Blogs Mondaq Canada Alberta's 'Turning Off The Taps Legislation' Put On Hold

Alberta's 'Turning Off The Taps Legislation' Put On Hold

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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.

In British Columbia (Attorney General) v Alberta (Attorney General), 2019 FC 1195, the Federal Court dismissed Alberta's motion and granted an interlocutory injunction preventing Alberta's Energy Minister from exercising powers permitted under...

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