Canada's Federal government will re-engage First Nations in consultation regarding the proposed Trans Mountain Pipeline expansion project, but will not appeal the Federal Court of Appeals decision that quashed approvals for the line earlier this year.
The Federal government has laid out the first steps in restarting the stalled Trans Mountain Pipeline expansion project, calling for a 22-week review of issues that were noted in the recent Federal Court of Appeal ruling quashing earlier approvals of the pipeline.
The Kinder Morgan Canada Limited board announced a series of decisions following the closing of the sale of the Trans Mountain Pipelinesystem and the Trans Mountain Expansion Project (TMEP) to the Government of Canada. The KML board unanimously voted to distribute the net proceeds from the sale, after capital gains taxes, customary purchase price adjustments and repayment of KML debt, as a return of capital to shareholders. The return of capital to holders of KML's restricted voting shares is expected to be approximately $1.2 billion or approximately $11.40 per restricted voting share. To facilitate the return of capital and provide flexibility for dividends going forward, KML will seek voting shareholder approval to reduce the stated capital of KML's restricted voting shares by $1.45 billion.
A Federal Court of Appeals decision that effectively threw out government approval of the Trans Mountain Expansion Project has left the future of the project in limbo. The government of Canada, which as of August 31 is the owner of the Trans Mountain Pipeline, maintains that the expansion project will be built, but it remains uncertain as to when.
Work on the Trans Mountain Expansion Project will kick off in Alberta this August and in British Columbia by late September, according to a six month construction schedule filed with the National Energy Board.