Alberta passes bill that could cut oil to B.C

Another blow in the Trans Mountain pipeline fight as Alberta passes bill that could cut oil to B.C

Alberta has passed landmark legislation giving it sweeping power to intervene in oil and gas exports that could result in punitive price spikes in British Columbia in the dispute over the Trans Mountain oil pipeline expansion.

Premier Rachel Notley won’t say when and how the power will be used, but said she won’t wait long.

“Alberta will be equipped with new tools to assert our rights to control the flow of our resources to British Columbia,” Notley said Wednesday prior to Bill 12 passing third and final reading.

“Albertans, British Columbians and all Canadians should understand that if the path forward for the pipeline through B.C. is not settled soon, I’m ready and prepared to turn off the taps.”

RELATED: Horgan says B.C. defending its interests in Trans Mountain pipeline

The bill would give Alberta the power to intervene in the energy market, to decide how much fuel is sent and by what means, be it by rail or pipeline.

B.C. Premier John Horgan called the Alberta law provocative.

“Instead of asking how can we work together on this, they took aggressive action,” he said in Chilliwack, B.C.

B.C. Attorney General David Eby, in a letter, said legislation designed to inflict harm on another province violates the constitution.

RELATED: Indigenous leaders pitch sustainability to Kinder Morgan shareholders

He urged Alberta Justice Minister Kathleen Ganley to first run the bill past the courts to confirm its legality.

“In the absence of such a commitment, I intend to instruct counsel to bring an action challenging its constitutional validity in the courts of Alberta,” said Eby.

“Bill 12 is a step back towards trying to resolve differences through threats of economic harm.”

Cutting oil flow to B.C. is expected to cause price spikes in gas at the pumps along with other related fuel fees.

But Notley said it’s justified legislation, given that Alberta is losing billions of dollars due to transportation bottlenecks and the fact that B.C. is frustrating the federally approved Trans Mountain project.

“With pipeline capacity stretched to the limit, Albertans have the right to choose how our energy is shipped,” said Notley.

“Alberta has the right to act in the public interest.”

The Trans Mountain expansion would triple the amount of oil flowing from Alberta to tankers on the B.C. coast.

Notley said Alberta oil sells at a discount because of tight pipeline capacity and because most of it goes to the United States. A better price could be fetched on overseas markets.

The $7.4-billion project was approved by Prime Minister Justin Trudeau’s government in 2016, but since then has been hamstrung by permit delays and court challenges in B.C.

Horgan has said his government remains concerned about the effects of spills on the inland waterways and coastline.

The pipeline owner, Texas-based Kinder Morgan, has scaled back spending on the line and has given Trudeau’s government until May 31 to show that there is a way to complete it.

The Alberta and federal governments have committed to backstopping the project with public dollars if that’s what it takes to make sure it’s completed.

Earlier Wednesday, federal Finance Minister Bill Morneau said those talks continue. He said if Kinder Morgan wants to abandon the expansion, there are plenty of other investors willing to step up.

Notley’s bill echoes similar legislation passed in Alberta a generation ago in the early 1980s in a dispute with Ottawa over oil ownership and pricing.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

BC local elections: CVRD Area G voters ask questions about water, community centre

Saltair voters gathered under the roof of the community centre, a building… Continue reading

Ladysmith Public Art strategy holding back alleys and forgotten corners walk

Thanks to those who attended our Public Arts 101 Talk at the… Continue reading

BC local elections: Ladysmith town council candidate Amanda Jacobson

Current occupation: I am a mortgage broker; I have been helping people… Continue reading

BC local elections: Ladysmith town council candidate Malcolm Sacht

Current occupation - Professional Mariner at Seaspan Marine. Background- I grew up… Continue reading

B.C. NDP retreats again on empty-home tax for urban areas

Rate reduced for all Canadians, dissident mayors to get annual meeting

Two B.C. cannabis dispensaries raided on legalization day

Port Alberni dispensaries ticketed for “unlawful sale” of cannabis

Earthquake early-warning sensors installed off coast of B.C.

The first-of-its kind warning sensors are developed by Ocean Networks Canada

B.C. woman looks to reduce stigma surrounding weed-smoking moms

Shannon Chiarenza, a Vancouver mom of two, started weedmama.ca to act as a guide for newcomers to legal cannabis, specifically mothers

Nanaimo RCMP warn public after nine-year-old girl approached by motorist

Incident happened Wednesday morning near Park Avenue School

B.C. teen gives away tickets to Ellen Degeneres show, plans O Canada welcome

The Grade 9 student wanted to give away tickets in the spirit of inclusivity

Canada’s top general takes aim at new reports of military sexual assault

Gen. Jonathan Vance is unhappy some troops continue to ignore his order to cease all sexual misconduct

Ignoring climate change poses potential catastrophe for B.C.

Fisheries scientist says ‘extraordinary challenges’ in water management lie ahead

Most Read