Pipeline talks to focus on compensating B.C. – by Carrie Tait and Brent Jang (Globe and Mail – October 16, 2013)

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CALGARY and VANCOUVER — British Columbia has stiffened its stance on ensuring it receives financial benefits from any new oil shipped through the province on the way to global markets.

In an outline of plans to jointly develop new international export markets, B.C. and Alberta agreed to discuss how B.C. could reap “fiscal and economic benefits” should new oil pipelines be built in Canada’s westernmost province.

For B.C., financial benefits from such projects could be derived from any of three sources: payments from the federal government; from the energy companies involved in the projects; or the broad economic boost from building them, said Ben Chin, B.C. Premier Christy Clark’s director of communications.

Funds generated from energy development currently goes from the proponents themselves, they are from the federal government’s share, or from growing the over economic potential of the project,” he said.

Discussions between Ms. Clark and Alberta Premier Alison Redford were, as they both put it at the time, “frosty” last October, but have warmed considerably since the two leaders met in June.

The more co-operative approach comes as newly emerged pipeline proposals to ship Alberta oil to Canada’s east coast are overshadowing opportunities like Enbridge Inc.’s controversial Northern Gateway plan to the west coast.

The two governments have ruled out Alberta forking over a slice of the billions of dollars it collects in energy royalties – an option Alberta always dismissed.

B.C. has major opportunities to transport and export oil and natural gas, but new energy development is highly controversial in the province and politically sensitive. B.C. wants to be compensated for the risk it would carry if new pipelines stretch to the Pacific Ocean, accounting for the potential for oil spills on land and in water.

Alberta and B.C. on Tuesday outlined what they want their joint working group to discuss as they explore how the two provinces can open new energy export markets. The group’s final report is due Dec. 31, 2013.

Cal Dallas, Alberta’s Minister of international and intergovernmental relations, expects the discussions regarding financial benefits to focus on what it would take to maximize the economic benefits of exporting energy both provinces.

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