Titanic clash looms over proposed Northern Gateway pipeline

Durry

House Member
May 18, 2010
4,709
286
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Canada
That's a legitimate question, does condensate added to the bitumen make the product more corrosive than conventional oil? It shouldn't be open to speculation, if you're going to pipe something you should be able to say it's safe for the entire life cycle of the pipeline with some data in hand.

Don't get excited Ton, condensate has been added to bitumen for the last 40 yrs and shipped by p/l from CL and FMc to Edmonton and further south without ever having one leak..
 

Tonington

Hall of Fame Member
Oct 27, 2006
15,441
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Don't get excited Ton, condensate has been added to bitumen for the last 40 yrs and shipped by p/l from CL and FMc to Edmonton and further south without ever having one leak..

How long is the pipeline supposed to last? That's what I was getting at. If a pipeline is supposed to last for say 50 years, will it actually last for 50 years? The day before the Deep Horizon accident, the probability of an accident would have been stated to be very low. In the weeks after, we found out it was far higher.
 

Durry

House Member
May 18, 2010
4,709
286
83
Canada
How long is the pipeline supposed to last? That's what I was getting at. If a pipeline is supposed to last for say 50 years, will it actually last for 50 years? The day before the Deep Horizon accident, the probability of an accident would have been stated to be very low. In the weeks after, we found out it was far higher.

The p/l are monitored using high tech p/l pigs on a regular basis (not sure, could be weekly as they also ck the sludge build up at the same time), these lines could easy last 100 yrs. In addition to pigging they are also pressure tested on a regular basis. Once the lines start to slow some metal loss, the lines are derated to a lower service, but continue to operate.
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Dene Nation officially opposes Northern Gateway pipeline

Yellowknife, N.W.T. - Even though the Northern Gateway Pipeline is set to run from the Alberta tarsands through the Peace River valley to the BC coast, it will have major consequences for the NWT.

The Dene Nation has officially joined over 100 First Nations in signing the Save the Fraser Declaration, opposing the pipeline.

Katlodeeche First Nation Chief Roy Fabian said the tarsands have to be fully studied before the pipeline can go ahead.

"We're still really concerned about the tarsands, and we really feel like the environmental effects of the tarsands haven't been dealt with properly, and they're going ahead with the pipeline. Another big environmental impact that is going to affect us."

Fabian said the tarsands and the Northern Gateway Pipeline are one entity and they have to be treated as such.

"We have a hard time trying to separate the pipeline from the tarsands development. If there was no tarsands development then there would be no need for a pipeline, so they're kind of one and the same."

Fabian added studies from environmental groups indicate that the tarsands release contaminants that are equivalent to one major oil spill per year.


Local
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Opposition grows after deal collapses

The collapse of a deal between Enbridge and the Gitxsan First Nation in Northern British Columbia to support the proposed Northern Gateway pipeline has intensified internal divisions and local opposition to the project.

“We are disappointed. It’s unfortunate, but we respect their decision,” said Paul Stanway, Enbridge’s communications manager on the Northern Gateway project.

“They wanted to have a closer look at the deal that Chief Elmer Derrick signed. We are still optimistic that a deal can be done. We are confident that negotiations can continue and we can sit down and talk about the situation.”

The Gitxsan Treaty Society (GTS) held a meeting on Jan. 17 and voted 28-8 to abandon a deal, which would have seen the Gitxsan community receive an equity stake in the $5.5-billion project.

The agreement was expected to deliver about $7 million in net profit to the Gitxsan people and provide a foundation for ongoing talks between the Gitxsan and Enbridge. “We have been talking to the Gitxsan for the last six or seven years and we are comfortable that we are speaking to the right people, and that they have the authority to negotiate this type of arrangement,” said Stanway.

“We are waiting for a letter from the Gitxsan lawyer to clarify this point.”

In sharp contrast to this view, others have argued that the Gitxsan Treaty Society and its chief negotiator, Elmer Derrick, didn’t have the authority to sign the deal with Enbridge on Dec. 2.

“The Gitxsan Hereditary Chiefs have a right to discuss issues that are important, when it comes to the land, not some bureaucrats that are working with the government,” said Chief Simoigyet Dawamuuxw, Larry Patsy Gitxsan hereditary chief.

