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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - August 1, 1974, Lethbridge, Alberta LETHBRIDGE August Sarnia-Montreal pipeline to be longer, cost more By JEFFCARRUTHERS Herald Ottawa Bureau OTTAWA Interprovmcial Pipe Line Ltd. of Toronto and the Quebec government have agreed on a proposed and more expensive route through Quebec tor the proposed Sarma-to-Montreal crude oil pipeline extension, officials of the pipeline company has revealed Wednesday. The new route, which will cross the Ottawa River instead ot the Lake ol Two Mountains 10 miles farther south to reach Monti eal will be 10 miles longer and at least W-imllinn more expensive, to build officials of the company added Combined with other in- creased costs due to inflation, thi.s will push the total cost ot the 520-mile-long pipeline to between S150-million and nnUion. This compares with the ontimal cost estimate of about s'HOmillion for the more direct 5lOmile-long pipeline. The proposed pipeline would onnect Ottawa Valley and Quebec- markets to supplies of domestic crude oil The new route, if accepted the National Energy Board alter hearings expected to re- -ume in mid-September, will also require acquisition of new right of way between Cornwall and Montreal. This in turn could mean additional expropriations originally, the pipeline was to follow existing right-of- from Oshawa East. Pipeline company officials .lie >till uncertain whether the (ompletion date of late 1975 will be affected either by the route or by delays in NEB consideration ot the matter. Last May. the NEB sus- pended hearings on the Sar- nia to Montreal pipeline proposal alter Quebec had ex- pressed dissatisfaction with the then-proposed routes through the province and with the adequacy of environmen- tal impact information on those routes Interpiovincial was told by the NEB panel hearing the application to get together with Quebec, and Ontario if necessary, to come up with a mutually acceptable route to Montreal Interprovmcial officials said Wednesday they now have what they believe is an acceptable new route through Quebec, following extensive discussions with Quebec and Ontario government officials And pipeline officials are now completing the necessary environmental impact infor- mation on the new proposed route. One company official in Montreal said Interprovmcial will be submitting its propos- ed new route to the NEB by mid-August, with the hope that the NEB hearings will resume about mid-September The official said that as tar as he knows, the issue ot the route through Quebec is the only major outstanding problem to be dealt w ith at the hearings when they resume. There are two major changes in the proposed new route through Eastern Ontario and Quebec to Montreal The mam change, designed to overcome objections about a proposed pipeline crossing to Montreal, across a wide section ot the Lake ot Two Mountains, is to move the crossing about 10 miles north The pipeline would now- cross the Ottawa River, just south ot the Carillon dam. ac- cording to the new proposal accepted by Quebec, the pipeline company said. A company official said that concerns had been expressed during the NEB hearings that a leak ot oil from a pipeline crossing Lake of Two Moun- tains might affect drinking water drawn from the Lake tor users in Montreal area communities The Lake in el feet is the widening ot the Ottawa River as it joins the St. Lawrence River at Montreal. To accommodate the more northern river crossing, the pipeline route from Cornwall to the cross will be tilted slightly north-east from the original proposed route Originally, the pipeline company was to follow ex- isting right-of-way of an oil product pipeline from Oshawa to the Quebec border and then follow mainly highway right- of-ways to Montreal. Depending on when the hearings are resumed and the NEB decision is an- nounced, the pipeline com- pany might still be able to start some preparatory work on the pipeline this year, ,summg it is approved, com- pany officials say. Mam constiuction wasn't .scheduled to start until next spring anyway, they added. The pipe, itself, ordered by the government a year ago. is scheduled for delivery starting in November. One official said the hope remains that the pipeline can be completed on schedule, by the end ot 1975. in time for use during at least part ot the heating season in 1975-76. "We had hoped to have siime work started this year. like getting the river crossings the official But that will likely be delayed until next vear Any further delays will add to the costs of construction, primarily as a result ot con- tinuing inflation, officials said. It completed, the proposed pipeline would link Montreal refineries directly by pipeline to Toronto. Sarnia and western oil fields It would curry as much as barrels a da> to Montreal, to serve the Ottawa Valley market and most of the Quebec market. Coal mine employees walk off at Sparwood About 1.200 coal mine employees walked out on Kaiser Resources Ltd 's Sparwood opeiation Wednesday. a union spokesman said in a tele-phone interview today from Sparwood. Jim Caldwell, secretary of Local 7292 of the- United Mineworkers of America told The Herald some union members felt they weren't getting "a fair shake" on housing, transportation and relocation allowances. There is a housing shortage in the area, he said. Kaiser finances second mortgages for some employees but there was some feeling the system was not completely fair, he said. Mr. Caldwell said the mine usually shuts down for an an- nual vacation period and the buses stop running. This year, not all employees took the same vacation period, so some were working when the buses stopped, he said. A company spokesman said in a telephone interview from Elk Valley there are a number of considerations determining employees' eligibility for mortgages. Not all employees arc eligible he said. The spokesman said reloca- tion allowances for employees moving from other areas are covered by the collective agreement. They apply main- ly to skilled personnel. Negotiations between union and management represen- tatives are continuing. winds down REOINA