ARCHIVED - Funding Requirements for Pipeline Abandonment to be the Focus of Upcoming NEB Hearing

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For immediate release
19 April 2013

Funding Requirements for Pipeline Abandonment to be the Focus of Upcoming NEB Hearing

CALGARY - The National Energy Board (NEB or the Board) released today a Hearing Order announcing that it will hold an oral public hearing in the later part of 2013, to consider the mechanisms proposed by federally regulated pipeline companies to set-aside and collect funds to cover the cost of future abandonment projects.

The NEB has identified a number of preliminary issues for discussion during the hearing. Some of the issues include:

  • The characteristics of the proposed set-aside mechanisms;
  • The manner in which the funds will be separated from the facility owner’s general corporate funds;
  • How the proposed mechanisms provide for regulatory oversight; and
  • The suitability of the proposed set-aside mechanisms, considering the total abandonment cost estimate and the financial capacity of the facility owner.

An updated List of Issues will be available on the Board’s website at www.neb-one.gc.ca on 14 June 2013. As specified in the Board’s Hearing Order MH-001-2013, any person who wishes to suggest an amendment to the List of Issues must do so by 28 June 2013.

The exact dates of the oral portion of the proceeding will be confirmed by the Board in subsequent correspondence. The oral portion of the hearing will be held in the NEB’s Hearing Room, 2nd Floor, 444 Seventh Avenue SW, Calgary, Alberta. The option to participate electronically will be provided.

Any person interested in participating in the hearing must apply for and be granted participation rights by the Board. Further information on how persons can apply to participate is provided in the Hearing Order.

When completing an Application to Participate, interested persons must demonstrate that their interest is sufficiently impacted by the Board’s decision or that their participation will assist the Board in making its decision. The Application to Participate will be available on the NEB website after the List of Issues is finalized, by 12 July 2013. The deadline to apply to participate is 26 July 2013.

This hearing addresses one of the expectations under the Board’s five-year Action Plan, which is that all NEB-regulated companies will file how they intend to meet the set-aside and collection requirements. The five-year Action Plan required all NEB-regulated companies to take steps to begin to set-aside abandonment funds.

The five-year Action Plan was first set out in a previous Board decision (RH-2-2008). In that decision, the Board also required all NEB-regulated pipeline companies to set aside funds for future abandonment by 2015.

The first step of the Action Plan required companies to file preliminary cost estimates. The Board issued the MH-001-2012 decision which addressed the cost estimates of larger companies, and a letter decision for the smaller companies, in February 2013.

The National Energy Board is an independent federal regulator of several parts of Canada's energy industry with the safety of Canadians and protection of the environment as its top priority. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest.

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Please visit the NEB Web site for general information about the hearing process and how you can participate effectively. To access the information, go to www.neb-one.gc.ca, select Hearing and Information Session, and then click on Participate in a Public Hearing.

For further information:

Carole Léger-Kubeczek
Communications Officer

National Energy Board
Telephone:403-299-7875
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663

Related documents:

  • Group 1 Abandonment Cost Estimates Applications - Hearing Order MH-001-2013 [Filing A51587]
  • Set-aside Mechanism and Collection Mechanism MH-01-2013 [Folder 927998]

For a printed copy of the Hearing Order MH-001-2013:

National Energy Board Library
Suite 210, 517 Tenth Avenue SW
Calgary, Alberta
T2R 0A8
E-mail: library@neb-one.gc.ca
Telephone: 403-299-3561
Telephone (toll free): 1-800-899-1265
Facsimile: 403-292-5503
Facsimile (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663

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