In July 2012, the Province released a heavy oil policy paper outlining five conditions that must be met for B.C. to consider any heavy oil pipelines. While inter-provincial pipelines are ultimately up to the federal government to approve – the five conditions look out for B.C.’s interests and ensure there is a balance between responsible economic development and environmental protection.
- Kinder Morgan has met the five conditions for the Trans-Mountain Expansion Project as follows:
- Condition 1 – The Trudeau government has approved the project, subject to the 157 conditions recommended by the National Energy Board. The Province has also issued an EA certificate which includes 37 additional legally-binding conditions.
- Condition 2 – The federal government’s Oceans Protection Plan is a world-leading marine safety system with new spill prevention and response measures. The plan includes upgrades to Coast Guard facilities along B.C.’s coast, two multi-purpose tugs and a 24/7 emergency operations centre in Port Hardy.
- Condition 3 – B.C. has passed legislation which enables a world-leading provincial spill preparedness and response regime. Regulations will be introduced this year and over the coming two years to ensure a world-leading system is up and running by 2019.
- Condition 4 – Kinder Morgan has signed 41 mutual benefit agreements with First Nations worth more than $350 million and provided $13 million in capacity funding to assist First Nations in carrying out their due diligence. The Trudeau government has also made substantial progress on consultation and accommodation, including a First Nations monitoring and advisory committee with a $64-million funding envelope.
- Condition 5 – Kinder Morgan will pay the Province between $25 million and $50 million annually for 20 years with revenues dedicated to environmental protection initiatives. Other economic benefits include:
- 75,110 person-years of employment for B.C. throughout construction and operation.
- $3.8 billion in GDP to B.C. in construction and $15.3 billion (over 20 years) during operation for a total of $19.1 billion.
- Estimated $2.2 billion in provincial tax revenue, including construction and operation benefits.
- Estimated $512 million in property taxes to municipalities in B.C. over 20 years of operation.
- The five conditions are:
- Successful completion of the environmental review process.
- World-leading marine oil spill response, prevention and recovery systems for B.C.'s coastline and ocean to manage and mitigate the risks and costs of heavy oil pipelines and shipments.
- World-leading practices for land oil spill prevention, response and recovery systems to manage and mitigate the risks and costs of heavy oil pipelines.
- Legal requirements regarding Aboriginal and treaty rights are addressed, and First Nations are provided with the opportunities, information and resources necessary to participate in and benefit from a heavy-oil project.
- British Columbia receives a fair share of the fiscal and economic benefits of a proposed heavy oil project that reflects the level, degree and nature of the risk borne by the province, the environment and taxpayers.
Media RelationsMinistry of Environment