Orders

ORDER NUMBER

G-134-18

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Pacific Northern Gas Ltd.

Application for Approval of Letter Agreement between

Pacific Northern Gas Ltd. and Triton LNG Limited Partnership

BEFORE:

B. A. Magnan, Commissioner

on July 19, 2018

ORDER

WHEREAS:

A.      On April 9, 2018, Pacific Northern Gas Ltd. (PNG) filed with the British Columbia Utilities Commission (BCUC), pursuant to sections 59 to 61 of the Utilities Commission Act, a request for approval of a letter agreement entered into between PNG and Triton LNG Limited Partnership (Triton) on March 29, 2018 (Letter Agreement) and to establish an interest-bearing deferral account to capture any option fees received from Triton (Application);

B.      The Letter Agreement, attached as Appendix A to the Application, sets out the terms and conditions under which PNG will provide Triton with an option on firm and interruptible transportation service for a proposed small modular liquefied natural gas (LNG) or methanol export project to be located at Ridley Island, BC. The option is for a minimum of 20 MMcf/day of firm transportation service, increasing to approximately 50 MMcf/day of firm transportation service at Triton’s election, should Triton elect to reserve additional capacity on terms to be determined by PNG;

C.      By Order G-93-18 dated May 15, 2018, the BCUC established a regulatory timetable for the review of the Application, including one round of BCUC information requests (IRs), an opportunity for members of the public to file letters of comment and PNG responses to letters of comment;

D.      On June 8, 2018, the BCUC received a letter of comment from Western LNG LLC (WLNG) stating it opposes the Application on public interest grounds. WLNG requested that the BCUC either dismiss the Application or establish a process that allows parties to participate more fully as interveners;

E.       In consideration of WLNG’s letter of comment and subsequent response from PNG on June 21, 2018, the BCUC issued Order G-116-18 dated June 26, 2018 which amended the regulatory timetable to provide for, among other things, intervener registration and intervener IRs;

F.       On July 10, 2018, the BCUC received a letter from WLNG requesting the opportunity to file an expert report and lead intervener evidence in relation to the Application;

G.      On July 11, 2018, the BCUC requested submissions from PNG on WLNG’s request to file intervener evidence and requested submissions from both PNG and WLNG on a revised regulatory timetable for the review of the Application;

H.      On July 13, 2018, PNG filed a submission stating that it would be amenable to the BCUC granting WLNG’s request to file intervener evidence, and proposed a regulatory timetable which included the filing of intervener evidence, IRs on intervener evidence, the opportunity for PNG to file rebuttal evidence and written final and reply arguments. PNG also requested an extension of an additional three working days to file its responses to the BCUC and intervener IRs due to the volume of IRs received;

I.        WLNG responded with a submission on July 17, 2018, stating that it has no objection to PNG’s request for additional time to file the IR responses and it is agreeable to PNG’s proposed timeline and schedule for the remaining steps in the regulatory process; and

J.        The BCUC has reviewed the submissions from PNG and WLNG and considers that amending the regulatory timetable is warranted.

NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, the amended regulatory timetable for the review of the Application is established, as set out in Appendix A to this order.

DATED at the City of Vancouver, in the Province of British Columbia, this                19th                  day of July 2018.

BY ORDER

Original signed by

B. A. Magnan

Commissioner

Attachment

Pacific Northern Gas Ltd.

Application for Approval of Letter Agreement between

Pacific Northern Gas Ltd. and Triton LNG Limited Partnership