Trans Mountain pipe hearing snubbed

37 individuals, organizations, quit process; 1,700 remain; NEB issues 145 draft conditions, including C$1.1B liability coverage

GARY PARK

For Petroleum News

Upset by a process they have labeled as “biased, unfair, rigged and a farce,” 37 individuals and organizations have decided they will no longer participate in a hearing by Canada’s National Energy Board on Kinder Morgan’s plan to triple capacity on its Trans Mountain bitumen pipeline.

An NEB spokeswoman said in a statement the federal regulator was disappointed that the “interveners and commenters” had passed up an opportunity to “add their voice to the record and work to influence the decision of the board.”

Even so, the final round of hearings still involves about 400 interveners, who can provide evidence and testimony, and about 1,300 commenters, who can submit letters.

As if to challenge those who suggest it shows favoritism to the industry, the NEB on Aug. 12 listed 145 draft conditions it said could apply to the pipeline if it is built, including a requirement for Kinder Morgan to hold C$1.1 billion in liability coverage - C$100 million of which would have to be “ready cash” to compensate third parties for losses and damages while insurance claims were processed - and also to lay out in detail how it would offset greenhouse gas emissions associated with the construction work.

The conditions, although not intended to signal NEB approval of the application, are required to provide an outline of what could be contained in the regulator’s final recommendation to the Canadian government, which is expected next year.

The NEB said more conditions could be included, depending on what surfaced during the public hearings.

In comparison, the Canadian government endorsed 209 conditions recommended by the NEB for Enbridge’s Northern Gateway pipeline, including C$950 million in liability coverage.

Kinder Morgan’s Canadian President Ian Anderson described the conditions as “rigorous but achievable.”

The company said it intends to make further comments and seek clarification, particularly related to the timing of certain conditions and required approval processes.

The NEB spokeswoman said the board’s “processes are fair and guided by legislation. We are bound by the rules of natural justice and our decisions are subject to review by the federal Court of Appeal.”

The C$5.4 billion Trans Mountain project includes about 600 miles of new pipe between Edmonton, Alberta, and Metro Vancouver, raising capacity on the system to 890,000 barrels per day from 300,000 bpd and would increase tanker traffic in Port Metro Vancouver from five a month to 34.

The letter of withdrawal, which included the Wilderness Committee and the Canadian Parks and Wilderness Society, said NEB’s refusal to consider evidence from experts and First Nations would result in an “unbalanced and ill-informed” hearing.

It criticized the board for not hearing arguments on the pipeline’s impact on climate change.

But a spokesman said the Canadian Parks and Wilderness Society would voice its concerns outside the hearing room.

Separately, Kinder Morgan said it would pull advertising in support of the Trans Mountain expansion during the Canadian election campaign until after voting on Oct. 19.

A New Democratic Party candidate seeking election in British Columbia said that if Kinder Morgan wanted to make the project an election issue it had to register with Elections Canada as a third-party advertiser subject to spending limits.

Kinder Morgan said that although there had been no contact from elections officials the company had opted not to run advertising under any format during the campaign.

“The information does not advocate for any particular party, policy or position,” the company said in a statement.

However, Kinder Morgan said that a decision to end a series of advertisements had been made “due to the sensitivities around all forms of advertising.”

A company spokeswoman said the advertising campaign was started almost a year ago and was designed to “engage with and provide information to as many British Columbians as possible” about Kinder Morgan’s history and its safety record.