While all manner of environmental catastrophes have been contemplated during months of hearings into Enbridge鈥檚 Northern Gateway pipeline plan, the company itself raised the possibility of a disaster of a different sort on Monday.
During its closing oral argument in Terrace before the federal joint review panel, the company posed the threat of an economic nightmare if the controversial heavy-oil line from Alberta to the coast is not approved.
Lawyer Richard Neufeld (not the B.C. senator of the same name) said the risk-management issues that dominated the B.C. hearings should be considered in terms of the financial and economic risks as well.
The line would provide enormous protection against the economic risk of having a major 91原创 industry dependent on a single market, he said.
He asked what would happen if the U.S. decided to stop importing 91原创 oil. The heavy bitumen coming out of the Alberta oilsands has become particularly controversial in the U.S. as well as Canada.
The company said a move like that would be 鈥渁n economic catastrophe of unprecedented proportions.鈥�
The estimated $30 billion lost by the current inability to ship to more profitable markets offshore would be a 鈥渄rop in the bucket鈥� compared to the potential losses if the U.S. market was closed.
It鈥檚 a clever argument that plays on the worries about stranded 91原创 oil. Natural Resources Minister Joe Oliver fretted publicly about that potential last month.
But both the government and the Opposition in B.C. appear serenely indifferent to the worries. Although Premier Christy Clark said she鈥檚 open to considering oil pipelines if five conditions are met, B.C. rejected the Northern Gateway proposal 鈥� in its current form 鈥� last month.
There was no sign Monday the company鈥檚 summation changed any minds.
B.C.鈥檚 final argument trashed Enbridge鈥檚 track record of spills and questioned the company鈥檚 contingency plans for spills or leaks in terrain that is much more difficult than the lands on which the firm鈥檚 pipeline currently run.
鈥� 鈥楾rust me鈥� is not good enough,鈥� the B.C. submission stated.
It also discounted to some extent the economic argument in favour of the line, saying the revenues to governments are overstated because they don鈥檛 include the costs to government if such a line was built.
NDP environment critic Spencer Chandra Herbert was also unmoved by the company鈥檚 final appeal.
He said the company feels it doesn鈥檛 need to answer questions and the attitude is: 鈥淛ust approve it and you鈥檒l see how good we are.鈥�
But he said the project, perhaps slightly modified, could still be approved by the federal government.
The company wouldn鈥檛 be spending tens of millions of dollars on the idea without getting a signal that the line is possible, he said.
Some points from Enbridge鈥檚 appearance before the tribunal:
鈥� Concern about wildlife impacts from a spill are overblown. They recover faster from oil spills than they do from other human interventions, such as logging or overfishing.
鈥� The company rejected the B.C. government criticism, saying risk-assessment is the foundation of the whole proposal. 鈥淲hen people say the project hasn鈥檛 evaluated risk, what they mean is; 鈥榊ou haven鈥檛 looked at risk the way I want you to.鈥� 鈥�
鈥� Enbridge argued against prescriptive requirements, such as directives that it would have to have the capability to clean up X amount of oil in X amount of time. They wouldn鈥檛 be 鈥渉elpful鈥� and such standards are currently under review by governments. The review should play out before setting such requirements, Enbridge said.
鈥� The company also said that shipping on the B.C. coast would be paralyzed if standards contemplated for tankers in the proposal were applied universally.
It鈥檚 being loaded with a 鈥渜uite unreasonable鈥� share of responsibility. The company is prepared to do its share, but other industries and government have to step up as well.
Closing oral arguments from all parties will run for a couple of weeks and the panel鈥檚 findings are expected by the end of the year.
The company can take heart that Clark and Alberta Premier Alison Redford have made up. But it will come down to the federal cabinet call next year.
