Premier Christy Clark and Alberta Premier Alison Redford meeting in Vancouver Tuesday.

Oil pipeline toll one option for B.C. benefits

Alberta premier Alison Redford hopeful after agreement with Christy Clark

Alberta Premier Alison Redford says she’s optimistic her deal with B.C. Premier Christy Clark will increase the flow of oil west to the Pacific to diversify Canadian energy markets.

She spoke Tuesday to the Vancouver Board of Trade after the two premiers unveiled what they called a framework agreement for cooperation on new heavy oil pipelines.

“It makes it clear, officially, that Alberta’s royalties are off the table,” Redford said. “The economic benefit cannot be provided or guaranteed by the government of Alberta.”

While B.C. won’t ask Alberta to hand over any share of oil royalties or taxes, it can seek to impose its own toll or tax on oil that may flow through a new pipeline, with Alberta’s support.

Clark hasn’t said if a pipeline toll is how B.C. will seek to gain direct benefits to offset its environmental risk and satisfy her fifth condition for new oil pipelines.

“That is certainly one example but it may or may not be the one we end up seeing,” Redford said.

She stressed the discussion on benefits is one for B.C. to have directly with industry, adding she sees no role for Alberta.

Such a charge may reduce the competitiveness of a new B.C. pipeline relative to other pipelines Alberta also wants built to carry its oil south or east, or relative to the shipping of oil by rail.

In her speech to business leaders, Redford pointed out 42 per cent of the natural gas produced in B.C. flows through Alberta to get to markets – without any toll being applied by her government.

“Our provinces share economic destinies,” she said, making the case for the two province’s to work closely together to prosper from energy exports.

Canadian Association of Petroleum Producers vice-president Greg Stringham downplayed the potential for a provincially imposed pipeline toll, saying the idea has not been formally proposed.

“As we look at options I’m sure that’s one that will be considered on the table,” he said, but added industry is unlikely to propose any preferred solution.

Kinder Morgan Canada president Ian Anderson said it was “too early” to talk about the idea of a B.C.-imposed toll on each barrel shipped through a twinned Trans Mountain pipeline.

“We’re looking to define and deliver the benefits from our project directly to communities in British Columbia,” he said.

The $5.4-billion Trans Mountain project proposes to nearly triple pipeline capacity from 300,000 to 890,000 barrels of oil per day.

Anderson said $423 million would be spent in local cities during construction, $150 million of that on accommodations alone.

He said the project also means an additional $500 million going to cities in the form of higher property tax payments over the next 20 years.

Ben West of ForestEthics accused Premier Clark “flipflopping” and preparing to sell out B.C.’s environment with the agreement.

“I don’t hear anything that would change the likelihood of a spill, the dangers from diluted bitumen, the concerns around climate change or the concerns of First Nations,” West said.

“The only thing that seems to be being discussed is revenue sharing. And quite frankly, our rivers and our coast aren’t for sale.”

Kinder Morgan Canada president Ian Anderson was non-committal on the idea of B.C. imposing a toll on oil shipped through a twinned Trans Mountain pipeline, saying his firm intends to highlight the project’s community benefits.

Just Posted

Children of the Japanese Canadian internment return to Tashme, for museum expansion

A replica of a tar paper shack and education space part of Sunshine Valley Tashme Museum expansion

20-bed emergency shelter to open in Hope in October

Supportive housing also planned for two lots on Old Hope Princeton Way, adjacent to the shelter

Fraser River First Nations say they aren’t getting their share of sockeye

Shortage is a result of decisions made by DFO, not a shortage of sockeye, complaint says

PHOTOS: Japanese-Canadians who built Highway 3 forever remembered with Mile 9 sign

A lesser-known part of B.C. history is the 1,700 Japanese-Canadian men who built highways in WWII

Hope arm-wrestler turned track and field star wins five medals at 55+ Games

Seven medals total coming back to Hope from golf and track and field events

VIDEO: More cameras, police coming after Marissa Shen killed in Burnaby park

B.C. privacy watchdog worries that the cameras are a ‘slow creep’ to a surveillance state

Arborist killed by fallen tree at Maple Ridge Golf Course

Was working near the 9th tee box of the golf course.

Rattie scores 3 as Oilers blank Canucks 6-0

Vancouver slips to 1-5 in exhibition play

Veterans Affairs ordered to take second look before supporting vets’ relatives

Liberal government ordered officials to adopt a more critical eye

Dead B.C. motorcyclist was member of group that raced down mountain road

Some group members record their rides on Strathcona Parkway and post times to page

Indigenous athletes in spotlight at BC Sports Hall of Fame

New gallery to feature Carey Price, Kaila Mussel and Richard Peter

B.C. couple who went missing on flight from Edmonton named by family

Family released a statement Wednesday saying they’re still intent on finding the two-seater plane

Abbotsford raccoon dies from injuries suffered in a trap

Wildlife protection group offering $1,000 reward for information about incident

VIDEO: A close look at what you were breathing during the B.C. wildfire season

Electron microscope images show soot and tar particles generated by worst B.C. fire season

Most Read