New Oil Spill Safety Rules Make Pipeline Companies Liable For Costs

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VANCOUVER - The Canadian government says pipeline companies will be liable for all costs and damages from a spill, regardless of fault or negligence under a new law.

Natural Resources Minister Greg Rickford said Wednesday pipeline operators will also have to have a minimum amount of cash available to pay cleanup costs and the National Energy board will be given the power to order reimbursement for those affected by a spill.

The law comes amid opposition in the province to two pipelines. Enbridge's Northern Gateway project would transport 525,000 barrels a day from Alberta to the B.C. coast. Kinder Morgan's Trans Mountain expansion would almost triple the current capacity of a pipeline from Alberta to Vancouver to 900,000.

Canada needs more pipeline infrastructure to export its growing oil sands production from Alberta.

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Canada's new pipeline safety rules widen firms' oil spill liability to $1-billion