WINNIPEG, Manitoba (Reuters) - The Canadian government on Friday directed its National Energy Board (NEB) regulator to conduct a new review of its application to nearly triple the capacity of the Trans Mountain oil pipeline, taking into account the impact of additional marine traffic.

FILE PHOTO: A workman walks past steel pipe to be used in the oil pipeline construction of Kinder Morgan Canada's Trans Mountain Expansion Project at a stockpile site in Kamloops, British Columbia, Canada May 29, 2018. REUTERS/Dennis Owen/File Photo

Expansion of the pipeline, which the government bought last month from Kinder Morgan Canada Ltd, has become a political liability for Prime Minister Justin Trudeau and Alberta Premier Rachel Notley, ahead of federal and provincial elections next year. Delays have frustrated Albertans, prompting Notley to withdraw from Trudeau’s national plan to curb carbon emissions.

The NEB must report to cabinet within 22 weeks, Natural Resources Minister Amarjeet Sohi said in Halifax, Nova Scotia. Canada’s Federal Court of Appeal last month overturned the Liberal government’s 2016 approval for expanding the pipeline, which runs from Alberta’s oil heartland to the British Columbia coast.

The timeline for the review, stretching to late February 2019, allows the government to potentially restart construction before the expected spring election in Alberta.

Sohi declined to say when construction could resume.

“We are not focused on election cycles. We are focused on what needs to be done right,” he said.

Trans Mountain expansion faces opposition from the British Columbia government, environmental groups and some municipalities and aboriginal communities, who fear the impact of spills and expanding oil production.

Canada’s oil producers say the expanded pipeline is critical to addressing bottlenecks that have led to steeply discounted prices for their crude.

Sohi said the government would appoint a marine adviser to the NEB, and will ask the regulator to consider its actions to protect killer whales. The government will announce shortly whether it will appeal the appellate court’s decision to Canada’s Supreme Court, and how it will consult indigenous people, he said.

The appellate court ruled in August that the NEB wrongly narrowed its review to exclude the impact of additional tanker traffic on marine life. Additionally, Ottawa failed to adequately consult indigenous people as required by law, it ruled.

The Trudeau government appears to be conducting a “box-checking exercise,” given statements by senior government leaders that the project will be built, said Keith Stewart, senior energy strategist at Greenpeace Canada.

Delays in expanding the pipeline are harming Canada’s investment reputation, said Shannon Stubbs, a Conservative member of Parliament.

The Trans Mountain pipeline runs from Edmonton, Alberta, to an export terminal in the Vancouver area.</s>This time it has to take into account the impact of additional oil tanker traffic off the coast of British Columbia

OTTAWA — The National Energy Board has less than six months to redo its environmental review of the Trans Mountain pipeline expansion, this time taking into account the impact of additional oil tanker traffic off the coast of British Columbia.

Three weeks after the Federal Court of Appeal ripped up the approval for the expansion project, Natural Resources Minister Amarjeet Sohi said cabinet made an order earlier this week telling the NEB it has 22 weeks to complete a thorough review of the environmental impact of additional oil tankers resulting from the additional flows of diluted bitumen coming from an expanded pipeline.

“We are confident that this plan will allow us to meet the high standards that Canadians expect when it comes to protecting the environment,” he said.

The review will include looking at the impact on killer whales of the additional tankers — it’s estimated the number will go from about five tankers a month to 35.

The Federal Court of Appeal last month quashed the approval the NEB and the cabinet gave the project in 2016, citing improper consultation with Indigenous communities and a lack of review of the marine shipping issue. The decision laid out some specific things Canada and the NEB have to do if they want to get the pipeline approved again.

“Obviously this decision was disappointing, but by no means insurmountable,” said Sohi.

He said Canada’s plans to restart consultations with Indigenous communities will be announced shortly.

A source told The Canadian Press recently the government is looking at hiring a retired federal judge to help oversee those consultations with a view to ensuring they follow court-ordered processes exactly this time.

Sohi is also appointing a scientific technical adviser to the NEB review panel to help conduct the oil tanker review.

The expansion project is to build a second pipeline, roughly parallel to the existing one that runs between Edmonton and Burnaby, B.C. It will triple the total capacity, but the new pipeline will only carry diluted bitumen for export to foreign refineries, while the existing one carries a number of products including refined oil.

Sohi was speaking from Halifax, where he is hosting G7 energy ministers for meetings today. G7 environment ministers spent time talking about issues like climate change earlier in the week.

Environment Minister Catherine McKenna said Friday the issue of expanding the pipeline was not raised at those meetings. Canada has been heavily criticized by environmental groups for approving the expanded pipeline, which they argue is incompatible with Canada’s promise to cut greenhouse gas emissions and help slow global warming.

Prime Minister Justin Trudeau and the cabinet argue Canada needs to continue to develop its resources even as it makes the slow transition to a clean energy economy.

Canada issued cabinet approval for the expanded pipeline in 2016, but political opposition, particularly from the new NDP government in British Columbia that doesn’t want the pipeline, spooked investors from Kinder Morgan Canada enough the company wanted to walk away from the project.

In May, Finance Minister Bill Morneau announced Canada would buy the existing pipeline from Kinder Morgan for $4.5 billion, expand it and then sell it back to a private buyer when the timing was right.

With files from Janice Dickson</s>Canada’s federal government instructed on Friday the National Energy Board (NEB) to review the Trans Mountain Pipeline Expansion project again, this time also taking into account the impact of the expected higher oil tanker traffic off the coast of British Columbia.

Last month, a Federal Court of Appeal quashed the federal government’s approval of the Trans Mountain expansion project, saying that the NEB’s review of the project was fraught with flaws that made it unsuitable as a basis for the government’s approval. The court ruled that the NEB failed to adequately consider how increased tanker traffic off British Columbia’s coasts would affect the environment and First Nations people in the region.

“Today, we have instructed the National Energy Board (NEB) to reconsider its recommendations, taking into account the effects of project-related marine shipping. The NEB will be required to complete a thorough and prompt review and deliver its report within 22 weeks,” Canada’s Minister of Natural Resources, Amarjeet Sohi, said in a statement on Friday.

The government will present to the NEB recent government actions to protect the southern resident killer whale and to implement the Oceans Protection Plan, Sohi said.

“The Trans Mountain Pipeline Expansion project (TMX) is an investment in Canada’s future. The Government remains committed to a clear and reliable path forward for the project,” the minister noted.

The Trans Mountain expansion has become one of the most controversial pipeline projects in North America as it pitted two provinces—Alberta and British Columbia—against each other.

Alberta’s heavy oil producers need more pipeline capacity as their production grows, but pipeline capacity has stayed the same. British Columbia’s NDP government, which came into office last year, however, is against any new oil pipelines, although it doesn’t mind all the crude it currently gets from the existing pipeline.

The fierce opposition in British Columbia has forced Kinder Morgan to reconsider its commitment to expand the Trans Mountain pipeline, and to sell the project to the Canadian government.
• None Ex GM Boss: Tesla ‘Headed For The Graveyard’</s>OTTAWA—The National Energy Board (NEB) has less than six months to redo its environmental review of the Trans Mountain pipeline expansion, this time taking into account the impact of additional oil tanker traffic off the coast of British Columbia. Three weeks after the Federal Court of Appeal overturned approval of the expansion project, Natural Resources Minister Amarjeet Sohi says the federal cabinet is giving the NEB 22 weeks to complete a thorough review of the environmental impact of additional oil tankers that would result from the additional flow of diluted bitumen from an expanded pipeline.

