2023–24 Annual Report of the Commission of the Canada Energy Regulator – Appendix I: Abandonment Funding and Set-Asides
All pipeline companies regulated by the CER are obligated to adhere to the Canadian Energy Regulator Onshore Pipeline Regulations. These regulations encompass a systematic approach to pipeline management, including provisions for abandonment. In addition, the CER oversees applications for pipeline abandonment under section 241 of the CER Act, ensuring that companies allocate sufficient funds to cover future abandonment costs (section 242 of the CER Act). Companies are actively responsible for proactively managing their obligations related to setting aside and collecting abandonment funds.
As part of its oversight, the CER periodically reviews companies’ abandonment cost estimates - typically every five years to ensure that appropriate financial instruments are in place to secure these funds.
Companies using Letters of Credit or Surety Bonds
Table I.1 lists those companies that use a letter of credit or surety bond to fund their abandonment cost estimate or have been exempt from setting aside abandonment fundsFootnote 4. The table includes the amount and type of each associated financial instrument, the previous abandonment cost estimate, and the new abandonment cost estimate issued on 27 March 2024. The Commission gave companies until 8 May 2024 to file amended or replacement letters of credit or surety bonds based on the new abandonment cost estimates, inflated to 2028 dollarsFootnote 5.
Table I.1
| Company | Financial Instrument | Previous Abandonment Cost Estimate ($) | Financial Instrument Value ($) | Abandonment Cost Estimate Issued on 27 March 2024 ($) |
|---|---|---|---|---|
| 1057533 Alberta Ltd. | LOC | 855,173 | 855,173 | 9,051,590 |
| 2670568 Ontario Ltd. | SB | 171,694 | 171,694 | 420,153 |
| 6720471 Canada Ltd. | LOC | 45,000 | 45,000 | 983,805 |
| AltaGas Holdings Inc. for and on behalf of AltaGas Pipeline Partnership | SB | 1,875,849 | 1,875,849 | 3,443,563 |
| ARC Resources Ltd. | LOC | 1,893,204 | 1,893,204 | 4,702,652 |
| Astara Energy Corp. | LOC | 80,156 | 80,156 | 367,799 |
| Bonavista Energy Corporation | LOC | 18,185 | 18,185 | 132,435 |
| Campus Energy Partners Operations Inc. | SB | 17,462,044 | 17,462,044 | 36,555,125 |
| Canada Border Services Agency | Exempt | 4,417 | N/A | 231,307 |
| Canadian Natural Resources Limited | SB | 1,649,028 | 1,649,028 | 17,904,070 |
| Canadian-Montana Pipe Line Company | SB | 293,740 | 300,000 | 503,051 |
| Canlin Energy Corporation | LOC | 101,557 | 101,557 | 1,661,771 |
| Cenovus Energy Inc. | LOC | 10,233,571 | 10,233,571 | 12,163,422 |
| Champion Pipe Line Corporation Limited | LOC | 14,009,422 | 14,009,422 | 15,558,872 |
| Chief Mountain Gas Co-op Ltd. | Previously Exempt | 2,764 | N/A | 105,915 |
| County of Vermilion River No. 24 Gas Utility | Previously Exempt | 8,288 | N/A | 153,743 |
| Crescent Point Energy Corp. | LOC | 346,878 | 346,878 | 945,835 |
| Enercapita Energy Ltd. | LOC | 1,527,861 | 1,527,861 | 1,604,276 |
| Energy Transfer Operations GP LLC on behalf of Sunoco Pipeline LP | SB | 1,003,925 | 1,003,925 | 1,227,668 |
| ExxonMobil Canada PropertiesFootnote 6 | LOC | 15,719,000 | 15,719,000 | 12,876,056 |
| FortisBC Huntingdon Inc. | LOC | 115,754 | 115,754 | 140,321 |
| Gear Energy Ltd. | LOC | 217,155 | 217,155 | 416,262 |
| Great Lakes Pipeline Canada Ltd. | LOC | 12,586,000 | 12,586,000 | 18,513,363 |
