Lower risk, less cash for B.C.
Northern Gateway project leader Janet Holder said Tuesday that if the pipeline company can reduce the project's risks to B.C., the financial fair share the province is seeking could also decline.
"We need to determine the level of risk to therefore determine the fair share," Holder told reporters following a lunchtime speech to the Prince George Chamber of Commerce at the Ramada. "Those two do come hand and glove."
An economic fair share is one of the most high profile of the five conditions the provincial government has imposed on any new heavy oil pipelines in B.C., including Northern Gateway's proposal to build dual diluted bitumen and condensate pipelines from northern Alberta to Kitimat.
Neither the government, nor industry have given any figures on what that fair share might entail but Premier Christy Clark and her Alberta counterpart Alison Redford have agreed that the money won't come from Alberta's oilsands royalties.
Holder said the pipeline company is still seeking more clarity from the province about the final four conditions, which include world-class land and marine spill response systems, appropriate First Nations consultations and the financial fair share.
"B.C. is going to have to help us understand what they mean by the other four conditions and how we can work towards fulfilling those conditions," Holder said. "We need to have the dialogue now with the B.C. government to ensure we are meeting what we believe are the right conditions."
Last month, a federal Joint Review Panel gave a positive recommendation, but suggested 209 conditions of its own. Federal Environment Minister Leona Aglukkaq is currently reviewing the report and is expected to make a decision along with her cabinet colleagues in June.
In the aftermath of the three-year environmental review process, Holder said Northern Gateway is now focused on examining the proposed conditions, engaging with First Nations groups and answering questions about the project from concerned citizens.
One of those concerned First Nations leaders, Carrier Sekani Tribal Council chief Terry Teegee, attended the event as a Chamber member and was interested in what Holder had to say. After hearing her speech, he remains unconvinced the Northern Gateway project is good for his people.
"What is Enbridge? Enbridge is essentially just a contractor for big oil and all they're contracted to do is put a pipeline through the province of British Columbia - nothing more, nothing less," he said.
He was pleased that some of the questions from the audience touched on some of the environmental concerns he shares.
"You can see that there's still a lot of concern from the general public in terms of oil spills and Enbridge's record," he said. "It's good to see that there are a lot of people whether it be the Chamber of Commerce or the general public that is bringing up these questions."
Teegee asked Holder how Northern Gateway would handle a rejection by the federal cabinet. Holder replied that the company would respect the process, but later told reporters that the company would carefully evaluate any rejection.
"It really depends on what's behind the no, we will respect that, but we will want to understand the reason and can we mitigate or make a change that will change that no to a yes," she said.
Teegee also wanted to know how the company would handle possible litigation by First Nations groups, including his own. If the federal government gives the project a green light in the coming months, Teegee said he expects a lawsuit will be filed shortly thereafter.
Holder said the company is expecting a court battle, but she's hopeful Northern Gateway and First Nations groups can reach a mutually beneficial resolution.
"Enbridge has been working for decades and decades with aboriginal communities along all our right of ways," Holder told reporters. "We've always managed to come to the right solutions for both parties and that's our objective, to work out differences."
During her 25-minute presentation, Holder also emphasized the economic benefits of the pipeline for Prince George. She said it will mean an injection of about $400 million into the regional economy during the construction phase, with food, lodging and fuel among the big ticket items. Machine shops and environmental engineering firms can also expect contracts and she said other service industries will see spinoff benefits.
"When you have a lot of people working in the area, they get their hair cut, they've got to buy groceries so those small businesses also see benefits," she said.
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