Enbridge wants local businesses and governments to support its request to push back the start date on the construction of the Northern Gateway pipeline.
The federal government approved the project in June 2014 with 209 conditions. The sunset clauses, which state that construction must begin Dec. 31, 2016 or approval for the project will expire, is one of those clauses.
Enbridge and Aboriginal Equity Partners, which represents the 31 First Nations and Métis communities in British Columbia and Alberta who have ownership in the project, sent a letter to the National Energy Board last month asking that the sunset clauses be extended for three years until Dec. 31, 2019.
The project is currently being challenged at the federal court of appeal. The lack of legal clarity makes investing in capital expenditures difficult, explained Sam Munckhof-Swain, who was speaking at the Morinville and District Chamber of Commerce AGM on Wednesday.
“We expect that to come any day, but we’re also anticipating that this will probably go to the next level, which is the Supreme Court of Canada, and that process takes about 18 months,” he said.
Many environmentalists and aboriginal groups oppose the pipeline, concerned about potential harm to wildlife along the B.C. coast.
The $7.9-billion project, if built, would carry up to 550,000 barrels of oil per day from Bruderheim to Kitimat, B.C., where a marine terminal would be built, giving Canada access to international markets through the Douglas Channel.
Currently, between 98 to 99 per cent of Canada’s oil is exported to the U.S.
If the country wants a better price – currently there is a 15 to 20 per cent discount on Canadian oil – it needs better access to tidewater, said Munckhof-Swain.
The pair of 1,178-kilometre pipelines (one carrying crude diluted with condensate to the coast, the other transporting the condensate back to Alberta) will pass through Sturgeon County, just north of Gibbons, Bon Accord, Morinville and RiviÄŤre Qui Barre, for approximately 70 to 75 km, generating tax revenue and jobs for the region.
The project will create an estimated 1,540 total construction jobs and 380 long-term jobs in Alberta.
The company has set aside $150 million in local procurement spending for the three counties along the first 70 km of the pipeline route and estimates another $27 million will be spent on regional goods and services.
Priority will be given to businesses within the direct vicinity of the pipeline route, said Munckhof-Swain. Interested parties can access the Northern Gateway Regional Skills and Business Database through the company’s website: gatewayfacts.ca/Benefits/Opportunities.
Chamber president Simon Boersma said he was looking forward to working with the three local governments on potentially drafting a letter of support.
Sturgeon County does not have an official position on the issue. A presentation by Enbridge will be held for council on June 14.
Mayor Tom Flynn said he would personally be supporting Enbridge’s extension request at that time.
“Enbridge does a good job at connecting with people and dealing with the environment. Pipelines have been proven and the technology has improved so much that they are by far the safest way to move any of those products,” he said.
Marcel Arcand, economic development officer and media spokesperson for the Alexander First Nation, indicated that chief and council needed to further study the issue before providing comment.
The Northern Gateway pipeline passes through both of the Nation’s reserves (the band also owns land near Fox Creek) for a combined total of approximately 15 km.
The Town of Morinville issued a similar statement.
The NEB will accept comments from the public on the extension of the sunset clause until June 27.
