B.C., Alberta clash as Kinder Morgan suspends Trans Mountain work

Alberta Premier Rachel Notley promises “serious economic consequences” for B.C.

Kinder Morgan announced Sunday afternoon that it will stop all non-essential work and any related spending on the Trans Mountain pipeline expansion between Edmonton and Burnaby.

The controversial project would twin an existing oil pipeline that extends from central Alberta to the west coast.

READ: Trudeau says Trans Mountain pipeline will go through

“A company cannot resolve differences between governments. While we have succeeded in all legal challenges to date, a company cannot litigate its way to an in-service pipeline amidst jurisdictional differences between governments,” said KML chairman and CEO Steve Kean in a statement.

The company said it would speak with stakeholders before making a decision by May 31, “rather than risking billions of dollars on an outcome that is outside of our control.”

This move comes after Kinder Morgan had already slowed down work on the pipeline expansion, as it focused on advancing the permitting process rather than pushing ahead at full speed during the first half of 2018.

“We appreciate the support shown by the federal government and the provinces of Alberta and Saskatchewan, and are grateful for the strong endorsements among the majority of communities along the route and 43 Indigenous communities, as well as customers, contractors and unions,” Kean continued.

“The fact remains that a substantial portion of the project must be constructed through British Columbia, and since the change in government in June 2017, that government has been clear and public in its intention to use ‘every tool in the toolbox’ to stop the project. The uncertainty created by BC has not been resolved but instead has escalated into an inter-governmental dispute.”

Despite the news, Alberta Premier Rachel Notley said she was “very optimistic” that the pipeline would be built.

“Albertans have been clear, get this pipeline built and Albertans are right, this pipeline must be built,” Notley told the media Sunday.

She threatened to bring forth legislation that would heat up the trade war between the two provinces.

“If Premier Horgan believes he can harass this project without serious economic consequences for British Columbia, then he is wrong,” Notley said.

“If I was a resident of British Columbia I would be very worried about the investment climate of B.C.”

Speaking at a press conference an hour later, Premier John Horgan said he wasn’t worried in the slightest.

“We are open for business and we are a great place to invest,” Horgan said. “I have no intention of escalating controversy across the country.

“I have every expectation that people will respect British Columbia’s right to defend our interest and defend our coast, and that’s what I will do,” he affirmed.

Although Horgan and Notley haven’t spoken since Kinder Morgan’s announcement today, Horgan said that he has spoken with Prime Minister Justin Trudeau.

While the two disagree on the pipeline, Horgan said “there were no threats, there was no intimidation” from Trudeau, despite a longstanding federal belief that the project is in the national interest of the country.

The Trans Mountain project has been the source of months of tension between the two provinces. Notley instituted, and then reneged from, a ban on B.C. wine, and suspended talks to purchase electricity from B.C., with Horgan vowing to fight the pipeline in court.

“The Government of Alberta can do and should do whatever it thinks is necessary,” said Horgan.

When asked how B.C. can justify pushing back against a federally-approved project, Horgan said he believed protecting B.C. was fully within the province’s jurisdiction.

There was “no constitutional crisis” when Energy East was cancelled, Horgan pointed out.

READ: B.C. ‘very disappointed’ by court decision to not hear Trans Mountain appeal

If Kinder Morgan’s investors are scared off by the interprovincial dispute, Notley said that Alberta wouldn’t be.

“Alberta is prepared to be an investor in the pipeline,” she added, declining to say what that would mean financially for her province.

Notley lauded the federal government for its pro-pipeline stance but said that Ottawa needs to do more to push the project through.

“Federal approval of a project must be worth more than the paper it is written on,” she said.

The work stoppage on the pipeline expansion comes just days after Prime Minister Justin Trudeau visited B.C. to reiterate Canada’s commitment to the project, despite ongoing opposition from protesters and the B.C. government.

READ: Protesters gather ahead of Trudeau visit to Victoria

Kinder Morgan said it has spent $1.1 billion to develop the project since its initial filing with the National Energy Board in 2013. Concern over the provincial government’s participation in an ongoing judicial review and its assertion of broad jurisdiction have created growing uncertainty to the regulatory landscape.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Slocan Valley to be ‘lit up’ with high-speed internet in 12 months

125 kilometres of fibre-optic cable to be laid from Nakusp to Playmore Junction

Vigil re-affirms belief in peace, acceptance in wake of New Zealand massacre

Nearly 100 show up for solemn event at Mir Centre for Peace

Police bust drug operation in Castlegar

Man charged, will go to court in August

Zoning mix-up nixes Shoreacres property sale

Man says the RDCK’s listings online don’t match his property’s official zoning

Castlegar coach receives Basketball BC honour

Cheryl Closkey recognized for 50 years of volunteering

B.C. researcher says device mimics parent’s touch to help babies cope with pain

Calmer device is a rectangular platform that replaces a mattress inside an incubator

Tofino’s housing crisis causing some to seek shelter at the local hospital

Tofino’s housing crisis is pushing the town’s ‘hidden homeless’ population into the forefront.

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

2 fires in Victoria caused by cigarettes prompts warning from deputy fire chief

Two separate fires caused by cigarette butts were avoidable

‘Families torn apart:’ Truck driver in fatal Broncos crash gets 8-year sentence

Judge Inez Cardinal told court in Melfort, Sask., that Sidhu’s remorse and guilty plea were mitigating factors

Boy who went missing from park remains largest probe in Victoria police history

The four-year old Victoria boy went missing without a trace on March 24, 1991

WestJet sticking with Boeing 737 Max once planes certified to fly

WestJet had expected to add two more of the planes this year to increase its fleet to 13

B.C. driver caught going 207 km/h on motorcycle along Okanagan Highway

A motorcyclist was caught by Kelowna RCMP going 207 km/h on Highway 97C

Protective human chain forms around B.C. mosque for Friday prayer

Vancouver Islanders stand arm-in-arm to show support in aftermath of New Zealand shootings

Most Read