Pipeline Politics

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Pipeline Politics

• Poli 404D Week 8

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Burnaby Oil Spill

• Chevron Refinery in Burnaby
• Served by Kinder Morgan Transmountain Pipeline
  from Edmonton

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Agenda

• pipelines problem characteristics
• development trends
• policy regime
• actors
• institutions
• ideas
• The Enbridge Gateway Case
• todays debate question Can the Enbridge Gateway
  Pipeline be approved and constructed without the
  consent of the CSTC and Coast First Nations

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Pipeline Technology Characteristics

• abundance
• energy density
• cost per unit energy
• portability
• reliability
• process technology
• ease of use

• geographic distribution
• ownership
• familiarity, embeddedness
• public acceptability
• environmental effects
• safety

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Pipeline Technology Characteristics (2)

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Trends in Pipeline Development

• 1977 Berger Inquiry MacKenzie Valley Pipeline
• epochal development in Canadian environmental
  politics
• first high profile use of environmental
  assessment
• popularized ideas we now know as sustainable
  development
• gave real voice to aboriginals
• led to decision not to proceed for the time being
• 1970s - Kitimat Pipeline Company proposal a oil
  pipeline terminal at Kitimat withdrawn after EA
• 1980 West Coast Oil Ports Inquiry under the
  direction of Dr. Andrew R. Thompson
• If a marine terminal were developed at Kitimat,
  oil spills on the coast of B.C. would inevitably
  occur

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Reminder Policy Regime Framework

• Actors individuals and organizations, both
  public and private, that play an important role
  in policy
• interests, resources, strategies
• Institutions rules and procedures that allocate
  authority over policy and structure relations
  among actors
• Ideas causal and normative beliefs about the
  substance and process of policy

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Policy Regime InstitutionsProvincial

• Cabinet government centralized rule centred on
  the premier
• environmental assessments required before
  approval
• increasing reliance on multi-stakeholder
  processes
• increasing role for First Nations

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Policy Regime InstitutionsIntergovernmental
and International

• Interprovincial transport National Energy Board
• Issues Certificates of Public Convenience and
  Necessity can attach conditions
• Hearings required for gt 40 km
• Is responsible authority for the purposes of EA
• Environmental assessment CEEA -applies to
  anything that requires federal approval or permit
• Fisheries and marine environment DFO
• Marine safety Transport Canada (DFO and TC
  jointly to TERMPOL review for tanker routes and
  terminal safety)

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Policy Regime InstitutionsInternational

• Construction across US border requires US
  government approval
• State Department issues permits

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Policy Regime Actors Government of BC

• Ministry of Energy, Mines and Petroleum Resources
  - long term energy planning
• BC Environmental Assessment Office
• defers to NEB process under CEAA on
  interprovincial pipelines

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Policy Regime ActorsFederal Government

• National Energy Board
• Environment Canada
• Transport Canada
• Department of Fisheries and Oceans

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Policy Regime ActorsIndustry

• pipeline companies
• energy companies wanted to ship
• energy companies wanting to receive (e.g.,
  refineries)
• associations
• CPPA
• Canadian Energy Pipeline Association
• Canadian Pipeline Environmental Committee

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Policy Regime ActorsEnvironmental Groups
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Policy Regime ActorsFirst Nations

• location of Canadian energy resources and
  geographic reach of pipelines makes aboriginal
  issues inevitable

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Policy Regime Ideas

• NEB standard is public interest
• sustainable development
• plan, assess, mitigate, approve

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Enbridge Gateway Pipeline

• From Edmonton to Kitimat
• Transport crude from oil sands to Asian and
  western US markets
• Transport condensate from other markets to
  Edmonton to help upgrade oil sands
• Marine facility in Kitimat

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Route Map 1150 km
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Route Map 1150 km
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Environmental Concerns

• construction and operation soils surface and
  ground water air quality noise vegetation
  wildlife and fish and fish habitat.
• port development and operational activities air
  pollution water and contaminant discharges
  dredged material and contaminated sediment
  disposal ship and port solid waste generation
  and oil spills
• tankers - air pollution and ballast water
  discharge.
• oil spill most significant risk While various
  measures can be taken to reduce the magnitude and
  frequency of spills, previous studies suggest
  that the risk of a catastrophic spill cannot be
  eliminated.
• source Van Hinte SFU thesis for Coastal First
  Nations

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Environmental Concerns Tanker Routes
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Socio-economic concerns

• significant short-term increases in employment
  and population, economic and business
  development
• significant during construction
• modest during operation except at marine terminal
• may produce negative effects on rural communities
• impact and benefits agreements

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Regulatory Process and Status

• CEAA requires elaborate assessment,
  demonstration of awareness of concerns,
  consideration of mitigation measures, but project
  can still be approved if justified
• September 2006 Minister of Environment referred
  process to an independent review panel for
  assessment under CEAA

• (a) where, taking into account the implementation
  of any mitigation measures that the responsible
  authority considers appropriate,
• (i) the project is not likely to cause
  significant adverse environmental effects, or
• (ii) the project is likely to cause significant
  adverse environmental effects that can be
  justified in the circumstances,
• the responsible authority may exercise any power
  or perform any duty or function that would permit
  the project to be carried out in whole or in part

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Carrier Sekani Study (1)

• 1. The Carrier Sekani have unextinguished
  aboriginal title and rights which will be
  significantly infringed along a substantial
  portion of the proposed pipeline right of way.
• 2. The direct impacts of the proposed Enbridge
  Gateway pipeline on the Carrier Sekani are
  potentially numerous and serious, and of a
  magnitude that will likely be unacceptable to
  Carrier Sekani members and communities.
• 3. Regulatory authorities should not proceed
  further with this project unless free, prior and
  informed consent is received from the CSTC and
  its member communities.

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Carrier Sekani Study (2)

• 4. There will be cumulative and indirect impacts
  additional to these direct impacts, which will
  combine with existing developments, mountain pine
  beetle impacts, existing loss of fish stocks and
  future development in the Bowser and Nechako
  Basins, which cumulatively are also likely to be
  unacceptable. These cumulative and indirect
  impacts must be studied, considered, and properly
  accounted for in any regulatory decisions.

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Carrier Sekani Study (3)

• 5. The benefits from the pipeline to the Carrier
  Sekani will be very limited as presently
  proposed, and will not be sufficient to outweigh
  the impacts of the pipeline on the Carrier
  Sekani, and the infringements to their aboriginal
  title and rights.
• 6. Considering the magnitude of the impacts and
  the limited benefits, the Chiefs of the Carrier
  Sekani should determine with their communities
  whether approval of the CSTC should be refused
  for this pipeline, including any further work on
  CSTC lands.
• 7. The existing studies done to date have not
  adequately considered CSTC interests.

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Carrier Sekani Study (4)

• 8. CSTC consent to any further exploratory or
  regulatory work should be conditional upon
• a) CSTC completion of a Phase II AIUS once
  Gateway has fully shared its baseline data and
  studies
• b) Further assessment of the archeological and
  cultural resources along the proposed pipeline
  corridor, to be conducted by the CSTC with
  adequate funding
• c) Completion of a First Nations-led review
  process with the other First Nations along the
  corridor
• d )Meaningful involvement in the decision-making
  processes of regulatory bodies.

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Policy Evaluation is it sustainable?

• Debate
• Can the Enbridge Gateway Pipeline be approved and
  constructed without the consent of the CSTC and
  Coast First Nations

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