The Alberta government has won an epic court battle with its British Columbia (BC) counterpart over rights of oil- and natural gas-producing provinces to control pipeline flows.

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The Canadian Federal Court of Appeal dismissed a BC lawsuit against a 2018 Alberta bill nicknamed the “turn-off-the-taps act,” formally titled the Preserving Canada’s Economic Prosperity Act. BC was also directed to pay costs of the two-year case.

The ruling overturned an injunction by the Federal Court of Canada trial division that blocked Alberta from using its contested bill to prevent BC from opposing the 590,000 b/d Trans Mountain Pipeline expansion (TMX) of its oil pipeline.

The appeal verdict restored bargaining power bestowed on oil and gas-supplier provinces by a provision of the...