If Enbridge's $5.5-billion Northern Gateway oil pipeline is approved, a major tanker spill could pin Canadian taxpayers for billions of dollars for the cleanup and compensation, according to an analysis by the Living Oceans Society.
That's because insurance coverage for oil tanker companies, and domestic and international spill funds, total $1.33 billion, says the environmental group advocating for sustainable fisheries and the long-term health of coastal communities.
While the $1.33 billion may sound like a lot of money, the cost of cleaning up the Exxon Valdez oil spill of 257,000 barrels of oil was triple at $3.5 billion US.
The dollar figure does not include the cost of losses in industries like sport fishing and tourism along the Alaska coast.
The Living Oceans Society also pointed to the clean-up costs of the BP spill in the Gulf of Mexico which are estimated to be as high as $100 Billion. An estimated five million barrels were spilled in the Gulf.
Enbridge has pointed out that a study they had commissioned for its regulatory application shows the chances of a major spill would be rare.
The pipeline company also points to its spill responsibility, compensation and response plans, which it called world class.
"That's easy for them to say - it's not their home, it's not their livelihood at stake, and they are not going to be paying," Living Oceans spokesperson Jennifer Lash said Tuesday.
"While the chances [of an oil spill] may be low, it will happen eventually," said Lash. "When it does happen, the cost is so astronomical, we can't afford to go down that road."
If Enbridge's project gets approval, its twin oil and condensate pipelines will cross northern Alberta and British Columbia. The 1,170-kilometre pipeline, meant to open up new markets in Asia for Alberta oilsands crude, would pass just north of Prince George.
About 225 tankers a year would call at Kitimat on B.C.'s northwest coast. The tankers would carry between 700,000 and two million barrels of oil.
While Enbridge would have to pay costs for a spill at its loading terminal in Kitimat, they have no financial liability for a spill from a tanker in the ocean.
Opposition to the pipeline project - from environmental groups, First Nations and some municipalities - has focused on the argument any rewards from the projects in jobs and investment is not work the risks of a spill.
In response to the oil spill liability issue, Calgary-based Enbridge said the goal of its marine safety program is to reduce the chances of an oil spill to close to zero.
A risk-assessment analysis by Norway-based Det Norske Veritas determined the probability of a spill of 126,000 barrels is once in 2,800 years, while the probability of a major spill of 252,000 barrels is once in 15,000 years.
"The chance of a spill is very remote, particularly for a major spill," said Enbridge spokesperson Gina Jordan.
Although Enbridge is not financially liable for oil spills from ships on the ocean, the company would take the lead on ensuring that communities and people are treated fairly, said Jordan.
