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Bulletin 2007-46

December 19, 2007

Gas Utility Pipelines Under the Jurisdiction of the Alberta Utilities Commission

As of January 1, 2008, the Alberta Utilities Commission (AUC) will regulate gas utility pipelines, in accordance with Section 4.1 of the Gas Utilities Act. As set out in this section, the AUC has jurisdiction to exercise all the powers, functions, and duties of the Energy Resources Conservation Board (ERCB) under the Pipeline Act for gas utility pipelines that are gas pipelines of a designated gas utility or its affiliates.
The designated utilities are AltaGas Utilities Inc., ATCO Gas and Pipelines Ltd., and Nova Gas Transmission Ltd. The Gas Utilities Act also defines “affiliate,” referred to in the definition of a gas utility pipeline, as having the same meaning as in the Business Corporations Act. Also, the definitions of pipeline and pipeline installations in the Pipeline Act apply to gas utility pipelines.

As a result of the above, applications for the construction and operation of gas utility pipelines are to be submitted to the AUC in accordance with the Rules Respecting Gas Utilities Pipeline to be adopted by the AUC (see attached draft Rules on Gas Utilities Pipelines). Applications must be submitted electronically to the AUC using the AUC’s Electronic Application Submission (EAS) system.
However, applications for pipelines under the Pipeline Act, other than gas utility pipelines, will be submitted to the ERCB.

The AUC may delegate its powers, duties, and functions regarding operational and compliance matters of gas utility pipelines to the ERCB. If a delegation is made, the ERCB Public Safety/Field Surveillance Branch will continue to conduct inspection of pipelines and respond to complaints or incidents for both AUC and ERCB pipelines.
The AUC will require licensees of gas utility pipelines to report volumetric information to the Petroleum Registry of Alberta in accordance with Directive 007: Volumetric and Infrastructure Requirements, published by the ERCB and administered by the ERCB.
 

<original signed by>      
 
Michael J. Bruni, Q.C.
Executive Manager
Energy Team 

<original signed by>

R. D. Heggie
Executive Manager 
Utilities Branch

Attachment
 
Attachment

DRAFT Rules Respecting Gas Utility Pipelines

Definitions

1 In these rules,
(a) “Act” means the Alberta Utilities Commission Act;
(b) “Commission” means the Alberta Utilities Commission;
(c) “gas utility pipeline” means a gas utility pipeline as defined in the Gas Utilities Act.

Application
2 These rules apply to gas utility pipelines.
Pipeline Act
3 Pipeline Act and the Pipeline Regulation apply to gas utility pipelines.

Application for Licence to Construct and Operate

3(1) An application for a licence to construct and operate a gas utility pipeline must be made to the Commission, in accordance with the requirements of sections 2, 3, and 6 including Schedules 1, 3 and 3.1 of Directive 56, Energy Development Applications and Schedules, published by the Energy Resources Conservation Board with the modifications made by the Commission, as available on the Commission’s website.
(2) An application for a gas utility pipeline must identify under which one of the following application types it is being made
(a) Pipeline – New,
(b) Pipeline – Amendment,
(c) Pipeline – Transfer,
(d) PPL Install-New (installations on a gas utility pipeline such as compressors)
(e) PPL Install-Amend – (amendments to an installation on a gas utility pipeline).
(3) An applicant must obtain or hold a business associate code from the Petroleum Registry for purposes of filing an application.
(4) Applications must be filed electronically through the Commission’s Electronic Application Submission system.
(5) At time of application, an applicant must also file a paper copy of pipeline base plan maps with the Commission.
(6) The Commission may require additional information from an applicant.

Licences
4 The Commission may issue a licence for a gas utility pipeline, if the application meets the applicable requirements.

Reporting to Petroleum Registry

5 A licensee of a gas utility pipeline must report volumetric information in accordance with Directive 7, Volumetric and Infrastructure Requirements, published by the Energy Resources Conservation Board.

Adoption by Reference

6 For greater certainty, the following Directives issued by the Energy Resources Conservation Board apply to gas utility pipelines
(a) Directive 038: Noise Control,
(b) Directive 041: Adoption of CSA Z662-03, Annex N, as Mandatory
(c) Directive 056: Energy Development Applications and Schedules, as indicated in section 3
(d) Directive 060: Upstream Petroleum Industry Flaring, Incinerating, and Venting.
(e) Directive 071: Emergency Preparedness and Response Requirements for the Petroleum Industry.