The city of Coquitlam is renewing its request to Kinder Morgan to compensate the municipality for all costs incurred by the existing Trans Mountain pipeline and its potential future expansion.
According to a city staff report, the proposed twinning of the line will mean a $432,000 annual increase in operating and capital costs to the city. That figure is on top of an estimated $1.61 million Coquitlam already pays for maintenance and replacement of municipal infrastructure as a result of the existing pipeline.
“The total estimated annualized cost to the city is in the order of $2 million for both the existing and proposed lines,” said Jozsef Dioszeghy, the city’s general manager of engineering and public works. “The estimated costs include an allowance for insurance and contingency.”
In a report to council last year, staff said the additional operating and capital expenses far outpace the $177,000 in annual property tax the city is expected to collect from the company based on 2014 rates.
That leaves a $255,000 gap each year, which the city expects the company to pay.
“If the cost impacts cannot be fully mitigated, the city will seek compensation from Kinder Morgan,” said the most recent staff report.
But while the compensation issue has not been settled, the city said it was satisfied with Kinder Morgan’s response to several other concerns.
The company said it will consider burying its pipes deeper in the ground, which would help avoid conflicts with city crews when conducting maintenance on municipal infrastructure. Kinder Morgan has also agreed to avoid using Colony Farm Regional Park as a staging area and will now work along the CP Rail corridor.
Meanwhile, the company is also offering $1 million to the city through its Trans Mountain Community Benefits Program should the twinning project be approved by the federal government. A city staff report said the money would be used for improvements to Mackin Park.
Still, several councillors remained skeptical about the funds being offered by Kinder Morgan.
“Really, it is mostly about public relations,” said Coun. Chris Wilson. “That is why I don’t support it. It is to try and garner support for their project.”
Council also amended a report to ensure that approval of the compensation request did not equate to an endorsement of the pipeline project. The amendment and the report were carried unanimously.
Last May, the National Energy Board gave its support to the twinning of the existing Trans Mountain pipeline, providing 157 conditions and 49 environmental requirements are met. With the approval, the federal government is expected to make a final decision on the project in the coming months. If the project is built, it will twin the existing pipeline from Edmonton all the way to the Kinder Morgan refinery in Burnaby.
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