Notley confident bill can withstand any legal challenge

The tipping point will be May 31. That’s the deadline Kinder Morgan Inc. identified when it announced last week it was halting all non-essential spending on the $7.4-billion Trans Mountain pipeline expansion project.

If the future of the project continues to look bleak, Notley said, that’s when her government might look to the legislation. In short, it will be there if Alberta needs it.

“This bill sends a clear message,” she said. “We will use every tool at our disposal to defend Albertans.”

United Conservative Party Leader Jason Kenney told reporters Monday he supports the goal of the bill, but worries it’s more about political optics than taking action.

His party is still examining the details, but he said it will likely propose adding a sunset clause.

“We don’t want to be on an economic war footing forever in the future,” Kenney said.

Kenney said it’s inevitable that B.C. will take retaliatory measures — “that’s the nature of a trade war,” he said — but thinks Alberta has more leverage.

The bill comes on the heels of a Sunday meeting in Ottawa between Notley, B.C. Premier John Horgan and Prime Minister Justin Trudeau.

At that meeting, Trudeau said he’d asked his finance minister to enter negotiations with Kinder Morgan to “remove the uncertainty” hanging over the project.

Notley said Horgan also asked her not to move forward on legislation to turn off the taps to B.C., but she told him delaying the project costs the country about $40 million per day.

The national economy is at stake, she said.

Notley called the timing of the bill “coincidental” as it relates to pressuring B.C., but said Alberta is quickly approaching full pipeline capacity and must make decisions about getting the best bang for its oil buck.

There’s a good chance that will result in higher gas prices on the Lower Mainland.

After all, Notley said, Alberta needs maximum pipeline capacity for bitumen. That may end up pushing refined fuel exports to rail — a more expensive, less safe way to ship the product, she said.

Notley admitted oil and gas companies are nervous about the bill, but they also know Canada is at a key turning point in getting product to market.

She said her government has already spoken with the sector and “there will be no surprises” for companies applying for a licence.

She is also confident Bill 12 can withstand any legal challenges, be they under NAFTA, interprovincial trade agreements or constitutional law.

If the legislation is passed as it stands, anyone that flouts the rules will be guilty of an offence.

Companies could be fined $10 million for each day of the offence, and individuals $1 million per day.

This bill sends a clear message. We will use every tool at our disposal to defend Albertans.