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TransCanada PipeLine Decision

 
 
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 On February 26, 2009, the National Energy Board (NEB) approved an application by TransCanada PipeLines Limited (TCPL) for an order recognizing that the TransCanada Alberta System is under federal jurisdiction. Outlined below are some statements from the decision that relate primarily to landowners issues.

The news release of the NEB decision can be viewed at NEB News Release.

The full decision can be viewed at Full NEB Decision.

Views of TransCanada (TCPL)

On consultation
TCPL stated: “it would consult with landowners and others only after the Board decided that it had jurisdiction over the Alberta System.” (Page 23,p1)

“it would undertake a broad-based public consultation and communications program after the Board issued the decisions.” (Page 23, p2)

TCPL acknowledged that: “a change from provincial to federal jurisdiction will result in changes affecting landowners. In response, TransCanada committed to distribute a notification letter……purpose of this notification would be to inform landowners of the Board’s decision and some of the changes resulting from that decision. The letter will also provide landowners with contact information for TransCanada.” (Page 23, p3)

On crossing restrictions
TCPL stated: “TransCanada’s practice is not to restrict farming equipment from crossing rights of way. TransCanada says that it does not require landowners to obtain permission for crossings required by regular farming practices. Regarding integrity and maintenance digs, TransCanada’s practice is to approach landowners for permission to enter the right of way and take into consideration their concerns in scheduling the proposed dig, and to address compensation for damage caused as required.” (Page 26, p2)

On abandonment
TCPL noted: “that the Board has the authority to condition any abandonment order to take effect only after the conditions on the order have been satisfied. Only then could the NEB lose jurisdiction. Therefore a condition relating to abandonment would be redundant. Additionally, TransCanada indicated that its practice is to build an abandonment plan in consultation with landowners according to specific concerns they might have.” (Page 26, p3)

On compensation
TCPL noted: “TransCanada indicated that it would honour existing contracts and enter into new contracts as required and according to operational requirements and business needs. TransCanada stated that it has all land rights for the application and does not plan to acquire more. In the future, it would deal with land rights and access on a project-specific basis.” (Page 26, p4)

Views of the National Energy Board

On consultation
The NEB stated: “The principle point of disagreement between TransCanada and the landowners groups (AAPL/CAPLA), concerning consultations, is around the timing of the consultation program.” (Page 23, p6)

“The Board accepts TransCanada’s commitment to prepare and distribute a notification letter to inform landowners of the Board’s decision. The Board expects that the notification letter will include: information on the board’s decision; contact information for the NEB; a copy of the board’s publication “Living and Working Near Pipelines: Pamphlet”; an indication of any relevant changes that will take place on the effective date of the Certificate; and key contact information for relevant sources within TransCanada should the landowners require further information. This notification letter should be distributed as soon as possible after the release of the Board’s decision.” (Page 24, p3)

“The Board expects a consultation program to be accessible and inclusive in order to provide and opportunity for potentially affected persons or groups to raise comments or concerns.” Page 24, p4)

On crossing restrictions
The NEB stated: “The Board accepts Trans Canada’s indication that its practices address the concerns expressed about permission for equipment crossing pipelines.” (Page 27, p5)

On abandonment
“Under the NEB Act, abandonment is to be addressed at the time that it occurs so that decisions can be based on the specific facts at that time. The Board will not restrict the options that will be available at abandonment by imposing the requested condition. Such a restriction would not likely be enforceable. In the same fashion, the Board will not put restrictions on future land acquisition as requested by AAPL/CAPLA.” (Page 27, p6)

On compensation
“conditions that address compensation are not within the Board’s mandate under the NEB act and therefore will not be imposed.” (Page 27, p7)

The Board views the framework of regulation as being:

“designed to balance the rights of all parties as well as ensure the safety or those working and living near pipelines, protect the environment and benefit Canadians through efficient energy infrastructure and markets. The Board works with companies and stakeholders to ensure these goals are continuously met, throughout the life of the pipelines it regulates.” (Page 36, p3)

Furthermore, the Board makes the following statement:

“The Board is of the view that the evidence in this case strongly weighs in favour of granting a Certificate of the continued operation of the Alberta System. (Page 36, p4)

You can find further information on the process to address compensation issues at this link: Federal Pipeline Regulation

In essence, when you and the company cannot agree on the amount of compensation you should receive, either of you can ask the federal Minister of Natural Resources for help in settling the issue. You may need to send a letter to the Minister and request to have the issue settled either by negotiation or arbitration.

Further to the issues around federal abandonment of pipelines and future liabilities. The Land Matters Consultation Initiative has extended the comment period on both the LMCI Draft Final Report and on the Stream 4 Draft Principles, to March 31, 2009.

Due to this, the NEB will release the LMCI Final Report and the final version of the Principles for the End State of Land Post-Abandonment, by the end of May 2009.

Click on this link to follow progress of this issue.

NEB - Involving the Public - Land Matters Consultation Initiative (LMCI)

Please contact our office at 310-FARM (3276) or visti our website at www.farmersadvocate.gov.ab.ca if you wish to discuss this issue further or have any specific questions.

 
 
 
 
For more information about the content of this document, contact Janet Patriquin.
This information published to the web on March 18, 2009.
Last Reviewed/Revised on March 23, 2009.