On May 16, 2013, the National Energy Board (“NEB”) released a decision approving the commercial aspects of the proposed Trans Mountain pipeline expansion. The NEB was asked to consider the toll methodology, and terms and conditions that would apply to the expanded Trans Mountain pipeline (“Trans Mountain”) if the pipeline's owner, Kinder Morgan Canada, ultimately decides to undertake the proposed expansion.
According to the decision, the NEB found that the proposed allocation of capacity between firm service and uncommitted service, and the proposed allocation of uncommitted capacity between dock and land destinations, is appropriate. As a result, the NEB found that Trans Mountain would satisfy its common carrier obligations. Further, the NEB found that the open season and negotiation process conducted by Trans Mountain was fair and transparent and that, on balance, the toll methodology proposed by Trans Mountain will produce tolls that will be just, reasonable and not unjustly discriminatory, pursuant to Part IV of the National Energy Board Act (Canada).
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