NEB Rejects Toll Design For Komie North Pipeline

The National Energy Board, in a decision released on January 30, rejected NovaGas's proposed toll design for a proposed pipeline in the Komie North area of the Horn River play in northeastern British Columbia.

The proposed 36 inch pipeline would have run 97 kilometers between the proposed Fortune Creek meter station and the current northern end of the Horn River mainline.

$227 million expansion to the NovaGas system would have an initial capacity of one billion cubic feet of gas per day, expandable to 1.8 bcf.

NovaGas proposed to toll the expansion on a rolled in basis - that is, the capital cost of the expansion would have been added to the rate base for the entire NovaGas system, and the revenue requirement for shipment on that leg of the system would have been done in a manner consistent with the approved rate design.