Question: Mini Case: Conflict Escalation between Neighbours Since 1 9 5 3 , the Kinder Morgan Trans Mountain Pipeline has transported crude and refined oil from

Mini Case: Conflict Escalation between Neighbours
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 $7.4 billion. Alberta sees the pipeline as critical to its
economic future, but in early 2016, British Columbias 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. Albertas 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 Columbias 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 provinces gas supply, and Mayor of Calgary Naheed Nenshi criticized the
British Columbia premier, saying, Its 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 Canadas NDP leaders, and between provincial and
federal governments.
In late May 2018, the federal government bought the Trans Mountain pipeline
from Kinder Morgan for $4.5 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,
Chapter 10 Case Study
including Indigenous communities, pension funds, and the Alberta government to
sell the pipeline once it has been completed.
Apply Your Understanding
1. Describe the organizational sources of conflict described in this case.
2. Is this conflict zero-sum? Can it be framed as a winwin?
3. Describe several ineffective conflict management techniques that have been used in this instance.
Please explain answers at least three paragraph. Thank you.

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