Secure Access to Natural Gas Pipelines
NOW THEREFORE BE IT RESOLVED THAT the Alberta Urban Municipalities Association, in conjunction with the Federation of Alberta Gas Co-ops and Gas Alberta, request the governments of Canada and Alberta to develop legislation for their respective regulatory bodies that will provide greater consultation between pipeline owners and municipalities and mandate cooperative measures for the transfer of ownership, as well as to provide financial assistance to maintain certainty of access to natural gas pipelines for town, villages, cities and gas co-ops in Alberta.
WHEREAS sourcing of natural gas is a high priority for towns, villages and natural gas co-ops in Alberta in order to serve our residents;
WHEREAS high volumes of natural gas are available through privately-owned pipelines;
WHEREAS towns, villages and gas co-ops use privately-owned, high-pressure pipelines to supply natural gas to their customers and constituents;
WHEREAS some privately-owned pipelines are being abandoned because they are no longer viable for the owner;
WHEREAS towns, villages and gas co-ops face additional costs and uncertainties because of these abandonments;
WHEREAS these uncertainties limit cost-effective planning and expansion of natural gas systems for towns, villages and gas co-ops at a reasonable cost.
TransCanada and other companies are the current owners of Alberta Gas Trunk Line (AGTL)/Nova pipeline facilities buried across Alberta generations ago.
Across Alberta, many towns, villages and natural gas cooperatives have used these pipelines and facilities to supply natural gas to their communities. Many of these pipelines have become uneconomic to operate for TransCanada and are being scheduled for closure and abandonment. Some of these are located in Lac La Biche County.
If these abandonments are allowed to continue, Albertans in towns and villages will have to absorb additional costs for new infrastructure to replace the abandoned pipelines. In Lac La Biche County’s case, a potential line abandonment will:
- Cost the local gas co-operative $410,000 for a new regulating/metering/odourizing station plus pipeline costs to the new location; and
- Limit any expansion of the Hamlet of Lac La Biche’s natural gas system for future needs.