ATLANTIC

Ottawa should pay for added Energy East pipeline regulatory costs: N.B. premier

The Canadian Press Published Monday, September 18, 2017 5:20PM ADT

Supporters of the Energy East pipeline sign a piece of pipeline as hearings on the project get underway in Saint John. (Ashley Blackford/CTV Atlantic)

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FREDERICTON -- New Brunswick's premier says if Ottawa wants to change the rules of the regulatory process for the Energy East pipeline, it should pay the added costs.

In an open letter to Prime Minister Justin Trudeau, Brian Gallant says the proposed project is in jeopardy because the National Energy Board has said it would consider the impact of indirect greenhouse gas emissions caused by the project.

The premier says Ottawa should pay for the analysis of upstream and downstream emissions, along with similar analyses of other ways of supplying oil. Gallant says that's one of the ways the federal government can demonstrate it is willing to give the project a reasonable hearing.

"Many people believe that the pipeline may ultimately be rejected due to political considerations," Gallant says in the letter released Monday.

"I believe that this project is in jeopardy and that is not in the interests of this country."

TransCanada has put its application to build the $15.7-billion pipeline from Hardisty, Alta., to Saint John, N.B., on hold.

The Calgary-based company is calling the changes to the regulatory process "significant," and has also warned that the entire project and related Eastern Mainline pipeline project could be cancelled.