Canadian government spends $4.5 billion taxpayers’ dollars to buy Trans Mountain pipeline project and push expansion ahead

justin-trudeauDespite strenuous and prolonged opposition from environmental and Indigenous activists in Canada and internationally, and two days before a deadline imposed by Texas corporation Kinder Morgan, Canada’s Liberal government announced on May 29  that it will  spend $4.5 billion to buy the existing Trans Mountain pipeline and its associated infrastructure, so that a pipeline expansion can proceed under the ownership of a Crown corporation.  The press release is here  ; details of the transaction are here in a Backgrounder  ;  the text of the speech by Finance Minister Bill Morneau is here . Repeating the mantra of the Trudeau government, Morneau claims that the project is in the national interest, will preserve jobs,  will reassure investors and improve the price for Canadian oil by expanding its market  beyond the U.S.  Morneau says the federal government does not plan to be a long-term owner and is in negotiations with interested investors, including Indigenous communities, pension funds (notably the Canada Pension Plan Investment Board)  and the Alberta government.

trans-mountain-pipelineIn fact, the expansion pipeline, if built, would almost triple the amount of dilbit transported from Alberta to the British Columbia coast, from 300,000 to 890,000 barrels a day, and increase tanker traffic off B.C.’s coast from approximately five to 34 tankers a month.  As recently as May 24, an Open Letter coordinated by Oil Change International  and signed by over 200 groups  summed up the situation, stating there is a “….  clear contradiction between Prime Minister Trudeau’s unchecked support for the Kinder Morgan pipeline project and his commitments to Indigenous reconciliation through the United Nations Declaration of the Rights of Indigenous Peoples (UNDRIP) and his obligation to address climate change through the Paris Agreement.”  The letter notes that currently planned Canadian oil production would use up 16% of the world’s carbon budget to keep temperatures below 1.5 degrees, or 7% of the budget for 2 degrees.  Canada has less than 0.5% of the world’s population.

Today’s initial reaction to the government’s decision  has called it “astounding”, “shameful”, and an “historic  blunder”.  From the CBC: “Liberals to buy Trans Mountain pipeline for $4.5B to ensure expansion is built”   and “ Bill Morneau’s Kinder Morgan surprise comes with huge price tag, lots of political risk: Chris Hall”.  From  The National Observer   “Trudeau government to buy troubled Trans Mountain pipeline for $4.5 billion”   ; “BC Will Continue Legal Strategy to Oppose Pipeline After Federal Purchase, Premier Says”  in The Tyee  .  Toronto’s Globe and Mail posted at least 6 items on the decision , including  an Explainer , and Jeff Rubin’s Opinion: “Morneau had better options for Canada’s Energy sector” .

From  Greenpeace Canada: “Federal government volunteers to “captain the Titanic of tar sands oil pipelines” and risks $4.5B of Canadians’ money in the process” ; and  West Coast Environmental Law reaction points out that “There are currently 14 legal challenges before the Federal Court of Appeal, alleging that the government failed in its constitutional duty to consult First Nations about the Trans Mountain project, and that the federal review had other regulatory flaws. Success in just one of those challenges could derail the underlying federal approvals.”

In the Victoria Times Colonist, “Green Party Leader May calls pipeline decision ‘historic blunder’” ; John Horgan, Premier of British Columbia, released an official statement  , and a jubilant Alberta Premier Rachel Notley is profiled in the CBC story, ” ‘Pick up those tools, folks, we have a pipeline to build,’ Alberta premier says  “.  Reaction from B.C. First Nations leaders is compiled in this CBC story.

Social media reaction, as compiled by CBC , is here  .  The Dogwood Initiative has mounted a  “Time for Bill Morneau to go” online petition here ; SumofUs has an online petition  here,  to urge the Canada Pension Plan Investment Board not to invest in Kinder Morgan.   Direct emails can be sent to Prime Minister Justin Trudeau at justin.trudeau@parl.gc.ca .   Opposition continues and the story is not over.

