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ARTICLE · 11 MAY 2009

NEB Denies Toll Application In Milestone Decision

Osler, Hoskin & Harcourt LLP
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On April 2, 2009 the National Energy Board (Board) issued a milestone decision in denying Enbridge Pipelines Inc.'s (Enbridge) application for Tolls and Tariffs on its Line 9 pipeline in the RH-3-2008 proceeding.

CanadaTransport
Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP
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On April 2, 2009 the National Energy Board (Board) issued a milestone decision in denying Enbridge Pipelines Inc.'s (Enbridge) application for Tolls and Tariffs on its Line 9 pipeline in the RH-3-2008 proceeding. The decision is significant both because the Board (i) ruled on its expectations for the appropriate conduct of parties participating in an open season process and (ii) ruled that the applied-for toll structure, favouring one large shipper to the detriment of a small shipper, was unjustly discriminatory.

Background

The Line 9 pipeline provides crude oil transportation service in an east-to-west direction from Montreal, Québec, to Sarnia, Ontario, delivering offshore crude and condensate to Ontario refineries. NOVA Chemicals (Canada) Ltd. (NOVA Chemicals) owns and operates a "flexicracker" at Corunna that utilizes crude oil and condensate delivered by Line 9 as a feedstock to create polyethylene and associated co-products. These products supply many other

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