Trans Mountain dispute: BC threatens to sue Alberta

Alberta introduces law to restrict flow of oil, gas amid pipeline dispute with BC

UPDATE 1-Alberta readies to cut BC fuel shipments in Canada pipeline row

The legislation does not mention B.C., but Alberta Premier Rachel Notley says it could be used to put pressure on the province if the B.C. government doesn't change its stance on the Trans Mountain pipeline expansion.

Of particular focus will be the Trans Mountain Pipeline that has a current capacity of 300,000 b/d, and runs from Edmonton, Alberta to Burnaby, British Columbia.

On Monday, her government introduced Bill 12, the Preserving Canada's Economic Prosperity Act, that if passed would enable Alberta's energy minister to require companies to get permits to ship oil and refined products such as gasoline and diesel - as the government determines necessary - when previously firms did not ever have to get permission. Trudeau repeated the federal government's commitment to ensuring the project's completion and announced his government was preparing to hold private, financial talks with Kinder Morgan.

"Any disruption in that supply would have a fundamental and rather damaging impact on both prices and availability of supply in all of BC", he says.

Also it was not immediately clear if the export restrictions, if imposed, would include U.S. refineries in Washington.

He said he expects the province will use a "deft hand" to try to minimize the collateral damage to the local energy industry.

Phillip said resistance to Trans Mountain isn't just from Indigenous Peoples, but people of all backgrounds from across Canada.

Oil producers and the Alberta government are desperate for the pipeline to go ahead, as rising production has outstripped existing pipeline capacity, leading to a widening of the normal differential between Western Canadian oil prices and the USA benchmark.

First Nations and municipal leaders restated their opposition to the Kinder Morgan Trans Mountain pipeline expansion project in no uncertain terms Monday in Vancouver. The federal government has cleared the project, but British Columbia is opposing the expansion for environmental reasons.

The Alberta Premier said Section 92 of Canada's constitution allows the province to have control of exports and imports.

The license would be issued by the minister of energy if it is determined to be in the public interest, including whether adequate pipeline capacity exists to maximize the return on these resources produced in Alberta, it said.

The law is broad enough that the minister can choose whether to cut off all outgoing petroleum products or single out specific pipelines or companies by issuing a requirement for those sending oil or gas or diesel to apply for a licence, which the minister could then deny. Violators would face fines of up to $1 million a day for individuals and $10 million a day for corporations.

Of the total 300,000 b/d of capacity on Trans Mountain, 221,000 b/d is allocated to refineries with connections in British Columbia and Washington State and the remaining 79,000 b/d is allocated for the Westridge terminal for exports, the Canadian Association of Petroleum Producers said in it latest annual report.

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