08/38
For release at 2:30 p.m. (MST)
Tuesday 18 November 2008

CALGARY - The National Energy Board (NEB) today approved an application from Westcoast Energy Inc., carrying on business as Spectra Energy Transmission, (Westcoast) to construct the South Peace Pipeline Project.

The proposed South Peace Pipeline Project is an approximately 92 km extension of Westcoast's existing raw gas gathering system near Fort St. John, British Columbia. The new 508 mm (20 inch) diameter pipeline would carry gas from the area south of Fort St. John and the Peace River northward to connect to Westcoast's McMahon processing plant, in Taylor, British Columbia. The project, with an estimated construction value of $95 million, would connect to either end of an existing pipeline across the Peace River.

Canadian Standards Association (CSA) standard Z662-07 establishes essential requirements and minimum standards for the design, materials, construction, operation, and maintenance of gas pipeline systems. The CSA standard has specific provisions for sour gas service pipelines. Westcoast committed to meet all applicable provisions in the standard.

The South Peace Pipeline will be linked to Westcoast's control room in Fort St. John, British Columbia. Westcoast also has a comprehensive Emergency Management Plan that is updated annually and filed with the NEB, and an Operations Security Plan to help ensure the safety of the public and Westcoast employees by maintaining the security of all Westcoast facilities. The South Peace Pipeline will be incorporated into Westcoast's existing Security Plan.

The NEB noted that Westcoast effectively identified potentially affected stakeholders and Aboriginal people with an interest in the project and that consultation has been ongoing since July 2007. The NEB determined that impacts on Aboriginal interests are likely to be minimal and that potential impacts will be appropriately mitigated. The NEB expects Westcoast to provide ongoing information to members of the Kiskatinaw Pipeline Landowners Association, and interested landowners and residents, regarding Westcoast's programs to address issues associated with hydrogen sulphide (H2S. Westcoast committed to a Continuing Education Program to provide public awareness and education for landowners, residents and businesses that could be affected by a release from the South Peace Pipeline.

Along with the Reasons for Decision approving the project, the NEB also released the Environmental Screening Report (ESR) for the South Peace Pipeline Project, as required by the Canadian Environmental Assessment Act (CEA Act).

After a draft ESR was circulated for public comment on 25 September 2008, the final ESR concluded that with the implementation of Westcoast's environmental protection procedures and mitigation measures, and the NEB's recommendations, the Project is not likely to cause significant adverse environmental impacts.

The NEB issued Hearing Order GH-3-2008 on 12 March 2008 and held a public hearing in Dawson Creek, British Columbia on 26 August 2008.

The NEB is an independent federal agency that regulates several parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade.

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For further information:

Andrew Cameron ()
Communications Officer
Telephone: 403-299-3930
Telephone (toll free): 1-800-899-1265

Related documents:

Reasons for Decision GH-3-2008 [Filing A20473]
All Regulatory Documents under: Facilities, Gas, Westcoast Energy Inc., 2008 Application, 2008-02-27 - Application to construct and operate the South Peace Pipeline Project (GH-3-2008) [Folder 500910]