COURT PLUGS UP PIPELINE PROJECT
Ottawa reiterates Trans Mountain project is in the national interest
As First Nations and environmentalists celebrated Thursday’s Federal Court of Appeal decision to quash approval of the $9.3-billion Trans Mountain oil pipeline expansion, one thing is clear: More delay and higher costs if the project does go ahead.
In a unanimous decision, the court found Canada had not adequately consulted each of six First Nations that challenged the project’s approval. The three-judge court, in its 263-page decision written by judge Eleanor Dawson, also found the scope of the National Energy Board’s review “unjustifiably” did not include tanker traffic related to the project, which will have a negative effect on endangered killer whales, also known as orcas.
The project has been controversial in British Columbia, particularly in the Lower Mainland, where there have been years of protest, rallies and, most recently, arrests.
Also on Thursday, Houston, Texas-based Kinder Morgan announced that shareholders approved the $4.5-billion sale of the expansion project and existing Trans Mountain Pipeline to Canada.
Kinder Morgan had balked at continuing to build the project because of opposition in B.C., particularly from the NDP government that came to power in 2017, so Canada announced in May a deal to buy Trans Mountain.
In responding to the decision during a news conference, federal Finance Minister Bill Morneau reiterated that his government believes the Trans Mountain expansion is in the national interest, saying the court decision and Kinder Morgan shareholder approval “are important steps in getting this project built in the right way for the benefit of all Canadians.”
For his part, Prime Minister Justin Trudeau said on Twitter: “Today I spoke with Premier Rachel Notley — and reassured her that the federal government stands by the TMX expansion project and will ensure it moves forward in the right way.”
Notley called on the federal government to immediately appeal the ruling to the Supreme Court of Canada. She said Trudeau must also call an emergency session of Parliament to fix the process so that the pipeline can be built.
Until that happens, Notley said Alberta will remain outside the federal climate plan.
“This ruling is bad for working families and it is bad for the security of our country, the economic security of our country,” Notley said in Edmonton. “It is a crisis.”
Some First Nations and environmental groups, however, called for the Trudeau government to abandon the project in the face of the sweeping federal court decision.
“Now they’re going to have to take a second look and they’re going to have to find a way to work with all of us,” Tsleil-Waututh First Nation Chief Maureen Thomas said at a news conference at a Vancouver park on the shore of Burrard Inlet.
Added Reuben George, a Tsleil-Waututh member who helped lead the pipeline fight: “It’s a proud moment for us as Indigenous people across the country … Little nations came together and created victory and this is a victory for all of us.”
The Squamish Nation said the court decision reinforces its belief the project must not proceed.
“We tell the prime minister to start listening and put an end to this type of relationship,” said Khelsilem, also known as Dustin Rivers, a councillor and spokesperson for the Squamish Nation.
Morneau had no immediate answer on whether Ottawa would appeal the decision to the Supreme Court of Canada or adhere to its finding and begin consultations and re-examine the effects of tanker traffic, which could involve new regulatory hearings.
Tanker traffic will increase nearly seven-fold, as tripling the capacity of the pipeline is meant to open up new Asian markets to the Alberta oilsands.
In its decision, the federal court cited numerous instances where there was no meaningful two-way dialogue with First Nations or consideration of mitigation measures, including a request by the Cold Water Indian Band to reroute the pipeline away from an aquifer.
The court also said Canada had no meaningful response to the Squamish Nation’s concern that too little was known about how diluted bitumen would behave if spilled and that this uncertainty made it premature to approve the project. And the federal court said while Canada’s implementation of an Indigenous advisory monitoring committee and a $1.5-billion oceans-protection plan was “laudable,” these initiatives were ill-defined because they were in an early planning stage and could not accommodate or mitigate any First Nations concerns when the project was approved.
Supporters of the project, including B.C. businesses and some unions, were stunned.
“This is troubling at many levels, for Greater Vancouver, British Columbia, and all of Canada,” said Iain Black, president and CEO of the Greater Vancouver Board of Trade. “This project was approved two years ago by the federal government, following the most rigorous process and environmental assessment in this country ’s history.”
B.C. Premier John Horgan praised the ruling as a victory for First Nations and environmental opponents, and credited the resolve of the Tsleil-Waututh Nation for taking the lead on the challenge.
“Today is a victory for the TsleilWaututh and I’m very proud they stood fast and made their case and were successful,” Horgan said.
B.C. will nonetheless proceed with its court reference case that seeks to clarify if it has the jurisdiction to restrict oil flows in pipelines that cross its borders.
“My view today … is that our reference case establishing jurisdiction not just for this government but for future B.C. governments is still important,” he said.