ARCHIVED - Letter of 18 June 2013 and Deactivation of Knappen (Border) Gas Pipeline

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Letter of 18 June 2013 and Deactivation of Knappen (Border) Gas Pipeline [PDF 59 KB]

File OF-Surv-Land-D081 01
2 August 2013

Mr. Michael Siemer
President
DR Four Beat Energy Corporation
17401 SE County Road 475
Summerfield, FL  34491
Email catsiemer@aol.com
Mr. Steve Minotakis
Chief Financial Officer
DR Four Beat Energy Corporation
c/o ATB Solutions
P.O. Box 1124
Elfers, FL USA 34680
Facsimile 727-255-5107

Dear Mr. Siemen and Mr. Minotakis:

Letter of 18 June 2013 and Deactivation of Knappen (Border) Gas Pipeline

The National Energy Board (Board) acknowledges the letter from DR Four Beat of 18 June 2013 requesting an extension to the 17 June 2013 deadline for deactivation of the pipeline as specified in the Board letter of 3 June 2013. In this letter it was indicated the deactivation would be completed by 25 Jun  2013.

The date proposed by DR Four Beat has passed and the Board has confirmed the necessary work for deactivation has not yet been contracted. Accordingly, the request for an extension to the deadline is denied.

DR Four Beat has had ample opportunity to achieve compliance with Order SG-D081-01-2013 (the Order). The Board expects DR Four Beat's pipeline and related facilities to be maintained and operated in a manner that protects the public and the environment. To date, DR Four Beat has not demonstrated to the Board that it has the capacity to operate and maintain the Knappen Pipeline in this manner. DR Four Beat has also shown a consistent lack of regard for Board direction and regulations.

In light of this, operation of the Knappen Pipeline will remain suspended. The Board will now register the Order in the Federal Court of Canada. The Board will then consider further enforcement actions, which may include, but are not limited to: pursuit of the Federal Court's enforcement and contempt provisions, as well as the potential revocation of the authorization to operate this pipeline. The Board notes that DR Four Beat's non-compliances also constitute a number of violations under the Administrative Monetary Penalties Regulations. Violations under these regulations carry a maximum penalty for a company of $100,000 for each violation, each day that a violation continues being a separate violation, with no limit on the number of violations that can be penalized.

The Board will continue to escalate enforcement actions until compliance is met.

If you have any questions, please contact Scott Pepper at 403-221-3432, (scott.pepper@neb-one.gc.ca).

Yours truly,

Sheri Young
Secretary of the Board

c.c. Mr. Chris Hoidal, Director, Western Region, PHMSA Pipeline Safety,
Facsimile 720-963-3161

Mr. Huy V. Nguyen, PHMSA Pipeline Safety, Facsimile 720-963-3161

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