Alberta to restrict oil, gas to neighbor in Canada pipeline row

Cornelia Mascio
Aprile 17, 2018

But the powers in the new legislation go far beyond restricting oil flowing through the Trans Mountain system.

Under the bill - labeled as Canada's Economic Prosperity Act - companies exporting petroleum and natural gas from Alberta will be required to obtain a license, the provincial government said. She said Section 92 of the Constitution gives provinces power over their natural resources.

Companies that break the law would pay up to $10 million per day and individuals exporting without a licence would be hit with fines of up to $1 million per day. Ms. Notley acknowledges the legislation is likely to attract a legal challenge but the legislation will withstand objections.

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. Now the pipeline transports both crude oil and refined fuels.

Alberta and B.C. have been locked in a battle over the future of Kinder Morgan Canada's $7.4-billion plan to triple capacity of the Trans Mountain pipeline, which will carry 890,000 barrels of diluted bitumen per day from the Alberta oilsands to a shipping terminus in Burnaby upon completion. In December the line shipped an average 258,000 b/d of crude oil and diluted bitumen and almost 44,000 b/d of refined fuels, including gasoline and diesel, the Alberta government said.

The legislation and financial aid have the same aim "of making sure that one, that this pipeline will be built and two, that all of the investors involved know that we take this seriously and they can be confident it will go through", said a source close to the government.

The bill does not stipulate any location to which crude oil or refined products can not be exported through the pipeline, said Mike McKinnon, a spokesman at the energy ministry.

He said he expects the province will use a "deft hand" to try to minimize the collateral damage to the local energy industry. Kinder Morgan suspended all "non-essential" spending on Trans Mountain a week ago and set a May 31 deadline to keep the project alive.

Burnaby Mayor Derek Corrigan said he expected civil disobedience against the pipeline to continue to grow.

Both Notley and Prime Minister Justin Trudeau have announced they will provide Kinder Morgan with financial assurances to offset potential losses from B.C.'s continued opposition in a move that has stirred up controversy on both sides of the debate.

Trudeau, Notley and B.C. Premier John Horgan met Sunday in Ottawa to discuss the pipeline, but emerged from the meeting deadlocked.

"The larger issue is the crisis in confidence that investors can not rely on the rule of law in Canada for investment of their capital, especially if the government must resort to taking a financial position in the project to ensure it proceeds", Petroleum Services Association of Canada president Tom Whalen said in a release Monday.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE