To whom it may concern,

We are writing to draw your attention to an issue that is of deep concern to potential Kinder Morgan IPO investors.

As you will know by now, U.S. pipeline company Kinder Morgan Inc. has filed a prospectus for an initial public offering of restricted voting shares through its Canadian subsidiary, to help finance its $7.4 billion Trans Mountain expansion project. For Kinder Morgan to make a final investment decision for this project, securing a financial partner is essential.

The Trans Mountain expansion will nearly triple the size of Kinder Morgan’s existing pipeline and ship 890,000 barrels a day from Edmonton, Alberta, to Burnaby, British Columbia. It was approved by the Canadian government last year, but nonetheless has been plagued with challenges.

While we are supportive of the project, we felt compelled to advise you that it is rife with risk due to the unlikelihood of Kinder Morgan Canada delivering on its promise to meet B.C.’s five conditions.

Not only are there risks associated with safety and community support, there is a very serious financial risk for this project and for any potential investor.

The investments for projects like this often come from large union-owned pension funds and institutional investors. We’ve been squeezed out of this project – our view is that construction jobs will be assigned to cheaper, less skilled labour that may or not come from B.C. and Canadian sources. Our members are clear on this – we will not contribute from our investment portfolios to use our members’ pension monies to support a project that will not engage our working membership in a meaningful way. We firmly believe there is a safe, cost-effective and environmentally responsible way to get this project built – but it won’t happen without the meaningful involvement of the highly skilled B.C. and Canadian pipeline unions that have built nearly every major pipeline in Canada to date.

We strongly recommend you consider the risks associated with the approach Kinder Morgan is taking before making any investment decisions.

Sincerely,
B.C. Coalition for Safety Before Profits

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B.C. Coalition for Safety Before Profits