BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -38-06 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by Canadian Natural Resources Limited for an Exemption from Part 3 of the Utilities Commission Act Covering the Transportation and Processing of Natural Gas BEFORE: L.F. Kelsey, Commissioner ) April 7, 2006 O R D E R WHEREAS: A. Order in Council No. 16, 2001 empowered the Commission to issue an Order exempting Williams Energy Canada Inc. (“Williams Canada”) from regulation under the Utilities Commission Act (“the Act”). The Commission, by Order No. G-13-01, approved for Williams Canada an exemption from Part 3 of the Act, except for Sections 24 and 25, for the West Stoddart plant and facilities; and B. On August 24, 2003, Williams Canada advised the Commission that it had sold the West Stoddart plant and facilities to Canadian Natural Resources Limited (“CNRL”) effective July 1, 2003, and requested that the Commission rescind the exemption that was granted by order No. G-13-01; and C. On August 25, 2003, CNRL applied under Section 88(3) of the Act for an exemption from Part 3 of the Act for the West Stoddart plant and facilities, which CNRL will use to transport or process natural gas, effective July 1, 2003; and D. On September 11, 2003, the Commission rescinded the exemption given to Williams Canada by Order No. G-59-03; and . . ./2
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-38-06 2 E. The Commission has considered the CNRL application and is satisfied that an Order under Section 88(3) of the Act exempting the West Stoddart plant and gathering facilities in British Columbia, which CNRL has purchased from Williams Canada, from the requirements under Part 3 properly conserves the public interest; and F. On March 30, 2006 the Lieutenant Governor in Council issued Order in Council No. 201, 2006 (the “Order in Council”) as Appendix of this Order, giving approval to the Commission to exempt CNRL from certain provisions of the Act for the purpose and subject to the terms set out in the attached draft Order of the Commission; and G. The Commission may find it is in the public interest to exempt a CNRL transportation or processing facility that is not listed in Appendix 1 to the draft Order attached to the Order in Council after CNRL advises the Commission in writing, that it will begin to use the facility to transport or process natural gas for others; and H. Section 99 of the Act provides that the Commission may reconsider, vary or rescind an Order made by it. NOW THEREFORE the Commission orders as follows: 1. Pursuant to Section 88(3) of the Act, the Commission approves an exemption for CNRL from Part 3 of the Act for the West Stoddart facilities that CNRL uses to transport or process natural gas for others, and as set out in the attached Appendix 1, effective April 7, 2006. 2. Facilities listed in Appendix 1 will continue to be subject to the Act on a complaint basis, with a complaint taking a form similar to that of an application by an interested party under the Common Carrier and Common Processor sections of Part 4 of the Act. 3. CNRL is directed to advise the Commission, in writing, of any facility that is not listed in Appendix 1 and which CNRL intends to use to transport and process natural gas for others, so that the Commission on finding that the exemption of such facility is in the public interest can, by Order, issue a revised Appendix 1.
3 4. CNRL is responsible for the safe and proper operation of its facilities consistent with the requirements of the Pipeline Act and other regulatory requirements. 5. CNRL is directed to file an annual report for each exempted facility in the form set out in Appendix 3, or as the Commission may otherwise require, and to distribute copies to the shippers using the facilities. 6. CNRL is directed to pay fees to the Commission in the amounts that the Commission determines are required to defray costs associated with the CNRL facilities. DATED at the City of Vancouver, in the Province of British Columbia, this 11 Attachments Orders/CNRL_Xmptn West Stoddart BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-38-06 th day of April 2006. BY ORDER Original signed by L.F. Kelsey Comissioner
CANADIAN NATURAL RESOURCES LIMITED Transportation and Processing Facilities in British Columbia Exempted from Part 3 of the Act West Stoddart area – all pipelines, plant and related facilities. APPENDIX 1 to Order No. G-38-06 Page 1 of 3
APPENDIX 2 to Order No. G-38-06 Page 2 of 3 Order in Council No. 201, which is attached as Appendix 2
APPENDIX 3 to Order No. G-38-06 Page 3 of 3 ANNUAL REPORTING REQUIREMENTS Complaint Oversight of Companies that Transport or Process Gas for Others A Report is required for each separate, significant Pipeline system or processing facility. (Companies are to file Reports within 90 days after fiscal year-end) 1.0 Previous Year Actuals • Facility name, location, function, capacity. • Any significant changes in capacity during the year. • Throughput during the year. • Names, addresses for CNRL and contact name and telephone number for each shipper.
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