Ottawa Approves Kinder Morgan Pipeline Through Fraser Valley & Enbridge Line 3 – Northern Gateway Rejected

Fraser Valley – Two out of three petroleum pipeline projects have been approved by Ottawa.

The Federal Liberals voted in favour of Enbridge Line 3 and Kinder Morgan, but Northern Gateway has been rejected.

All three projects have been in the critics cross hairs, which seemed to fly in the face of what the Liberals promised (somewhat) in their Federal Election platform of last year, the they would be environmentally freindly. Prime Minister Trudeau has stated that the public interest and what is best for the country as a while would make for difficult decisions.

The decision will creates more howls of protest in the coming weeks and months.

BC Minister of Environment Mary Polak has issued the following statement on the federal decision regarding pipeline projects:

“Today, the federal government approved the Kinder Morgan Transmountain Project, while rejecting the Northern Gateway proposal.

“In anticipation of a federal decision, our government has been consistent in fighting for British Columbia with the five conditions for any new or expanded heavy-oil pipeline. That remains the case today, and we will work to ensure each of our conditions are met.

“Because we have taken that clear and principled approach to stand up for our province, we have seen the proponent and the federal government take actions, including Ottawa’s recent Ocean Protection Plan to address world-leading marine spill prevention and response.

“I understand the BC Environmental Assessment Office anticipates that it will soon complete B.C.’s environmental assessment, which has been underway for seven months. I have every confidence in B.C.’s environmental assessment process.”

B.C.’s five conditions are:

  • Successful completion of the environmental review process;
  • World-leading marine 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 and shipments;
  • World-leading practices for land oil spill prevention, response and recovery systems to manage and mitigate the risks and costs of heavy oil pipelines;
  • Legal requirements regarding Aboriginal and treaty rights are addressed, and First Nations are provided with the opportunities, information and resources necessary to participate in and benefit from a heavy-oil project; and
  • British Columbia receives a fair share of the fiscal and economic benefits of a proposed heavy oil project that reflects the level, degree and nature of the risk borne by the province, the environment and taxpayers.

Kinder Morgan

The $6.8 billion-dollar Kinder Morgan expansion will expand the existing 1,150-kilometre pipeline between Alberta and Burnaby.

The proposal was first put forward in 2013.

Earlier this year, the NEB (National Energy Board) recommended the government approve the proposed expansion subject to 157 conditions. The BC Liberals and Premier Christy Clark as well as Vancouver Mayor Gregor Robertson were concerned about many of the safety issues in the report citing their own per-requisites were not met. This pipeline would roll through the Fraser Valley.

This also includes concerns about the possibility of a spill that could contaminate the Chilliwack Aquifer in the event of a spill.

This project will see 980 kilometres of new pipeline, 12 new pump stations, and 20 new tanks.

Green Party Leader Elizabeth May has already gone on record stating she’s ready to engage in civil unrest and go to jail fighting the Kinder Morgan Trans Mountain pipeline expansion.

“If there are blockades as construction begins, I’m more than prepared to be there to block construction and be arrested and go to jail. This is not an issue where you compromise.”

From FVN July 21, 2016 and the Kinder Morgan Public Hearings at the Coast Chilliwack Hotel:

How will Fraser Valley businesses benefit from Trans Mountain Expansion Project?

There will be an estimated $625 million in construction spending in the Fraser Valley. In addition to significant capital spending, procurement and contracting opportunities, construction activity will bring $58.6 million in workforce spending in Fraser Valley communities by local and non-local workers. Workforce spending includes accommodation, food, recreation, personal items, transportation, clothing and other purchases.

Hope

  • $308 million in construction spending
  • $28.8 million in local spending by local and non-local workers during TMEP construction phase
  • Non-local worker spending includes:
    • $11.1 million on accommodation
    • $5.6 million on food
    • $1.5 million on recreation
    • $1.4 million on personal items and services
    • $1 million on fuel

Chilliwack

  • $124 million in construction spending
  • $11.7 million in local spending by local and non-local workers
  • Non-local worker spending includes:
    • $4.4 million on accommodation
    • $2.2 million on food
    • $608,000 on recreation
    • $557,000 on personal items and services
    • $396,000 on fuel

Abbotsford

  • $193 million in construction spending
  • $18.1 million in local spending by local and non-local workers
  • Non local worker spending includes:
    • $6.8 million on accommodation
    • $3.4 million on food
    • $946,000 on recreation
    • $867,000 on personal items and services
    • $617,000 on fuel

Township of Langley

The Township is one of five Metro Vancouver municipalities sharing direct benefits from TMEP. Those benefits include:

  • $1.15 billion in construction spending in Metro Vancouver
  • $158.7 million in local spending by local and non-local workers during TMEP construction phase in Metro Vancouver
  • 1,204 jobs (calculated in worker-months) during peak TMEP construction phase in Metro Vancouver

NOTE: Construction spending and worker spending numbers are sourced from the Facilities Application for the Trans Mountain Expansion Project, submitted to the National Energy Board in December 2013, and are subject to change as the Project progresses.  

