Christy Clark’s unenviable path to B.C. pipeline prosperity – by Jeffrey Jones (Globe and Mail – October 24, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

CALGARY — The last time a Canadian Premier complained loudly about getting shortchanged in energy developments, he dug in his heels and made what turned out to be very lucrative deals for his province.

That was Newfoundland’s Danny Williams, who in the past decade demanded better terms from the world’s largest oil majors as they planned the Hebron project on the Grand Banks.

The pugnacious former leader won the right to buy a 4.9-per-cent stake in the multibillion-dollar development, and established a policy for equity positions in future projects. He also imposed a new royalty regime that allowed the province to benefit from rising oil prices.

Now, on the other side of the country, British Columbia Premier Christy Clark faces the prospect of questionable returns for her province from massive energy developments, with a few unique twists.

As she appears to be softening on proposed oil pipelines from Alberta, it’s anything but clear what a deal with the industry or federal government to provide benefits to British Columbians might entail.

Here’s the difficulty for Ms. Clark: If she supports bitumen transport projects, it can’t be seen as just about the money. She’ll have to show how some financial benefit makes up for environmental risk borne by people who polls have shown largely oppose the pipelines.

Unlike Newfoundland and its offshore bounty, the oil reserves in question – the oil sands – are located in the province next door. Ms. Clark’s B.C. Liberal government has no economic stake in, or control over, their development, and Alberta Premier Alison Redford has ruled out any sharing of royalty revenue.

In addition, proposed transport projects such as Enbridge Inc.’s Northern Gateway pipeline and Kinder Morgan Canada’s Trans Mountain expansion are federally, not provincially, vetted.

Here’s where it stands: B.C. and Alberta bureaucrats are busy hammering out potential ways to smooth the road to new energy markets and expanding exports.

The initiative began last summer in Kelowna, B.C., when Ms. Redford and the newly re-elected Ms. Clark patched up their relationship after it had become famously “frosty” over the issue of oil pipelines.

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