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The B.C. government has filed a lawsuit and is preparing to seek an injunction warning that Alberta’s legislation designed to choke off the domestic supply of fuel to British Columbia could cause irreparable harm – particularly to small Indigenous communities that rely on diesel-powered generators for electricity.

In court documents filed in Alberta’s Court of Queen’s Bench, lawyers for B.C. argue that Alberta’s Bill 12, passed last week, is expressly designed to punish British Columbia for its opposition to the Trans Mountain pipeline project – a form of discrimination that it says is prohibited by the Constitution.

Alberta Premier Rachel Notley responded to the court case by saying she is not prepared to let B.C. have it both ways: “On one hand they don’t want our oil, and on the other hand they are suing us to give them our oil,” she said.

Ms. Notley said her government is finalizing regulations for Bill 12 so her government can turn off the tap on B.C.’s access to Alberta oil and gas. “As we put the final touches on our regulations, we now have a line of sight on their arguments and that’s helpful.”

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Alberta Premier Rachel Notley unveils an advertisement about the Trans Mountain pipeline.JASON FRANSON/The Canadian Press

The court documents filed Tuesday underscore the difficult balance the B.C. government is seeking: to restrict increased transport of heavy oil bound for export markets, while protecting its domestic supply of oil and gas from Alberta.

“A significant disruption in the supply of gasoline, diesel and crude oil from Alberta to British Columbia would cause British Columbia irreparable harm. In addition to economic harm, a sudden disruption in supply could injure human health and safety in remote communities,” the lawsuit states.

Alberta’s new law, called Preserving Canada’s Economic Prosperity Act, was drafted in response to a decision taken by the B.C. government. The province had sought the authority to pass regulations that would allow it to limit any increase of oil shipments across B.C. above current levels. The restrictions are proposed as a temporary measure while an independent scientific advisory panel determines how – or whether – heavy oil spills in the marine environment can be cleaned up.

The BC NDP vowed in the 2017 provincial election to stop the Kinder Morgan pipeline project. Since forming government, however, it has been forced to water down that commitment based on internal legal advice. It is currently in court defending the B.C. environmental certificate granted by the former B.C. Liberal government. As well, it is approving permits for the project at the same rate as the previous government, with an office staffed by six bureaucrats who are working full-time to handle the 1,186 provincial permits that are required for the project.

Ms. Notley said B.C. is nevertheless delaying the project because it is creating legal uncertainty, which is spooking Kinder Morgan’s investors.

She pointed to Kinder Morgan’s April 8 announcement that it is suspending non-essential work on the pipeline and will cancel the project if the B.C. government continues to fight it in the courts.

The Alberta Premier likened the strategy to a boxer who hangs back, seeking to wear out their opponent: “They are still reserving the right to play legal rope-a-dope until the cows come home,” she told reporters.

B.C. Attorney-General David Eby, speaking to reporters in an earlier news conference on Tuesday, insisted B.C. has done nothing to delay the project.

“There has been a mischaracterization of B.C.’s role here,” he said. He said the B.C. reference case is not a threat to Kinder Morgan’s project. “We are seeking to ensure that we have adequate environmental protection to prevent a spill in the event there is an expansion in the shipment of heavy oil, and also if there is a spill, to clean it up,” he said. “It is not to stop the pipeline.”

With files from The Canadian Press

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