The recent flooding in Alberta
caused 750 barrels of oil sands to spill near Fort McMurray
north of Calgary ,
causing Enbridge Energy to close down major segments of its pipeline system.
The leak has also prompted more concerns about the safety of pipelines. British Columbia has
already opposed the Northern Gateway Pipeline on the grounds of the company’s
inability to address the province’s environmental concerns. As far as the
Keystone XL project is concerned, U.S. President Barack Obama has already declared
that the “net effects of the pipeline’s impact on our climate will be
absolutely critical to determining whether this project is allowed to go
forward.” Indeed the issue of possible oil spills and the impact that this will
have on the environment is a deciding factor in Canada ’s quest to increase its
share to find new markets for its crude.
Just recently, the Harper Government announced a new set of
measures to strengthen the country’s pipeline system. The stricter measures
include requiring pipeline operators to be financially prepared to respond to
incidents to prevent further damage. Major crude oil companies, for instance,
need to have a $1 billion financial capability at the minimum to meet these
regulations. Fines and penalties that range from $25,000 to $100,000 are also
set for violators depending on the infractions. The Harper Government also
intends to enforce the principle that the “polluter pays” by putting it into
law. Today, this principle is merely implied but not enshrined legally.
Moreover, the Canadian government also calls on pipeline
companies to make their emergency and environmental plans available to the
public. They are also required to have a senior officer whose main task is to
ensure that the company complies with all the policies. Increased inspections
as well as double audits of oil and gas pipelines are also part of the
government’s comprehensive plan to enhance the safety of Canada ’s pipeline system.
The ultimate question is: Can these measures allay fears of
the integrity of Canada ’s
pipelines which is now suffering a major setback in light of the recent
developments? It certainly can. But various conditions have to be met.
For instance, the government must lay out clear safety rules
and implementing guidelines to ensure that the companies fully understand what
is required of them. It’s equally important to give them sufficient time to
prepare for the more stringent policies. Understandably, there will be
debates—staunch opposition even—for some of the measures and the government
should expect this and be prepared to respond. They should also have the
political will to enforce these measures no matter how important the crude
player is to the industry.
A balancing act is needed to assure the safety of the public
and ensure the protection of the environment while reaping the benefits of
revenues and jobs created by the construction and operation of oil pipelines.
For now, these safety measures can certainly help curb people’s fears. But
ultimately, the Canadian government will be judged on how successfully it will
implement these new policies.