“The Gitxsan Treaty Society no longer speaks for the hereditary chiefs.”

According to Dawamuuxw, forty-two out of fifty-one hereditary chiefs signed a declaration on Dec. 5 that said the GTS doesn’t represent the Gitxsan people and should be shut down.

The main reason given for the declaration is that the GTS entered into the Enbridge agreement without consulting or getting the authorization of the Gitxsan people and their hereditary chiefs.

As a result, the Gitxsan clans have lost confidence in the Gitxsan Treaty Office and the Gitxsan Treaty Society to represent the best interests of the Gitxsan.

In addition, the hereditary chiefs were concerned that the agreement doesn’t follow Gitxsan law and would do irreparable damage to their solidarity with neighbouring First Nations, who are fighting to stop the pipeline. “The GTS staged the meeting and the vote so they could back away from the Enbridge deal,” said Chief Dawamuuxw.

“They sacrificed the Enbridge deal to make themselves look good and continue to control the community with money from the government treaty process. They are trying to sneak away from the deal, by putting the attention on the hereditary chiefs. But, we had already declared the Enbridge deal null and void on Dec. 5.”

After the Enbridge deal was signed, the Gitxsan immediately rejected the deal and protested in front of the Gitxsan Treaty Office.

They demanded the resignation of the chief negotiator and two other negotiators. The negotiators declined to step down because only the board has the authority to make this decision.

In response, the protestors boarded up the doors of the office in downtown Hazelton with plywood on Dec. 5 and are preventing GTS employees from entering the building.

In response, the GTS filed a notice of claim in BC Supreme Court on Dec. 14 for a permanent restraining injunction to stop the defendants from restricting access to the building.

The attempt by Enbridge to negotiate a deal through the GTS has served to increase the resolve of the hereditary chiefs. “We are totally against the Gateway project because there is too much environmental risk and no guarantee,” said Dawamuuxw.

“It is impossible to guarantee there will be no damage and we have too much at stake with fish, wildlife and the environment.”

The chief said that Enbridge records show the company has had a spill or a leak every week over the last 10 years.

This means about 650 leaks and spills have happened in the last decade.

The public hearings on the proposed Gateway Pipeline project started in Kitimat, B.C. earlier this month and will wrap up in Edmonton on Jan. 31. Once the hearings are complete, the panel will make a recommendation to the Government of Canada on whether the pipeline should be built.

A legal battle is already underway between the Gitxsan Treaty Society and other members of the Gitxsan over the implementation of the Gitxsan Alternative Governance Model in May 2008.

The case will be heard in BC Supreme Court in February 2012.

Opposition grows after deal collapses - Journal of Commerce
 

Tonington

Hall of Fame Member
Oct 27, 2006
15,441
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The p/l are monitored using high tech p/l pigs on a regular basis (not sure, could be weekly as they also ck the sludge build up at the same time), these lines could easy last 100 yrs. In addition to pigging they are also pressure tested on a regular basis. Once the lines start to slow some metal loss, the lines are derated to a lower service, but continue to operate.

So then it shouldn't be speculation if they have data in hand. Where's the data?

Are you the guy who claimed that it's impossible to run refined products through pipelines?

I think it was Petros.
 

earth_as_one

Time Out
Jan 5, 2006
7,933
53
48
The p/l are monitored using high tech p/l pigs on a regular basis (not sure, could be weekly as they also ck the sludge build up at the same time), these lines could easy last 100 yrs. In addition to pigging they are also pressure tested on a regular basis. Once the lines start to slow some metal loss, the lines are derated to a lower service, but continue to operate.

Pipelines are the reliable and trouble free. Just ask any pipeline company. Nothing can go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong.go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. can go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong.go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. can go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong.go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. can go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong.go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong. go wrong.


