CALGARY ? A divisive national debate over pipelines has turned squarely on the processes from the National Energy Board at the same time as a new report slams the regulator’s “inadequate” follow-up on pipeline approvals.
In a study Tuesday, the office of federal environment commissioner Julie Gelfand said the NEB includes a serious issue tracking whether pipeline companies meet conditions for project approvals.
“Although the board has taken steps to improve its follow-up on company non-compliances with regulations, more work remains,” the report said, adding the NEB’s tracking process was “inadequate.”
The report comes amid growing debate over oil pipelines, sparked by TransCanada Corp.’s application to create its Energy East pipeline to New Brunswick and Kinder Morgan Inc.’s seeking approval to expand its Trans Mountain pipeline to metro Vancouver.
“There’s now much more controversy concerning pipelines, and the concerns about the pipelines have led individuals to look more closely compared to what they had previously at the NEB process,” said University of Bc political science professor Kathryn Harrison.
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Harrison said the pipeline debate along with the resultant debate about the national energy regulator are highlighting regional divisions on energy issues across Canada.
She said the present environmental assessment process “of the Kinder Morgan and East pipelines continues to be criticized from many quarters and I think, consequently, the NEB process and the NEB itself is probably in a low reason for its credibility, so this [report] is piling on.”
The environment commission audit said in two from the cases studied the NEB’s systems for follow-up were “inadequate or out of date, key file documentation didn’t have, or the files lacked your final analysis of a company’s submissions and reports or perhaps a conclusion as to whether the condition had been fully satisfied.”
In a statement, NEB chair Peter Watson said he welcomed the audit and added the regulator “had identified the same areas for improvement and it has already completed focus on many of the recommendations.”
“An plan of action is within spot to comprehensively address all the report’s findings by the end of 2016,” he explained.
After meeting with Montreal Mayor Denis Coderre, who arrived on the scene against the Energy East pipeline last week, Prime Minister Justin Trudeau said Tuesday his government will soon add new requirements towards the NEB’s pipeline approval process, including tests of the project’s effect on climate, and improved First Nations consultation.
Company executives and politicians in Alberta are concerned that Ottawa’s additional requirements for NEB approvals would delay pipeline project’s in-service dates – further pushing back timelines for domestic crude to achieve overseas markets.
“The federal government has assured us that existing pipeline applications to the NEB C specifically Trans Mountain and East C won’t have to go back to where you started, no matter any potential changes to the NEB,” Alberta Energy Minister Marg McCuaig-Boyd said in an emailed statement.
“We are asking the authorities ensure the approval process for existing pipeline proposals proceed as quickly as possible, with no undue delay. The strength of the Canadian economy depends upon us getting this right,” she said.
Her problem is shared around the East Coast. University of recent Brunswick political science professor Jon-Paul Lewis said there has been a “blanket endorsement from the [Energy East] pipeline across party lines,” and that he expects the province’s politicians to become more vocal in their support of the pipeline.
“The Coderre announcement was the largest public example of opposition and [now] we have seen New Brunswick politicians respond in kind,” Lewis said.
With a file from Reuters
gmorgan@nationalpost.com
Twitter.com/geoffreymorgan
