Thursday, September 20, 2012

Kinder Morgan Hurls Pipeline Revenue Hot Potato Back To Alberta, Federal Government

B.C. Premier Christy Clark has lain down five conditions for having any new "heavy oil" pipeline traverse provincial territory.  These are:

...successful completion of the environmental-review process; world-leading marine and land oil-spill response, prevention and recovery systems for B.C.'s coastline and ocean to manage and mitigate the risks and costs of heavy oil pipelines; addressing legal requirements regarding aboriginal and treaty rights, and providing First Nations with the opportunities, information and resources necessary to participate in and benefit from a heavy oil project; and lastly, a fair share of the fiscal and economic benefits, reflecting the level, degree and nature of the risk borne by the province, the environment and taxpayers.

Kinder Morgan, who are trying to expand their Trans Mountain line to Burnaby, have responded to the five conditions with an "OK...but":

“We’ve acknowledged the five conditions and are committed to working with the provincial government to meet them,” Toth said in an interview.


Toth said the revenue expectations “are beyond our control” but the company is committed to meeting the highest standards.


[Environment Minister Terry] Lake said Wednesday both Kinder Morgan and Enbridge have committed to meeting the B.C. Liberal government’s conditions, outside the demand for jobs and revenue “which is more to do with Canada and Alberta than the proponent.”

This is important because critics of the Clark government have typically argued that, if it wants extra revenue in exchange for allowing the pipelines to be built, it should extract them from the companies themselves (Enbridge and Kinder Morgan).  Kinder Morgan seems to be saying here that no such extra revenues shall be forthcoming from their pockets, and Terry Lake seems to be OK with that response.

Over to you, Alison Redford and Stephen Harper.

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