Federal Court of Appeal Releases Decision on Trans Mountain Expansion

Federal Court of Appeal Releases Decision on Trans Mountain Expansion

In a scathing statement, Notley declared that "the time for Canadian niceties is over" and urged Prime Minister Justin Trudeau to recall Parliament for an emergency session to address what she called a crisis that threatens Canada's sovereignty.

Trudeau had a teleconference with each province's Premier Thursday.

Kinder Morgan Canada shareholders are expected to accept the offer made by the federal government after the pipeline's owner ceased work on the project amid protests across B.C.

Federal Finance Minister Bill Morneau said earlier in the day that the federal government is dedicated to move forward with the Trans Mountain project.

This is the effect of the unholy alliance between the federal government and corporations taking shortcuts through consultation.

January 12, 2016: Alberta Premier Rachel Notley says in a written submission to the NEB that the Trans Mountain pipeline expansion is in the best interests of both Alberta and Canada.

The court ruling will halt construction of the 1,150km project, spearheaded by Texas-based Kinder Morgan, until the energy regulator and government can show they have complied with the court's demands - a process that could take years.

Yao and David Yurdiga, Fort McMurray-Cold Lake MP, also said the uncertainty regarding NAFTA's future means pipeline projects are even more important now.

In its written decision by Justice Eleanor Dawson quashing the approval, the appeals court challenged the National Energy Board's (NEB) review "on two principal grounds".

Trudeau took a political gamble when his government approved the project in 2016 after an environmental review, saying it was in the "national interest" as it would help ease Canada's reliance on the U.S. market, and get a better price for its crude oil.

At issue for the court, however, was the board's silence on the impact the pipeline could have on the marine environment around the Burnaby, B.C. shipping terminal situated at the end of the expanded line.

Tropical Storm Florence forms in eastern Atlantic Ocean
The National Hurricane Center introduced this product previous year to accommodate systems that develop and intensify near land. But shear is forecast to decrease in the weeks ahead, leaving open the possibility for more powerful storms.

On Ottawa's watch, work was halted on other major pipelines, such as Northern Gateway and Energy East. Trans Mountain was left as the one major conduit that could potentially carry Alberta oil to world markets, rather than the US refineries that are the destinations for every other Canadian pipeline.

Most of the additional capacity would be destined for points overseas.

Premier Rachel Notley has announced that Alberta is pulling out of the national climate plan until the federal government "gets its act together" on the Trans Mountain pipeline expansion. The special assembly in Calgary lasted three minutes and resulted in 99 per cent of shareholders balloting in favour of the deal to sell the pipeline system to Ottawa for $four.5 billion.Kathleen Lang, a Kinder Morgan Canada shareholder who attended the assembly and voted in favour of the sale acknowledged she believes Trans Mountain is well-known for the Canadian financial system.

"We would like to see a NAFTA agreement sooner rather than later", he said. "So we will be considering our next steps in light of that".

Energy analyst Ian Gillies said in a note that the ruling will lead investors to question whether other large projects will move forward.

Trudeau has faced mounting criticism for forging ahead with the purchase in order to guarantee the pipeline's completion.

The court also concludes that the federal government failed in its duty to engage in meaningful consultations with First Nations before giving the green light to the project.

Morneau did not rule out seeking leave to appeal to the Supreme Court of Canada, but he suggested the government would comply with the Federal Court's requirements, saying it had given the government good direction on next steps. The court did not specify a timeline.

"If the Federal Court strikes down the permit authorizing the pipeline because of inadequate consultation, or for another reason, then I don't see how the pipeline project can proceed - unless or until the Supreme Court reversed that decision", he said.

April 8, 2018: Kinder Morgan Canada suspends non-essential spending on the Trans Mountain expansion project and sets a May 31 deadline to reach agreements with stakeholders.

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