The Globe and Mail reports in its Wednesday edition that Kinder Morgan is facing criticism
over a plan to hike fees on its
Trans Mountain pipeline to cover
costs related to oil spill safeguards.
The Globe's Jeff Lewis writes that Kinder is
proposing an increase of 8 per
cent to fees paid by oil company
shippers in order to bolster the
industry's ability to respond to a
large marine oil spill.
The change, set to take effect as
early as June 1, would tack a 28-cent-a-barrel surcharge on shipments
from Kinder's Westridge
dock, where the pipeline
ends in Burnaby, B.C.
The levy is supported by the Canadian
Association of Petroleum
Producers. But refiner Phillips
66 and a trading unit of
PetroChina oppose it,
arguing that they should not have
to pay for services today in support
of an expanded pipeline that
they may never use.
The spat marks another chapter in a
series of disputes over tolls on the
Pacific-bound pipeline, as some
of the world's largest oil companies
jostle over rights to limited
export capacity. Kinder says the fees are
needed now to accelerate investments
in spill-response capacity.
A new
funding mechanism covering
2016 and beyond will be proposed
by Oct. 31.
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