Pipeline problems in the last 2 years:

2010s


  • 2010 A gas pipeline exploded near Barksdale Air Force Base, Louisiana, in January, killing a pipeline employee.[628]
  • 2010 On February 1, a plumber trying to unclog a sewer line in St. Paul, Minnesota ruptured a gas service line that has been "cross bored" through the house's sewer line. The plumber & resident escape the home moments before as an explosion & following fire destroyed the home. The Minnesota Office of Pipeline Safety ordered that gas utility, Xcel, to check for more cross bored gas lines. In the following year, 25,000 sewer lines inspected showed 57 other cross bored gas lines. In Louisville, Kentucky, 430 gas line cross bores were found in 200 miles (320 km) of a sewer project, including some near schools and a hospital. The NTSB had cited such cross bore incidents as a known hazard since 1976.[629][630]
  • 2010 On February 25, a natural gas liquids (NGL) pipeline ruptured near Pond Creek, Oklahoma, releasing over 575,000 US gallons (2,180,000 L) of NGL's, and forcing road closures. There was no fire.[631][632]
  • 2010 At approximately 8:10 am CST, March 1, Mid-Valley Pipeline identified a release of crude oil in the manifold area of the Mid-Valley tank farm in Longview, TX. Crude oil was observed “gushing” from the soil in the manifold area, and 198 barrels of crude oil were estimated to have been released and 196 barrels were recovered from the secondary containment area within Mid-Valley’s site.[633]
  • 2010 A 24 inch diameter gas pipeline bursts, but did not ignite near Pampa, Texas on March 15.[634]
  • 2010 On March 25, there was a release of 1700 barrels of Vacuum Gas Oil (VGO) from the FM-1 pipeline into an open in-ground valve pit and the surrounding area in the West Yard of the Sunoco, R&M Philadelphia refinery in Philadelphia, PA. The area was under the control of the Operator in a fenced off area that is off-limits to the public.[635]
  • 2010 A crude oil pipeline ruptures near near Green River, Wyoming, on April 5. At least 84,000 US gallons (320,000 L) of crude were spilled. Corrosion in the pipeline was the cause.[527]
  • 2010 A BP pipeline carrying gasoline leaked nearly 93,000 US gallons (350,000 L) into a farm field over the Memorial Day weekend. The leak occurred in Constantine Township, St. Joseph County, Michigan.[527][636]
  • 2010 On June 7, a 36 inch diameter gas pipeline explosion and fire in Johnson County, Texas, was caused by workers installing poles for electrical lines. One worker killed, and six were injured. Confusion over the location and status of the construction work lead to the pipeline not being marked beforehand.[637][638]
  • 2010 On June 8, construction workers hit an unmarked 14 inch gas gathering pipeline near Darrouzett, Texas. Two workers were killed.[637][639]
  • 2010 On June 12, a Chevron crude oil pipeline damage by lightning ruptured, causing 800 barrels (130 m3) of crude to spill into Red Butte Creek in Salt Lake City, Utah. Crude then flowed in a pond in Liberty Park.[640]
  • 2010 On July 26, Enbridge Energy Partners LLP (Enbridge), reported that a 30-inch (760 mm) pipeline belonging to Enbridge burst in Marshall, Michigan. The company estimates over 800,000 US gallons (3,000,000 L) of crude oil leaked into Talmadge Creek, a waterway that feeds the Kalamazoo River,[641][642][643] whereas EPA reports over 1,139,569 gallons of oil have been recovered as of November 2011.[644] On July 27, 2010, an Administrative Order was issued by U.S. EPA requiring the performance of removal actions in connection with the facility. The Order requires Enbridge to immediately conduct removal of a discharge or to mitigate or prevent a substantial threat of a discharge of oil and to submit a Work Plan for the cleanup activities that was to include a Health and Safety Plan,[645] as required by 29 CFR 1910.120 (HAZWOPER). An oil spill cleanup contractor from Texas, Hallmark, bussed numerous undocumented workers to Battle Creek to work on the cleanup of oil spill and had them work in unsafe conditions.[646]
  • 2010 On August 10, the U.S. Environmental Protection Agency (EPA) and the Justice Department announced that Plains All American Pipeline and several of its operating subsidiaries have agreed to spend approximately $41 million to upgrade 10,420 miles (16,770 km) of crude oil pipeline operated in the United States. The settlement resolves Plains’ Clean Water Act violations for 10 crude oil spills in Texas, Louisiana, Oklahoma, and Kansas, and requires the company to pay a $3.25 million civil penalty.[647]
