Western Canada's oil supply is 365,000 barrels above pipeline capacity, according to new NEB report
Enbridge is getting a $14.7-million refund on fees it paid Canada's federal energy regulator for a pipeline it won't build.
The Northern Gateway pipeline was supposed to connect Alberta's oilpatch to a port in Kitimat, B.C., but the plan started to come apart when the federal Liberals banned tankers carrying large amounts of crude oil from British Columbia's north coast.
Without tankers to serve the port, there would be no point constructing more than 1,100 kilometres of pipeline to send Alberta bitumen to Kitimat.
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Liberals approve Trans Mountain pipeline, reject Northern Gateway plan
With lesser-known Enbridge Line 3 pipeline replacement also approved, one environmental advocate says there is no way Canada can hold up the Paris Agreement
Prime Minister Justin Trudeau says the newly approved Trans Mountain and Line 3 pipeline expansions are "safe, responsible" projects. The federal government also announced Tuesday it was rejecting the Northern Gateway pipeline.(THE CANADIAN PRESS ) (video here)
By ALEX BOUTILIER , BRUCE CAMPION-SMITH | Tues., Nov. 29, 2016
OTTAWA—The Liberal government has approved two major pipeline projects, including a controversial plan to transport Alberta oil to British Columbia’s coast, setting up a showdown between Ottawa and local political and First Nations leaders.
Prime Minister Justin Trudeau announced late Tuesday afternoon his government has approved the Kinder Morgan Trans Mountain pipeline expansion and Enbridge’s Line 3 replacement pipeline.
The $6.8-billion Trans Mountain project would add 980 kilometres of new pipeline between Edmonton, Alta. and Burnaby, B.C. Importantly, it would open up a route to the Pacific for Alberta’s oilsands.
But it has faced strong opposition in British Columbia, including from First Nations communities, Vancouver Mayor Gregor Robertson, and local Liberal MPs.
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Trudeau acknowledged there are bitterly held positions on the pipeline. But the prime minister personally pledged that the pipeline is “safe” for B.C.
“To them, and to all Canadians, I want to say this: if I thought this project was unsafe for the B.C. coast, I would reject it,” Trudeau said at a press conference in Ottawa, flanked by several of his cabinet ministers.
Protesters against the proposed Kinder Morgan pipeline gathered outside Prime Minister Justin Trudeau's office in Ottawa on November 21. (FRED CHARTRAND / THE CANADIAN PRESS)
“This is a decision based on rigorous debate, on science, and on evidence. We have not been, and will not be, swayed by political arguments . . . . We have made this decision because we are convinced it is safe for B.C., and it is the right one for Canada.”
During the announcement, Trudeau repeatedly pointed to recent steps the Liberals have announced to protect the environment — including committing to wean Canada off coal by 2030 and a five-year, $1.5-billion coastal protection initiative.
But critics have pointed to the tension between approving new oil pipelines while committing to the Paris Agreement on emission reductions.
“Today’s announcement may as well have said that Canada is pulling out of the Paris climate agreement,” Aurore Fauret, a campaign director with environmental advocacy group 350.org, said in a statement.
“By approving the Kinder Morgan and Line 3 pipelines, there is no way Canada can meet those commitments.”
Trudeau insisted there was no contradiction between Canada’s environmental agenda and the approval of these two pipelines. In fact, the prime minister suggested the Liberals’ environmental efforts give them more of a licence to get pipelines built.
“We are able to approve pipeline projects because we have significant measures in place, including a price on carbon pollution, a world class oceans protection plan, because we’re phasing out coal, because we’re demonstrating real climate leadership,” Trudeau said.
“Those two things go together.”
The Liberals also approved Line 3, a replacement and expansion of Enbridge’s 1960’s-era pipeline from Alberta to Wisconsin. The $7.5 billion project, which faces local opposition but has garnered little national attention, is expected to increase oil exports from 390,000 barrels per day to 760,000.
Finally, the Liberals rejected Enbridge’s controversial Northern Gateway proposal, which would have transported Alberta oil through the Great Bear Rainforest to Kitimat, B.C. The move was widely expected, with Trudeau saying for over a year that the rainforest is no place for an oil pipeline.
Conservative interim leader Rona Ambrose criticized that decision, a move she said would cost 4,000 jobs. And Ambrose said it was a questionable decision because of the uncertainty that still swirls around the Kinder Morgan project, which she suggested “will never get built.”
“There was no reason why we should have taken (Northern Gateway) off the table,” she told reporters.
NDP Leader Thomas Mulcair said Trudeau “betrayed” the trust of B.C. residents on Kinder Morgan, after promising a more stringent review process than the previous Conservative government.
“He doesn’t have social licence for Kinder Morgan. Heck, he doesn’t even have a learner’s permit,” Mulcair said.
“It’s a broken promise that the people of British Columbia are going to hold him to account for . . . . He got a lot of votes in British Columbia because of that promise.”
Another New Democrat, Alberta Premier Rachel Notley, had a different take. Notley cheered the Liberals’ decision, calling it a chance for Alberta to “break (their) landlock.”
“Without looking at one particular line or one particular company, what we said is we need to get our product to tidewater so that we can get to new markets,” Notley told reporters outside the House of Commons, after a meeting with Trudeau.
“That’s what’s happened in today’s announcement so that is good news for Alberta.”
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$7.9B project would carry diluted bitumen from Alberta's oilsands to Kitimat, B.C.
