Orders

IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

Quicksilver Resources Canada Inc.

Application for Amendment of Order G-81-12 to include Spoke Pipeline

BEFORE:               C. A. Brown, Commissioner

                                H. G. Harowitz, Commissioner

                                K. A. Keilty, Commissioner

                                N. E. MacMurchy, Commissioner                              November 20, 2014

                                I. F. MacPhail, Commissioner

                                B. A. Magnan, Commissioner

                                D. M. Morton, Commissioner

                                R. D. Revel, Commissioner

                                C. van Wermeskerken, Commissioner

O  R  D  E  R

WHEREAS:

A.      Pursuant to section 88(3) of the Utilities Commission Act (UCA) the Lieutenant Governor in Council, by Order in Council No. 370, dated May 31, 2012, granted advance approval to the British Columbia Utilities Commission (Commission) to exempt Quicksilver Resources Canada Inc. (Quicksilver), from Part 3 of the UCA. On June 14, 2012, by Order G-81-12, the Commission approved an exemption for Quicksilver for the Fortune Creek system facilities listed in Appendix I to the order;

B.      Directive 4 of Order G-81-12 states, “Quicksilver is directed to advise the Commission, in writing, of any facility that is not listed in Appendix I and which Quicksilver 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 I”;

C.      On September 26, 2014, Bennett Jones, acting as legal counsel for Quicksilver, applied for an amendment to Order G-81-12 to include in its scope a proposed 324-metre long, 12 inch diameter pipeline (Spoke Pipeline) to connect additional wells to the existing Fortune Creek system (Application);

D.      On October 10, 2014, the Commission initiated a comment process for affected parties and posted the Application on its website including Commission information requests;

E.       No comments from affected parties were received and on November 7, 2014, Quicksilver submitted a reply including confirmation of notices sent to affected parties and responses to the Commission information requests;

F.       Section 99 of the UCA provides that the Commission may reconsider, vary or rescind an order made by it; and

G.     The Commission has reviewed the Application and finds that including the Spoke Pipeline in the exempt facilities is in the public interest and that Appendix I to Commission Order G-81-12 should be amended to include the Spoke Pipeline in the list of facilities.

NOW THEREFORE pursuant to section 99 of the Utilities Commission Act the British Columbia Utilities Commission orders that Appendix I to Order G-81-12 is amended to include the Spoke Pipeline as described in the Application. The amended Appendix I is attached to this order.

DATED at the City of Vancouver, in the Province of British Columbia, this          21^st         day of November 2014.

                                                                                                                                BY ORDER

                                                                                                                                Original Signed by:

D. M. Morton

                                                                                                                                Commissioner

Attachment

QUICKSILVER RESOURCES CANADA INC.

Transportation and Processing Facilities in British Columbia

Exempted from Part 3 Regulation

1.       Fortune Creek system of Northeastern British Columbia –

1.0               Compressor facility, dehydrator, pipelines and related facilities.

1.1               Spoke pipeline (2014 addition of 12 inch OD pipe connecting wells to Fortune Creek system)