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Much of that crude will head to the Gulf Coast, the world’s largest refining market for heavy oil, though Notley said some volumes will go to Canada’s West Coast and eastern markets as well.

Photo by Ian Cuserak / Postmedia

The plan to lease railway cars, buy oil from producers and sell it to refineries will cost a total of $3.7 billion, but generate $5.9 billion in government revenues over three years through a combination of oil sales, higher royalties and taxes, according to the premier.

She said the province had to act in order to lift prices for Canadian heavy oil, which as recently as December suffered record-setting discounts relative to U.S. benchmarks.

“This is something that is fundamentally important to the return that all Albertans get for our energy resources,” Notley said, while also dismissing suggestions that the oil-by-rail contracts should not have been signed so close to a provincial election.

“We plan to ensure that outside of election cycles, the best interests of Albertans are taken care of,” she said.

Prasad Panda, the energy critic for the opposition United Conservative Party, said his party would review any contracts signed leading up to the election. The government has yet to drop the writ and call an election, but polls show the UCP with a lead on the ruling NDP.

“We have said previously that we are not opposed in principle to using rail to get our product to market in the absence of much-needed pipelines. That said, we have also stated that we will review all contracts signed by the government in the current campaign period to ensure taxpayer value,” Panda said in an email.