Trans Mountain Pipeline: tariff amendments will provide greater clarity to shippers

The National Energy Board (NEB) has approved the application by Trans Mountain Pipeline ULC to revise its procedures for verifying the validity of nominations for shipments on the Trans Mountain Pipeline. In a decision (MH-002-2012) issued in July 2013, the NEB found that Trans Mountain’s procedures in place at that time were likely contributing to apportionment issues on the pipeline. As a result, the NEB directed Trans Mountain to submit for its approval revised nomination or capacity allocation procedures to address the current apportionment issue or an explanation of why the procedures in place at that time were adequate.

Trans Mountain applied to the NEB in October 2013 requesting approval of revised nomination verification procedures in the tariff for the pipeline. Trans Mountain sought to require shippers to have a corporate officer certify the validity of the nominations, and to limit the amount that each shipper is allowed to nominate based on the volumes of petroleum each shipper has historically tendered to and received from the pipeline. A written hearing process was initiated by the NEB on 11 December 2013.

In its decision [Filing A65317] issued on 8 January 2015, the NEB decided that Trans Mountain’s proposed approach to the tariffs will be fair and equitable for all shippers on the pipeline. Specifically, the NEB decided that the use of historical-based verification limits are appropriate, and that the underlying intent of the nomination verification procedures, as well as the use of an Officer’s Certificate, is reasonable. However, the NEB found that the tariff and Officer’s Certificate required some modifications and directed Trans Mountain to file a revised tariff and Officer’s Certificate as outlined in its Reasons for Decision. The historical-based verification limits will be effective after the revised tariff and Officer’s Certificate are approved by the NEB.

Adapted from press release by Rosalie Starling

Published on 09/01/2015

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