WHAT’S FUELLING OUR ECONOMY: Is Kinder Morgan’s Proposed Pipeline Inconsistent with New Economic Trends and Realities?

Report Compiled by Liz McDowell, Tarah Stafford and Felicity Lawong

Conversations for Responsible Economic Development (CRED)

November 2016

Executive Summary

British Columbia is leading economic growth in Canada, largely due to a diverse and thriving economy. Extractive industries, including oil and gas, play a surprisingly small role. The biggest sectors are real estate, construction and wholesale and retail trade.

Despite regional variation, Canada’s economy has some clear parallels to BC. Wholesale and retail trade and construction are thriving nationally, and the majority of the country’s jobs are found in wholesale and retail trade and the health sector, like in BC. Even before the price of oil began its steep decline in 2014, this sector was responsible for just 1% of employment across Canada, and provided very low tax contributions. It is the finance and insurance industries, as well as the manufacturing sector, that contribute the largest tax revenues toward social services.

The federal government has been faced with a difficult decision on whether or not to invest in the Kinder Morgan pipeline. Our analysis shows that the pipeline would create few jobs, minimal tax revenues and would not impact energy security or guarantee a long-term solution to Alberta’s ailing economy. The pipeline also comes with the additional concerns (and costs) of an oil spill. Beyond the direct clean-up costs, the indirect economic impacts would be long lasting, impacting sectors from tourism to agriculture.

It’s crucial that the federal government reject the KM pipeline and instead support sectors in BC that create family- sustaining jobs, make significant tax contributions, insulate the regional economy from boom-and-bust cycles, and promote economic growth compatible with Canada’s national climate commitments.

Our key findings:

  • BC Jobs: Technology, tourism, construction, film and television each create more jobs than oil, gas, and mining combined.
  • National trends are similar to BC: Oil and gas have a bigger role in Canada as a whole than in BC, but real estate, finance and manufacturing contribute more in federal corporate tax.
  • More people across Canada work in the beer economy than in the oil sands.
  • The proposed Kinder Morgan pipeline would only create 50 permanent jobs and generate an insignificantamount of taxes federally and provincially in BC.
  • A large oil spill could have a $1.2 billion impact on BC’s economy.
  • Canada’s emissions growth between 1990 and 2014 was driven primarily by increased emissions from mining and upstream oil and gas production and transport. Now that Canada has committed to a national climate plan, emissions from extractive sectors must be taken into consideration when considering project approvals.
  • Labour market outlook: Neither activity nor employment in Canada’s oil and gas industry will recover to levels prior to 2014’s steep decline in the industry.

Read more: http://credbc.ca/wp-content/uploads/2016/11/Whats-Fuelling-Our-Economy_KM_WEB.pdf

How Canada’s pipeline watchdog secretly discusses “ticking time bombs” with industry

By Mike De Souza in News, Energy | July 5th 2016

Canada’s pipeline watchdog has given two of North America’s largest energy companies up to six months to fix what industry insiders have described as a series of “ticking time bombs.”

The National Energy Board waited eight years after U.S. regulators raised the alarm about substandard materials, finally issuing an emergency safety order in February. At least one Canadian pipeline with defective materials blew up during that period.

Newly-released federal documents show that Texas-based Kinder Morgan and Alberta-based Enbridge are both looking into the use of defective parts purchased from Thailand-based, Canadoil Asia, that recently went bankrupt. But the companies were not immediately able to say where they installed the dodgy parts. It’s a problem that also struck Alberta-based TransCanada, which had defective materials in its own pipelines, including one that blew up in 2013.

NEB finally orders safety review of substandard parts

Read more…

City of Vancouver launches judicial review of Kinder Morgan’s pipeline expansion

City of Vancouver

News Release

June 20, 2016

City launches judicial review of Kinder Morgan’s pipeline expansion

The City of Vancouver has filed with the Federal Court of Appeal an application for a judicial review of the National Energy Board’s (NEB) decision to conditionally recommend Kinder Morgan’s pipeline expansion project (the “Project”), citing that it is both invalid and unlawful. Throughout the NEB review process, the City and many other intervenors have raised significant concerns about its flawed process which excluded any opportunities for oral cross-examination of experts and evidence, provided inadequate information sharing and failed to properly consult affected communities along the pipeline and tanker route.

“An expanded Kinder Morgan pipeline is not in Vancouver or Canada’s economic or environmental interest,” says Mayor Gregor Robertson. “The National Energy Board failed to properly and thoroughly consult local communities on the pipeline and tanker route, ignoring key pieces of scientific evidence showing the potential for real and catastrophic damage to local waters in the event of an oil spill, and the impact of an expanded pipeline on greenhouse gas emissions both locally and abroad. Vancouver still has significant concerns about Kinder Morgan’s expansion and we’ve concluded it’s simply not worth the risk to our environment or economy.”

