2022–23 Annual Report of the Commission of the Canada Energy Regulator – Appendix J: Financial Resources Requirements
The CER Act requires companies operating oil and gas pipelines to set aside financial resources to cover the costs of any unintended or uncontrolled release from a pipeline, such as a spill. The financial resources sections of the CER Act reinforce the “polluter pays” principle. Companies are required to maintain financial resources that, at a minimum, match the absolute liability limit applicable to the company. The Pipeline Financial Requirements Regulations (Regulations), which came into force in July 2019, set out absolute liability limits for CER-regulated companies. These absolute liability limits range from $200 million to $1 billion for oil pipelines, $10 million to $200 million for gas pipelines, and $5 to $10 million for other commodity pipelines, depending on factors such as pipeline capacity, diameter, and commodity transported.
The Regulations outline the specific types of financial instruments that the Commission may order companies to maintain, as well as the minimum portion of the financial resources required to be readily accessible to the company. The financial resource types prescribed by the Regulations are as follows:
- Insurance policy;
- Escrow agreement;
- Letter of credit;
- Line of credit;
- Participation in a pooled fund, as referred to in subsection 139(1) of the CER Act;
- Parent company guarantees;
- Surety bond or pledge agreement, or indemnity bond or suretyship agreement;
- Cash or cash equivalents.
The Regulations also state that only authorized in-service pipelines will be considered in the determination of a company’s absolute liability class. Therefore, those pipelines that are not in service are currently exempt from filing an absolute liability limit and financial resources plan.
To ensure compliance with the Regulations, the CER developed filing guidance, and required all companies to file financial resources plans for evaluation. These plans set out the financial resources each company has available to respond to spills or incidents and demonstrate how companies meet the financial resources requirements in the CER Act and Regulations. If the plans are insufficient, the Commission has the authority to order companies to maintain additional financial resources.CER Regulated Companies Financial Resource Plan Evaluation Status:
Company |
Class |
Absolute Liability Limit (ALL) |
Status of Financial Resource Plan Filing |
|---|---|---|---|
1057533 Alberta Ltd. |
Oil Class 3 |
$200,000,000 |
Conditionally approved |
2193914 Canada Limited |
Gas Class 1 |
$200,000,000 |
Approved |
2670568 Ontario Limited (formerly Resolute FP Ltd) |
Commodity class 1 |
$10,000,000 |
Not Applicable |
6720471 Canada Ltd. |
Gas Class 4 |
$10,000,000 |
Approved |
Alliance Pipeline Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
Altagas Holdings Inc. |
Gas Class 2 |
$50,000,000 |
Not Applicable |
ARC Resources Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Astara |
Gas Class 2 |
$50,000,000 |
Under Review |
Aurora Pipeline Company Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
Bellatrix Exploration Ltd. |
Not Applicable |
||
Bonavista Energy Corp. |
Not Applicable |
||
Bow River Energy Limited |
Not Applicable |
||
Campus Energy Partners Operations Inc. (formerly 2133151 Alberta Ltd.) |
Gas Class 1 |
$200,000,000 |
Under Review |
Canada Border Services Agency |
Gas Class 4 |
$10,000,000 |
Approved |
Canadian Montana Pipeline Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Canadian Natural Resources Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
Canlin Energy Corporation |
Not Applicable |
||
Cenovus Energy Inc. |
Gas Class 1 |
$200,000,000 |
Approved |
Centra Transmission Holdings Inc. |
Gas Class 2 |
$50,000,000 |
Approved |
Champion Pipe Line Corporation Limited |
Gas Class 2 |
$50,000,000 |
Approved |
Chief Mountain Gas Co-op |
Gas Class 4 |
$10,000,000 |
Approved |
Commandité gestion energy Windmill DREAM Québec inc. |
Not Applicable |
||
County of Vermillion River No. 24 Gas Utility |
Gas Class 4 |
$10,000,000 |
Approved |
Crescent Point Energy Corp. |
Gas Class 3 |
$50,000,000 |
Approved |
Delphi Energy Corp. |
Not Applicable |
||
Emera Brunswick Pipeline Company Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
Enbridge Bakken Pipeline Company Inc. |
Oil Class 2 |
$300,000,000 |
Approved |
Enbridge Gas Inc. |
Gas Class 2 |
$50,000,000 |
Approved |
Enbridge Pipelines (NW) Inc. |
Oil Class 3 |
$200,000,000 |
Approved |
Enbridge Pipelines Inc |
Oil Class 1 |
$ 1,000,000,000 |
Approved |
Enbridge Southern Lights GP Inc. on behalf of Enbridge Southern Lights LP |
Oil Class 2 |
$300,000,000 |
Approved |
