Questions about insurance coverage for proposed pipeline
Posted September 17, 2012 10:33 am.
This article is more than 5 years old.
VICTORIA (NEWS1130) – The BC government is worried Enbridge might not have enough insurance money to clean up a spill from the proposed Northern Gateway pipeline.
Environment Minister Terry Lake says Enbridge estimates any spill from the project could be covered by about $60 million in insurance, but that’s a fraction of the estimated $767 million needed to clean up an Enbridge spill into Michigan’s Kalamazoo River two years ago.
“Enbridge and Northern Gateway are very aware of that concern now, so we’ll look to their response. But we’ve made it clear that taxpayers will not be left on the hook,” stresses Lake.
“I think that the company would argue they have the resources necessary. What British Columbians want to see is an ironclad guarantee that they do have the resources necessary, that the structure and the insurance in place will protect British Columbians from the cost of any adverse event,” he adds.
NDP Environment Critic Rob Fleming says insurance issues aren’t new.
“The liability that would accrue to the taxpayer I think confirms that it is just one aspect of this project that is so controversial.”
Lake says BC has a polluter-pays principle and is demanding world-class oil spill prevention and cleanup measures.
