Tomorrow morning, on Public Eye Radio, provincial Liberal House Leader Mike De Jong joins us to discuss the recent legislative session. 24 hours' Bill Tieleman gives us a Basi-Virk trial update. And our rabble-rousing panel - Don Anderson, Eleanor Gregory, Bob Russell and Allan Warnke - will debate the week that was in provincial and federal politics. You can listen to Public Eye Radio outside of Victoria by logging into CFAX 1070 between 8:30 and 10:00. If you have a question for one of our guests, you can email us or leave a comment below.

Earlier, we reported the provincial New Democrats introduced a comprehensive government integrity bill that would have, in part, patched up the Campbell administration's broken Lobbyists Registration Act. This, after the government failed to introduce its own fix during the recent legislative session. And it seems Attorney General Wally Oppal isn't in any hurry to take such action in the future. "We want to change the legislation. But it's not quite as dire as the NDP suggests because the remedies are still there," Attorney General Oppal said in an interview with The Vancouver Sun's Jonathan Fowlie, adding that police can still investigate any allegations of wrongdoing.

The Campbell administration doesn't seem to be in a hurry to fix its broken Lobbyists Registration Act before the next election. So, today, the New Democrat tried to takeover that job, tabling a comprehensive government integrity bill that would patch up that act and strengthen the province's conflict of interest laws. "Members of this House will recall the many commitments to openness and transparency made by the current government, commitments that seem to have been abandoned along the way," said Ms. James. "This act establishes a stronger, more open and transparent regime for ethical conduct of lobbyists, public officeholders and former public officeholders in this province."

In October, British Columbia's lobbyists registrar David Loukidelis announced he would no longer be investigating alleged violations of the Lobbyists Registration Act.

This, after top Liberal backroom operative Patrick Kinsella refused to "consent to any investigation or reporting" by the registrar into his interactions with the Campbell administration.

At the time, Mr. Loukidelis stated he doesn't have the legal "tools necessary to properly investigate and address complaints" under the existing act.

Mr. Kinsella has repeatedly denied ever lobbying the government he was instrumental in electing. And, according to a written statement issued by his company, The Progressive Group is "confident it has consistently and correctly followed the requirements of the Act," registering "each and every" time it communicates with public office holders on behalf of clients.

Private bingo hall and community gaming centre interests appear to have contributed $269,711 to the provincial Liberals between 2002 and 2007. But almost none of those donations were made via companies publicly-identified as bingo hall service providers in British Columbia Lottery Corp. annual reports released between fiscal 2002/03 and 2007/08. Instead, a three week investigation by Public Eye shows 98 percent of the donations came in the form of contributions from industry-connected individuals or other companies whose president is a current or former gaming facility owner/operator. And almost a quarter of the donations or $65,000 were recorded by the Liberals as being made on the same day - February 15, 2005, three months before the last provincial election.

Of the seven individuals and couples who made corporate and personal donations on that date, six couldn't give details about those contributions.

The seventh was in Palm Springs and won't be returning to B.C. until Christmas.

When those donors - as well as other owner/operators - were asked why they contributed via companies other than their service providers, explanations ranged from "because (that was the company that) probably had some money in it" to "it was just the cheque I happened to have on me."

But John Becher, a Terrace bingo hall owner, volunteered a different explanation for his own donations - one that has been denied by Tom Nellis, president of the association representing a majority of B.C.'s bingo halls and community gaming centres.

In a taped interview, Mr. Becher, who made those contributions in his own name, said Mr. Nellis has solicited donations for the Liberals at Registered Gaming Management Companies of B.C. meetings.

"And, generally, they don't want to have it through the actual company. They'd sooner do it on a private basis," said Mr. Becher, who has contributed a total of $10,000 to the Liberals, including a $4,000 donation on February 15. "That's what we usually do. And then I'll just get a cheque back from my own company."

Asked about that practice, Mr. Becher - who owns the Lucky Dollar Bingo Palace - said, "It's just Tom's idea that it looks better than to have gaming supporting the government."

Otherwise, Mr. Becher added, "people will say, 'Gee, what's going on here. We can see why the government wants all these slots put in because they're being supported by the gaming association.'" - a reference to a fiscal 2004/05 lottery corporation initiative that has resulted in the installation of 1,105 slot machines at bingo halls across the province.

No other current or former owner/operator contacted reported receiving advice not to donate through their service provider.

For his own part, Mr. Nellis has denied soliciting donations for the Liberals at Registered Gaming Management Companies of B.C. meetings, stating in an email that "RGMC is not a political fundraising organization. It is an industry business association."

