October 6, 2014

No. 17

Broad Opposition to Kinder-Morgan Pipeline Proposal

People Have the Right to Decide
Those Issues that Affect
Their Lives!



Rally on Burnaby Mountain, September 13, 2014.

Broad Opposition to Kinder-Morgan Pipeline Proposal
People Have the Right to Decide Those Issues that Affect Their Lives!
Legal Challenges
Burnaby Rally
National Energy Board Ruling Halts Surveying on Burnaby Mountain
BC Mayors and City Councillors Demand a Say in Resource Development and Transportation of Dangerous Goods in Their Communities


Broad Opposition to Kinder-Morgan Pipeline Proposal

People Have the Right to Decide Those Issues
that Affect Their Lives!

Opposition to the proposal of U.S. pipeline monopoly Kinder-Morgan to increase bitumen shipped from Alberta to its terminal in Burnaby is steadily increasing and broadening. The current pipeline, originally called the Trans-Mountain Pipeline, is the only existing pipeline transporting oil from Alberta to various points in British Columbia and Washington State. The Vancouver bound bitumen is loaded onto tankers at the Westridge Terminal situated near the Chevron refinery on Burrard Inlet. The tankers ship the oil through Vancouver's harbour to the Salish Sea and Juan de Fuca Strait destined for Asian and U.S. markets.

According to the company's website, "Trans Mountain is proposing an expansion of its current 1,150-kilometre pipeline between Strathcona County (near Edmonton), Alberta and Burnaby, BC. The proposed expansion, if approved, would create a twinned pipeline that would increase the nominal capacity of the system from 300,000 barrels per day, to 890,000 barrels per day."

The pipeline began operations in 1953. The Houston, Texas based Kinder-Morgan has owned the pipeline since 2005. The company is seeking approval from the National Energy Board for the proposed expansion in capacity. The number of tankers leaving the terminal would increase to around ten per week, up from the current one to two per week. In addition, Kinder-Morgan is proposing to dredge the Second Narrows portion of the Burrard Inlet to allow larger Suezmax tankers access to its Westridge Terminal.

Although Kinder-Morgan calls its proposal a "twinning," its own maps indicate that the proposed route entails a considerable stretch of new pipeline, including through Burnaby, a densely populated city in Metro Vancouver. The existing pipeline in Burnaby ruptured in 2007, spilling 234,000 liters into a residential area.

The City of Burnaby, Vancouver City Council and other councils have joined the opposition to the project first launched by local Salish First Nations, The Musqueam, Squamish and Tsleil-Waututh. They are on record as opposing the Kinder-Morgan proposal due to the increased risk to the urban and marine environment from expanded pipeline capacity and escalation of tanker traffic in Burrard Inlet. Concern is mounting that the oil monopolies, pipeline owners and shippers all have their own private interests in mind, not the public interests of the people and environment.

Kinder-Morgan has established ten year agreements with a number of U.S. and Chinese oil companies to supply increased amounts of bitumen. This belies the argument that the pipeline will create permanent good-paying jobs. Refinery workers at Chevron report that Kinder-Morgan's main concern is to export crude bitumen for its higher off-shore price rather than ensure feed-stock for the refinery. Without guaranteed feedstock, the refinery will close, and the BC Lower Mainland will be compelled to import gas and oil products from the large Cherry Point refinery in Washington. Already three refineries near the Chevron facility have closed over the past decades: Ioco, Shellburn and BA. Unifor, the union representing Chevron workers, has taken a stand against increased piping or shipping of bitumen outside Canada, arguing instead for domestic refining and more rational production and use of the oil sands.

The heart of the opposition to the Kinder-Morgan proposal, as is the case with the Northern Gateway pipeline proposal, is the fact that the monopolies and governments in their service are making decisions that affect the lives and livelihoods of the people without their consent, say and control over those decisions.

