After announcing the potential for such measures late last week, the Alberta Government said on Monday that it has introduced new legislation which gives the province “the power it needs” to restrict the export of natural gas, crude oil, and refined fuels across its borders.
If passed, the legislation would give the government authority to, if necessary, require any company exporting energy products from Alberta to obtain a licence.
These products would include natural gas, crude oil, and refined fuels, such as gasoline, diesel, and jet fuel. Export restrictions could be imposed on pipelines, as well as transport via rail or truck.
This licence would be issued by the minister of energy if it is determined to be in the public interest, including whether adequate pipeline capacity exists to maximize the return on these resources produced in Alberta.
Companies would not be automatically required to apply for an export licence and would only be directed to do so if the minister deemed it necessary.
Consideration would also be given to ensuring enough supply is maintained for Alberta’s needs, now and into the future. A licence could be issued to a company but for a lower amount than it has previously been exporting.
Companies that do not comply with the terms of a licence issued could face fines of up to $10 million per day and individuals up to $1 million per day. Imports of products into Alberta are not currently subject to any restrictions.
Consideration would also be given to ensuring enough supply is maintained for Alberta’s needs. A licence could be issued to a company but for a lower amount than it has previously been exporting.
In a statement, Alberta Premier Rachel Notley said the measures are about “protecting the jobs and livelihoods of thousands of Albertans and our ability to keep Canada working.”
Alberta, said Notley, “did not start this fight, but let there be no doubt we will do whatever it takes to build this pipeline and get top dollar in return for the oil and gas products that are owned by all Albertans.”