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Home > Reports > Regulatory Agenda > Regulatory Agenda - October, November and December 2006

Regulatory Agenda - October, November and December 2006

We promote Safety and Security,
Environmental Protection and
Efficient Energy Infrastructure and Markets

This issue of the Regulatory Agenda covers the months of October, November and December 2006.

ISSN 1494-7153

In this Issue

Instructions for Filing

Correspondence

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

Applications and other filings, number of copies to be filed

You may submit your application and other filings to the Board in one of three ways:

  1. Electronically: From the National Energy Board Web site, click on View or Submit a Regulatory Document, scroll down to the option entitled Submit documents electronically. One (1) copy of your signed original document(s) and a printed copy of your efiled receipt must also be mailed (see address above); or
  2. Fax one (1) copy of your signed documents (see number above); or
  3. Mail one (1) copy of your signed documents (see address above). In the case of an application, twenty-five (25) copies of your signed documents must also be mailed.

Additional information on filings

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.

Communication Numbers

General Information:

Telephones: 403-292-4800
Toll Free 1-800-899-1265

Faxes: 403-292-5503
Toll Free 1-877-288-8803
Publications Office:

Telephone: 403-299-3562
Fax: 403-292-5576
Email: publications@neb-one.gc.ca
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

Preface

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"

Regulatory Agenda goes online on a quarterly basis.

Announcements

Lots of changes are in store for the upcoming issues of the Regulatory Agenda. In an effort to provide access to a wider range of information, the Regulatory Agenda will now be published on a quarterly basis and will only be available online. From now on, to access the online Regulatory Agenda, please visit the NEB Web site (www.neb-one.gc.ca). Under Reports, click on the letter "R" and select Regulatory Agenda.

NEB Moves Forward

New Phase for NEB Mackenzie Gas Project Hearings

On 14 December 2006, the scheduled evidentiary portion of the MGP hearings were adjourned in Inuvik, Northwest Territories, following closing remarks by NEB Chair Ken Vollman who updated interested parties on the Board's intentions about five main issues that the Board would work on in the coming months.

As a first priority, the Board had to address a motion proposed by the Dene Tha' First Nation (DTFN) on 30 November. The NEB announced in a proposed notice of motion [Filing A14293] issued on 8 December that it would host a procedural discussion conference on 11 January 2007, and would issue directions soon afterwards.

With regards to the applicant, the Chair encouraged Imperial to provide more clarity on the timing of its updated economic evidence in order to increase certainty and help the NEB move the process forward. The Chair indicated the NEB would canvass parties for views on the process to address that information.

In reference to a notification by the Government of Canada that it intends to update its evidence on Aboriginal consultation, the Chair indicated that once this process is completed, the NEB will then provide parties with an opportunity to comment.

Furthermore, the Chair noted that the NEB would be preparing potential conditions not related to the separate Joint Review Panel's environmental and socio-economic issues, and would later decide on a process for the release of the draft conditions for scrutiny by parties.

The Chair ended his remarks by noting that the NEB would provide, at a later date, direction on how the Final Argument phase of the NEB Mackenzie Gas Project hearing will occur.

Public Hearing Applications

Hearing Decision Issued

1. Terasen Pipelines (Trans Mountain) Inc. (Terasen) - TMX Anchor Loop - OH-1-2006 (File 3200-T099-1)

On 29 October 2006, the NEB released its reasons for decision on the TMX - Anchor Loop Application.

The TMX Anchor Loop Project consists of 158 kilometres of pipeline loop and other facilities to increase the capacity of the Trans Mountain pipeline by approximately 6,360 cubic metres (40,000 barrels per day). The anticipated cost of the project is $400 million.

Hearings in Progress

1. Imperial Oil Resources Ventures Limited (Imperial), Mackenzie Valley Aboriginal Pipeline Limited Partnership, ConocoPhillips (North) Limited, Shell Canada Limited and ExxonMobil Canada Properties - Mackenzie Gas Project - GH-1-2004 (Files 3200-J205-1, 2520-C-19-4, 2620-C-19-7, 2620-C-12-7 and 2620-C-20-7)

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) per day.

