NOTLEY DECLARES ‘SMALL VICTORY’ AS HORGAN PIVOTS
Premiers’ actions mark a much-needed de-escalation by all sides in trade battle
Thursday was a study in contrasts between the NDP premiers of British Columbia and Alberta as they turned down the boiling temperature in the bitumen battle and wine blockade.
On one side of the Rockies, a sombre B.C. Premier John Horgan announced he’s pivoting on his plan to proceed with proposed regulations that would restrict bitumen shipments moving through that province.
Instead, he’ll refer the jurisdictional issue to the courts.
On the other side, Rachel Notley declared a “small victory” in this province’s push to improve access to tidewater for Alberta oil, while announcing she will suspend her government’s embargo of B.C. wine imports.
These decisions won’t fix the fundamental disagreement between neighbours over oil pipelines and bitumen, but it marks the first real progress since a trade fight began last month — and a much-needed de-escalation by all sides.
“This is intended to have cooler heads prevail. We believe that the rule of law is important in this country,” Horgan told reporters.
“The contentious points that (have) drawn the ire of Alberta and some consternation from the federal government will be put to the courts.”
Horgan didn’t wave a white flag or beat a full retreat from the dispute with Alberta over the Trans Mountain pipeline.
He didn’t have to.
At the Alberta legislature, Notley was more than willing to paint it as such.
“B.C. is stepping back from the brink and abiding by the law,” she said. “It’s fair to say that in a small way, today B.C. blinked.”
In making a unilateral declaration of victory, Notley said she has advised the Alberta Gaming and Liquor Commission to suspend the current ban on B.C. wines heading into this province. The retaliatory measure was unveiled earlier this month.
If her reading of the situation is correct, B.C.’s step may well put an end to the immediate tension between the two western provinces.
The broader issue, of course, is the future of the Trans Mountain pipeline expansion, a $7.4-billion project that Alberta considers to be a linchpin to future economic success.
The project would triple the amount of oil moving from the Edmonton area to the West Coast, and potentially to new export markets in Asia. It should help petroleum producers get higher prices for their product and generate additional royalties for the Alberta treasury.
Horgan vowed during last year’s B.C. election campaign to use every tool at his disposal to sidetrack the development, citing environmental concerns with the pipeline. Despite Trans Mountain having received approval from the National Energy Board and federal government, Horgan’s proposal to restrict increased diluted bitumen shipments through B.C. would have had significant implications.
Legal authorities, as well as the Alberta and Trudeau governments, insist regulation of interprovincial pipelines falls under federal authority and B.C. lacks the legal muscle to back up its restriction.
As Notley pointed out repeatedly during this dispute, the aggressive step wasn’t going to withstand a legal challenge, but was designed to harass the pipeline’s proponent, Kinder Morgan, and create more delays.
With the project already a year behind schedule, the last thing Kinder Morgan needs is more uncertainty.
Trans Mountain officials issued a statement late Thursday, saying they were “pleased the province of B.C. is no longer proposing regulatory restrictions be placed on the expansion of diluted bitumen shipments.”
B.C. will proceed with several other measures it planned to study oil spill response, but will have its lawyers prepare a con- stitutional reference case to the courts on its proposed bitumen limitations.
Horgan asked the federal government to work together on the court reference, but was rebuffed.
Regardless, British Columbia will abide by whatever the courts decide, he said.
“We’ve had one province and the federal government making suggestions they know best, we’ve seen numerous precedents that suggest we’re in the right and that’s why we’re going this route,” he said.
Despite both sides easing up on the rhetoric, Horgan wasn’t about to get conciliatory words from Ottawa on the legal front.
“Federal jurisdiction in this matter is clear,” said a statement from Laurel Munroe, spokeswoman for Natural Resources Minister Jim Carr.
“Today’s announcement by the B.C. government only serves to illustrate that it knows it does not have constitutional authority over interprovincial pipelines. We declined to join B.C.’s legal strategy because it is groundless.”
Likewise, Notley said several times Thursday she’s confident that the court reference will not be successful for B.C.
For those who want to see the project built — a new poll indicates that includes 78 per cent of Albertans — that would be welcome news.
But there’s another possibility to consider in Thursday’s armistice.
The threat of the legal reference could create more uncertainty for the project in the months ahead, even if its chances of success are slim.
“I see it more as a tactical pivot than a retreat,” said political scientist David Moscrop at Simon Fraser University.
“I just think it’s one long stall. I don’t think they really expect to win it.”
Further stalling will be a key issue to watch moving ahead.
Notley might be able to declare the bitumen restriction is now off the table, or will be if it’s shot down in the court system.
But that doesn’t mean B.C.’s premier won’t be grabbing another tool from his tool box in the weeks ahead.
This detente may only be temporary.