31 March 2007
We promote Safety and Security,
Environmental Protection and
Efficient Energy Infrastructure and Markets
This issue of the Regulatory Agenda covers the period from January till the end of March 2007.
ISSN 1494-7153
All correspondence should be addressed to:
Secretary
National Energy Board
444 Seventh Avenue SW
Calgary, Alberta T2P 0X8
Fax: 403-292-5503
Fax (toll free): 1-877-288-8803
You may submit your application and other filings to the Board in one of three ways:
Filings and types of documents that can be filed electronically and creating PDF documents: see Filer’s Guide to Electronic Submission [PDF 529 KB].
Applying electronically to participate in a hearing using on-line forms: see Submit documents electronically.
Templates providing alternative ways to file your documents and assistance with the provision of multiple copies due to undue financial burden: see Alternative Ways to File Your Documents.
| General Information: | Telephones: 403-292-4800 Faxes: 403-292-5503 |
| Publications Office: | Telephone: 403-299-3562 |
| Web Site: | www.neb-one.gc.ca |
| For information: | Carole Léger-Kubeczek
(carole.leger-kubeczek@neb-one.gc.ca) Communications Officer Telephone: 403-299-2717 Telephone (toll free): 1-800-899-1265 |
The purpose of this agenda is to provide information on the Board's activities. Except where otherwise noted, jurisdiction over the items in the agenda is exercised pursuant to the National Energy Board Act, R.S.C. 1985, c. N-7, as amended.
"We promote Safety and Security, Environmental Protection
and Efficient Energy Infrastructure and Markets"
On 30 March 2007, the National Energy Board (NEB) released its Focus on Safety and Environment: A Comparative Analysis of Pipeline Performance, 2000-2005, and for the eighth year in a row, no fatalities were listed on NEB-regulated pipelines.
This report, the NEB's fifth annual safety report card, takes a look at the safety, integrity and environmental performance of the pipeline systems regulated by the NEB. For the third year in a row, there were no ruptures on the 45,000 kilometres of NEB-regulated pipelines.
The NEB is proud of its good performance and states that its success can be attributed primarily to the result of integrity management programs, which have been compulsory since 1999.
"We were the first regulator in North America to direct pipeline companies to introduce integrity management programs and I believe these programs are contributing to pipeline safety", said National Energy Board Chairman Kenneth Vollman.
Also encouraging is a drop in the injury rate for contract pipeline workers. The injury frequency for contract workers fell more than 500 per0 cent from just over 30 injuries per 100 full time equivalents in 2003 to 1.1 injuries per 100 full time equivalents in 2005. However, contractor injuries are still happening more frequently than workers directly employed by pipeline companies.
Based on this report, it is clear that NEB-regulated pipelines are a safe and efficient means of transporting petroleum products. As partners in the responsible development of Canada's energy sector, we must all work together to ensure that NEB-regulated facilities are safe, secure and are operated in a manner that protects the environment.
On 5 June 2006, TransCanada submitted an application to transfer certain public facilities to Keystone and also seeking approval to reduce the Canadian mainlines base rate by the net book value of the transferred facilities. The facilities consist of approximately 860 kilometres of 864 millimetre pipeline between Burstall, Saskatchewan and Carman, Manitoba. The transferred facilities would be used for crude oil transmission, subject to an additional application by Keystone to operate oil facilities and build connecting facilities.
The National Energy Board received on 8 October 2004, applications for approval to construct and operate a natural gas pipeline and related facilities through the Mackenzie Valley in Canada's Northwest Territories, to an interconnect point just south of the border with Alberta. The 762 millimetre (30 inch) natural gas transmission pipeline is planned to transport 34 million cubic metres (1.2 billion cubic feet) of product per day.
On 11 January, NEB Counsel hosted a Procedural discussion conference on how the NEB might deal with a proposed Notice of Motion of the Dene Tha' First Nation regarding Jurisdiction over proposed Northern Alberta connecting facilities for the proposed Mackenzie Gas Project.
On 5 February, the NEB released a number of potential conditions that could be attached to a potential approval of the Mackenzie Gas Project, all relating to matters within the NEB mandate and COGOA, and unrelated to the Joint Review Panel (JRP) work on socioeconomic and environmental matters. The NEB instructed Parties to comment by 30 March 2007.
On 12 March, Imperial Oil Resources Ventures Limited, on behalf of all project proponents, filed updated cost and schedule information with the NEB and JRP. The project cost estimate was revised upward from $7.5-Billion to $16.2-Billion. On 30 March, the proponents also filed updated costs and tolling information.
