ek Nora! Resources Ruesowose nurses Canada Canasla |. tan Anderson has requested a call with you to discuss the Trans Mountain | government intervenors are making oral summary arguments, but a SWULSUE SOUS ALO O Di 160034 MEMORANDUM TO THE DEPUTY MINISTER CALL WITH IAN ANDERSON, PRESIDENT AND CEO, KINDER MORGAN CANADA REGARDING TRANS MOUNTAIN EXPANSION PROJECT (information for a Meeting) SUMMARY Expansion (TMX) project. Mr. Anderson may wish to discuss: the current status of the National Energy Board's (NEB) review of the project; the Government's approach to reviewing the environmental assessment process and potential transition measures that could apply to TMX; the Government's commitment to renew its relationship with Indigenous people; and, potential developments in ‘the company's plans related to the project. © On January 12, 2016, 56 intervenors in the NEB review of TMX submitted written final arguments, which included comments on the draft terms and conditions that would apply to the project, should it proceed. The cities of Vancouver, Burnaby and Victoria and the Government of British Columbia are opposed to the project, while the Government of Alberta is supportive. Twenty-three of the intervenors were Indigenous groups, of which 16 were opposed, 4 were supportive, and 3 were neutral © The next step in the review process is oral summary arguments, which will be heard from January 19-29, 2016 in Burnaby and February 25, 2016 in Calgary. No representative of the Crown will attend all sessions. © Information on the above-noted potential discussion points follows and suggested talking points are attached, NRCan-RNCan_A-2017-00872-p.0001 Declassified by ATIP/160034 NEB Review of TMX On January 12, 2016, 56 intervenors in the NEB review of TMX submitted written final arguments, which included comments on the draft terms and conditions that would apply to the project, should it proceed. Final argument provides opportunity for intervenors to provide views about the project including the relevance and weight of any evidence that has been put on the record. ‘The cities of Vancouver, Burnaby and Victoria, who are opposed to the project, allege the risk of a spill is too great. The Government of B.C. alleges spill risks are too great and that Kinder Morgan has not satisfied its 5 conditions for heavy oil pipelines, Twenty-three of the intervenors that filed written final argument were Indigenous groups, of which 16 were opposed, 4 were supportive, and 3 were neutral. The Government of Canada submitted written final arguments, focussed on comments and proposed changes to the draft conditions. None of the input touched an the desirability of the project. The next step in the review process is oral summary arguments, which will be heard from January 19-29, 2016 in Burnaby and from February 2-5, 2016 in Calgary. No government intervenors are making oral summary arguments, but a representative of the Crown will attend al sessions. Following oral summary arguments, Trans Mountain will have the opportunity to provide a written reply argument. The submission of Trans Mountain's written reply argument will mark the close of the NEB hearing process, and will occur before the end of February 2016. The NEB will then write its final report, which must be submitted to the Minister of Natural Resources by May 20, 2016. Restoring Credibility and Public Confidence in the Environmental Assessment Proces and transition for projects under review The Government has committed to restoring credibility and public confidence in the environmental assessment process. In addition, the Ministers of Natural Resources Canada (NRCan) and Environment and Climate Change Canada (ECC) have indicated that ‘no project proponent will be asked to return to square one’ as projects currently under review will be subject to interim measures as the current review process is reviewed and amended. ‘The City of Burnaby has been critical of the Government for not halting the NEB review ‘of TMX. On January 12, 2016, Burnaby Mayor, Derek Cortigan, wrote to the Prime Minister, requesting that in the Government suspend the current NEB review process and expedite amendments to the environmental assessment process in order that amendments apply to the TMX review. There are no provisions within the National Energy Board Act for the Government to suspend or postpone the review process for a pipeline ‘AIPRP Declassitied by ATIP/ veel NRGan-RNCan_A-2017-00872-p.0002‘SMULGUE SOUS LAL CEUAGEAS AUINFCRNRTIN '8.20(1)(b) 8.21(1)(a) $.21(1)(b) Deztasaied by ATIPL 160034 Engaging Indigenous Peoples in Major Resource