We were engaged to provide regulatory and policy support throughout a Canada Energy Regulator Application (CER) process for the approval of transportation services and toll methodology for our client’s expanded oil pipeline project.
Our team submitted expert written evidence addressing the reasonableness of the open season process, as well as the rates, risk sharing, and commercial terms detailed in the Facilities Support Agreement, also known as the Precedent Agreement, for the expansion project.
In its Reason for Decision regarding the client’s tolls and tariff, the CER unanimously approved the open season process and toll methodology proposed by our client. The CER concluded that the proposed toll methodology would produce tolls that are just, reasonable, and not unjustly discriminatory.
The CER further determined that the proposed capacity allocation between firm and uncommitted services, and the allocation of uncommitted capacity between dock and land destinations, was appropriate and the expansion project would satisfy its common carrier obligation.