EBPC is proposing to build a 145 kilometre pipeline with a 762 millimetre diameter from the CanaportTM Liquefied Natural Gas Facility at Mispec Point in Saint John, New Brunswick to a point on the international border near St. Stephen, New Brunswick.
On 7 September 2006, Enbridge filed a Preliminary Information Package (PIP) with the NEB. The intent of the PIP is to trigger the environmental assessment process pursuant to the Canadian Environmental Assessment Act (CEA Act). The PIP has been submitted in advance of the Board receiving an application for the proposed ACCE Project under Section 52 of the NEB Act.
The ACCE Project will consist of the construction of a 60 kilometre, 168.3 millimetre (mm) OD pipeline to transport natural gas liquids (NGL) from Alida, Saskatchewan to Cromer, Manitoba. Once this new pipeline is commissioned, an existing and adjacent 323.9 mm OD Westspur pipeline from Alida to Cromer will be converted to transport crude oil rather than the NGL it currently transports. The estimated capital cost of the ACCE Project is approximately $12 to $14 million.
On 5 December 2006, TransCanada applied to the NEB for approval of a new receipt point at Gros Cacouna in the province of Québec for the receipt of regasified liquefied natural gas (LNG). TransCanada was also seeking affirmation of the tolling methodology that will apply to service from that point.
On 12 December 2006, TransCanada submitted an application to construct and operate the Canadian portion of the Keystone Project which is a proposed crude oil line that would run from Alberta to markets in Illinois. The Canadian portion of the line would extend from Hardisty, Alberta to a point near Haskett, Manitoba.
The proposed project involves the acquisition and conversion of 864 kilometres (km) of existing gas pipeline to an oil transmission pipeline. This line is currently owned by TransCanada PipeLines Ltd. Approximately 371 km of new pipeline would be constructed as part of the proposed project, as well as the construction and operation of pump stations, tanks and other related works and activities. The estimated cost of the project is $664 million.
On 24 October 2006, Enbridge filed a Preliminary Information Package (PIP) with the intent to initiate the environmental assessment process. The Alberta Clipper Pipeline Project consists of a proposed 1,590 km oil pipeline extending from Hardisty, Alberta to Superior, Wisconsin.
If approved, the pipeline will have a nominal design capacity of 450,000 barrels per day. The proposed route for the Alberta Clipper Pipeline abuts the existing Enbridge right-of-way for most of its length, but approximately 65 km of new right-of-way that is not alongside and contiguous to an existing right-of-way will be required.
On 9 March 2007, the NEB received an application for the Southern Lights Project from Enbridge Southern Lights GP on behalf of Enbridge Southern Lights LP (ESL) and Enbridge Pipelines Inc. (EPI). The application seeks the following authorizations:
On 22 November 2006, Bruce submitted a permit application to export up to 2 000 MW of combined firm and interruptible power per year and 7 000 GW.h of firm energy and 7 000 GW.h of interruptible energy per year for a period of 10 years. The NEB rendered its decision on 28 March 2007.
On 23 February 2007, BETI submitted a permit application to export up to 1 000 MW/8 760 GW.h of firm power and energy and up to 8 760 GW.h of interruptible energy combined per year for a period of ten years. As amended by the applicant, permit and contract terms were reduced, from 20 years each, to 10 years & 5 years respectively.
On 29 March 2006, Yudinn submitted a permit application to export up to 204 MW/894 GW.h of firm power and energy per year, for a period of 25 years. This electricity was to be exported from a YEI proposed wind farm located in the Brisay area of Quebec.
On 27 February 2007, SACGP submitted a permit application to export up to 150 MW/1 314 GW.h of firm power and energy, per year for a period of ten years.
On 8 June 2006, the Board received an application requesting approval to deactivate the following four pipelines in the Fort Nelson Gathering system:
The NEB decision was issued on 25 January 2007 pursuant to section 44 of the Onshore Pipeline Regulations, 1999.
On 5 October 2007, Nexen submitted an application to construct a natural gas pipeline to cross the Alberta/Saskatchewan border east of Oyen, Alberta and south of Alaska, Saskatchewan. The proposed Cuthbert Gas Pipeline will be approximately 1.3 km in total length (0.1 km in Alberta, 1.2 km in Saskatchewan), 114.3 mm outside diameter and will be constructed within a 15 m wide right-of-way. The purpose of the Pipeline will be to allow gas produced in Alberta to be delivered to Nexen's Cuthbert gas plant located in Saskatchewan. On 26 January 2007, the Board approved the application.
