Alberta proclaims law that could cut energy flows to British Columbia

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"I speak here as a federalist, please do not put upon further ... alienation amongst Albertans who feel like we just can't get a fair deal", he said.

The price for a litre of regular unleaded gasoline hovered just shy of $1.70 at many stations in Vancouver at midday Wednesday.

Horgan said they'd spoken Tuesday night, and agreed to keep lines of communication open. However, the expansion project has been hit with numerous delays - including court challenges and rulings brought on by environmentalists and the B.C. government.

"There is an opportunity for the three governments to find a way forward", said Horgan. "But there is a lot of work to do and what we're focused on right now is the unacceptably high retail price of gasoline in the Lower Mainland".

The province will argue the Alberta law is unconstitutional because provinces can't discriminate in the distribution of natural resource products, Eby said.

When asked by reporters if he would bargain with the federal government, perhaps swapping B.C. approval for the Trans Mountain expansion for more gasoline coming down the existing pipeline, Horgan said he wouldn't negotiate in public.

"He did advise me that they were going to proceed with enacting and proclaiming Bill 12 - their bill to restrict the flow of oil and gas products to British Columbia", Horgan said. Until now oilsands projects have been reviewed by the Alberta Energy Regulator.

The lawsuit seeks an order suspending operation of the Alberta law pending the outcome of the court case, including the expiry of all applicable appeal periods.

The law will have a more profound psychological effect in British Columbia where commuters are now paying the record-high gasoline prices, Gas Buddy senior petroleum analyst Dan McTeague said. The Alberta government has 20 days to respond to the suit. But he said he rarely hears anyone threaten to leave Canada.

"To throw the emissions cap, which is obviously a concern between the federal and provincial government, into regulation is not appropriate", said CAPP Chief Executive Tim McMillan.

The lawsuit notes that a significant percentage of the gas and diesel consumed in B.C.is imported from Alberta refineries, either by pipeline, train or tanker truck.

"In addition to economic harm, a sudden disruption in supply could injure human health and safety in remote communities". The federal Liberals say it is needed to restore confidence in the assessment process and finally get big projects built; critics say it gives too much political power to the federal cabinet to interfere and allows too much involvement of lobby groups that might not have any direct connection to a proposed project.

The ceremony at Government House in Edmonton marks the formal end of the four-year NDP government under former premier Rachel Notley.

"It's not our intention to reduce shipments or turn off the tap at this time".

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