Questionable NAFTA rules put Canadian interests at risk in Chevron refinery case

OTTAWA, Oct. 5, 2012 /CNW/ - The American company Tesoro has presented a motion to the National Energy Board (NEB) to reject a case filed by Chevron to be a Designated Priority Destination (DPP) for Canadian crude. The Communications, Energy and Paperworkers Union of Canada (CEP) is calling on the NEB to proceed with the case despite opposition from Tesoro due to the precarious situation of the refinery in Burnaby, BC.

"It is outrageous that an American company is trying to use NAFTA rules to block a case that would allow Canadian crude to be treated in Canada," said CEP National President Dave Coles. "We have got a serious case of misplaced priorities if the NEB refuses to hear Chevron's request based on the fact that questionable NAFTA rules would take precedence on very clear Canadian interests."

Chevron is attempting to meet its supply need by ensuring that a minimum amount of Canadian crude must go through the Burnaby refinery to be processed. The refinery is the only one remaining on the West coast and is running out of crude to process due to increased direct exports. However, the American company Tesoro who benefits from direct exports of Canadian crude has filed a motion to dismiss the case.

"Hearing this case is the first step to creating value-added production in the oil and gas sector not only for the community of Burnaby but for Canada's energy sector as a whole," added Coles. "Despite opposition from the very company that will profit from directly exporting Canadian crude, the NEB has a responsibility to hear Chevron's request."

The Communications, Energy and Paperworkers Union of Canada is the largest union in several key sectors of Canada's economy, including forestry, energy, telecommunications and media. CEP represents some 35,000 members employed in oil and gas extraction, transportation, refining, and conversion in the petrochemical and plastics sectors, and 120,000 members in total.

SOURCE: COMMUNICATIONS, ENERGY AND PAPERWORKERS UNION OF CANADA

Dave Coles, [email protected], [phone]
Fred Wilson, [email protected], [phone]
Steven Shrybman, [email protected]