FOR IMMEDIATE RELEASE
Media Contact:
Liz McDowell, CRED Executive Director
T: 604-219-6337
lizmcdowell@credbc.ca
PRESS RELEASE
NEW REPORT SHOWS KINDER MORGAN PIPELINE COULD PUT
HOME VALUES AT RISK
December 9, 2013
VANCOUVER, B.C – A new report released today by a group of BC business owners and
professionals reveals that an oil spill in in Burrard Inlet or along the coast has the potential to
negatively impact property values and cost jobs in real estate and property development, in areas
both adjacent to spill sites as well as the surrounding region.
The report, “How do pipeline spills impact property values?” was released by CRED BC, a group
of over 90 businesses leaders and professionals who hope to increase access to information and
support a transparent conversation around the economic risks and rewards of Kinder Morgan’s
proposed new Trans Mountain pipeline.
The report concludes that oil spills have direct and lasting impacts on property values. Real-world
experiences from across North America, including the Burnaby pipeline rupture in 2007, are
documented in the study and show that while directly contaminated properties faced the most
significant loss, even neighbouring homes lost value because of public perception and
reputation.
“The numbers outlined in this study are taken from real world experiences, where homeowners
and adjacent businesses saw and still see negative impacts, not only to their property values, but
to the perception of their community and its long term-livability post spill,” said CRED Advisor and
UBC resource economist, Dr. Rashid Sumaila. “The goal of CRED is to ensure that the public has
access to this and other vital information to understand the risks that this type of infrastructure
development presents to communities.”
The importance of public perception is supported by a recent Angus Reid public opinion survey
where 43% of respondents said they would not buy a home near an oil pipeline and a further 25%
said they had reservations that would significantly influence their decision to buy a home nearby.
The CRED report found that:
 In eight documented cases, properties directly impacted by spills were significantly
devalued
 Nearby properties lost up to 8% of their value
 Where homes relied on well water & the groundwater was contaminated, the value loss
was permanent
“As a realtor I have noticed that with the huge amount of negative publicity surrounding the
expansion of this pipeline, people are on red alert and are very aware of the potential impacts of
the pipeline on their properties,” said Fraser Valley-based realtor Annabel Young. “As a result,
buyers will typically avoid a property anywhere near a pipeline and this does have a negative
impact on values.”
Real estate is a significant economic driver in BC. There are 14,000 real estate agents in the
Greater Vancouver area alone who are making a good living and giving back to the communities
they serve. As a whole, the property development sector is responsible for more than 220,000
direct and indirect jobs in BC. CRED has concerns that the impacts to these sectors, whose
FOR IMMEDIATE RELEASE
Media Contact:
Liz McDowell, CRED Executive Director
T: 604-219-6337
lizmcdowell@credbc.ca
contributions to BC’s GDP are bigger than any other industry, would be significant if a spill were
to occur in the Lower Mainland or off BC's south coast.
The report also noted that spills do happen. In 2011, the National Energy Board reported 2 safety
incidents (ranging from fires to spills) per 1,000km of pipeline, part of a trend of increasing
pipeline incidents in Canada. The existing Trans Mountain pipeline is 1,150km long and has
reported 80 spills over its lifetime.
CRED is calling for an independent study of the economic risks of the proposal.
CRED Executive Director Liz McDowell adds: “Until the full extent of these risks is known in BC,
are we willing to take the risk of developing pipelines and increasing tanker traffic? We want to
see more study, transparency and meaningful conversations before any approvals happen,
especially considering the possible impact on sectors that our province relies on for employment
and prosperity.”
- 30 About CRED:
Conversations for Responsible Economic Development is a collection of professionals and
business leaders from the tourism, real estate, tech, health, creative and other service-based
sectors who are committed to participating in informed dialogue about long-term prosperity on
Canada’s west coast. Its mission is to protect the regional economy from threats to long-term
development, promote industries that build on BC’s creativity, innovation and natural beauty, and
foster conversations about the types of energy and resource development and transportation that
are compatible with this vision. CRED advisors include restauranteur Meeru Dhalwala, tech
entrepreneur Bradley Shende, screenwriter Tarah Stafford, North Shore realtor Dallas LaPorta
and UBC economist Dr. Rashid Sumaila.