PIPELINE OPPONENTS HAVE NEW TOP TARGET
The federal government’s purchase of the Trans Mountain Pipeline has re-drawn the battle map that has defined the controversial project for years, pitting Justin Trudeau in a direct standoff with B.C.’s John Horgan and Indigenous leaders refusing to back down.
Instead of a Texas oil company, the bad guy for many will now be Trudeau, who once framed himself B.C.’s golden child and defender of the province’s “pristine coast.”
Until the federal government finds a permanent owner, Ottawa will now foot the costs of construction. It means it will be the target of opponents that include environmental and citizen groups, some First Nations and municipalities such as Burnaby and Vancouver.
More than 200 protesters have been arrested, and opponents vowed to step up their fight Tuesday.
The federal Liberals could find themselves at the helm of the controversial project well into 2019 and perhaps beyond as industry observers say it is unlikely the government would find a buyer until the courts rule on whether the Horgan government has any authority to regulate the transport of bitumen through B.C.
Horgan said Tuesday he will continue with his reference case, launched this spring in the B.C. Court of Appeal, to determine if the province can restrict heavy oil shipments and create new spill and cleanup funding rules.
Horgan said federal ownership won’t alter his government’s actions because the reference case is not specific to any pipeline.
“I’m concerned that there could be catastrophic consequences of a diluted bitumen spill regardless of the owner of the pipeline,” he said. “I do believe the federal government now is totally accountable not just for regulation and approval of a pipeline, but they are now responsible from wellhead to tidewater and beyond. That allows me to have more candid discussions with the owners of the pipeline than I would have when they were shareholders of a Texasbased oil company.”
Other opponents lost little time Tuesday saying they had no intention of backing down, announcing a rally that evening on the shore of False Creek that included representatives of First Nations and Vancouver Mayor Gregor Robertson.
“This is the moment in history where Justin Trudeau has revealed that he never cared about Indigenous rights or reconciliation,” said Will George, a member of the Tsleil-Waututh First Nation.
Backed by oil producers, the Alberta government, business groups and some unions, the project would triple capacity to the pipeline’s marine terminus at Burnaby, allowing increased ocean shipments from the Alberta oilsands to the U.S. west coast and opening new markets in Asia.
Opponents’ concerns are directed at increased tanker traffic through Burrard Inlet and the Salish Sea and the potential for a spill and increased carbon emissions from oilsands development.
Kinder Morgan Canada, the Trans Mountain owner until the deal with Ottawa closes later this year, had demanded certainty by May 31 that it could build the project through B.C., pointing the finger directly at the B.C. government’s court case. Also hanging over the project is a yet-to-come Federal Court of Appeal decision led by First Nations, including the Tsleil-Waututh, challenging the federal government’s approval of the expansion.
Those legal uncertainties don’t disappear with the federal purchase, say legal experts.
“Does this change the constitutional picture? Not immediately, no,” said Margot Young, a University of B.C. law professor. “Even if they get resolved in the federal government’s favour, there is still the public protest and outcry. And it’s not insignificant either, particularly given the strength of Indigenous opposition to the project.”
Dwight Newman, a University of Saskatchewan law professor, said that under the best circumstances B.C.’s reference case, likely to end up at the Supreme Court of Canada, would not be resolved until mid-2019.
The purchase of the project, if it is handed over to a federal Crown corporation, could somewhat immunize the pipeline from provincial and municipal interference. However, that would be complicated if Ottawa ownership is temporary, said Newman, who holds a Canada research chair in Indigenous rights at the University of Saskatchewan.
Industry observers say until jurisdictional issues are resolved, it will be difficult for Ottawa to find a buyer.
“I would be very surprised if you could get a private-sector buyer to come in until that process has run its course,” said Ed Kallio, a principal of Calgary-based Eau Claire Energy Advisory Inc.
If the courts eventually favour the B.C. government in some measure — something legal experts say is a possibility, although Kallio believes it is not likely — things get “interesting,” he said.
At that point, the federal government would have to work out a deal with B.C., he said.
George Hoberg, a professor in the University of B.C.’s School of Public Policy and Global Affairs, said the First Nations’ legal challenge is key.
It’s not inconceivable the courts could invalidate the project’s permits, which means “we just bought ourselves a useless project,” said Hoberg.
The federal government’s announced purchase of the Trans Mountain project comes as the B.C. NDP and Greens celebrate the first anniversary of their minority governance deal.
“I have never felt more closely linked and aligned with the values of the B.C. NDP as I do today,” said Green Leader Andrew Weaver.
He said he was delighted with the direction the Horgan government was taking in fighting a pipeline that presents too much of a potential environmental risk.
But Opposition B.C. Liberal Leader Andrew Wilkinson said the Kinder Morgan dispute has left B.C. with a reputation as a dangerous place for private-sector investment.
The pipeline was approved by the previous B.C. Liberal government and has continued to be issued various permits by the current NDP government even as it challenges the project in court.
“We have now in British Columbia a reckless and erratic government that is showing investors should have no confidence in this province until this government changes,” said Wilkinson.
Even if they get resolved in the federal government’s favour, there is still the public protest and outcry.