| ISH Energy Ltd. | LOC | 3,046,924 | 3,046,924 | 10,709,332 |
| Kiwetinohk Energy Corp. | LOC | 362,000 | 362,000 | 559,876 |
| LBX Pipeline Ltd. | LOC | 3,198,336 | 3,198,336 | 3,478,042 |
| Lignite Pipeline Canada Corp. | SB | 1,426,320 | 1,426,320 | 632,046 |
| Many Islands Pipe Lines (Canada) Limited | Previously Exempt | 116,675,433 | N/A | 72,322,991 |
| Minell Pipeline Limited | Previously Exempt | 880,000 | N/A | 6,904,292 |
| NorthRiver Midstream G and P Canada Pipelines Inc., as general partner and on behalf of NorthRiver Midstream G and P Canada Pipelines Limited Partnership | LOC | 1,462,274 | 1,462,274 | 2,683,698 |
| Obsidian Energy Ltd. | LOC | 922,150 | 922,150 | 450,019 |
| Omimex Canada, Ltd. | LOC | 146,743 | 132,950 | 46,958 |
| Ovintiv Canada ULC | SB | 5,977,940 | 5,977,940 | 14,099,354 |
| Pembina Energy Services Inc. | LOC | 6,004,973 | 6,004,973 | 9,025,817 |
| Pembina Prairie Facilities Ltd. | LOC | 31,102,297 | 31,102,297 | 62,504,286 |
| Pieridae Alberta Production Ltd. | LOC | 332,477 | 332,477 | 565,257 |
| Pine Cliff Border Pipelines Limited | LOC | 704,000 | 704,000 | 5,591,726 |
| Pine Cliff Energy Ltd. | LOC | 127,250 | 127,250 | 410,312 |
| Pipestone Energy Corp. | LOC | 11,600 | 11,600 | N/AFootnote 7 |
| Portal Municipal Gas Company Canada Inc. | Exempt | 760 | N/A | 333 |
| Pouce Coupé Pipe Line Ltd. (Northwest System) | LOC | 172,343 | 172,343 | 469,667 |
| Prospera Energy Inc. | LOC | 90,726 | 90,726 | 196,209 |
| SCL Pipeline Inc. | LOC | 259,288 | 259,288 | 430,330 |
| Shiha Energy Transmission Ltd. | LOC | 192,026 | 192,026 | 2,482,597 |
| Spartan Delta Corp. | LOC | 54,000 | 54,000 | 221,543 |
| Steel Reef Infrastructure Corp. | SB | 2,906,136 | 2,906,136 | 7,525,318 |
| Strathcona Resources Ltd. | LOC | 291,292 | 291,292 | 752,868 |
| Surge Energy Inc. | LOC | 31,795 | 31,795 | 1,603,781 |
| Tamarack Acquisition Corp. | LOC | 43,980 | 43,980 | 374,008 |
| TAQA NORTH by its managing partner TAQA NORTH Ltd. | LOC | 1,450,075 | 1,450,075 | 1,515,511 |
| Tidewater Midstream and Infrastructure Ltd. | LOC | 2,176,365 | 2,176,365 | 3,446,936 |
| Tundra Oil & Gas Limited for and on behalf of Tundra Oil & Gas Partnership | LOC | 72,812 | 72,812 | 290,790 |
| Twin Rivers Pulp Ltd. | Previously Exempt | 0 | 0 | 2,875,261 |
| Veresen Energy Pipeline Inc. | LOC | 3,326,412 | 3,326,412 | 4,937,088 |
| Veresen NGL Pipeline Inc. | LOC | 1,761,889 | 1,761,889 | 2,662,203 |
| Vermilion Energy Inc. | LOC | 241,490 | 242,000 | 551,811 |
| Whitecap Resources Inc. | LOC | 1,255,752 | 1,255,752 | 1,951,439 |
| Yoho Resources Inc. | LOC | 50,000 | 50,000 | 205,026 |
| Zibi Community Utility | LOC | 268,070 | 268,070 | 214,200 |
For financial instruments, LOC = letter of credit; SB = surety bond
Companies using Trusts
Table I.2 lists those companies that use a trust to fund their abandonment cost estimate. The table includes each company’s previous abandonment cost estimate, collection period, the trust balance as of 31 December 2022Footnote 8, and the new abandonment cost estimate issued on 27 March 2024. The collection periods shown were under review as of 31 March 2024. The Commission will issue its final decision on updated collection periods in fiscal year 2024-25 in Part 2 of the Five-Year Review of Abandonment Cost Estimates and Set-Aside and Collection Mechanisms 2021. Companies will then have to update the annual amount that they contribute to their trusts, based on their new abandonment cost estimates and collection periods.
