PRO­VIDE FI­NAN­CIAL AS­SUR­ANCES

Alberta Oil - - OIL SANDS REPORT -

Trans Moun­tain must sub­mit a plan, at least six months be­fore ap­ply­ing to open the new line, that guar­an­tees fi­nan­cial re­sources are in place to pay all ac­ci­den­tal oil-re­lease costs, in­clud­ing for cleanup, re­me­di­a­tion and all costs re­lat­ing to the non-use of pub­lic re­sources in the event of a spill. The Fi­nan­cial As­sur­ances Plan must in­clude an ir­rev­o­ca­ble let­ter of credit that makes avail­able funds that are sep­a­rate from Trans Moun­tain’s day-to-day business ac­tiv­i­ties in the event of a spill or ac­ci­dent. Ad­di­tion­ally, third-party li­a­bil­ity in­sur­ance must be in place and those guar­an­tors must pos­sess cash and as­sets worth sev­eral times more than the li­a­bil­ity as­sumed in the Trans Moun­tain guar­an­tee.

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