Friday, January 27, 2012
The National Energy Board has posted a "Summary of Group 1 Companies Physical Information Filed", setting out data related to the mode of pipeline abandonment proposed by Group 1 companies (large pipeline systems) that filed cost estimates with the NEB. The chart provided juxtaposes the total km contained in pipeline systems against the km of pipeline that companies propose to remove upon abandonment. The contrast is pretty striking. At least in agricultural areas, companies propose to remove almost no pipe. CAEPLA had proposed that cost estimates should be based on a conservative assumption of 100% removal. Even the NEB had proposed 20% removal as the assumption to be used. The pipeline industry obviously disagreed.