Kennedy Stewart is the federal NDP's science and technology critic and MP for Burnaby-Douglas.

NDP critic suggests price to accept oil pipeline

$2.50 per barrel offer might sway communities, Burnaby MP Kennedy Stewart says

A federal NDP MP predicts Kinder Morgan will have to offer B.C. and affected communities hundreds of millions of dollars a year if it wants its Trans Mountain oil pipeline twinning to be seriously considered.

Kennedy Stewart, the federal NDP’s science and technology critic, said he expects the company to make a low-ball offer to satisfy the B.C. government’s demand for a share of benefits to compensate for the risk.

The Burnaby-Douglas MP estimates Kinder Morgan stands to earn $5 per barrel of oil it transports, so company profits on the 890,000-barrel-per-day dual pipelines could top $1.5 billion a year.

An offer to B.C. of a few cents per barrel shipped for a provincial benefits fund supporting first nations, affected communities and cleanup response measures would be far too low, Stewart said.

But he said a much more generous figure would have to be considered.

“If Kinder Morgan said $2.50 a barrel – half of the revenue would go to the province – you would take that back to the community and talk to the community about it,” Stewart said.

It’s one of the first suggestions from the ranks of pipeline opponents that a sufficiently attractive offer could trump environmental worries.

“I’m against this project. But I think you always have to keep your mind open when you’re looking at economics and then go back to your community with particular offers.”

Stewart said he didn’t pick the $2.50 per barrel figure – he says it arose through conversations with his constituents, who are seeking a series of commitments from Kinder Morgan, including assurances that no homes be expropriated, that temporary foreign workers won’t build the pipeline and that no construction will begin without local referenda.

Stewart noted he’s not in any position to negotiate, adding re-elected Premier Christy Clark will have to decide what price is fair.

“This is where this conversation is heading – how much does Kinder Morgan have to pay to put this pipeline through communities.”

Ben West, a ForestEthics campaigner opposed to transport of bitumen from the Alberta oil sands, said he was surprised by Stewart’s comments.

“There is no amount of money that would make this a good idea,” West said.

He said the environmental risk of a spill outweights any amount of financial compensation.

“The impact on our coast is too great and the potential impact on our economy if there was a spill is too great.”

West called the notion a “non-starter” because he doubts Kinder Morgan would ever offer anywhere near $2.50 a barrel.

Asked about the company’s plans to ensure Trans Mountain’s expansion benefits B.C., senior project director Greg Toth called B.C.’s demand for a fair share a “government-to-government” question.

He said local and regional benefits will come from the jobs in building and operating the new pipeline.

“We are looking at a community investment program at a local level,” Toth added. “What are the things we can do as part of the project to offset or mitigate the potential impacts of constructing the pipeline.”

Company officials wouldn’t comment on Stewart’s $2.50 suggestion, but reiterated president Ian Anderson’s statement last year that they look forward to discussing economic benefits for B.C. and are confident a collaborative approach will lead to an acceptable solution.

The TransMountain pipeline expansion was a major issue in the B.C. election when B.C. NDP leader Adrian Dix came out against a major jump in oil tanker traffic through Metro Vancouver, ahead of any formal application by the company.

Just Posted

Used election signs could serve as emergency shelters, candidate says

Langley council hopeful wants to build one-person foul weather shelters for homeless

Four-vehicle collision shuts down section of Highway 10 in Cloverdale

One driver transported to hospital with what looked to be non-life threatening injuries

Langley player to compete in first NCAA basketball tournament in Canada

Former Brookswood star Louise Forsyth to play in Vancouver Showcase

VIDEO: Scouts in Langley learn how to communicate during emergencies

Weekend event at Camp McLean part of worldwide Jamboree On The Air and Jamboree On The Internet

Canada Post strikes leaves small shops in the lurch as holidays approach: CFIB

Rotating strikes began in Victoria, Edmonton, Halifax and Windsor

Aldergrove men’s soccer action photos

Aldergrove United Soccer Club’s Div. 4 Rovers in action versus the visiting Wakanda FC .

‘Violent’ B.C. man wanted on Canada-wide warrant could be in Lower Mainland

RCMP say the man has likely made his way to the Lower Mainland or another community

CFL playoff picture still muddled heading into weekend action

League revealed last week no fewer than 64 potential playoff permutations

New monitoring of vessel noise impact on endangered whales announced

Federal government to monitor underwater ship and mammal noise in B.C.’s Salish Sea

Three men charged in Alberta man’s murder will go straight to trial

The three men are charged with first degree murder in the death a 20-year-old from Alberta.

Aldergrove Kodiaks take narrow loss to Wolf Pack

Kodiaks took a 4-5 loss in the dying minutes of the third period against PJHL’s leading team

Vancouver cops, four-legged pals pose for police dog calendar

Proceeds go to fighting cancer and helping sick kids

Most Read