Kinder Morgan Trans Mountain pipeline ignites a trade war between Alberta and British Columbia

trudeau-notley-20161129Pipeline politics have ignited a trade war between the governments of Alberta and British Columbia – both led by NDP Premiers  – with the Prime Minister clearly siding with Alberta and the construction of the Kinder Morgan Trans Mountain pipeline, as recently as February 1 .  The latest episode in the longstanding interprovincial feud was triggered on January 30,  when the B.C. government announced the formation of an independent scientific advisory panel to determine whether diluted bitumen can be effectively cleaned up after being spilled in water, and  “Until that committee reports, the government will impose a regulation prohibiting any expansion, either by pipeline or rail, of heavy oil sands crude.”  Details are in “B.C. announces oil transportation restrictions that could affect Kinder Morgan”  in the National Observer (Jan. 30); “B.C.’s Action on Bitumen Spills ‘Finds Kinder Morgan’s Achilles’ Heel’ (Feb. 5).

Alberta’s reaction was strong. First, in what Toronto’s Globe and Mail described as a “spat” on February 1:  “Alberta suspends electricity talks with B.C. over pipeline fight“. In a few days, The Energy Mix wrote ” Sour Grapes: Alberta to stop importing B.C. wine over Kinder Morgan feud” (Feb. 6) and  “Alberta Declares Boycott of B.C. Wine in Escalating Kinder Morgan Dispute” (Feb. 7 ) . CBC News reports reveal the escalating emotions: “The Alberta vs. B.C. pipeline fight. Now it’s war.” (Feb. 3) and “Weaponizing wine: Notley’s engineering a federal crisis in her battle with B.C.” and  “Oil, water and wine: “Escalating Alberta-B.C. feud threatens future of Trans Mountain pipeline” (Feb. 7); DeSmog Canada wrote “This might get Nasty: Why the Kinder Morgan standoff between Alberta and B.C. is a Zero-Sum Game” (Feb. 2). On February 9, Alberta’s Premier announced “a task force of prominent Canadians to respond to B.C.’s unconstitutional attack on the Trans Mountain Pipeline and the jobs that go with it”. The Market Access Task Force is loaded with government representatives and oil industry executives.

If you only have time to read one article about this dispute, read the analysis of Alberta’s Parkland Institute, in Let’s share actual facts about the Trans Mountain Pipeline. The three claims being made by the Alberta government are: 1. the  pipeline would generate $18.5 billion for “roads, schools, and hospitals”;  2.  it would create 15,000 jobs during construction, and 3. it would create 37,000 jobs per year. With deep expertise in the oil and gas industry, Parkland explains how these numbers were derived and why they are mostly outdated and selective.

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Protests against Kinder Morgan will continue in B.C., with the Tsleil-Waututh First Nation  calling for a mass demonstration on Burnaby Mountain in March. – see the CBC summary here.

Stepping back,  see Andrea Harden-Donahue‘s January 24  blog for the Council of Canadians, “#StopKM: State of Resistance” , which details past resistance and demonstrations against KM,  and states that “the Pull Together campaign recently reached the fundraising target of $625,000 towards Indigenous legal challenges.” For a view of the legal issues and lawsuits (including First Nations’) in this longstanding fight, see a West Coast Environmental Law blog published on January 17, before this war erupted: “Whose (pipe)line is it anyway? Adventures in jurisdictional wonderland “.

 

Despite another oil spill, Keystone XL pipeline is approved in Nebraska. Resistance is strong and resolute

On November 16, TransCanada Pipeline shut down the existing Keystone Pipeline to contain a spill in South Dakota, estimated at 210,000 gallons– the third in the area since operations began in 2010.  Reports include “South Dakota Warns It Could Revoke Keystone Pipeline Permit Over Oil Spill”  in Inside Climate News .   On November 20, the Nebraska Public Service Commission granted approval to Keystone  – but an approval which Anthony Swift at NRDC describes as a “pyrrhic victory” because the original proposed route through Nebraska was rejected, and the new alternative route approved – the Keystone Mainline Alternative route –  must now undergo new state and federal environmental approval processes .  Official intervenors may also file an appeal  in the Nebraska courts within 30 days and may petition the Public Service Commission for a rehearing within ten days.  Even TransCanada seems to wonder if the Keystone will ever get built – the official press release  states:  “As a result of today’s decision, we will conduct a careful review of the Public Service Commission’s ruling while assessing how the decision would impact the cost and schedule of the project. ”   Other reaction to the news of the approval: from The National Observer  ;  Alberta’s Calgary HeraldCouncil of Canadians ; Bold Nebraska (an alliance of landowners, environmental groups and First Nations), and  from Common Dreams, ” ‘This Fight Is Far From Over’ Groups Declare as Nebraska Clears Path for Keystone XL Construction”  – summarizing the responses of 350.org and the Sierra Club.

