2021–22 Annual Report of the Commission of the Canada Energy Regulator – Appendix G: Abandonment Funding
All pipeline companies are required to follow the Canadian Energy Regulator Onshore Pipeline Regulations, which include a systematic approach to pipeline management, including abandonment. The Commission of the Canada Energy Regulator (the Commission) adjudicates applications to abandon pipelines (section 241 of the Canadian Energy Regulator Act (CER Act)) and ensures that companies have sufficient funds to pay for the eventual abandonment of pipelines (section 242 of the CER Act).
Companies’ management includes the proactive management of their obligations relating to the set aside and collection of abandonment funds. The Commission reviews and assesses companies’ abandonment cost estimates, which must be submitted every five years, and ensures that financial instruments are in place for those funds.
Canadians can be confident that the resources required to properly abandon CER-regulated pipelines have been, and continue to be, assessed, and set aside for that purpose.
Companies using Letters of Credit or Surety Bonds
Table G.1 lists all CER-regulated companies that are using a Letter of Credit or Surety Bond to fund their abandonment cost estimate and the amount of each associated financial instrument. The Amount of Instrument column reflects the latest abandonment cost estimates in 2018 dollars.
Table G.1
Company |
Financial Instrument |
Amount of Financial Instrument |
|---|---|---|
1057533 Alberta Ltd. |
Letter of Credit |
855,173 |
2670568 Ontario Limited |
Surety Bond |
171,694 |
6720471 Canada Ltd. |
Letter of Credit |
45,000 |
Altagas Holdings Inc. for and on behalf of Altagas Pipeline Partnership |
Surety Bond |
1,875,849 |
ARC Resources Ltd. |
Letter of Credit |
1,893,204 |
Bonavista Energy Corporation |
Letter of Credit |
18,185 |
Caltex Resources Ltd. |
Letter of Credit |
291,292 |
Campus Energy Partners |
Surety Bond |
27,234,710 |
Canadian Natural Resources Limited |
Surety Bond |
909,876 |
Canadian-Montana Pipe Line Company |
Surety Bond |
300,000 |
Canlin Energy Corporation |
Letter of Credit |
101,557 |
Cenovus Energy Inc. |
Letter of Credit |
1,845,917 |
Champion Pipe Line Corporation Limited |
Letter of Credit |
14,009,422 |
Cona Resources |
Letter of Credit |
1,320,396 |
Crescent Point Energy Corp. |
Letter of Credit |
346,878 |
Enercapita Energy Ltd. |
Letter of Credit |
1,527,861 |
ExxonMobil Canada Properties |
Letter of Credit |
7,985,252 |
FortisBC Huntingdon Inc. |
Letter of Credit |
115,754 |
Gear Energy Ltd. |
Letter of Credit |
217,155 |
Glenogle Energy Inc. |
Letter of Credit |
80,156 |
Great Lakes Pipeline Canada Ltd. |
Letter of Credit |
12,586,000 |
Husky Oil Operations Limited |
Letter of Credit |
8,387,654 |
Imperial Oil Resources Limited |
Letter of Credit |
1,414,710 |
ISH Energy Ltd. |
Letter of Credit |
3,046,923 |
Kiwetinohk Energy Corp. |
Letter of Credit |
362,000 |
LBX Pipeline Ltd. |
Letter of Credit |
3,198,336 |
Leucrotta Exploration Inc. |
Letter of Credit |
241,490 |
Lignite Pipeline Canada Corp. |
Surety Bond |
1,426,320 |
NorthRiver Midstream G and P Canada Pipelines Ltd. |
Letter of Credit |
1,462,274 |
Obsidian Energy |
Letter of Credit |
922,150 |
Omimex Canada, Ltd. |
Letter of Credit |
132,950 |
OVINTIV Canada ULC |
Surety Bond |
2,063,970 |
OVINTIV Canada ULC |
Letter of Credit |
11,700,000 |
Pembina Energy Services Inc. |
Letter of Credit |
6,004,973 |
Pembina Prairie Facilities Ltd. |
Letter of Credit |
31,102,297 |
Pieridae Alberta Production Ltd. |
Letter of Credit |
332,477 |
Pine Cliff Border Pipelines Limited |
Letter of Credit |
704,000 |
Pine Cliff Energy Ltd. |
Letter of Credit |
127,250 |
Pipestone Energy Corp. |
