British Columbia will not budge on its requirements proposed heavy oil export projects must meet, Premier Christy Clark said on Oct. 4. But that doesn't mean she opposes such exports, she told reporters during a teleconference as she prepared to conclude her visit to Washington, DC.
"There's no chance we'll reverse our stand on the five conditions we outlined, but they were never intended to stop development," Clark said, adding that British Columbia is talking both with neighboring Alberta and federal officials on how to meet some of the conditions.
They are: 1. Successful completion of an environmental review; 2. "World-leading" marine oil spill prevention, response, and recovery systems for British Columbia's coastline and ocean; 3. Comparably high-quality onshore spill prevention, response, and recovery systems; 4. Legally addressing treaty rights and First Nations needs so their communities benefit; and 5. A fair share of revenue and economic benefits that reflects a heavy oil project's risks to the province's environment and taxpayers.
"As someone who supports economic development in general and resource development in particular, I believe that if you want to attract investment, make conditions that are crystal clear and designed to reach an agreement," Clark said. "No one likes to negotiate with someone who's determined to say no."
She described a similar approach to proposed $6 billion natural gas development and liquefaction projects in northern British Columbia that Royal Dutch Shell PLC and Malaysia's Petronas are considering.
"We've reduced greenhouse gas emissions by 6% since 2007 as our economy has grown because we introduced a pure carbon tax with offsetting decreases," Clark said. "Our next step is opening up Asian markets for gas, which is going to be a major part of China's energy, and we're poised to be the largest exporter in North America."
LNG tax possible
That might include an LNG tax, which Clark said has been presented to the companies. "My job is to extract as much as possible for the owners of the resource, but I don't want to imperil their business plans," she said.
"There are two main concerns," she said, adding, "One is the certainty of the tax regime, so we're going to make it part of our permanent tax law. The other is to provide a skilled workforce. We'd be compelled to produce 100,000 workers, and I know that salaries have become a problem." British Columbia's government plans to set aside revenue to help previously rural settlements build schools and recreation centers.
Clark also supports completing the Keystone XL pipeline. "Oil leaving Alberta and getting to the US is moving now by rail, which has a bigger carbon footprint and, as Lac-Megantique showed, is not as safe," she said.