“We are confident that this plan will allow us to meet the high standards that Canadians expect when it comes to protecting the environment,” Sohi said Friday. The review will examine the impact on killer whales of the additional tankers — it’s estimated the number of ships will go to about 35 a month from the current five. Last month the appeal court quashed the NEB and cabinet blessing of the project, citing improper consultation with Indigenous communities and a lack of review of the marine shipping issue. The decision laid out some specific things Canada and the NEB must do if they want the pipeline green-lighted again.

“Obviously this decision was disappointing but by no means insurmountable,” Sohi said. He said a decision on whether or not to appeal has yet to be made but the government has already acted on steps to respond to the court decision without appealing. First Nations groups not swayed by potential appointment of Supreme Court judge Ottawa looks at having retired judge help guide renewed pipeline review process

As Trans Mountain sits in limbo, will more people divest from fossil fuels? Canada’s plans to restart consultations with Indigenous communities will be announced shortly, he added. A source told The Canadian Press recently the government is looking at hiring a retired federal judge to help oversee those consultations with a view to ensuring they follow court-ordered processes exactly this time.

Sohi is also appointing a scientific technical adviser to the NEB review panel to help conduct the oil tanker review. The expansion project features a second pipeline, roughly parallel to the existing one that runs between Edmonton and Burnaby, B.C. It would triple the total capacity but the new pipeline would carry only diluted bitumen for export to foreign refineries, while the existing one carries a number of products including refined oil and diluted bitumen. Sohi made the announcement in Halifax, where he is hosting G7 energy ministers. Their meeting comes after G7 environment ministers discussed issues including climate change earlier in the week. Environment Minister Catherine McKenna said Friday the issue of expanding the pipeline was not raised at those meetings. However Canada has been heavily criticized by environment groups for approving the expanded pipeline, which they argue is incompatible with Canada’s promise to cut greenhouse gas emissions and help slow global warming. Prime Minister Justin Trudeau and the cabinet argue Canada needs to continue to develop its resources even as it makes the slow transition to a greener, cleaner energy economy. Canada issued cabinet approval for the expanded pipeline in 2016 but political opposition — particularly from the new NDP government in British Columbia, which doesn’t want the pipeline — spooked investors from Kinder Morgan Canada enough that the company wanted to walk away from the project. In May, Finance Minister Bill Morneau announced Canada would buy the existing pipeline from Kinder Morgan for $4.5 billion, expand it and then sell it back to a private buyer when the timing was right. Conservative natural resources critic Shannon Stubbs was not appeased by Sohi’s plan. Ordering the NEB to report back in just under six months is one thing, but the government put no timeline on when the Indigenous consultations will be completed, when cabinet might consider the project or when construction would be restarted. “Today there are no timelines for shovels in the ground,” she said. On the other side of the equation, environment groups say the government is ordering the review assuming approval for the project will be reinstated no matter what the NEB finds. Keith Stewart, an energy strategist with Greenpeace, said the government is treating the latest review as a “box-checking exercise,” adding that isn’t a true consultation process.</s>OTTAWA — The National Energy Board has less than six months to redo its environmental review of the Trans Mountain pipeline expansion, this time taking into account the impact of additional oil tanker traffic off the coast of British Columbia.

Natural Resources Minister Amarjeet Sohi is making the announcement this morning in Halifax, where Canada is hosting environment and energy ministers at a G7 summit meeting.

The federal cabinet has ordered the NEB to return with a new recommendation within 22 weeks on whether the pipeline expansion should proceed after taking a look at the environmental impact of having more than three dozen oil tankers shipping diluted bitumen through the Burrard Inlet every month.

The Federal Court of Appeal last month quashed the approval the NEB and the cabinet gave the project in 2016, citing improper consultation with Indigenous communities and a lack of review of the marine shipping issue.

Several Indigenous communities, environment groups and the B.C. government are concerned about the higher risk of oil spills if an expanded pipeline increases oil tanker traffic from five per month to 35.

Sohi is also appointing a special marine technical adviser to be part of the NEB’s new review, but that person has yet to be named.</s>WINNIPEG, Manitoba (Reuters) - The Canadian government on Friday directed its National Energy Board (NEB) regulator to conduct a new review of its application to expand the Trans Mountain oil pipeline, taking into account the impact of additional marine traffic.

