The federal government is attempting to enhance “Canada's world-class pipeline safety system” and re-assure Canadians that companies will be held accountable for spills and ruptures along their pipelines.
Transport Minister Lisa Raitt and Natural Resources Minister Greg Rickford introduced the new pipeline management and safety rules, which include a $1 billion absolute liability for oil pipelines involved in a spill, regardless of whether or not the companies are at fault.
The new rules have been praised by federal Conservatives, as well as politicians in Alberta – with those in favour citing the strengthening of regulations as another step towards approving major projects like the Northern Gateway and Energy East pipelines.
However, the new rules, though stronger than the previous set of standards, are being criticized as lacking and flawed by pipeline experts and environmentalists.
“Why choose $1 billion over unlimited given that we've already seen that pipeline spills can exceed $1 billion?” questioned Nathan Lemphers, a former senior policy analyst with the Pembina Institute and a specialist in pipeline safety, speaking with Amber Hildebrandt of CBC News earlier this month. “It certainly is in contrast to (the federal government's) aspirational goals of world-class standards.”
Reports indicate Enbridge's cleanup of the company's oil spill into the Kalamazoo River has already cost more than $1 billion, while an estimated cost of the BP oil spill cleanup in the United States gulf coast area was at $5 billion before the cleanup was even underway.
With profit margins a top priority for any publicly traded company, is this enough incentive for pipeline companies to strive for the highest set of safety and cleanup standards when the penalties are less than the cost the cleanup before the spill even happens?
