Termination of Crown Lease V930973: Implications for Union Bay and Baynes Sound
The recent termination of Crown water lease V930973 represents a pivotal development for the community of Union Bay and the ecologically sensitive region of Baynes Sound. Originally issued in 1978 for log handling purposes, the lease was transferred in 2019 to The Bayer Group, new owners of Union Bay Industries. On October 15, 2021, the lease was amended to permit the storage of ‘end of life’ vessels and transportation across the foreshore destined for dismantling at the Deep Water Recovery (DWR) facility in Union Bay.
This amendment prompted significant concern from local residents, Indigenous communities, and environmental organizations. The use of Crown land for vessel storage and shipbreaking activities was seen as incompatible with the ecological significance of Baynes Sound and the public interest.
Baynes Sound holds multiple international conservation designations: it is recognized as an Ecologically and Biologically Significant Area (EBSA), an Important Bird Area (IBA), and a Key Biodiversity Area (KBA). It supports diverse marine life, including key herring populations, and is home to a thriving shellfish industry vital to the local economy. It is place of culture significance to K’ómoks First Nation. These designations underscore its global ecological value and sensitivity to environmental harm.
The operation of a shipbreaking facility in such an ecologically rich region raised serious concerns about the potential for toxic contamination—including asbestos, heavy metals, and hydrocarbons—leaching into marine ecosystems, posing risks to both biodiversity and human health.
These concerns were proven to be warranted. Following many months of water sampling, a Pollution Abatement Order was issued, and after repeated compliance issues, the Ministry of Water, Land and Resource Stewardship, in consultation with the Ministry of Environment and Parks, made the decision to terminate Crown lease V930973. According to the Ministry of Environment’s compliance records, DWR had been issued 20 warnings and advisories for regulatory non-compliance, reflecting a persistent failure to meet environmental standards.
The Province stated:
“Deep Water Recovery (DWR) has not demonstrated the level of regulatory compliance, operational responsibility, or environmental stewardship required to justify entrusting them with the use of Crown land to enable management and dismantling of end-of-life vessels.
Given DWR’s defaults, the Province has determined and proceeded with the cancellation of DWR’s lease to protect the public interest.”
With the lease now cancelled, DWR can no longer use Crown land (water and foreshore) for vessel storage or transportation to the uplands. However, the company continues to operate on adjacent private upland property. The Comox Valley Regional District (CVRD) has filed an injunction in the BC Supreme Court to permanently prohibit unregulated shipbreaking activities at the Union Bay (upland) site, indicating that it is against the bylaws.
The Concerned Citizens of Baynes Sound (CCOBS) strongly supports the Ministries’ termination of the crown water lease as a necessary step in protecting the region’s ecological integrity. However, CCOBS emphasizes the need for a broader provincial and national response. Unregulated shipbreaking remains a threat along British Columbia’s coastline. As CCOBS has stated:
“We cannot allow this issue to be relocated to another coastal community. Canada/BC must adopt international shipbreaking regulations.”
CCOBS wishes to acknowledge the invaluable support of the Association of Denman Island Marine Stewards (ADIMS), the K’ómoks First Nation, Qualicum First Nation, and the Tla’amin Nation who have stewarded the land since time immemorial. We want to thank international organizations like the NGO Shipbreaking Platform and local environmental advocates whose persistent efforts were essential to advancing this outcome.
The work of environmental protection is far from over. We invite you to stand with us in protecting Baynes Sound and join CCOBS. Help secure a sustainable future for our coastal ecosystems.
➡️ Visit https://ccobs.wordpress.com/ to learn more and get involved.
“The Islands Grapevine began coverage of Deep Water Recovery’s Shipbreaking operation in issue # 1581, Apr.27th 2023. While the successful resistance to their toxic malpractices is a very pleasing step, TIG wishes to remind all of our allies that the final victory has yet to be achieved. Respect to Concerned Citizens of Baynes Sound, ADIMS on Denman Island, and K’omoks and Qualicum First Nations.”
CVRD Area ‘A’ Director, Daniel Arbour:
At the CVRD, we will continue our litigation against DWR on what we consider to be violations of our local government bylaws. I am hopeful we will prevail once we finally get to court.
Provincial MLA for Mid Island-Pacific Rim, Josie Osborne:
“This is a significant moment not just for Union Bay residents, but for environmental advocates and Indigenous leaders across Vancouver Island who have long raised concerns about the impact of this practice on the Baynes Sound marine ecosystem. Since 2021, it’s been a consistent issue brought to my attention and raised by me and my MLA office with Ministerial colleagues. Like so many who live here, I care deeply about our coastline and also understand the importance of responsible industry for local jobs. I’m grateful for the many conversations on this issue over the past four years and look forward to continuing the dialogue with all levels of government about coordinated and robust regulatory oversight of the much-needed ship recycling industry.”
