requires the two countries to work together with each other and with the rest of the world,” she said.

The negotiations come as the climate community has warned that the world is barreling toward the 1.5 degrees Celsius threshold at which point the effects of human-caused global warming cannot be reversed. Both countries are experiencing the harsh effects of climate change in the form of flooding and heat waves that would not be possible without climate change.

It’s not clear what the agenda for the Biden-Xi meeting will be, though it will come shortly after Xi’s meeting with California Gov. Gavin Newsom, who visited China last month to talk climate cooperation. Meyer said that Kerry’s talks and the presidents’ meeting bode well for the upcoming U.N. conference.

“Assuming that goes well, I think the hope is that they could work out an updated joint statement by the time COP28 rolls around in Dubai in about three weeks,” he said.

COP28 will serve as a crucial waypoint for the world’s climate mitigation efforts. The E.U. has already said it will make a substantial financial contribution to a fund meant to address destruction by climate change, and Reuters reported that more than 60 countries have expressed support for an agreement to triple renewable energy this decade.

Dai noted that the optics of climate cooperation could also give the topic a boost as the rivals square off in other arenas.

“In the climate space, I think that cooperating with the U.S. does not mean President Xi has to bend his knees to the U.S. and to Biden. It’s more taking a long-term view, and it’s more of how a leader should think,” she said. “I think the same applies to working with China on climate does not mean Biden is weakening his position on Chin

MUTUAL AID
Volunteers in Cape Breton find ways to get food to people living in rural Margarees


CBC
Tue, November 14, 2023

The Margaree River runs through an area of western Cape Breton where homes can be far apart and some seniors are becoming isolated, say community members. (Brittany Wentzell - image credit)

Fledgling community groups in Inverness County, Cape Breton, are working to make sure people living in isolated countryside homes have enough to eat.

"We don't have a store on every corner. We don't have all of the amenities of larger towns and or cities," said Liz Birch who is a senior herself and a member of the Northeast Margaree Seniors and Pensioners Club.

"So seniors have but one choice — they either have to go and get the groceries and bring them home, put them away, get them prepared, etc., or they avail themselves of a program, but there aren't any."

That's why three local organizations are trying to make it easier for people who face difficulties travelling to larger centres for groceries or other necessities like drug prescriptions.

The Cheticamp branch of Meals on Wheels started a pilot project a few months ago to deliver meals to the Margaree area. However, a local branch is needed in order to expand the program and use local volunteers.

Liz Birch is a member of the Northeast Margaree Seniors and Pensioners Club. (Erin Pottie)

The Cheticamp branch supported 10 people for six months. It got an extension but Kristin Muntz, one of the people leading the charge to create the local branch, said a Margaree branch would allow them to expand the program to at least 25 people. Muntz said it is a necessity especially with an aging population and increased inflation.

"Here in the Margarees we are isolated, we are a very northern community," said Muntz.

"It's tough for a lot of seniors to get out in the winter let alone during the year to be able to shop for groceries"

Birch's brother and sister-in-law have been using the Meals on Wheels program. She says it's been invaluable to them and to others as well.

"They get their meals three times a week, Monday, Wednesday and Friday. Those days are great days," she said.

"My brother and his wife are fortunate they have each other, but there are a lot of single seniors out there that don't have that."

Kristin Muntz is helping to organize a Meals on Wheels program in the Margarees, Cape Breton. (Erin Pottie)

The group supporting Meals on Wheels is partnering with the Margaree Fire Hall as it is a central location that has regular snow removal in the winter. The hall also has a large kitchen suitable for meal prep, though Muntz said it needs upgrades.

The group has raised $20,000 but needs around $140,000 for its first year of operation. Much of that money will go toward setting up the program, including upgrading the kitchen. Two cooks will be paid a salary as well.

While the group's partnership with the fire department gives them a central, well maintained space to operate, it's proving to be a complication when it comes to obtaining funding from the municipality.

Inverness County generally doesn't give money to fire departments for hall infrastructure like kitchens.

Coun. Blair Phillips said he's been getting more calls lately from constituents looking for help.

"A lot of times there'll be a senior who has lost their spouse, so their money is cut in half," he said.

"With the price of oil and just daily living, it's hard to make ends meet."

With that in mind and the proliferation of organizations aimed at tackling food insecurity, council plans to make the issue the top agenda item for the first meeting of the new year.

The Meals on Wheels group applied for a community district grant but there also was not enough money in that fund to meet their $25,000 request. The request has been deferred until December so that council can look into more options to fund the group.