Mr. Nellis also stated he has "absolutely not" advised owner/operators to make donations on a "private basis" because service provider contributions would look bad.

Although Mr. Nellis, who declined to name the members of the Registered Gaming Management Companies of B.C., wrote he has counselled "business associates to support the government of their choice."

Mr. Nellis, who is also chief executive officer of B.C.'s largest bingo and community gaming centre operator, hasn't made any donations through his service provider - Playtime Community Gaming Centres Inc.

Instead, Dominion Catering Ltd., K&T Properties Ltd. and R&E Projects Ltd. - three companies of which he's president - have donated $121,849.

And he's also personally contributed $2,342 for a total of $124,191 - the most of any owner/operator.

Asked why he hasn't made any contributions through his service provider, Nellis stated it was "a personal decision."

He described Dominion Catering and R&E Projects - two lottery retailers - and K&T Properties as "private" companies.

Elections British Columbia communications director Wendy Stewart says her agency is "reviewing and considering the information that has been provided" by Public Eye. "And we need additional time to review the matter."

Bingo hall and community gaming centre interests also donated $4,100 to the New Democrats between 2002 and 2007.

Other apparent contributions made to the Liberals by those interests have included:

* $30,000 from Newton Square Properties Ltd. According to a Liberal financial report, the company's principal officer is Len Stuart, a founding partner of Boardwalk Gaming and Entertainment Inc. - Canada's largest bingo hall operator.

In an interview, Jordan Gnat - who is president of both Boardwalk and Newton Square Properties - said he didn't remember the donation, which was one of several gaming contributions made on February 15, 2005.

But, according to him, Newton Square Properties is "a real estate firm. That has nothing to do with bingo…You're making a conclusion that's not correct."

Mr. Stuart is also identified as the principal officer for the numbered company 428675 B.C. Ltd., which contributed $31,000 between 2002 and 2003.

But Mr. Stuart, speaking to Public Eye while fishing in the Bahamas, said he doesn't know anything about donations from the numbered company or Newton Square Properties.

"The problem is, I'm retired," he said. "I've got investments in about 15 or 20 companies. I don't really follow what Jordan does, to be honest with you. And, unless somebody is making a big acquisition for millions of dollars, people don't really bother me."

On March 28, 2004, 428675 B.C. Ltd. was amalgamated into another numbered company - 427967 B.C. Ltd., the service provider for two of Boardwalk's three British Columbian bingo halls.

Mr. Gnat is also the president of 427967 B.C. Ltd.

* $7,200 from Otter Properties Inc. and the now amalgamated Tower Plaza Inc. John Major is president of both companies, as well as Good Time Bingo Hall Inc. - the service provider for community gaming centre Chances Good Time Prince George.

Asked about those donations - along with the $4,200 in personal contributions made by Mr. Major and his wife - Mr. Major said, "I'll donate to who I want, what party I want and I'm not ashamed of it. And I'll do it from whatever company I want to. But that's my business," before hanging up.

Six years ago, Mr. Major - who is also the operator of the Treasure Cove Casino - made headlines in the Prince George Citizen after making the biggest individual contribution to the Liberals in 2001 - contributing $58,055.

* $23,000 from B-11 Holdings Ltd. and 7779 Ventures Inc. The companies' presidents are Patricia and Gary Hart.

Ms. Hart is also president of Enterprise Entertainment Ltd., the service provider for community gaming centre Chances Kamloops.

Asked why she and her husband have made most of their donations through B-11 and 7779 Ventures rather than Enterprise Entertainment, Ms. Hart said she didn't see the relevance of the question.

"We have various companies in B.C. and Alberta and have donated to a lot of things over the course of our business life," Ms. Hart answered, adding she wasn't uncomfortable making donations via her gaming service provider.

In fact, Enterprise Entertainment donated $400 to the Liberals in 2007.

In an earlier interview, Mr. Hart said he couldn't comment on the $5,000 B-11 and 7779 Ventures each donated to the Liberals on February 15 without looking at the couple's records.

Although he said, "I don't comment on who we support or why."

* $14,500 from MTS Enterprises Ltd. and 593904 BC Ltd., including $6,000 on February 15.

Merle Gardner is president of both companies, as well as Lucky's Ventures Ltd. - the service provider for Chances Signal Point in Williams Lake.

Asked about her February 15 donation, Gardner said, "It's a while ago. I can't give you any specifics on it."

She also said there was no reason that donation came from MTS - a lottery retailer -rather than her gaming service provider.

"Possibly it was just the cheque that I happened to have on me," Merle suggested.

