2023–24 Annual Report of the Commission of the Canada Energy Regulator – Appendix J: Financial Resources Requirements
The CER Act requires companies operating oil and gas pipelines to set aside financial resources to cover the costs of any unintended or uncontrolled release from a pipeline, such as a spill. The financial resources sections of the CER Act reinforce the “polluter pays” principle. Companies are required to maintain financial resources that, at a minimum, match the absolute liability limit applicable to the company. The Pipeline Financial Requirements Regulations (Regulations), which came into force in July 2019, set out absolute liability limits for CER-regulated companies. These absolute liability limits range from $200 million to $1 billion for oil pipelines, $10 million to $200 million for gas pipelines, and $5 to $10 million for other commodity pipelines, depending on factors such as pipeline capacity, diameter, and commodity transported.
The Regulations outline the specific types of financial instruments that the Commission may order companies to maintain, as well as the minimum portion of the financial resources required to be readily accessible to the company. The financial resource types prescribed by the Regulations are as follows:
- Insurance policy;
- Escrow agreement;
- Letter of credit;
- Line of credit;
- Participation in a pooled fund, as referred to in subsection 139(1) of the CER Act;
- Parent company guarantees;
- Surety bond or pledge agreement, or indemnity bond or suretyship agreement;
- Cash or cash equivalents.
The Regulations also state that only authorized in-service pipelines will be considered in the determination of a company’s absolute liability class. Therefore, those pipelines that are not in service are currently exempt from filing an absolute liability limit and financial resources plan.
To ensure compliance with the Regulations, the CER developed filing guidance, and required all companies to file financial resources plans for evaluation. These plans set out the financial resources each company has available to respond to releases and demonstrate how companies meet the financial resources requirements in the CER Act and Regulations. If the plans are insufficient, the Commission has the authority to order companies to maintain additional financial resources.
CER Regulated Companies Financial Resource Plan Evaluation Status:
Company |
Class |
Absolute Liability Limit (ALL) |
Status of Financial Resource Plan Filing |
|---|---|---|---|
1057533 Alberta Ltd. |
Oil Class 3 |
$200,000,000 |
Conditionally approved |
2193914 Canada Limited |
Gas Class 1 |
$200,000,000 |
Approved |
2670568 Ontario Limited |
Not Applicable |
||
6720471 Canada Ltd. |
Gas Class 4 |
$10,000,000 |
Approved |
Alliance Pipeline Ltd., on behalf of Alliance Pipeline Limited Partnership |
Gas Class 1 |
$200,000,000 |
Approved |
Altagas Holdings Inc. for and on behalf of AltaGas Pipeline Partnership |
Not Applicable |
||
ARC Resources Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Astara |
Gas Class 2 |
$50,000,000 |
Approved |
Aurora Pipeline Company Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
Bonavista Energy Corp. |
Not Applicable |
||
Campus Energy Partners Operations Inc. |
Gas Class 1 |
$200,000,000 |
Under Review |
Canada Border Services Agency |
Gas Class 4 |
$10,000,000 |
Approved |
Canadian Natural Resources Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
Canadian Montana Pipeline Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Canlin Energy Corporation |
Not Applicable |
||
Cenovus Energy Inc. |
Gas Class 2 |
$300,000,000 |
Conditionally approved |
Centra Transmission Holdings Inc. |
Gas Class 2 |
$50,000,000 |
Approved |
Champion Pipe Line Corporation Limited |
Gas Class 2 |
$50,000,000 |
Approved |
Chief Mountain Gas Co-op Ltd. |
Gas Class 4 |
$10,000,000 |
Approved |
County of Vermillion River No. 24 Gas Utility |
Gas Class 4 |
$10,000,000 |
Approved |
Crescent Point Energy Corp. |
Gas Class 3 |
$50,000,000 |
Approved |
DR Four Beat Energy Corp. |
Not Applicable |
||
Emera Brunswick Pipeline Company Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
Enbridge Bakken Pipeline Company Inc., on behalf of Enbridge Bakken Pipeline Limited Partnership |
Oil Class 2 |
$300,000,000 |
Approved |
Enbridge Gas Inc. |
Gas Class 2 |
$50,000,000 |
Approved |
Enbridge Pipelines (NW) Inc. |
Oil Class 3 |
$200,000,000 |
Approved |
Enbridge Pipelines Inc |
Oil Class 1 |
$ 1,000,000,000 |
Approved |
Enbridge Southern Lights GP Inc. on behalf of Enbridge Southern Lights LP |
Oil Class 2 |
$300,000,000 |
Approved |
Enercapita Energy Ltd. |
Gas Class 2 |
$50,000,000 |
Approved |
Energy Transfer Operations GP LLC on behalf of Sunoco Pipeline LP |
Gas Class 2 |
$50,000,000 |
Approved |
| Express Pipeline Ltd. | Oil Class 1 | $1,000,000,000 | Approved |
