National Energy Board approves TransCanada - Keystone Facilities Transfer

Please note that certain documents in this section are available in PDF format only. To inquire about receiving these documents in another format, please contact us. If you do not have PDF viewing software, you can download a free PDF viewer from the Adobe® Web site.

07/06
For release at 2:30 p.m. (MST)
9 February 2007

National Energy Board approves TransCanada - Keystone Facilities Transfer

CALGARY - The National Energy Board (NEB) has approved an application submitted by TransCanada PipeLines Limited (TransCanada) and TransCanada Keystone Pipeline GP Ltd. (Keystone) on 5 June 2006, to transfer certain pipeline facilities from TransCanada to Keystone.

The facilities approved for transfer consist of approximately 860 kilometres (530 miles) of 864 mm (34-inch) outside diameter pipeline of TransCanada's mainline natural gas transmission Line 100-1 between Burstall, Saskatchewan and Carman, Manitoba (Facilities). TransCanada and Keystone indicated in their application that it is Keystone's intention to convert the Facilities from gas transportation service to oil transportation service for use in the proposed Keystone Pipeline if an application for that project is approved by the NEB.

The Board determined that the appropriate test to use to examine this application was the public interest, as opposed to the no harm to gas shippers test, which was proposed by some intervenors.

The NEB also approved TransCanada's request to reduce its Canadian Mainline rate base by the net book value (NBV) of the Facilities. It also approved Keystone's request to include the NBV in the Keystone Pipeline's accounts upon the transfer and to continue including it in its accounts if the Keystone Pipeline is placed in oil transmission service.

The NEB determined the application to be in the public interest, recognizing that the Facilities will not be transferred until and unless Keystone receives additional approval from the NEB to construct and operate the Canadian portion of the proposed Keystone Pipeline. On 12 December 2006, Keystone filed an application for the approvals required for the proposed Keystone Pipeline with the Board.

The NEB considered the application at an oral public hearing held from 23 October 2006 to 14 November 2007 in Calgary, Alberta.

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.

- 30 -

For further information:

Stacey Squires
Communications Officer
National Energy Board
Telephone: 403-299-3122
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5503
Telecopier (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663

Related documents:

• Reasons for Decision MH-1-2006 [Filing A14748]
• All Regulatory Documents under: Facilities, Gas, TransCanada Keystone Pipeline GP Ltd., 2006-06-05 - Leave to transfer Certain Pipeline Facilities comprising part of the TCPL Mainline System from TransCanada Pipelines Limited (MH-1-2006) [Folder 410106]

For a copy of documents:

National Energy Board
library@neb-one.gc.ca
Ground Floor
444 Seventh Avenue SW
Calgary, Alberta
T2P 0X8
Telephone: 403-299-3561
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5576
Telecopier (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663