Kinder Morgan Energy Partners LP (KMP), Enbridge Inc (USA) (ENB): What Canada Is Doing to Improve Pipeline Safety

Page 1 of 2

Last week, the Canadian government announced that it will enforce more stringent standards for pipelines under its jurisdiction.

The Honorable Joe Oliver, Canada’s Minister of Natural Resources, said that pipelines will need to have the financial capability to “respond to any incident and remedy damage.”

Kinder Morgan Energy Partners LP (NYSE:KMP)

Major crude oil pipelines, for instance, must have “a minimum financial capability of $1 billion,” he said. He also announced additional measures, including new safety rules for pipeline operators and new financial penalties for violators, which are set to come into effect shortly.

According to Canada’s Department of Natural Resources, some of these additional measures include:

1) New fines that will soon come into force that will preventatively address contraventions quickly so that larger issues do not arise in the future. The penalties to companies and individuals for a range of infractions can range from $25,000 to a maximum of $100,000;
2) Requiring companies to appoint an accountable senior officer whose duty is to ensure their management system and programs are in compliance;
3) Ensuring companies’ emergency and environmental plans are transparent and easily available to the public; and
4) Enshrining in law the ‘polluter pays’ principle explicitly in law. Currently it is only implicit; Some pipelines are regulated by the federal government and others by the province.

Why pipeline safety is crucial
The announcement came at the end of a month in which a seemingly unusual number of Canadian pipeline spills were reported. In early June, Apache Corporation (NYSE:APA) reported a pipeline spill in northern Alberta that released 2.5 million gallons of contaminated water, impacting an area of about 100 acres.

Shortly thereafter, Kinder Morgan Energy Partners LP (NYSE:KMP)’s Trans Mountain pipeline discharged about 12 barrels of crude oil in southwestern British Columbia near the town of Kingsvale. The pipeline, which transports crude oil and refined products from Alberta to Canada’s west coast, suffered another accident last week, when an unspecified amount of oil leaked near the town of Hope in British Columbia, some 100 miles east of Vancouver. Kinder Morgan Energy Partners LP (NYSE:KMP) shut the pipeline down on Thursday, as it investigates the cause of the spill, and begins the cleanup process.

Other spills reported in recent weeks include an Enbridge Inc (USA) (NYSE:ENB) pipeline spill north of Cheecham, Alberta, which leaked some 750 barrels of light, synthetic crude oil, and a pipeline operated by Penn West Petroleum Ltd (USA) (NYSE:PWE) that spilled more than 5,000 liters of oil in northern Alberta, affecting surface waters and muskeg lands covering an estimated area of roughly 2.5 square kilometers.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!