Table I.2
Company |
Previous Abandonment Cost Estimate ($) |
Collection Period (Years)Footnote 9 |
2022 Close Balance ($) (Actual) |
Abandonment Cost Estimate Issued on 27 March 2024 ($) |
|---|---|---|---|---|
| 2193914 Canada Limited | 6,689,261 | 35 | 1,369,000 | 12,860,075 |
| Alliance Pipeline Ltd., as general partner for and on behalf of Alliance Pipeline Limited Partnership | 364,940,000 | 40 | 78,996,739 | 587,731,326 |
| Aurora Pipe Line Company Ltd. | 57,840 | 40 | 15,360 | 349,413 |
| Centra Transmission Holdings Inc. | 22,226,090 | 40 | 7,315,000 | 30,803,647 |
| Emera Brunswick Pipeline Company Ltd. | 12,781,000 | 20 | 6,607,000 | 36,252,444 |
| Enbridge Bakken Pipeline Company Inc., on behalf of Enbridge Bakken Pipeline Limited Partnership | 22,300,000 | 25 | 5,226,000 | 31,367,962 |
| Enbridge Gas Inc. | 103,187 | FF | 90,434 | 235,799 |
| Enbridge Pipelines (NW) Inc. | 45,000,000 | 12 | 20,485,000 | 98,945,130 |
| Enbridge Pipelines Inc. | 1,743,200,000 | 40 | 331,536,000 | 2,446,585,854 |
| Enbridge Southern Lights GP Inc. on behalf of Enbridge Southern Lights LP | 177,900,000 | 40 | 30,455,000 | 261,845,974 |
| Express Pipeline Ltd. | 99,300,000 | 40 | 16,498,007 | 86,891,525 |
| Foothills Pipe Lines Ltd. | 244,720,000 | 30 | 72,604,000 | 380,687,059 |
| Genesis Pipeline Canada Ltd. | 3,114,576 | 40 | 2,093,285 | 9,662,436 |
| Kinder Morgan Utopia Ltd. | 1,104,300 | 21 | 259,135 | 1,311,608 |
| Kingston Midstream Virden Limited | 3,169,331 | 40 | 1,121,000 | 10,507,662 |
| Kingston Midstream Westspur Limited | 51,931,666 | 25 | 10,994,000 | 76,222,688 |
| Maritimes & Northeast Pipeline Management Ltd. | 166,800,000 | 20 | 97,804,800 | 187,467,344 |
| Milk River Pipeline Ltd. | 2,751,021 | 40 | 901,332 | 7,379,616 |
| Montreal Pipe Line Limited | 19,873,239 | 40 | 5,471,756 | 61,371,755 |
| Niagara Gas Transmission Limited | 6,871,346 | 35 | 1,393,000 | 7,890,583 |
| NorthRiver Midstream Canada Partner Limited, as general partner and on behalf of NorthRiver Midstream Canada LP | 1,001,761 | 40 | 205,359 | 2,593,319 |
| NOVA Gas Transmission Ltd. | 2,535,333,000 | 30 | 707,019,000 | 5,203,697,226 |
| PKM Cochin ULC | 28,000,000 | 20 | 12,265,350 | 105,855,977 |
| Plains Midstream Canada ULC | 47,596,710 | 40 | 12,267,546 | 210,402,113 |
| Pouce Coupé Pipe Line Ltd. (Northern System) | 13,750,779 | 15 | 6,128,864 | 20,913,245 |
| Pouce Coupé Pipe Line Ltd. (Pouce Coupé System) | 4,014,587 | 15 | 1,890,316 | 7,183,125 |
| Souris Valley Pipeline Limited | 3,309,572 | FF | 3,925,708 | 5,944,404 |
| St. Clair Pipelines Ltd. | 1,359,792 | 35 | 368,109 | 1,094,243 |
| Trans Mountain Pipeline ULC | 367,820,000 | 35 | 92,266,304 | TBDFootnote 10 |
| Trans Québec and Maritimes Pipeline Inc. | 115,494,596 | 25 | 36,445,000 | 162,399,840 |
| TransCanada Keystone Pipeline GP Ltd. | 268,100,000 | 25 | 83,192,000 | 412,604,118 |
| TransCanada PipeLines Limited | 2,904,930,000 | 25 | 1,148,560,000 | 4,133,159,254 |
| Trans-Northern Pipelines Inc. | 87,020,000 | 40 | 25,302,245 | 160,818,666 |
| Vector Pipeline Limited on behalf of Vector Pipeline Limited Partnership | 8,500,000 | 35 | 1,270,000 | 7,702,872 |
| Westcoast Energy Inc. (Transmission System) | 363,600,000 | 40 | 73,399,315 | 854,191,998 |
| Westcoast Energy Inc. (Gathering and Processing System) | 446,100,000 | FF | 42,348,649 | 18,520,357 |
| Westover Express Pipeline Limited | 34,588,117 | 38 | 5,732,000 | 49,821,242 |
For the collection period, FF = Fully Funded
- Date modified: