Saskatchewan Premier Brad Wall says he doesn’t anticipate much Aboriginal opposition to a proposed new oil pipeline through the province that will move oil from Western Canada to eastern refineries.
TransCanada Pipeline announced plans for the new $12 billion pipeline on Thursday.
Since the project involves converting an existing natural gas pipeline to carry oil, Wall says it will not involve any new disruptions in existing territories:
“Well we have a duty to consult framework certainly within the government, that duty does rest with the Crown, but this is a bit different because it is an existing pipeline and we are talking about a reversal,” he said. “And the extraction of the resources is not on traditional lands, it’s happening already in the Bakken formation on leases that have been duly acquired by the companies, on auctions that we hold every two months, and so I think the question is settled and so too is the pipeline itself because it is an existing facility.”
TransCanada says it plans to consult with all of the approximately 150 Aboriginal communities along the pipeline’s route in southern Saskatchewan and seek their input as part of moving the project forward.”
Wall was also busy on Thursday trying to dampen fears of a provincial economic downturn after a Russian potash company’s announcement that it plans to break away from a European production cartel.
Some economic forecasters have predicted the province’s economy may grow half as quickly a projected as a result of the decision of OAO Uralkali’s decision to export potash independently.
Nevertheless, Wall was quick to point out that potash accounts for less than five per cent of Saskatchewan’s total revenues and it is still too early to tell what long-term effects Uralkali’s announcement will have.
“It’s five per cent of our total revenue and if the CEO of this particular company is correct in his actions, and by the way the market is not convinced, but if his actions drive the price down to $300 per ton that’s roughly 25 per cent off of five per cent of what we had budgeted,” he says. “Not an insignificant amount but 25 per cent of five per cent is very manageable.”
Wall also says BHP Billiton’s decision as to whether or not to pursue the Jansen Lake mine project will not be affected by Uralkali’s announcement.