Burnaby report suggests fuel surcharge to consumers funding Kinder Morgan pipeline

Vancouver, BC, Canada / (CKNW AM) AM980

Burnaby mayor Derek Corrigan’s report from an independent economist alleges that the National Energy Board approved a fuel surcharge to oil companies, which was in turn charged to consumers, providing Kinder Morgan with a pre-approved $136-million war chest to help push its new pipeline through Burnaby.

Corrigan says that the money provided by the National Energy Board to Kinder Morgan doesn’t do anything to protect Burnaby residents from any risk involving a potential pipeline.

“They take absolutely no risk,” said Corrigan. “This is all free to the shareholders of Kinder Morgan. All the risk goes to the local government who could be impacted, so this is not a happy situation.”

In a release from the city of Burnaby, the study conducted by economist and former ICBC CEO Robyn Allan examines previous NEB hearings into Kinder Morgan’s application to expand the Trans Mountain pipeline and tank farm, and investor statements, and confirms that Kinder Morgan received NEB approval in 2011 to charge a $1.45 per barrel surcharge on oil shipped through the existing pipeline to fund the current application.

Allen says in the release: “Consumers are funding the security for Kinder Morgan investors, but where is the funding for people whose homes, schools, and businesses are at risk?”

Corrigan adds that local governments will have to look towards taxpayers to pay their own costs to protect themselves.

 

Comments

  1. This is direct from the NEB’s website:

    “The NEB’s purpose is to promote safety and security, environmental protection and efficient energy infrastructure and markets in the Canadian public interest within the mandate set by Parliament in the regulation of pipelines, energy development and trade.”
    Underscore ,.

    If this story is factual, what does it say for the NEB?

  2. So they put on a surcharge to build up a reserve to pay for the pipeline expansion – what’s the problem ? This is good business practise. !

    Who else besides consumers is ultimately going to pay for the expansion ?

    If any one expects the NEB to block this project – they are delusional !

    • ChrisM_18

      “So they put on a surcharge to build up a reserve to pay for the pipeline expansion – what’s the problem ? This is good business practise. !”

      Lol, you didn’t read the article.. :-)

      • actually I did read the article

        Kinder Morgan received NEB approval in 2011 to charge a $1.45 per barrel surcharge on oil shipped through the existing pipeline to fund the current application.

  3. Trevor: Any suggestions as to where the refineries would be built? The same people who oppose the pipelines will oppose the refineries. Anyone who suggests building new refining capacity in Canada is either ignorant beyond belief and being dishonest. Canada loses billions in economic costs every year because the existing systems for getting petroleum products to where they are wanted are ineffective and inefficient. So, there has been a massive increase in using trains to transport petroleum products-terribly inefficient and not nearly as environmentally friendly as pipelines.

    Robyn Allen is not an “independent economist” Derek Corrigan and Allen are both NDP types and Allen has always opposed pipelines and has been very vocal in doing so. So, someone who opposes pipelines has written a report that opposes pipelines. This is news?

    • Yes , how about at source.
      When oil is refined into it’s various products , it’s much easier to control.
      Why are you and others so bent on a pipeline west and tankers plying the treacherous waters off out coast.
      Have you even been there to see where these tankers would sail?
      If we process this product in Canada we will all benefit 10 times as much than selling cheap Bitumen to Communist China.
      Something you don’t know is it was the plan to build a refinery in Alberta until Harper allowed the Communist Chinese companies to buy up major oil companies in Canada then it all changed.
      We could still say no to the Northern Gateway pipeline and refine it here.
      I hope you get the point now John.

      • “Something you don’t know is it was the plan to build a refinery in Alberta until Harper allowed the Communist Chinese companies to buy up major oil companies in Canada then it all changed.”
        Absolute nonsense Trev . . . they bought ONE oil company in Alberta, Nexon, that has the majority of its business outside of Canada.

        So you are for building a Dozen Pipelines from Alberta to carry all the products from the refineries to the coast . . . yes !

        “Tankers plying trecherous waters?” There are dozens of tankers out there TODAY Trev . . . get informed.

  4. Absolutely obvious that neither Robyn Allen or Burnaby Mayor Corrigan has a clue in how business or capitalism works. These two far left socialists need to go back to school and get an education.

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