National Energy Board Cost Recovery Regulations (SOR/91-7)

• 5.2 (1) Subject to subsections (3) and (4), any company that obtains an exemption order under section 58 of the Act in respect of, or a certificate authorizing, the construction of a pipeline shall pay to the Board a levy equal to 0.2% of the estimated cost of construction of the pipeline, as estimated by the Board in its decision issuing the certificate or making the order.

• (2) The levy shall be paid to the Board within 90 days after the date of the Board’s invoice to the company for the levy.

• (3) No levy is payable by a company in respect of the obtaining of the certificate or the exemption order if the company previously obtained a certificate that continues to be in force or an exemption order that continues to apply.

• (4) This section applies to companies that file an application for a certificate or an exemption order after the coming into force of this section.

• 5.3 (1) A company that obtains a permit or certificate under Part III.1 of the Act that authorizes the construction of an international or interprovincial power line shall pay to the Board a levy equal to 0.2% of the estimated cost of construction of the power line, as estimated by the Board in its decision to issue the permit or certificate.

• (2) However, the levy is not payable if

  • (a) the company has previously obtained a permit or certificate that continues to be in force; or

  • (b) the company filed an application for the permit or certificate before the coming into force of this section.

• (3) The levy shall be paid to the Board within 90 days after the date of the Board’s invoice to the company for the levy.

Determination of Board Costs

6 For the purposes of calculating cost recovery charges in accordance with these Regulations, the total costs attributable for a year to the responsibilities of the Board under the Act or any other Act of Parliament are 95 per cent of the aggregate of

• (a) one fourth of the estimated program costs of the Board including the costs of goods and services provided to the Board by other federal departments or agencies, as set out in the Expenditure Plan published in the Estimates of the Government of Canada for the Board’s fiscal year ending in that year, and

• (b) three fourths of the forecasted program costs of the Board including the costs of goods and services provided to the Board by other federal departments or agencies, as prepared for the Expenditure Plan to be published in the Estimates of the Government of Canada for the Board’s fiscal year beginning during that year.

7 The Board shall, on or before September 30 in every year, calculate

• (a) the amount, if any, by which the total program costs determined in accordance with section 6 for the preceding year exceed the actual expenditures of the Board during that preceding year; or

• (b) the amount, if any, by which the actual expenditures of the Board during the preceding year exceed the total determined in accordance with section 6 for that preceding year.

8 The Board shall, in every year, adjust the total costs determined in accordance with section 6 by

• (a) deducting therefrom the amount calculated under paragraph 7(a), if any, or by adding thereto the amount calculated under paragraph 7(b), if any;

• (b) deducting therefrom any costs that are recovered under any other Act of Parliament; and

• (c) deducting from those total costs the total of all administration levies received under subsection 4(4) from large commodity pipeline companies, under subsection 5.1(1) from intermediate commodity pipeline companies, under subsection 5.1(2) from small commodity pipeline companies and in respect of border accommodation commodity pipelines under subsection 5.1(4).

9 [Repealed, SOR/95-540, s. 1]

Deliveries, Transmissions and Cost of Service

• 10 (1) On or before August 31 in every year, each large oil pipeline company and large gas pipeline company shall provide the Board with the following information:

  • (a) a forecast of its deliveries, in cubic metres, for the following year; and

  • (b) its actual deliveries, in cubic metres, for the previous year.

• (2) On or before August 31 in every year, each large power line company and small power line company shall provide the Board with the following information:

  • (a) a forecast of its electricity transmissions, in megawatt hours, for the following year; and

  • (b) its actual electricity transmissions, in megawatt hours, for the previous year.

• (3) On or before August 31 in every year, each intermediate oil pipeline company, intermediate gas pipeline company, small oil pipeline company and small gas pipeline company shall provide the Board with the following information:

  • (a) an estimate of the cost of service of its operations for the current year that are subject to the jurisdiction of the Board; and

  • (b) the actual cost of service for the preceding year of its operations that are subject to the jurisdiction of the Board.

Notification

• 11 (1) On or before September 30 in every year, the Board shall notify

  • (a) each large power line company of the cost recovery charge that will be payable by that company during the following year; and

  • (b) each large oil pipeline company and large gas pipeline company of the cost recovery charge that will, subject to subsection (2), be payable by each of those companies during the following year.

• (2) On or before December 31 in every year, the Board shall notify

  • (a) each large oil pipeline company that obtained relief under section 4.1 in respect of the following year of the cost recovery charge reduction determined under paragraph 14.1(1)(a);

  • (b) each large oil pipeline company that did not obtain relief under section 4.1 in respect of the following year of the cost recovery charge increase determined under paragraph 14.1(1)(b);

  • (c) each large gas pipeline company that obtained relief under section 4.1 in respect of the following year of the cost recovery charge reduction determined under paragraph 14.1(2)(a); and

  • (d) each large gas pipeline company that did not obtain relief under section 4.1 in respect of the following year of the cost recovery charge increase determined under paragraph 14.1(2)(b).