The NEB must report to cabinet within 22 weeks, Natural Resources Minister Amarjeet Sohi said in Halifax, Nova Scotia. Canada’s Federal Court of Appeal last month overturned the Liberal government’s approval of expansion of the pipeline, which runs from Alberta’s crude oil heartland to the British Columbia coast.

Sohi said the government would appoint a marine adviser to the NEB. The government will announce shortly whether it will appeal the appellate court’s decision to Canada’s Supreme Court, and how it will consult with indigenous people about the pipeline, he said.

The appellate court ruled in August that the NEB wrongly narrowed its review of the project to exclude the impact of additional tanker traffic on marine life. Additionally, the federal government failed to adequately consult indigenous people, as required by law, it ruled.

Prime Minister Justin Trudeau’s government agreed in May to buy the pipeline from Kinder Morgan Canada Ltd for C$4.5 billion, betting it would win in the Federal Court of Appeal.

The project faces fierce opposition from the British Columbia government, environmental groups and some municipalities and aboriginal communities. Canada’s oil producers say the expanded pipeline is needed to address bottlenecks that have sharply reduced prices for their crude.</s>(Reuters) — The Canadian government on Friday directed its National Energy Board (NEB) regulator to conduct a new review of its application to expand the Trans Mountain oil pipeline, taking into account the impact of additional marine traffic.

The NEB must report to cabinet within 22 weeks, Natural Resources Minister Amarjeet Sohi said. Canada's Federal Court of Appeal last month quashed the Liberal government's approval of the pipeline project, which runs from Alberta's crude oil heartland to the British Columbia coast.

More to come.</s>After a recent court ruling overturned the federal approval of the Trans Mountain pipeline project, Ottawa has ordered another review in an attempt to kick-start construction.

In August, the Federal Court of Appeal cancelled the approval of the line, saying that Indigenous groups were not consulted adequately by the National Energy Board and therefore the review that Ottawa had based it’s approval on was inadequate.

Now, the Liberal government has given the NEB six months to redo its environmental review, this time taking into account the additional oil tanker traffic that the expanded line would use.

According to estimates, the number of ships will jump to about 35 per month from the current rate of five.

The review will also need to look at the federal government’s new $1.5B Oceans Protection Plan.

Natural Resources Minister Amarjeet Sohi has also said that the Canadian government has plans to open talks with Indigenous communities soon and there are reports that say a retired federal judge will be taken on to ensure the proceedings are run properly.

Sohi also says that a scientific adviser will be appointed to help conduct the oil tanker review.

Meanwhile, some critics say that the timeline for the NEB could be too tight to complete all the work that needs to be done and the Notley government could suffer because of it.

“It’s a quick timeframe and I’d be surprised if they can meet that timeframe,” said Duane Bratt, a political scientist at Mount Royal University. “I think the pipeline will get built, the question is when will it get built? For the Notley government, she needs work started on it immediately and that’s not going to happen.”

He says that even with a positive NEB review and a new approval, the challenges for the project won’t be over.

“Many of these lawsuits did not come because of a lack of consultation; that was the tool that they used. Really, it’s because they don’t want the pipeline built.”

Premier Rachel Notley, a strong supporter of the line, said that Alberta would be stepping out of the federal government’s climate plan after the Federal Court of Appeal quashed the approval.

She said that the line is essential to the livelihood of Albertans and the federal government needs to take whatever action required to make sure it is built.

On Friday, following the announcement of the new review, she said that the timeline is reasonable and in line with the Federal Court of Appeal's ruling.

"Our focus now is to ensure that the timeline is set in stone," she said. "If the timeline slips and the goalposts shift, I can assure you that the voices of Albertans will be loud."

Notley added that her government will continue to monitor the situation and watch the review process closely.

