Monday, September 23, 2013

Commentary

Revenue Sharing

Fees Kinder Morgan should pay the BC gov't

Submitted by Gordon Soules, W. Van, for Norman Gibson

 

believe there are two types of fees that Kinder Morgan should be required to pay the Government of British Columbia should a decision be made to approve the proposed Trans Mountain Pipeline Expansion, which would consist of the construction of a second pipeline from Edmonton, Alberta to Greater Vancouver.

 

These fees include essential fees and royalties/taxes.

Essential Fees
The following are some of the most important fees that the Government of British Columbia should charge Kinder Morgan. These fees must not be considered as a source of profit for the B.C. Government. The Government of British Columbia must have a 100% guarantee that these fees, whatever their eventual dollar amount may be, will be paid by Kinder Morgan.

If Kinder Morgan cannot meet all of these requirements, they should not be given permission to proceed with the project.

1. An annual lease fee for the use of Crown land in the construction and operation of the pipeline
2. All costs associated with oil spills from the pipeline and tankers
3. All costs associated with removing the pipeline and restoring the land used by Kinder Morgan for the project to an acceptable standard as set by the Government of British Columbia when the pipeline is no longer needed
4. Fair compensation to the residents of British Columbia for having the project constructed in their province
5. Fair compensation to the First Nations regarding the construction and operation of the project

Royalties/Taxes
Any royalties and/or taxes that Kinder Morgan is to pay the Government of British Columbia should be considered to be any amounts over and above the essential fees.

In years to come, should the project proceed, the people of British Columbia should not have to pay billions and billions of dollars for unexpected costs associated with the project.

 

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