Mary MacNeil is the chair of the Margaree Food Security Program which launched in July 2023. (Erin Pottie)

More help with food

Another group helping people in the area is the Margaree Food Security Program, which launched in July.

The program, which is currently in a six-month trial period, provides gift cards at the local co-op. Users can get a gift card every two weeks: singles receive $50, couples $75 and families $100.

The program is seeing uptake from seniors, adults, and families. Mary MacNeil, the chair of the program, said they average about three calls a week but expects it to rise as people will soon need to pay for winter heating.

"A lot of people depend on seasonal employment and then there's employment insurance during the winter. We have a large senior population here who would be on a very fixed income and it was the general feeling that things weren't going to get better," said MacNeil.

Her group considered starting a food bank, but realized gift cards were a simpler and more anonymous solution.

"Our main goal is to recognize people's pride and dignity."

The program recently received $3,000 from the Municipality of Inverness. They also received funds from the local Kinsmen Club after it closed its doors.

Another not for profit organization is also set to expand in the Margarees. L'Acabie, which is based in Cheticamp, is a service that provides people with rides to medical appointments and trips to the grocery store. It will soon be doing grocery deliveries in the area.

32% of N.L. seniors don't have enough money to meet needs: Seniors' advocate report


CBC
Tue, November 14, 2023 

Susan Walsh, seniors' advocate for Newfoundland and Labrador, has released a report that looks at problems facing seniors in the province. 

(Henrike Wilhelm/CBC - image credit)

Newfoundland and Labrador's seniors' advocate has released a report that shows nearly one-third of people over 65 are struggling financially, due in part to provincial systems and benefits.

In her report, titled "What Golden Years?", Susan Walsh has come up with 12 recommendations for improving five areas — insufficient pension benefits, costs for home support services, food costs, medical care costs and costs to prevent illness.

Walsh said they heard from more than 1,000 seniors in the process of crafting the report. Of the 32 per cent who said they couldn't afford to meet their needs, 60 per cent said they go without food and 57 per cent said they cannot purchase medical supplies and devices.

"When you meet with seniors, they're very proud," Walsh said. "They work their entire lives. They raised their families. They did all the right things. And so no one wants to talk about not having the money to now live on to be poor in old age. 'How did I get here?' It keeps being the question that we hear."

Seniors in the province can avail of the old age security benefit and guaranteed income supplement, which are both federal initiatives. There is also a provincial fund called the N.L. seniors' benefit, which pays a maximum benefit of $1,516 annually to people who make less than $29,402.

That amount was increased 10 per cent in 2022, after going six years without adjustments.

Walsh's top recommendations are for the N.L. seniors' benefit to be indexed to the cost of living, and for the province to review the income threshold for someone to receive the maximum benefit.

"The goal here is to have the N.L. seniors' benefit keep pace with inflation and increase eligibility for seniors above the $29,000 cut-off," Walsh said.

Some seniors living on 'tea and toast'

Walsh said she decided on the title for the report after speaking with seniors who often asked the question, "What golden years?"

One of their biggest concerns was buying food. While many seniors can't afford food, the report said others have trouble accessing it — they can't get to the grocery store, or they struggle to carry heavy bags on their commute.

The province introduced food delivery programs during the height of the COVID-19 pandemic, but the programs faded out when emergency funding dried up.

Food bank operators say demand for what items they do have is as high as it's ever been.

Newfoundland and Labrador has the highest rate of food bank usage in Canada, at 10.6 per cent of users, according to Food Banks Canada. (Brittany Spencer/CBC)

"We have heard from our community partners in the food charity sector that the number of seniors they serve is increasing and many are struggling, since the ability to deliver food has ended," Walsh said. "Some are living on tea and toast."

Walsh recommended the province introduce a food delivery program immediately, echoing the same calls from Food First N.L., which advocates for

The report also looks at eligibility and accessibility of home care.

Newfoundland and Labrador is one of six provinces and territories in Canada where people have to co-pay for home-care programs. Walsh looked to British Columbia, where all seniors who receive federal income assistance are guaranteed free home care. She's recommending Newfoundland and Labrador do something similar, allowing people to stay longer in their own homes.

Walsh said her office will monitor the recommendations and she hopes the province will enact them to help seniors as soon as possible.

"They're struggling and it's our responsibility to do something about that."

Sask. surface rights law weighted in favour of companies, say rancher, expert

CBC
Tue, November 14, 2023 

Many private property owners in Saskatchewan don't own the minerals beneath the surface of their land. Resources companies, including those in the oil and gas sector, can purchase those rights — but they need the surface rights before they can come onto the property. 

