The political battle over the Trans Mountain oil pipeline in western Canada has grown uglier with the announcement that the Province of Alberta is pulling out of Prime Minister Justin Trudeau's national climate change plan until construction of the pipeline expansion resumes.
Alberta Premier Rachel Notley made the announcement late Thursday after the Federal Court of Appeal quashed approvals for the Trans Mountain pipeline expansion project – effectively halting construction that was underway.
"As important as climate action is to our province's future I have also always said that taking the next step, in signing on to the federal climate plan, can't happen without the Trans Mountain pipeline," Premier Notley said during a live television address Thursday evening. "So today I am announcing that with the Trans Mountain halted, and the work on it halted, until the federal government gets its act together; Alberta is pulling out of the federal climate plan."
Premier Notley then added, "And let's be clear, without Alberta that plan isn't worth the paper it's written on," referring to the fact that oil rich Alberta produces more greenhouse gas emissions than any other jurisdiction of Canada.
The Alberta premier said she was angered by the court decision that essentially suspends construction of the pipeline indefinitely, saying the ruling is bad for working families and the economic security of Canada.
The ruling is seen as a victory for Indigenous groups and environmentalists opposed to the $7.4-billion pipeline expansion project that has been controversial from the start. In its decision, written by Justice Eleanor Dawson, the appellate court found that the National Energy Board's assessment of the project was so flawed that it should not have been relied on by the federal cabinet when it gave final approval to proceed in November 2016.
The certificate approving construction and operation of the project has been nullified, leaving it in legal limbo until the energy regulator and the government reassess their approvals to satisfy the court's demands. In effect, the court has indefinitely halted construction of the 1,150-kilometre project that runs from Alberta’s oil fields to the Pacific coast of British Columbia.
Amid uncertainty, Kinder Morgan (TSX: KML) agreed to sell the existing pipeline and the expansion project to the federal government this spring. The company's shareholders overwhelmingly approved the sale Thursday morning in Calgary in a previously scheduled vote held just after the court's decision was released. Now, the Liberal government is the owner of a proposed pipeline project that could be subject to years of further review.
Nevertheless, Prime Minister Trudeau said on Twitter Thursday night that he had spoken with Premier Notley and assured her that his government would continue to back the project.