The federal cabinet has delivered its decision on the Enbridge-backed Northern Gateway pipeline after years of delays and false starts. But it will be days before the public knows the fate of the controversial project.
The National Energy Board and the former Harper government signed off on the $7.9-billion project, and imposed 209 conditions. But the Federal Court overturned those approvals in June after it found Ottawa had not adequately consulted Indigenous people along the project's 1,177-kilometre route.
Natural Resources Minister Jim Carr said in September the government will not appeal the court's ruling, meaning cabinet now has three options on the table: issue an extension and launch further consultations with Indigenous people, approve the project in defiance of the Federal Court, or reject the project outright.
That decision has been made and was signed by the Governor General Friday, according to Raymond Rivet, director for corporate and media affairs in the Privy Council Office.
"A decision has been taken on the Northern Gateway Pipeline project within statutory timelines and will soon be communicated to the NEB and made public," Rivet told CBC News Friday, adding that the decision would be communicated to the NEB in "due course."
The federal cabinet will make a decision on the Enbridge-backed Northern Gateway pipeline today, after years of delays and false starts, but it will be days before the public knows the fate of the controversial project.
It has been a monumental week for conversations around oil.
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Prime Minister Justin Trudeau may have signalled that his cabinet is prepared to sign-off on a massive natural gas pipeline project that will traverse through B.C.'s north.
"The Great Bear rainforest is no place for a crude oil pipeline and I haven't changed my opinion on that."
That was Prime Minister Justin Trudeau's specific response to a question this week about the proposed Enbridge-backed Northern Gateway pipeline through B.C.'s north.
In opposition, his comments about pipelines moving through this part of the province were less precise. Trudeau did not include the words "crude oil" in earlier declarations, as he did twice on Tuesday.
That phrase would suggest Trudeau isn't necessarily opposed to all pipelines through the largest intact temperate rainforest in the world, just those carrying diluted bitumen from the oilsands.
Trudeau's cabinet is facing an Oct. 2 deadline to make a decision on another proposed pipeline in the sensitive region, the Pacific Northwest project natural gas pipeline.
That proposed $7-billion pipeline, which will be built, owned and run by TransCanada, will move natural gas from Fort Saint John near the Alberta border — partially through the same Great Bear rainforest as Northern Gateway — to Port Edward on the coast, to be liquefied for export to Asia.
B.C. Premier Christy Clark has a lot riding on approval of the project, which she has called "the largest private-sector investment ever in Canadian history," promising 4,500 construction jobs and 330 operational jobs. Federal support for her preferred pipeline could give her an incentive to support Kinder Morgan's expansion of the Trans Mountain crude pipeline, and allay concerns she has raised about financial benefits for B.C.
Court ruled Ottawa had not adequately consulted Indigenous peoples along project's route
Northern Gateway will not appeal a recent Federal Court of Appeal decision that overturned Ottawa's approval of the controversial pipeline project.
The court ruled in June that the federal government had not adequately consulted with Indigenous peoples who will be affected by the project, which is backed by the energy company Enbridge, and which would stretch from outside Edmonton to Kitimat, B.C.
"We believe that meaningful consultation and collaboration, and not litigation, is the best path forward for everyone involved," the pipeline's president, John Carruthers, said in a statement.
"We believe the government has a responsibility to meet their constitutional legal obligations to meaningfully consult with First Nations and Metis."
NEB suspends Northern Gateway timeline review after initial approval quashed
The former Harper government gave the go-ahead to the Northern Gateway project after a National Energy Board joint review panel gave its approval subject to 209 conditions.
But the government was supposed to meet a constitutional requirement to consult with Indigenous peoples following the NEB's approval, something the Federal Court said was not properly done.
One of the chiefs admits he received money from the oil company.
A Haida clan in British Columbia has stripped two hereditary chiefs of their titles because they supported the construction of an Enbridge pipeline that the Nation fought in court.
The two chiefs signed a letter in support of the pipeline, and one of the chiefs told VICE News he met with the company and received per diems, but he believes the issue is being blown out of proportion. The chiefs have threatened a defamation suit for "lies" they say are being spread about them.
On Saturday, in front of 500 people, clan members in Old Massett held a ceremony marked with traditional dances in which the hereditary chiefs were stripped of their leadership, and matriarchs appointed new chiefs in their place. A ceremony like this one hasn't happened since smallpox struck Haida Gwaii, an archipelago along the coast of northern BC, in the 1800s.
Tensions ran high at the potlatch when a group of five clan members crashed the ceremony in opposition, according to clan spokesperson Ernest Swanson. But three RCMP officers guarded the doors, and a group of matriarchs stood between the potlatch crashers and ceremony organizer Chief Darin Swanson to protect him.
The two former chiefs who were stripped of their leadership, Carmen Goertzen of the Yahgu 7laanas Dadens Clan and Francis Ingram of the iits'aaw Yahgu 'laanaas and jaanas Clan, didn't attend the potlatch, saying they weren't invited.
As the heads of their clans, hereditary chiefs are appointed by family matriarchs and are expected to demonstrate and uphold the morals of their families, including peacefulness and modesty. But in this case, because they went against the wishes of their families, their actions are being taken as a betrayal, according to Ernest Swanson, Darin Swanson's nephew.
"We have values and morals and we want our chiefs to be prime examples of those values and morals," he said.
Ernest Swanson said their leadership was revoked because they received money from Enbridge and signed a letter in support of the company's Northern Gateway pipeline, which the Haida Nation has long opposed because, among other reasons, the influx of tanker traffic would increase the risk of oil spills.
