Kinder Morgan: Are The Wheels About To Fall Off Trans Mountain?

Feb. 28, 2017 6:30 PM ETKinder Morgan, Inc. (KMI)21 Comments

Summary

  • Kinder Morgan has made great progress regarding The Trans Mountain Expansion Project. However, the detailed route approval process has only just begun.
  • What's more, there is one more level of approval needed before the project can start in 2017. Moreover, the opposition might use this final approval to make its last stand.
  • Below we will review the latest developments regarding the project. Furthermore, we will come to a conclusion for prospective dividend growth and income investors.

Just when you think Kinder Morgan (NYSE:KMI) has the Trans Mountain Expansion Project (TMEP) approvals all wrapped up, this happens. Many are under the impression that all the approvals are complete regarding Kinder Morgan's TMEP project, yet this is not the case. According to Canada's Official National Energy Board website, the detailed route approval process has only just begun. Kinder Morgan recently began the process of issuing letters to Burnaby, B.C., landowners whose property falls on the pipeline corridor, outlining how the project will impact their land.

Current suggested route

Source: cba.ca

According to the NEB:

Trans Mountain must now prepare and submit its actual Plan, Profile, and Book of Reference (PPBoR) for each segment of the proposed detailed route to the NEB and serve written notice to landowners whose lands will be crossed by that particular segment of the route. Trans Mountain must also publish notices in local newspapers along the pipeline route as set out in Appendix II - List of Publications to the NEB's letter. The newspaper notice includes a map and a list of the lands proposed to be crossed by the pipeline.

Ali Hounsell, a spokesperson for Kinder Morgan stated regarding the process:

One of the next steps in the process for us ... is to get into more of the details of the route of where the pipeline will go. There's about 60 parcels of land through Burnaby that the pipeline will go [through].

Opposition to the proposed route seems extremely high, yet Hounsell feels Kinder Morgan has good working relationships with many of the impacted landowners. Nonetheless, Burnaby Mayor Derek Corrigan stated the following:

The route remains offensive. They are now looking at going through the Burnaby Mountain conservation area, which is not a good alternative as far as we're concerned. It will have a significant

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