A new pipeline is coming. Certainly not today and maybe not tomorrow. And perhaps it won鈥檛 even be the Northern Gateway project.
But a new pipeline to pump Alberta bitumen to the West Coast for shipment to Asia is just a matter of time. At least that鈥檚 the impression you get reading between the lines in comments made by Alberta Premier Alison Redford and B.C. Premier Christy Clark Friday afternoon. Canada鈥檚 premiers had just wrapped up the annual Council of the Federation meeting when Redford and Clark said they would hold their own mini news conference. They invited reporters to join them outside under a gloriously sunny sky, which they no doubt considered an appropriate backdrop for their happy announcement.
鈥淲e鈥檝e appointed officials, our senior energy officials, to sit down and talk about how we can enable exports of 91原创 resources through British Columbia,鈥� said Clark. 鈥淎lison and I have been having this [discussion] together as premiers. We want to take the next concrete step in that journey and have our officials sit down and start really grinding through some of the details to find out where we can find common ground, where we disagree and where we need to try to work a little harder.鈥�
It鈥檚 a sunny announcement for pipeline supporters, but decidedly gloomy news for opponents.
Just to be clear, Clark isn鈥檛 approving any construction and she isn鈥檛 changing her opposition to the Northern Gateway project as it now stands. She isn鈥檛 even signing on to Redford鈥檚 91原创 Energy Strategy. Clark is merely setting up a working group to see if B.C. and Alberta can work out their differences over a pipeline, any pipeline. For Redford, though, this is a huge step forward.
Redford is happily dealing with a much friendlier Clark than she did a year ago. This year鈥檚 Clark commands a newly elected majority government 鈥� unlike the insecure Clark of last year, who left the Council of the Federation meeting in a huff.
Clark of 2012 issued five conditions for pipeline approval, including a demand that B.C. receive a 鈥渇air share鈥� of the fiscal and economic benefits of the Northern Gateway project.
Clark 2013 is sticking with those five demands, which also include an environmental assessment, world-class spill mitigation plans for land and water, and inclusion of First Nations. But Clark is no longer wielding the conditions as a weapon to bash Redford and win votes back home. Now, the conditions merely form the basis of a 鈥渟ocial licence鈥� necessary for development of natural resources.
鈥淲e understand in British Columbia how important it is that resources get to the coast,鈥� said a smiling Clark, standing next to a beaming Redford. 鈥淲e are getting our natural gas to the coast and off to Asia, hopefully selling it at a much, much higher price. We understand the economics of that. And Alberta understands that social licence is something that鈥檚 important for moving resources.鈥�
It鈥檚 still not clear how B.C. will get its 鈥渇air share鈥� of the economic benefits. B.C. officials point to a possible toll on pipeline companies or perhaps taxing bitumen if a proposed upgrader is built in B.C.
鈥淚 don鈥檛 know the answer to that and I wouldn鈥檛 accept that it鈥檚 necessarily the toughest condition to meet,鈥� said Clark, who is shifting the focus of her attacks from Alberta to Ottawa. 鈥淭here鈥檚 a lot of revenue that鈥檚 going to flow from the new incremental value from exporting heavy oil. So, I don鈥檛 know that that鈥檚 the hardest one.
鈥淚 think improving coast guard response is going to be a huge challenge; the federal government鈥檚 been stripping down coast guard response in British Columbia, not adding to it, so they鈥檙e going in the wrong direction on that.
鈥淚f we want to protect our coast, they鈥檙e going to have to step up to the plate in a big way on that.鈥�
There鈥檚 no deadline for the new Alberta-B.C. working group to issue a report, and it鈥檚 not focused on the Northern Gateway project, but on any trans-boundary project. That means it could take months, maybe much longer, for the deputy ministers from both provinces to figure something out. But Redford is happy, nonetheless.
