The B.C. NDP government is planning new restrictions on the movement of diluted bitumen from Alberta through B.C. by pipeline or rail – restrictions that appear designed to try to halt the twinning of the Trans Mountain pipeline.
The government has announced “second phase” regulations that include restricting any increase in the transportation of dilbit “until the behaviour of spilled bitumen can be better understood and there is certainty regarding the ability to adequately mitigate spills.”
Diluted bitumen already moves through the Trans Mountain pipeline. It appears the new restrictions are not designed to capture the existing flow of bitumen from Alberta through B.C., but only increased volumes.
It’s not clear from the government’s new release just what it means by restrcitions, although within minutes of the news release going out, environmental groups and the Green Party were weighing in with prepared news releases of their own, cheering the new restrictions.
West Coast Environmental Law said the new restrictions were a “wake-up call” for Kinder Morgan Canada (TSX:KML).
“The proposed regulation should be a wake-up call for Kinder Morgan,” said WCEL executive director Jessica Clogg. “Significant and potentially insurmountable regulatory hurdles still face the Trans Mountain project.
“If a dilbit spill cannot be effectively and safely cleaned up, new B.C. regulations may prevent the company from ‘turning the taps on’ even if it is able to complete construction.”
The new restrictions being considered include requiring compensation for loss of public and “cultural” use of land impacted by spills from pipelines or railways and new geographic response plans.
"The people of B.C. need to know that there is effective spill management across the province and, in particular, for our most environmentally sensitive areas, including coastlines," George Heyman, minister of Environment and Climate Change Strategy, said in a press release.
"We believe spills should not happen. But if hazardous pollutants have potential to spill, our government will ensure that spillers must be prepared and able to fully mitigate the environmental damage before they proceed."
The government is seeking feedback on the new restrictions. The government is setting up an independent scientific panel to make recommendations to Heyman on the question of “if and how heavy oils can be safely transported and cleaned up, if spilled.”
Green Party Leader Andrew Weaver said he thinks the panel will confirm what he has asserted for years – there is no safe way to transport diluted bitumen.
“I look forward to the new panel providing complete, robust and accurate information on this matter to the minister that reinforces what which we already know - that there is no way currently to adequately respond to a spill of diluted bitumen,” Weaver said.
"Kinder Morgan is aware of the government’s announcement today and will actively participate in their engagement and feedback process," Kinder Morgan said in a statement.
"The expansion project’s approval by the Government of Canada followed a rigorous and lengthy regulatory process that included a thorough examination of the pipeline and products being shipped and there are conditions on the Project from both the National Energy Board and the BC Environmental Assessment Office related to diluted bitumen."