* $7,400 from V M Holdings Ltd., its president John Vetter and his wife.

Mr. Vetter was also president of Vetter Management Services Ltd., the service provider for the now closed Bear Mountain Bingo Hall in Dawson Creek.

The company was sold to Great Canadian Gaming Corp. on October 1, 2004.

All of the Vetters' donations - including a $5,000 contribution on February 15 - were made after that sale.

"As far as that date, I really couldn't remember any significance to it or anything," said Mr. Vetter.

* $6,500 from Kings North Development Corp. - $6,000 of which was donated on February 15.

Mark Eraut is the president of that company along with 319968 BC Ltd., the service provider for Bingo Bingo Esquimalt.

But Mr. Eraut didn't remember any details about his February 15 donation.

In response to a question as to why he made those donations via Kings North Development rather than his service provider, Mr. Eraut said "I can't tell you (anything) other than the fact that I support the Liberals province-wide and I support them with whatever company" has money in its account.

A former top provincial bureaucrat has been working for the bingo hall and community gaming industry. In an email, Registered Gaming Management Companies of B.C. president Tom Nellis stated his association retains ex-Socred and New Democrat government deputy minister Frank Rhodes "on a part time basis" - along with "a number of other business consultants."

According to Mr. Nellis, Mr. Rhodes "coordinates industry operational services contract negotiations" with the British Columbia Lotteries Corp. "and works with our members in administering those contracts." Mr. Nellis declined to say whether Mr. Rhodes, who has been working "from time to time" for the association since 2001, is employed on a contract basis.

Other gaming facility owners provided more detail on Mr. Rhodes's work for the Registered Gaming Management Companies of B.C. In an interview, Williams Lake community gaming centre owner/operator Merle Gardner described the former deputy minister as the association's "executive director."

"He sits at meetings with us, takes notes, does whatever," said Ms. Gardner.

"He's kind of our spokesperson too," said Terrace bingo hall owner/operator John Becher, in a separate interview. "And we pay him so much for his work."

For his own part, Mr. Rhodes, who chaired a working group that produced a 452-page, 1999 report on gaming legislation and regulation for the then New Democrat government, stated, "Disclosure of my work for any client, including whether I work for them at all, is the right of the client and not something that I have authority to divulge."

Mr. Rhodes, who was the deputy minister to Premier Bill Vander Zalm, is also the former president and chief executive officer of B.C. Ferries Corp.

Last week, Public Eye revealed British Columbia's largest bingo and community gaming centre operator has been getting help from former casino executive and long-time Liberal campaigner Jacee Schaefer.

And, in an earlier interview, Mr. Nellis - the chief executive officer of that company - also said top provincial Liberal operative Patrick Kinsella has also done free favours for the bingo hall and community gaming centre industry.

Tomorrow morning, on Public Eye Radio, provincial New Democrat House Leader Mike Farnworth joins us to discuss the current legislative session. And our rabble-rousing panel - Don Anderson, Eleanor Gregory and Allan Warnke - will debate the week that was in provincial and federal politics. You can listen to Public Eye Radio outside of Victoria by logging into CFAX 1070 between 8:30 and 10:00. If you have a question for one of our guests, you can email us or leave a comment below.

Last month, we asked provincial Libral election preparation co-chair Hector MacKay-Dunn if top party operative Patrick Kinsella has been involved in those efforts. His response: "I would have to say there's a whole lot of people that are involved. So I wouldn't preclude Patrick from that." But fellow co-chair Rick Thorpe wasn't as talkative. Asked the same question today, the Okanagan-Westside MLA said, "I don't talk about the party activity in the legislature." On October 5, CKNW paraphrased Premier Gordon Campbell as saying Mr. Kinsella isn't involved in the 2009 campaign.

Today, provincial elected representatives returned to Victoria for a five-day sitting. But, in an interview with Public Eye, Attorney General Wally Oppal said fixing the government's broken Lobbyists Registration Act isn't on the Campbell administration's fall legislative agenda. Nor could he say if such an amendment would be introduced before the next election "because that's entirely up to the house leader. But I would like to have something done sooner than later." Although, when asked for comment, House Leader Mike De Jong said he couldn't "say for certain" if that would happen before British Columbians go to the polls. "But they're working on it."

Former solicitor general John Les says he can't remember any specific meetings between himself and top provincial Liberal operative Patrick Kinsella. Speaking with Public Eye, Mr. Les said, "You know, I probably had thousands of meetings in my ministry experience. And I can't possibly remember what I might have been discussing with anybody in particular or in general. I've got a good memory. But it's not that good."

