Pipeline fuelling drama as deadline looms

By passing Bill 12, Rachel Notley’s Alberta government has effectively pointed an economic howitzer at British Columbia.

But does the Alberta premier have the nerve to actually pull the trigger, choke off oil and gas shipments to B.C. and drive the price of gasoline here to three bucks a litre or more?

The bill is officially known as Preserving Canada’s Economic Prosperity Act and gives Notley authority to “turn off the taps” and cut crucial fuel shipments in retaliation against B.C.’s opposition to the Kinder Morgan pipeline expansion project.

B.C. Attorney General David Eby calls it a “bluff,” but he filed a counter-lawsuit against Alberta anyway, calling the new law unconstitutional.

Now Notley is under extreme domestic pressure to back up her tough talk with tougher action.

“We’ll help you load this economic weapon by supporting Bill 12,” Prasad Panda, energy critic for the opposition United Conservative Party, told the Alberta legislature.

“But will the government pull the trigger? Is British Columbia prepared for $2 or $3 for a litre of gasoline? We’ll see.”

Panda sketched out a series of ramifications if Alberta actually does cut fuel shipments to B.C., including the possibility neighbouring Washington state could get caught up in the battle.

He pointed out Washington fuel refineries rely on Alberta crude oil piped through B.C. and then across the Canada-U.S. border. Enforcing Bill 12 could trigger a NAFTA challenge from the Americans, but he was not worried about that, saying it would be “poetic justice” if the dispute blows up into an international incident.

Still, the Alberta Tories expressed doubt Notley really wants to turn off the taps at all. And if she does go through with it, the B.C. government is confident a judge would order the taps to be turned back on during any court proceedings.

But there are others ways Alberta can punish B.C. in the escalating pipeline war.

“Perhaps we should find a way to conduct periodic ‘safety inspections’ of B.C. goods being exported through Alberta,” United Conservative Party Leader Jason Kenney told the Alberta legislature.

“Perhaps a toll ought to be applied on B.C. natural-gas exports that come through Alberta.”

Notley is hoping she won’t have to go that far. Despite all the public snarling between Notley and Horgan, the real action is happening in the private negotiations among Alberta, Kinder Morgan and the federal Liberal government of Justin Trudeau.

The feds have already offered to indemnify the company against any losses caused by Horgan’s anti-pipeline obstructionism. And Notley’s government has even offered to buy the whole pipeline outright if that’s what it takes to get it built.

Taxpayers should watch out for their wallets. While Notley and Horgan joust in public, the public’s money is being piled on the negotiating table in private.

Kinder Morgan’s May 31 deadline to resolve the impasse looms large. With a week to go, this could get nasty for the politicians and expensive for taxpayers.