B.C. eyes surcharge on flow of Kinder Morgan oil

A $5 per barrel toll Kinder Morgan’s post-expansion Trans Mountain pipeline would raise close to $1.4 billion annually

Environment Minister Terry Lake says B.C. may pursue the idea of a per barrel levy on oil that would flow through a twinned Kinder Morgan pipeline at upcoming regulatory hearings into the project’s business terms.

He said money raised from a levy on the oil could fund a much-enhanced oil spill prevention and response system.

“I’ve asked staff in our ministry and in energy to take a look at this,” Lake said in an interview. “We want to make sure if there’s a role for us, we look at that. We haven’t landed on that decision yet.”

Those National Energy Board hearings into Kinder Morgan’s proposed rate structure with its customers would happen relatively soon – perhaps starting early next year – and are different from separate hearings on the actual pipeline twinning project, which are at least two years away following a formal application.

Federal NDP MPs last month said they will intervene in the upcoming hearings and raised the idea of asking the NEB to add a surcharge to the rates oil shippers pay Kinder Morgan to generate emergency response funds or perhaps to raise money to benefit First Nations.

Lake noted Washington State already has a levy for emergency response, collected on each barrel Kinder Morgan ships through a spur pipeline from Abbotsford to U.S. refineries.

He stressed the concept of a safety fund is separate from the idea of a legacy fund that brings B.C. more of the benefits that accrue from allowing the export of heavy oil through the province.

Premier Christy Clark has said benefits sharing with B.C. is one of five preconditions for the province to consider any new heavy oil pipeline – either Enbridge’s Northern Gateway line or Kinder Morgan’s twinning.

Alberta premier Alison Redford said her province won’t share oil royalties with B.C.

But Alberta’s Opposition leader suggested B.C. be compensated through a different mechanism, such as a $5 toll on each barrel of oil that moves through the pipeline.

A $5 toll on the 525,000 barrels that would flow daily through Enbridge’s pipeline would generate $960 million a year.

The same rate charged on Kinder Morgan’s post-expansion Trans Mountain pipeline, would move 750,000 barrels daily, would raise close to $1.4 billion annually. Currently, Trans Mountain moves 300,000 barrels a day.

Lake said it’s not yet clear if B.C. can participate in the first round of NEB hearings.

“If there’s some way we can participate in a meaningful way that protects B.C.’s interests, we look forward to doing that.”

– Surrey North Delta Leader

Just Posted

High winds could lead to dangerous snowmobiling conditions

Advice for staying safe on the mountains Family Day weekend

Clearwater Library hosting open house

Event takes place Feb. 15 from 2—4 p.m.

Province announces $100-million grant funding for Northwest communities

The Northern Capital and Planning Grant will go to four regional districts and 22 municipalities

Road conditions for Feb. 15

Slippery sections on Highway 5

Trudeau’s principal secretary, Gerald Butts, resigns amid SNC-Lavalin furor

Butts categorically denies the accusation that he or anyone else in the PMO improperly pressured former attorney general Jody Wilson-Raybould

Lost a ring? This B.C. man will find it for you

Chris Turner founded The Ring Finders, an international directory of metal detector hobbyists

Poverty coalition has high hopes for B.C. poverty reduction strategy

Funding allocation expected to be released with 2019 budget

‘How did we get here?’: B.C. mom of transplant recipient worries about measles outbreaks

Addison, 7, cannot get a live vaccine because she has a heart transplant

NDP Leader Jagmeet Singh calls for public inquiry over SNC-Lavalin questions

Vancouver member of Parliament Jody Wilson-Raybould resigned from cabinet last week

Canadian airlines waiting for guidance from Ottawa over X gender option

Major U.S. airlines said they will change their process so passengers can identify themselves along non-binary lines

Moose Hide campaign takes message to Canadian schools

Campaign launches new K-12 education platform

‘Violent’ B.C. man wanted on Canada-wide warrant

Prince George man with ties to Vernon sought by police

Homicide police investigate assault turned deadly in Surrey

60-year-old man died at hospital after assault

Most Read