ARCHIVED — Vol. 147, No. 17 — April 27, 2013

ORDERS IN COUNCIL

NATIONAL ENERGY BOARD

NATIONAL ENERGY BOARD ACT

Order — Certificate of Public Convenience and Necessity GC-121 to NOVA Gas Transmission Ltd., for the Chinchaga Section of the Northwest Mainline Komie North Extension

P.C. 2013-379 April 18, 2013

Whereas on October 14, 2011, NOVA Gas Transmission Ltd. (NGTL) applied to the National Energy Board (Board) for a Certificate of Public Convenience and Necessity for the Northwest Mainline Komie North Extension (Project) under sections 52 and 58 of Part Ⅲ of the National Energy Board Act. The application was to extend the Komie North Section, including the Fortune Creek meter station, north of Fort Nelson, in British Columbia, and to construct the Chinchaga Section northwest of Manning, in Alberta;

Whereas the Chinchaga Section of the Project would be an expansion of portions of NGTL’s existing Alberta System in northwestern Alberta. The Chinchaga Section of the Project consists of approximately 33 km of 1 219 mm (48 inch) outside diameter pipe located approximately 76 km northwest of Manning, Alberta, paralleling NGTL’s existing Chinchaga Lateral Loop No. 3 from the existing Chinchaga meter station to a tie-in point at the existing Meikle River compressor station;

Whereas the Board conducted an oral public hearing in Fort Nelson, British Columbia, on October 10 and 11, 2012, and in Calgary, Alberta, from October 15 to 24, 2012;

Whereas the Board considered all evidence on the record pursuant to the requirements of the National Energy Board Act and its responsibilities pursuant to the National Energy Board Act relating to environmental and socio-economic matters;

Whereas the Board considered that NGTL’s Aboriginal engagement program was appropriate given the nature, scope and setting of the project, and is satisfied that all Aboriginal groups potentially affected by the project were provided with sufficient information about the Project and had an opportunity to make their views known to the Board;

Whereas the Board determined that with the implementation of NGTL’s environmental protection procedures and mitigation measures, and with compliance with the Board’s regulatory requirements and proposed conditions, the Project will not likely cause significant adverse environmental effects;

Whereas Certificate of Public Convenience and Necessity GC-121 would include a condition requiring NGTL to file Aboriginal Consultation Reports for five years to inform the Board about its ongoing consultation with Aboriginal groups;

Whereas the Board, in its Report dated January 30, 2013, submitted to the Minister of Natural Resources on January 30, 2013, determined that the section 52 facilities for the Chinchaga Section of the Project will be required by the present and future public convenience and necessity, and recommended that a certificate be issued for the Chinchaga Section subject to the twenty-five conditions contained in Appendix III of its Report;

Whereas the Board has concluded that approval of the Komie North Section of the Project, as proposed, would have negative commercial impacts on other parties and that the need for that Section is uncertain, and recommended that a certificate should not be issued for the Komie North Section;

Whereas the Board has nonetheless made the terms and conditions contained in Appendix IV in relation to the Komie North Section of the Project, as required by section 52 of the National Energy Board Act;

Whereas the Crown record, composed of the National Energy Board Report, the available material and information on the National Energy Board record, and other communications between the Crown and Aboriginal groups outside the National Energy Board process, indicates with regard to the Chinchaga Section of the Project

  • (1) that any potential impact on potential or established aboriginal and treaty rights is likely to be minimal; and
  • (2) that any such impact would be appropriately accommodated by the proponent and through conditions attached to the certificate;

Whereas this Crown record indicates that the Crown’s legal duty to consult and accommodate, where appropriate, has been adequately fulfilled with regard to the Chinchaga Section of the Project;

And whereas, the Governor in Council is therefore of the view that the National Energy Board should be directed to issue a certificate for the Chinchaga portion of the Project only;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to section 54 of the National Energy Board Act, directs the National Energy Board to issue NOVA Gas Transmission Ltd. Certificate of Public Convenience and Necessity GC-121 for the Chinchaga section of the Northwest Mainline Komie North Extension project only, subject to the conditions contained in Appendix III of its Report dated January 30, 2013.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

This Order in Council is required pursuant to sections 52 and 54 (Part Ⅲ) of the National Energy Board Act (the NEB Act) to direct the National Energy Board (Board) to issue a Certificate of Public Convenience and Necessity (Certificate) to NOVA Gas Transmission Ltd. (NGTL) for a part of the pipeline applied for by NGTL.

Objective

On October 14, 2011, NGTL applied to the Board for a Certificate under sections 52 and 58 of Part Ⅲ of the NEB Act to extend the Komie North Section, including the Fortune Creek meter station, north of Fort Nelson, in the province of British Columbia, and to expand the Chinchaga Section northwest of Manning, in the province of Alberta.

The Board recommended that the Governor in Council direct it to issue a Certificate (Certificate GC-121) for a portion of the pipeline applied for by NGTL. The portion of the Project recommended for a Certificate is the Chinchaga Section. The Board did not recommend a Certificate be issued for the Komie North Section of the Project. The Board’s submission is pursuant to sections 52 and 54 of the NEB Act.

Background

The Komie North Section is an extension to the Horn River Mainline and includes approximately 97 km of 914 mm nominal pipe size (NPS 36) outside diameter pipe and related facilities. The route of this section would be from the Horn River Mainline (Cabin Section) at d-64-J/94-P-4 in British Columbia to the proposed Fortune Creek meter station, which would be located at c-55-A/94-O-15.

The Chinchaga Section is a pipeline loop of approximately 33 km of 1 219 mm (NPS 48) pipe and related facilities between interconnections adjacent to both the Chinchaga meter station, located at NE 13-96-5 W6M, and the Meikle River compressor station, located at NE 26-94-2 W6M.

Implications

The Board was of the view that the proposed toll treatment is appropriate for the Chinchaga Section and that the economic feasibility for the Chinchaga Section is acceptable.

The Board concluded that the proposed toll treatment is inappropriate for the Komie North Section and the Board was not persuaded, based on the toll treatment proposed by NGTL, that the Komie North Section is economically feasible. The Board also concluded that approval of the Komie North Section, as proposed, would have negative commercial impacts on other parties and that the need for the Komie North Section is uncertain.

The Board reached a conclusion of Acceptable with regard to the issues it assessed for the Chinchaga Section and for some issues for the Komie North Section. These conclusions were based upon the implementation of the recommended terms and conditions included in the NEB Report, Appendices III, IV, V and VI.

Consultation

The Board held a hearing from October 10 to 11, 2012, in Fort Nelson, in the province of British Columbia, and from October 15 to 24, 2012, in Calgary, in the province of Alberta.

Contact

For more information, please contact

Jeff Labonté
Director General
Petroleum Resources Branch
Natural Resources Canada
Telephone: 613-992-8609

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