Changes to Natural Gas Export Licence Term under Part VI of the National Energy Board Act - Consultation on Proposed Regulatory Amendments

Changes to Natural Gas Export Licence Term under Part VI of the National Energy Board Act - Consultation on Proposed Regulatory Amendments [PDF 100 KB]

File: Ad-GA-ActsLeg-Fed-NEBA-Amend 0101
29 June 2015

To: All Interested Parties

Dear Sir or Madam:

Changes to Natural Gas Export Licence Term under Part VI of the National Energy Board Act - Consultation on Proposed Regulatory Amendments

The Economic Action Plan 2015 Act received Royal Assent on 23 June 2015. It amended the National Energy Board Act (NEB Act) to allow for the issuance of natural gas export licences for a term not exceeding 40 years.

The Board is currently seeking input on proposed amendments to the National Energy Board Part VI (Oil and Gas) Regulations (Part VI Regulations) related to a new category of licences that would permit the export of natural gas for a term not exceeding 40 years. The amendments include a definition of “natural gas” and a new section in the Part VI Regulations that would list the filing requirements for these new licences, as well as the terms and conditions that the Board may impose on them.

Please note that these proposed amendments will not impact existing regulations governing licences for the exportation of gas, propane, butanes, ethane and oil for a term not exceeding 25 years. Nor will there be any change to existing regulations governing orders for the exportation of gas, ethane or heavy crude oil for a term not exceeding 2 years, or orders for the exportation of propane, butanes or oil other than heavy crude oil for a term not exceeding 1 year. These pre-existing licences and orders are still available and applicants may refer to the current Part VI Regulations for additional details.

The proposed amendments are listed below and can also be found on the NEB’s website under “Acts and Regulations”. Comments can be submitted to the NEB until 28 July 2015 using the following methods:

  • Email: PartVIConsultation@neb-one.gc.ca
  • Mail: Part VI Export and Import Consultations
    Attention: Suchaet Bhardwaj
    National Energy Board
    517 Tenth Avenue SW
    Calgary, Alberta,  T2R 0A8
  • Fax: 403-292-5503 or 1-877-288-8803 (toll free)

Proposed Amendments to Part VI Regulations

Definition of Natural Gas
“natural gas” means a mixture of gas that is composed of at least 85 % methane and that may contain any hydrocarbon or mixture of hydrocarbons in a gaseous state and minor amounts of non-hydrocarbon gasses and impurities. (gaz naturel)

Application Requirements
An applicant for a licence for the exportation of natural gas shall furnish to the Board all the information that is necessary for the Board to dispose of the application, including, unless otherwise authorized by the Board,

  • the terms and conditions that the applicant is requesting for the licence, including
    • the duration of the licence,
    • the maximum annual and total quantities proposed to be exported,
    • if applicable, the tolerance levels that are necessary to accommodate temporary operating conditions, and
    • the points of exportation from Canada;
  • the source of the proposed exportation;
  • a description of the implications of the proposed exportation on the ability of Canadians to meet their natural gas requirements;
  • the period within which the exportation must begin for the licence to remain in effect; and
  • the name and contact information of the applicant and of its authorized representative, if any.

Terms and Conditions
A licence for the exportation of natural gas may be made subject to terms and conditions concerning the following matters:

  • the duration of the licence;
  • the maximum monthly, annual and total quantities to be exported;
  • if applicable, the tolerance levels that are necessary to accommodate temporary operating conditions;
  • the period within which the exportation must begin for the licence to remain in effect; and
  • the points of exportation from Canada.

If you have any questions regarding the proposed amendments to the Part VI Regulations or the consultation process please contact Suchaet Bhardwaj at Suchaet.Bhardwaj@neb-one.gc.ca or 403-299-2746 or toll free 1-800-899-1265.

Yours truly,

Original signed by

Sheri Young
Secretary of the Board

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