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“The new NWU arrangement was presented to cabinet and caucus as a done deal that would deliver on the premier’s promise to incent more upgrading in Alberta,” Morton explained in the academic paper that reads more like a tell-all tale. “Caucus heard a lot about capturing the ‘value-added,’ but was told almost nothing about the significant financial risk that the GOA (government of Alberta) was now assuming. I am certain that the majority of caucus did not even understand the changes that had been made to the original deal.”

He said the deal, “cheered on by Edmonton-area ministers and MLAs,” got a “free pass” through caucus.

The fact the project features a carbon capture and storage component was also a factor in the government’s agreement to new terms when the economy collapsed, threatening the deal in 2008, he said.

“That was a contributing factor,” he said in an interview. “We committed $2 billion as part of a carbon dioxide reduction strategy so if this could contribute to that, that was important.”

Morton said he objected in vain to the new deal, but it was championed by then premier Ed Stelmach and Doug Horner, who represented the riding where the refinery, now called the Sturgeon Refinery, is being built.

“All the crucial decisions were made by a small working group of ministers and senior officials,” he said.

The initial plan to promote bitumen upgrading in Alberta was a good idea, but it became risky when the government agreed to commit to toll payments, loans and loan guarantees to help the project lure investors as construction costs doubled to $8 billion, he said.