December 17, 2017 [Seeking Alpha] - Kinder Morgan’s efforts to get its Trans Mountain expansion going continue to face legal hurdles, but recent developments show events moving in the company’s favor.
On December 7, Canada’s energy regulator ruled in favor of KMI’s appeal to begin construction over the objection of local and provincial authorities in British Columbia. The federal government has reinvigorated its support of Trans Mountain, further improving the project’s prospects. These recent developments are strong evidence that all legal challenges will likewise be overcome.
After months of woe, Kinder Morgan – and its Canadian subsidiary, Kinder Morgan Canada, finally got some good news on December 7: Canada’s National Energy Board, or NEB, ruled in favor of the company’s appeal against the city of Burnaby, British Columbia, where the municipal government has been working to block the start of construction of Kinder Morgan’s Trans Mountain pipeline expansion project.
While a relatively small battle in a broader legal conflict, the NEB decision marks a significant victory for Kinder Morgan, allowing it to recommence work on expanding Trans Mountain’s terminals in British Columbia. It also holds positive clues for the future of Trans Mountain.
What Just Happened
The latest legal skirmish began On October 26, when Kinder Morgan filed a motion with the NEB, after Burnaby’s municipal government sought to use two city ordinances as justification to halt expansion work at the Burnaby Terminal and Westbridge Marine Terminal, both key points in the Trans Mountain pipeline. The NEB issued an order stating that Kinder Morgan’s work was not subject to the local ordinances, permitting the company to continue.
The decision marks an important positive step for Kinder Morgan as it seeks to overcome late-stage legal opposition from the provincial government of British Columbia, a minority government led by the left-wing National Democratic Party and propped up by the environmentalist Green Party. The NDP-Green alliance, along with First Nations and other activist groups, has sought to kill the pipeline expansion.
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