Lifecycle of a Pipeline – Abandonment
TransCanada has a program in place to set aside money for the eventual abandonment of pipeline and facilities when they are no longer required. We established abandonment trusts for all of our National Energy Board (NEB) regulated pipelines, where funds are deposited to provide funding for the costs associated with abandonment.
The trusts are part of TransCanada’s overall commitment to landowners and communities to ensure the safe, responsible retirement of our assets. With NEB oversight and approval, TransCanada manages these trusts and regularly reports on their status.
The amount to be collected and set-aside each year is approved by the NEB. As at December 31, 2015 the balance of funds set-aside in the trust accounts are provided in the 2015 Abandonment Funding Forms above for each individual pipeline.
TransCanada is required to collect and set aside funds for its federally regulated pipelines under NEB jurisdiction, including the Canadian Mainline, NGTL, Foothills and TQM natural gas pipeline systems and the Keystone crude oil pipeline system.
Customers, which transport natural gas and oil through TransCanada’s Canadian pipeline systems, are levied a surcharge to cover costs associated with the future abandonment of those pipelines. The surcharge is collected and protected in trusts established for each individual pipeline.
The NEB requires a periodic review process, including public participation, to ensure that the appropriate level of funds is collected for pipeline retirement. TransCanada will also perform ongoing assessments to ensure there are adequate funds.
National Energy Board – Financial Aspects of Pipeline Abandonment
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