B.C. pumped about using ‘fair share’ pipeline money

British Columbia will create an environmental fund with money it expects to receive for the pipeline

VICTORIA — Premier Christy Clark says British Columbia will create an environmental fund with money that it expects to receive as part of a deal to support Kinder Morgan’s pipeline expansion project.

Clark said Thursday one of B.C.’s conditions for her government’s acceptance of the $6.8 billion Trans Mountain project involves negotiating a fair share agreement with the energy company that reflects the risks associated with an oil pipeline and increased marine tanker traffic.

B.C.’s five conditions for government support for oil pipeline projects include world-leading marine and land oil spill response and prevention, First Nations participation, a fair share of economic benefits and successful environmental reviews.

“If, in an agreement with Kinder Morgan, there is a direct economic benefit or a piece of the profits for B.C. we will devote all of that to areas of environmental protection,” Clark said at a news conference following a speech to the B.C. Road Builders Association.

“All of the money, I think, needs to go back into making sure that we mitigate the risk that British Columbians are taking with our land base and on the marine side by allowing heavy oil to be shipped through our province,” she said.

Clark said she wanted fair share talks with Kinder Morgan to start soon.

Kinder Morgan President Ian Anderson was unavailable for comment on Thursday, but said Wednesday in a conference call that progress is being made on every condition, including condition five which calls for B.C. to receive a fair share of the fiscal and economic benefits from a pipeline project.

A B.C. government official, who spoke on condition of anonymity, said the province has a general sense of the amount of money it expects to receive as its share for the risk the province will bear from the pipeline and an increase in tanker traffic on the West Coast.

The official did not suggest the amount of money the province is eyeing, but said negotiations will determine if the province receives a one-time payment or payments by instalment.

The talks will begin in earnest if the project receives approval in an ongoing B.C. environmental assessment review, the official said. The results of the review are expected within weeks.

Dirk Lever, head of energy infrastructure research at AltaCorp Capital, said it would not be out of the ordinary to see such an agreement take the form of a pipeline toll to move oil across the province.

“I think this happens all the time, it’s just called different things,” he said. “It’s called rent, it’s called easement payments. Is it out of the question? No, it would not be.”

Lever speculated the incoming United States government could end up seeking a similar toll or rent charge if the Keystone XL pipeline from Alberta to Texas is resurrected.

Prime Minister Justin Trudeau announced the Kinder Morgan pipeline approval Tuesday, saying the project is in the national interest. The pipeline expansion comes with 157 conditions before it’s approved.

The project would triple the capacity of the Trans Mountain pipeline, from 300,000 to 890,000 barrels a day, and add 980 kilometres of new pipe along the route from near Edmonton to Burnaby, B.C.

It would also increase the number of tankers leaving Vancouver-area waters from five to 34 per month, prompting fierce opposition from local mayors, First Nations and environmental groups who say any risk of a diluted-bitumen spill is unacceptable.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Asymptomatic testing will now be available for "priority groups" who are most likely to spread the COVID-19 virus to vulnerable or at-risk populations. File photo by THE CANADIAN PRESS
Marcus Golczyk, with Taco Monster, hands food to a customer during Food Truck Drive and Dash in the Westerner Park parking lot in Red Deer Friday afternoon. The drive-thru event will run every Thursday from 4-7 p.m. and Friday from 11 a.m. to 2 p.m. through June. Photo by SEAN MCINTOSH/Advocate staff
Food Truck Fridays, Food Truck Drive and Dash return in Red Deer

Red Deerians are able to take in a drive-thru food truck experience… Continue reading

Don and Gloria Moore, of Red Deer, are set to celebrate their 70th anniversary later this month. (Contributed photo)
Red Deer couple to celebrate 70th anniversary

Red Deer couple Don and Gloria Moore are set to celebrate their… Continue reading

Chris Scott, owner of The Whistle Stop Cafe, was put in handcuffs after an anti-restriction protest Saturday in the parking lot of the business. (Screenshot via The Whistle Stop Facebook page)
UPDATE: Central Alberta cafe owner arrested after anti-restriction protest