As part of the NEB Mackenzie Gas Project, hearing sessions were held in October, November and December in the following Northwest Territories locations:

2 October: Deline 28 November - 2 December: Inuvik
3 October: Wrigley 4 December: Tuktoyaktuk
4-5 October: Fort Simpson 5 December: Fort McPherson
22-25 November: Inuvik 6 December: Tsiigehtchic
27 November: Colville Lake 11-14 December: Inuvik

2. TransCanada PipeLines Limited (TransCanada) - Application to change the tariff on the Mainline natural gas pipeline - RH-1-2006 (File OF-Tolls-Group1-T211-2006-06 01) (4775-T001-1-31)

TransCanada's is applying to change the tariff on its 14,898 kilometres Mainline natural gas pipeline. The proposed tariff changes would allow TransCanada to implement two new short notice services intended to meet the needs of gas-fired electrical power generators: Firm Transportation - Short Notice and Short Notice Balancing.

3. Emera Brunswick Pipeline Company Ltd. (EBPC) - Brunswick Pipeline Project - GH-1-2006 (File PA-MNP 2006-001)

EBPC is proposing a 145 kilometre 762 millimetre diameter pipeline 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.

4. TransCanada PipeLines Limited (TransCanada) and TransCanada Keystone GP Ltd. (Keystone) - Transfer of certain pipeline facilities from TransCanada to Keystone - MH-1-2006 (File OF-Fac-G-T241-2006-01) (3400-T241-1)

TransCanada is applying 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.

New Facility Applications

1. Enbridge Pipelines (Westspur) Inc. (Enbridge) - Proposed Alida to Cromer Capacity Expansion (ACCE) Project (File OF-Fac-Oil-E103-2006-03 01)

On 7 September, 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.

2. TransCanada Keystone PipeLine GP Limited (TransCanada) - Proposed Canadian portion of the Keystone Project - OH-1-2007 (File OF-FAC-OIL-T241-2006-01-02)

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.

3. Enbridge Pipelines Inc. (Enbridge) - Proposed Alberta Clipper Project (File OF-Fac-Oil-E101-2006-04 01)

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.

Non Hearing Applications

Electricity Matters

Matters Completed

1. British Columbia Hydro & Power Authority (BC Hydro) - Electricity export (File OF-EI-Elec-B215 01)

On 27 July 2006, BC Hydro applied for a permit to continue exporting firm power and energy as a border accommodation to Tongass Power and Light Company (Tongass), a company that distributes power to customers in Hyder, Alaska. The permit BC Hydro is applying for would be a 10-year export permit. The permit was issued on 26 October 2006.

2. New Brunswick Power Generation Corporation (NB Power) - Electricity Export (File OF-EI-Elec-N103 01)

On 22 June 2006, NB Power applied for permits to export up to 1,124 megawatts of excess electrical capacity and up to 9,846 gigawatt hours of excess electrical energy on a firm or interruptible basis with a requested duration period of 10 years. On 10 October 2006, the permit was issued.

3. Direct Commodities Trading Inc. (DCT) - Request for revocation of Electricity Export Permit EPE-240 (File OF-EI-ElecGen 02) (6200-D070-1)

On 13 November 2006, DCT filed a request for revocation of electricity export permit EPE-240. The Board approved the request on 27 November 2006.

Matters under Consideration

1. Montana Alberta Tie Ltd. (MATL) - Construct an International Power Line (IPL) from Lethbridge, Alberta to Great Falls, Montana (File AFIPL-MAT-01)

On 21 December 2005, MATL applied for approval to construct an IPL from Lethbridge, Alberta to Great Falls, Montana. MATL also proposes to construct a new 230 kilovolt substation and a phase shifting transformer to control the direction of the flow of power near Lethbridge. The proposed IPL would be capable of transferring up to 300 megawatts of power in either direction. On 14 June 2006, MATL submitted revisions to its preferred route and project design changes. The estimated length of the transmission line is now 347 km.

2. Yudinn Energy Inc. (Yudinn)- Electricity Export (File A-P-YEI 01)

On 28 March 2006, Yudinn applied for permits to export up to 204 megawatts of firm power and 894 gigawatt hours of energy per year for a period of 25 years.

