Orders

LETTER NO. L-77-07 SIXTH FLOOR, 900 HOWE STREET, BOX 250 ERICA M. HAMILTON VANCOUVER, B.C. CANADA V6Z 2N3 COMMISSION SECRETARY TELEPHONE: (604) 660-4700 Commission.Secretary@bcuc.com BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 Log No. 10687 VIA E-MAIL regulatory.affairs@terasengas.com September 27, 2007 Mr. Scott Thomson Vice President, Finance and Regulatory Affairs Terasen Gas Inc. 16705 Fraser Highway Surrey, B.C. V3S 2X7 Dear Mr. Thomson: Re: Terasen Gas Inc. Application for Approval of Operating Terms for the Supply and Distribution of Natural Gas within the District of Chetwynd On July 19, 2005, Terasen Gas Inc. (“Terasen”) applied to the British Columbia Utilities Commission (the “Commission”) pursuant to Section 32 of the Utilities Commission Act (the “Act”) for approval of Operating Terms for the supply and distribution of natural gas service within the District of Chetwynd (the “District of Chetwynd”, the “Application”). The Operating Terms proposed in the Application replace the Operating Agreement that was approved by Commission Order No. C-20-80 and extended by various Orders until June 30, 2005. On September 2, 2005 the District of Chetwynd filed a Reply to the Application and opposed, with reasons, the establishment of the new Operating Agreement. Commission Letter No. L-82-05 established a written inquiry into the Terasen Application including a timetable for submissions pursuant to Section 32 of the Act. The deadline for submissions was extended by Letter No. L-86-05. By Letter No. L-6-06 the Commission required further submissions from Terasen and the District of Chetwynd regarding the proposed commencement date of any new Operating Agreement. The Commission reviewed the Application and the related submissions and by Order No. G-17-06 with attached Reasons for Decision approved the Operating Agreement proposed by Terasen on October 21, 2005, and amended as proposed by the District of Chetwynd on November 4, 2005, pursuant to Section 32 of the Act. Commission Order No. G-17-06 also directed that the Operating Agreement between Terasen and the District of Chetwynd approved therein was effective from July 1, 2005 and shall expire twenty-one years from the 1 st day of July 2005. Commission Order No. G-17-06 required Terasen and the District of Chetwynd to file with the Commission an endorsed Operating Agreement in accordance with the terms approved by this Order and Reasons for Decision. Commission Order No. G-17-06 provided that the terms of this Operating Agreement may be reviewed, upon application by Terasen or the District of Chetwynd, should the Commission determine that a significant revision is required. …/2

2 LETTER NO. L-77-07 To date an endorsed copy of the Operating Agreement that is in accordance with Commission Order No. G-17-06 and the Reasons for Decision has not been filed. The Commission requires that Terasen and the District of Chetwynd file the endorsed Operating Agreement by October 19, 2007 that is in accordance with Commission Order No. G-17-06 and the Reasons for Decision. If an endorsed Operating Agreement is not filed by October 19, 2007, Terasen may file by October 26, 2007, pursuant to Section 32 of the Act, the terms of use of the District of Chetwynd thoroughfares for Commission endorsement that are in accordance with the terms approved by Commission Order No. G-17-06 and the Reasons for Decision. Yours truly, Original signed by Erica M. Hamilton PWN/cms cc: Mr. Colin Stewart Staples McDannold Stewart Mr. Mike Redfearn, Chief Administrative Officer District of Chetwynd TGI/Cor/Chetwynd Operatng Agrmnt-Request for Filing TGI & Chetwynd