IT’S TIME FOR TRUDEAU TO LAY DOWN THE LAW ON B.C.

to use it.

On the legal front, Horgan is emerging as an emperor with no clothes on the $7.4 billion project, which he wants to stop at any cost because his minority government depends on three Green MLAs to stay in power.

Calgary Senator Doug Black, an energy lawyer, said it’s been obvious for months Horgan’s intentions are not legitimate.

“They are endeavouring to use the courts inappropriately as a tool,” he said. “They are not interested in the law. They are interested in delay and frustrating.”

Law-abiding British Columbians should be concerned by revelations this week that their premier has known since his first days as the head of government last summer that his top campaign pledge — to “use all tools in the toolbox” to kill the project — was legally indefensible.

Here’s how George Heyman, the environment minister, spilled the beans following relentless questioning from Liberal Mike de Jong in the Victoria legislature this week:

“When the Premier offered me the position of minister of environment and climate change strategy, and asked if I was interested and had a discussion with me about what I would see in my mandate letter, he was very clear that as part of transition, he had been given the legal advice that stopping the project was beyond the jurisdiction of B.C., and to talk about it or frame our actions around doing that, as opposed to defending B.C.’s coast through a variety of measures that were within our jurisdiction, would be inappropriate and unlawful.”

That’s why, Heyman said, his government’s strategy has switched to “apply conditions that are attached to the environmental assessment, a certificate, and to propose regulations to defend B.C.’s coast, but it is not appropriate to “stop the project” or to delay the project through anything other than even-handed consideration of permit applications. That is what we have tried to do at every step of the way.”

The problem is Horgan has continued to threaten to do whatever it takes to stop the project, while being dismissive of concerns he’s pushing the country into a constitutional crisis and exposing British Columbians to billions in liability if project proponent Kinder Morgan Canada Ltd. pulls out and sues to recover its losses. The company has already halted work and threatened to walk away, blaming continuing harassment from the B.C. government.

Horgan’s explanation: “We said during the election campaign that we felt the National Energy Board process was flawed,” he said in the legislature. “And it turns out that the federal government agrees. After they made the flawed decision on Kinder Morgan, the federal government is now rewriting the National Energy Board processes, because they recognize they’re inadequate. I say, for British Columbians, we shouldn’t have to take the last bad decision by the NEB. We should revisit this thing in the interest of British Columbia to defend our coast and defend our interests.”

It could get worse for Horgan. The Federal Court of Appeal is expected to rule any day on a challenge of the National Energy Board permit to build the Trans Mountain expansion based on claims that Ottawa failed to properly consult Indigenous communities and others. Horgan joined that challenge last fall and is counting on a victory. So far Trans Mountain has won in court 14 to 0 and the Alberta government, which sided with Trans Mountain, is very confident the court will uphold the permit.

Horgan has another legal Hail Mary pass up his sleeve, a reference case to determine whether B.C. has any jurisdiction over Trans Mountain. So far nothing has been filed and the court hasn’t been determined, Heyman said.

In contrast, here’s what is really happening, legally and otherwise, that could seriously clip Horgan’s wings: On Monday, Alberta will put in motion legislation to cut off B.C. Premier John Horgan, left, and Prime Minister Justin Trudeau, along with Alberta Premier Rachel Notley, will meet Sunday over the Trans Mountain dispute. oil supplies to B.C., a measure that is expected to boost already high gasoline prices in the Lower Mainland.

On Tuesday, the Senate will continue debate on a bill introduced by Senator Black to declare the Trans Mountain pipeline expansion a work for the general advantage of Canada. If passed, Black said it would give Ottawa complete control and force Horgan to stand down. “Then he can sputter all he wants, but he can’t do anything to imperil the project,” Black said.

Other measures are also being considered, such as government investment in the pipeline and cutting off $4.1-billion in federal infrastructure funding in B.C.

It’s possible Trudeau has convened the meeting just to show Canadians he’s on top of the file. Expectations of a truce are low. Horgan has already said: “There is nothing to stand down from. We are in court. We are going to stay in court.” Indeed.

One of the big problems with Canada’s pipeline struggles is that it costs little or nothing to oppose them. The Prime Minister can fix that by making it clear on Sunday that opposition to a lawfully approved project – such as the one incited by Horgan — comes with consequences. both the valuation published by the analysts and to the company’s IFRS valuation (US$6.53) of its net asset value. And an all-cash sale would have meant the end of any alternative dilutive transaction.

And that may have been the real motivation for Vision to go public with its views: It didn’t want the target spending time trying to round up an alternative transaction.

One such alternative transaction could have been a vending in of some privately held real estate assets, a move that would have been dilutive if the vendor had been paid in stock. And it may not have been shareholder friendly given that such stock issuance may not have required a shareholder vote.

And an acquisition, if that was the plan, presumably would have required issuing shares (not cash) to the vendor. How come? Raising equity at a price below what Electra was prepared to offer would seem to be an obvious non-starter.

Andrew Greig, Pure’s vice-president of investor relations, said any questions about issuing equity, and at what price, was “a hypothetical situation.”

As for taking on additional bank or mortgage debt to make an acquisition, that seems unlikely given that the issuer touted its success in reducing its debt-to-gross book value ratio when it released in 2017 financial statements in March. What’s next? Greig said the board and the special committee overseeing the strategic review is going through its process. “It’s beginning,” he said, adding, “Electra has not been withdrawn from the list of potential suitors. We are opening the doors to others.”