(Reuters) – A Canadian court on Thursday overturned approval of the Trans Mountain oil pipeline expansion, ruling that Ottawa failed to adequately consider aboriginal concerns, in a blow to Prime Minister Justin Trudeau’s efforts to balance environmental and economic issues. Trudeau’s government agreed in May to buy the pipeline from Kinder Morgan Canada Ltd for C$4.5 billion ($3.46 billion), betting it would win the court battle and expand Trans Mountain despite fierce political and environmental opposition. The decision also hurts Canada’s oil producers, who say the expanded pipeline is needed to address bottlenecks that have sharply reduced prices for their crude. Shares fell on the decision. The Federal Court of Appeal ruled that the National Energy Board (NEB) regulator wrongly narrowed its review of the project to exclude related tanker traffic. Additionally, the federal government failed to adequately consult First Nations, as required by law, it ruled. "The big takeaway is the duty to consult (indigenous people) is still the most important step in any major project," said Andrew Leach, associate professor of business economics at the University of Alberta. Trudeau has portrayed himself as a friend to aboriginal people and tried to build national support for a carbon […]

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