"This is a project that is in the national interest so we are going to make sure the nation, as a whole, knows how important it is. We are making progress on that, as you know, but we know we can do more. Through that work, we know the pressure on the federal government is stronger than ever before."

The Trans Mountain pipeline, running between Edmonton and Burnaby, B.C. aims to triple the capacity of the existing pipeline.

The project was originally approved in 2016, but B.C. pressured Kinder Morgan, the owners of the project to back away from the project.

In May 2018, Finance Minister Bill Morneau announced that the federal government would buy the existing line for $4.5B with the intent to eventually sell it back to a private buyer when the time was right.</s>A timeline for when the Trans Mountain pipeline expansion may begin is up in the air, as the Liberals announced plans to redo an environmental review of the project.

The National Energy Board (NEB) has less than six months to do the review, this time taking into account the impact of additional oil tanker traffic off the coast of British Columbia.

READ MORE: Liberals will bow to court ruling, launch review of Trans Mountain oil tanker traffic impact

The government also needs to restart consultations with Indigenous communities, which Natural Resources Minister Amarjeet Sohi said will be announced shortly.

Friday’s announcement comes about three weeks after the appeal court quashed the NEB and cabinet blessing of the project, citing improper consultation with Indigenous communities and a lack of review of the marine shipping issue.

At the time, Sohi called the news “disappointing” but said the Liberals will continue to work toward getting the expansion built — eventually.

On Friday, the government did not provide any timeline for when construction on the project would begin.

George Hoberg, a public policy professor at the University of British Columbia, told Global News that construction on the project won’t begin while the environmental review takes place.

“There’s no real chance of anything happening for six months, and probably significantly longer,” Hoberg said. “I think the Liberals are hoping they can begin construction next late spring, but I don’t know whether that’s feasible.”

WATCH: Government asked what their plan is to get the Trans Mountain pipeline built

The professor noted consultations with Indigenous communities could take even longer than six months.

“They’re also trying to thread that needle where they’re trying to be respectful of First Nations and to demonstrate that they have a strong environmental record,” he said, adding doing both those things while also getting a pipeline expansion built is “very difficult and complicated.”

That means there’s still the possibility that even with the redo of the review and Indigenous consultations, the courts may not be satisfied.

And then there’s the 2019 federal election, which could see a change in government — and a change in plans.

WATCH: Fear Liberals letting clock run out on Trans Mountain, Tory MP says

Hoberg said depending on the party that wins, that could mean very different things.

The Conservatives have been vocal that they would handle the situation very differently than Prime Minister Justin Trudeau’s government.

Shannon Stubbs, Conservative natural resources critic, reacted to the government’s Friday announcement saying it provides no assurances about the the project.

“Today, there are no timelines for shovels in the ground, no timeline for completion,” she told reporters on Parliament Hill.

READ MORE: Trans Mountain pipeline decision — experts discuss what could happen next

“They’ve failed on every timeline they’ve announced,” Stubbs added. “I think Canadians are right to question whether or not Liberals are actually committed to getting the pipeline expansion built.”

The New Democrats also criticized the Liberal government, saying they’re redoing the same review again but hoping for different results.

“The courts just told the Liberals that their consultation plan with Indigenous peoples was insufficient, and now we’re supposed to give the Liberals a do-over,” NDP MP Murray Rankin said during Question Period in the House of Commons Friday.

WATCH: Sohi explains why feds not considering Supreme Court challenge on Trans Mountain

Environment groups said the government is ordering the review assuming approval for the project will be reinstated no matter what the NEB finds.

Keith Stewart, an energy strategist with Greenpeace, said the government is treating the latest review as a “box-checking exercise,” adding that isn’t a true consultation process.

Earlier this week, the Union of British Columbia Indian Chiefs also issued a statement urging Trudeau to drop the project entirely.

With all the opposition, Hoberg noted that even once construction begins there could be roadblocks and controversy that make building the project difficult.