Continued Mr. Les, "My policy is always if somebody wants to meet with me, I'll meet with them. I don't exclude anybody. I have meetings with people that I enjoyed meeting with. I had meetings with people I didn't enjoy meeting with. And you just take them all as they come. That was generally my policy. But, like I say, specific meetings with specific people - I don't remember what was discussed."

According to records obtained exclusively by Public Eye via a freedom of information request, Mr. Kinsella, along with ING Canada Inc. executives, were scheduled to meet with Mr. Les on April 11, 2007 and February 1, 2006. An ING spokesman says Mr. Kinsella, who worked as a "consultant" for the insurance giant, attended the April 11, 2007 meeting.

A calendar entry also shows Mr. Kinsella was scheduled to meet with Mr. Les on May 2, 2007. That entry includes the notation "Payday lenders." An executive for The Cash Store Financial Services Inc. says Mr. Kinsella worked for his company in the "spring of 2007."

Under the Lobbyists Registration Act, consultant lobbyists are required to sign-up if they, for pay, communicate with an office holder in an attempt to influence government - although there are some exceptions to that rule.

In the past, Mr. Kinsella has repeatedly denied ever lobbying the government he was instrumental in electing. And, according to a written statement issued by his company, The Progressive Group is "confident it has consistently and correctly followed the requirements of the Act," registering "each and every" time it communicates with public office holders on behalf of clients.

British Columbia's largest bingo and community gaming centre operator has been getting help from a former casino company executive and long-time provincial Liberal campaigner. In an interview with Public Eye, Playtime Community Gaming Centres Inc. chief executive officer Tom Nellis said Jacee Schaefer "has been closely aligned with myself for a number of years. And Jacee helps when we seek approval for slot machines" - from local governments.

According to a calendar entry exclusively obtained by Public Eye via a freedom of information request, Ms. Schaefer was scheduled to attend a February 9, 2006 meeting between then solicitor general John Les, Mr. Nellis and other centre and bingo hall owner/operators.

But, at the time, Mr. Nellis said Ms. Schaefer - who he describes as a "friend of our company" - wasn't being paid by Playtime. Although, beginning sometime in 2007, the company has "offered Jacee minimal compensation for the work she does for us."

In a subsequent interview, Ms. Schaefer - who couldn't, for health reasons, remember if she attended the meeting - said, "That's not quite what it is," when asked about her relationship with Playtime. But she declined to elaborate, directing further questions to Mr. Nellis. "I'm not talking about my personal business to some reporter I don't even know," she said. "Do you think I'm crazy?"

Also scheduled to attend that meeting was Patrick Kinsella - who has, according to Mr. Nellis, done free favours for the bingo hall and community gaming centre industry. Although Mr. Nellis can't remember him being there.

In 1997, Ms. Schaefer - the Liberals' 1996 election day chair - told The Vancouver Sun's John Mackie that Mr. Kinsella was one of her political mentors. Two years earlier, the newspaper's Vaughn Palmer also described Ms. Schaefer, as "a veteran of dozens of campaigns for Social Credit and the Conservatives."

At the time, according to Mr. Palmer, Ms. Schaefer was managing the door-to-door canvass for future solicitor general John Van Dongen's successful by-election campaign. And she did the same job during future healthy living and sport minister Mary Polak's unsuccessful 2004 by-election campaign.

Ms. Schaefer is the former media and government relations vice-president for Great Canadian Gaming Corp.

Tomorrow morning, on Public Eye Radio, Monday Magazine's Sid Tafler and Jason Youmans, along with Shaw TV's Alan Perry, discuss the results of the last night's local election. And our rabble-rousing panel - Don Anderson, Eleanor Gregory, Bob Russell and Allan Warnke - will debate the week that was in provincial and federal politics. You can listen to Public Eye Radio outside of Victoria by logging into CFAX 1070 between 8:30 and 10:00. If you have a question for one of our guests, you can email us or leave a comment below.

Provincial New Democrat attorney general critic Leonard Krog is raising concerns about Supreme Court of British Columbia Chief Justice Donald Brenner's participation at a Fraser Institute event. Next Tuesday, Justice Brenner is scheduled to talk about reforming the legal system as part of the institute's Behind the Spin cocktail series. Tickets to the event, which is being held at the "stylish" Metro Restuarant, are $65 dollars. And those who want to attend a private dinner with Justice Brenner - which is "closed to the public and the media" and has a 14 person seating limit - must pay an additional $195.

Asked for comment, Mr. Krog said he didn't think it was "appropriate for Justice Brenner to be speaking at that kind of engagement" - citing the fact the institute, a free market advocacy group, has a political agenda and is charging a fee for the event. "It's not the same as speaking to a truly public, non-partisan body."

