Canada introduces new pipeline regulations

The Canadian federal government has announced new pipeline safety regulations for companies operating in the country. The announcement comes ahead of the cabinet’s upcoming decision on the controversial Northern Gateway pipeline project, which is set to transport 500 000 bbls/d of crude oil from Bruderheim, Alberta, to Kitimat, B.C. The US$6.5 billion 1177 km twin pipeline would provide access to new markets in the Pacific Rim.

Greg Rickford, the Canadian Resources Minister, revealed modest changes to Canada's pipeline rules during a visit to Vancouver, B.C. Under the new regulations, pipeline companies will have absolute accountability in the event of a spillage and will be held liable for all costs and damages related to oil spills. Operators are also required to have a minimum amount of funding available for cleanup costs.

"Even in the most extreme, rare or unlikely circumstances, the government will ensure that the environment, landowners and taxpayers are protected and the polluter pays," said Rickford, who further noted that the new regulations are not in response to any particular project but are to ensure a high standard for pipeline safety across the country.

In the event that a pipeline company be unable or unwilling to incur the costs of a spillage, the National Energy Board will order reimbursement of spill costs and take over responsibility for the spill and the government will take care of any costs the operator cannot pay (with the national energy regulator recovering this money from the industry).

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/19052014/canada_introduces_new_pipeline_regulations_373/