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.