B.C.’s court move to block Trans Mountain is discriminatory, redundant: CAPP

April 26, 2018 - Calgary, AB

Calgary, Alberta (April 26, 2018) – A new court case by the Government of British Columbia to block construction of the Trans Mountain expansion is discriminatory and redundant – just another stall tactic to tie the project up with more red tape after Ottawa gave it the green light 18 months ago, according to the Canadian Association of Petroleum Producers (CAPP).

B.C.’s latest move discriminates against both the product and the transportation type, purposely alienating Trans Mountain and stalling its construction. In addition, B.C. wants to add a duplicative process to the project, which has already undergone the most extensive regulatory review in Canadian history and was approved under the National Energy Board Act.

The Government of Canada now needs to exercise its Constitutional authority and act in Canada’s best interests to move the project forward without further legal or political delays from the B.C. government, or risk hurting the national economy and the livelihoods of thousands of middle-class Canadians.

When Prime Minister Justin Trudeau approved Trans Mountain he made a commitment to get Canada’s oil and natural gas resources to tidewater for export to ensure fair market value. As part of that commitment, he introduced the $1.5-billion Oceans Protection Plan to further enhance marine response, complementing the Western Canada Marine Response Corporation.

In the past two years Canada has lost more than $60 billion in capital investment with the demise of Enbridge’s Northern Gateway pipeline, TransCanada’s Energy East pipeline, and Petronas’ Pacific NorthWest LNG project, among others.

Canadian Association of Petroleum Producers quotes: Tim McMillan, president and CEO

  • “Enough is enough – it’s time to build Trans Mountain or risk the livelihood of thousands of Canadians and Canada’s reputation as a fair place to do business.”
  • “What Premier John Horgan and his government are doing is a sham. They are not acting in the best interests of Canadians, or British Columbians, but instead advancing their own political agenda.”
  • “Trans Mountain underwent a thorough and extensive regulatory review – determining there was enough scientific evidence to ensure marine safety and approve the project. Trans Mountain is in Canada’s best interest.”
  • “Ottawa approved this project on the evidence that we can protect Canada’s West Coast today and into the future. Now it’s time to build pipelines, not legal barricades.”
  • “It’s time Canadians stand up and show their support for the important role the oil and natural gas industry plays in our country’s economy and its future. Together, we can provide the world with the most sustainable and responsible energy produced.”
  • “Oil and natural gas continues to play a significant role in the world’s future energy mix. Canada has an opportunity to meet that demand but only with effective regulatory policies, and co-operation between all levels of governments. We all want Canada to succeed.”

Supporting information

  • Canada boasts world-class, government-certified, industry-funded marine response organizations such as the B.C.-based Western Canada Marine Response Corporation, in addition to the Oceans Protection Plan.
  • In 2011 about 2.2 million tonnes of oil were safely shipped from the Port of Vancouver. Tankers have safely and regularly transported crude from Canada’s West Coast since the 1930s.
  • Canada’s existing pipeline network is currently operating at capacity at four million bpd. CAPP forecasts the annual supply of western Canadian oil will rise to 5.4 million bpd by 2030, an increase of 1.5 million bpd from 2016.
  • Approval of the TMEP was made based on existing scientific evidence, and a commitment was made to continue studying the effects of spilled diluted bitumen (dilbit) on water.
  • The protection and safety of our coastlines is of paramount importance to Canada’s oil and natural gas industry. In 2017, CAPP began a joint study with the Canadian Energy Pipeline Association to understand the fate and behaviour of spilled dilbit on the marine environment – building off of the 2015 Royal Society of Canada study.
  • CAPP has partnered with the International Institute for Sustainable Development’s Experimental Lakes Study to explore the effects of spills on fresh water. This research is in collaboration with other agencies and departments within the federal government.

The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce about 80 per cent of Canada’s natural gas and crude oil. CAPP's associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP's members and associate members are an important part of a national industry with revenues from crude oil and natural gas production of about $110 billion a year. CAPP’s mission, on behalf of the Canadian upstream crude oil and natural gas industry, is to advocate for and enable economic competitiveness and safe, environmentally and socially responsible performance.

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