Process for permits ‘ineffective’, pipeline firm tells hearing

Kinder Morgan Canada Inc. staff described the City of Burnaby’s process to obtain municipal permits as “opaque” and “ineffective” to a National Energy Board hearing called to resolve delays stalling the $7.4-billion Trans Mountain pipeline expansion.

“We are still unclear of what is required to obtain approval,” said Paul Wearmouth, noting there was no active management to facilitate the permitting process for four sites where the company needed to do work to accommodate the pipeline expansion.

Michael Davies, vice-president of operations, said the company worked with all municipalities affected by the project, but “it was difficult to work with Burnaby.”

“The process is opaque and we don’t see a conclusion to it,” he told an NEB panel chaired by David Hamilton.

The city declined to provide information about which personnel and departments were in charge, or to clarify what needed to be done to apply for permits, Davies said.

The national energy regulator kicked off two days of hearings in Calgary after Kinder Morgan complained Burnaby was using stalling tactics to delay the project, increasing costs and potentially resulting in its collapse.

The project has spent $800 million so far and “if faced with unreasonable regulatory risks to secure necessary permits, authorizations or waivers, it may become untenable for TM’s shareholders and lenders to proceed,” the company said in documents filed with the regulator.

Trans Mountain asked the NEB to issue an order declaring that certain sections of Burnaby’s bylaws do not apply to work the company will carry out at its Burnaby Terminal and Westridge Marine Terminal, or its use of a temporary worksite.

Burnaby has been a staunch opponent of the pipeline expansion, which was approved by the NEB and by the federal cabinet a year ago. It is now challenging the permit’s approval in court.

Lou Pelletier, Burnaby’s director of planning, told the hearing that the city’s staff has found it hard to make progress on Trans Mountain while the two sides are in court.

Kinder Morgan needs the permits so it can proceed with work to expand its Burnaby and Westridge terminals to accommodate more oil storage and more tankers.