Kinder Morgan reaps reward for handing over Trans Mountain

Canada purchases Trans Mountain pipeline project for $4.5B

Canadian Government to Buy Contested Oil Sands Pipeline

Prime Minister Justin Trudeau vocalized his support of the project, despite opposition to its potential environmental impacts.

The federal government can in theory step in and disallow any provincial laws that British Columbia might use to block the pipeline, but this provision in the Canadian constitution has not been used since the 1940s.

"Canada stands to sacrifice its worldwide reputation, irreplaceable iconic species like the Southern resident Killer Whales, and its commitments to meet its Paris Climate targets and to reconcile with Indigenous people - all while putting enormous risk on Canadian taxpayers".

The ad appeared following Prime Minister Justin Trudeau's announcement that the federal government will spend $4.5-billion to buy out the pipeline.

"CEPA is deeply concerned that the government needed to purchase the project for it to be built and to assert federal jurisdiction".

Finance Minister Bill Morneau has hinted there'll be additional costs to the Trans Mountain project, but says they'll be defrayed by revenue generated by the pipeline itself.

Discussing the plan on Tuesday, Finance Minister Bill Morneau said the government acted to remove political uncertainty and ensure the project goes forward as the summer construction season nears. In a statement, the BC NDP said that "today's announcement on Kinder Morgan's pipeline and tanker project doesn't change the risk of a [sevenfold] increase in tanker traffic - or the risk to our environment and economy from a diluted bitumen spill".

"It's a mess out there", said a Calgary industry source not authorized to speak publicly.

At Camp Cloud, the protest camp is expected to remain and operate as usual, says Makeda Martin, who was staying at the camp on Tuesday.

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The B.C. Chamber of Commerce welcomed the move, although it expressed concern about Canada's "broken" regulatory regime. Steven J. Kean, the president of Kinder Morgan, called it a "great day for Canada, for our customers and for our employees". However, just recently they made a decision to put hiring to a halt.

In 2007, Kinder Morgan reported to the National Energy Board that it valued the Trans Mountain pipeline system at $550 million. "I think that is what has happened here". It's actually better for Kinder Morgan than it is for Canada.

But the provincial government - elected previous year on a pledge to block the project - filed a legal case seeking jurisdiction to impose additional marine protection measures, such as capping future bitumen shipments, that would effectively derail the project.

"Make no mistake: this is an investment in Canada's future".

Trans Mountain stirred an unusual public fight between neighboring provinces.

Denouncing the project as a grave threat to Indigenous lands and Canada's water supply, green groups and climate activists vowed to do everything in their power to thwart the pipeline expansion.

Alberta Premier Rachel Notley took a Trans Mountain victory lap on the grounds of the legislature Tuesday while her political opponents questioned whether the province has won anything and, if so, at what cost. The contribution will convert into equity in the pipeline.

Ottawa has the constitutional authority to build interprovincial projects like pipelines, but Premier John Horgan has gone to court to get a judge to weigh in on whether B.C.'s jurisdiction for the environment would allow him to regulate what flows through the pipeline.

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