News Release March 31, 2000
FOR IMMEDIATE RELEASE
EUB APPROVES DYNEGY AND PINON SOUR GAS FACILITIES EAST AND SOUTHEAST OF CALGARY CITY LIMITS
Calgary, Alberta (March 31, 2000) The Alberta Energy and Utilities Board (EUB) today issued Decision 2000-20, an interim approval on an application by Dynegy Canada Inc. (Dynegy) for the continued operation of a sour gas pipeline and sweet fuel gas pipeline southeast of Calgary. The decision also approves an application by Pinon Oil and Gas Ltd. (Pinon) to construct and operate a new sour gas compressor station and sour gas pipeline in the same general area.
The interim approval allows the continuance of operations until November 1, 2000, with the objective of reaching longer term agreements on the continuance of operations by that date. The EUB expects Dynegy and local landowners to work towards an agreement on a framework that allows Dynegy's pipeline to continue operations, but which also allows for the planning and development of urban growth into the pipeline area in the future. Should Dynegy and local landowners fail to reach an agreement by October 1, 2000, the EUB will, based on evidence heard at the public hearing, prescribe a plan, and/or establish a fixed operational term limit for the pipeline.
The Dynegy sour gas pipeline runs generally south for a distance of 10.3 kilometres within an area south of Highway 22X, east of 88th Street East and crossing the Bow River north of Dunbow Road, outside of the Calgary city limits. The Pinon sour gas compressor station and pipeline will be located 4 kilometres east of the Calgary city limits. The compressor station will be located south of Glenmore Trail in the Shepard area. The connecting pipeline will run south for 11.3 km before connecting with the Dynegy sour gas pipeline.
These applications were considered at a public hearing held in both Indus and Calgary, Alberta during the summer and fall of 1999. The applications were heard consecutively, but each application was considered independently and judged upon its own merit. Having carefully considered all of the evidence, the EUB is satisfied that the continued operation of the Dynegy pipelines and the construction and operation of the Pinon compressor station and pipeline is in the public interest, and that the facilities can be operated safely. The Dynegy pipeline consists of level 1 and 2 segments and transports sour gas containing approximately 38% hydrogen sulphide (H2S). The Pinon pipeline is a level 1 facility and will transport sour gas containing approximately 2% H2S.
The EUB has attached other conditions to both approvals. Dynegy must amend its emergency response plan, conduct a full pipeline internal inspection and engage in further landowner consultation. Pinon must strengthen public consultation and provide ongoing information to area residents.
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This news release and Decision 2000-20 are available on the EUB web site at www.ercb.ca
For further information please contact:
Greg Gilbertson, Senior Advisor
EUB Communications
Tel: (403) 297-3648
Fax: (403) 297-3757
NR-2000-15
