Case Study $3$ Conflict Escalation Between Neighbours

Summary:

Since $1953,$ the Kinder Morgan Trans Mountain Pipeline has transported crude and refined oil from Alberta to the west coast of British Columbia, which gets approximately $90$ percent of its gasoline from that pipeline. In $2013,$ Kinder Morgan applied to build a second, larger pipeline, running parallel to the first, at an estimated cost of $$7\mathrm{.}4$ billion. Alberta sees the pipeline as critical to its economic future, but in early $2016,$ British Columbia$$s NDP government said that it did not support the pipeline, partly due to environmental risks associated with oil spills. In late $2016,$ the federal government approved the Kinder Morgan expansion project, and assured Canadians that the approval was $$subject to $157$ binding conditions that will address potential Indigenous, socioeconomic and environmental impacts, including project engineering, safety and emergency preparedness.$$

In January $2018,$ British Columbia announced that oil imports from Alberta should be restricted until a study could be completed on the environmental impact of a potential spill. Alberta$$s premier $($a member of the NDP$)$ called the announcement a $$stall tactic$$ and retaliated by blocking imports of wine from British Columbia. These sanctions were lifted two weeks later.

Both governments have appealed to the federal government for assistance, and both governments have filed lawsuits in federal court. The federal government has referred the provinces to dispute mediation while those lawsuits progress.

In April $2018,$ Kinder Morgan suspended $$non$-$essential$$ pipeline activities because British Columbia$$s continued opposition was putting shareholder resources at risk. Alberta responded by proposing to restrict the amount of crude oil, natural gas, and refined fuel being sent to British Columbia, essentially cutting off that province$$s gas supply, and Mayor of Calgary Naheed Nenshi criticized the British Columbia premier, saying, $$It$$s very clear that Mr$.$ Horgan, who I think is one of the worst politicians that we have seen in Canada in decades, appeals to populism in a way that is not based on fact.$$ What started as a legitimate conflict between competing interests has become a bitter dispute between Alberta and British Columbia, between Canada$$s NDP leaders, and between provincial and federal governments.

In late May $2018,$ the federal government bought the Trans Mountain pipeline from Kinder Morgan for $$4\mathrm{.}5$ billion. The government has stated that it does not plan to be a long$-$term owner of the pipeline, and is in negotiations with investors, including Indigenous communities, pension funds, and the Alberta government to sell the pipeline once it has been completed.

Questions:

$1.$ Describe the organizational sources of conflict described in this case.

$2.$ Is this conflict zero$-$sum? Can it be framed as a win$$win$?$

$3.$ Describe several ineffective conflict management techniques that have been used in this instance.