Mr. Krog wrote to the attorney general on September 30, expressing his concern and asking Wally Oppal to ask Justice Brenner to cancel his appearance. But Mr. Krog said "I am not anxious to be making political hay out of this," noting he respects Justice Brenner's "integrity and energy. And I have enormous respect for his abilities as a judge."

But Justice Brenner defended his participation in the event, saying, "I'd be happy to go and speak with any group - the C.D. Howe Institute, the Institute for Research on Public Policy - it doesn't really matter where they are. If I receive an invitation to speak and talk about justice issues, I'm happy to do so. I think it's part of our job."

Moreover, Justice Brenner said the institute told him the event fee is a "cost-recovery charge and it is not a fundraiser."

But, in an interview with Public Eye, institute communications director Dean Pelkey said, "part of the funds collected go to offset the cost of staging the event and the rest goes to the institute as fundraising."

Although, Mr. Pelkey added the event "isn't a huge money-maker for us. It really is a question of covering the cost, providing some food for people and give people a chance to mingle and network."

In his response to Krog on November 7, Attorney General Oppal declined ask Justice Brenner to cancel his appearance, stating such a request would be inappropriate "given our respective roles and the independence of the judiciary." The following is a complete copy of the invite to the aforementioned event.

***

Fraser Institute is pleased to announce the third speaker in our Behind the Spin Fall 2008 Series.

Our signature cocktail series takes place at the stylish Metro Restaurant at Waterfront Centre and offers you an insider's view on current affairs, unique access to influential speakers, and extensive networking opportunities with other professionals.

Also, be sure to sign up for the private dinner with the speaker - this intimate salon-style setting offers you the opportunity to continue the conversation over an exquisite meal well into the evening.

Metro Restaurant
200 Burrard Street (@Cordova)
Waterfront Centre

Donald Brenner
Chief Justice
Supreme Court of British Columbia

A Conversation with Chief Justice Donald Brenner

Tuesday, November 18, 2008

A champion of sweeping reforms to our province’s legal system, Chief Justice Brenner will join us for a discussion on what has turned into a highly controversial provincial issue. The proposed rules around the way law suits are conducted are designed to make our 19th century legal system less expensive and more efficient. Yet outspoken critics - including judges, lawyers, and the Law Society of BC - have said the amendments will restrict citizen’s rights, add costs to litigants, and drag out the length of time required to deal with each case.

What should be done to make our legal system more effective and just for the average citizen?

Cocktail Reception: 5:30 PM - 6:30 PM
Speaker & Discussion: 6:30 PM - 7:15 PM
Private Dinner (Optional): 7:30 PM - 9:30 PM

Individual Event Ticket: $65.00
Private Dinner (Optional): $195.00

The provincial government wants to know how much the coal resources in the Dominion Coal Block are worth. The government has been negotiating to open up those federally-owned lands to mining since at least 2003 - despite concerns the development of those resources could pollute the waters in and around America's Glacier National Park, as well ruin valuable wilderness habitats. And now, the Campbell admnistration has tendered a $50,000 contract "to determine the market value" of the block's coal deposits, including conceptual mining plans for the region. The government has asked that work "to commence as soon as possible and be completed within 2 months" of the contract being awarded. The following is a complete copy of the statement of work for that contract.

Statement of Work

Market Valuation of the Coal Resources
in the Dominion Coal Blocks

1. Requirement:

An economic valuation is required to determine the market value of the coal resources in the Dominion Coal Blocks. The market value is defined as the expected price a buyer would pay for the right to mine the coal resource at the time the valuation is completed, assuming that the same laws and risks of development applicable to other coal properties in British Columbia (BC) apply to the Dominion Coal Blocks.

The Dominion Coal Blocks (Federal Real Property identifier # 67166) are comprised of two parcels of land and the underlying coal resources, Parcel 73 and Parcel 82, located in the Elk and Flathead Valleys of Southeast BC. The proposed procedures in this Statement of Work for estimating the market value for the coal resources within the Dominion Coal Blocks are somewhat different for each block.

The outputs required from this valuation are a report and an Excel spreadsheet, in both printed and electronic form. The report should include, but is not limited to, a discussion, analysis, and summary of the variables identified in this Statement of Work as relevant to a market value determination and how they inform the market value. The spreadsheet should show how the market values for the coal resources within each of Parcel 73 and 82 were calculated based on the variables discussed in the report. The spreadsheet should be prepared such that the input variables are easily identifiable and can be readily manipulated by the client in order to update the market value output, as input variables change over time.

