ORDER NO. E-2-97 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 a TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385 CANADA FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, S.B.C. 1980, c. 60, as amended and An Application by Pacific Northern Gas Ltd. for Approval of Pricing Amendments to Baseload Purchase Contracts for the 1996/97 Gas Contract Year BEFORE: M.K. Jaccard, Chairperson; and ) L.R. Barr, Deputy Chairperson ) January 22, 1997 O R D E R WHEREAS: A. On JulyÊ17, 1996 the Commission, by Letter No.ÊL-25-96, approved for Pacific Northern Gas Ltd.Ê(ÒPNGÓ) its Gas Contracting Plan for the 1996/97 gas contract year; and B. On NovemberÊ4, 1996 PNG applied to the Commission for approval of Letter Agreements covering pricing amendments to Baseload Gas Purchase Contracts with Talisman Energy Inc.Ê(ÒTalismanÓ) and Ranger Oil LimitedÊ(ÒRanger OilÓ) for the 1996/97 gas contract year; and C. The Talisman and Ranger Oil prices for the 1996/97 gas contract year were based on the Inside FERC Sumas Index plus reasonable market premiums, but did not provide for the full deduction of the Westcoast Energy Inc. transportation costs to adjust prices from Sumas to the Station; and D. On NovemberÊ21, 1996 the Commission issued Order No.ÊE-17-96 which denied approval of the Ranger Oil and Talisman Contracts and referred them to the public proceeding into PNGÕs 1997 Revenue Requirements set out by Order No.ÊG-112-96; and E. On JanuaryÊ17, 1997 PNG filed for Commission approval renegotiated 1996/97 gas supply prices applicable to the Ranger Oil and Talisman contracts; and F. The Commission has reviewed the PNG filing and is satisfied that approval of the renegotiated gas supply contract amendments are necessary and in the public interest. . . . /2
2 NOW THEREFORE pursuant to SectionÊ85.3 of the Utilities Commission Act, the Commission approves the following for PNG: 1. Letter Agreement dated NovemberÊ27, 1996 to the PNG and Talisman Baseload Contract dated OctoberÊ30, 1991 which establishes prices for 1996/97, and which terminates the contract effective OctoberÊ31, 1997. 2. Letter Agreement and amendment dated DecemberÊ23, 1996 to the PNG and Ranger Oil Baseload Contract dated OctoberÊ28, 1991 which establishes prices for 1996/97, and which terminates the contract effective MarchÊ31, 1997. 3. The directions contained in Order No.ÊE-17-96, referring the Talisman and Ranger Oil contracts to the 1997 PNG Revenue Requirements proceeding, are rescinded. DATED at the City of Vancouver, in the Province of British Columbia, this ÊÊÊ 31stÊÊÊÊÊday of January, 1997. BY ORDER Original signed by: Dr. Mark K. Jaccard Chairperson ORDERS/PNG-PurchCntrctPriceAmd
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