The pump jack will function on October 29, 2016 at the wellhead of an oil and gas facility near Cremona, Arta. (Jeff McIntosh / The Canadian Press)
Odawa — The Federal Court of Appeals has ruled that Alberta has the right to control the amount and destination of oil and other fuels in the pipeline.
This decision is a state victory in the battle with British Columbia over the so-called tap-off law enacted by Alberta in 2018, in the midst of a controversy between the two states over the construction of the Trans Mountain Pipeline.
The three judges overturned the previous injunction that prevented Alberta from using the law and agreed that BC should pay the costs of a long proceeding, but the judges conclude the same. It depends on various reasons to reach.
The BC initially appealed for the constitutionality of Canada’s economic prosperity law, arguing that Alberta has no discriminatory power by restricting oil exports to other states.
BC’s actions are “premature” because the Constitution gives the state the right to own and develop natural resources and the ruling has not yet imposed export restrictions.
The 1,150-kilometer Trans Mountain expansion will triple the amount of oil flowing from the Edmonton region to Lower Mainland, British Columbia, and from there to overseas markets.