History of Kinder Morgan Trans-Mountain Pipeline Expansion Project

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case study annalysis
History of Kinder Morgan Trans-Mountain Pipeline expansion project
History of Kinder Morgan Trans-Mountain Pipeline expansion project
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Table of Contents
Introduction...........................................................................................................................................2
When was the Kinder-Morgan TransMountain Project first announced...............................................2
The mandate and jurisdiction of NEB....................................................................................................5
How does the NEB operate – what criteria do they have the right to look at?.....................................6
What are the “powers” of the NEB, a federal government administrative tribunal?............................7
What Court ruled that the NEB must produce a new Environmental Impact Assessment?..................7
Summarize the principal reasons for the Court’s ruling that a new Environmental Impact Assessment
was ordered...........................................................................................................................................8
How Is the NEB free from interference or frustration from the Federal Government?.........................9
Conclusion.............................................................................................................................................9
References...........................................................................................................................................11

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Introduction
This report focuses on the full history of the Kinder-Morgan Trans Montaigne
pipeline expansion project and issued faced under this project even after getting approval of
National Energy Board (“NEB”). It emphasises on the reasons of Environmentalists who
oppose the project as it will lead to increased tanker traffic, impacting British Columbia’s
population of Killer Whales. This report is divided into six parts which have been highlighted
and used as criteria for preparing this case report. The large oil deposits Alberta around
Leduc were discovered. The idea was quickly emerged which was driven by growing demand
for oil in the West coast of Canada and Asia and United states for that the pipelines were
fitted from Alberta to British Columbia (BC). Because of ongoing Korean War the US
military got interest in the development of the infrastructure by which they can easily
accessed the oil for their military purposes.
When was the Kinder-Morgan TransMountain Project
first announced
The Trans Mountain Pipeline Company was established on 21st March, 1951 by the
special act of Parliament. After this on the same day the proposal was made regarding the
pipeline to the Board of Transport Commissioners. A split occurred between the companies
which broke into Canadian Bechtel Ltd and Standard Oil. After the approval from the board
in February, 1952 the construction was started. The design, engineering and construction
were done by the Canadian Bechtel Ltd. The first time when oil start pumped up it cost
approx. $93 million on 17th October, 1953.
The second pipeline which was spread between Hinton, Hargreaves, British Columbia and
Alberta which was parallel to the first pipeline and that was started by Kinder Morgan in
2004. Canada’s National Energy Board got 82 spills since 1961 by the Trans Mountain. In
the year 2005, crude oil of around 210 m3 dumped by a ruptured pipeline.In 2007, ruptured of
pipeline by a contractor who was working on the sewage project caused spillage of crude oil
in the city of Burnaby. In 2009, Burnaby at the Trans Mountain Burnaby 305 m3 crude was
released (Graben, & Sinclair, 2015).

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The Canada government granted approval for this project which is TransMountain Expansion
Project on 29th of November, 2016. On the recommendation of the Federal Governor in
Council the National Energy Board (NEB) concluded the project in the public interest for
Canadian citizens and in that way it was approved by the council. On 11th of January 2017 the
British Columbia Environmental Assessment Office (BCEAO) certified the Trans Mountain
Expansion Project on environmental assessment (Pérez-Fortes, et. Al. 2016).
The federal Court on 30th August 2018 issued the decision on cancelling the order in council
and this had approved the certificate for the expansion project of Public Convenience and
Necessity (CPCN). In May 2018 the intention to acquire the pipeline the federal Government
to acquire it as a crown corporation announced its intention and to seek complete expansion,
it seek investors from outside to complete it. On 26th September, 2018 the NEB announced a
public hearing for the reconsideration of its project (Pérez-Fortes, et. Al. 2016).
In 1953 the original Trans Mountain Pipeline was built which is continued till today.With the
initial expansion in 1957, the pipeline system capacity has been increased numerous times
(Akbari, et al, (2016).The most recent expansion was done in 2006 and 2008 which was with
the construction of 13 new pump stations and modifications to its stations. During this time
only the Anchor Loop project was also added which was 160 kilometres pipe between Mount
Robson and Jasper National Park which was between Hargreaves and Alberta. This project of
expansion was a twinning of its 1,150 kilometre pipeline which was between Burnaby and
Strathcona county Alberta. This pipeline was having its minimum capacity from 300,000
barrels to 890,000 barrels per day. This expansion was approximately $7.4 billion in its
costing (Jeong, et al. 2015).
This project will create many benefits of short or long term jobs or training opportunity for
these jobs. It will also increase the taxes which are created by the three level of government.
It will create 37000 direct or indirect jobs per year during its operation. During the
construction programme around 15000 people were working in its pipeline expansion (Jeong,
et al. 2015).
In its 20 years of expansion operation, the combined impact on the revenue of government for
construction is $46.7 billion which can be used for the public services like education and
health care. In its revenue generation British Columbia receives $5.7 billion, $19.4 billion