CALGARY, May 26 /CNW/ - The National Energy Board (NEB, the Board) today
adopted a report on the financial issues of pipeline abandonment that will
require companies to set aside funds to cover future abandonment costs.
The Report and Recommendations follows a January 2009 hearing held by
three of the NEB Board Members into the financial matters of pipeline
abandonment. By the Board's adoption of the report, all pipeline companies
regulated under the NEB Act will be required to comply with the report's
framework and action plan. This calls for companies to submit estimates of
funds needed for abandonment as well as proposals for how they will collect
and set aside those funds.
The NEB will host a technical conference this fall to discuss the
assumptions that companies may use to help them determine the abandonment
costs. The NEB's goal is to have companies begin setting aside funds for
abandonment no later than the end of May 2014. It's the Board's view that no
pipeline system is likely to be abandoned in the foreseeable future and
therefore there is time to ensure the funding framework is established and
implemented in a manner that considers all parties' interests.
The hearing and this report are part of the NEB's ongoing efforts to
improve understanding and dialogue between companies, landowners and the NEB
through the Land Matters Consultation Initiative (LMCI). The NEB outlined four
streams for LMCI: company interactions with landowners, improving the
accessibility of NEB processes, pipeline abandonment - financial issues, and
pipeline abandonment - physical issues. The NEB handled the physical issues of
pipeline abandonment by issuing a discussion paper and draft principles to
guide planning for abandonment. The NEB continues its work on the remaining
LMCI streams through an action plan and final report.
Celebrating 50 years of regulatory leadership, the NEB is an independent
federal agency that regulates several parts of Canada's energy industry. Its
purpose is to promote safety and security, environmental protection, and
efficient energy infrastructure and markets in the Canadian public interest,
within the mandate set by Parliament in the regulation of pipelines, energy
development and trade.
This news release and the Report and Recommendations are available on the
Board's Internet site at www.neb-one.gc.ca under What's New!
For further information:
For further information: Kristen Higgins, Communications Officer, Email:
firstname.lastname@example.org, Telephone: (403) 299-3122; For a copy of the
document: National Energy Board, Library, Ground Floor, 444 Seventh Avenue SW,
Calgary, Alberta, T2P 0X8, Telephone: (403) 299-3561, Telephone (toll free):
1-800-899-1265, Telecopier: (403) 292-5576, Telecopier (toll free):
1-877-288-8803, E-mail: email@example.com