Enercapita Energy Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Express Pipeline Ltd. |
Oil Class 1 |
$ 1,000,000,000 |
Approved |
ExxonMobil Canada Ltd. |
Not Applicable |
||
Foothills Pipe Line Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
FortisBC Huntingdon Inc. |
Gas Class 1 |
$200,000,000 |
Under Review |
Forty Mile Gas Co-op |
Not Applicable |
||
Gear Energy Ltd. |
Gas Class 3 |
$50,000,000 |
Under Review |
Genesis Pipeline Canada Ltd. |
Oil Class 2 |
$300,000,000 |
Conditionally approved |
Glencoe Resources Ltd. |
Not Applicable |
||
Great Lakes Pipeline Canada Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
Husky Oil Operations Limited |
Oil Class 2 |
$300,000,000 |
Approved |
ISH Energy Ltd. |
Oil Class 3 |
$200,000,000 |
Approved |
Kinder Morgan Utopia Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
Kingston Midstream Westpur Limited (formerly TEML Westspur Pipelines Limited) |
Oil Class 2 |
$300,000,000 |
Conditionally approved |
LBX Pipelines Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
Leucrotta Exploration Inc. |
Not Applicable |
||
Lignite Pipeline Canada Corp (used to be ONEOK) |
Gas Class 2 |
$50,000,000 |
Conditionally approved |
Many Islands Pipe Lines (Canada) Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
Maritimes & Northeast Pipeline Management Limited |
Gas Class 1 |
$200,000,000 |
Approved |
Milk River Pipeline Ltd. |
Oil Class 2 |
$300,000,000 |
Under Review |
Minell Pipeline Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Montreal Pipe Line Limited |
Oil Class 2 |
$300,000,000 |
Approved |
Niagara Gas Transmission Limited |
Gas Class 1 |
$200,000,000 |
Approved |
NorthRiver Midstream Canada Pipelines Inc. |
Gas Class 2 |
$50,000,000 |
Conditionally approved |
NorthRiver Midstream G and P Canada Pipelines Inc. |
Gas Class 1 |
$200,000,000 |
Conditionally approved |
NOVA Gas Transmission Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
Obsidian Energy |
Gas Class 2 |
$50,000,000 |
Approved |
Omimex Canada Ltd. |
0 |
$– |
Not Applicable |
Ovintiv Canada ULC |
Gas Class 2 |
$50,000,000 |
Approved |
Pembina Energy Services Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Pembina Prairie Facilities Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Pieridae Alberta Production Ltd. |
Gas Class 2 |
$50,000,000 |
Under Review |
Pine Cliff Energy Ltd. & Pine Cliff Border Pipelines Ltd. |
Gas Class 2 |
$50,000,000 |
Under Review |
Pipestone Energy Corp. |
Not Applicable |
||
PKM Cochin ULC |
Oil Class 2 |
$300,000,000 |
Approved |
Plains Midstream Canada ULC |
Oil Class 1 |
$ 1,000,000,000 |
Approved |
Portal Municipal Gas Company Canada Inc. c/o SaskEnergy |
Gas Class 4 |
$10,000,000 |
Conditionally approved |
Pouce Coupe Pipe Line Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
SCL Pipeline Inc. |
Gas Class 2 |
$50,000,000 |
Approved |
Shiha Energy Transmission Ltd. |
Not Applicable |
||
Souris Valley Pipeline Limited |
CO2 or Water Class |
$5,000,000 |
Approved |
St. Clair Management Inc. |
Gas Class 1 |
$200,000,000 |
Approved |
Steel Reef Pipelines Canada Corp. |
Gas Class 2 |
$50,000,000 |
Conditionally approved |
Strategic Oil & Gas (Strategic Transmission) |
Not Applicable |
||
Strathcona Resources Ltd. |
Gas Class 3 |
$50,000,000 |
Under Review |
Sunoco Pipeline LP |
Gas Class 2 |
$50,000,000 |
Approved |
Surge Energy Inc. |
Gas Class 3 |
$50,000,000 |
Approved |
Tamarack Acquisition Corp. |
Not Applicable |
||
TAQA North Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Tidewater Midstream & Infrastructure Ltd. |
Gas Class 2 |
$50,000,000 |
Under Review |
TransCanada Pipelines Limited |
Gas Class 1 |
$200,000,000 |
Approved |
TransCanada Keystone Pipeline GP Ltd. (Keystone) |
Oil Class 1 |
$ 1,000,000,000 |
Approved |
Trans Mountain Pipeline ULC |
Oil Class 1 |
$ 1,000,000,000 |
Approved |
Trans-Northern Pipelines Inc. |
Oil Class 2 |
$300,000,000 |
Under Review |
Trans Quebec & Maritimes Pipeline Inc. |
Gas Class 1 |
$200,000,000 |
Approved |
Tundra Oil & Gas Limited |
Oil Class 3 |
$200,000,000 |
Under Review |
Twin Rivers Paper Company Inc. |
Other Commodity Class 1 |
$10,000,000 |
Under Review |
Vector Pipeline Limited |
Gas Class 1 |
$200,000,000 |
Approved |
Veresen Energy Pipeline Inc. |
Gas Class 1 |
$200,000,000 |
Conditionally approved |
Veresen NGL Pipeline Inc. |
Gas Class 2 |
$50,000,000 |
Approved |
Vermillion Energy Inc. |
Not Applicable |
||
Westcoast Energy Inc. |
Gas Class 1 |
$200,000,000 |
Approved |
Westover Express Pipeline Ltd. (used to be Enbridge Line 10) |
Oil Class 2 |
$300,000,000 |
Approved |
Whitecap Resources Inc. |
Oil Class 2 |
$300,000,000 |
Approved |
Yoho Resources Inc./SanLing |
Not Applicable |
||
Zibi Community Utility LP |
CO2 or Water Class |
$5,000,000 |
Approved |
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