OEB Approves Union Gas Application to Construct Pipelines in County of Lambton



    TORONTO, Oct. 19 /CNW/ - Today the Ontario Energy Board (the Board)
issued a Decision and Order granting Union Gas Limited (Union) leave to
construct natural gas pipelines in the township of Dawn-Euphemia, in the
County of Lambton subject to certain conditions of approval. Following its
review of the evidence, the Board also prepared a favourable report to the
Minister of Natural Resources recommending approval of the application to
drill the proposed wells subject to the conditions of approval.
    The project, referred to as the 2008 Dawn Deliverability Project, would
involve construction of approximately 3,420 meters of 36 inch pipeline between
the 156 Compressor Station and the Dawn Compressor Station and 1,447 meters of
10 inch, 12 inch and 16 inch storage gathering pipelines within the Dawn 156
Pool and the Dawn 59-85 pool, five new wells in the 156 Pool, deepening a
recently drilled test well in the 156 Pool, and five new wells in the 59-85
Pool. Three existing wells in the 59-85 Pool will be abandoned.
    Union indicated the project is required to meet the growing demand for
storage services in Ontario.
    The storage deliverability (the rate at which Union can inject and
withdraw natural gas from storage facilities) created by this project will be
used to meet the requirements of Union customers, such as power generators and
marketers, and specifically, the needs of customers seeking high
deliverability services dealt with in the Board's November 7, 2006 Natural Gas
Electricity Interface Review (NGEIR) Decision. In accordance with the NGEIR
Decision, the prices for these high deliverability storage services will be
unregulated.
    The proposed expansion will increase Union's deliverability capacity by
518,000 GJ per day.
    When determining whether a project is in the public interest, the Board
typically examines the need for the project, the environmental impact, the
impact on landowners and the Applicant's consultation with First Nations.
    In its Decision, the Board determined Union's proposal was the best
alternative to meet the need and found the construction of the proposed
pipelines to be in the public interest.

    The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a viable and efficient energy
sector with informed consumers served by responsive regulatory processes that
are effective, fair and transparent.

    For more information on the Board, please visit our Web site at
www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or
toll-free at 1-877-632-2727.





For further information:

For further information: Vanda Wall, Ontario Energy Board, (416)
440-8149


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