2022–23 Annual Report of the Commission of the Canada Energy Regulator – Appendix C: Summary of Released Commission Decisions, Recommendations and In Progress Hearing Applications
The Commission adjudicates a myriad of matters under the CER Act. These range from smaller facilities applications, such as those assessed under section 214 of the CER Act, abandonment of facilities that are no longer required, land matters complaints, compensation matters and large-scale pipeline projects assessed under section 183 of the CER Act, to decisions on shipper complaints, company tolls hearings, Abandonment Costs Estimates and section 248 electricity permits and section 261 electricity certificates. All these processes require decisions to be made in the public interest, with engagement with Indigenous Peoples and stakeholders, and are important to keeping Canada’s energy infrastructure safe and competitive.
2022–23 Commission Decisions and Recommendations
Decision Reports and Recommendations are the result of larger, more formal proceedings (such as applications under section 183 of the CER Act, tolls and tariff complaints, etc.). Applicable decisions issued by the Commission from 1 April 2022 to 31 March 2023 include the following:
Tolls and Tariffs Decisions:
CNOOC Marketing Canada application for access to connection facilities at the Trans Mountain Edmonton Terminal on reasonable terms
Decision: The Commission directed Pembina to consent to the receipt, transportation and delivery of oil offered by CNOOC on the connection facilities if operationally feasible and also directed that Pembina and CNOOC negotiate in good faith to determine reasonable terms for such connectivity. Further, the Commission determined that additional clarity in Trans Mountain’s tariff would be appropriate and directed Trans Mountain to amend its tariff to clarify its nomination verification process at the Edmonton Terminal (Parts 1 and 3, subsections 32, 34, 226, 235 and 239 of the CER Act).
Background: CNOOC Marketing Canada (CNOOC) application dated 14 April 2022 in respect of PKM Canada North 40 Limited Partnership (Pembina) for access to Connection Facilities at the Trans Mountain Pipeline ULC (Trans Mountain) Edmonton Terminal on reasonable terms.
CNOOC application dated 14 April 2022 in respect of Pembina for access to Connection Facilities at the Trans Mountain Edmonton Terminal on reasonable terms.
Hearing Order number: RH-001-2022
The Commission released its Reasons for Decision on 17 January 2023
REGDOCS File number: [Filing C22856]
Panel of Commissioners: Stephania Luciuk (Presiding), Mark Watton, Mélanie Chartier, Trena Grimoldby (Alternate)
Complaints by Phillips 66 Canada Ltd. and Cenovus Energy Inc. regarding Keystone’s proposed 2020 and 2021 Tolls
Decision: The Commission found that tolls resulting from proper interpretation of Keystone’s original Transportation Service Agreements (TSAs) would be just and reasonable; a departure from these TSAs was not warranted. The Commission also found that some costs for drag reducing agents (DRA) can be considered a cost of increasing or expanding the Keystone system’s nominal capacity, and not all DRA commodity expense is recoverable in Variable Tolls under the TSAs. The Commission also found that some, but not all, capital costs are recoverable in Variable Tolls. As part of Phase 1 of the proceeding, Keystone was directed to remove certain costs and refile its 2020 and 2021 tolls. Phase 2 of the proceedings will consider 2022 and later tolls after hearing comments from Keystone and interested persons.
Background: Phillips 66 Canada Ltd. and Cenovus Energy Inc. filed a complaint regarding Keystone’s 2020 and 2021 Variable Tolls. The complaint included the issue of whether the proposed tolls were calculated in accordance with the terms of the TSAs. The complainants opposed Keystone’s proposed recovery of certain costs in Variable Tolls, notably any expenses for DRA and any ongoing capital costs.
Hearing Order number: RH-005-2022
The Commission released its decision and order on 14 December 2022
Order number: AO-001-TO-005-2022
REGDOCS File number: [Filing C22525]
Panel of Commissioners: Trena Grimoldby (Presiding), Wilma Jacknife, Stephania Luciuk, Mélanie Chartier (Alternate)
Administrative Monetary Penalties:
Request for Review of AMP-001-2022
Decision: The majority of the Commission determined that Trans Mountain committed the violation, and the amount of the penalty for the violation was not determined in accordance with the Administrative Monetary Penalties Regulations. The amount was corrected to reflect a gravity value of -5, resulting in a penalty of $4,000. The dissent would not have upheld the violation.
