Alberta says BC will lose court challenges to oil control legislation

New law would allow Alberta to restrict flow of oil and gas

Kinder Morgan is currenly working on a pipeline between Alberta and British Columbia.

The B.C. government's opposition to the pipeline expansion is preventing that from happening, and it is costing Saskatchewan an estimated $2.6 billion each year - largely because the province sells its energy products to one foreign market, the United States.

Canada's inter-provincial fight over Kinder Morgan's Trans Mountain pipeline escalated as oil-producing Alberta threatened to cut off fuel shipments to neighboring British Columbia. Breaching the licence requirements would bring a fine of $10 million a day.

Eby said the B.C. government is expecting to announce shortly that it has filed a reference case to the courts to determine if it has jurisdiction over the pipeline in the province.

He said it's an unusual and unfortunate situation that began with B.C. interfering in a federally approved interprovincial pipeline.

Premier Scott Moe says Saskatchewan will join Alberta in a fight with B.C. over the Trans Mountain pipeline expansion by introducing its own legislation on oil exports.

In a statement to Daily Hive, Eby called the new Alberta bill "unconstitutional and unlawful".

Currently, Alberta ships 44,000 barrels of gasoline and diesel to B.C. through the Trans Mountain pipeline every day, a little more than half of the total 80,000 bpd of refined products shipped to B.C. A minister can make whatever finding is needed to curtail movement of refined products, or shuffle shipments between rail and pipeline, or do whatever is necessary to get the B.C. pump-price indicators spinning like slot machines.

Heyman said the government would consider court action if the legislation were to cause gasoline prices in B.C.to spike.

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"The powers in this legislation are not powers Alberta wants to use, but we will do so if it means long-term benefit for the industry, for Alberta and for Canada", said McCuaig-Boyd.

Kinder Morgan, the USA -based pipeline builder, announced earlier this month that it was pulling back on spending for the project and gave Prime Minister Justin Trudeau's government until May 31 to give a clear signal the project will proceed.

Alberta United Conservative Party Leader Jason Kenney said he's glad the government appears to have followed the party's suggestion to "turn off the taps", to demonstrate real economic consequences.

"Any action that restricts the supply of oil to British Columbia would be negative for the economies of both B.C. and Alberta", Cuerrier said in an email.

The premier said the federal government is imposing the carbon tax on Saskatchewan when it doesn't have jurisdiction but is not doing enough to get the Trans Mountain pipeline built even though it's a federal responsibility.

Kinder Morgan halted work on the project a week ago and set a May 31 deadline for a resolution to B.C.'s opposition, which includes a court challenge and regulatory hurdles that the province has erected.

"Trudeau and Notley continue to brazenly and arrogantly ignore First Nations rights, an oversight that will limit any ability to address risk and uncertainty for this ill-conceived project", he said.

The result was a new agreement with Prime Minister Pierre Trudeau that allowed Alberta to retain ownership of its resources along with a more amenable pricing schedule.

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