  • 2010 A construction crew installing a gas pipeline in Roberts County, Texas hits an unmarked pipeline on August 25, seriously burning one man.[648]
  • 2010 On August 27, a LPG pipeline sprang a leak in Gilboa, New York, forcing the evacuation of 23 people.[649][650]
  • 2010 On Thursday, September 9, a high pressure gas pipeline exploded in San Bruno, CA, a suburb of San Francisco. The blast destroyed 38 homes and damaged 120 homes. Eight people died and many were injured. Ten acres of brush also burned. Later, PG&E was unable to supply the California Public Utilities Commission with documents on how PG&E established pressure limits on some of its gas transmission pipelines. It was also revealed that this pipeline had 26 leaks between Milpitas and San Francisco during the time of 1951 to 2009, with some of the leak causes listed in records as "unknown".Later hydrostatic testing of the same pipeline that failed found a pinhole leak, and a previously damaged section blew out.[651][652][653][654][655]
  • 2010 A repair crew was working on a corroded gas pipe in Cairo, Georgia on September 28, when the line exploded. One crew member was killed, and 3 others burned.[656]
  • 2010 A gas pipeline under construction in Grand Prairie, Texas was running a cleaning pig on October 15 without a pig "trap" at the end of the pipe. The 150 pound pig was expelled from the pipeline with enough force to fly 500 feet (150 m), and crash through the side of a house. No one was injured.[657]
  • 2010 On November 12, three men working on natural gas lines were injured when a pipeline ruptured in Monroe, Louisiana.[658]
  • 2010 A Tennessee Gas Pipeline 30 inch diameter gas pipeline failed at Natchitoches, Louisiana on November 30. There was no fire, but the pipeline had a Magnetic Flux smart pig test earlier in the year that indicated no flaws in the pipeline. The failure was at a crack in a wrinkle bend. The deadly 1965 gas pipeline accident occurred on a different pipeline owned by the same company nearby.[659]
  • 2010 A valve on a crude oil pipeline leaked about 500 barrels (79 m3) of crude in Salt Lake City, Utah on December 1. This failure was only 100 yards from a June 2010 failure on the same pipeline.[660]
  • 2010 A pipeline was discovered gasoline leaking near Livingston, Illinois, on December 2.[661]
  • 2010 On December 14, a pipeline leaks crude oil near Lockport, Illinois. EPA officials say the spill is near wetlands that house several endangered species. Federal officials say about 21,000 US gallons (79,000 L) of oil were released in Lockport and Romeoville, about 35 miles (56 km) southwest of Chicago.[662]
  • 2010 On December 17, a gas line fire and explosion just outside of Corpus Christi, Texas city limits leaves one person critically injured. A man was working on removing an abandoned pipeline when it exploded, and the man's face was severely burned.[663]
  • 2010 A pipeline at an underground gas storage facility in Covington County, Mississippi on December 28, forcing the evacuation of about 2 dozen families for over a week.[664]
  • 2011 A gas main being repaired in Philadelphia, Pennsylvania explodes, killing a repair crew member and injuring 6 others on January 18.[665]
  • 2011 Gas pressure regulators failed and caused a gas pressure surge in Fairport Harbor, Ohio, on January 24, causing gas fires in 11 homes, and one apartment. 150 gas appliances were damaged or destroyed, but there were no injuries. Gas company Dominion East Ohio says it found fluids and debris in a failed regulator and is investigating how that happened. A year after the explosion, the Public Utilities Commission of Ohio recommended a $500,000 for Dominion.[666][667][668][669]
  • 2011 5 people are killed and 8 homes are destroyed in an apparent gas explosion and fire in Allentown, Pennsylvania on February 10. The NTSB had warned UGI about cast iron gas mains needing replacement after the 1990 gas explosion in that city. Between 1976 and the date of the letter, July 10, 1992, two more gas explosions occurred. Three people were killed, 23 injured and 11 homes were destroyed or damaged in those explosions.[670][671][672]
