NEB Approves Trans Mountain Toll Methodology for Proposed Expanded System

abarrelfullabarrelfull wrote on 19 May 2013 07:50
Tags: canada kinder-morgan n-america pipeline

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The National Energy Board (NEB or Board) today approved the application by Trans Mountain Pipeline ULC (Trans Mountain) under Part IV of the NEB Act for the toll methodology that would be implemented on the proposed Trans Mountain expanded system, if the system is eventually expanded.

After considering the entirety of the record, the Board finds, on balance, that the toll methodology as proposed by Trans Mountain will produce tolls that will be just, reasonable and not unjustly discriminatory, pursuant to Part IV of the National Energy Board Act (NEB Act). The Board’s reasons can be found in its Reasons for Decision at

Among the reasons for its decision, the Board finds that the Open Season and negotiation process conducted by Trans Mountain was fair and transparent. The Board’s view is that the appropriateness of the Open Season, the presence of alternate sources of transportation, and the Board’s mandatory review of the toll methodology mitigated concerns of parties related to Trans Mountain’s potential dominant position in toll negotiations with shippers.

The Board's of the view that the proposed allocation of capacity between firm service and uncommitted service, and the proposed allocation of uncommitted capacity between dock and land destinations, are appropriate. As a result, the Board finds that Trans Mountain would satisfy its common carrier obligations.

The Board noted in its decision that it expects regulated companies to invest the resources required for safe operations, environmental protection and full regulatory compliance at all times. Trans Mountain is expected to provide sufficient planning and resources to deliver on its pipeline safety commitments now and during the operation of any expanded system.

The Toll Order and specified relief is contingent on the expanded system being approved under Part III of the NEB Act and will come into effect if and when this expanded system is placed into service.

This application did not seek Board approval to construct the expanded system. The NEB does not currently have a Part III facilities expansion application before it from Trans Mountain regarding the future planned expansion of the Trans Mountain pipeline system.

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