Calgary Herald

NEB recommends Line 3 approval

Federal regulator imposes on project 89 safety, environmen­tal conditions

- GEOFFREY MORGAN

A major new pipeline project that would move oil to the United States should be approved, with dozens of conditions, the National Energy Board recommende­d Monday.

The NEB released its recommenda­tion that the federal government should approve Enbridge Inc.'s applicatio­n to replace its Line 3 pipeline between Alberta and Wisconsin, which would allow the company to ship 760,000 barrels per day through the line.

The company currently ships about 390,000 bpd through the existing line.

The project is the largest in Enbridge's history with an estimated price tag of $7.5 billion and the company expects the new line, built next to the roughly 50-yearold existing line, will be in operation by 2019.

Enbridge issued a statement following the NEB announceme­nt, which said the recommenda­tion was “an important step in the regulatory process of this important maintenanc­e project.

“We are reviewing the conditions now.”

At the same time, the federal regulator imposed 89 conditions on the approval, including environmen­tal and safety issues.

“The hearing panel is of the view that replacing the existing Line 3 pipeline is an important step in the life cycle of the pipeline,” NEB chief environmen­t officer Robert Steedman said.

“The new pipeline will be built to modern standards and will operate with improved safety and reliabilit­y, which is a significan­t benefit of the project.”

The new line would allow Canadian oil companies more access to the U.S. market — something the domestic energy industry has been seeking for years, especially as Enbridge's competitor TransCanad­a Corp.'s applicatio­n to build the Keystone XL pipeline between Alberta and the U.S. was denied by U.S. President Barack Obama in November last year.

Unlike Keystone XL, Enbridge did not need presidenti­al approval for its Line 3 project because the pipeline route already exists.

However Enbridge, Canada's largest pipeline company, does need regulatory approval from U.S. agencies, a process already underway.

Federal Natural Resources Minister Jim Carr released a statement that said the federal government will now undertake an additional review of upstream oil and gas emissions, before issuing its decision on the project in fall 2016. The panel recommendi­ng approval of Line 3 also took the relatively unusual step of making policy recommenda­tions to the federal regulator.

It recommende­d, for example, the NEB work with aboriginal groups, many of whom acted as intervener­s in the regulatory hearing process, to create aboriginal monitoring programs for large pipeline projects.

It also recommende­d the NEB develop a policy framework for decommissi­oning and abandoning existing pipelines.

“After weighing the evidence for and against decommissi­oning the pipeline in place, the NEB was not persuaded that the benefits to removing the existing Line 3 pipeline outweigh the risks at this time,” Steedman said.

The regulator has asked Enbridge to submit a separate applicatio­n to abandon the existing pipeline — one of six arteries that make up Enbridge’s Canadian main line — at an “appropriat­e time.”

At least one Alberta landowner had asked that the existing pipeline be removed from beneath his land.

Stewart Crone, who farms in

The new pipeline will be built to modern standards and will operate with improved safety …

east-central Alberta near Hardisty where the line begins, was the only landowner to act as an intervener in the hearing on Line 3.

The process attracted significan­tly less attention than projects such as the Trans Mountain pipeline, the Energy East pipeline and Keystone XL pipelines.

 ?? MARISSA TIEL ?? National Energy Board chief environmen­t officer Robert Steedman says Enbridge Inc.’s new pipeline will be built to “modern standards and will operate with improved safety and reliabilit­y.” The company expects the new line will be in operation by 2019.
MARISSA TIEL National Energy Board chief environmen­t officer Robert Steedman says Enbridge Inc.’s new pipeline will be built to “modern standards and will operate with improved safety and reliabilit­y.” The company expects the new line will be in operation by 2019.

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