LNG Canada has announced that the international consortium is ready to proceed with Canada’s largest ever infrastructure project, but, in a David and Goliath scenario, a challenge by a Smithers environmental consultant is aiming to temporarily derail or delay the $40-billion megaproject.
Michael Sawyer is arguing that the Coastal GasLink Project, a 675-kilometre pipeline running from Dawson Creek to Kitimat, should have faced a federal review by the National Energy Board instead of relying on provincial approval.
Although the $4.7-billion pipeline is set to be built entirely within B.C. — which would usually put it under the jurisdiction of the province — the pipeline, which would supply the LNG Canada export terminal in Kitimat, connects to an existing pipeline system that is federally regulated.
Also, Coastal GasLink Pipeline Ltd. is a wholly owned subsidiary of TransCanada Pipeline Ltd., which means under the Constitution Act the pipeline is within federal jurisdiction and should be regulated by the National Energy Board, Sawyer says in an application to the board.
“A pipeline that crosses international boundaries or provincial boundaries would normally be federally regulated,” Sawyer told The Narwhal, pointing to a 1998 Supreme Court decision that said if a provincial pipeline is “functionally integrated” with an existing federally regulated line, it becomes an extension of the federal line.
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