The owner of a central Alberta cafe, which was the site of… Continue reading

Alberta has 1,910 active cases of COVID-19 as of Wednesday. Red Deer is reporting five active cases, with 108 recovered. (File photo)
Red Deer now has 911 active COVID-19 cases

Central zone has 2,917 active cases

FILE - A firefighter wears a mask as he drives his truck. THE CANADIAN PRESS/Jonathan Hayward, File
VIDEO: Flames rip through Edmonton-area seniors complex, but no fatalities

ST. ALBERT, Alta. — Fire has destroyed part of a retirement complex… Continue reading

Quebec Premier Francois Legault chairs a premiers virtual news conference as premiers John Horgan, B.C., Jason Kenney, Alberta, and Scott Moe, Saskatchewan, are seen onscreen, Thursday, March 4, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Several provinces bring in new restrictions as high COVID-19 case numbers persist

Several provinces are gearing up to tighten public health measures once again… Continue reading

Members of the RCAF take part in a Royal Canadian Air Force change of command ceremony in Ottawa on Friday, May 4, 2018. The Royal Canadian Air Force is hoping Canada will open its doors to military pilots from other countries as it seeks to address a longstanding shortage of experienced aviators. THE CANADIAN PRESS/ Patrick Doyle
RCAF turns to foreign pilots to help with shortage as commercial aviators stay away

OTTAWA — The Royal Canadian Air Force is hoping Canada will open… Continue reading

An arrivals and departures information screen is seen at the Halifax Stanfield International Airport in Halifax on Thursday, Jan. 4, 2018. The chief executive of Atlantic Canada's largest airport is hoping for COVID-19 testing for arriving passengers "sooner rather than later," as an added measure to combat the province's third wave of the virus. THE CANADIAN PRESS/Andrew Vaughan
Halifax airport CEO hopes for more on-site COVID testing ‘sooner rather than later’

HALIFAX — The chief executive of Atlantic Canada’s largest airport is hoping… Continue reading

Shoppers wear mask as they shop at a nursery & garden shop on Mother's Day weekend during COVID-19 pandemic in Wilmette, Ill., Saturday, May 8, 2021. (AP Photo/Nam Y. Huh)
Tearful reunions mark second Mother’s Day under pandemic

Last Mother’s Day, they celebrated with bacon and eggs over FaceTime. This… Continue reading

Arizona Coyotes head coach Rick Tocchet, standing, watches the game during the second period of an NHL hockey game Wednesday, April 14, 2021, in St. Paul, Minn. The Wild won 5-2. (AP Photo/Craig Lassig)
Tocchet won’t return as coach of Coyotes after 4 seasons

GLENDALE, Ariz. — The Arizona Coyotes and coach Rick Tocchet have mutually… Continue reading

Columbus Blue Jackets head coach John Tortorella shouts at an official after a fight between Columbus Blue Jackets' s Gavin Bayreuther and Florida Panthers' Sam Bennett during the second period of an NHL hockey game, Monday, April 19, 2021, in Sunrise, Fla. (AP Photo/Lynne Sladky)
Tortorella out after 6 years as Columbus Blue Jackets coach

COLUMBUS, Ohio — John Tortorella is out as coach of the Columbus… Continue reading

A caribou grazes on Baffin Island in a 2008 file photo. A last-ditch attempt to save some of Canada's vanishing caribou herds is a step closer after a scientific review panel's approval of a plan to permanently pen some animals and breed them to repopulate other herds. THE CANADIAN PRESS/AP-Kike Calvo via AP Images
Parks Canada captive caribou breeding proposal gets OK from scientific review panel

JASPER, Alta. — A last-ditch attempt to save some of Canada’s vanishing… Continue reading

The smouldering remains of houses in Slave Lake, Alta., are seen in a May 16, 2011, file photo. The wildfire that is devastating large swaths of the northern Alberta city of Fort McMurray comes just five years after another blaze destroyed 400 buildings and left 2,000 people homeless in Slave Lake, Alberta. THE CANADIAN PRESS/Ian Jackson
Ten years later: Five things to know about the Slave Lake wildfire

A wildfire burned about one-third of Slave Lake in northern Alberta in… Continue reading

Most Read