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

5 tips for talking to your kids about cannabis

Health officials recommend sharing a harm reduction-related message.

Craig Lepoidevin looks to win a seat on Fraser Lake council again

Lepoidevin is prepared to devote all his time to improving the lot of the village

Steve Little is running for re-election to district council

His main priorities are youth and sports in the community

Village councillor Sarrah Storey is running for mayor of Fraser Lake

The volunteer and councillor started the food share and Walk and Roll programs in the community

Lots agreed upon at Vanderhoof mayoral debate

Incumbent Mayor Gerry Thiessen and his opponent, Justus Benckhuysen, see eye-to-eye on many issues

Secret supper clubs test appetite for cannabis-infused food ahead of legalization

Chefs are eagerly awaiting pot edibles to become legal in Canada

Private marijuana stores should shut down, Mike Farnworth says

B.C. has approved 62 licences, but they still need local approval

HPV vaccine does not lead to riskier sex among teen girls: UBC

Girls are less likely to have sex now than they were a decade ago

Koreas agree to break ground on inter-Korean railroad

The rival Koreas are holding high-level talks Monday to discuss further engagement amid a global diplomatic push to resolve the nuclear standoff with North Korea.

Flash floods kill at least 7 people in southwest France

Flash floods have left several people dead in southwest France, with roads swept away and streams become raging torrents as the equivalent of several months of rain fell overnight, authorities said Monday.

Trump to visit Florida, Georgia; search ongoing for missing

The death toll from Michael’s destructive march from Florida to Virginia stood at 17.

Canadians widely unaware of accomplishments of famous women, poll suggests

A new poll suggests Canadians have a lot to learn about the accomplishments of some of the country’s most famous women.

Temporary access allowed for residents of landslide-threatened B.C. community

The district says areas of access to the community of about 54 homes could be expanded, depending on advice from a geotechnical engineer.

Joint inspection planned for missing journalist at Saudi Consulate

Turkish officials have said they fear a Saudi hit team killed and dismembered Washington Potst reporter Jamal Khashoggi

Most Read