BC’s AG outlines his plan for the upcoming Kinder Morgan court battle

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VICTORIA (NEWS 1130) – The BC government says it’s only submitting its legal challenge to the courts now because it had to decide on a strategy as its pipeline battle with Alberta heats up.

BC’s Attorney General will be going to the highest court in the province by the end of the month to ask which level of government has final say on what kind of product moves through pipelines like the Trans Mountain expansion.

David Eby says it’s not just about formulating a simple question, he says they wanted to build up their case first which includes evidence.

“We want the court to recognize our jurisdiction to protect BC’s coastal economy and protect our coast from the impact of a catastrophic bitumen spill.”

Eby admits the province had planned to consult British Columbians and First Nations groups first but had to change gears after this past weekend’s meeting between the prime minister, Alberta Premier Rachel Notley and Premier John Horgan.

“This is moving remarkably quickly for a legal matter like this. We expect to actually have this filed by the end of the month, within the next eight working days,” adds Eby.

He stresses the province wanted to go to the Supreme Court of Canada but Ottawa did not want to take the route of a joint submission.

Kinder Morgan CEO says recent events confirm Trans Mountain may be ‘untenable’

The CEO of Kinder Morgan says events in recent days have reinforced his concerns about the viability of the Trans Mountain oil pipeline expansion project.

“It’s become clear this particular investment may be untenable for a private party to undertake. The events of the last 10 days have confirmed those views,” Steve Kean said on a conference call Wednesday.

“We’ve pointed out there are significant differences between governments, and those differences are outside of our ability to resolve.”

As Horgan’s government announced it will file a long-promised court reference, in Edmonton, Notley said her office was told by Kinder Morgan that Kean’s comments were directly tied to BC’s court reference announcement and that the company’s broad commitment to the project remains unchanged.

“The message we’re getting back is that [Kinder Morgan] are pleased with the high level of engagement that is happening between both us and the federal government,” said Notley.

Kinder Morgan, in a statement issued late Wednesday, echoed Notley’s comments, saying: “We are actively engaged with the federal and Alberta provincial governments and those conversations will continue in good faith. Nothing has changed in that regard.”

The company is caught in the middle of a political feud among Alberta, BC and the federal government over the $7.4 billion project, which would double the existing line from Alberta to Burnaby to get more oil to overseas markets and fetch a better price.

The project was approved by the federal government in 2016, but has since faced court challenges and permit delays in BC.

Kinder Morgan announced Apr. 8 it was scaling back construction, citing obstruction by BC that put the financial viability of the pipeline in question. It gave a deadline of May 31 for a clear signal the project can get built.

Notley, meanwhile, is facing criticism from political opponents for announcing last week that if necessary, Alberta will buy the whole project.

United Conservative Leader Jason Kenney said Notley has given away Alberta’s bargaining leverage with Kinder Morgan. “I’d love to play poker with Premier Notley based on how she’s mishandled this whole thing.”

Alberta Party house leader Greg Clark added, “The premier was saying things for the sake of a headline where the thing to do would have been to play the cards close to the vest. It’s very poor negotiations.”

Also this week, Notley has introduced legislation giving her government the power to intervene in the market to limit shipments of oil and natural gas, which could inflict financial hardship on BC by sending the price of gasoline soaring.
Saskatchewan Premier Scott Moe has said his government will bring in a similar law to stand by Alberta to get the pipeline built.

Kean confirmed on the call that discussions with Ottawa and Alberta have begun on the finances, but said he was not going to make any details public until a definite agreement has been reached or the discussions have ended.

He said the company also continues to meet with stakeholders ahead of the May 31 deadline, and is looking for a way forward for the project.

Kean said investment questions around the Trans Mountain pipeline shouldn’t be taken as a wider comment on investing in Canada.

“We have invested in Canada and British Columbia, as well as Alberta, and we expect to continue investing,” he said.

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