Pipeline companies to be liable for $1B even when not at fault

The federal government is introducing legislation to make companies on all federally regulated pipelines responsible for the first $1 billion in cleanup costs from an oil spill, even when they're not at fault.

Speaking Wednesday in Vancouver, Natural Resources Minister Greg Rickford said the government is building on pipeline safety legislation it introduced last year.

'The new measures will ensure companies are fully liable and provide compensation for damage to the environment and property in the event of a spill.'- Greg Rickford, federal natural resources minister

"All companies will continue to have unlimited liability when at fault or negligent."

Rickford said the government will also introduce legislation to give the National Energy Board (NEB) expanded powers, including the authority to take over and fund pipeline spill cleanups in worst-case scenarios.

"The Government of Canada will ensure that the National Energy Board has the resources it needs for spill cleanup and that those costs are recovered from industry to ensure that taxpayers are protected," said Rickford.

"In these exceptional circumstances, the government is prepared to cover the initial cost of incident response, and the National Energy Board will recover costs from pipeline companies."

Rickford said the NEB will be given the authority to order reimbursement of any cleanup costs incurred by government, communities or individuals.

"The new measures will ensure companies are fully liable and provide compensation for damage to the environment and property in the event of a spill," he said.

The NEB will also be given the power to provide guidance on the use of best technologies when building federally regulated pipelines, including construction methods, and emergency response techniques.

Under the proposed legislation, companies would be required to maintain a cleanup cash reserve of at least $100 million to ensure they have the financial resources to respond to incidents and remedy damage without delay.

A key part of today's announcement is a pledge by the government to include aboriginal communities in pipeline safety and planning and any related opportunities they might present.

The announcement comes as the B.C. government and the City of Vancouver openly question Kinder Morgan's ability to handle a heavy oil spill from its proposed $5-billion expansion of its Trans Mountain pipeline through B.C.

In April, the town of Kitimat, B.C., also concerned about a major oil spill, voted no to Enbridge's Northern Gateway pipeline proposal.