In the application, the City outlines that the NEB failed to comply with the requirements of the NEB Act by ignoring key pieces of evidence submitted by the City as part of the process which supported the City’s position that:

Read more…

Big oil vs. big whale: Will pipeline trump iconic orca?

‘Species at risk’ designation could mean unique court challenge for NEB and Trans Mountain project

By Jason Proctor, CBC News

If you don’t live on the West Coast, perhaps it’s hard to appreciate just how poorly approving an oil pipeline at the expense of an endangered population of killer whales might play out.

To give it an Eastern perspective, it’s a bit like saying Bonhomme might have to die to make way for a new museum dedicated to Stephen Harper’s legacy.

In approving Kinder Morgan’s Trans Mountain pipeline expansion this week, the National Energy Board said it weighed the benefits of the project against its burdens.

Among the “adverse effects” deemed to be most “significant” were those likely to impact a population of about 80 southern resident killer whales found off the coast of Vancouver Island.

Read more…

West Coast Tells Ottawa: Reject Trans Mountain Expansion

The West Coast brought fighting words to Ottawa today, asking the federal government to deny final approval of the proposed Trans Mountain Pipeline expansion.

A delegation from Vancouver said it came to Ottawa to urge the government to “say a definitive no” to Kinder Morgan’s proposal to twin its existing line from Alberta to British Columbia.

Meanwhile, Green Party leader Elizabeth May said she would be seeking a judicial review of the National Energy Board’s approval process.

The regulator recently approved the project, and it now waits final approval from Ottawa.

The delegation composed of Vancouver Mayor Gregor Robertson, Chief Maureen Thomas from the Tsleil-Waututh Nation, Chief Ian Campbell from the Squamish Nation, and Councillor Howard Grant from the Musqueam Nation.

All the First Nations are located near Vancouver, and their representatives said the Liberal government’s actions on the pipeline would prove to be a test of its sincerity in reconciliation with First Nations.

“We are here representing our citizens on the West Coast; our consent is required on this project,” Robertson said. “The vast majority in Vancouver and the Lower Mainland do not support the Kinder Morgan expansion pipeline project.”

Read full article here

Ecojustice launches legal challenge to NEB approval of Kinder Morgan Expansion

Environmental groups launch court challenge over NEB’s Kinder Morgan report

Kinder Morgan recommendation puts one of Canada’s most iconic endangered species, the Southern Resident killer whale, at risk of harm

VANCOUVER – The National Energy Board (NEB) broke the law when it failed to apply the Species at Risk Act in its final report on Kinder Morgan’s Trans Mountain pipeline project, environmental groups say.

Ecojustice lawyers, representing Living Oceans Society and Raincoast Conservation Foundation, have filed for a judicial review of the NEB’s report that recommended the federal Cabinet approve the Kinder Morgan pipeline.  The groups argue that the NEB’s report is unlawful and used an overly narrow interpretation of the law to avoid addressing harm to Southern Resident killer whales and their critical habitat.

Read more…

Call on PM Justin Trudeau and Natural Resources Minister Jim Carr to defend our communities and stop the Kinder Morgan pipeline

The Harper-appointed National Energy Board just approved the Kinder Morgan TransMountain Pipeline despite widespread opposition from the communities it threatens.

We can still stop this pipeline. Prime Minister Trudeau added a step to the review process, promising to listen to communities and look at the climate impacts of this project.

Read more…

National Energy Board Report Trans Mountain Expansion Project May 2016

Canadian public interest The National Energy Board (NEB or Board) finds that the Trans Mountain Expansion Project (Project) is in Canada’s public interest, and recommends the Governor in Council (GIC) approve the Project and direct the Board to issue the necessary Certificate of Public Convenience and Necessity (CPCN) and amended CPCNs. Should the GIC approve the Project, the associated regulatory instruments (Instruments) issued by the Board would come into effect.

 

Read more…

When Council and residents of Burnaby prevent Kinder Morgan’s pipeline, is there another location being considered?

An article printed in the Delta Optimist on February 24 2016 revealed a plan lurking in the shadows for the Kinder Morgan Trans Mountain pipeline.

The article points out that Delta Council endorsed Burnaby’s request to the federal government to suspend the National Energy Board’s review of the Kinder Morgan’s proposed Trans Mountain pipeline expansion. Then it goes on to suggest Delta could be a fallback location.

Here is what Delta South MLA Vicki Huntington told the Optimist,

“I have no doubt the powers that be are reviewing the possibility of a pipeline to Deltaport. And the way that the minister of environment provincially has supported every major new development along the Fraser – from jet fuel to coal to natural gas – I have no doubt they will at least be sympathetic to such a proposal,” she said.

http://www.delta-optimist.com/news/delta-voices-concerns-over-pipeline-impacts-1.2182879#sthash.C9lMpFpV.dpuf