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News Release

FOR IMMEDIATE RELEASE

EUB ISSUES NATURAL GAS LIQUIDS INQUIRY DECISION

Calgary, Alberta (February 4, 2009) The Alberta Energy and Utilities Board (EUB) has issued Decision 2009-009, following the conclusion of an EUB-initiated inquiry that reviewed the conventions, practices and tariff provisions respecting the extraction of natural gas liquids (NGLs) from the common-stream natural gas transported on Alberta-regulated gas transmission pipelines.

The decision addresses three main issues:
1. The existing NGL extraction rights conventions and tariff provisions
2. Ongoing regulatory policy regarding lean-gas streaming
3. Ongoing regulatory policy regarding co-streaming and side-streaming

Following extensive written and oral proceedings throughout 2008, the EUB has recommended that:

• the current convention on the NOVA Gas Transmission Limited (NGTL) system, whereby natural gas export delivery shippers have the ability to sell extraction rights to NGLs entrained within the common-stream, be replaced within three years by the NEXT receipt-point convention proposed by NGTL, which would provide producers/receipt shippers placing gas on the NGTL system with NGL extraction rights.
• the current tariff provisions on ATCO Pipelines and AltaGas Utilities dealing with extraction rights should be reconsidered through a stakeholder consultation process.
• gas transmission pipeline projects that would preferentially stream lean gas (with low NGL content) to Alberta markets and richer gas to export-point NGL extraction plants should be assessed on an individual project basis and the concept should be considered through an industry collaborative process.
• co-streaming and side-streaming projects for processing common stream gas at Alberta field gas plants should be considered on a case-by-case basis in light of certain general factors.

The EUB retained its full authority to issue decisions and permits for proceedings that were initiated under its jurisdiction prior to 2008. The Alberta Utilities Commission is responsible for Alberta-regulated pipelines and related tariff matters which would include future inclusion of receipt point convention into tariffs and certain matters related to lean gas streaming. The Energy Resources Conservation Board is responsible for co-streaming and side-streaming conversions at gas plants and approvals for straddle plants.

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This news release and Decision 2009-009 are available at www.auc.ab.ca and www.ercb.ca.

For more information, please contact:

Bob Curran
Energy Resources Conservation Board
Phone: 403-297-3392
Email: bob.curran@ercb.ca

NR 2009-05