|
Alberta, BC make pipeline progress Provinces still lack formal pact endorsing lines across BC; Canadian government must authorize lines crossing provincial borders Gary Park For Petroleum News
Alberta and British Columbia have reached broad agreement on the terms for construction of pipelines from the oil sands to the Pacific Coast, but the accord guarantees nothing beyond further negotiations.
There is considerable work ahead to turn the outline into a formal pact that satisfies the issues British Columbia Premier Christy Clark has insisted on resolving in return for her endorsement of pipelines such as Enbridge’s Northern Gateway and Kinder Morgan’s Trans Mountain expansion.
However, Clark and her Alberta counterpart Alison Redford have come a long way since a year ago when they were barely on speaking terms after Clark had indicated she would settle for nothing less than a share of Alberta’s oil sands royalties — an impossibility under Canada’s Constitution, which assigns ownership and taxing of natural resources to the provinces.
In the framework that was rolled out Nov. 5 after an overnight bargaining session between officials of the two governments, the tentative accord keeps the door open to a bilateral agreement on British Columbia’s five demands for allowing crude bitumen to cross the province and be shipped through coastal waters to Pacific Rim markets. In return, Clark has endorsed Redford’s campaign for a national energy strategy in Canada.
What is unmentioned is that the ultimate decision on any pipelines that cross provincial borders rests with the Canadian government.
‘Fair share’ an issue A British Columbia news release said the first four conditions are “designed to achieve both economic benefit and risk mitigation on increased shipments through B.C., while the fifth condition provides a green light from Alberta for B.C. to negotiate with the industry on appropriate economic benefits such as jobs and taxes without seeking a share of Alberta’s oil sands royalties.”
Clark, who insisted she had never held out for a share of Alberta revenues, said there are various “possibilities” for her province to get its “fair share” of revenues in return for British Columbia carrying the greatest risk of crude spills from pipelines or tankers.
The two provinces said they will now work together to establish regulations to reduce the chances of marine or land spills and put methods in place to deal with accidents; secure fiscal and economic benefits; and consult with First Nations.
Redford said her government accepts that B.C’s conditions are designed to ensure “responsible energy production and safe transport to new markets.
“Alberta’s firm belief is that meeting those conditions gives projects the social license to proceed, as well as clear economic benefits for B.C. They could also mitigate the risk of increased shipments through B.C.,” she said.
Many ways to share benefits Dave Collyer, president of the Canadian Association of Petroleum Producers, said there are many ways that benefits can be placed on the table.
“The bottom line for us is we need the three governments (Alberta, B.C. and Canada) and industry working together to see how we can advance the interests of market access,” he said, making it clear the industry is ready to participate.
First Nations, which present the strongest opposition to heavy crude pipelines, dismissed the deal by the premiers.
Art Sterritt, executive director of the Coastal First Nations, an alliance of 10 communities, said there is no way of satisfying concerns over marine spills given estimates that only 10 to 15 percent of crude could be recovered.
He suggested Clark is “playing Redford a bit because Redford might think” that a solution is possible.
Sterritt has insisted First Nations will take whatever action is necessary to block pipeline construction, hinting that could extend to blockades.
| 