Strengthening the resolve of the people was the August 4 mining disaster in the BC interior, which revealed government deregulation and company "self-regulation" created the conditions for the catastrophe. Facts are piling up proving that the collapse of the tailing pond at the Imperial Metals Mount Polley mine was preventable and caused by the negligence of the company and government. More and more people are convinced that the private interests of the monopolies have taken over governments and the people must organize to fight back to protect the public interests and general interests of society and deprive monopoly right of its power to run roughshod over public right.

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Legal Challenges

Two legal challenges are aspects of the resistance against Kinder-Morgan. The Tsleil-Waututh First Nation launched one in May against the National Energy Board (NEB). The Tsleil-Waututh argues that the NEB ignored indigenous rights, including the right of First Nations to deny consent for projects that cross their indigenous homeland.

In a second action, the City of Burnaby has challenged Kinder-Morgan's right, also granted by the NEB, to cut down the forest on Burnaby Mountain to allow testing to see if the land is stable enough to tunnel through the mountain. While the BC Supreme Court denied the city's injunction, the NEB recently rejected Kinder-Morgan's application for an injunction to prevent the City of Burnaby enforcing its by-laws on the grounds that it would require a constitutional challenge, a decision which effectively halts the survey project on Burnaby Mountain for the time being.

As part of the conflict with the city, Kinder-Morgan in turn has threatened to abandon the Burnaby Mountain tunnel project and revert to its original route through highly-populated Burnaby neighbourhoods. It sent a letter to Burnaby residents asserting that the pipeline is going ahead one way or the other. The company said the people of Burnaby would be wise to support the company's plan to tunnel through the mountain and not have the new pipeline winding through their city streets.

State-organized intimidation of those opposing the project has also increased. The intelligence branch of the RCMP has opened an investigation of a Burnaby citizen for merely photographing the Kinder-Morgan tank facilities while she was standing outside the protective fence.

Speakers at the September 13 Burnaby Mountain rally against the pipeline proposal said people have to stand up to monopoly right. More and more people are realizing that under the rubric of "jobs" and "economy," the Harper and Clark governments represent private monopoly right, especially the oil, gas and resource extractors' right to trample on public right and the public interests. This must change. The people must have the political power to have a say and control over those decisions that affect their lives.

Tsleil-Waututh Nation Launches Legal Challenge

On May 2, the Tsleil-Waututh Nation issued the following press release:

Today, the Tsleil-Waututh Nation, the "People of the Inlet", is launching a legal challenge of the National Energy Board's (NEB) review of the Kinder Morgan Trans Mountain pipeline and tanker project. The Nation says that serious legal errors made by the federal Crown and NEB have led to a flawed and unlawful review process that puts Burrard Inlet and all peoples who live here at risk.

This is the first legal challenge by a First Nation against the new pipeline and tanker proposal, and it opens the project to significant delay and uncertainty.

"The Crown and NEB are running roughshod over our Aboriginal Title and Rights. The process to review Kinder Morgan's proposed pipeline expansion and tanker project was designed without First Nations consultation or public participation. The timelines appear to have been designed to rush through approvals," says Chief Maureen Thomas, Tsleil-Waututh Nation.

Legal materials to be filed in the Federal Court of Appeal today will demonstrate that, among other things, the NEB lacked legal authority to start its review process because of the federal government's failure to first consult Tsleil-Waututh on key decisions about the environmental assessment and regulatory review of the project. A backgrounder on the details of the appeal may be found here.

"Our laws establish a sacred trust, a responsibility to care for our lands, air and waters. The federal government has forced us to go to court to defend ourselves and our territory. We will fight this unilateral and one-sided review process, and this project with all legal means," says Rueben George, Sacred Trust Initiative, Project Manager Public Engagement, Tsleil-Waututh Nation.

The one-sided review would see Tsleil-Waututh elders cross-examined by pipeline company lawyers, but company experts and representatives would not need to testify under oath themselves.

