Builder of Kinder Morgan reinforces concerns over project

British Columbia has announced it will head to court by month end to clarify the province鈥檚 jurisdiction over the Trans Mountain pipeline expansion project.

Also Wednesday, the CEO of the pipeline鈥檚 builder, Kinder Morgan said the events of recent days have reinforced his concerns about the viability of the $7.4-billion project.

Steve Kean said during an earnings report that the company suspended work on non-essential activities earlier this month because the investment may be 鈥渦ntenable for a private party to undertake,鈥� and recent days have 鈥渃onfirmed鈥� those views.

The construction project has been the subject of growing friction, with Prime Minister Justin Trudeau summoning the premiers of Alberta and B.C. to Ottawa for talks and Alberta introducing legislation designed to restrict fuel shipments to B.C.

Kinder Morgan set a May 31 deadline to determine if the expansion will go ahead, prompting Trudeau鈥檚 Liberals to start private, financial talks with the U.S.-based company.

Premier John Horgan said his New Democrat government鈥檚 reference case will be filed in B.C.鈥檚 Court of Appeal by April 30 and it will seek to clarify the province鈥檚 rights to protect its coast and economy from an oil products spill.

He said the reference case could have implications in provincial-federal relations that go beyond the current dispute.

鈥淲e believe we have jurisdiction to protect the interests of British Columbians,鈥� Horgan said at a news conference to announce government housing development initiatives.

鈥淥ur neighbouring province disagrees with that, the federal government disagrees with that,鈥� he said. 鈥淚n my conversations with the prime minister over the weekend he said, 鈥榃hy can鈥檛 we work this out now? 鈥� I said, 鈥楾hat鈥檚 fine, you and I can work this out but what about the next government in Ottawa or the next government in Victoria and on and on and on?鈥� 鈥�

Horgan also raised concerns about Indigenous rights over the project. More than 30 First Nations along the pipeline route have agreements with the company, but others are in opposition.

鈥淚 just reject the notion that this is a majority-rule situation,鈥� he said. 鈥淭hese are rights and title holders and those rights and title holders have to be acknowledged and have to be respected.鈥�

Jim Carr, federal Natural Resources Minister, said the government in Ottawa is looking to introduce legislation to reassert Canada鈥檚 constitutional authority to build and expand pipelines.

The federal government has repeatedly rejected B.C.鈥檚 invitations to join the reference case, saying it already has authority over pipelines.

B.C. Environment Minister George Heyman said Wednesday the province believes it has the right to protect its environment and economy from an oil products spill.

鈥淭he process is about B.C.鈥檚 right under the Constitution to regulate against the deleterious impacts on the environment, on the economy, on provincial interests of a project, whether it鈥檚 an interprovincial project or a provincial project.鈥�

Attorney General David Eby said the province will take its case to the B.C. Court of Appeal, the highest court that it is able to refer such questions under the province鈥檚 Constitutional Question Act.

The details of the action and the question or questions the government will ask the court to determine are still being worked out by lawyers and must be approved by the New Democrat government鈥檚 cabinet, he said.

Eby said the province is aware of the time factors involved and is hopeful of a speedy ruling.

鈥淓verybody wants clarity around this so we鈥檒l be moving and we are moving as quickly as we can,鈥� he said.

Alberta鈥檚 government said B.C.鈥檚 legal move is just another pipeline roadblock.

Alberta Energy Minister Marg McCuaig-Boyd said the law around the issue has already been settled and that it鈥檚 clear the federal government has the final say on interprovincial pipelines.

鈥淭hey (the B.C. government) continue to play political games,鈥� she said.

鈥淭hey continue to try to frustrate investors (and) erode investor confidence, but what I can say is we are prepared to pull the rug out from under them.鈥�

She said the rug allusion refers to ongoing talks with Alberta and the federal government to buy into the pipeline project to ensure it gets completed.

Saskatchewan Premier Scott Moe said his province is preparing to introduce oil restriction legislation similar to Alberta鈥檚, which is likely to send fuel prices in B.C. sky high.

The Canadian Press

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