Questions and responses 42nd Parliament, 1st session December 3, 2015, to September 11, 2019

With regard to the credit agreement between Trans Mountain Pipeline Finance and Her Majesty in Right of Canada: (a) what was the source of funds used to secure the environmental obligation required by the National Energy Board and how will Export Development Canada (EDC) report on this transaction in the future; (b) how was the interest rate of 4.7% determined, who authorized it, and were any officials outside of EDC involved in the decision; (c) does the Trans Mountain Corporation (TMC) have a legal obligation to repay the $6.5 billion borrowed from the Canada Account; (d) what will be the source or sources of revenue the Canada Development Investment Corporation (CDEV) will draw upon to satisfy repayment provisions of the credit agreement; (e) was any portion of the $70 million (earnings before interest, tax, depreciation and amortization) in revenue reported for Trans Mountain by the Department of Finance in its November 2018 Budget update transmitted, and if so, to what entities was it transmitted; (f) how will monies allocated by the TMC to give to CDEV for repayment of the debt to the Canada Account be identified in annual financial reports by the TMC and its subsidiaries; (g) does an amortization chart exist detailing how TMC operations will repay borrowed funds, and if so, what are the details of that chart; (h) if generated revenues are insufficient to cover CDEV’s debt to the Canada Account, what organization or organizations within government will be responsible for repayment; (i) how will payment for the purpose of paying down the principal and interest owed to the Canada Account be described in CDEV’s future financial disclosures; and (j) how will EDC identify the receipt of repayment funds from CDEV to the Canada Account?

With regard to the government’s decision to purchase the Trans Mountain pipeline and its related infrastructure from Kinder Morgan: (a) what is the breakdown of the $4.5 billion spent on the purchase, including (i) the sum spent to purchase the real pipeline assets, (ii) the sum spent to purchase the rights and easements of the pipeline assets, (iii) the sum spent to pay salaries, (iv) the sum spent to pay legal fees, (v) descriptions and sums of any other expenditures contributing to the $4.5 billion total; (b) what was the rationale for the final purchase being completed before the Federal Court of Appeal’s ruling was issued; (c) what is the explanation as to why the purchase was not made conditional subject to regulatory approval; (d) what is the summary of measures considered in anticipation of how the Federal Court of Appeal might rule; (e) what was the estimated worth of the pipeline in market terms at the time of purchase; (f) what is the date of the most recent evaluation of the condition of the existing pipeline; (g) what was the valuation of the expansion project at the time of purchase; and (h) what is the the current estimated cost to complete the Trans Mountain expansion?

With regard to the acquisition and construction of the Trans Mountain pipeline: (a) what was the source of funds for the $4.5 billion reportedly paid to Kinder Morgan at the closing date of August 31, 2018; (b) where is (i) that $4.5 billion accounted for in the Department of Finance’s November 2018 Budget update, (ii) the National Energy Board (NEB) facility of $500,000 accounted for in that Budget update; (c) is the outstanding balance of $4.67 billion for the acquisition facility, reported by the Canada Development Investment Corporation (CDEV) in its 2018 third quarterly report, the final acquisition figure; (d) is the project in compliance with spending benchmarks identified in the construction facility, and if not, what corrective actions are being or will be taken; (e) do any documents exist pertaining to contract extensions and financial costs incurred through construction delays, and if so, what are the details; and (f) what sources of revenues is CDEV pursuing to finance construction once the credit facility expires in August 2019?

With respect to the Trans Mountain pipeline purchased by the government on August 31, 2018: (a) did the Minister of Natural Resources seek a cost-benefit analysis of acquiring the existing pipeline and of building an expansion; (b) if the answer to (a) is affirmative, (i) when was the analysis sought, (ii) when was the finalized analysis received, (iii) in what format was the finalized analysis received, for instance as a briefing note, a memo, a report, etc.; and (c) if the answer to (a) is affirmative, what are the details of the analysis, including (i) name and credentials of the author or authors, (ii) date of publication, (iii) the WTI/WCS differential used in the calculations, (iv) the range in years from which data on Canada’s oil industry was captured and analyzed for the study, (v) the impact of an expanded pipeline on jobs in the Parkland refinery, (vi) the estimated number of construction jobs and of permanent jobs created by the expansion project, (vii) the projected construction costs of the pipeline expansion project, (viii) an assessment of the impacts of a tanker spill or pipeline leak on British Columbia’s tourism and fisheries industries, (ix) the government’s liability in the event of a spill or leak, broken down by recovery costs for marine, alluvial, and land-based ecologies (including but not limited to remediation, rehabilitation and restoration of sites and species, especially endangered species) and financial compensation for loss of livelihood and involuntary resettlement of human populations?

With regard to the impending purchase of the Trans Mountain pipeline by the government, can the Minister of Natural Resources confirm in relation to the Pipeline Safety Act and National Energy Board Act: (a) whether the government considers itself a company as authorized under these acts to operate a pipeline; and (b) if the answer to (a) is affirmative, how this pertains to the National Energy Board’s mandate under these acts to order a company to reimburse the costs incurred by any government institution due to the unintended or uncontrolled release of oil, gas or any other commodity from a pipeline?

With regard to consultations undertaken by Kinder Morgan with Indigenous groups impacted by the Trans Mountain pipeline expansion and given the impending purchase of the pipeline by the government, will the Minister of Natural Resources: (a) table all mutual benefit agreements previously reached between Kinder Morgan and First Nation band councils given that they will soon constitute agreements reached with the Crown; and (b) guarantee that all such agreements established the free, prior and informed consent to the pipeline from each band?

With regard to reports that the government is paying $3,800,000 in retention bonuses for three top Kinder Morgan Canada executives: are the retention bonuses part of the $4,500,000,000 purchase price the government is paying Kinder Morgan, or are the bonus payments a separate expenditure?