To aid in the valuation, a map is included as Attachment 1 locating the Dominion Coal Blocks based on BC Terrain Resource Information Management (TRIM) topographic base.

A geological assessment of the coal resources of the Dominion Coal Blocks (the geological report) will be made available on a confidential basis to the successful candidate. The geological report provides coal resource estimates and a breakdown of how these estimates were calculated. The geological report was prepared in accordance with Attachment 2, Statement of Work: Geological and Coal Resource Assessment of the Dominion Coal Blocks, Crowsnest Coalfield, British Columbia. The geological report is the source of coal resource data for Parcels 73 and 82 to be used by the consultant for the valuation.

Purpose:

To provide an economic evaluation of the value of the coal resource in the Dominion Coal Blocks.

Tasks:

I. Valuation of Parcel 73: 2023.5 Hectares (7.8 sections)

Parcel 73 has a mainly surface mineable coal resource.

The valuation is envisaged to include the following steps with respect to the coal resources within Parcel 73.

1. For coal considered surface mineable, construct a tonnage versus strip ratio table that also describes in general terms the coal quality in each category. Much of this information is provided in the geological report.

2. Develop conceptual mine plans outlining general mine infrastructure to enable the estimation of at least the following two scenarios for future mining costs to be used in the valuation:

(a) if Parcel 73 were developed on its own; and
(b) if it were developed in conjunction with the adjacent Marten-Wheeler coal property.

Use the conceptual mine plans to generate a table of mining costs per clean tonne of coal for each year over the projected lives of the projects.

3. Identify on a topographical map, the estimated footprint the conceptual mine(s) will occupy as a result of the mine operations, including any pits, spoils, and/or mining infrastructure.

4. Estimate annual transportation and handling costs from mine site to ocean terminal Free On Board (FOB) in Canadian Dollars and US Dollars, and provide the exchange rate forecast utilized.

The two critical price points are:

(a) as a clean tonne leaves the mine site (FOB mine site); and
(b) as a clean tonne is loaded onto boat at Roberts Bank (FOB ocean port).

5. Discuss expected trends in future coal markets in terms of supply, demand, prices and type of coking coal required. Relate this to the quality of coal that will be mined from the Parcel. Ascertain likely markets for the coal and estimate ocean transportation and other costs in US Dollars to deliver coal to these markets. Assess the international competitiveness and economic viability of the conceptual mines on the Parcel. State any necessary assumptions and provide a brief discussion relating to the forecast confidence.

6. Produce a summary table for each conceptual mine plan that includes all the assumptions necessary to derive life-of-mine:

(a) mining costs, including costs to participate in environmental/operation approval processes and costs of reclamation,
(b) rail and port costs,
(c) FOB port selling price.

From these data, estimate total mine profit after tax on a per clean coal tonne basis based on costs and selling price over the life of the project. Assume any of the hypothetical mines proposed would operate within the BC regulatory regime, and undergo a regulatory and construction process comparable to mines of similar scope and geography. State any other necessary assumptions.

7. Based on the summation of the table in step 6, determine the market value of the coal resource in the Parcel to a prospective mining operation, if the property is sold with no further resource information provided. This is the amount that the mining company would be willing to pay at the time this valuation is completed, assuming they can mine and sell the coal resource, taking into account the risk that they assume by buying the coal interest based on the data available and assumptions made as to the profit that might be made mining and selling the coal in the future. Please provide the discount rate used to calculate the net present value of this profit stream and discuss the reasons for choosing that discount rate for this property. Please discuss any other assumptions made in the valuation.

Include a discussion of the accuracy of the value obtained from this valuation. What are possible sources of variance associated with the valuation approach taken and how is this related to the assumptions?

8. Provide advice and recommendations with regard to alternative methodologies to the discounted cash flow approach outlined above. In particular, please review recent resource property sales/acquisitions and market values of public companies with coal properties and the methodologies employed in those appraisals, taking into account that most of these sales are for operating mines and advanced properties about which there is much more firm cost, price and geological information than for the property in question. What further advice can be provided on the market value given this review of comparable properties?

9. Identify and discuss the considerations and risks inherent in the estimates provided due to the limited geological information, volatile resource prices, input price inflation or other factors. What caveats are advisable in relation to the estimated market value provided?

II. Valuation of Parcel 82: 18211.5 Hectares (70.3 sections)

Most of the potential coal resource in this larger block is not amenable to surface mining. Consequently the initial technical data used for the valuation will be different from that used for the Parcel 73 analysis.

