It is time to change battle tactics.
On May 16, the provincial government passed the Preserving Canada’s Economic Prosperity Act a.k.a. Bill 12 which authorizes the government to issue licences for any company exporting energy products from Alberta. The province can use this as a tool to identify companies shipping products to British Columbia, including natural gas, crude oil and refined fuels such as gasoline, diesel and jet fuel.
If and when the province decides to restrict the flow of these resources companies that do not comply with the terms of their licence could face fines of up to $10 million per day. Individuals could face fines of up to $1 million per day.
The B.C. government’s plan is to restrict the amount of diluted bitumen, or dilbit as it is known, to flow through the proposed Trans Mountain pipeline until they have a better understanding of how the province would mitigate the impact of potential spills.
The B.C. government said it will establish an independent scientific advisory panel to make recommendations to the Environment minister on whether, and how, heavy oils can be safely transported and cleaned up if spilled.
However, I still think Bill 12 is the wrong route to go. Don’t get me wrong, I want to see the pipeline built, but I am not convinced that the move will have the impact everyone thinks it will.
Yes, if Alberta goes ahead and pulls the trigger, and restricts the amount of gasoline it sends to B.C. it will impact B.C.’s economy, but it would also be detrimental to Alberta’s economy.
Canadian Fuels Association, Western Canada vice-president Brian Ahearn said such a move would likely push fuel costs higher in B.C. but would also negatively affect Alberta’s four refineries.
About 25 per cent of the gasoline, diesel, jet fuel and other products produced at the Edmonton-area refineries goes to B.C. — a total of 80,000 to 100,000 barrels per day.
He said refiners would be forced to find alternative markets, accept lower prices or, even worse run their operations at less than optimum capacity to restrict output.
Business Council of B.C. CEO Greg D’Avignon also suggests such a move, through the rise in the lower-mainland gas prices, would affect the cost of trade goods going to Alberta and the cost to ship Alberta products such as grain from West Coast ports.
All this for potentially no benefit. There is no guarantee that the move would make the B.C. government soften its stance.
Oil is a dangerous, but necessary, product to ship and the potential for oil leakage or spill is a real concern. According to National Energy Board (NEB) data since 2002, there have been 11 leaks spilling from the existing Trans Mountain line.
In order for this project to go ahead without being hindered by the BC government and its residents, Kinder Morgan needs to let the public know what the plan is to deal with a potential spill along the route or even worse, by one of the ships which will transport the bitumen.
This is how, in my opinion, the battle for the pipeline will be won or lost.