Background: On 24 February 2022, the Administrative Monetary Penalties Officer issued NOV AMP-001-2022 pursuant to section 125 of the CER Act. The NOV stated that Trans Mountain failed to establish, develop, implement, maintain, and document processes as required under paragraphs 6.5(1)(k) and 6.5(1)(q) of the Canadian Energy Regulator Onshore Pipeline Regulations. The penalty amount imposed in the NOV was $88,000.
On 22 March 2022, Trans Mountain requested that the Commission review both the penalty amount and the facts of the violation.
Hearing Order number: MH-001-2022
Decision release: 22 December 2022
Panel of Commissioners: Kathy Penney (Presiding), Stephania Luciuk, Mélanie Chartier, Wilma Jacknife (Alternate)
Infrastructure:
NOVA Gas Transmission Ltd. Application for the NGTL West Path Delivery 2023 Project
Recommendation: Having regard to all considerations that appear to be directly related and relevant to the Application, the Commission found that the Project is and will be required by the present and future public convenience and necessity and recommended that the GIC direct the CER to issue a certificate with conditions under paragraph 186(1)(a)(i) of the CER Act, for the construction and operation of the Project.
Background: NOVA Gas Transmission Ltd. (NGTL) applied pursuant to section 183 to construct and operate approximately 39 kilometres of natural gas pipeline loop in three pipeline sections. The Project would expand the existing NGTL System to meet incremental delivery requirements at the Alberta/British Columbia Border Export Point and would satisfy the market demand to connect the Western Canada Sedimentary Basin supply with long-term markets. The Project is located wholly in Alberta and runs south of Calgary between Turner Valley and Lundbreck.
Hearing Order number: GH-002-2020
The Commission released its Recommendation Report on 24 May 2022. The GIC issued Order in Council P.C. 2022-1248 on 25 November 2022, directing the CER to issue a certificate for the Project.
Certificate number: GC-134
REGDOCS File number: [Filing C19229]
Panel of Commissioners: Damien Côté (Presiding), Trena Grimoldby, Mark Watton, Stephania Luciuk (Alternate)
ITC Lake Erie Connector LLC (ITC) Lake Erie Connector International Power Line (Project) 2021 Variance Request to Conditions 2 and 5 of Certificate of Public Convenience and Necessity EC-056 (2021 Variance Application)
Decision: The Commission approved the 2021 Variance Application granting the requested variances to Conditions 2 and 5 of Certificate EC-056 (Part 4, subsections 280(1)(2)(3) CER Act).
Background: ITC filed the variance application to extend the expiration clause in Condition 2 of the Certificate by two years (to 26 June 2024) and to vary Condition 5 of the Certificate to replace “ITC Lake Erie LLC” with “LEC GP Inc. on behalf of Lake Erie LP” as the owner and operator of the Project.
The Commission released its letter decision and order on 25 August 2022.
Order number: AO-002-EC-056
REGDOCS File number: [Filing C20667]
Panel of Commissioners: Mélanie Chartier (Presiding), Wilma Jackknife, Stephania Luciuk, Trena Grimoldby(Alternate)
Exports and Imports:
AltaGas LPG General Partner Inc. on behalf of AltaGas LPG Limited Partnership application for a licence authorizing the export of butane
Decision: The Commission decided, pursuant to section 344 of the CER Act, to issue a 25-year Licence to AltaGas, subject to certain terms and conditions. The issuance of this Licence required the approval of the Minister of Natural Resources. The Minister approved the Licence on 21 September 2022.
344 of the CER Act
Background: On 15 October 2021, AltaGas applied pursuant to section 344 of the CER Act for a Licence to export butane.
The Commission released its letter decision on 23 June 2022. The Licence was issued on 23 September 2022.
Licence: GL-345
REGDOCS File number: [Filing C19687]
Panel of Commissioners: Mark Watton (Presiding), Damien Côté, Mélanie Chartier, Kathy Penney (Alternate)
Ksi Lisims LNG GP Ltd., on behalf of Ksi Lisims LNG Limited Partnership application for a licence to export natural gas in the form of liquefied natural gas
Decision: The Commission decided, pursuant to section 344 of the CER Act, to issue a 40-year Licence to Ksi Lisims LNG, subject to certain terms and conditions. The issuance of this Licence required the approval of the Minister of Natural Resources. The Minister approved the Licence on 15 March 2023.