Projects To support the Government's commitment to find ways to engage indigenous peoples in reviewing and monitoring major resource development projects, would permit the Major Projects Management Office (MPMO) to lead a federal team to undertake consultations with Indigenous peoples. Approximately 45 meetings with 60 groups are anticipated to take place between March-May 2016. A second round of consultations would be held between June-November 2016 following the release of the NEB report. The MPMO will keep Indigenous groups informed of any changes to the review or consultation process for the project that may result from measures announced as part of the review of environmental assessment processes and related interim strategy. The Tsleil-Waututh Nation filed litigation against the Crown on the TMX project, contesting the legality of the NEB process. Court hearings began on October 27, 2016, but were adjourned to grant the appellants time to review arguments. On January 22, 2016, the Court hearing will reconvene in Vancouver for the respondents’ oral submissions and the appellant's reply. Kinder Morgan's Expectations for TMX Kinder Morgan has publicly stated that TMX could be in-service by the end of 2018, subject to project approval. } | | NRCan-RNCan_A2017-00872-p.0003SWULSUE SoustALo be LacceS A LNFoRNTEN, s.21(1}a) 8.23 Declassified by ATIP/ | Déciliesinetsd BAIPRE 160034 ‘The TMX review is being conducted pursuant to the same equivalency agreement. Erif-O'Gorman Attachment: (2) Suggested Talking Points Contacts: — Ellen Dillabough, Senior Advisor, Major Projects Management Office —Tim Gardiner, Director General, Major Projects Management Office NRCan-RNCan_A.2017-00872-p.0004RELEASED UNDER THE ACCESS TO INFORMATION ACT DIVULGUE SOUS LA LOI DE L'ACCES A LINFORMATION Declassified by ATIPI Déclassigé panEAIBRP 160034 j ‘Suggested Talking Points ‘Specific on the Government's review of the environmental assessment processes: ‘+The Government of Canada is committed to making changes to restore public confidence in Canada’s environmental assessment processes for natural resource projects. | ‘+ The Government of Canada's plan will include an interim strategy for projects currently under review to provide some certainty to industry while this broader review | is underway. ‘+ Projects currently undergoing an environmental assessment or regulatory review by ; the National Energy Board will continue pursuant to existing legislation. | * No project proponent will be asked to retum to square one. ‘+ The Government hopes to make announcements in the near future on the interim strategy and the review of Canada’s environmental assessment processes. Specific on the Government of BC opposing the project: ‘+ The National Energy Board is conducting a thorough, science-based review of the i proposed project. The Government of Canada will await the recommendation from the Board before making a decision or making any further comments on the project. ‘+ The Government of BC has raised important issues related to the development of new energy infrastructure in Canada, including the need to work with Canada’s I Indigenous peoples. * The Government of Canada recognizes the importance of new infrastructure ‘development but has also been clear than any development must oceur in an environmentally sustainable manner. j «The Government of Canada will continue to work with Provincial and Territorial governments, including BC, to grow the economy and protect the environment. Specific on the BC Supreme Court Ruling of January 13, 2016: + We are aware of the court ruling and are reviewing the decision to determine its legal | implications. Specific on Aboriginal consultation: + The Government of Canada is committed to engaging Aboriginal peoples and communities, + The Government of Canada has and will continue to meet with Aboriginal groups to ensure they are aware of the project, as well as the processes and opportunities to make their concerns known. Consultation is an ongoing process and will continue after the NEB's final report is released. | NRCan-RNCan_A-2017-00872-p.0005RELEASED UNDER THE ACCESS TO INFORMATION ACT DIVULGUE SOUS LA LOI DE L'ACCES A LINFORMATION Declassified by ATIP/ DéclassfigRagRRP 160034 The NEB provided participant funding to Aboriginal groups who could be impacted by the proposed project with a view to enhaneing their participation in the review process for the project. The Government of Canada is also providing participant funding for consultations following the close of the NEB’s hearing record for the review. NRCan-RNCan_A-2017-00872-p.0006