Less than a month after releasing a report into the potential for disaster from a major incident at a Trans Mountain Pipeline facility, the City of Burnaby has struck a deal with the company.

And the terms of the agreement have already sparked controversy.

“TMX has essentially bought the silence of the city, and at the same time, the city has essentially gagged itself, and that’s not democratic or ethical, and I wouldn’t be surprised if a strong argument could be made that it’s also illegal in violation of constitution or provincial or federal law,” said Duff Conacher with Democracy Watch.

Click to play video: 'Burnaby preparing for hypothetical Trans Mountain disaster'

In a sparse statement posted to its website, the City of Burnaby said it had finalized a “community contribution agreement” with Trans Mountain that will deliver $20.1 million to the municipality to “support emergency planning and safety enhancements.”

“The agreement highlights a shared commitment to collaborating in emergency response to any event involving Trans Mountain facilities,” the city said.

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But it is the fine print of the deal that has spurred concern.

Among the commitments is an agreement that the parties to the deal will cease “any negative public communications” about one another “whether based on fact or opinion or otherwise” and “including any communication regarding past disputes.”

The parties must also send any press releases that reference each other to the other party ahead of publication, and the City of Burnaby must remove all negative public communications about Trans Mountain from its website.

It’s a sudden about-face from a city whose long-standing public opposition to the $34 billion pipeline expansion was on display once again just a month ago, as it released a report and video simulation of a hypothetical catastrophe at Trans Mountain’s Burnaby Mountain tank farm or marine export terminal.

Click to play video: 'Trans Mountain Pipeline approval threatens orcas along B.C. coast: Green Party'

“Municipality, any level of government are supposed to uphold the law and protect the public, and if a company is doing something wrong hold them accountable, not collaborate with them and cooperate, that could easily turn into covering up something,” Conacher said.

While the deal does not prevent the mayor and councillors from talking about Trans Mountain, it does raise questions about what they would be able to say, given the agreement prevents staff from publicly speaking out against the company.

Burnaby Mayor Mike Hurley, the City of Burnaby and Trans Mountain did not respond to requests for interviews.

— with files from Rumina Daya