I agree on principle, BC should not be able to extort sucha transit fee.  And it is an ugly precedent.  But you have to consider the political climate here.  The lefty activism is strong.  There is an election this year and a strong likelihood the NDP will get in.  The NDP leader Horgan is campaigning on obstructionism against pipelines and natural gas.  So the BCLiberals have to be seen as doing something to make the deal sweeter for BCers.  Yeah it sucks, but it seems the BCL have helped the Feds get to the tipping point where oil can get to china in greater volume, which in a Trump World is absolutely imperative.