IN TIffi MATTER OF the Utilities Commission Act, S.B.C. 1980, c. 60, as amended and IN TIffi MATTER OF an Application by BC Gas Inc. BEFORE: J.G. McIntyre, ) Chairman; ) J.D.V. Newlands, ) Deputy Chairman; ) April 10, 1991 N. Martin, ) Commissioner; and ) W.M. Swanson, Q.C., ) Commissioner ) o R D E R WHEREAS: A. Pursuant to the Commission's Rules for the filing of Energy Supply Contracts under Section 85.3 of the Utilities Commission Act, BC Gas Inc. ("BC Gas") on February 26, March 1, 7 and 25 and April 8, 1991, applied to the Commission for approval of a number of natural gas supply contracts to be effective November 1, 1991; and B. The supply contracts provide for a diversified long-term supply of natural gas to the BC Gas core market, as summarized in Appendix A attached to this Order; and C. The Commission has reviewed the supply contracts and supporting material and is satisfied that the contracts conform to the Rules and are in the public interest. NOW THEREFORE the Commission hereby orders as follows: 1. The natural gas supply contracts described in Appendix A to this Order are approved and accepted for filing pursuant to Section 85.3 of the Act and the Rules. 2. A review of contract reserves or contract deliverability, depending on the nature of the contract, will be conducted by the Ministry of Energy, Mines and Petroleum Resources pursuant to Rule 1.3. If the Ministry review identifies any reserve or deliverability deficiency in any of the contracts, the Commission may require further action by the contracting parties. 3. By separate Order the Commission will consider the competitiveness of purchase gas prices for each contract following negotiations between BC Gas and its suppliers. These prices, effective November 1, 1991, are to be filed with the Commission by July 1, 1991 and will be reviewed pursuant to Rule 2.4.3. . . ./2 SIXTH FLOOR, 900 HOWE STREET. VANCOUVER, B.C, V6Z 2N3, CANADA, TELEPHONE: (604) 660-4700, TOLL FREE 1-800-663-1385, FACSIMILE (604) 660-1102
2 E-4-91 4. BC Gas will file with the Commission for approval by August 1, 1991, an application which describes the method for translating gas purchase costs to customer rates. The Commission does not, on the basis of the information provided, necessarily accept the demand/commodity structure incorporated in the gas purchase contracts as just and reasonable from a rate-making perspective. The Commission accepts the demand/commodity structure for gas purchases but will review this matter prior to the commencement of the next gas contract year. DATED at the City of Vancouver, in the Province of British Columbia, this day of April, 1991. BY ORDER Jonn G. McIntyre Chairman fcms Attachment BCUC/Orders/BCG Multiple Gas Contracts
Appendix A BC Gas Natural Gas Supply Contract Filings Supplier Contract Quantity (10"3m"3/day) (years) Kerr-McGee Canada Ltd. 110 Shell Canada Ltd. 283 Penn West Petroleum Ltd. 142 Alberta & Southern Gas Co. Ltd. 1983 Amerada Hess Canada Ltd. 425 Amerada Hess Canada Ltd. 142 Amoco Canada Petroleum Ltd. 795 Canadian Hunter Marketing Ltd. 570 Canadian Hunter Marketing Ltd. 200 Columbia Gas Development of Canada Ltd. 375 Czar Resources Ltd. 283 Czar Resources Ltd. 564 Esso Resources Canada Ltd. 170 Northwest Pacific Energy Marketing Inc. 710 Petro-Canada 708 Total Petroleum Canada Ltd. 100 Unocal Canada Ltd. 115 Unocal Canada Ltd. 465 CanWest Gas Supply Inc. 3965 ------Total 12105 Contract Contract Contract Filing Term Type Date Date -1991 -1 991 15 reserve-based 7-Feb 26-Feb 15 deliverability 11-Feb 1-Mar 15 reserve-based 12-Feb 7-Mar 10 deliverability 20-Feb 25-Mar 10 deliverability 18-Feb 25-Mar 10 deliverability 19-Feb 25-Mar 15 deliverability 8-Mar 25-Mar 1 0 deliverability 8-Mar 25-Mar 10 deliverability 9-Mar 25-Mar 15 deliverability 8-Mar 25-Mar 15 reserve-based 8-Feb 25-Mar 2 deliverability 9-Feb 25-Mar 15 deliverability 8-Mar 25-Mar 10 deliverability 8-Mar 25-Mar 15 deliverability 8-Mar 25-Mar 15 de/iverability 14-Feb 25-Mar 15 reserve-based 7-Mar 25-Mar 15 deliverability 8-Mar 25-Mar 15 deliverability 2-Apr 8-Apr
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