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

DFO wants sports fishers to halve daily catch limits for prawns

Sport Fishing Advisory Committee resisting changes to prawn and clam catch management on North Coast

Terrace death not considered suspicious at this time: RCMP

Body of 49-year-old man was found in wooded area near Olson Ave. March 22

Northwest mobile unit to help those at heart of mental health, addiction crisis

Province, Northern Health unveils new unit in Terrace to bridge gaps in services

Move natural gas pipeline, MP suggests

Coastal GasLink could then avoid opposition

VIDEO: RCMP reveal five kids hit in deadly B.C. crash

The children range in age from six to 17.

Study: Why Canadian police should have a dedicated animal cruelty unit

People view fighting animal cruelty as a public responsibility

Convicted pedophile from B.C. raises fears after move to Ontario

Police have issued a warning about Madilyn Harks in Brampton

Mystery plane wakes up B.C. residents

An aircraft circled Langley City over the weekend after midnight for about an hour

Yellow snake spotted slithering in Greater Victoria neighbourhood

Police describe it as ‘large, pale [and] yellow’ suggesting the snake may be exotic

Stranger climbs onto B.C. family’s second-floor balcony, lights fire in barbecue

Incident in Abbotsford terrifies family with two-year-old boy

British Columbians are paying more for booze but also broccoli

Victoria’s inflation was 2.3 per cent, a tick above Vancouver’s of 2.2 per cent

UPDATED: IHIT investigating fatal crash in Surrey

Three people dead, investigators expected to be at scene ‘for significant amount of time’

Eviction halted for B.C. woman deemed ‘too young’ for seniors’ home

Zoe Nagler, 46, had been given notice after living in the seniors complex in Comox for six years

Most Read