Two Burnaby politicians have withdrawn support from the Chevron refinery's attempt to secure a more steady supply of crude oil, claiming the company is now supporting Kinder Morgan's pipeline expansion plan.
Chevron's Burnaby refinery relies on crude oil transported by Kinder Morgan's Trans Mountain pipeline, but high demand from other pipeline customers has curtailed the refinery's oil supply. That led to the company's application for priority destination designation, which, if granted, would guarantee a more steady supply for the refinery when demand on the pipeline is high. Burnaby mayor Derek Corrigan and Burnaby-Douglas MP Kennedy Stewart were granted intervenor status for Chevron's application, now before the National Energy Board, but neither are attending the hearings, claiming Chevron changed positions on the pipeline expansion, something Corrigan and Stewart adamantly oppose. Both Stewart and Corrigan say their support was contingent on Chevron remaining neutral about Kinder Morgan's expansion proposal.
"We spent quite a lot of time applying for intervenor status to support Chevron, because we thought it was import to keep the local refinery open," Stewart said.
But as Stewart was reviewing transcripts from a separate National Energy Board hearing on Kinder Morgan's commercial tolling application, he was surprised to come across comments from Chevron's lawyer saying the company supported the pipeline expansion.
"The lawyer for Chevron said they absolutely support Kinder Morgan's efforts to build a new pipeline into Burnaby, and that was completely different from what we'd been told by Chevron to that point," said Stewart. "I based my decision to participate in this process on a completely different understanding of Chevron's position. ... Either we're learning something they've been planning all along or they've switched their position."
Corrigan's support for Chevron was also based on the company's neutrality on the pipeline expansion.
"When we were approached about the priority destination status for Chevron, what I said was, 'Look, if all you care about is with the existing pipeline, getting oil you need, then I'm happy to support you. But if what this turns into is you supporting the twinning by saying we want our share, and the only way for us to get our share is to make sure it's twinned, that's going to be completely against the position Burnaby has already taken,'" Corrigan said.
Corrigan and council are against twinning the line, and Corrigan said there has been a large movement opposing the expansion.
"I don't think the pipeline twinning is good for Burnaby. I don't think it's good for Burrard Inlet," he said. "We see nothing but potential damage to the environment and to Burnaby as a result. There are other people who talk about national interests and why we should do this and all of those issues. I represent Burnaby, and I'm saying for Burnaby there are nothing but disadvantages."
Kinder Morgan wants to twin the existing line, nearly tripling capacity and increasing associated shipping traffic from roughly 60 tankers to 400 per year.
"Necessarily when you increase the number of tankers coming in, you increase the chances of an accident happening," Corrigan said.
In an emailed statement to the NOW, Ray Lord, spokesperson for the Burnaby refinery, said support among key local stakeholders has been important for Chevron throughout the application process.
"We have discussed our application with Mayor Corrigan and with Mr. Stewart and emphasized that the Chevron refinery being designated as a priority destination would be in the best interests of the local community and Burnaby," Lord wrote. "It would help ensure ongoing access to a reliable supply of competitively priced products for our customers, keep 400 high-paying refinery jobs and over $70 million spent annually on local goods and services."
Lord said that during initial discussions with Corrigan and Stewart it was understood that Chevron had adopted a neutral position on Kinder Morgan's pipeline expansion.
"We've been a long-standing customer of the Trans Mountain pipeline, and reliable, cost-effective access to the Trans Mountain Pipeline system is critical to the ongoing operations of the Burnaby refinery," Lord said. "As we've made clear from the start, Chevron supports the safe and efficient movement of Canadian energy resources to diversified markets. When Chevron initially solicited support from our local stakeholders, we had not taken a position in support of the potential pipeline expansion and did not do so until the recent National Energy Board Part IV tolling hearing for the expanded pipeline, when Chevron felt it was necessary to articulate a revised position."
Lord said during the tolling hearing, Chevron did indicate support for the expansion of the pipeline.
"Chevron made that decision during the hearing because it felt that it was required to do so as we were challenging the tolls that would potentially be charged and would apply to Chevron on an expanded pipeline if and when it was built," Lord stated. "Going forward, Chevron's focus continues to be on ensuring the Burnaby refinery has a reliable and economic source of crude and our application for priority destination designation is the essential element to ensuring cost-effective access, whether on the existing or an expanded Trans Mountain pipeline system."
Chevron's own National Energy Board hearing started March 26. The NEB can't say when a decision will be announced.