The valuation is envisaged to include the above same steps 3 through 9 as for Parcel 73, but with the following two different steps 1 and 2 with respect to the coal resources within Parcel 82:

1. Construct a distance from portal versus tonnage table that also describes in general terms the coal quality (rank) in each category and dip of strata. Much of this information will be provided by the geological report.

2. Develop conceptual mine plans, outlining general mine infrastructure for those mines which are to cover all potentially underground and surface mineable resources in Parcel 82. Use the resource assessment and conceptual mine plans to generate a table of mining costs per clean tonne for each year over the projected lives of the projects.

2 Deliverables

1. Copies of all digital and hardcopy data created in the course of the valuation.

2. A report summarizing the results of the valuations with the contractor’s acknowledgement that the resulting information (report, analyses, digital data) may be made available to the public at the discretion of the federal or provincial governments.

3 Timing

The work is to commence as soon as possible and be completed within 2 months of the award, if possible.

4 Basis of Award

The contract is to be awarded to the best technical proposal within the stated budget of $50,000 exclusive of GST, as established in the appended evaluation criteria (Attachment 3).

Tomorrow morning, on Public Eye Radio, Rob Reid discusses why he wants to be mayor of Victoria. And our rabble-rousing panel - Don Anderson, Eleanor Gregory, Bob Russell and Allan Warnke - will debate the week that was in provincial and federal politics. You can listen to Public Eye Radio outside of Victoria by logging into CFAX 1070 between 8:30 and 10:00. If you have a question for one of our guests, you can email us or leave a comment below.

The president of an association representing British Columbian community gaming centres and bingo halls says top provincial Liberal backroom operative Patrick Kinsella attended meetings between owner/operators and the provincial government as a free favour to the industry. In an interview with Public Eye, Tom Nellis said, "He's never received a cheque or payment or any kind of compensation whatsoever" - from the Registered Gaming Management Companies of B.C. or his own company, Playtime Community Gaming Centres Inc. "He's never been asked to do anything for us or by us."

According to a calendar entry exclusively obtained by Public Eye via a freedom of information request, Mr. Kinsella was scheduled to attend a February 9, 2006 meeting between then solicitor general John Les, Mr. Nellis and other centre and hall owners.

Mr. Nellis said he couldn't remember Mr. Kinsella being at that meeting. But "he's been at some meetings. We've always looked at Patrick as a friend of the industry and as a friend of the government. And we said, 'Why not have him aware of what we're talking to government about.' We certainly didn't ask Patrick to advocate or lobby on our behalf. And, whenever Patrick has been there, he's been nothing but a quiet observer."

"There's a number of us who support this government," continued Mr. Nellis, whose companies have donated donated at least $37,898 to the Liberals since 2005. "We know Patrick does. He's a friendly person to industry and to government. So we invited him as our guest."

Mr. Nellis said other people who "may be known" to the province's elected officials have received similar invitations. And they have helped the industry "with getting what we think is the right course correction for everyone involved."

The calendar entry states Mr. Nellis and his colleagues were scheduled to talk with Mr. Les about "the absence of effective public/private sector partnerships," "continuing contract uncertainty - term and conditions" and "unrealized potential for Government and the Private Sector."

Asked about those issues, Mr. Nellis - who stressed that similar meetings took place between the industry and the previous New Democrat government - said owners have been looking to lengthen their contracts with British Columbia Lotteries Corp. and convert existing bingo halls to community gaming centres.

"There're communities throughout the province that aren't large enough to host a casino - that have bingo halls that are not functioning at the level they could," he explained. "People in some of those communities turn to Internet gaming or have to travel a long ways to a site that has gaming."

"So what we've always advocated for is if it's a legalized activity - gaming in the province - maybe there should be venues in those other cities that can satisfy the customer demand, which then fulfills the market that is under-served. You can't have a person - for example - drive from Castlegar to Penticton to play the casino."

The meeting was held at The Vancouver Club. In addition to Messrs. Kinsella and Nellis, scheduled attendees included former Playtime director Ken Mahon, Bingo Bingo Esquimalt owner Mark Eraut, Signal Point Community Gaming Centre owner Merle Gardner and Boardwalk Gaming and Entertainment Inc. consultant Peter McMahon.

Under the Lobbyists Registration Act, consultant lobbyists are required to sign-up if they, for pay, communicate with an office holder in an attempt to influence government. As a result, Mr. Kinsella wouldn't have needed to register for his work with the industry.