As for strong and resolute opposition: In May 2017, CBC reported that leaders of the Blackfoot Confederacy in Canada, the Great Sioux Nation (U.S.) and the Ponca tribe (U.S.)  signed a joint declaration of opposition to Keystone XL . In a broader coalition,  First Nations, along with non-native groups such as 350.org and Greenpeace USA, have now launched  the Promise to Protect campaign which states:We will make a series of stands along the route – nonviolent but resolute displays of our continued opposition to a project that endangers us all. Join native and non-native communities in the Promise to Protect the land, water, and climate. ”  In light of the resolute and deep resistance, it is important to note an article in The Intercept   “Nebraska approves Keystone XL Pipeline as opponents face criminalization of protests”   (Nov. 20), which reported:  “In anticipation of the Keystone XL’s construction, legislation was passed in South Dakota in March that allows the governor or a local sheriff to prohibit groups numbering more than 20 from gathering on public land or in schools, and also allows the Department of Transportation to limit access to highways by prohibiting stopping or parking in designated areas.”  The South Dakota Senate Bill 176 is here.

 

Kinder Morgan, Keystone pipelines move closer to reality as Canada is warned about its carbon budget

Prime Minister Trudeau set off an outcry in Alberta with these comments at the start of his cross-country tour in Peterborough, Ontario : “You can’t make a choice between what’s good for the environment and what’s good for the economy. We can’t shut down the oilsands tomorrow. We need to phase them out. We need to manage the transition off of our dependence on fossil fuels.”  In Calgary on January 24,  Trudeau defended his remarks in a town hall meeting in Calgary, summarized in “Calgary crowd cheers and boos Trudeau in showdown with oilsands supporters”   in the National Observer (Jan. 25) .

On January 11, British Columbia’s Premier Clark waived B.C.’s original five objections and approved the Kinder Morgan pipeline project (albeit with 37 provincial conditions) . Alberta’s Premier Rachel Notley responded with:  “Working families shouldn’t have to choose between good jobs and the environment. World-class environmental standards and a strong economy that benefits working people must go hand-in-hand. The Kinder Morgan pipeline offers us an historic opportunity to demonstrate that these values can – and must – go hand in hand.”   Reaction to B.C.’s decision from West Coast Environmental Law is here ; or read “Did Christy Clark just betray British Columbia?” from Stand.earth, which continues to organize resistance to Kinder Morgan.

As anticipated, President Donald Trump wasted no time in approving the Keystone XL and Dakota Access pipelines, signing  Executive Orders on January 24.  Negotiations and further state-level approvals are still ahead, but Canada’s Trudeau government welcomed the news, according to a CBC report which quotes Natural Resources Minister Jim Carr : “it would be very positive for Canada — 4,500 construction jobs and a deepening of the relationship across the border on the energy file.”   In a joint response by Greenpeace USA and Greenpeace Canada, Mike Hudema of Canada stated:   “The question for Canadians is: will the Prime Minister continue to align himself with a climate denying Trump administration, or will he stand with the people and with science and start living up to his own commitments to the climate and Indigenous rights?”

According to a January report by Oil Change International (OCI), “Ultimately, the carbon mathematics is such that the Canadian government simply cannot have it both ways . There is no scenario in which tar sands production increases and the world achieves the Paris goals.”  Climate on the Line: Why new tar sands pipelines are incompatible with the Paris goals  continues with: “Cumulative emissions from producing and burning Canadian oil would use up 16% of the world’s carbon budget to keep temperatures below 1.5 degrees, or 7% of the budget for 2 degrees. Canada has less than 0.5% of the world’s population.” ” There is no future in expanding tar sands production. Instead, the government should begin serious efforts now to diversify the economy, supporting a just transition for workers and communities.”  Andrew Nikoforuk summarized the report in The Tyee (Jan. 10); CBC Calgary interviewed experts in its analysis, “Could the oilsands really be phased out? Here are the possibilities” (January 21).

