Oilsands workers, Fort McMurray leaders disappointed with Trans Mountain setback

At aFort McMurray diner on Friday, many customers sipped coffee and swallowed their disappointment as they discussed a federal court ruling that has halted work on the Trans Mountain pipeline project.

The$7.4-billion project, which would double the amount of Alberta petroleum products shipped to West Coast refineries, was approved by the federal government in 2016, and seemed set to move ahead this fall. But on Thursday morning, the Federal Court of Appeal ruled the National Energy Board's assessment of the project had been flawed, and had failed to consider the increased tanker traffic that would result from the expansion.

Oilsandsworker Ed Johnson said FortMcMurrayhas alreadybeen hit by double disasters.

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Crashing oil prices in 2014 sent the economy into a nose dive, then a devastating wildfire in 2016 destroyed hundreds of homes and businesses in several communities.

Johnson said it seemed things were looking up.

"We feel we have touched rock bottom and we are starting to come out of that," he said."And this (the pipeline) was some positive news. And now to get this disheartening news about shutting down Trans Mountain is wrong."

• 'Albertans are angry': Read Rachel Notley's full address

RenGallant, a heavy equipment operator, was saddened by the court ruling.

Hesaid the setbackis a win for other oil-producing nations, many of which don't show the same consideration for human rights or the environment that Canada's oil and gas industry does.

"I feel really bad for Fort McMurray, and for Alberta and for Canada," said Gallant, who is originally from P.E.I.

'I am dancing with joy'

In its ruling, the federal court also said the federal government failed to properly consult with Indigenous groups.

Alice Rigney, vocal opponent of the oilsands, has beenconcerned for years aboutthe amount of water the industry uses, and the pollutants dischargedinto the Athabasca river delta.

Though her First Nation has said it wants to own a part of the Trans Mountain pipeline,she isn't disappointed the court has halted construction.

• 'We are winning': Several B.C. First Nations celebrate Trans Mountain victory
• Alberta Indigenous leaders call for improved consultation after Trans Mountain ruling

She said she disagreed when the Athabasca ChipewyanFirst Nation expressed interest in buying into thepipeline, and with Premier Rachel Notley, who said Thursday Albertan's are "angry" about the court's decision.

'Alberta has done everything right and weve been let down'

6 years ago

Duration 0:49

Alberta Premier Rachel Notley reacts to the Trans Mountain ruling in a news conference Thursday evening.

"PremierNotleyis so wrong to say allAlbertansare angry,"Rigneysaid from her home inFort Chipewyan, north of theoilsandsregion."I am dancing with joy."

"I was surprised and quite happy (with the court's decision). Indigenous peopleare finally being heard."

'Another blow'

In Fort McMurray, the community'sbusiness and politicalleaders say they're frustrated but respect the court's decision.

The president of the Fort McMurrayChamber of Commerce thinks the pipeline will eventually get built, but said the delays will hurt the region's economy.

Businesses won't see theeconomic growth they had hoped for, since Trans Mountain would have increased oilsands production and created access to new global markets.

"It's another blow," Kumkasaid."It's not like 10,000 people are moving out of town tomorrow. That's not going to happen.But it discourages further investment."

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Mayor Don Scott said the delays are upsetting but Canadapays a price for having a strict approval process.

"A lot of people have talked to me about it in the last 24 hours," he said. "People are really disappointed, and I share their disappointment.

"The world needs oil that's built with our high environmental standards. So I believe the world will get access to it. It is just going to take longer than anticipated."

Connect with David Thurton, CBC'sFort McMurraycorrespondent, onFacebook,Twitter,LinkedInor email him atdavid.thurton@cbc.ca