(Kyle Bakx/CBC - image credit)

Stephanie Fradette felt uncomfortable as she sat across from a panel in Regina last month, anticipating an uphill battle to get what she felt Crescent Point Energy Corp., a Calgary-based oil and gas company, owed her to use her land.

Fradette, a rancher from Lake Alma, Sask., a southern community of about 270 people, drove about 150 kilometres to represent herself in the hearing. Her opponent: a corporate lawyer with thick binders and several witnesses.

"To be asked to come and go toe-to-toe against oil-field, pipeline lawyers, it's really, really intimidating," Fradette told CBC News.

Fradette's case centres around a pipe Crescent Point Energy built on her land, but it illustrates broader concerns about surface rights law in Saskatchewan and the quasi-judicial body that handles disputes.

The case also shines a light on social dynamics that can pressure rural residents to make way for development.

Hansard archives show that, over the years, provincial politicians have periodically debated about surface rights legislation and the Surface Rights Board of Arbitration, the body that handles disputes.

 (Nicholas Frew/CBC)

Many deeds in Saskatchewan are only surface-deep. In most cases, private landowners do not own what lies beneath their property.

Resource companies can purchase the rights to elements that lie below, but have to get surface rights before they are allowed on the land.

In Fradette's case, Crescent Point Energy wanted to build a flow line — piping used to move oil or minerals from a wellhead — on two parcels of the Fradettes' property, including near their house.

The property already has a disposal line running beneath it, Fradette said, adding that they were told the line was leaking.

The Fradettes told Crescent Point representatives the company could come on the land if it would replace the old line, she said. Crescent Point wanted to build the new line and leave the old one in the ground.

Murray Douglas, the lawyer representing Crescent Point Energy, told the board during last month's hearing that old lines aren't dug up because it would lead to further soil disturbance.

Per surface rights legislation, companies must restore the land as it was. Them not doing so is a common complaint, Douglas told the board, so as long as the land is clean and acceptable to the regulator, that's what will be done.

Crescent Point Energy eventually applied to Saskatchewan's Surface Rights Board of Arbitration — an appointed board that is supposed to be a last resort — for the right of entry.

The board granted the company access to the property on Sept. 30, 2021, in part because it did not receive an objection, says the publicly available right-of-entry order.

Fradette and her husband did oppose, she told CBC News. They were just too late.

Stephanie Fradette is waiting to hear how much she and her husband will be compensated for a flow line that was built on their property. 

(Vashisth Trivedi/CBC)

If a company applies for right-of-entry, the property owner has seven days to object, legislation states.

By the time the Fradettes checked their mail and found a notice of the application, that period had passed, Fradette said, adding that she sent an email after receipt anyway.

Crescent Point Energy has since built a new flow line that parallels the old one, Fradette said.

Compensation hearings, such as the one Fradette attended last month, are held when the board has to determine payment for surface rights that were acquired, the legislation says.

A compensation order for Fradette's case is pending, the board's secretary told CBC News via email.

Striking a balance

Saskatchewan Energy and Resources Minister Jon Reiter, during a recent scrum at the legislature, described surface rights as a balance between being pro-business and protecting landowners.

For mining, surface rights are required to conduct geographical surveys to ensure the province's mineral reserves — potash, for example — can safely be accessed, said Pam Schwann, president of the Saskatchewan Mining Association.

Saskatchewan's Surface Rights Acquisition and Compensation Act lays out how industry can obtain surface rights and compensate landowners, and how to maintain and reclaim the land.

The provincial government passed amendments last spring that empower the arbitration board to levy greater fines for property damage — raising the maximum from $1,000 to $30,000 — and better hold companies accountable. Helium and lithium will also fall under the board's purview.

"The important thing is that landowners' rights are protected," Reiter told reporters recently. "These incidents don't happen that often, but when they do, it's important that they get what they're entitled to."

Saskatchewan Energy and Resources Minister Jon Reiter described surface rights as a balance between protecting landowners and accommodating business. 

(Vashisth Trivedi/CBC)

The changes, which take effect next year, are the first "significant amendments" to the law since its inception in 1968, Reiter said.

There have long been concerns, however, that the law and the board are stacked against property owners, most of whom are farmers and ranchers living in rural Saskatchewan.

"If you've bought the mineral rights, you have a legal right to access them through the surface," said Emily Eaton, a professor of geography and environmental studies at the University of Regina.

