Following Kinder Morgan's decision to suspend all
non-essential work on the Trans Mountain pipeline in 2018, the
Alberta Legislature passed the Preserving Canada's Economic
Prosperity Act, SA 2018, c P-21 (the
"Act").
Frequently referred to as the "Turning off the Taps
Legislation," the Act empowered Alberta's Energy
Minister to require exporters of natural gas, crude oil, or refined
fuels to obtain a license. One factor to be considered when
granting licenses was whether pipeline capacity existed to maximize
the return on crude oil and diluted bitumen produced in
Alberta.
British Columbia challenged the Act's
constitutionality and applied for an injunction suspending the
legislation from operating. Alberta sought to strike BC's
action.