"This challenge goes to the heart of the Crown's assertion that it can make unilateral decisions about our territories," continues Chief Maureen Thomas. "Our nation has self government authority to review and make decisions that affect our territory according to our own Law. Canada's own environmental assessment laws confirm this jurisdiction, and the government's failure to consult and cooperate with us as Governments has landed them in court. We are enforcing our own laws. We are enforcing Canadian environmental law."

If approved, Kinder Morgan's proposal would see the transport of tar sands oil expanded from its present level of approximately 300,000 barrels per day to 890,000 barrels per day. With an almost seven-fold increase in oil tankers moving through Burrard Inlet and the Salish Sea, an increase in groundings, accidents, incidents, leaks and oil spills would be inevitable.

A serious oil spill would devastate an already-stressed marine environment and risks collapses in the remaining salmon stocks and further contamination of shellfish beds, wiping out Indigenous fishing and harvesting rights.

Tsleil-Waututh Nation is a progressive and vibrant Coast Salish community of approximately 500 members. The Nation is located along the shores of Burrard Inlet in North Vancouver, B.C., Canada, across the Inlet from the Burnaby terminus of Kinder Morgan's Trans Mountain pipeline.

The Nation's Sacred Trust Initiative is mandated to oppose and stop the Kinder Morgan Trans Mountain pipeline project. For more information visit www.twnsacredtrust.ca and follow the Sacred Trust Initiative on Twitter: @TWNSacredTrust.

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Burnaby Rally

More than 500 people participated in a rally at the top of Burnaby Mountain on September 13, organized by Burnaby Residents Opposing Kinder-Morgan Expansion (BROKE). Speakers at the rally included Burnaby Mayor Derek Corrigan, the President of the Union of BC Indian Chiefs Grand Chief Stewart Phillip, Kennedy Stewart NDP MP for Burnaby-Douglas, and Eugene Kung the Staff Counsel for West Coast Environmental Law.

Burnaby, a city within Greater Vancouver, is the site of the Westridge Terminal where the current Kinder-Morgan pipeline ends. At the Westridge Terminal, 300,000 barrels of oil per day are loaded onto tankers. Approval of the Kinder-Morgan plan to increase the amount of oil being shipped to the Westridge Terminal would result in expansion of the terminal, an increase in the size of the pipeline, as well as at least a partial new pipeline, and a huge increase in the number of tankers travelling through Burrard Inlet and the Salish Sea carrying oil for export. Kinder-Morgan is actively engaged in exploration to determine a new pipeline route, including cutting down trees in the Burnaby Mountain Conservation Area that is owned by the City of Burnaby.

Mayor Corrigan explained that Burnaby City Council is unanimous in opposing Kinder-Morgan's efforts to build a pipeline either by tunnel through Burnaby Mountain or through the conservation areas on Burnaby Mountain owned by the City of Burnaby. Referring to the progressive history of residents of the Lower Mainland, including Burnaby, Corrigan spoke of the residents who stand against the danger of nuclear war, who opposed the war in Vietnam and racism and discrimination against women. Corrigan said this fight is against "corporate culture, the idea that multinational corporations could become bigger than countries and more powerful than countries."

Those companies have full-time staff working in places like Ottawa to lobby politicians to convince them that their interests coincide with the interests of the multinational corporations, Corrigan said. The multinationals are not acting in the best interests of Canadian citizens but in their own interests, he emphasised. In the case of Kinder-Morgan, he explained that the company went to the National Energy Board saying it needed additional money to do the pipeline application. The National Energy Board awarded it $135 million as a surcharge on oil to be paid by consumers, non-taxable, for them to build a war chest to make this application. Kinder-Morgan President Ian Anderson boasted at the last Annual General Meeting that this project application would not cost the shareholders a penny because it was all being taken from Canadians.