  • 2011 Late on February 10, a Tennessee Gas Pipeline 36 inch diameter gas transmission pipeline exploded & burned near Lisbon, Ohio. No injuries resulted. The cause was from stress on a girth weld on the pipeline. A failure on another girth weld on the pipeline system led to a PHMSA Consent Agreement.[673][674][675]
  • 2011 Early on February 24, a pipeline near Texas City, Texas ruptured, sending up to 5,000 US gallons (19,000 L) of gasoline into Bayou Pierre.[676][677]
  • 2011 Early on March 17, a 20-inch steel natural gas line running through a Minneapolis, Minnesota neighborhood ruptured and gas from it ignited, caused evacuations to buildings nearby, and Interstate 35W was closed from downtown Minneapolis to Highway 62. There were no injuries.[678][679]
  • 2011 A farmer & rancher near White Oak Township, Michigan smelled gasoline on April 13, and discovered gasoline from a products pipeline leaking into a drainage ditch. As of late September, an estimated 460,000 gallons of gasoline had been released, with about 111,000 gallons of it recovered.[680]
  • 2011 On May 19, a 10 inch diameter crude oil pipeline ruptured near Maysville, Oklahoma. Over 42,000 US gallons (160,000 L) of crude were lost. There was no fire. Internal pipeline corrosion was the cause.[681][682]
  • 2011 A 2 inch diameter lateral on a crude oil pipeline rupture in Huntington Beach, California on July 1. A major road, Goldenwest Street, had to be closed for cleaning and pipeline repairs.[683]
  • 2011 Late on July 2, a 12-inch diameter Exxon Mobil crude oil pipeline ruptured, and spilled oil into the Yellowstone River in south-central Montana. Some residents of Laurel, Montana had to be evacuated.[684][685] The break near Billings fouled the riverbank and forced municipalities and irrigation districts to close intakes.[686][687] Exxon later increased the spill size estimate to 1500 barrels in January 2012 after seeing the damage to the pipeline.[688] About 140 people were evacuated starting about 12:15 a.m. Saturday due to concerns about possible explosions and the overpowering fumes. All were allowed to return after instruments showed petroleum odors had decreased,[689] although no information was available regarding the concentrations of benzene in air. Speculation involves high water flow in the Yellowstone River may have scoured the river bed and exposed the pipe. Consequently, with three oil refineries are located in the Billings area, the fire chief for the city of Laurel said he asked all three to turn off the flow of oil in their pipelines under the river after the leak was reported. ExxonMobil and Cenex Harvest Refinery did so, and that Conoco Phillips said its pipe was already shutdown.[689] Cenex had a release into the Yellowstone River in September 2002. Exxon Mobil later announced the cleanup would cost $135 million.[690][691]
  • 2011 On July 20, a six month old 30 inch diameter natural gas pipeline exploded near Gillette, Wyoming, creating a 60-foot (18 m) crater. There was no fire, nor any injuries.[692]
  • 2011 A pipeline carrying jet fuel ruptured in Mango, Florida on July 22. About 31,500 US gallons (119,000 L) of fuel spilled. There was no fire or injuries.[693]
  • 2011 On August 13, an 8 inch diameter NGL pipeline ruptured near Onowa, Iowa at a Missouri River crossing, during flooding conditions. About 3,350 barrels of NGL's were lost. There were no evacuations or injuries, but 2 other pipelines in the same right of way were forced to shut down.[694][695]
  • 2011 A pipeline carrying heating oil was hit by construction workers in East Providence, Rhode Island on August 31, spraying oil on roofs, trees, and pavement, and flowed into storm drains. At least 56,000 US gallons (210,000 L) of oil were spilled.[696]
  • 2011 A Cupertino, California condominium was gutted August 31, after a plastic pipeline fitting cracked, filling the garage with natural gas that exploded just minutes after the owner left for lunch. PG&E later found six other plastic pipe failures near the blast site. The line was an especially problematic type of pipe manufactured by DuPont called Aldyl-A. PG&E has 1,231 miles (1,981 km) of the early-1970s-vintage pipe in its system. Federal regulators singled out pre-1973 Aldyl-A starting in 2002 as being at risk of failing because of premature cracking. Explosions caused by failed Aldyl-A and other types of plastic pipe have killed more than 50 people in the United States since 1971, the federal government says.[697]