Allocation of Board Time

• 12 (1) On or before September 30 in every year, the Board shall determine for the immediately preceding fiscal year of the Board, on the basis of information provided by its management information systems, the percentage that each of

  • (a) the time spent by officers and employees of the Board on activities directly related to the responsibilities of the Board in respect of oil, oil pipelines, oil products, natural gas liquids and liquefied petroleum gas,

  • (b) the time spent by officers and employees of the Board on activities directly related to the responsibilities of the Board in respect of gas pipelines and natural gas, and

  • (c) the time spent by officers and employees of the Board on activities directly related to the responsibilities of the Board in respect of electricity and international and interprovincial power lines

  is to the total time spent by officers and employees of the Board during that immediately preceding fiscal year on activities related to the responsibilities of the Board under the Act or any other Act of Parliament in respect of which costs are attributed in accordance with section 6.

• (2) For the purpose of subsection (1), the time spent by officers and employees of the Board on activities directly related to the administration of the Board and on activities indirectly related to the responsibilities of the Board referred to in paragraphs (1)(a), (b) and (c) shall be apportioned among each of the amounts of time referred to in those paragraphs, respectively, in the same proportion as each amount of time is to the total time spent by officers and employees of the Board on activities directly related to those responsibilities.

Allocation of Costs

• 13 (1) The Board shall, each year, determine the total amount of costs to be recovered for the following year from large oil pipeline companies by

  • (a) multiplying the percentage determined under paragraph 12(1)(a) by the total costs determined under section 6 and adjusted under section 8; and

  • (b) deducting from the product determined under paragraph (a)

    • (i) the total of the administration levies to be paid during that year under section 5.1 by intermediate oil pipeline companies and small oil pipeline companies, and

    • (ii) the total of the levies to be paid during that year under section 5.2 by large oil pipeline companies, intermediate oil pipeline companies and small oil pipeline companies.

• (2) The Board shall, each year, determine the total amount of costs to be recovered for the following year from large gas pipeline companies by

  • (a) multiplying the percentage determined under paragraph 12(1)(b) by the total costs determined under section 6 and adjusted under section 8; and

  • (b) deducting from the product determined under paragraph (a)

    • (i) the total of the administration levies to be paid during that year under section 5.1 by intermediate gas pipeline companies, small gas pipeline companies and persons or companies operating border accommodation pipelines, and

    • (ii) the total of the levies to be paid during that year under section 5.2 by large gas pipeline companies, intermediate gas pipeline companies and small gas pipeline companies.

• (3) The Board shall, each year, determine the total amount of costs to be recovered for the following year from large power line companies by

  • (a) multiplying the percentage determined under paragraph 12(1)(c) by the total costs determined under section 6 and adjusted under section 8; and

  • (b) deducting from the product determined under paragraph (a)

    • (i) the total of the administration levies to be paid during that year under subsection 5.1(2) by small power line companies, and

    • (ii) the total of the levies to be paid during that year under section 5.3.

Calculation of Cost Recovery Charges

• 14 (1) The cost recovery charge payable by a large oil pipeline company is equal to the amount determined by the formula

  A x B/C

   where

  A

  is the total amount of costs determined in accordance with subsection 13(1);

  B

  is the forecast of deliveries, in cubic metres, of that company for the following year provided to the Board pursuant to paragraph 10(1)(a); and

  C

  is the aggregate of the forecasts of deliveries, in cubic metres, for the following year, of all the large oil pipeline companies, provided to the Board pursuant to paragraph 10(1)(a).

• (2) The cost recovery charge payable by a large gas pipeline company is equal to the amount determined by the formula

  A x B/C

   where

  A

  is the total amount of costs determined in accordance with subsection 13(2);

  B

  is the forecast of deliveries, in cubic metres, of that company for the following year provided to the Board pursuant to paragraph 10(1)(a); and

  C

  is the aggregate of the forecasts of deliveries, in cubic metres, for the following year, of all the large gas pipeline companies, provided to the Board pursuant to paragraph 10(1)(a).

• (3) The cost recovery charge payable by a large power line company is equal to the amount determined by the formula

  A × B/C

   where

  A

  is the total amount of costs determined in accordance with subsection 13(3);

  B

  is the forecast of electricity transmissions, in megawatt hours, of that company for the following year, provided to the Board under paragraph 10(2)(a); and

  C

  is the aggregate of the forecasts of electricity transmissions, in megawatt hours, of all the large power line companies for the following year, provided to the Board under paragraph 10(2)(a).

• (4) [Repealed, SOR/2009-307, s. 14]