The appellant challenged federal jurisdiction over proposed natural gas gathering pipeline and processing plant expansions in British Columbia, arguing the facilities remained provincial works despite their connection to an interprovincial transmission pipeline.
The majority held that the facilities, together with the existing gathering, processing, and transmission system, formed a single federal transportation undertaking under s. 92(10)(a) of the Constitution Act, 1867 because they were functionally integrated and subject to common management, control and direction.
The Court further held that s. 92A did not derogate from Parliament’s pre-existing jurisdiction over interprovincial transportation undertakings.
It also concluded that the processing plants fell within the definition of “pipeline” in s. 2 of the National Energy Board Act.
The appeal was dismissed, with a dissent holding the facilities retained their distinct provincial character.
