The Trans Mountain Accord of the Federal Government Could Require Trump's Approval

The acquisition of the Trans Mountain pipeline exceeds the US regulatory barriers that could allow President Donald Trump to intervene.

According to the rules of the US Department of State, the government must be notified when the ownership of a cross-border pipeline changes hands and a transfer may require a new determination of the national interest that should to be approved by the President of the United States.

The Trans Mountain System includes the Puget Sound Pipeline, a 111-kilometer line in operation since 1954 that can carry up to 180,000 barrels a day of crude oil from Alberta to refineries in the United States. State of Washington.

Ottawa buys the entire system from Kinder Morgan Inc. in order to ensure the realization of an expansion project that would provide new export markets for Alberta crude producers, but faces fierce opposition in British Columbia.

The acquisition of the Puget Sound line by the federal government owes the US Department of State and the US Committee on Foreign Investment (CFIUS), an inter-agency group under the Department of United States Treasury which examines foreign takeovers in matters of national security.

important problem, but may decide that no other action needs to be taken. However, officials could determine that an agreement that would allow the Canadian government to take ownership of US energy infrastructure requires further study, triggering presidential decision-making.

"There is no doubt that there is a risk, given this very tense business environment and the desire of this administration to adjust the trade balances, that this could be a commercial bait, "said David Goldwyn, a former state department official who now works as a Washington-based energy consultant. "They have been generally supportive of the hydrocarbon industry, but at this point you can not exclude anything."

Canada and Kinder Morgan jointly filed an application under CFIUS, said David Barnabe, a spokesman for the Department of Finance, who manages the acquisition. Mr. Barnabe did not respond to questions about the need to notify the State Department: "Any questions relating to permits required during the initial construction of the Puget Sound Junction should be directed to the company. "

Kinder Morgan Canada Ltd. e-mailed that the review by the US government is "one of many regulatory and shareholder processes to take place before the conclusion of the transaction. These processes are on the right track. "

Under former US President Barack Obama, any change in ownership of cross-border pipelines required a new presidential permit," said Mr. Goldwyn.The Trump administration changed last September, issuing new rules. new rules to simplify approvals

Under the new guidelines, the party seeking a change of ownership must inform the State Department, which is being written.The Ministry will refrain from conducting an environmental review, provided that no information indicates that a change of property would have a significant impact on the environment.

However, officials will consult with other departments and agencies to determine whether the change of ownership would incur on the environment. impact on the determination of national interest that has been made under the existing license. If they conclude that there would be a significant change, a new permit must be obtained, subject to presidential approval.

Since taking office, Mr. Trump has supported the oil and gas industry and one of his first actions has been to overthrow Mr. Obama's rejection of TransCanada Corp.'s Keystone XL Pipeline. and the issuance of a presidential permit for this project, which would transport 830,000 barrels a day of crude oil from Alberta to the US Gulf Coast

. have increased, which has led the Trump administration to impose tariffs on steel and aluminum imports for reasons of national security.