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News Release

FOR IMMEDIATE RELEASE

EUB DENIES APPLICATION BY SOLEX TO EXTRACT NATURAL GAS LIQUIDS OFF THE NOVA GAS TRANSMISSION LINE

Calgary, Alberta (January 27, 2004) The Alberta Energy and Utilities Board (EUB) today issued Decision 2004-006, which denies an application by Solex Gas Processing Corp. (Solex) to amend a gas processing scheme and build two pipelines for the purpose of extracting natural gas liquids (NGL) on behalf of parties that put gas into Nova Gas Transmission Ltd.s (NGTL) Western Alberta System.

Currently, straddle plants contract with delivery shippers on NGTLs system to extract NGL prior to gas leaving the province. In addition, most shippers that hold export delivery capacity at the Alberta/British Columbia border are not producers.

The EUB concluded that Solex failed to demonstrate that this proposal was in the public interest, as its associated costs outweigh the benefits from a provincial perspective. In addition, approval of the application may have adverse impacts on the straddle plants system and could require a change in current business practices with system-wide implications, but without necessary stakeholder consultation.

However, the EUB is concerned about the apparent inequities that exist in the current business practices for NGL extraction. As a result, the EUB has requested that interested parties initiate an industry review of these practices with NGTL by April 1, 2004, and advise the EUB of their progress by October 31, 2004. If this issue is not addressed through the Tolls, Tariffs, and Policies Committee or other process, the EUB may direct NGTL to consider this matter in its next tariff application.

The applications by Solex were considered at a public hearing held in Calgary from September 26 to November 7, 2003.

The EUB ensures that the discovery, development, and delivery of Alberta's resources take place in a manner that is fair, responsible, and in the public interest.

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This news release and Decision 2004-006 are available on the EUB Web site at http://www.ercb.ca.

For more information, please contact:
Bob Curran, EUB Communications
Phone: 403-297-3392    
Fax: 403-297-3757
Email: bob.curran@gov.ab.ca

NR2004-04