Letter of Credit |
11,600 |
Pouce Coupé Pipe Line Ltd. |
Letter of Credit |
172,343 |
Prospera Energy Inc. (Note: 2019 dollars) |
Letter of Credit |
90,726 |
Shell Canada Energy |
Letter of Credit |
4,920,047 |
Shell Canada Products Limited |
Letter of Credit |
259,288 |
Shiha Energy Transmission Ltd. |
Letter of Credit |
192,026 |
Steel Reef Pipelines Canada Corp. |
Surety Bond |
470,613 |
Sunoco Logistics Partners Operations GP LLC |
Surety Bond |
1,003,925 |
Tamarack Acquisition Corp. |
Letter of Credit |
43,980 |
TAQA North Ltd. |
Letter of Credit |
1,450,075 |
Tidewater Midstream |
Letter of Credit |
1,857,506 |
Tundra Oil & Gas Limited for and on behalf of Tundra Oil & Gas Partnership |
Letter of Credit |
72,812 |
Veresen Energy Pipeline Inc. |
Letter of Credit |
3,326,412 |
Veresen NGL Pipeline Inc. |
Letter of Credit |
1,761,889 |
Vermilion Energy Inc. |
Letter of Credit |
242,462 |
Whitecap Resources Inc. |
Letter of Credit |
1,255,752 |
Windmill Dream |
Letter of Credit |
221,568 |
Winslow Resources |
Letter of Credit |
54,000 |
Yoho Resources Inc. |
Letter of Credit |
50,000 |
Zibi Community Utility |
Letter of Credit |
268,070 |
Companies using Trusts
Table G.2 lists all CER-regulated companies that are using a trust to fund their abandonment cost estimate, each associated abandonment cost estimate and the funds collected as of 31 December 2020. Note: Company annual trust filings, containing 2021 year closing balances, will be filed 30 April 2022.
Table G.2
Company |
Abandonment Cost Estimate |
Collection Period |
2020 Close balance |
|---|---|---|---|
2193914 Canada Limited |
6,689,261 |
35 |
1,347,000 |
Alliance Pipeline Ltd. |
364,940,000 |
40 |
75,592,599 |
Aurora Pipeline Company Ltd. (Plains) |
57,840 |
40 |
20,551 |
Centra Transmission Holdings Inc. |
22,226,090 |
40 |
6,346,182 |
Emera Brunswick Pipeline Company Ltd. |
12,781,000 |
20 |
5,512,000 |
Enbridge Bakken Pipeline Company Inc., on behalf of Enbridge Bakken Pipeline Limited Partnership |
22,300,000 |
25 |
4,265,000 |
Enbridge Pipelines (NW) Inc. |
45,000,000 |
12 |
16,909,000 |
Enbridge Pipelines Inc. |
1,743,200,000 |
40 |
315,809,000 |
Enbridge Southern Lights GP Inc. on behalf of Enbridge Southern Lights LP |
177,900,000 |
40 |
26,214,000 |
Express Pipeline Ltd. |
99,300,000 |
40 |
10,952,264 |
Foothills Pipe Lines Ltd. |
244,720,000 |
30 |
61,194,000 |
Genesis Pipeline (Canada) Ltd. |
3,114,576 |
40 |
1,389,678 |
Kingston Midstream Westspur |
51,931,666 |
25 |
11,725,000 |
PKM Cochin ULC |
28,000,000 |
20 |
11,536,459 |
Kinder Morgan Utopia Ltd. |
1,104,300 |
21 |
275,652 |
Maritimes & Northeast Pipeline Management Limited |
166,800,000 |
20 |
82,730,102 |
Montreal Pipe Line Limited |
19,873,239 |
40 |
4,913,914 |
Niagara Gas Transmission Limited |
6,871,346 |
35 |
1,353,000 |
Nova Gas Transmission Ltd. |
2,535,333,000 |
30 |
663,643,000 |
Plains Midstream Canada ULC |
50,347,731 |
40 |
15,731,207 |
Pouce Coupé Pipe Line Ltd. |
7,597,783 |
15 |
7,358,721 |
Souris Valley Pipeline Limited |
3,309,572 |
3,835,146 |
|
St. Clair Pipelines Management Inc. |
1,359,792 |
35 |
298,005 |
Trans Mountain Pipeline Inc. |
367,820,000 |
35 |
92,731,442 |
Trans Québec & Maritimes Pipeline (TQM) Inc. |
115,500,000 |
25 |
37,597,000 |
TransCanada Keystone Pipeline GP Ltd. |
268,100,000 |
25 |
84,614,000 |
TransCanada Pipelines Limited |
2,904,930,000 |
25 |
1,013,555,000 |
Trans-Northern Pipelines Inc. |
87,020,000 |
40 |
18,637,053 |
Union Gas Limited |
103,187 |
107,266 |
|
Vector Pipeline Limited Partnership |
8,500,000 |
35 |
1,141,000 |
Westcoast Energy Inc. |
809,700,000 |
40 |
99,059,286 |
Westover Express Pipeline Limited |
34,588,117 |
38 |
3,260,000 |
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