On 21 December 2006, pursuant to paragraph 74(1)(a) and 74(1)(b) of the Act respectively, an application was filed by TransCanada, Foothills and Foothills South (jointly the Applicants) relating to the transfer of the following B.C. System facilities:
The NEB approved the request on 9 February 2007.
On 5 January 2007, in addition to forwarding its name change notification to the Board, Spectra also submitted an application for Variance of Certificate of Public Convenience and Necessity GC-19. The application was granted on 13 February 2007.
On 15 December 2006, Alliance submitted an application seeking authorization under section 58 to construct a new meter station and associated mainline interconnecting piping in northwestern Alberta. The facilities will be situated on Crown Land at a remote location approximately 80 kilometres southeast of Grande Prairie. This planned new receipt point has been designated as AB34 or Moose River, and will accommodate natural gas receipts from a nearby gas plant operated by Samson Canada Production Ltd.
The Board granted its approval on 15 February 2007.
On 27 November 2006, the Board received notification from True Energy pursuant with respect to its amalgamation with Schooner Petroleum Ltd.
Pursuant to Section 21(2) of the National Energy Board Act (the Act), the Board has issued the attached Amending Order AO-3-XG-A163-69-99, which changes the name of the holder of Order XG-A163-69-99, as amended, from Prairie Schooner Petroleum Ltd. to True Energy Inc. The Board advises that, for administrative purposes, it will regulate True Energy as a Group 2 company in accordance with the Board's Memorandum of Guidance on the Regulation of Group 2 Companies dated 6 December 1995.
On 2 March 2007, Nexen filed an application requesting leave to open a portion of the Cuthbert Gas Pipeline. The approval was granted on 6 March 2007.
On 6 March 2007, Westcoast filed an application to amend Order XG-W005-06-2006 to extend by one month the expiry date in Condition 7. The effect of the amending Order is to extend the deadline for the commencement of construction of the Aitken Creek Crossover Pipeline from 18 May 2007 to 18 June 2007. The request was granted on 13 March 2007.
The Board approved on 15 November 2006 a project proposal submitted by Vault to construct a natural gas pipeline crossing the British Columbia/Alberta border west of Manning, Alberta and northeast of Fort. St. John, British Columbia. The pipeline allows natural gas produced in British Columbia to be delivered to an existing Burlington Resources Canada Ltd. lease in Alberta.
The 168.3 mm outside diameter pipeline is approximately 641m in length (170m in Alberta and 471m in British Columbia).
On 14 March 2007, the Board approved the application requesting leave to open the pipeline.
On 21 February 2007, an application was submitted by (Trans Mountain) Pipeline Inc. (Trans Mountain), and Trans Mountain Pipeline L.P. (TMPP) requesting leave to convey the Trans Mountain Pipeline oil transportation facilities to TMPP and the transfer of the certificates for the facilities to Trans Mountain as general partner for TMPP. The Board noted that the application is supported by the Canadian Association of Petroleum Producers.
The request was granted on 15 March 2007.
On 6 March 2007, TransCanada requested approval for leave to transfer ownership of a portion of its assets. In its initial approval issued on 9 February, the Board requested that Foothills confirm the actual closing date of the purchase and sale transactions, the effective date of the transfer and details for rates for the integrated Foothills system. Upon receipt of the required information the Board indicated that it would be in a position to issue the appropriate orders regarding tolls, tariffs, depreciation rates, service agreements and the Foothills Settlement.
In the application submitted on 6 March 2007, the Applicants have indicated that 1 April 2007 will be the closing date for the transaction, and that the transaction will be effective on the closing date.
On 21 March 2007, the Board issued Order TG-03-2007, which reflects the Board's approvals relating to tolls, tariffs, depreciation rates, service agreements and the Foothills Settlement.
On 12 March 2007, Encana filed its application for leave to open the Mid-Tupper Pipelines.
Once in service, this 3.8 dual pipeline and adjacent facilities will be used to transport sweet and sour natural gas from an existing EnCana pipeline hub located in British Columbia and ending in Alberta at a tie-in point adjacent to the existing EnCana compressor station.
On 21 March 2007, the Board issued Order GPLO-E126-03-2007 granting leave to open the Mid-Tupper Pipelines.
