British Columbia Sues Alberta In Escalating Canada Pipeline Row

Canada's westernmost province sued its neighbour on Tuesday to try to stop it from turning off oil and gas taps in an escalating row over a proposed pipeline expansion.

Ottawa, (APP - UrduPoint / Pakistan Point News - 23rd May, 2018 ) :Canada's westernmost province sued its neighbour on Tuesday to try to stop it from turning off oil and gas taps in an escalating row over a proposed pipeline expansion.

British Columbia filed a statement of claim in Alberta's Court of Queen's Bench seeking an injunction and damages should the latter move to throttle energy shipments. At the same time, Alberta Premier Rachel Notley bowed out of a meeting of regional leaders in protest.

The two provinces have been at loggerheads for months over the proposed twinning of the Trans Mountain pipeline to move 890,000 barrels of oil per day from landlocked Alberta's oil sands to the Pacific coast, for shipping to new overseas markets.

Prime Minister Justin Trudeau's government approved the Can$7.4 billion (US$5.9 billion) project in 2016, saying it is "in the national interest" as it would allow Canada to diversify its oil exports -- 99 percent of which now go to the United States.

But British Columbia's new social democratic government recently joined environmental activists' fight against the project, provoking an Alberta boycott of its wines and threats to devastate the British Columbia economy by curbing Alberta oil and gas supplies to British Columbia.

The feud reached a boiling point last month when Kinder Morgan suspended most work on the pipeline amid the intense political uncertainty, and said it would drop the project if the parties fail to resolve their differences by May 31.

Finance Minister Bill Morneau has met with Kinder Morgan executives and pledged last week to compensate the pipeline builder for any losses that may result from political delays. He declined, however, to provide details of his proposal and Kinder Morgan has not said if it is sufficient to allay investor fears.

In court documents, British Columbia said Alberta's threat to throttle gasoline, diesel and crude oil shipments would cause "irreparable harm" to its economy and "could injure human health and safety in remote communities." Notley, meanwhile, highlighted at a press conference the irony of British Columbia's position, saying: "On one hand they don't want our oil.

And on the other hand (BC) is suing us to give them our oil."