Big week ahead for Canadian pipelines, as key moves loom on TMX, bill C-69

Two decisions coming next week couldhave a big impacton the future of energy projects in Canada.

The federal cabinet will announce Tuesday if it will approve the Trans Mountain pipeline. The decision comes afterthe federal government conducted a second round of consultations with Indigenous communities along the pipeline's route. The Federal Court of Appeal ruled the initial consultations fell short of meaningful dialogue.

The Senatewill also take a final voteon the Liberal government'scontroversial overhaul of federal environmental assessment legislation bill C-69.

Not surprisingly, there are distinctly different views on the outcomeof the decisions.

"I think if you look at the state of Canadian energy these days, it's certainly being hampered,"EnbridgeCEO Al Monaco toldCBCRadio'sThe House, when asked about bill C-69.

The Liberal government accepted substantial changes to C-69 this week, but rejected almost all amendments put forward by the Conservatives.The legislation overhauls how major natural resourcedevelopment projects, such as pipelines and mineproposals,are assessed and approved.

Environmental groups haveargued that the regulations set out in Bill C-69 do not go far enough, while others including AlbertaPremier JasonKenney say the bill is so tough on the natural resources industry it will make it impossible to get new energy projects approved.

The legislation is now goingback to the Senate, whichmust accept the Liberal government's changes before Bill C-69can become law.

All about transparency and certainty

It is achallenge to get pipelines approved on both sides of the border, Monaco told host Chris Hall in an interview airing Saturday, adding that Canada's proposed new rules would bring forth their ownobstacles.

"It really comes down to the certainty and transparency in the process and ultimately its predictabilityto attract investment," he said.

While regulatory review can also be difficult in the U.S., Monaco said, delays are more manageable.

"Average times for approval are definitely better in the United States, for the most part, compared to Canada."

Enbridgecurrently has two projects in jeopardy thatstraddlethe Canada-U.S. border.

The company'sLine 3 pipeline that would carry crude oil from a terminal near Hardisty, Alta., through northern Minnesota to Superior, Wis. isfacing new delays from Minnesota regulators.

The existing Line 5is also under threat of closure after Michigan's attorney general said she would shut down the pipeline if the company and the new state government couldn't reach an agreement on how to deal with the 65-year-old pipeline.

Still, Monaco prefers those odds, sayingit ispossible to addressenvironmental concerns while alsodeveloping energy projects.

'This is a pipeline that was supposed to be halfway done by now' | Jason Kenney

5 years ago

Duration 10:09

Incoming Alberta Premier Jason Kenney reacts to the federal government pushing a decision on the Trans Mountain pipeline until June.

'All they offer us is pennies'

But while the federal government looks for ways to get projects like Trans Mountain rolling, one Indigenous group living along thepipeline route isn't backing down from its demands for inclusion in the decision-making process.

"The meaningful dialogue we were supposed to have never happened and the consultation process is flawed," Coldwater Indian Band Chief T. Lee Spahan toldThe House.

Spahan said his bandis worried about Trans Mountain contaminating local water sources. He also said the federal government is disrespecting Indigenous peoples because it is not allowing them to protect their traditional land for future generations.

Spahansaid he isextending invitations to several ministers, and to Prime Minister Justin Trudeau, to tourtheir land in British Columbia and hold discussions. Spahan said he hasbeen underwhelmed by theirresponses or lack thereof, as he said only Natural Resources MinisterAmarjeetSohihas paid a visit.

A spokesperson for Indigenous Services MinisterSeamusO'Regansaid in a statement thata special ministerial representative who is assigned to work withColdwater regularly meets with the band.

"MinistersSohiandO'Regan, and our whole government, remain committed to getting this right," the statement said.

Spahansaid he haslow expectations for Tuesday's pipelineannouncement.

"I probably won't be happy about it and I'll be going back to my council and my membership to seek direction as to where we go from here."

There's also economic concerns for the chief. He said the compensation for bands along the route isn't on par with the cost to the land and the people.

"Everybody gets rich off of it. In the end all they offer us is pennies."