Mayor Gregor Robertson says he’s appalled the federal government decided Tuesday to buy Kinder Morgan’s existing Trans Mountain pipeline system and expansion project for $4.5 billion, despite concerns of increases in climate pollution and risk of a major oil spill in local waters.
Robertson was reacting to news delivered in Ottawa by Finance Minister Bill Morneau and Natural Resources Minister Jim Carr in which Morneau repeated what Prime Minister Justin Trudeau first told Canadians in November 2016 in approving the expansion project: It’s in the national interest.
“It’s appalling that the federal government is willing to spend over $4 billion of our tax dollars to buy a Texas oil company’s pipeline that massively increases climate pollution and puts tens of thousands of jobs and our coast at risk of oil spills,” Robertson said in a statement posted on his Facebook page. “Those billions should be invested in clean renewable energy and creating many more permanent jobs with no risk to our economy or environment.”
The deal between the federal government and Kinder Morgan means the Government of Canada will use a loan guarantee to fund the resumption of the expansion project’s planning and construction work. The 987-kilometre pipeline is to run from Alberta to Burnabyand largely twin an existing pipeline built in the 1950s.
“The Trans Mountain expansion project is of vital interest to Canada and to Canadians,” said Morneau, arguing the pipeline will preserve thousands of good well-paying jobs. “Our government’s position is clear: It must be built, and it will be built.”
The minister emphasized the project will increase the shipment of oil to international markets. The addition of a new pipeline will almost triple the number of barrels of oil shipped per day from 300,000 to 890,000 and translate to a seven-fold increase in tanker traffic in and around Vancouver waters.
The mayor noted the city is still fighting to recover $550,000 in costs from the federal government’s Ship Source Oil Pollution Fund related to a minor bunker fuel spill that occurred three years ago in English Bay.
B.C. Premier John Horgan told reporters in Victoria Tuesday the federal government’s decision to buy the expansion project and related infrastructure does not reduce the risk of a diluted bitumen spill in local waters.
“I will continue to do my best to protect B.C.’s interests by ensuring our coast, our water and our land is kept pristine so that our economy can continue to grow, and I will continue to work for the people of British Columbia with the full force of my efforts within the courts and within the rule of law,” said the premier, referring to the province’s so-called reference question before the B.C. Court of Appeal.
The reference question concerns provincial autonomy, particularly the rights of British Columbia to regulate the environmental and economic impacts of heavy oils such as diluted bitumen transported through the province.
Horgan acknowledged the federal government’s ownership of the expansion project changes it from “a federally-approved project to a federally-undertaken project.” But, he added, the reference question does not point to a specific project.
“It spoke to the transportation of diluted bitumen through British Columbia by rail or by pipe,” he said. “So our reference case remains and I said as much to the prime minister [in a phone conversation] this morning, and there was no comment from him on that.”
Last week, a B.C. Supreme Court ruling dismissed the city’s petition challenging the province’s environmental assessment certificate for the pipeline expansion project. The city is reviewing the ruling and has 30 days to decide whether to appeal the decision.
The Squamish Nation also had its legal challenge dismissed by the same judge, Justice Christopher Grauer. The Squamish had argued the provincial government failed to respect the Indigenous rights of its people on a project that threatens their home, land and waters.
The Squamish still await a Federal Court of Appeal decision related to the project. That challenge, which includes five other First Nations, also relates to Indigenous rights. Reacting to Tuesday’s news about the federal government’s purchase of the pipeline, Squamish spokesperson Khelsilem said in a release that it was “a continued betrayal of promises made to us by Prime Minister Justin Trudeau.”
Added Khelsilem: “He told Canada’s Indigenous people that our rights would be respected and upheld. He has broken that promise. He promised us he would put the pipeline expansion through a brand new review. He has broken that promise, as well.”
Included in the federal government’s announcement Tuesday was that the Alberta government is expected contribute to get the project built. That contribution, which could be up to $2 billion, would act as an emergency fund and only come into play if required due to unforeseen circumstances.
Alberta Premier Rachel Notley reacted to the news on Twitter, writing: “There are those who said we could never make this happen, some hoped—are still hoping—it would fail for their own political interests. But, instead of cheering against Alberta, Canadians have come together and this project now has more certainty than it has ever had.”
She added: “When Alberta is strong, Canada is strong.”
Morneau said it is not the government’s intention to be a long-term owner of the project, and that it will work with investors to transfer the project and related assets to a new owner or owners “at the appropriate time.”
Any purchaser of the project would be covered by a federal indemnity protecting them against any financial loss “posed by politically motivated unnecessary delays,” according to details of the agreement released Tuesday.
@Howellings