3. Bruce Power Inc. - Application for a permit authorizing the export of interruptible electricity at points on the international border between Ontario and the United States (File OF-EI-Elec-B244 01)

On 22 November 2006, Bruce Power Inc. submitted a permit application to export up to 2 000 megawatts of combined firm and interruptible power per year and 7 000 gigawatt hours of firm energy and 7 000 gigawatts of interruptible energy per year for a period of 10 years.

Gas Matter

1. Engage Energy Canada L.P. (Engage) - Request for revocation of Gas Export Licence GL-282 (File 7200-W042, 7200-E099-2)

On 31 October 2006, the Board had for consideration a request for revocation of Licence GL-282, as the company is discontinued. The request was granted on 27 November 2006.

Pipeline Matters

Matters completed

1. Enbridge Pipelines (Westspur) Inc. - Application for construction of Midale Terminal Capacity Expansion Project (File OF-Fac-Oil-E103-2006-02 01)

On 21 July, Enbridge filed a Section 58 facilities application to construct the Midale Project, and requested exemption from the provisions of Sections 29 to 33 and from Section 47 of the NEB Act. Enbridge anticipates that forecasted increases in crude oil production in southeast Saskatchewan will bring current volumes beyond pipeline capacity in fall 2006. The Project involves upgrades to existing pumping facilities at the Midale Terminal and a new booster facility, the Bryant Booster Station, for which Enbridge has obtained land. The projected cost is $3,398,400. On 2 October 2006, a decision was rendered by the NEB.

2. NuVista Energy Ltd. and Profico Energy Management Ltd. - Sale of Hallam Pipeline and name change (File OF-Fac-Gas-N296-01 01)

On 3 October 2006, the Board approved Order A0-2-XG-C41-44-95,which reflects the name change and transfer of the Hallam pipeline from Profico Energy Management Ltd. to NuVista Energy Ltd.

3. TransCanada Pipelines Limited (TransCanada) - 2006 Eastern Mainline Expansion, Application for Leave to Open the Stittsville Loop (File AF-TCP-2005-014) (3400-T002-249)

On 4 October 2006, the Board approved Order GPLO-T001-12-2006 granting TCPL leave to open the Stittsville Loop for the transmission of natural gas at the maximum operating pressure of 6895 kPa.

4. TransCanada PipeLines Limited (TransCanada) - Application for Eastern Mainline Expansion - Leak Test and Plan for the Deux-Rivières Loop (File PA-TCP-2005-014) (3400-T001-249)

On 11 October 2006, the Board decided that TransCanada has complied with Condition 9 of Order XG-T001-01-2006.

5. TransCanada PipeLines Limited (TransCanada) - 2006 Eastern Mainline Expansion - Application for Leave to Open the Deux-Rivières Loop (File AF-TCP-2005-014) (3400-T001-249)

On 30 October 2006, TCPL filed an application for Leave to Open the Deux-Rivières Loop. The request was granted by the Board on 31 October 2006.

6. TransCanada PipeLines Limited (TransCanada) - Application for 2006 construction No. 3 and construction of Goreway Meter Station (File OF-Fac-T211-2006-03 01)

On 15 September 2006, TransCanada filed an application in respect of 2006 Construction No. 3 - Construction of Goreway Meter Station at an estimated cost of $1,336,000.

7. Husky Oil Limited (Husky) - Application for leave to open the Border Crude Oil Pipeline Expansion (File PA HOL 2004 001) (3400-H046-03)

On 5 October 2006, Husky filed an application requesting leave to open the Border Crude Oil Pipeline Expansion for the transmission of crude oil.

8. Husky Oil Operations Limited (Husky) - Husky Rainbow Bivouac Pipeline Loop (File OF-Fac-Gas-H109-2006-02 01)

On 25 October 2006, the Board reviewed an application submitted by Husky regarding the Husky Rainbow Bivouac Pipeline Loop. Also for consideration was the draft Environmental Screening Report which the Board approved on 28 November 2006.

