NEB — End of Life Cycle Program


Abandonment

TransCanada’s commitment to managing pipeline assets safely and responsibly throughout the life-cycle includes eventual abandonment when pipelines and facilities are no longer necessary for service. With National Energy Board (NEB) oversight and approval, TransCanada collects sufficient funds to ensure there are financial resources available for pipeline abandonment. These funds are set-aside in abandonment trusts for larger pipeline companies, including: TransCanada, NGTL, Foothills, TQM and Keystone. For Great Lakes Pipeline Canada, a letter of credit is used instead to set aside funds for 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.

 

Annual Reporting

TransCanada files Annual Abandonment Reporting Forms for each of its federally-regulated pipelines with the NEB. In addition, Companies that use Trust funds, independent auditors review the annual financial statements of each Trust fund providing an opinion that the financial statements present fairly, in all material respects, the financial position of the Trust Fund for Abandonment of the Pipeline Assets at year-end, and its financial performance for the year then ended in accordance with generally accepted accounting principles. This allows greater transparency for landowners and members of the public by providing actual amounts collected in the year, the year end balances, and demonstrating the investment decisions and actions have complied with the Statement of Investment Policy and Practices (SIPP) filed with the NEB. Click on each pipeline’s link below to view these documents on the NEB site.

 

Trust Investment

The money set-aside for pipeline abandonment is invested by the Trustee according to the SIPPs. TransCanada filed each pipeline’s current SIPP with the NEB in 2015. Any change to a SIPP will be reflected in a revised filing to the NEB.

Each Trust is a “qualifying environmental trust” (“QET”) within the meaning of the Income Tax Act (Canada) and is maintained for the sole purpose of setting aside funds to secure the a pipeline’s reclamation obligations in respect of sites in Canada used primarily for the operation of TransCanada’s pipeline systems.

The purpose of the SIPP is to communicate the investment guidelines and monitoring procedures appropriate to the objectives of the Trust and in accordance with the NEB’s MH-001-2013 Reasons for Decision on Set Aside and Collection Mechanisms and the provisions of the Income Tax Act which govern QETs. For more information on the current investment asset mix and policy, click on the links below to view the related documents on the NEB site.

 

NEB Decision Approving the Pipeline Trust Agreements
See the Decision that includes the Trust Agreements:

 

NOVA Gas Transmission Ltd:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

 Current Statement of Investment Policies and Procedures (SIPP):

 

TransCanada PipeLines Limited:

Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

Current Statement of Investment Policies and Procedures (SIPP):

See Appendix 2: https://apps.neb-one.gc.ca/REGDOCS/Item/View/2557870

 

Foothills Pipe Lines Ltd.:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

 Current Statement of Investment Policies and Procedures (SIPP):

See Appendix 2: https://apps.neb-one.gc.ca/REGDOCS/Item/View/2557871

 

Trans Québec & Maritimes Pipeline Inc.:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

Current Statement of Investment Policies and Procedures (SIPP):

See Appendix 2: https://apps.neb-one.gc.ca/REGDOCS/Item/View/2558208

 

TransCanada Keystone Pipeline GP Ltd.:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

Current Statement of Investment Policies and Procedures (SIPP):

See Appendix 2: https://apps.neb-one.gc.ca/REGDOCS/Item/View/2557760

 

Great Lakes Pipeline Canada:
Annual Funding Form

NEB Approval of Great Lakes Pipeline Canada’s Letter of Credit: https://apps.neb-one.gc.ca/REGDOCS/Item/View/3342431