Enbridge, Kinder Morgan Must Give More To B.C.: Terry Lake

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ENBRIDGE KINDER MORGAN BC
The proposed $4.1-billion expansion of Kinder Morgan's Trans Mountain pipeline, which runs from Alberta to Vancouver, is expected to increase tanker traffic in Vancouver's Burrard Inlet. ALAMY | Alamy

British Columbia's demands for a greater share of revenue and better spill response from Enbridge Inc. (TSX: ENB) should the proposed Northern Gateway pipeline go ahead also applies to another pipeline project in the works.

Environment Minister Terry Lake said those two demands extend to Kinder Morgan's expansion proposal as well.

The proposed $4.1-billion expansion of Kinder Morgan's Trans Mountain pipeline, which runs from Alberta to Vancouver, is expected to increase tanker traffic in Vancouver's Burrard Inlet.

Lake said not only does the province seek an unspecified "fair share" of the economic benefits of the pipeline to offset the financial costs of a potential oil spill, it is also looking for superior spill prevention and response measures.

"There can be billions of dollars that accrue to British Columbia or to the rest of Canada," he said. "But if we were to have an adverse event that we could not control, that we could not clean up or recover from, then British Columbians would say it's just not worth it."

Kinder Morgan did not respond to Lake's specific requirements, but said in a written response that it will "work in the coming months to ensure that our proposed project meets all the requirements to proceed."

The same demands were given to Calgary-based Enbridge, whose pipeline project is currently before the federal Joint Review Panel, but Alberta Premier Alison Redford rebuffed Clark's conditions.

Redford said the sharing of royalties between Alberta and B.C. goes against Canada's tradition of allowing goods to flow freely across the country.

(CHNL)

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