Stakes raised in pipeline fight

VICTORIA (CP) — British Columbia’s attorney general is threatening to sue if a new law introduced in Alberta causes gasoline prices in B.C. to skyrocket.

David Eby says it’s unconstitutional for one province to use energy policy to punish another province, and B.C. is prepared to take legal action against Alberta.

The Alberta government on Monday introduced legislation that would allow for the restriction of oil, gasoline and natural gas leaving that province, which could cause fuel prices in B.C. to jump.

Once passed, Alberta Energy Minister Marg McCuaig-Boyd would be able to direct truckers, pipeline companies and rail operators on how much product could be shipped and when. Violators would face fines of up to $1 million a day for individuals and $10 million a day for corporations.

“The bill sends a clear message: we will use every tool at our disposal to defend Albertans (and) to defend our resources,” said Alberta Premier Rachel Notley.

Existing pipelines are near capacity, and the bill aims to give Alberta the power to adjust what is shipped and where it goes to ensure maximum profitability, she said.

Alberta is locked in a dispute with British Columbia over the Trans Mountain pipeline. An expansion to the West Coast has been approved by the federal government, but B.C. is fighting it in the courts.

Notley said the Kinder Morgan project’s delay costs Canada $40 million a day in lost revenue due to market bottlenecks and higher shipping fees.

Pipeline owner Kinder Morgan has suspended all non-essential spending on the $7.4-billion project as the federal government tries to reassure the company’s investors by May 31 that the project will move forward despite opposition from the B.C. government.