Premier urges Ottawa to appeal pipeline ruling

Trans Mountain delay hard hit for Saskatchewan economy, Moe says

Saskatchewan Premier Scott Moe says delays to the Trans Mountain pipeline expansion, brought about by a new federal Court of Appeal ruling, will have a “severe” effect on the provincial economy.

The planned Trans Mountain pipeline expansion is expected to triple the capacity of the Trans Mountain pipeline to move oil from Alberta to a port in British Columbia.

Though most oil running through the pipeline comes from Alberta, Moe says Saskatchewan stands to benefit from the expansion going ahead; oil from Saskatchewan sells at a discount in North America because it doesn’t have access to markets outside the United States, which creates a differential in price between what the province makes and what it could be making.

“A delay of this project in any way to the province of Saskatchewan ultimately means that we will go a longer period of time with the large oil differential that we experience,” Moe told reporters at a news conference Thursday, estimating that could be in the ballpark of $2 billion a year.

“The impact economically to the province and industry, to the jobs that we have in this province, is severe. So we would like to see this project start construction as soon as possible, see it through to fruition, so that we can access other markets with our Western Canadian oil and provide the opportunity to start to narrow that price differential that Saskatchewan is experiencing at the moment.”

Earlier Thursday, the Federal Court of Appeal announced that the National Energy Board’s review of the expansion proposal was so flawed that the federal government could not have relied on it when making a decision about whether to go ahead with the project.

The court also said the government did not adequately consult with First Nations before approving the project.

The federal government will need to conduct a new review of the project and hold more consultations with First Nations groups before the expansion goes ahead.

Federal Finance Minister Bill Morneau has said the government will continue to move forward with the project.

An offer by the federal government to purchase the existing Trans Mountain pipeline and expansion from Kinder Morgan Canada for $4.5 billion was approved by the company Thursday morning after the court decision was released.

Moe said he encourages the federal government to launch an appeal to the Supreme Court of Canada “at the first opportunity.”

“Although we do have concerns that the time that that would take would be problematic for this project, so we would also encourage the federal government to explore what legislative options they have to ensure that we can start the construction of this pipeline — this ever-so-important piece of infrastructure to the nation of Canada — as soon as possible and see it through to completion so that we can continue to increase the wealth for all Canadians,” he said.

Meanwhile, the Federation of Sovereign Indigenous Nations issued a news release Thursday welcoming the decision.

“It seems clear to me that the quasi-judicial boards, such as the National Energy Board, which determines whether First Nations were adequately consulted, are failing the First Nations peoples in this country,” FSIN Vice Chief Heather Bear said in the release. “This is a costly mistake for government, given that the project may be held up in court for years. Government, whether at the federal or provincial level, cannot repeatedly run roughshod over our Treaty rights.”