Background: On 25 April 2022, Ksi Lisims LNG GP Ltd., on behalf of Ksi Lisims LNG Limited Partnership applied pursuant to section 344 of the CER Act, for a Licence to export natural gas in the form of liquefied natural gas.
The Commission released its letter decision on 14 December 2022. The Licence was issued on 15 March 2023.
Licence GL-346
REGDOCS File number: [Filing C22526]
Panel of Commissioners: Trena Grimoldby (Presiding), Stephania Luciuk, Mélanie Chartier, Kathy Penney (Alternate)
Powers of the Commission and Variances:
Kingston Midstream Westspur Limited (Kingston) and Secure Energy Services Inc. (Secure) Joint Submission on Disposition of Kingston’s Review Application and Order MO-020-2021 (Joint Submission)
Decision: The Commission amended Order MO-020-2021 and discontinued review proceedings so that Secure, Kingston, and their affiliates could ensure Secure's access to the Westspur Pipeline in a manner consistent with the intent of the Order.
Terms and conditions of service (Part 3, subsections 225-240 CER Act)
Background: The Commission issued Order MO-020-2021 following its RH-003-2020 hearing in relation to a request for an order to allow Secure to receive crude oil from, and deliver crude oil to, the Westspur Pipeline owned by Kingston. Following a request to review the decision, Secure and Kingston negotiated a solution and filed a corresponding application with the Commission.
The Commission released its letter decision on 22 September 2022.
Order number: AO-001-MO-020-2021
REGDOCS File number: [Filing C21030]
Panel of Commissioners: Stephania Luciuk (Presiding), Trena Grimoldby, Wilma Jacknife, Kathy Penney (Alternate)
In Progress Hearing Applications
The following are applications that were in the process of being assessed by the Commission in 2022–23 that will result in future Decisions or Recommendations:
Tolls and Tariffs
Trans-Northern Pipelines Inc. (“TNPI”) Application for Approval of Incentive Tolls Settlement Agreement
Section: Part 3, sections 225-240 CER Act
Background: TNPI requests an Order or Orders pursuant to Parts 1, 3, and 9 of the CER Act and the 2002 Revised Guidelines for Negotiated Settlements of Traffic, Tolls and Tariffs adopted by the CER, approving the Incentive Tolls Settlement Agreement (ITSA).
Hearing Order number: RH-001-2023
REGDOCS file number: [Filing C22197]
Panel of Commissioners: Kathy Penney (Presiding), Stephania Luciuk, Trena Grimoldby, Mélanie Chartier (Alternate)
Infrastructure
NorthRiver Midstream NEBC Connector GP Inc. NEBC Connector Project
Section: Part 3, section 183 CER Act
Background: NorthRiver Midstream NEBC Connector GP Inc. application pursuant to section 183 of the CER Act to construct and operate two parallel 215 km pipelines from northwest of Wonowon, British Columbia to the Gordondale area of Alberta.
Hearing Order number: OH-001-2022
REGDOCS File number: [Filing C16186]
Panel of Commissioners: Kathy Penney (Presiding), Mark Watton, Wilma Jacknife, Stephania Luciuk (Alternate),Mélanie Chartier (Alternate)
Abandonments:
Westcoast Energy Inc. Pointed Mountain Abandonment Project
Section: Part 3, section 241(1) CER Act
Background: Westcoast application requesting approval for leave to abandon the Pointed Mountain pipeline situated near the British Columbia/Yukon Territory/Northwest Territories border.
Hearing Order number: MH-004-2022
REGDOCS File number: [Filing C17537]
Panel of Commissioners: Mélanie Chartier (Presiding), Wilma Jacknife, Stephania Luciuk, Kathy Penney (Alternate)
Exploration and Production:
Inuvialuit Energy Security Project Ltd. (IESPL) Application for Operations Authorization – Early Site Works and Well Workover
Section: Part 1, paragraph 10 (1)(b) Northwest Territories Oil and Gas Operations Act (OGOA)
Background: IESPL application to conduct early site works (road construction, culvert placement, bridge installation, construction of energy centre pads, installation of adfreeze piles) in relation to the Inuvialuit Energy Securities Project within the Inuvialuit Settlement Region in the Northwest Territories.
Hearing Order number: MH-002-2022
REGDOCS File number: [Filing C19712]
Panel of Commissioners: Mark Watton (Presiding), Kathy Penney, Wilma Jacknife, Stephania Luciuk (Alternate)
- Date modified: