Alberta, B.C. seeking common ground over oil pipelines – by Claudia Cattaneo (National Post – October 16, 2013)

The National Post is Canada’s second largest national paper.

Have Alberta and British Columbia found a way to resolve their differences over oil pipelines?

The two Western provinces, which not long ago were at each other’s throat over the projects, announced Tuesday a plan to address the five major hurdles standing in the way of Alberta oil shipments to Asia from the B.C. coast: harmonizing marine and land spill response; ensuring fair fiscal and economic benefits to both provinces; consulting with First Nations; exploring resource transportation options; increasing public awareness of responsible resource development.

“B.C. and Alberta share an understanding on the critical importance of being globally competitive,” B.C. Premier Christy Clark said in a joint statement with Alberta Premier Alison Redford. “We are laying the foundation to work together to reach new markets, create jobs and strengthen both our economies, and Canada.”

The effort comes after years of opposition by environmental and aboriginal groups against the Northern Gateway pipeline proposed by Enbridge Inc. and the TransMountain pipeline expansion proposed by Kinder Morgan — the Western front of a war against oil sands pipelines that has been big on controversy, short on realistic solutions and a drag on the Canadian oil sector.

The Alberta/B.C. working group led by senior energy bureaucrats is taking a look at what could be done to make things work — while taking conflict and politics out of the picture.

Its pragmatic approach is in full view in its terms of reference, which notes Alberta oil could get to the West Coast with or without pipelines.

“Rail can be considered a viable alternative to pipeline movement based on costs of transport,” the group notes. “If pipelines are not developed, rail will step into the void to deliver bitumen to the West Coast.”

For example, Canadian National Railway Co., a federally regulated railway that is required to meet all federal standards relating to transport, clean-up and environmental remediation, could be an option, although it will be “necessary to ensure that new modern rail cars that are designed to handle bitumen are used to mitigate environmental risks along with adequate overpasses and rail sidings to protect communities,” the group says.

The working group will explore the economic, environmental and social impacts of pipelines versus rail, areas to maximize benefits and minimizing risks, and develop an action plan for a transportation infrastructure for energy resources.

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