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Alberta govt accepts olive branch as BC seeks reference case on rights over oil exports

23rd February 2018

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – The political impasse over the much-needed expansion of crude oil export capacity from Alberta through Canada's West Coast seems to have been temporarily resolved.

Alberta, which is host to the bulk of Canada's significant oil reserves, on Thursday said it would suspend a ban on the sale of British Columbia wines after its western neighbour announced that it would defer to the courts to affirm whether it has a right to protect its coast from increased oil shipments.

"British Columbia is stepping back from the brink and abiding by the law," Alberta premier Rachel Notley said on Thursday.

Her comments followed an announcement by British Columbia that, despite its belief that it is the province's right to take measures to protect its coast from increased oil shipments, it is now "prepared to confirm the right in the courts".

British Columbia in January took the unprecedented step to cap the amount of diluted bitumen that can be transported by pipeline or rail until the province has completed further studies to better understand the ability to mitigate spills. The announcement was a kick in the teeth for Kinder Morgan, which previously received the green light to proceed with construction of the Trans Mountain Expansion project from the federal and previous Liberal British Columbia government.

British Columbia premier John Horgan on Thursday said it would retain legal counsel to ready a reference to the courts, adding that it may take several weeks to bring the reference forward. This reference will seek to reinforce the province's constitutional rights to defend against the risks of a bitumen spill.

He added that this safeguard has generated "disproportionate" and "unlawful" reactions from the Alberta government, specifically their decision to ban the import of wines from British Columbia. "It’s not about politics. It’s not about trade. It’s about British Columbians’ right to have their voices heard on this critical issue."

Ironically, Horgan stated that "the Alberta government threatens an entire industry and the livelihoods of people who depend on it".

However, Notley will have none of it. Earlier this month, she established a task force to respond to what she termed "British Columbia's unconstitutional attack on the Trans Mountain Pipeline and the jobs that go with it".

Notley said Ottawa needs to step up and assert its authority to build approved intra-provincial economic infrastructure such as Trans Mountain.

"If it becomes clear that this action is part of a deliberate strategy to harass the pipeline and its investors with frivolous or unconstitutional legal challenges, we will act immediately. I am confident the Constitution will be upheld and we will have seen the last of these ridiculous threats," she said on Thursday.

Horgan added that consultations will start soon on the remaining four safeguards announced in January by Environment and Climate Change Minister George Heyman. These safeguards include spill response time; geographic response plans; compensation for loss of public and cultural use of land; and the application of regulations to marine spills.

Edited by Creamer Media Reporter

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