Supreme Court dismisses B.C.TMX case

Decision issued after hours of hearings

The Supreme Court of Canada has shut down British Columbia’s attempt to regulate what can flow through an expanded Trans Mountain pipeline from Alberta. The B.C. government wanted to require provincial permits before heavy oil could be shipped through pipelines in the province.

In 2018, it asked the B.C. Court of Appeal if such permits were in bounds. Last May that court said no, ruling they would violate Ottawa’s authority under the Constitution to approve and regulate any pipeline that crosses a provincial border.

On Thursday, the Supreme Court agreed.

“We are all of the view to dismiss the appeal for the unanimous reasons of the Court of Appeal for British Columbia,” Chief Justice Richard Wagner said.

The decision was issued from the bench after several hours of hearings Thursday in Ottawa.

It removes one of the remaining obstacles for the Trans Mountain pipeline expansion, which seeks to twin an existing pipeline running between Edmonton and Burnaby, B.C.

The twinned pipeline, with roughly twice the capacity of the original, would carry only diluted bitumen, a heavy crude produced in Alberta’s oilsands. The existing pipeline is to continue to ship mainly refined petroleum products like gasoline, and light crude.

Canada’s Natural Resources Minister Seamus O’Regan welcomed the ruling.

“It is a core responsibility of the federal government to help get Canada’s resources to market and support good, middle-class jobs,” he said in a statement.

“We know this is only possible when we earn public trust and work to address environmental, Indigenous peoples’ and local concerns, which we are doing every step of the way on TMX.”

Federal lawyers argued B.C.’s attempt to require provincial permits for heavy oil to flow through pipelines was a clear imposition on

the constitutional authority given to Ottawa over interprovincial pipelines.

Several of the judges on the Supreme Court agreed in their statements and questions throughout Thursday’s hearing, before issuing their quick dismissal.

B.C’s New Democrat government was elected in 2017 partly on a promise to oppose the expansion but the province had limited options because of the Constitution.

Still, B.C. argued it has jurisdiction to protect the environment within its borders and, since its land and people would bear the brunt of any damage from a spill if the pipeline ruptured, it should get a say in what

can flow through it.

B.C. Premier John Horgan expressed the province’s disappointment in a statement.

“Our government takes our responsibility to defend the interests of British Columbians seriously” he said. “When it comes to protecting our coast, our environment and our economy, we will continue do all we can within our jurisdiction.”

The case had national implications for any project that crosses provincial boundaries, prompting Alberta, Saskatchewan, Ontario and Quebec to all seek intervener status. All but Quebec sided entirely with the federal government.