Opposition criticizes $1.5-million retention bonuses for Kinder Morgan execs

CALGARY — Opposition politicians hit the Liberal government with pointed questions Monday over news that two Kinder Morgan Canada executives will each be given $1.5-million bonuses to ensure they stay on as its Trans Mountain pipeline system is sold to the federal government.

The retention bonuses for president Ian Anderson and David Safari, the vice-president overseeing the Trans Mountain pipeline expansion, are detailed in a company regulatory filing dated Tuesday, May 29, the day the government announced its deal to buy the pipeline assets for $4.5 billion.

The government should immediately table details of the “Kinder Morgan bailout,” B.C. New Democrat MP Nathan Cullen said in the House of Commons, complaining it is paying too much.

“Adding insult to injury to this public bailout, it includes a $3-million bonus to Kinder Morgan executives,” he charged.

The company is being richly rewarded for not having to pay for its $7.4-billion Trans Mountain expansion project, added Shannon Stubbs, an Alberta Conservative MP and natural resources critic.

“Apparently, the gift of tax dollars will also pay $1.5 million bonuses each to two Kinder Morgan executives, which is good news for the rich executives, bad news for Canadian energy workers,” she said.

The deal was defended by Prime Minister Justin Trudeau and Finance Minister Bill Morneau, who reiterated the government’s position that the pipeline will create jobs while helping to alleviate steep discounts in prices for Canadian oil that amount to the annual loss of $15 billion in potential value.

The bonuses for Anderson and Safari are to be paid in equal parts in July 2019 and July 2020 and are conditional on their continued employment through each date, the filing states.

“The arrangements were reviewed and approved by the Kinder Morgan Canada board of directors and are consistent with industry practice for a project and transaction of this size,” the company said in an email Monday.

The government has said it is counting on the continued employment of key pipeline staff to ensure completion of the project to triple capacity of the pipeline from Edmonton to Burnaby, B.C.

The filing goes on to note that Kinder Morgan Canada has terminated and repaid a $5.5-billion revolving credit facility with the Royal Bank of Canada.

Ottawa is to provide loan guarantees for any money the company spends on the endeavour between now and when the pipeline’s ownership changes.

Kinder Morgan is to ask shareholders to vote on the deal before the end of July. If shareholders approve the sale, the paperwork is to be completed sometime in August or September.

Construction is expected to be finished in about two and a half years.

Just Posted

Cannabis facility proposed for Clearwater County

Cannabis production facility proposed south of Caroline would produce 30,000 kg of cannabis a year

Two Central Alberta country singers are finalists in career-launching contest

They will attend music industry ‘boot camp’ this summer

Transit changes to aid Burman University students

An additional evening trip and student bus passes to be in place by fall

WATCH: Province, Maskwacis Cree Nations sign educational agreement

Funding and support will help the First Nations develop a Cree-based curriculum

WATCH: Red Deer celebrates World Refugee Day

The Central Alberta Refugee Effort hosted multiple events around Red Deer Wednesday

New Jersey Devils forward Taylor Hall wins Hart Trophy as NHL MVP

LAS VEGAS — Taylor Hall has won the Hart Trophy as the… Continue reading

Red Deer high school student psyched for SHAD

Lindsay Thurber’s Kaden Nivens will head to Newfoundland for the annual program in July

Red Deer College team tackles lack of Indigneous inclusion in research projects

A local college research team has completed a lengthy project examining the… Continue reading

Officials make case against parents accused of child abuse

RIVERSIDE, Calif. — Prosecutors made their case Wednesday against a Southern California… Continue reading

Manitoba educational assistant sentenced to 3 1/5 years for sex with student

WINNIPEG — A former educational assistant in Winnipeg has been sentenced to… Continue reading

Conservatives can ‘win anywhere,’ Scheer says in welcoming Richard Martel

OTTAWA — Conservative Leader Andrew Scheer welcomed the newest member of his… Continue reading

Fans grieve as detectives search for XXXTentacion’s killers

DEERFIELD BEACH, Fla. — For hours, the fans came in a steady… Continue reading

Canadian steel not a national security threat on its own: US commerce secretary

OTTAWA — The U.S. commerce secretary says Canada is not a national… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month