What direct local tax benefits does the Project generate?

  • $1.27 million in annual local government tax payments to Hope, including current and forecast additional taxes as a result of the expansion
  • $1.6 million to Chilliwack
  • $3.36 million to Abbotsford, which is the second-largest beneficiary among municipalities along the Trans Mountain Pipeline right-of-way
  • $2.3 million to Fraser Valley Regional District
  • $942,000 to the Township of Langley

How will Fraser Valley communities benefit?

In addition to broader national and provincial revenue and job creation benefits, municipalities and regional districts will see increased annual tax payments and a Community Benefit Agreement (CBA) program supporting community projects. In the Fraser Valley there will be:

  • $500,000 to Hope for improvements to Hope community spaces
  • $1.3 million to Abbotsford for revitalization of the city-owned Ledgeview Golf Course clubhouse

How will water sources including drinking water and fish habitat be protected?

Trans Mountain conducted studies along the proposed pipeline corridor to identify all watercourse crossings.

Sensitivity to fish and fish habitat is a key consideration for selecting the crossing method to be deployed at each pipeline watercourse crossing. Where feasible, deviations from the existing right-of-way are proposed to reduce the number of watercourse crossings.

To protect the Fraser Valley’s aquifers, heavier walled pipe and additional valves are being added to the proposed pipeline.

When the Project is complete, the field research results will be available for comparison to results from post-construction monitoring. Post-construction results will also be compared to Health Canada’s Guidelines for Canadian Drinking Water Quality.

How will you ensure First Nations’ interests are respected?

Trans Mountain is committed to working with Aboriginal communities and groups in a spirit of co-operation and shared responsibility and to building and sustaining effective relationships based on mutual respect and trust to achieve respective business and community objectives.

Trans Mountain works collaboratively with Aboriginal communities that might have an interest in the Project or have Aboriginal interests potentially affected by the Project.

To date, 40 Aboriginal groups located along the pipeline and marine corridor in Alberta and British Columbia have provided written letters of support for the Project. BC Interior, Fraser Valley and Coastal First Nations are among those with final agreements. Métis Nation British Columbia, which represents Métis communities along the BC portion of the Trans Mountain right-of-way, has stated that it expects positive effects from the Project.

This was the response from Kinder Morgan:

Kinder Morgan Canada today announced that the Government of Canada has granted approval for the Trans Mountain Expansion Project in a landmark decision that affirms both the strength of the Project and the rigor of the review process it has undergone.
“This is a defining moment for our Project and Canada’s energy industry,” said Ian Anderson, President, Kinder Morgan Canada. “This decision follows many years of engagement and the presentation of the very best scientific, technical and economic information. We are excited to move forward and get this Project built, for the benefit of our customers, communities and all Canadians.”
The Trans Mountain Expansion Project is an opportunity for Canada to access world markets for its resources by building on an existing pipeline system. The $6.8 billion CAD expansion will result in direct and lasting benefits, including $46.7 billion in taxes and royalties for governments, more than 800,000 person years of employment over the life of the Project and enabling producers to capture an additional $73.5 billion in revenues.
This final federal approval triggers a number of next steps. Trans Mountain will continue to seek all necessary permits, and is planning to begin construction in September 2017, with an in-service date for the twinned pipeline expected in late 2019. Other next steps will include a final cost estimate review with shippers committed to the Project and a final investment decision by the Kinder Morgan Board of Directors.
“This Project has evolved substantially as a result of the scrutiny it has undergone and the input received from communities, Indigenous and Metis groups and individuals. No voice has gone unheard, and we thank everyone who has helped make this Project better,” added Anderson.
“We have approval from the NEB with 157 Conditions that we’re committed to meeting. We’ve seen all levels of government coming together to address issues raised over the course of our review, including newly announced enhancements to Canada’s marine safety regime, provincial and federal climate change strategies and deeper consultations with Aboriginal communities. In today’s announcement the Federal Government commits to implementing the Recovery Plan for the Southern Resident Killer Whale and the establishment and funding for an Indigenous advisory and monitoring committee. Taken together, we’re confident we will build and operate this Project in a way that respects the values and priorities of Canadians.”
You can learn more about the Trans Mountain Expansion Project here.
See how industry and community groups are responding to the announcement here.

Enbridge Line 3

The proposed Line 3 would replace a decades-old line that runs between Hardisty, Alberta to Superior Wisconsin )again with many conditions for safety).

The $7.5 billion-dollar project would replace a total of 1,660 km of pipeline.

Once the pipeline is replaced, it will have the capacity to carry 760,000 barrels a day – double of what it currently carries.

Northern Gateway

The Northern Gateway’s pipeline route would have run approximately 1,177 km from Bruderheim, Alberta, across B.C. to the port of Kitimat. Many environmentalists and First Nations opposed this project.

 

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