Trans Mountain Pipeline Expansion Project clears legal hurdles

On January 16, 2020, the Supreme Court of Canada deliberated for only thirty minutes before dismissing British Columbia’s unconstitutional attempt to legislate the flow of heavy oil through the TMX. British Columbia’s appeal was the culmination of its government’s efforts to fulfill its May 2017 election promise to “use every tool in the toolbox” to stop the Project.

In April 2018, the Government of British Columbia submitted three reference questions to the Court of Appeal of British Columbia (the Reference). The Reference asked whether British Columbia had jurisdiction to amend its Environmental Management Act to impose a permitting requirement on the transportation of “heavy oil” within British Columbia (the Proposed Amendments). The Proposed Amendments defined “heavy oil” to only capture blends of
oil produced in Alberta and Saskatchewan and, due to the infrastructure currently in place, would only apply to the TMX and additional crude-by-rail operations.

This article was first published in the Canadian Association of Petroleum Landmen's "The Negotiator" in April 2020 and is available in full here.