  • 2011 On September 20, a farmer digging to lay drainage tile hit a 10 inch diameter gasoline pipeline near Aurelius, New York, spilling about 3,300 US gallons (12 m3) of gasoline. There was no fire or injuries.[698]
  • 2011 A 2 inch diameter crude oil gathering pipeline failed in Oklahoma on October 12, spilling about 120 barrels of oil. There were no injuries or fire from the failure.[699]
  • 2011 Early on November 3, an explosion and fire hit a gas transmission pipeline compressor station near Artimas, Pennsylvania. There were no injuries.[700]
  • 2011 A crew working on a waterline hit a gas distribution pipeline in Fairborn, Ohio on November 12, leading to a gas explosion that killed one man, and injured 5 others, including children.[701]
  • 2011 On November 16, a Tennessee Gas Pipeline 36 inch diameter gas transmission pipeline exploded and burned near Glouster, Ohio. There were 2 people injured, with 2 homes and a barn destroyed, and 2 more homes and a barn damaged. The pipeline failed at a girth weld.[702][703]
  • 2011 Late on November 21, a Tennessee Gas Pipeline 24 inch diameter gas transmission pipeline exploded and burned near Batesville, Mississippi. 20 homes were evacuated for a time, but there were no injuries or major property damage. The pipeline failed at a sleeve over a wrinkle bend installed in 1946.[704]
  • 2011 On December 3, a gas transmission pipeline exploded and burned in Marengo County, Alabama. A 47 foot section of the pipe was hurled more than 200 feet from the failure area. The gas burned for several hours, and a nearby pipeline was damged. There were no injuries or serious property damage. Initial reports indicate external corrosion as the cause of the failure.[705][706]
  • 2011 On December 6, explosions & fire erupted at a natural gas pipeline compressor station in Sublette County, Wyoming. Two workers were injured.[707]
  • 2011 On December 10, a landowner using a bulldozer hit a 8 inch diameter and a 12 inch diameter petroleum pipelines near Nemaha, Nebraska, rupturing both lines. The spill size was estimated to be 119,000 gallons of gasoline, jet fuel, and diesel fuel. Some of the fuels flowed into a creek leading into Jasper Creek. There were questions about the depth of soil coverage for this pipeline.[708][709][710][711]
  • 2011 A 42 inch diameter natural gas transmission pipeline failed and ignited at a valve on December 10 in Cache County, Utah.[712][713]
  • 2012 A gas pipeline exploded & burned in Estill County, Kentucky on the evening of January 2. Flames were reported reaching over 1,000 feet high. Residents up to a mile away from the failure were evacuated. There were no injuries.[714]
  • 2012 A forest fire caused a gas pipeline to explode and burn in Floyd County, Kentucky on January 7. There were no injuries from this incident.[715]
  • 2012 On January 9, a man was feared dead from a fiery house explosion that leaking gas was suspected to have caused in Austin, Texas. Gas had been smelled in the area for several weeks. Gas company crews had looked along the affected property for a leak, but were unable to find it, and were going to perform more checking for the leak in the future.[716]
  • 2012 A Sunoco pipeline ruptured and spilled about 117,000 gallons of gasoline in Wellington, Ohio, late on January 12. Some residents were evacuated for a week.[717][718]
  • 2012 On January 13, an 8 inch diameter gas pipeline exploded and burned in a vacant agricultural field in Rio Vista, California. There were no injuries or evacuations.[719]
  • 2012 A Tennessee Gas Pipeline gas compressor had a major leak "that sounded like a rocket" in Powell County, Kentucky, forcing evacuations of nearby residents on January 14. There was no fire or injuries reported.[720]
  • 2012 A contractor excavating for a communications company caused a massive gas explosion and fire at a condominium complex on January 16 in West Haverstraw, New York, injuring 2 firefighters & 2 utility workers. Afterwards, it was found that the excavator's insurance will be insufficient to cover all of the property damage of the incident.[721]
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
39,817
471
83
Gateway pipeline to boost oil, hurt consumers, economy: report

