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

UPDATED: Pedestrian fatally hit on railway in Agassiz

Police, fire and ambulance responded

Fraser River at Chilliwack may have peaked but freshet isn’t over

Forecast free of rain is good news as river should remain high but not get higher

Big brew tanks headed for Chilliwack will look like beer cans

Snap a #beertanks selfie if you spot one of the massive tanks en route to Chilliwack

VIDEO: Chilliwack RCMP descend on home where camper fire happened Sunday

Three days after blaze in driveway, heavy police presence and at least one arrested

Fraser Valley Cantabile Choir wins first in ‘Sing Me a Song’ contests under 18 category

The group will be visited by B.C.’s Lieutenant Governor, who will present them with their award

Police release video on how to ‘run, hide, fight’ if there’s an active shooter

Vancouver police offer video with input from E-Comm, BC EHS, Vancouver Fire and Rescue

Two-year-old found unresponsive in pool

Mission RCMP located toddler after she went missing from a local daycare

Toronto opening 800 emergency spaces to deal with influx of refugee claimants

Beginning Thursday, Toronto will temporarily house refugee claimants and new arrivals in 400 beds in the city’s east end.

Breaking: Trump cancels summit with North Korea

Trump cancels June 12 summit with North Korea’s Kim, citing ‘tremendous anger and open hostility’ in recent statement

Rivers rising: Floods in B.C., New Brunswick a warning of what’s to come

In B.C., thousands of residents are returning to homes this week marked with red or yellow signs indicating a health inspection is necessary

North Korea demolishes nuke test site with series of blasts

North Korea has carried out what it says is the demolition of its nuclear test site in the presence of foreign journalists.

Wildfire sparks near perimeter of devastating 2017 Elephant Hill fire

Ground crews and aircraft are responding to an estimated 50 hectare wildfire approximately 55 kilometers northwest of Kamloops, near the Deadman Vidette Road.

Study recommends jurors receive more financial and psychological support

Federal justice committee calls for 11 policy changes to mitigate juror stress

Surrey RCMP issue warning after third sexual assault since Sunday

It is the third sexual assault reported this week in Surrey

Most Read