Mayor Corrigan said that although the project was described as a "twinning" of the existing pipeline, Kinder-Morgan never intended to use the existing right-of-way. If the plan to bore a tunnel through Burnaby Mountain is found to be seismically not feasible, the City of Burnaby believes that it will identify a route through the Burnaby Mountain conservation area that could be used. He said that Burnaby Council, supported by Vancouver Council and others, are opposing the Kinder-Morgan proposal because apart from everything else, it will increase by sevenfold the danger of an oil spill in Burrard Inlet, which will be catastrophic for the people and the environment.

Eugene Kung, staff counsel to West Coast Environmental Law, reminded the rally that Kinder-Morgan not only wants to dig through Burnaby Mountain Park, but has also applied to the BC government to construct its pipeline through four provincial parks. This was just made possible by a new law pushed through the Legislature last February, opening BC parks to industrial development.

Kung said resistance to this corporate giant must defy conventional rules. He spoke of the Tsilhqot'in June 26 court decision noting it deals with the collective nature of First Nation land title rights and the right of future generations to benefit from the land. He said people should defend our assets like the park as collective rights, which must also be handed down to future generations.

Grand Chief Stewart Phillip first thanked the host First Nations of the region. He contrasted the interests of the people, First Nations and all who have settled and work in BC, with the corporate interests that are reflected in the actions of government. He pointed out that when over 200 BC First Nation Chiefs met with the BC Liberal cabinet on September 11, and were working to draft a joint communiqué, they were angered to find out that the communiqué had been "shopped around" to the Business Council of BC before the meeting. This shows to whom the Clark government is accountable.

Grand Chief Phillip said the Harper government is no different. Also making the struggle to defend the people's rights against the interests of corporations like Kinder-Morgan yet more urgent is the appointment of Jim Prentice as the new Premier of Alberta. Prentice was a former employee of Enbridge whose job was to get indigenous nations on side with the Northern Gateway pipeline project.

To loud applause, the Grand Chief said the people through their united actions are the force that can stop Kinder-Morgan.

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National Energy Board Ruling Halts Surveying
on Burnaby Mountain

Kinder-Morgan began surveying on Burnaby Mountain in a Conservation Area controlled by the City of Burnaby at the beginning of September, drilling and cutting down trees. The company said this rash action was in preparation to implement its proposal to increase the bitumen it ships by pipeline from Alberta to its tank farm and Westridge marine terminal in Burnaby.

The city issued a Stop Work Order on September 3, claiming that city by-laws prohibited the actions of the company in a conservation area. The City was willing to permit the company to engage in “non-invasive” surveying.

Kinder-Morgan spokespersons said that it was acting in accordance with the National Energy Board Act, Part V, “Powers of Pipeline Companies ,” Section 73, which states, in part:

“A company may, for the purposes of its undertaking, subject to this Act and to any Special Act applicable to it,

“(a) enter into and on any Crown land without previous licence therefor, or into or on the land of any person, lying in the intended route of its pipeline, and make surveys, examinations or other necessary arrangements on the land for fixing the site of the pipeline, and set out and ascertain such parts of the land as are necessary and proper for the pipeline;”

The contention of the City of Burnaby is that it has the right to enforce its by-laws. Burnaby Mayor Corrigan was quoted in the Vancouver Observer saying, “It's astonishing that, as a private corporation, Kinder Morgan thinks they have the right to override our citizens' wishes and the laws that have been put in place to reflect the value our citizens place on these sensitive irreplaceable ecosystems.”

Kai Nagata, energy and democracy director with the Dogwood Initiative, quoted in an article on the Desmog Canada website commented that the National Energy Board (NEB) provides no legitimate forum to assess the desirability of a proposed pipeline: “There is no credible democratic forum in which to contest these projects, but in the meantime Burnaby is flexing its limited jurisdiction any way it can in order to register its opposition to this project at the level of governance. It begs the question of where the province is in all of this. If the city of Burnaby can hold up a project by seven months, they can issue stop work orders, and if they can be a stick in the spokes of Kinder Morgan as they have been, what could the province be doing to represent its constituents and uphold the public interest with the resources and jurisdiction available to them? I think what we're seeing is provincial leaders basically wash their hands of this whole fight and leave it up to First Nations and municipalities and individual citizens rather than asserting their responsibilities.”