“If shovels do go into the ground, there are going to be lots of people standing in the way trying to make sure that doesn’t happen,” he said. “There’s going to be lots of police involved and arrests.”

— With files from The Canadian Press</s>As part-owner, along with 30 million or so of my fellow Canadians, of the Trans Mountain pipeline, it is incredibly disheartening that I have no idea when or how the pipeline expansion project will be built.

We are now approaching the second anniversary of the Liberal government’s approval of that project and we are now past the point of any reasonable expectation that construction will commence within the confines of Trudeau’s first (and last?) term.

Last month’s ruling from the Federal Court of Appeal did indeed catch most everyone by surprise and it creates some unavoidable delays for the project. The federal government is obviously constrained by that reality.

But the much-awaited strategy announced yesterday by Natural Resources Minister Amarjeet Sohi is not exactly the sort of bold response that so many were hoping for. While I have no reason at this point to question the government’s commitment to this project, it is hard to see any sense of urgency.

WATCH: Ottawa outlines next steps in Trans Mountain pipeline expansion, will it work?

The Liberals will first proceed with a renewed National Energy Board review of implications of increased tanker traffic and how to ensure that oceans and coastlines are not negatively impacted. That process is expected to take until at least February and then it would require federal cabinet review, which puts us into at least May. Unfortunately, that’s about the closest thing to a timeline that we have in this announcement.

There’s still, of course, the much bigger question of ensuring that there has been meaningful consultation with First Nations. We still have no idea how the federal government plans on addressing the court’s requirement on this front or how long that’s expected to take. An announcement on those details is still to come.

Moreover, there’s no word as to whether the federal government intends on appealing this decision to the Supreme Court of Canada, if for no other reason than to seek further clarity on what constitutes “meaningful” consultation. Before embarking on this effort, it would be helpful to know how exactly the expectation would be satisfied.

The Liberals also seem to be ignoring calls from the Alberta government and others to use federal legislation to clarify the process.

Alberta Premier Rachel Notley tried yesterday to find a glass-half-full perspective on all of this, but it’s clear that’s she’s lost patience with her erstwhile ally Justin Trudeau. Notley reiterated yesterday that until this pipeline is actually built, her government has no interest in participating in the federal climate plan.

It may be a moot point in that pipeline pessimism is likely to sink the NDP in the spring Alberta election, but it cinches the double whammy for the federal Liberals: going into a federal election campaign next year with both their climate plan and their pipeline strategy in shambles.

Another element adding uncertainty to this whole situation is the government’s own Bill C-69, which has quietly advanced to second reading in the Senate. The legislation is intended to overhaul the regulatory process for natural resource projects, including pipelines. Critics, however, feel that it sets the bar far too high and that it will be near impossible to get such projects approved in the future.

READ MORE: When will the Trans Mountain pipeline expansion get built? It’s hard to tell

The Liberals have tried to have it both ways on the question of whether Canada has a solid and robust regulatory process. With regard to Trans Mountain, the Liberals have defended the review process that led to their approval of the expansion project. Yet during the last federal election campaign, and in selling Bill C-69, they’ve spoken of the need to improve a flawed process.

It’s quite possible now that C-69 could become law while Trans Mountain is still in limbo. So where would that leave us? What is the government doing to ensure that C-69 does not create additional problems for Trans Mountain, including the nightmare scenario of sending this all back to square one?

Given the stakes, one would hope to see the Liberals putting all options on the table to ensure this project goes ahead. Instead, unfortunately, we have a lack of clarity and a lack of urgency – all of which adds up to a real lack of confidence in the Liberal government’s ability to see this through.

READ MORE: Notley says Alberta will ‘hold Ottawa’s feet to the fire’ on Trans Mountain timeline

Rob Breakenridge is host of “Afternoons with Rob Breakenridge” on Global News Radio 770 Calgary and a commentator for Global News.
Canada Natural Resources Minister Amarjeet Sohi orders the National Energy Board to conduct a new review of the Trans Mountain Pipeline expansion project.