On 20 March 2007, M&NP filed an application for leave to open the Corridor Resources Custody Transfer Station. On 23 March 2007, the Board approved the application.
On 20 December 2006, Enbridge filed a section 58 application for the Southern Access Expansion Program: Stages 2A and 2B, located in the Provinces of Alberta, Saskatchewan and Manitoba. The project has an estimated cost of $175,000,000.
The Board granted its approval on 25 January 2007.
In its Section 58 application filed on 18 December 2006, Enbridge was seeking approval to construct and operate two new 47,700 m3 (300,000 barrels) oil tanks and associated facilities at the Edmonton Terminal. Constructing the new tanks and facilities is expected to help meet growing industry and market demands for crude oil tankage capacity to accommodate both existing and future commodity volumes. The project is expected to cost $71,000,000.
The Board approved the application on 26 January 2007.
On 18 January 2007, Enbridge filed an application seeking approval to construct a custody transfer metering system and associated facilities at its existing Edmonton Terminal. The application is being submitted in response to a request from Access pipeline Inc. The project is estimated to cost approximately $5,700,000.
On 22 February 2007, the Board granted its approval.
In the matter of the Chevron et al Olivier H-01 Application for a Declaration of a Significant Discovery filed on 20 February 2007, the Board has declared the following lands to be part of a Significant Discovery on 12 June 2007:
| Latitude | Longitude | Sections |
|---|---|---|
| 69o 10' N | 135o 45' W | 60 |
| 69o 10' N | 136o 00' W | 10 |
| 69o 20' N | 135o 45' W | 51, 52, 53 |
| 69o 20' N | 136o 00' W | 1, 2, 3 |
Outstanding applications are being reviewed.
On 26 February 2007, an application was filed by TNPI requesting approval to extend interim tolls until final tolls are approved by the Board, and to extend the deadline for the company's 2007 toll filing by one month. The request was granted on 28 February 2007.
A. 2006 to 2010 Incentive Toll Settlement, Application for 2007 Tolls
B. Capacity Allocation Procedure and Westridge Dock Bid Premium
(Files OF-Tolls-Group1-T099-2006-01 01 and OF-Tolls-Group1-T099-2007-01 01)
On 8 March 2007, Terasen filed an application for approval of the following:
On 13 March 2007, Terasen filed an application for approval of Interim Tariff No. 68, Rules and Regulations Governing the Transportation of Petroleum on the Trans Mountain pipeline system, to be effective 16 March 2007 pending Board consideration of Tariff No. 69, Rules and Regulations Governing the Transportation of Petroleum;
On 15 March 2007, the Board decided to continue Terasen's Petroleum Tariff No. 65 as interim until 31 March 2007, and make Petroleum Tariff No. 66 interim effective 1 April 2007.
On 14 March 2007, TransCanada applied for approval of revised Interim Tolls for the TransCanada Mainline effective April 2007. On 22 March 2007, the Board approved TransCanada's proposal of amended Mainline Interim Tolls as requested.
On 9 March 2007, Enbridge submitted an application seeking approval of final tolls for 2007. The Board approved the toll proposal on 22 March 2007.
Flint Hill Resources applied to the Federal Court of Appeal for leave to appeal the Board's decision of 28 April 2005 in which it approved two applications from Enbridge Pipelines Inc. to recover, in its Canadian pipeline tolls, US$20 million per year for five years related to the extension of service on the Spearhead Pipeline which runs from Chicago, Illinois to Cushing, Oklahoma and an initiative by Mobil Pipe Line Company to reverse the flow of its pipeline which runs from Patoka, Illinois to Corsicana, Texas.
On 25 May 2005, Flint Hills Resources, Ltd. applied to the Federal Court of Appeal for leave to appeal the Board's decision on the grounds that the Board erred by exceeding its jurisdiction in the approval of the Enbridge application. The Federal Court granted leave and Flint Hills filed its Notice of Appeal on 28 October 2005. The matter was heard and a decision rendered from the bench on 4 October 2006.
Decision: The appeal was dismissed.
The NEB is an independent federal agency that regulates several parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade.
Her Majesty the Queen in Right of Canada 2009 as represented by the National Energy Board This document is published separately in both official languages. For further information, please contact: Communications Team |
Sa Majesté la Reine du Chef du Canada 2009 représentée par l'Office national de l'énergie Ce document est publié séparément dans les deux langues officielles. Pour plus de renseignements : Équipe des communications |