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BC agrees Kinder Morgan pipeline expansion meets 5 prerequisites

British Columbia Premier Christy Clark

British Columbia Premier Christy Clark

Photo by British Columbia Government

12th January 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – British Columbia has issued an environment assessment certificate for Kinder Morgan’s Trans Mountain Expansion project, adding its own 37 specific conditions.

These conditions are based on the National Energy Board's (NEB's) project report on May 19, 2016, recommending to the federal government that the project be approved, subject to 157 conditions, the consideration of additional information and Aboriginal consultation to date.

British Columbia's position has been consistent over the past four-and-a-half years, entailing that any heavy oil project must meet the province’s five conditions, including receipt of regulatory approvals; world-leading marine-spill response; world-leading land-spill response; indigenous participation; and a fair share of benefits for British Columbia.

“The five conditions is an articulation of the way we do business in British Columbia. We set the bar high to stand up for British Columbia to protect our coast and environment, ensure opportunities for First Nations' participation and secure a fair share of economic benefits for all British Columbians,” Liberal Premier Christy Clark has said.

The federal government, under Prime Minister Justin Trudeau, on November 29 approved Kinder Morgan’s C$6.8-billion Trans Mountain Expansion project, which will match the existing 1953-built Trans Mountain pipeline system between Edmonton, Alberta, and Burnaby, British Columbia. This is expected to triple Canada’s access to new crude markets, as the country looks to diversify oil exports away from the US, its largest customer.

British Columbia’s fifth condition outlining a fair share of fiscal and economic benefits has resulted in an agreement that will see British Columbians first in line for the jobs that comprise the more than 75 000 person-years of employment; a boost the province's gross domestic product by C$19.1-billion during construction and operations over 20 years; and the generation of more than $2.2-billion in tax revenue for provincial and local governments.

The provincial government has also achieved an "unprecedented agreement" with Kinder Morgan to receive a significant investment worth up to C$1-billion. The company will pay the province between C$25-million and C$50-million a year for 20 years – the first time in the province that a company will share revenue from a large industrial project directly with government.

The revenues will be directed to a new 'clean communities' programme through which communities can apply yearly for grants to invest in protecting and enhancing British Columbia's environment.

Alberta Premier Rachel Notley welcomed the provincial project approval on Wednesday, saying the project offers a historic opportunity. “Alberta, we are closer than ever to breaking our land lock and fixing a problem that has dogged our province for decades. Let’s keep moving forward,” she said during a press conference.

British Columbia’s environmental approval of the Kinder Morgan project happened on the same day that Hollywood actress and environmentalist Jane Fonda held a news conference hosted by Greenpeace Canada, in Edmonton, against the oil sands industry.

Fonda joined several indigenous leaders to express their opposition to the federal government’s approval of the Line 3 and Trans Mountain expansion projects, while it also looks to be taking a favourable stance on the proposed Keystone XL and Energy East projects.

NEW APPLICATIONS
The NEB said in a separate news release on Wednesday that, in future, it would require more emergency response information from new pipeline applicants. This was a significant change that addresses increased requests for company emergency response information from the board and other hearing participants, during recent application and hearing processes, the NEB said.

“Canadians have told us that they want more information about a company’s emergency response information at the earliest stages of a proposed project. These changes will foster increased understanding among stakeholders, hearing participants, NEB experts, and panel members regarding a company’s plans to respond should an emergency occur,” stated NEB chairperson and CEO Peter Watson.

The board said it expected to amend the filing manual after considering the public input received during a 60-day online public comment period that was launched on Wednesday. The NEB filing manual provides direction to companies on the extent of information required during the application process.

The proposed changes will require detailed company consultation regarding emergency management; increased technical information regarding emergency response impact assessment and mitigation; project-specific emergency preparedness and response detail; project-specific safety and environmental protection measures; and revisions that reflect the NEB’s requirement for company emergency procedures manuals to be posted online.

Meanwhile, the NEB on Monday assigned a three-member hearing panel to undertake the review of the Energy East and Eastern Mainline projects. The panel will comprise presiding member Don Ferguson, along with Carole Malo and Marc Paquin.

The proposed Energy East project aims to build a 4 500-km-pipeline to carry 1.1-million barrels a day of crude oil from Alberta and Saskatchewan to refineries in Eastern Canada and a marine terminal in New Brunswick.

The Eastern Mainline project is being proposed to build about 279 km of new gas pipeline and related components in four sections, beginning near Markham, Ontario, and finishing near Brouseville, Ontario. Eastern Mainline will enable TransCanada to continue to meet its commercial obligations should the Energy East project be approved.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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