The federal government’s involvement in the project was the critical factor for the improvement of opinions by British Columbians towards the project, according to Mario Canseco, the president of Vancouver-based polling firm Research Co. (ctvnews.ca).

Cross-border pipelines such as Enbridge’s Line 3 Replacement Project, originally estimated to be in service before the end of 2019, and TCP’s XL pipeline, approved in Canada in 2010, have also encountered significant opposition on the US side of the border and have been delayed due to legal challenges which remain unresolved. However, in 2018 the discount averaged US$27.09 (with a discount of US$50 per barrel on some trading days in October 2018) compared to an average differential of US$12.95 per barrel between 2015 and 2017.3 This widening differential prompted the government of Alberta, the major oil producing province in Canada, to mandate production curtailment from January 1 to December 31 2019. Thereafter, the NEB’s review encountered several delays, including a decision to restart the entire hearing process in January 2017 and then in August 2017, the NEB announced that, for the first time, it would consider upstream and downstream greenhouse gas emissions in its assessment of the project.

Bill C-6912 was introduced by the federal Liberal government in February 2018 and seeks to overhaul how major infrastructure projects, including interprovincial pipelines, are reviewed and approved in Canada. For permission to republish this or any other publication, contact Janelle Weed. In May 2016, the NEB recommended approval of TMX, subject to 157 conditions and in November 2016, the Liberal government approved TMX, subject to the same conditions.9 Thereafter, in 2017 the then Liberal government of BC, having secured an unprecedented revenue sharing agreement with worth up to C$1B, together with satisfaction of other conditions it had placed on its approval, announced its support for TMX.

On April 8 2018, Kinder Morgan Canada Ltd, having already spent approximately C$1.1B on TMX, announced that it was suspending all non-essential activities and related spending on TMX as a result of the uncertainty created by the BC government’s actions and stated that if agreement could not be reached between all stakeholders by 31 May 2018, it would not be possible to proceed with TMX. The opposition to the new capacity in 2017 was highest in BC (29%) and Quebec (29%) while positive feelings were much higher in Alberta (67%). Abacus Data showed the cooling of opinions towards new pipeline capacity: the share of those with positive feelings dropped from 58% in 2014 to 44% in 2017. Content is edited by CAPP Communications; questions on editorial content may be referred to [email protected].
Cross-border pipelines such as Enbridge’s Line 3 Replacement Project, originally estimated to be in service before the end of 2019, and TCP’s XL pipeline, approved in Canada in 2010, have also encountered significant opposition on the US side of the border and have been delayed due to legal challenges which remain unresolved. She noted that the broad collaborative approach through organizations like the Canadian Oilsands Innovation Alliance and Natural Gas Innovation Fund has put the Canadian oil and gas at the top of the world stage as far as the footprint in terms of CO2 emissions, and land and water use. An online survey by the Angus Reid Institute in August 2019 brought a similar result: 53% of Canadians wanted the federal government to complete the project. The review below of some of the most high-profile pipeline projects in Canada in recent history confirms this conclusion and demonstrates the uncertain political and challenging regulatory environments within which major pipelines are approved and constructed. Conclusion If you require legal advice, we would be pleased to discuss the issues in this publication with you, in the context of your particular circumstances.

This publication is a general discussion of certain legal and related developments and should not be relied upon as legal advice. 4 The NEB’s authority as described derives from the National Energy Board Act, RSC 1985, c N-7 and the Canadian Environmental Assessment Act, 2012, SC 2012, c 19.

Some First Nations are still opposed to the project, noted Bellegarde. Shortly thereafter, in early October 2017, the application for Energy East was withdrawn by TCP “after careful review of changed circumstances”.

The Trans Mountain expansion project continues to enjoy the support of majority of respondents. This magazine website is published by the Canadian Association of Petroleum Producers as part of an ongoing dialogue with Canadians. As a preliminary matter, it is important to understand, at a high level, the way in which significant international or interprovincial oil or gas pipelines in Canada are currently approved: First, approval of the Governor General, acting on the advice of the Prime Minister and Cabinet (Governor in Council) in the form of a certificate of public convenience and necessity and a positive federal environmental assessment decision statement is required.
Canada has the world’s third-largest oil reserves and is currently the seventh-largest producer of crude oil. Riddell Rose also said that the indigenous communities’ opinions about the pipelines should not be “painted with one brush” and that the industry has had “a hard time” dispelling the belief that all indigenous communities oppose pipelines. While several pipeline projects have been proposed during the last decade, many have been cancelled or delayed as a result of regulatory challenges or political decisions. The Government of Alberta estimated that when price discounts on Canadian oil hit historic highs last fall, the Canadian economy was losing $80 million a day. Even with positive legal decisions and catalysts in favour of these projects, it will take years to recover from the chilling effect legal challenges, political decisions and takeaway capacity issues have had on Canada’s oil and gas sector.

He said that the First Nations need to be engaged “sooner than later” into finding the common ground about the expansion.

The day after completion of this transaction, the Federal Court of Appeal overturned the federal government’s approval of TMX on the basis that the government had breached its duty to consult with Indigenous groups and because the NEB had excluded the impact of marine traffic from its environmental assessment review.10 Up to this point, the TMX project had won 16 consecutive legal battles. 5 At the time the application for Northern Gateway was submitted, the former federal environmental review assessment process applied and accordingly, a Joint Review Panel was established by the Minister of the Environment and the NEB to conduct both the assessment of environmental effects required under the former Canadian Environmental Assessment Act, SC 1992, c 37 and the application for certificates of public convenience and necessity required under the NEB Act. 13 An Act respecting the regulation of vessels that transport crude or persistent oil to or from ports or marine installations along British Columbia’s north coast, 1st Session, 42nd Parliament, 2019, Royal Assent 21 June 2019.

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