Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Steel pipe to be used in the oil pipeline construction of Kinder Morgan Canada's Trans Mountain Expansion Project sit on rail cars at a stockpile site in Kamloops, British Columbia, May 29, 2018.

Dennis Owen/Reuters

The Canadian government-owned Trans Mountain oil pipeline faces its latest legal hurdle in federal court this week as Indigenous groups appeal the pipeline’s expansion, arguing the government did not adequately consult them before approving it.

A three-day hearing begins on Monday at the Federal Court of Appeal in Vancouver, which agreed to hear concerns from the Coldwater Indian band, the Squamish Nation, the Tsleil-Waututh Nation and others that the government’s second consultation with them on the project this year was “window-dressing, box-ticking and nice-sounding words.”

The legal challenge is the latest setback for Trans Mountain, whose previous owners first proposed the expansion in 2013, as well as two pipeline projects proposed separately by TC Energy Corp. and Enbridge Inc. that would provide badly needed transport for Alberta’s oil.

Story continues below advertisement

Congestion in Canadian pipelines has forced the Alberta government to order production curtailments this year.

The Trans Mountain expansion, referred to as TMX, would alleviate congestion by nearly tripling the pipeline’s capacity to 890,000 barrels of oil per day.

But the expansion has faced prolonged opposition from environmental activists and some indigenous groups, pitting them against the landlocked Alberta province, home to the world’s third-largest oil reserves.

The appeals have not stopped construction, which has been under way since late summer and accelerated this month.

But legal challenges have created a great deal of uncertainty, Mark Pinney, manager of market economics at the Canadian Association of Petroleum Producers, said by telephone.

“One thing the industry needs right now to help it through the difficult times is more certainty,” Mr. Pinney said.

In the lead-up to October’s federal election, in which Prime Minister Justin Trudeau’s Liberals were running in part on their support of Canada’s Indigenous population, the government offered no submissions to support its claim that the consultation had been meaningful.

Story continues below advertisement

This left the court to conclude that the appellants’ concerns met the standard for leave to appeal.

Should the appeal succeed, it would further erode investor confidence in the struggling Canadian oil industry and weaken Mr. Trudeau as he attempts to placate angry Albertans, who feel his party has not done enough to protect their main industry.

Stewart Phillip, grand chief of the Union of British Columbia Indian Chiefs, said the environmental concerns of Indigenous communities have not been adequately addressed and “remain the bedrock” of their fight.

Environment Minister Jonathan Wilkinson told Reuters at the United Nations-hosted climate conference in Madrid on Wednesday that carbon emissions that would be produced by TMX have been accounted for in the Liberals’ plan to get Canada to net-zero emissions by 2050.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies