OEB Decision Resolves Dispute on Pipeline Construction

    TORONTO, March 4 /CNW/ - Today the Ontario Energy Board issued a Decision
and Order amending an earlier Decision that granted Natural Resource Gas
Limited (NRG) leave to construct a 28.5 kilometer natural gas pipeline.
    The pipeline is necessary to meet the natural gas distribution
requirements of an ethanol plant proposed by Integrated Grain Processors
Cooperative Inc. (IGPC) in Aylmer, Ontario.
    The Decision follows a hearing called by the Board on short notice in
Aylmer. The hearing was in response to a motion filed by IGPC claiming that
NRG was failing to construct the pipeline in a timely fashion. NRG, on the
other hand, claimed that IGPC failed to provide a required letter of credit.
Much of the dispute surrounded the proper amount of this letter of credit.
    With regard to the dispute over the appropriate amount of the letter of
credit, the Board has required the parties to make written submissions on
certain cost items that NRG claims should be part of the letter of credit .
The Board will decide which additional cost items, if any, are appropriate and
the Parties have agreed to accept the Board's Decision on this issue as
    The Board also added a new condition to the leave to construct approval.
This condition requires the Parties to adhere to a mutually agreed schedule.
The schedule addresses the date for delivery of the letter of credit by IGPC
to NRG and the dates by which NRG is to undertake certain steps in the
construction of the faciltities
    The amended leave to construct also provides that, in the event either
party fails to comply with the tasks set out in the schedule, either Party can
apply to the Board to have the leave to construct terminated. In such an
event, it would be open to other parties to apply for a leave to construct for
this facility.

    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, and works towards this vision through
regulatory processes that are effective, fair and transparent.
    For more information on the Board or to view the transcript of the
Board's ruling, please visit our website 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: Paul Crawford, Ontario Energy Board, (416)

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