NEB approves Trans Mountain pipeline with 157 conditions

The federal government now has seven months to make a decision on the controversial Kinder Morgan Trans Mountain pipeline, after the national regulator gave its support to the proposed project.

The National Energy Board is recommending the multi-billion dollar pipeline be constructed if157 conditions are met, including 49 environmental requirements. The NEB described the requirements as achievable for the company.

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Kinder Morgan must meet the conditions in order for the company to construct and operate the pipeline.

The NEB concluded the Trans Mountain expansion will provide several economic advantages for Canada such as access to more export markets, thousands of construction jobs and increased government revenue.

At this point, the exact route of the pipeline is still not determined.

The federal government will take the NEB's decision into account in addition to considerations about upstream greenhouse gases and views of First Nations and other communities along the route.

Alberta's oilpatchwelcomed the decision, although the excitement was measured.

"It's beneficial in 2019 when there is actual oil flowing," said Robert Cooper, with the institutional sales and trading team atAcumen CapitalPartners in Calgary. "Right now the immediate concern in the energy business is keeping the business alive."

Oil and gas analyst Robert Cooper gives his thoughts on the NEB's approval of Kinder Morgan's proposed pipeline

8 years ago

Duration 0:58

Alberta's oilpatch welcomed the decision, although the excitement was measured.

Spill risk

Coastal communities in B.C. have raised serious concerns about spill risk and the potential damage it could cause tothe environment.

"The board found the likelihood of a major oil spill was very low. However the potential significance was very high," said RobertSteedman, the NEB's chief environment officer.

NEB's Robert Steedman outlines the main environmental concerns involved

8 years ago

Duration 3:11

The federal government will take the NEB's decision into account in addition to considerations about upstream greenhouse gases and views of First Nations and other communities along the route.

The impact of a possible earthquake was a major consideration, according to the NEB, although the risk is considered low.

Indigenous concerns

Conditions also include consulting with a number of Indigenous groups about environmental protection and emergency response plans.

"The board considered the concerns expressed by Indigenous groups, how the project and related tanker traffic could impact Indigenous interests, and the appropriate means of mitigating such impacts," Steedman said.

Steedman added the NEB tried to provide as much access and advanced information as possible for Indigenous groups.

Some of the groups who oppose the project have warned they will take court action to try tostop the pipeline from being built.

GHG emissions

Environmental regulations includedeveloping grasslands and wetlands mitigation plans, marine protection plans and reports about how the companywill construct the Burnaby Mountain tunnel.

The NEB is requiring Kinder Morgan to file an updated greenhouse gas assessment two months after the pipeline is built. The analysis would include the total direct emissions generated from construction. For the first time, the NEB is requiring the company to offset those emissions.

Marine shipping

The NEB went outside of its usual jurisdiction to make recommendations about how the oil will be transported on tankers. Officials considered possible environmental effects of marine shipping because ofpublic interest.

Trans Mountain must enhance its marine oil spill response to be capable of delivering 20,000 tonnes of capacity in the event of a spillwithin 36 hours of notification.

Other marine conditions include developing a mammal protection program.

"The board found that marine traffic in the Salish Sea is high and is increasing and, in fact, will increase regardless whether or not the project proceeds. And it found in the case of the southern resident killer whales, they are already impacted by the levels of traffic and any additional traffic that might be introduced by the Trans Mountain expansion project would likely be significant," said Steedman.

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While the NEB's announcement is significant, some saythe regulator's role is diminishing over time.

"It's not as if anyone is saying we don't need board approval, it's just that a board report, in and of itself, no longer seems to be enough," said Nigel Bankes, chair of natural resources law at the University of Calgary.

"It used to be the 'be all and end all'and, quite clearly, now there are other important inputs, which make it a much more complicated world with many more moving parts," he said.

If approved, the twin lines could carry nearly 900,000 barrels of crude a day, starting in 2018.

Conditional approval for pipeline upgrade

8 years ago

Duration 6:44

University of Calgary's James Coleman on NEB approval of the Trans Mountain pipeline

Here is how some peoplereactedto the NEB decision:

"The NEB has completely disregarded the urgency that climate science demands. We can't build more pipelines and meet the international climate commitments that Canada agreed to in Paris" MikeHudema, Greenpeace.

"This decision is a milestone for the future of Canada.The NEB is sending a clear message to Canada: building the infrastructure to get our resources tomarket is in the best interest of our country" Tim McMillan, Canadian Association of Petroleum Producers

"I'm happy we are going to the next step and there still are some steps to go" Marg McCuaig-Boyd, Alberta's Energy Minister.

"We need the federal Liberal government, along with other provincial and municipal politicians, to stop delaying and undermining the confidence in this independent process and back these critical projects that will grow our economy" Brian Jean, Wildroseleader

"The Liberals promised to fix the environmental review process, but have so far only put in a temporary fix, a three-member panel to review the NEB's Trans Mountain report. We must return to an independent, robust environmental assessment process for all industry projects. Anything less sets a dangerous precedent" Elizabeth May, Green Party leader