Oil and gas industry not broadly consulted on Alberta plan to challenge federal emissions cap

Companies are still digesting Premier Danielle Smith's move to announce a forthcoming motion under the province's Sovereignty Act.

The Alberta government did not consult with the oil and gas sector before announcing a sweeping set of plans it says it could use to challenge the proposed federal greenhouse gas emissions cap, industry sources say.

Companies are still digesting Premier Danielle Smith’s move to announce a forthcoming motion under the province’s Sovereignty Act, which Smith said Tuesday will give Alberta the ability to assert ownership over its own fossil fuel resources.

Tristan Goodman, president and CEO of the Explorers and Producers Association of Canada, said while industry insiders expected the UCP government would use the Sovereignty Act to take aim at the emissions cap, the details unveiled Tuesday came as a surprise.

“We weren’t broadly consulted,” he said.

A second industry source confirmed the lack of consultation, adding that companies on Wednesday were still trying to absorb what Smith’s proposals could mean.

Goodman said companies need to see more detail, particularly around Smith’s suggestion that the provincial government could take exclusive control and ownership of emissions data collected at oil and gas company sites.

“That’s where we would like to be collaborated with. We would like to be talked to, to see how that would specifically work,” he said.

Smith also said the provincial government will consider instructing provincial authorities, such as the Alberta Energy Regulator, not to enforce the cap. And she said Alberta would consider barring federal officials from physically setting foot on oil and gas facilities.