NEB ordered to revisit decision on gas pipeline in northern B.C.

A Federal Court of Appeal judge has ruled the National Energy Board must reconsider whether a proposed TransCanada Corp. natural gas pipeline in B.C. falls under provincial or federal jurisdiction.

“The board did not ask itself whether an arguable case for federal jurisdiction had been made out,” Donald J. Rennie said in his judgment Wednesday in a case launched by Michael Sawyer, who received funding support from the SkeenaWild Conservation Trust.

Sawyer argued the Prince Rupert Gas Transmission Project, a 900-kilometre proposed pipeline from Hudson’s Hope to Lelu Island near Prince Rupert, required federal and not provincial approvals.

The province has already approved the pipeline project, but TransCanada Corp. is waiting to receive a final commitment from Pacific NorthWest LNG, which would build and operate the Lelu Island gas liquefaction plant, before starting pipeline construction.

Before the legal proceedings, Sawyer had filed an application to the NEB for the board to hold a hearing to determine what jurisdiction the pipeline project falls under. He argued that while it is located in the province, it will move gas destined to be exported.

The NEB rejected his application, but now must reconsider it due to Rennie’s ruling.

“The board is reviewing the court decision and will consider next steps after doing so,” said NEB spokesman James Stevenson in an email.

TransCanada has 60 days to apply for leave to appeal. Neither TransCanada nor the law firm representing the company immediately responded to a request for comment.