OEB Approves Union Gas Limited's Application for Gas Pipeline



    TORONTO, Oct. 9 /CNW/ - Today the Ontario Energy Board issued a Decision
and Order granting Union Gas Limited (Union) leave to construct a natural gas
pipeline in the Townships of Augusta and Edwardsburgh/Cardinal in the United
Counties of Leeds and Grenville.
    The project would involve construction of approximately 6.5 kms of 4 inch
pipeline required to supply natural gas to the Johnstown Ethanol Plant.
GreenField Ethanol Inc. (GreenField) started construction of the plant in
2006. The plant will be in service in August 2008.
    In making its Decision the Board considered the need for the project, the
economics of the project, the environmental impact, the impact on landowners
and the applicant's consultation with Aboriginal Peoples.
    In the Decision, the Board noted Union will be negotiating a contract
with Greenfield that will cover all gas distribution, pipeline and other
facilities costs. The contract is expected to be in place by October 31, 2007.
Union has also signed an indemnity letter with GreenField to cover all costs
incurred prior to construction. The Board was satisfied that the arrangements
between GreenField and Union will protect Union's other ratepayers from the
financial risks related to the construction and operation of the proposed
pipline.

    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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