9. Vault Energy Inc. (Vault) - Application for the Chinchaga Gas Pipeline Project (File OF-Fac-Gas-V037-2006-01 01)

On 20 October 2006, Vault filed an application to construct the proposed Chinchaga Gas Pipeline Project. This project involves the construction of a natural gas pipeline containing 20 ppm of 0.002% H2S pipeline from a Vault Energy Inc. wellsite located at a-1-A/94-H-80 in British Columbia to Burlington Resource Canada site located at 04-23-095-13 in Alberta.

10. Maritimes and Northeast Pipeline Management Ltd. (M&NP) - Bear Head Pipeline Project Description Update (File OF-Fac-Gas-M124-2006-02 01)

On 27 October 2006, M&NP filed a letter asking the Board and all other governmental agencies involved in the federal coordination exercise to refrain from further activity in connection with the proposed project description and related environmental review at this time. M&NP requested that the regulatory review process be suspended rather than terminated, in case it should prove possible to revive the Pipeline Project in the future.

11. Enbridge Pipelines Inc. (Enbridge) - Deactivation of Segments and the Bronte Lateral (File OF-Fac-Oil-E101-2006-05-01)

On 1 December 2006, Enbridge applied for approval to deactivate segments of Lines  7, 12, 22, and the Bronte Lateral. The Board approved the request on 22 December 2006.

12. EnCana Oil & Gas Co. Ltd on behalf of the EnCana Oil & Gas Partnership (EnCana) - Mid-Tupper Pipelines Project (File OF-Fac-Gas-E126-2005-02 03)

On 14 December 2006, EnCana submitted a variance application for changes to the pipeline approved by Orders XG-E126-37-2005 and AO-1-XG-E126-37-2005. The request was granted by the Board on 22 December 2006.

Frontier Matters

Matters Completed

1. Chevron Canada Limited

In the matter of the Chevron et al Langley K-30 Application for Declaration of Significant Discovery filed on 1 August 2006, the Board has declared the following lands to be part of a Significant Discovery on 22 December 2006:

Latitude Longitude Sections
69o 20' N 135o 30' W 29, 30, 39, 40
69o 30' N 135o 30' W 21, 31

Matters under Consideration

1. Husky Oil Operations Limited

On 27 November 2006, Husky filed an application for a Declaration of Significant Discovery pursuant to section 28 of the Canada Petroleum Resources Act in respect of the Husky et al Stewart D-57 well, Exploration License 397 and the following applied-for lands:

Latitude Longitude Sections
69o 20' N 125o 15' W 45, 46, 55, 56, 65, 66
64o 30' N 125o 15' W 51, 52, 61 , 62

Frontier Matters - Geological and Geophysical Activities

  1. Frontier activities for October 2006
    No new applications for geological, geophysical or geotechnical operation authorization were received in October.
  2. Frontier activities for November 2006
    No new applications for geological, geophysical or geotechnical operation authorization were received in November.
  3. Frontier activities for December 2006
    Four (4) new applications for a geological, geophysical or geotechnical operation authorization were received in December.

Outstanding applications are being reviewed.

Frontier Matters - Drilling

  1. Frontier activities for October 2006
    No new application was received in October under section 5(1)(b) of the Canada Oil and Gas Operations Act.
  2. Frontier activities for November 2006
    One (1) new application was received in November under section 5(1)(b) of the Canada Oil and Gas Operations Act.
  3. Frontier activities for December 2006
    Eight (8) new applications were received in December under section 5(1)(b) of the Canada Oil and Gas Operations Act.

Outstanding applications are being reviewed.

Traffic, Tolls and Tariffs Matters

Matters Completed

1. Westcoast Energy Inc. carrying on business as Duke Energy Gas Transmission (Westcoast) - Application for Firm Service Relocation (Files OF-Tolls-Grop1-W102-2006-02 01 and ATT-TC-WEI 17)

On 24 October 2006, the Board approved Westcoast's proposed policy for permanent firm service relocation as applied for and also decided that the appropriate level of consideration for the PCOG firm service relocation will be either a one-year term extension or the relocation service fee.

