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Kinder Morgan is bullying, says Burnaby mayor Derek Corrigan

Kinder Morgan Canada asks National Energy Board to allow construction in Burnaby without municipal permits

 The National Energy Board says Kinder Morgan Canada's request Pipeline project in B.C.. Photo TRANS MOUNTAIN

Kinder Morgan Canada tried to bully the City of Burnaby, according to Mayor Derek Corrigan.

Corrigan said Ian Anderson, the companyā€™s president, stopped by his office on Wednesday ā€œto complainā€ about the permitting process around the $7.4-billion Trans Mountain expansion project.

He told the NOW Anderson put pressure on him ā€œto do something.ā€

ā€œI explained to him that I canā€™t interfere. ... Itā€™s a regulatory function,ā€ the mayor said. ā€œHe was disappointed. He basically told me he was going to go to the NEB, and I said, ā€˜Well, youā€™ve had success there on almost every occasion. Iā€™m not surprised youā€™re going there, but I donā€™t see any reason for the National Energy Board to intervene. Our staff are doing their job.ā€™ā€

An interview request with Anderson has yet to be returned.

The next day, Oct. 26, the Texas-based company announced it has asked the NEB to proceed with construction in Burnaby without local permits.

In a statement, Kinder Morgan said it spent ā€œmany monthsā€ working ā€œin good faithā€ to obtain municipal permits ā€“ efforts that were ā€œwithout success.ā€

ā€œThe cityā€™s failure to act in a timely manner raises serious issues of jurisdiction that we are compelled to bring to the boardā€™s attention,ā€ read the statement.

Kinder Morgan said its doors remain open to the City of Burnaby and it ā€œwould welcome the opportunity to discuss a solution.ā€

The twinned pipeline would carry bitumen from Edmonton to Burnaby at nearly three times the pipelineā€™s current capacity. The project has faced fierce opposition from First Nations groups, the cities of Burnaby and Vancouver, environmental organizations and the provincial government.

The pipeline is scheduled to be up and running by December 2019, but if it gets pushed back, the company stands to lose between $30 and $35 million each month the project is delayed, according to an affidavit from Michael Davies, Kinder Morganā€™s vice-president of operations.

Loss of revenue ā€œis likely to exceedā€ 90 million each month.

In an email to the NOW, the NEBā€™s James Stevenson said Kinder Morganā€™s request is under review and the national energy regulator will take the time it needs ā€œto make the right decision.ā€

Corrigan maintained city staff have to do their ā€œdue diligenceā€ when approving permits.

He refuted a statement made in Daviesā€™ affidavit that referenced a National Observer story, which claimed ā€œthe mayor believed the permitting process was a legitimate method of slowing down the project.ā€

ā€œThe National Observer contacted me to tell me that the affidavit misquotes them. I have never said something like that, and Iā€™ve never indicated that,ā€ he said. ā€œIā€™m a lawyer. I understand exactly what weā€™re doing, and Iā€™ve been in this job for a long time, so that kind of allegation is just mischievous.ā€

If the NEB grants Kinder Morganā€™s request, the mayor said it could set a very dangerous precedent.

ā€œIt would be one in which the province would be forced to respond. The federal government would be put in a tremendously awkward position if the NEB felt they could walk in and start interfering with local government processes and overruling them simply because of allegations made by the proponent that this wasnā€™t moving as quickly as they wanted it to.ā€

Corrigan added the city is prepared to take legal action if the NEB gives Kinder Morgan the go-ahead for construction.

ā€œI would expect our MPs will be taking it up in the House of Commons. I canā€™t see that the provincial government wonā€™t have to enter and protect the integrity of our municipal processes because theyā€™re a result of provincial statutes,ā€ he explained. ā€œThis isnā€™t going to be comfortable for Kinder Morgan. Theyā€™re bullying, and Iā€™m not prepared to accept that. Our staff have to be able to protect the interests of our community, and they have to protect the ecology of the conservation areas and parks that (the pipelineā€™s) moving through.ā€