ExxonMobil Canada Ltd. |
Not Applicable |
||
Foothills Pipe Line Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
FortisBC Huntingdon Inc. |
Gas Class 1 |
$200,000,000 |
Under Review |
Forty Mile Gas Co-op |
Not Applicable |
||
Gear Energy Ltd. |
Not Applicable |
||
Genesis Pipeline Canada Ltd. |
Oil Class 2 |
$300,000,000 |
Conditionally approved |
Glencoe Resources Ltd. |
Not Applicable |
||
Great Lakes Pipeline Canada Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
Husky Oil Operations Limited |
Oil Class 2 |
$300,000,000 |
Approved |
ISH Energy Ltd. |
Oil Class 3 |
$200,000,000 |
Approved |
Kinder Morgan Utopia Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
Kingston Midstream Westpur Limited |
Not Applicable |
||
| Kingston Midstream Westspur Limited | Oil Class 2 | $300,000,000 | Conditionally approved |
| Kiwetinohk Energy Corp. | Not Applicable |
||
LBX Pipelines Ltd. |
Oil Class 2 |
$300,000,000 |
Approved |
Lignite Pipeline Canada Corp |
Gas Class 2 |
$50,000,000 |
Approved |
Many Islands Pipe Lines (Canada) Ltd. |
Gas Class 1 |
$200,000,000 |
Approved |
Maritimes & Northeast Pipeline Management Limited |
Gas Class 1 |
$200,000,000 |
Approved |
| Milk River Pipeline Ltd. | Oil Class 2 | $300,000,000 | Approved |
| Minell Pipeline Ltd. | Gas Class 2 | $50,000,000 | Approved |
| Montreal Pipe Line Limited | Oil Class 2 | $300,000,000 | Approved |
| Niagara Gas Transmission Limited | Gas Class 1 | $200,000,000 | Approved |
| NorthRiver Midstream Canada Partner Limited, as general partner and on behalf of NorthRiver Midstream Canada LP | Gas Class 2 | $50,000,000 | Approved |
| NorthRiver Midstream G and P Canada Pipelines Inc., as general partner and on behalf of NorthRiver Midstream G and P Canada Pipelines Limited Partnership | Gas Class 1 | $200,000,000 | Approved |
| NOVA Gas Transmission Ltd. | Gas Class 1 | $200,000,000 | Approved |
| Obsidian Energy Ltd. | Not Applicable |
||
| Omimex Canada, Ltd. | Not Applicable |
||
| Ovintiv Canada ULC | Gas Class 2 | $50,000,000 | Approved |
| Pembina Energy Services Inc. | Gas Class 2 | $50,000,000 | Approved |
| Pembina Prairie Facilities Ltd. | Gas Class 2 | $50,000,000 | Approved |
| Pieridae Alberta Production Ltd. | Gas Class 2 | $50,000,000 | Under Review |
| Pine Cliff Border Pipelines Ltd. | Gas Class 2 | $50,000,000 | Under Review |
| Pine Cliff Energy Ltd. | Gas Class 2 | $50,000,000 | Under Review |
| PKM Cochin ULC | Oil Class 2 | $300,000,000 | Approved |
| Plains Midstream Canada ULC | Oil Class 1 | $1,000,000,000 | Approved |
| Portal Municipal Gas Company Canada Inc. | Gas Class 4 | $10,000,000 | Approved |
| Pouce Coupé Pipe Line Ltd. | Oil Class 2 | $300,000,000 | Approved |
| Prospera Energy Inc. | Not Applicable |
||
| SanLing Energy Ltd | Not Applicable |
||
| SCL Pipeline Inc. | Gas Class 2 | $50,000,000 | Approved |
| Shiha Energy Transmission Ltd. | Not Applicable |
||
| Souris Valley Pipeline Limited | CO2 or Water Class | $5,000,000 | Approved |
| Spartan Delta Corp. | Not Applicable |
||
| St. Clair Pipelines Management Inc. on behalf of St. Clair Pipelines L.P. | Gas Class 1 | $200,000,000 | Approved |
| Steel Reef Pipelines Canada Corp. | Gas Class 2 | $50,000,000 | Approved |
| Strategic Oil & Gas (Strategic Transmission) | Not Applicable |
||
| Strathcona Resources Ltd. | Gas Class 3 | $50,000,000 | Approved |
| Surge Energy Inc. | Gas Class 3 | $50,000,000 | Approved |
| Tamarack Acquisition Corp. | Not Applicable |
||
| TAQA North Ltd. | Not Applicable |
||
| Terra Energy Corp. | Not Applicable |
||
| Tidewater Midstream and Infrastructure Ltd. | Gas Class 2 | $50,000,000 | Under Review |
| Trans Mountain Pipeline ULC | Oil Class 1 | $1,000,000,000 | Approved |
| Trans Québec and Maritimes Pipeline Inc. | Gas Class 1 | $200,000,000 | Approved |
| TransCanada Keystone Pipeline GP Ltd. | Oil Class 1 | $1,000,000,000 | Approved |
| TransCanada Pipelines Limited | Gas Class 1 | $200,000,000 | Approved |
| Trans-Northern Pipelines Inc. | Oil Class 2 | $300,000,000 | Under Review |
| Tundra Oil & Gas Limited | Oil Class 3 | $200,000,000 | Approved |
| Twin Rivers Pulp Ltd. | Other Commodity Class 1 | $10,000,000 | Under Review |
| Vector Pipeline Limited on behalf of Vector Pipeline Limited Partnership | Gas Class 1 | $200,000,000 | Approved |
| Veresen Energy Pipeline Inc. | Gas Class 1 | $200,000,000 | Approved |
| Veresen NGL Pipeline Inc. | Gas Class 2 | $50,000,000 | Approved |
| Vermilion Energy Inc. | Not Applicable |
||
| Westcoast Energy Inc. | Gas Class 1 | $200,000,000 | Approved |
| Westover Express Pipeline Ltd. | Oil Class 2 | $300,000,000 | Approved |
| Whitecap Resources Inc. | Oil Class 2 | $300,000,000 | Approved |
| Yoho Resources Inc. | Not Applicable |
||
| Zibi Community Utility | CO2 or Water Class | $5,000,000 | Approved |
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