Board Determines That Tolls Are Just and Reasonable On the Southern Lights Pipeline

CALGARY, Feb. 9, 2012 /CNW/ - The National Energy Board (NEB or Board) announced today that it has approved NEB Tariff No. 1 (Tariff 1) and NEB Tariff No. 2 (Tariff 2) for service on the Southern Lights Pipeline filed by Enbridge Southern Lights GP Inc. (ESL), and accordingly has denied the relief requested by Imperial Oil Limited (Imperial).

On 31 May 2010, ESL submitted Tariff 1 (governing rules and regulations) and Tariff 2 (governing tolls) to the Board.  On 10 September 2010, Imperial filed a complaint regarding the Tariffs.  The Board then established the RH-1-2011 public hearing to examine the Tariffs.

Taking into account all the evidence submitted during the hearing, the Board found that the committed toll (toll charged for long-term committed service) and uncommitted toll (toll charged for uncommitted service) are just and reasonable. The Board also found that the uncommitted toll is not unjustly discriminatory and not an impediment to access service on the pipeline. The Board's reasons are found in its RH-1-2011 Reasons for Decision (RFD).

The Board noted that it has an ongoing obligation to make sure that tolls are just and reasonable throughout the life of a pipeline.  The Board also noted that it has a role to play in providing stakeholders with regulatory certainty with respect to toll design, and that regulatory certainty is an important factor in the Board's decision-making processes. Persons rely on toll principles that have been approved by the Board to make their investment decisions. In this case, the Board took into account the impacts on ESL and its shippers if the tolling principles, approved by the Board in the OH-3-2007 RFD, were to be altered as requested by Imperial.

The Board also noted that Imperial is not currently a shipper on the ESL pipeline, and that it has not formally requested access on it.  The Board stated that should Imperial or any other person seek committed capacity in the future and be denied, it could at that time request relief from the Board.  Before making such a request, Imperial or any other person should exhaust all efforts to negotiate reasonable terms and conditions appropriate for the circumstances at the time.

The NEB is an independent federal regulator of several parts of Canada's energy industry. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest.

This news release is available on the NEB's Internet site at www.neb-one.gc.ca under What's New!

SOURCE National Energy Board

For further information:

Erin Dottor (erin.dottor@neb-one.gc.ca)
Communications Officer
Telephone: 403-299-3712
TTY (teletype): 1-800-632-1663

For a printed copy of Reasons for Decision RH-1-2011:

National Energy Board
Ground Floor
444 Seventh Avenue SW
Calgary, Alberta
T2P 0X8
E-mail: library@neb-one.gc.ca
Telephone: 403-299-3561
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5576
Telecopier (toll free): 1-877-288-8803
TTY (teletype): 1-800-632-1663


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