Published: Tue, June 05, 2018
Science | By Joan Schultz

Pipeline protesters are getting clever with the Trans Mountain court injunction

Pipeline protesters are getting clever with the Trans Mountain court injunction

Environmental groups and indigenous communities have long fought against any expansion of the pipeline, which they say contradicts the country's climate commitments. Canada has the world's third largest oil reserves but 99 percent of its exports now go to refiners in the USA, where limits on pipeline and refinery capacity mean Canadian oil sells at a discount. Canada became less competitive this week, and Canadians paid for it.

British Columbia Premier John Horgan, whose New Democratic Party picked up seats in the province's legislature previous year on a platform that opposed Trans Mountain and formed a coalition with the anti-fossil fuel Green Party, this week promised to continue fighting the project in court.

Alberta Premier Rachel Notley also spoke with Trudeau on Tuesday, confirming her support for the pipeline expansion.

In a desperate bid to keep its last remaining proposed oil pipeline alive, Canada has made a decision to buy Kinder Morgan's Trans Mountain Pipeline system for an estimated C$4.5 billion ($3.5 billion).

Their opposition became more hard this week after a controversial move from the federal government.

A group of people protested the Trans Mountain pipeline expansion project in Whistler on Saturday, June 2, 2018.

However, no other sections of the project have met conditions to proceed, said the NEB. And as for who will manage the pipeline project while it's under government ownership, Canada's Finance Minister Bill Morneau said he hopes to hire people from...

"It does not matter who owns the pipeline", said Horgan.

Kinder Morgan Canada (TSE:KML) had its price target decreased by Royal Bank of Canada from C$24.00 to C$18.00 in a research report released on Wednesday.

Without government assurances that the pipeline project could proceed in full accordance with the law and duly secured permits and approvals, the company was going to shut construction down.

The project will be worthwhile for the federal and Alberta governments even if it sells for less than it costs because it will improve access by oil producers to world markets, ensuring better prices that will translate into billions of dollars in corporate income taxes and oil royalties, he said. It didn't specify how it would spend the proceeds of the sale but did say it plans to continue to invest in Canada.

But it remains to be seen if the federal government can bulldoze British Columbia into allowing the project to move forward.

Kinder Morgan Canada gave Ottawa until May 31 to come up with reassurances it could press ahead with plans to more than double the capacity of the existing pipeline amid efforts by British Columbia to block construction. The City has 30 days to appeal the ruling.

Now, Justin Trudeau has chose to use taxpayer money to buy the entire pipeline. Some First Nations have legal challenges on consultation at the Federal Court of Appeal.

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