NGTL pipeline system moves to federal jurisdiction

C. Kemm Yates, Q.C. andLisa McDowell

The National Energy Board (the NEB) has granted TransCanada PipeLines Limited's (TransCanada) application to shift regulation of the NOVA Gas Transmission Ltd. system (the Alberta System) from the Alberta Utilities Commission to the NEB. The NEB's GH-5-2008 Decision (the Decision), issued on February 26, 2009, determined that the Alberta System is properly within federal jurisdiction and subject to NEB regulation.  Stikeman Elliott acted for TransCanada.

The Alberta System is an existing natural gas pipeline system consisting of over 23,500 km of pipeline, associated compression and other facilities, located entirely within Alberta. In 2007, it carried over 10 billion cubic feet of natural gas per day, accounting for approximately 66% of natural gas production from Western Canada, or about 16% of the total North American production. Natural gas flowing through the Alberta System moves through connecting pipelines to markets in Western and Central Canada, and the United States West, MidWest and NorthEast.

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