Notley threatens to turn off the oil taps in B.C. rift

EDMONTON — Alberta Premier Rachel Notley is threatening to turn off the oil taps in a fight with B.C. over the Trans Mountain pipeline expansion.

Notley won’t say if she would cut off B.C. or the rest of Canada — or both — but said her government is ready to pass legislation to make it happen.

“Our key focus is getting people’s attention on the matter,” Notley told a news conference Thursday prior to the speech from the throne to open the next session of the legislature. “We’re not interested in creating any kind of crisis in any way, shape or form. We’re going to be measured. We’re going to be careful.”

The $7.9-billion pipeline expansion would triple the amount of Alberta crude going from Edmonton to the port in Burnaby. Prime Minister Justin Trudeau’s government approved the Kinder Morgan project in 2016, but the pipeline has since faced permit fights and challenges from B.C.

Alberta has already imposed and pulled back on a ban of wine from B.C., but Notley said the government will not stand for further delays and harassment.

She said the project is vital to Alberta and to the rest of Canada, and the country is forgoing thousands of jobs and millions of dollars in lost revenue due to pipeline bottlenecks.

“There are many tools that we also have between our previous wine ban and this tool,” said Notley. “All we are doing is making sure that our tools are at the ready, because it is important for Albertans to understand that we are going to stand up to protect the interests of Albertans.”

Notley said the province is looking at taking action on oil and natural gas. Alberta exports 44,000 barrels per day of gasoline and 47,000 barrels of diesel to B.C., representing more than 20 per cent of its production.

Alberta exports 2.4 billion cubic feet per day of marketable natural gas to B.C. per day, representing one quarter of its production. About 17 per cent of those exports are used by B.C., with the rest going to the U.S.

Notley’s move echoes action taken in 1980 by former Alberta premier Peter Lougheed in a showdown with Ottawa. Lougheed announced phased cuts to oil flows — 15 per cent over nine months as well as the cancellation of two large oilsands projects after Pierre Trudeau brought in the national energy program with price controls, taxes and revenue sharing. The sides brokered a compromise after Lougheed turned off the taps.

B.C. Environment Minister George Heyman responded to Notley by saying the province will continue to defend its interests when it comes to protecting the environment. “I see no reason for the government of Alberta to take any action when all B.C. has been doing is standing up for our interests,” he said. “We’re proposing some regulations that are well within our jurisdiction. We’re determined to defend our environment, our economy and our coast line.”

Heyman said B.C. would expect the dispute to be settled in court. “We’ve tried to be the adults in the room here,” he said.