When an oil pipeline or tanker spills, how many homes are impacted and what do those impacts look like?
Our recently released report How do pipeline spills impact property values? concludes that, although direct contamination certainly hurts a home’s value, even neighbouring areas can expect to lose some value in the aftermath of a spill or other incident.
This is because public perception extends beyond the homes that are directly impacted. Especially if it’s not the first spill or leak along a particular pipeline, the surrounding area’s reputation will suffer.
Three cases of reputational damage highlighted in the report show an average value loss of 5-8% for homes up to a kilometre away from the incident. In Vancouver, where the average price of a home is just over $600,000, this could amount to a loss of $30-40,000.
A Vancouver Sun article reports developments in the Enbridge hearings in Victoria this week:
A marine consultant involved in B.C. oil-spill issues for a quarter century says the risks of a tanker oil spill associated with Enbridge Northern Gateway are simply too great for the project to proceed.
Gerald Graham of Victoria-based Worldocean Consulting Ltd. said that calculations based on Enbridge’s own research show there is a 8.7-to-14.1-per-cent chance of at least one tanker spill greater than 31,500 barrels over a 50-year period, depending on whether the pipeline has a 525,000 or 850,000 barrel per day capacity.
“The consequences of a major oil spill along B.C.’s north coast … could be catastrophic and irreversible,” he says in a submission to the Joint Review Panel studying the Enbridge proposal. “Couple this potentially disastrous outcome with a one-in-seven chance of one or more major spills occurring, and the overall threat level posed by Northern Gateway becomes unacceptably high.”
Read the full article here