Rainbow

Rainbow

Wednesday, March 17, 2010

National Energy Board signals that LMCI is the only place to deal with abandonment funding

The National Energy Board (NEB) has issued a letter regarding the Tolls and Tariffs application made by Enbridge Pipelines Inc. for its Line 9 pipeline (located in Ontario).  The application for approval of tolls was originally brought a few years ago by Enbridge, but was dropped when the NEB voiced its intention to deal with the issue of pipeline abandonment funding as part of its hearing.  Following that development, the NEB commenced its Land Matters Consultation Initiative (LMCI) which includes Stream 3 dealing with post-abandonment funding.

Recently, Enbridge has ressurrected its Line 9 tolls application and in a letter issued yesterday, the NEB has confirmed that it will not deal with the abandonment funding issue in its hearing of the application:
In its letter to Enbridge accompanying the Hearing Order, dated 29 January 2010, the Board noted that it would consider whether to add the issue of funding for abandonment after interventions were filed. The Board has now considered the matter and is of the view that funding for abandonment is being appropriately considered through the on-going process that was laid out in the LMCI Stream 3 (RH-2-2008) Reasons for Decision. Accordingly, the issue of funding for abandonment will not be included in the List of Issues to the RH-1-2010 proceeding.
As noted in yesterday's posts on this blog, landowner participation in the LMCI continues to be at the landowner's own expense (as would landowner participation in the Line 9 tolls hearing).

Read the Board's letter at: RH-1-2010 Hearing Location, List of Parties and List of Issues