Bill allows Alberta to shut B.C. taps
Energy minister has power to halt flow of fuel in pipeline dispute
Alberta’s energy minister will wield the ultimate authority over crude oil, natural gas or refined fuels being shipped out of the province, under legislation tabled Monday.
Bill 12, The Preserving Canada’s Economic Prosperity Act, gives Energy Minister Margaret McCuaigBoyd extraordinary powers.
Under the act, she can decide if a company needs an export licence to send oil and gas outside Alberta’s borders — and it’s up to her whether or not she’ll grant one.
Each application will be subjected to a public interest test. Once a licence is granted, McCuaig-Boyd will be able to set maximum quantities, dictate how products are shipped (whether it’s by rail, pipeline or road) and the licence period. She will also have the ability to direct an operator to cease transporting natural gas, crude oil or refined fuels altogether.
If companies aren’t happy with her decision, the act’s appeal process means they’ll plead their case to cabinet. Premier Rachel Notley said at a Monday news conference the legislation won’t be used immediately. In fact, she’s confident it won’t have to be used at all.
The tipping point will be May 31. That’s the deadline Kinder Morgan Inc. identified when it announced last week it was halting all non-essential spending on the $7.4-billion Trans Mountain pipeline expansion project. If the future of the project continues to look bleak, Notley said, that’s when her government might look to the legislation. In short, it will be there if Alberta needs it.
“This bill sends a clear message,” she said. “We will use every tool at our disposal to defend Albertans.”
United Conservative Party Leader Jason Kenney told reporters Monday he supports the goal of the bill, but worries it’s more about political optics than taking action.
His party is still examining the details, but he said it will likely propose adding a sunset clause.
VICTORIA All sides in the escalating dispute over the Trans Mountain expansion project appear to be digging in with the Alberta and British Columbia governments clashing over fuel prices and Indigenous and political leaders warning of civil unrest
Tensions escalated Monday when B.C. Attorney General David Eby threatened to sue Alberta over legislation it introduced to restrict the flow of oil, gasoline and natural gas leaving that province, which could boost fuel prices in B.C.
“The immediate recourse that’s available to us is to potentially sue the Alberta government for an unconstitutional piece of legislation,” he said.
Eby said he can’t predict gasoline prices — now at about $1.50 per litre in Metro Vancouver — but “what I can say is any concern British Columbians have that a bill that preferentially punishes B.C. from the Alberta perspective and tries to drive up gas prices would be unconstitutional and we would take action immediately to address that.”
Premier Rachel Notley said the legislation sends the message that Alberta is prepared to defend its resources.
It would direct pipeline companies, truckers and rail operators on how much oil product they ship and when. Violators would face fines of up to $1 million a day for individuals and $10 million a day for corporations.
The legislation is the latest manoeuvre in the ongoing dispute over the pipeline project that has the federal and Alberta governments supporting the pipeline expansion project, while B.C. opposes it, saying it is defending its coast from a potentially catastrophic spill.
The federal government approved the 1,700-kilometre pipeline expansion project starting near Edmonton and ending in Burnaby, B.C., in November 2016, saying the pipeline is in the national interest. Alberta said the $7.4-billion pipeline to the West Coast gives the province access to overseas markets.
But the B.C. government says the expansion and seven-fold increase in oil tanker traffic in coastal waters poses environmental and economic risks that are too great.
Kinder Morgan announced earlier this month it is pulling back on spending for the project and gave Prime Minister Justin Trudeau’s government until May 31 to give a clear signal the project will proceed.
Trudeau, Notley and B.C. Premier John Horgan met Sunday in Ottawa to discuss the pipeline, but emerged from the meeting deadlocked.
Indigenous leaders, who were not invited to the meeting in Ottawa, joined together with representatives of the cities of Vancouver and Burnaby on Monday to redouble their opposition to the pipeline.
Stewart Phillip, the grand chief of the Union of B.C. Indian Chiefs, said opposition is broad-based and entrenched.
“It’s a stinker of an idea. It’s a stinker of a proposal and it will be defeated,” he said.
Phillip said resistance to Trans Mountain isn’t just from Indigenous Peoples, but people of all backgrounds from across Canada.
So far, about 200 people have been arrested at protests near the pipeline terminal site in Burnaby.
Burnaby Mayor Derek Corrigan said he expected civil disobedience against the pipeline to continue to grow.
He said he’s embarrassed Canada’s prime minister and the Alberta premier are kowtowing to an American multinational oil company.
“I think if people totally lose faith in our democratic system, if they believe that the federal government has been able to impose its will, that they’ve ignored the court proceedings, then I think we’re looking for chaos,” said Corrigan.