Rainbow

Rainbow

Tuesday, February 2, 2010

NEB Issues Hearing Order for Enbridge Line 9 Tolls

The National Energy Board has issued its Hearing Order RH-1-2010 for an application by Enbridge for approval of its tolls and tariffs on its No. 9 Line through Ontario. When this application was initially made a few years ago, the NEB raised the issue of "negative salvage value" of the pipeline, questioning whether the future cost of abandonment of the pipeline should be included in the calculation of tolls currently charged to the line's customers (the companies shipping oil through the line) so as to cover off the expected negative value of the line when abandoned (i.e. the cost of remediation, etc. would far outweigh any salvage value for the pipe). At that time, Enbridge simply withdrew its application for final approval of its tolls and avoided the issue.

Now the Line 9 tolls issue is back before the Board. The Ontario Pipeline Landowners Association (OPLA) has already written to the Board to suggest that the negative salvage issue be put back on the table. In its Hearing Order, the NEB says that it will consider this option once it has set its list of intervenors.

Read the Hearing Order at:
https://www.neb-one.gc.ca/ll-eng/livelink.exe?func=ll&objId=593231&objAction=browse