Warning Letter to Portal Municipal Gas Company of Canada (PMGCC)

Enforcement File: CV1920-301

26 September 2019

Registered with acknowledgement of receipt

Information not available
Accountable Director
Portal Municipal Gas Company
202 Metzger Street Box 171
Portal, ND, USA 58772

Warning Letter to Portal Municipal Gas Company of Canada (PMGCC)

Dear Information not available

Safety and environmental oversight is a core responsibility for the Canada Energy Regulator (CER). This letter is to inform you that the CER has identified multiple repeat non-compliances with the National Energy Board Onshore Pipeline Regulations (SOR/99-294) (OPR) for not submitting the yearly annual report notifications and for the late submission of the 2018 annual report notification pursuant to ss. 6.6(2).

The Commission holds its regulated companies accountable for the safety, security, and protection of workers, the general public and the environment. CER-regulated companies, as certificate holders, are required to follow the Canadian Energy Regulator Act and all its associated Regulations.

Pursuant to:

ss. 6.6 (1) A company shall complete an annual report for the previous calendar year, signed by the accountable officer, that describes

(a) the performance of the company’s management system in meeting its obligations under section 6 and the company’s achievement of its goals, objectives and targets during that year, as measured by the performance measures developed under paragraphs 6.5(1)(b) and (v); and

(b) the actions taken during that year to correct any deficiencies identified by the quality assurance program established under paragraph 6.5(1)(w).

  •  (2) No later than April 30 of each year, the company shall submit to the Board a statement, signed by the accountable officer, indicating that it has completed its annual report.


PMGCC holds an authorization from the CER to operate a natural gas distribution pipeline consisting of approximately ten meters of 88.9 mm outside diameter polyethylene pipe that commences at the termination of SaskEnergy meter station in Canada and terminates at the distribution system of the city of Portal in the US; as set out in Order XG-P160-53-93.

PMGCC’s annual report notification and accountable officer appointment was not completed for 2013, 2014, 2015 and 2016.

CER staff met with Information not available, legal counsel for PMGCC on July 6, 2016 to discuss the history of repeat non-compliances.

PMGCC appointed Information not available as the accountable officer on November 17, 2017.

PMGCC’s annual report notification was not completed for 2017.

On December 19, 2018, PMGCC and SaskEnergy signed a new Pipeline Service Agreement which stated that PMGCC shall be responsible for providing an accountable officer, and for all CER related filings.

PMGCC’s annual report notification for 2018 was submitted late on June 28, 2019 once an information request was issued by the CER to submit the information.


This warning indicates an alleged non-compliance with section 6.6 (2) of the OPR, and is issued in accordance to the CER’s enforcement policy. It is intended to bring this matter to your attention in order for you to take the necessary corrective action to ensure future compliance with Canadian Energy Regulator Act, its associated Regulations and related regulatory instruments. In the future, required filings must be made on time and without the necessity of CER follow-up.

This written warning, and the circumstances to which it refers, may be taken into account during the CER’s compliance and audit planning or in response to any future non-compliances. PMGCC is expected to exercise due diligence in meeting all CER requirements.

Please be advised that this letter will form part of PMGCC’s compliance history, and any future reported events may result in further enforcement action, including administrative monetary penalties, in accordance with the CER’s enforcement policy and procedures. You can find more information on the Commission’s compliance and enforcement activities on the website.

Should you have any questions regarding this review, please contact Information not available, Lead Investigator, by telephone toll-free at 1-800-899-1265, directly at Information not available or by email at Information not available.

Yours sincerely,

Original signed by

Information not available
Director, Audit, Enforcement and Investigations
Systems Operations Business Unit

c.c. Information not available, Partner, Fasken Martineau DuMoulin LLP

Date modified: