THE TRANS MOUNTAIN PIPELINE RULING: FIVE KEY POINTS

The Federal Court of Appeal on Thursday released its decision on the expansion project. Lori Culbert breaks it down:

1.

What happened The Federal Court of Appeal quashed approval of the $9.3-billion Trans Mountain oil pipeline expansion on two grounds. First, the court found Canada had inadequate consultation with First Nations at the final stage, concluding Ottawa “failed to engage dialogue meaningfully and grapple with the real concerns of the Indigenous applicants so as to explore possible accommodation of those concerns.” Second, the scope of the review “unjustifiably” did not include project-related tanker traffic, even though the National Energy Board was “legally obligated” to consider environmental effects.

2.

What’s at stake financially The pipeline is owned by U.S. and Canada-based Kinder Morgan Ltd., but the federal Liberal government announced in the spring its plans to buy Trans Mountain and Kinder Morgan Canada’s core assets for $4.5 billion to ensure the oilsands pipeline expansion gets built. Also on Thursday, Kinder Morgan’s shareholders voted more than 99 per cent in favour of the sale to Ottawa. The company said the court decision was not a condition of the sale to the federal government. Finance Minister Bill Morneau continued to insist Thursday that it was still in the “national interest” to get the pipeline completed.

3.

What’s next?

The court decision was clear that Ottawa must re-do its consultations with First Nations before the project can be considered for approval again. Morneau said his government will review the court’s decision and will “respond promptly,” but added it was too soon to comment on whether Ottawa would appeal. As soon

as the ruling was issued, Trans Mountain started to take measures to suspend constructionrelated activities on the pipeline. The company says it is reviewing the decision and will take time to “assess next steps,” but remains committed to building the pipeline “in consideration of communities and the environment, with meaningful consultation with Indigenous Peoples.”

4.

What’s at stake provincially

Premier John Horgan said Thursday that the ruling vindicates the criticism that the National Energy Board approval process was flawed because, in part, marine traffic was not adequately considered. When asked if the pipeline project is dead, he said it will no longer be “top of mind for British Columbians.”

5.

Who’s happy and who’s not The Union of B.C. Indian Chiefs applauded the ruling and demanded the pipeline be shut down immediately, even though some First Nations were supporters of the project. Environmental groups celebrated the decision because it requires new consultations with First Nations and new environmental assessments. The cities of Burnaby and Vancouver both oppose the pipeline expansion, and Vancouver Mayor Gregor Robertson on Thursday hailed the court’s conclusion because the project “put our coast at huge risk of oil spills.” On the other hand, the Greater Vancouver Board of Trade lamented the ruling had “essentially halted” the pipeline. The Surrey Board of Trade said it was shocked, arguing moving crude oil by rail was far more hazardous. And the Progressive Contractors Association of Canada called it a lost opportunity “to generate thousands of jobs and billions in revenue.”