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Natural Resources Canada cuts "cash on hand" pipeline spill fund in half

Natural Resources Canada cuts "cash on hand" pipeline spill fund in half

Natural Resources Canada (NRCan) has reduced the funds required in case of a pipeline spill from 10% of the company's liability to 5%. 

The Pipeline Safety Act originally had no minimum "cash on hand" requirement for spills. However, the federal government amended the act earlier this year, requiring a 10% emergency fund. After a series of consultations, the government announced that number will be cut in half to 5%.

Large companies have a clean-up liability limit of $1 billion, which translates into a $50 million emergency fund. Although the cash requirements are not a big deal for large companies such as TransCanada or Enbridge, smaller operators are now required to keep an estimated $200-$300 million of cash on hand, which might be a challenge.

Anti-pipeline groups have already denounced the new plan, calling 5% insufficient. NRCan maintains the 5% clean-up fund is in addition to a number of other new safeguards and regulations recently put in place.

Suncor Energy divests another chunk of its East Tank Farm

Suncor Energy divests another chunk of its East Tank Farm

Alberta Government unveils Energy Diversification Advisory Committee members

Alberta Government unveils Energy Diversification Advisory Committee members

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