Trans Mountain’s massively over-budget and controversial pipeline expansion project, which runs through Alberta and British Columbia, faces a new and significant obstacle. The Stk’emlupsemc te Secwepemc (SSN), a First Nation near Kamloops, disputes Trans Mountain’s proposed change in the pipeline route through an area called Pípsell. The SSN argues that this change will endanger a culturally important place. The project’s cost has already escalated from $4.7 billion to $30.9 billion, and this latest hurdle could result in further delays and cost overruns. The Canadian energy regulator will hold hearings on Monday to review the SSN’s case against Trans Mountain.
Initially, Trans Mountain had agreed to use micro-tunneling to construct the pipeline under Jacko Lake in Pípsell, which would minimize surface disruption and risk. However, the company now plans to use a cheaper but more disruptive technique, which the SSN believes will threaten the sacred lake. The SSN claims that Trans Mountain is motivated by financial considerations rather than the feasibility of micro-tunneling. An Indigenous monitoring group appointed by the government has also expressed concerns about the potential damage to the lake and the disregard for the consultation process.
Trans Mountain claims that the original budget for the micro-tunneling project was $24.7 million, but it has since risen to $58.9 million due to cost overruns and engineering delays. Experts argue that changing plans at this late stage reflects poor management and planning. The delays caused by the Pípsell dispute may push back the pipeline’s anticipated in-service date to the end of 2024. Despite the escalating costs, Trans Mountain maintains that the project will provide a cost advantage over competing pipelines and open up new Asian markets for Canadian crude.
The SSN’s opposition to Trans Mountain serves as a warning to other Indigenous groups and highlights the insufficient consideration of Indigenous rights by resource companies in Canada. Environmental lawyer Eugene Kung argues that companies should strive for more than the minimum level of consent and aim higher in their interactions with Indigenous communities.
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