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.

Just Posted

Former Red Deer teacher gets six-year prison sentence for child sexual exploitation

Norman Joseph Howes pleads guilty to three charges against 11-year-old

Central Alberta ranchers reeling from China’s beef ban

Disappointed beef is caught up in latest trade dispute

Red Deer Public School District doesn’t expect funding ‘doom and gloom’

Red Deer Public School administrators aren’t panicking over possible education budget cuts… Continue reading

Busts lead to four arrests, $130,000 of drugs and cash seized

Community is safer without drugs and guns on the street: Police inspector

Goalie Roberto Luongo retires after 19 NHL seasons

SUNRISE, Fla. — Florida goalie Roberto Luongo has decided to retire after… Continue reading

Europe, you’re up! Yankees top Blue Jays 8-7, head to London

Yankees 8 Blues Jays 7 NEW YORK — Buckingham Palace and Westminster… Continue reading

Sylvan Lake spending $2 million to upgrade busy intersection

The intersection at Erickson Drive and Hwy 20 will see improvements this construction season

Longtime volunteer recognized at Mayor’s Garden Party

Sue Barthel was the honorary senior recognized at the annual Mayor’s Garden… Continue reading

Maskwacis youth found dead on reserve

The remains of 16 year old Houston Omeasoo found

Duncan announces $30 million to promote safety and inclusiveness in sport

TORONTO — The federal government is investing $30 million over five years… Continue reading

Raptors president Ujiri addresses rare off-court issues during NBA title run

TORONTO — Even a championship can come with hiccups. Toronto Raptors president… Continue reading

Mouse that roared: Disney characters win local union shakeup

ORLANDO, Fla. — The mouse that roared was heard. Months after workers… Continue reading

Most Read