In November 2007, the provincial government quietly announced it was considering distributing debit cards to its income assistance clients. The government would then use those cards to make welfare payments to those clients. But that initiative seems to have gotten off-schedule. At that time that announcement was made, the government anticipated it would be launching a bid process in about three months to find a financial institution to run the debit card program. However, it wasn't until yesterday that that request for proposal was issued, with a closing date set for December 15.

Earlier, we reported federal Liberal leadership candidate Bob Rae supports keeping the party's convention in Vancouver. And, in an interview with Public Eye, Rae campaign spokesperson Sheila Gervais confirmed that position, saying, "Our view is that what's in the best interests of the party and Canadians, frankly, trumps candidates. And, in our view, the party should be encouraging as open and as accessible and as robust a race as they can. The party has to appeal to broad sections of the public that have not been favourable towards them through the last period. And Vancouver should be an area that the Liberal Party should be interested in."

Moreover, said Ms. Gervais, "In order to make the race accessible, we need to consider timing very careful. And, constitutionally and otherwise, the timing of the convention in Vancouver" - May 1 to 4 - "sits very nicely indeed. And that certainly is in the best interests of the party to have a race that is not too lengthy but lengthy enough to allow for significant candidate recruitment."

The Liberal national executive will make a decision on which city will host the party's leadership convention this weekend.

Earlier, we reported Deloitte Touche LLP's contract to draft the Campbell administration's home and community care strategic document had been extended till October 31. But, even though the company's contract has ended, the health services ministry confirms that document won't be ready until March 2009 - as stated in the government's response to the auditor general's recent report on care services. The reason: "the ministry is still working with stakeholders on the documents."

Yesterday, Canwest News Service's Juliet O'Neill reported federal Liberal officials are "still researching their options" on which city should host the party's leadership convention, having "invited proposals from other cities." But Mayor Sam Sullivan is pressing the party to keep that convention - which will inject at least $10 million into the economy - in Vancouver, as planned. And our understanding is that Liberal leadership candidate Bob Rae is supportive of that position. Although we're told some of his competitors may prefer a different host city.

The provincial Liberals claim their open platform - which will allow British Columbians to "help shape" the party's election platform via the Internet - is, to the best of their knowledge, the first such process "ever launched by a political party in Canada." But that's simply not the case. In November 2003, the federal Greens launched a living platform project, that would allow both party members and non-party members to contribute to the creation of a binding election platform. "It's sort of an on-line blackboard," then party platform and research head Michael Pilling told The Globe and Mail's Roy MacGregor in 2004. "Everybody gets a piece of chalk. Everybody has an eraser." Unfortunately for Mr. Pilling, though, the biggest eraser belonged to party leadership. He was fired on February 10, 2005. And the project became embroiled in controversy.

Earlier, we reported on the departure of top tourism, culture and the arts bureaucrat Bruce Okabe - who left the bureaucracy on August 31. That was just 23 days after the Campbell administration announced the maximum payable salary for deputy ministers was increasing 34.93 percent to $299,215. According to the ministry, Mr. Okabe resigned to "pursue other opportunities." Specifically, on October 6, it was announced the former Telus Corp. business solutions vice-president has joined InterVISTAS Consulting Inc. as a senior vice-president with the firm's business strategy group. According to the news release announcing that appointment, Mr. Okabe will "take a lead role in delivering tourism, strategic planning, business planning and climate change services to a diverse range of clients."

As part of the provincial Liberal's open platform initiative, British Columbians have been invited to "submit videos, photos, art and music that will showcase the beauty, strength and diversity of our province and its people and culture." According to the party, those submissions "will be selected for use on this website and profiled in various way throughout the upcoming provincial election campaign." But this isn't the first time the Premier Gordon Campbell has attempted to get British Columbians to do free audio-visual work for him.

As part of the Campbell administration 2004 throne speech, the government announced it would be inviting "all British Columbians to help picture the true spirit of their province and its people for all the world to see in film, photos, music, art, poetry and literature."

"Under this new 'Picture BC' initiative, British Columbians' images, words and artwork will be featured on the government web site, showcased in printed publications and profiled in countless ways from now through 2010."

"Picture BC will build a library of resources that will be available to participating partners for use in international marketing campaigns, tourism promotions and investment missions."

Tomorrow morning, on Public Eye Radio, Victoria mayoral candidate Steve Filipovic talks about his bid for the Garden City's top political job. And our rabble-rousing panel - Don Anderson, Eleanor Gregory, Bob Russell and Allan Warnke - will debate the week that was in provincial and federal politics. You can listen to Public Eye Radio outside of Victoria by logging into CFAX 1070 between 8:30 and 10:00. If you have a question for one of our guests, you can email us or leave a comment below.