Hansard archives show Opposition politicians, over the years, have questioned whether the arbitration process was biased toward industry, including concerns that it defaulted to whatever compensation the company initially proposed to the landowner.

"People are somewhat cynical about their ability to get proper compensation and action through the board," Eaton said.

No one on the arbitration board could comment on its process and procedures, because the compensation order is pending, the board's secretary said.

In addition to compensation for the flow line project, legislation states the board could direct Crescent Point Energy to pay the Fradettes an annual rent for up to three years. The rent could amount to up to half of the compensation awarded for the flow line.

Fradette could also be reimbursed for "reasonable costs and expenses" she incurred to attend last month's hearing, the law says.

Culture of silence

In rural Saskatchewan, many property owners feel compelled to roll over for companies seeking surface rights, because not doing so could have social repercussions, Eaton said.

"To be actively opposing the industry is really taboo in a lot these rural areas, because it might be understood that you're threatening the prosperity of the community, or the jobs of your family members," Eaton said.

This has contributed to a culture of silence when it comes to surface rights, she said. A property owner must be "really committed to making a point" to go to the arbitration board.

Emily Eaton, a University of Regina professor of geography and environmental science, says people living in rural Saskatchewan feel social pressure to not make waves about surface rights. 

(Michael Bell/The Canadian Press)

No one had spoken directly to Fradette as of her interview with CBC News — but she heard the rumours, she said.

"It's just crummy to be part of the neighbourhood gossip — especially misrepresented gossip," Fradette said.

"Farmers are businessmen. They own land for a reason and, I think, most of them are open to projects. But you have to make sure it's good for you and not just good for the other guy."

Fraudette said she is skeptical she'll receive anything other than what Crescent Point Energy agreed to pay other landowners.

She familiarized herself with the surface rights law on her own time — in part so she wouldn't have to share the earnings with a lawyer.

"You're already getting a very small amount of money and you would spend most of it — or all of it — on legal advice, to come to a hearing to find out that everything they're doing is legal anyway," Fradette said.

"They're not doing anything illegal."

ICYMI

California hits major industry with lawsuit for allegedly spreading ‘lies and mistruths’: ‘[They] have privately known the truth for decades’

Leo Collis
Tue, November 14, 2023 

California is one of the most committed regions in the United States when it comes to striving for a sustainable future.

The state is seeking to provide 100% renewable energy to residents and businesses by 2045, and it has seen billions of dollars of investment in “clean energy technologies.”

Now, it is taking on the oil industry, with the state of California filing a lawsuit against industry giants like ExxonMobil, Shell, and BP, as well as lobbying body the American Petroleum Institute.

NPR reported the suit was filed in the San Francisco Superior Court, and the focus is on claims the big players in the oil industry have been misleading the public about the dangers of dirty energy.

“California is suing these big polluters to hold them accountable for their decades of deception, cover-up, and billions of dollars in harm done to our state,” the office of California Governor Gavin Newsom said in a statement.

The Governor’s office added the “lies” pushed by Big Oil over the course of decades have contributed to global heating, resulting in extreme weather events such as superstorms, wildfires, extreme heat, extreme drought, and flooding.

“It has been decades of damage and deception,” Governor Newsom continued. “Wildfires wiping out entire communities, toxic smoke clogging our air, deadly heat waves, record-breaking droughts parching our wells. California taxpayers shouldn’t have to foot the bill. California is taking action to hold big polluters accountable.”

If the state is successful, it is calling on oil companies to compensate the state and its residents for the industry’s impact on the environment and to help bring protection initiatives to mitigate against future damage that rising temperatures bring. It is also hoping to stop oil companies from engaging in further pollution and to cease misinformation campaigns.

California Attorney General Rob Bonta is also leading the lawsuit.

“Oil and gas companies have privately known the truth for decades — that the burning of fossil fuels leads to climate change — but have fed us lies and mistruths to further their record-breaking profits at the expense of our environment,” he said. “Enough is enough.”

According to Cal Fire, there have been 5,741 wildfire incidents in the state in 2023 alone, with over 305,000 acres burned.

As California Local observed, Southern California saw its first tropical storm since 1939 in August, leading to record quantities of rainfall in Palm Springs, San Diego, and downtown Los Angeles. The state also saw its hottest recorded month in history in July, and 12 major rainstorms were recorded earlier in the year.

It’s clear, then, that California is bearing a significant burden when it comes to the impact of global heating, and the lawsuit will leave Big Oil with a lot to answer for.

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