$20M deal bars Burnaby from speaking badly about Trans Mountain - Action News
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British Columbia

$20M deal bars Burnaby from speaking badly about Trans Mountain

After years of fighting, Burnaby has signed an agreement with Trans Mountain Corp. that controls how the city communicates with the public about the company.

Mayor says agreement does not amount to a gag order on individual councillors

An indigenous canoe is paddled in front of oil storage tanks on the shores of Burrard Inlet.
A First Nations canoe paddles past Trans Mountain's Westridge Marine Terminal in Burrard Inlet in Burnaby, B.C. (Ben Nelms/CBC)

After years of fighting and court battles, the City of Burnaby has signed a $20.1-million deal with Trans Mountain Corporation that prohibits themunicipality and company from communicating unfavourably about each other to the public.

The Community Contribution Agreementbars "negative public communication, whether based on fact or opinion ... including any communication regarding past disputes," while also stipulating that Burnaby remove from its websites and communication channels "all negative public communications about Trans Mountain, its operation, shareholders, and affiliates..."

It says both parties must provide each other a copy of any public announcement for pre-approval prior to release.

Burnaby Mayor Mike Hurley said the agreement ensures the acrimony of the past is left behind so the city and Trans Mountain Corp.can work together on public safety issues going forward.

"There's no gag order at all and certainlyI, as mayor, or any member of councilcan say anything they want to say, as they could before," he said.

The controversial Trans Mountain Pipeline expansion project (TMX) faced significant opposition by Burnaby council and citizens over the years, with the city filing numerous court challenges againstthe construction, all of which were ultimately dismissed by theSupreme Court of Canada.

A large oil refinery spouts smoke amid a cloudy day.
Trans Mountain Corporation's Parkland refinery in Burnaby, B.C. (Yvette Brend/CBC)

The $35-billion project was completed earlier this year, tripling the amount of diluted bitumen and oilmoving from Alberta to Trans Mountain's Parkland refinery and WestridgeMarine Terminal, both located in Burnaby.

"Reality is, those tankers are coming in now," Hurley said. "There's one getting filled every day. These are massive tankers. Oil is still flowing through Burnaby Mountain and down to that loading facility ... and we can't be prepared without an agreement with TMX about how that's going to be managed."

According to the 11-page Community Contribution Agreement, Trans Mountain will pay Burnaby $20.1 million over the next 21 years.

The first $5 million will be paid when they sign the deal. A further $5 million will be paid onthe last day of both 2025 and 2026, followed by a further 17 instalments of $300,000, to be paid at the end of each subsequent year in the agreement.

Hurley said the city is free to spend the money as it chooses.

Burnaby Coun. Sav Dhaliwal said council "held their nose" when agreeing to the deal.

"The City of Burnaby has been in opposition to TMX from day one and we went all the way to the Supreme Court of Canada not once, but six times and we lost every time," he said."It's important now to work with TMX to ensure safety and security for our citizens, regardless of our differences ... so that's why we are where we are."

Dhaliwal, likeHurley,said the agreement does not mean mayor and council have given up their right to speak about TMX publicly.

"I'm not going to be gagged for any price," he said.

Aerial shot of oil terminal on Burrard Inlet in Burnaby.
Trans Mountain Corporation's Westridge Marine Terminal in Burnaby serves up to 37 oil tankers per month. (Jason Redmond/REUTERS)

University of British Columbiapolitical scientist Stewart Prestsaid the agreement highlights the "combined interests of government and industry."

"Perhaps council will want to think about a way to show that they can independently represent the interest of voters that don't align with business, at the same time they are continuing to cooperate with business," he said.

"That's a tall order and perhaps ultimately up to voters to keep an eye on things."

With files from The Early Edition