On September 17, BC Supreme Court Justice Brenda Brown denied the city's application for an injunction to stop Kinder-Morgan from proceeding with the survey work. The city then filed a civil action claiming that the federal regulator could not exempt the company from city by-laws.

Kinder-Morgan then filed a motion asking the National Energy Board (NEB) to prohibit the city from obstructing its work.

The NEB rejected the Kinder-Morgan application on September 25, on the grounds that the question of whether the City of Burnaby bylaws are applicable or not is a constitutional question. For the board to rule it requires that the company serve formal notice to the attorneys general of Canada and the provinces.

This effectively halts the survey work that Kinder-Morgan claims it needs to do to assess its proposed tunnel under Burnaby Mountain. If the company challenges the NEB ruling, it will be based on a complex constitutional challenge that will put on the table the issue of whether the powers of pipeline companies trump municipal laws.

For Your Information

This is the text of the September 25 press release of the National Energy Board:

NEB requires notice of constitutional question to be provided before considering Order

CALGARY - The National Energy Board (NEB or the Board) requires notice of a constitutional question to be provided by Trans Mountain Pipeline ULC (Trans Mountain) before the NEB can consider their request for an order for access to Burnaby Mountain. The company requested access to the area in order to conduct studies and surveys in support of its application to expand the Trans Mountain Pipeline.

In the ruling [Filing A63041], issued today, the Board said that the motion filed by Trans Mountain raises a constitutional question as to whether City of Burnaby bylaws are inapplicable to the company as it exercises its powers under the National Energy Board Act and whether the city should be prevented from enforcing those bylaws.

Neither Trans Mountain nor the City of Burnaby have provided formal notice to the attorneys general of Canada and the provinces as is required when raising a constitutional question. Therefore the Board cannot consider this motion unless such notice is provided.

The Board said that since Trans Mountain is requesting an order directed against the City of Burnaby, Trans Mountain should be the one to provide notice. Should Trans Mountain choose to raise a constitutional question, the Board has indicated its willingness to decide the issue through an expedited process.

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BC Mayors and City Councillors Demand a Say in Resource Development and Transportation of Dangerous Goods in Their Communities

The annual convention of the Union of BC Municipalities was held from September 22 to September 26 in Whistler BC. A number of emergency resolutions were passed on the last day of the convention related to the proposed expansion of the Kinder-Morgan pipeline and the approval process of the federal government. The resolutions, submitted by Burnaby, Victoria and Vancouver called for full public hearings prior to National Energy Board (NEB) decisions, an independent environmental assessment of the project by the province, and a demand that the NEB develop site specific plans to deal with a spill of diluted bitumen and that there be a provincial assessment of those plans.

The convention defeated a Burnaby motion to oppose the Kinder-Morgan expansion plan outright.

The Kinder-Morgan pipeline expansion is of particular concern to municipalities in the Lower Mainland due to both the increased danger from the pipeline itself and the huge increase in tanker traffic, as the enlarged capacity is for export. Similar concerns have led First Nations and thousands of BC residents to oppose the Northern Gateway pipeline to Kitimat on the north coast and the resulting increased tanker traffic.

The danger to the environment from a catastrophic oil spill and the lack of confidence in the monopolies to prevent spills or their capacity to control and clean up are major concerns driving municipal councils to demand accountability from the federal and provincial governments and to have a say in decisions that affect their communities.

Notably, the convention also passed a resolution calling on the federal government to take immediate action to restrict old rail cars, which are slated to be taken out of service over the next three years, from carrying volatile liquids.

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