Alberta government passes legislation to cut off oil shipments to B.C.

The interprovincial battle between Alberta and British Columbia over Kinder Morgan heated up on Thursday as Alberta passed legislation that would allow the province to restrict the export of crude oil, natural gas, and refined fuels.

Bill 12, or the “Preserving Canada’s Economic Prosperity Act,” gives the provincial government authority to require companies to obtain a licence before exporting energy products from Alberta via pipeline, rail, or truck.

The bill will still need to receive Royal Assent before it can become law.

On Wednesday, B.C. Attorney General David Eby said the bill was unconstitutional, and threatened legal action if Alberta took advantage of the bill’s powers.

“I would urge your government to commit not to proclaim Bill 12 into force until it has referred it to the Alberta courts to assess its constitutionality,” Eby said in a letter to Alberta Justice Minister Kathleen Ganley.

Federal and Alberta governments put pressure on B.C.

Bill 12’s passing comes after a tough couple of weeks for B.C. Premier John Horgan, who has faced ongoing pressure from federal and provincial politicians alike over his government’s stance on the Kinder Morgan pipeline.

On Friday, May 11, Calgary mayor Naheed Nenshi said Horgan is “one of the worst politicians that we have seen in Canada in decades.”

And on Wednesday, Finance Minister Bill Morneau said that the federal government would be willing to compensate pipeline backer’s financial losses that come as a result of B.C’s opposition to the pipeline’s construction.

“The indemnification would allow Kinder Morgan to finish what they started, what they received federal and B.C. approval to do,” he said.

In response, Horgan accused the finance minister of using the B.C. government as an excuse while the federal government puts taxpayer money on the line to prop up a doomed project.

“The fact is, we’ve been issuing permits in a fair and timely manner, and have proposed new regulations that are now referred to court to confirm our jurisdiction,” he said.

“We are acting well within B.C.’s rights to defend our environment, and the tens of thousands of jobs and billions of dollars of economic activity that depend on it.”

Kinder Morgan has threatened to abandon the project if a final decision on how to proceed isn’t made by May 31.

On Monday, May 21, Alberta Premier Rachel Notley tweeted that she would not be attending the Western Premiers’ Conference this week, saying it would be “tone deaf” to discuss cannabis and pharmacare while B.C. continues to oppose the pipeline.