In a controversial decision highlighting a major dispute between local and federal governments in Canada, a British Columbia Supreme Court judge has ruled that the National Energy Board's decision to allow the development of Kinder Morgan's 1000 km Trans Mountain Pipeline from Alberta to British Columbia takes precedence over the city of Burnaby’s enacted provisional law aimed at stopping the expansion of the pipeline.

The decision takes on special significance in the wake of President Obama's recent move to reject the development of the Keystone XL pipeline project, which aimed to bring tar sand oil across the United States to ports in the Gulf of Mexico.

The Supreme Court judgement also requires the City of Barnaby to cover Kinder Morgan's court costs. The City is considering an appeal of the judgement. And local Indian tribes are also rallying against the judgement.

"Where valid provincial laws conflict with valid federal laws in addressing interprovincial undertakings, paramountcy dictates that the federal legal regime will govern," said George Macintosh, the Supreme Court judge who handed down the ruling.