NEB issues recommendation regarding the Northwest Mainline Komie North Extension Project

Thursday, Jan 31, 2013

CALGARY, Jan. 30, 2013 /CNW/ - Today, the National Energy Board (NEB) recommended partial approval to the Governor in Council (GiC) for the Northwest Mainline Komie North Extension Project submitted by NOVA Gas Transmission Ltd (NGTL).

In its application, NGTL proposed to build a $333.2 million project consisting of two separate pipeline segments. The NEB recommended approval for the Chinchaga section of the Project, which is a 33-kilometre pipeline loop running between the Chinchaga meter station and the Meikle River compressor station located about 76 kilometres northwest of Manning, Alberta.

The NEB did not recommend approval for the Komie North section. This section of the project is an extension to the Horn River Mainline and includes approximately 97 kilometres of pipe, which is proposed to be located 110 kilometres north of Fort Nelson, British Columbia.

The List of Issues for the hearing included the appropriateness of NGTL's
proposed toll treatment for the application. The Board concluded that the proposed toll treatment for the Project application is appropriate for the Chinchaga section, but inappropriate for the Komie North section. NGTL's evidence did not provide any alternate toll treatment for the Board to consider.

Given the Board's conclusion with respect to the toll treatment for the Komie North section, the Board was not persuaded that the Komie North section was economically feasible. The Board also concluded that approval of the Komie North section, as proposed, would have negative commercial impacts on other parties.

With regards to the design of the Komie North section, the Board found that NGTL did not establish the need for a pipeline of the proposed size to go to Fortune Creek at this time. The Board concluded that the Komie North Section is premature.

On July 6, 2012, portions of the Jobs, Growth and Long-term Prosperity Act came into force, including legislative changes to the NEB Act. This is the first application following the legislative changes where the NEB will be submitting a report with its recommendation to the GiC.

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.

This news release is available on the NEB's Internet site at www.neb-one.gc.caunder What's New!

SOURCE National Energy Board

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