2. EnCana Oil & Gas Co. Ltd. on behalf of the EnCana Oil & Gas Partnership (EnCana) - Requests to extend the expiry date of Order XG-E126-37-2005 (File OF-Fac-Gas-E126-2005-02 02)

3. Kinder Morgan Canada Inc. on behalf of Terasen Pipelines (Trans Mountain) Inc. (Terasen) (File OF-Tolls-Group1-T099-2006-03001)

On 19 October 2006, the Board received an application from Terasen requesting the approval of its 2006-2010 incentive toll Settlement (2000 ITS) and final tolls for 2006.

4. TransCanada PipeLines Limited (TransCanada) - Addition of Montreal East as New Delivery Point on the Mainline System (File OF-Tolls-Group1-T211-2006-07 01)

On 5 October 2006, TransCanada filed an application with the Board requesting approval to add the Montreal East delivery point to the Société en commandite Gaz Métro Eastern Delivery Area

5. Enbridge Pipelines Inc. (Enbridge) - Application for New Depreciation Rates (File OF-Tolls-Group1-2005-05 01)

On 10 November 2006, Enbridge applied for approval of new depreciation rates. Interested parties were invited to provide comments by 5 December 2006. A decision is pending.

6. TransCanada PipeLines Limited (TransCanada) - Application for Approval of Mainline Interim Tolls effective 1 January 2007

On 14 November 2006, TransCanada requested the approval of interim tolls for service on its Mainline gas transmission system. The Board approved the request on 24 November 2006.

7. Pengrowth Corporation and Murphy Oil Company Ltd. - Sale of the Cactus Bodo Pipeline (File OF-Fac-Gas-P113-2006-01 01)

On 12 December 2006, the Board approved an application regarding the name change and transfer of the pipeline from Murphy Oil Company Ltd. to Pengrowth Corporation. In its decision, the Board also noted that for administrative purposes, Pengrowth Corporation will be regulated as a Group 2 company.

8. Trans Québec & Maritimes Pipeline Inc. (TQM) - 2007 Interim Tolls Application (File OF-Tolls-Group1-T201-2006-02 01

On 30 November 2006, TQM submitted a request to have the 2006 final tolls declared as interim tolls effective 1 January 2007. The request was granted on 7 December 2006.

9. TransCanada PipeLines Limited (TransCanada) B.C. System - Interim Rates and Charges (File OF-Tolls-Group1-2006-01 01)

On 1 December 2006, TransCanada filed a letter proposing that the 2006 final rates and charges be continued as interim effective 1 January 2007. The interim tolls were approved by the Board on 19 December 2006.

10. Westcoast Energy Inc. (Westcoast) - Application for 2007 Interim (File OF-Tolls-Group1-2006-04 01)

On 14 December 2006, Westcoast submitted an application requesting approval of the 2007 Interim Tolls for Transmission effective 1 January 2007. The Board notes that the application is supported by the unopposed Toll and Tariff Task Force (TTTF).

Appeal

Appeal Pending

1. Flint Hill Resources - Application for Leave to Appeal - RH-1-2005

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.

Administrative Matters

Scheduled Energy Market Assessment for 2006

Short-term Canadian Natural Gas Deliverability 2006-2008

On 26 October 2006, the NEB released a report in which it examines the factors affecting Canadian natural gas production, and presents an outlook for deliverability to the end of 2008. Natural gas production in Canada comes mainly from the Western Canada Sedimentary Basin (WCSB), with some additional production from Atlantic Canada.

Winter Energy Outlook

On 31 October 2006, the NEB hosted a Winter Energy Outlook briefing intended for the media. This briefing marks the second Energy Outlook hosted by the NEB; a Summer Energy Outlook was held in June 2006. Information on the key messages and the presentation are available on the NEB's Web site.

Scheduled Energy Market Assessment for 2007

Scheduled publications for 2007 will include the 2006 Energy Overview in May; the Natural Gas Short Term Deliverability in September; and the Energy Futures in November.

Profile

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
National Energy Board
444 Seventh Avenue SW
Calgary, Alberta T2P 0X8
Telephone: 403-292-4800
Telephone toll free:
1-800-899-1265
Telecopier: 403-292-5503
Telecopier toll free :
1-877-288-8803

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
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Date Modified:
2012-02-03