Kinder Morgan

Friday May 18, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday May 18, 2018

Morneau says government willing to compensate Kinder Morgan against political delays

Canada is willing to write Kinder Morgan — or anyone else who steps up to the plate — a cheque to ensure the Trans Mountain pipeline expansion gets built despite British Columbia’s opposition, Finance Minister Bill Morneau said Wednesday.

Morneau said the federal government is willing to compensate the pipeline’s backers for any financial loss due to British Columbia’s attempts to obstruct the company’s Trans Mountain pipeline expansion.

“The indemnification would allow Kinder Morgan to finish what they started, what they received federal and B.C. approval to do,” he said Wednesday morning during a news conference that laid out in broad terms what his government is willing to do to move the project ahead.

Morneau’s statement came just hours before Kinder Morgan Canada’s stakeholders met in Calgary, and offers the company an incentive to proceed with the project just weeks ahead of its potential drop-dead date. Kinder Morgan has threatened to abandon the project if a clear path forward isn’t reached by May 31.

“As a government we need to ensure that the rule of law is respected and that investors have the certainty needed to complete the Trans Mountain expansion project, because it’s in the national interest to do so,” Morneau said.

Morneau said that if Kinder Morgan bails on the project, the government would reimburse any financial losses related to B.C.’s political opposition incurred by any other investor willing to take the project on — as long as reimbursement is “sound and fair and beneficial for Canadians.”

Morneau wouldn’t say if there’s a limit to how much the government is willing to spend to compensate the pipeline’s backer. (Source: CBC) 

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Saturday April 28, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday April 28, 2018

Federal program funds summer job to help ‘stop Kinder Morgan pipeline’

As Prime Minister Justin Trudeau continues to vow that the Kinder Morgan pipeline expansion “will be built,” his government’s summer jobs program is funding a position with an activist group working to stop the project.

April 19, 2018

A call for applications for an “organizing assistant,” posted online by the non-profit group Dogwood B.C., says the job involves working to help the group’s network “stop the Kinder Morgan pipeline and tanker project.” It notes the position is funded by the federal Canada Summer Jobs Program.

The temporary full-time job is open to students. It pays $15 per hour for 9 to 12 weeks of work and is based in Vancouver.

But according to the organization receiving the funding, this kind of political push-and-pull is nothing new.

Dogwood B.C. said it has received funding for such positions since 2010, under both the Trudeau and Stephen Harper governments. The organization even got the funding when it was fighting the Enbridge Northern Gateway project, which Harper supported.

Kai Nagata, Dogwood’s communications director, said the group isn’t certain yet how many students it will hire with the help of federal funding this year. He said that in past years, students have worked on other projects as well, including one to prevent U.S. thermal coal exports from moving through Vancouver.

“The federal government has never thought to impose its political agenda on kids canvassing in B.C. on environmental issues,” said Nagata, who previously worked as a reporter for both CBC and CTV. (Source: CBC) 

 

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Thursday April 19, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday April 19, 2018

Flailing about on the TransMountain Pipeline Project

April 11, 2018

Desperate times require desperate measures. In the standoff between British Columbia and Alberta over the Trans Mountain pipeline expansion, the federal government is caught in the middle, trying to salvage its approved project that is about to collapse and avoid a major regional conflict. The federal Liberals are so desperate to save this pipeline from being scuttled by B.C. politics that they’re offering to financially backstop the project. Unfortunately, that might not be the solution they think it is. 

May 31, 2017

Their desperation escalated after Kinder Morgan leveled an ultimatum earlier this month: It would need, by May 31, political certainty that its project can go ahead or it will pull out. Some have called that blackmail, but that’s not fair: endless regulatory red tape has already driven Trans Mountain’s costs up to $7.4 billion from $6.8 billion. Further delays and costs would only further compromise the economic viability of the project, while making it harder to sign up shippers. Kinder Morgan has already spent over $1 billion to prepare its application, negotiate agreements with multiple First Nations and clear land. The next step is buying and installing the pipe, which will cost billions of dollars. The company can’t make that commitment while Canada plays its Mickey Mouse politics.

June 8, 2017

After neglecting the issues for too long, the federal government now promises to assert its constitutional power over the project. As legal scholar Dwight Newman notes, the federal government could pass legislation that clearly asserts the paramountcy of its constitutional power, rendering any provincial laws inoperable when a conflict arises. Using this strategy will prove even more important now that B.C. is threatening to also limit the transport of Alberta’s bitumen by rail, which also challenges federal powers. (Continued: Financial Post) 

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Wednesday April 11, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday April 11, 2018

Kinder’s Pipeline Pause Puts Pressure on Trudeau to Act, Somehow

Justin Trudeau has a lot riding on the Trans Mountain pipeline expansion. But the Canadian prime minister has few viable options to save it.

June 27, 2013

Kinder Morgan Inc. halted most work on the project Sunday, ramping up pressure on the federal government to somehow deter provincial opposition and protests from environmentalists before a May 31 deadline. Trudeau’s energy strategy is at stake, along with overall business confidence and the price of Canadian oil landlocked in neighboring Alberta.

His problem is that opposition from British Columbia has been mostly talk, leaving Trudeau essentially in a war of words that’s been enough for the Houston-based company to warn the uncertainty has become too great. Trudeau’s team backs the pipeline and flatly promises it will be built, though with the project already approved its options are few beyond trying to cajole the Pacific coast province.

June 8, 2017

“The consequence of their indirection has created a problem of certainty for the proponent. That problem is real,” Natural Resources Minister Jim Carr said Monday in an interview at his Ottawa office. “We will look at every option available to the government of Canada — financial, regulatory, legal.”

Shares of Kinder Morgan Canada Ltd. fell 13 percent Monday, the biggest decline since its initial public offering last May.

While cross-border pipelines are under federal jurisdiction, provinces have asserted themselves in recent years, muddying the outlook and allowing new challenges to pop up. In this case, British Columbia’s New Democratic Party government — whose razor-thin command of the provincial legislature relies on support of Green Party lawmakers — has dug in its heels. (Source: Bloomberg) 

Published in the Western Star, Corner Brook, Newfoundland

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Thursday June 8, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday June 8, 2017

Personality politics emerge as pipeline dispute pits Alberta against B.C.

British Columbia NDP Leader John Horgan and Green Party Leader Andrew Weaver were clearly on a roll last week at a celebratory news conference that formalized what they promised would be a four-year collaboration.

May 31, 2017

And it was the tag-team response to questions about the Kinder Morgan pipeline expansion that most revealed how Horgan and Weaver might handle the political problem with Alberta and fellow NDP Premier Rachel Notley.

“I haven’t spoken to Rachel directly,” said Horgan, whose past dealings with the Alberta premier put the two on a first name basis.

Horgan said the Alberta premier, who is pushing hard for Kinder Morgan, is rightly waiting until the new government in B.C. is in place before reaching out.

“When that happens, we’ll have that conversation,” he said.

December 1, 2016

It was all very nice. But the gentle tone and tenor didn’t last very long.

For her part, Notley spent a good deal of time challenging the premise that a Green/NDP government in B.C. can stop the pipeline.

On Tuesday, the Alberta premier vowed at a news conference: “Mark my words, that pipeline will be built, the decisions have been made.”

When a reporter asked later that day about Notley’s pronouncement, Green Party Leader Andrew Weaver laughed out loud as Horgan lobbed the hot potato his way. (Source: CBC News)