B.C. could be open to approving Northern Gateway if conditions are met: Oliver

MONTREAL — The federal government believes British Columbia “could change its mind� on Enbridge Inc.’s Northern Gateway pipeline project and is working to ensure some of its five conditions are met. British Columbia officially opposed the Northern Gateway pipeline at the end of May in a submission to the Northern Gateway Joint Review Panel, which is charged with assessing the project.

B.C. has laid down five conditions for approving the project that aims to take Alberta oil sands across B.C. territory to Asian markets.

“I have spoken to Rich Coleman [B.C’s new minister of natural gas and formerly minister of energy, mines and natural gas.] and have listened to what was said,� Minister of Natural Resources Joe Oliver said in a telephone interview. “What they basically did was reiterate the five conditions. In the context of the way the project would be constructed, they believe it does not meet their criteria. However, they have left open the possibility that if it does meet their standards, they could change their mind.�

The federal government is helping meet the five criteria set out by B.C. as part of its jurisdictional duty to the process, the minister said.

“We are focusing on making sure pipeline safety is world class, maritime safety is world class, and that we have robust consultation process with aboriginals to maximize their benefit from resource development.�

However, an internal government audit report obtained by the Canadian Press gave a scathing review of the Canadian Coast Guard’s capacity to monitor and manage marine oil spills.

“Although operationally ready to respond, most of the assets held by the [emergency response] program average 25 or more years in service and have either become obsolete or are coming to the end of their useful life,� the Environmental Response Capacity Definition Project report said.

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The nomination of Doug Eyford as Special Representative on West Coast Energy Infrastructure focusing on aboriginal issues, will also addresses a key B.C. criteria, the minister said.

Delays over pipelines and the state-owned enterprises majority ownership of oil sands projects have taken the shine off Canadian oil industry. On Monday, Total president Christophe de Margerie said some of the industry projections for oil sands production were optimistic.

Minister of Natural Resources Joe Oliver.

Darryl Dyck/The Canadian Press

The minister says the government is conscious of the set of short, medium and long-term challenges facing the industry.

Apart from price differential, in “the intermediate term, we are running out of pipeline capacity in Canada and it is going to become increasingly serious issue this decade.�

“In the long term and not-so-long term, the impact of huge shale gas and tight oil discoveries in the U.S. is going to reduce their demand for our resources,� Mr. Oliver said. “So, clearly we need our resources to reach tidewater to diversify our markets, and anything that moves that agenda forward is very positive.�

Article source: http://www.canada.com/could+open+approving+Northern+Gateway+conditions+Oliver/8509435/story.html