Skepticism greets pipeline report
Oilpatch, politicians concerned there could be more court challenges, delays
CALGARY Alberta energy executives and politicians are frustrated the Trans Mountain pipeline expansion will have another extensive regulatory review at a time when all other export pipelines out of Canada are full.
Natural Resources Minister Amarjeet Sohi announced Friday the 22-week, National Energy Boardlevel review of the pipeline’s impact on marine life on the West Coast as the federal government’s first corrective action prescribed by the Federal Court of Appeal. That will take until next February.
Last month, the appeal court overturned approvals for the pipeline because it found the NEB did not include an assessment of the project’s impact on tanker traffic and marine wildlife, and because of insufficient consultation with affected First Nations.
“Let me assure you, this government is committed to protecting the oceans and coastlines,” Sohi said at an event in Halifax. He said the federal government — which recently bought the pipeline for $4.5 billion — will present the $1.5-billion Oceans Protection Plan during the 22-week process.
Sohi described the new review process as “the right way” to address the tanker issue identified by the appeal court, but would not provide details on how and when it would address the second issue of insufficient Indigenous consultation.
“That will be part of a next step that we will be announcing shortly,” Sohi said.
The Calgary oilpatch, desperate to see a new pipeline built, was skeptical the new NEB review would be immune to more court challenges, which would further delay construction timelines.
“In today ’s Canada, nothing ever seems to be final,” said Gary Leach, president of the Explorers and Producers Association of Canada.
He also called the 22 weeks allotted to the review “generous,” and said both the industry and the Alberta government had been hoping for “a more accelerated track.”
Leach said, however, that the federal government “knows they can’t afford to have anyone question the thoroughness of the review process.”
Similarly, Alberta Premier Rachel Notley said she was “skeptical” those opposed to the pipeline would not challenge the NEB process and vowed to act — she didn’t specify how — if the review was delayed.
“We will not tolerate legal game playing,” Notley said.
“The regulatory timeline laid out today is actually reasonable and in line with what we knew was the best-case scenario,” but it would be a challenge to stick to 22 weeks, Notley said.
Neither Notley nor Sohi would say when they expected construction would resume on the project. Sohi said he didn’t want to provide construction timelines until First Nations consultations had been established.
The Tsleil-Waututh First Nation, which challenged the legality of the pipeline approvals, said in a statement that the consultation process would take longer than 22 weeks and it wanted input.
“Any plan for additional review must be developed in collaboration with the Nation. Tsleil-Waututh looks forward to immediate engagement on the nature and scope of the new National Energy Board review of marine shipping,” it noted.
Clear construction timelines are important not only for the project and the energy industry, but the political future of the NDP government, said Mount Royal University political science professor Duane Bratt. “If she could get this project under construction, then she’d have a fighting chance,” Bratt said. He called a 22-week NEB review timeline “aggressive” and said it could be difficult to maintain.
“I think that fighting chance is over now,” he said, noting that Alberta has a legislated window between March and May 2019 for a provincial election.
“Ultimately, I think the pipeline will be built, but not in her timeline,” he said.
Notley ’s NDP was trailing Jason Kenney’s United Conservative Party by 17 per cent in a Mainstreet Research poll conducted over the summer.
Notley declined to discuss the impact of the pipeline delays on her electoral chances, saying that she was focused on governing and working to get the pipeline approved and built.
Ultimately, I think the pipeline will be built, but not in (Alberta Premier Rachel Notley’s) timeline.