A new report says the Northern Gateway pipeline will boost crude oil prices $2 to $3 per barrel annually over the next 30 years and cause significant damage to consumers, businesses and the economy.

The economic assessment of $5.5-billion project by former Insurance Corp. of British Columbia CEO Robyn Allan says the price shock will have "a negative and prolonged impact on the Canadian economy by reducing output, employment labour income and government revenues."

Allan, an economist who researched the effect of the pipeline proposal out of curiosity, says it has been touted by proponents as a nation building enterprise, but it really represents a "serious economic risk" to the Canadian economy.

"The emperor has no clothes," Allan said in an interview. "We're told it is a gross producing economic opportunity, but in fact it's an oil price shock to the economy."

Allan said when the price of oil goes up that means Canadian consumers and businesses will pay more for anything produced by that oil. That will result in inflation, business being down-sized and employees being laid off, she said. Enbridge forecast a $2 to $3 annual increase in the price per barrel of crude in its pipeline application to the joint National Energy Board Canadian Environmental Assessment Agency panel.

Allan says Enbridge has exaggerated the benefits of the pipeline and downplayed the economic impact of price shock on Canadian refineries and businesses and consumers. "They used the wrong model to answer the question of what will happen to the economy when Northern Gateway is successful in raising oil prices."

Allan, named as by the Financial Post as one of Canada's Top 200 CEOs, said she wanted to present her information to the hearing panel and question Enbridge on its model, but was denied intervener status.


The 145,000-member Alberta Federation of Labour included her report in its submission to the panel this week.

AFL president Gil McGowan called the report "a game changer" and a wake-up call to those who have been seduced by the public relations campaigns of the oil companies.

He said Allan's report suggests the promises of economic growth and job creation "are nothing more than a mirage."
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
39,817
471
83
Now reported on CBC:

Northern Gateway would hurt economy, study says
Pipeline project would boost price of oil in Canada

A study endorsed by opponents of the Northern Gateway pipeline proposed by Calgary-based Enbridge says it would cause an oil "price shock" to Canada’s economy.

The economic assessment was done by Robyn Allan, the former CEO of the Insurance Corporation of British Columbia.

It concluded that the higher prices for Canadian oil that would be gained by access to world markets would have an “inflationary price shock which will have a negative and prolonged impact on the Canadian economy by reducing output, employment, labour income and government revenues."

“Higher oil prices mean a decrease in family purchasing power, higher prices for industries who use oil as an input into their production process, higher rates of unemployment in non-oil industry related sectors, a decline in real GDP, a decline in government revenues, an increase in inflation, an increase in interest rates and further appreciation of the Canadian dollar," Allan said.

The study said industry predictions of $270 billion in economic benefits from Gateway don’t consider the depressing effects of increased oil prices.

The National Energy Board refused to grant Allan status as an intervener in regulatory hearings, the Alberta Federation of Labour said, so it included her report in the AFL’s submission.

Argues for more refining in Canada


AFL president Gil McGowan said the study shows that more upgrading and refining of oilsands crude should be done in Canada.

By doing that, he said, “We can make sure that Canadians keep much more of the value created by development within the country. And, by developing markets in Eastern Canada instead of Asia, we can ensure that Alberta's growth isn't coming at the expense of growth in other provinces."

Enbridge hasn't yet responded to a request from CBC News for comment on Allan's assessment of the Northern Gateway project.

Canada’s oil industry has maintained that its inability to access world markets has kept Canadian domestic production trapped within North America, creating an oversupply and keeping the price below what it would be otherwise.

The estimate of a $2-to-$3 per barrel increase over 30 years came from Enbridge itself, in its submissions to the National Energy Board and the Canadian Environmental Assessment Agency.

The NEC/CEAA joint review continued Thursday with hearings in Fort St. James, B.C., and is scheduled to last until April, 2013.

The $5.5-billion, 1,177-kilometre project would carry 525,000 barrels of oilsands crude a day from near Edmonton to a tanker terminal at Kitimat, B.C.

Northern Gateway would hurt economy, study says - Calgary - CBC News
 

DaSleeper

Trolling Hypocrites
May 27, 2007
33,676
1,666
113
Northern Ontario,
I like posting news.

Get over it.

Yer just......................

 

taxslave

Hall of Fame Member
Nov 25, 2008
36,362
4,340
113
Vancouver Island
I like posting news.

Get over it.

That is not news. That is an Op-Ed by someone with a somewhat dubious history at ICBC. The simple solution to AFL concerns is an export tax on oil that is equal to the difference between production costs and what speculators have run the world price up to.
Or do you prefer that we give our resources to the US for less than their true value.
 

taxslave

Hall of Fame Member
Nov 25, 2008
36,362
4,340
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Vancouver Island
Alberta looking to make deals on B.C. ports is indeed news.

Only if you are not paying attention to what is going on in the country. For the right price all the native bands along the route will fall in line as well This protesting is just a negotiating ploy like a union going on strike.
Money talks. Bull$hit walks. Or in the case of the ecoterrorists takes a carbon fuel burning jet.