Decision approaches for the Kinder Morgan Transmountain Pipeline Expansion

kmpipeline_tanker_route_salish_sea_map_smallThe Liberal government announced a national Ocean Protection Plan  on November 8, investing $1.5  billion over five years,  “to ensure that our coasts are protected in a modern and advanced way that ensures environmental sustainability, safe and responsible commercial use, and collaboration with coastal and Indigenous communities.” Although one of  the goals is “restoring and protecting the marine ecosystems and habitats”, the main thrust appears to emphasize commercial shipping,  maritime traffic, and improved response to tanker oil spills.   A sample of reaction:  An Editorial from the  National Observer “’Ocean protection’ is now code for oilsands pipelines and tanker traffic ” (Nov. 8); “No tanker ban in Trudeau’s $1.5-Billion Coastal Protection Plan”  in The Tyee ; and though Equiterre’s press release strikes a constructive tone, it links the Plan directly to the Kinder Morgan pipeline and subsequent tanker traffic.  As  Chantal Hebert wrote in the Toronto Star,  “it is obvious to everyone following along that he (Prime Minister Trudeau)  was getting some framing in place before green-lighting Kinder Morgan’s TransMountain pipeline expansion”.

The Report from the Ministerial Panel for the Trans Mountain Pipeline Expansion Project  was presented to Natural Resources Minister Carr in early November, the Panel having been appointed by the Minister  in May 2016  to quell  public outrage over the National Energy Board  process. From the Report introduction: “The panel’s mandate was not to test or build social licence for the project. It was to identify what might have been missed in the original review. Appropriate to the panel’s mandate, therefore, this report does not contain specific recommendations. Rather, it provides an overview of input, a reflection of public concern about changing circumstances, and a synthesis of major issues “.   Nevertheless, the panelists managed to say that the Kinder Morgan project “cannot proceed without a serious reassessment of its impacts on climate change commitments, indigenous rights and marine mammal safety. ”   DeSmog blog summarizes the report and commends the Panel .

Others  dispute that the pipeline is even needed, on economic grounds – see Climate Action Network   or Robyn Allan in “Opinion: Premier Notley relies on fiction to push Kinder Morgan pipeline expansion”  in the National Observer (Nov. 14)  . From Vancouver-based   Conversations for Responsible Economic Development  (CRED),  self-described as “fiercely pro-business and pro-economic development” : “It’s crucial that the federal government reject the KM pipeline and instead support sectors in BC that create family-sustaining jobs, make significant tax contributions, insulate the regional economy from boom-and-bust cycles, and promote economic growth compatible with Canada’s national climate commitment.”  See the full CRED report,  What’s Fuelling Our Economy: Is Kinder Morgan’s Proposed Pipeline Inconsistent with New Economic Trends and Realities?

Protests and legal action against the Kinder Morgan project have been going on for years – see our previous WCR coverage here –  but they are intensifying with the upcoming December 19 deadline for a government decision.  In October, 99 protestors were arrested on Parliament Hill, and  British Columbia’s former Premier Mike Harcourt warned in a November interview   that an approval could result in “a  Clayoquot or North Dakota type of insurrection”. A November 17 event hosted by Leadnow.ca  also makes the link: “From Standing Rock to Burnaby Mountain: Can Direct Action Stop the Kinder Morgan Pipeline?”.   On November 16,  the Canadian Youth Delegation at COP22 in Marrakech delivered a  petition with 210,000 names opposing the Kinder Morgan pipeline; demonstrations and vigils are planned across Canada for November 21, coordinated by 350.org , Leadnow.ca, Greenpeace Canada   , the Council of Canadians    , the Canadian Youth Climate Coalition  and others.  The Kinder Morgan pipeline expansion is being framed as the acid test for the Liberal government’s environmental position.