Grasping at Straws: Comments on the Alberta Pipeline Safety Review

Abstract

The release last month of the Alberta Pipeline Safety Review was meant to be a symbol of the province’s renewed commitment to environmental responsibility as it aims for new export markets. The report’s authors, Group 10 Engineering, submitted 17 recommendations covering public safety and pipeline incidents, pipeline integrity management and pipeline safety near bodies of water — and many of them run the gamut from the obvious to the unhelpful to the contradictory. That the energy regulator ought to be staffed to do its job should go without saying; in fact, staffing levels were never identified as an issue. The recommendation that record retention and transfer requirements be defined for mergers and acquisitions, sales and takeovers is moot. There is no reason a purchasing party would not want all relevant documents, and no real way to enforce transparency if the seller opts to withhold information. Harmonizing regulations between provinces could reduce companies’ cost of doing business, but could also prove challenging if different jurisdictions use performance-based regulations — which is what the Review recommended Alberta consider. This very brief paper pries apart the Review’s flaws and recommends that the province go back to the drawing board. Safety is a serious issue; a genuine statistical review linking pipeline characteristics to failures and risk-mitigation activities would be a better alternative by far.

Keywords: Alberta Pipeline Safety Review, Group 10 Engineering, Energy Resources Conservation Board, Alberta Energy Regulator, pipeline safety

JEL Classification: Q40, Q38, Q48, Q49