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Gold/Mining/Energy : KERM'S KORNER

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To: Kerm Yerman who wrote (9929)4/3/1998 5:24:00 PM
From: Kerm Yerman  Read Replies (5) of 15196
 
NEB / Trans Quebec & Maritimes Pipeline Approved

NEB APPROVES AN APPLICATION FROM TRANS QUEBEC & MARITIMES PIPELINE FOR
THE PNGTS EXTENSION

CALGARY, April 3 /CNW/ - The National Energy Board (the ''Board'') today
approved an application by Trans Qu‚bec & Maritimes Pipeline Inc. (''TQM'') to
construct a natural gas pipeline from Lachenaie, Quebec to East Hereford,
Quebec near the New Hampshire border, where the proposed pipeline would
connect with the Portland Natural Gas Transmission System (''PNGTS''). The
project is known as the ''PNGTS Extension''.

In February 1998, the Board submitted to the Minister of the Environment
(the ''Minister'') and the Canadian Environmental Assessment Agency a
Comprehensive Study Report (''CSR''), which was prepared in accordance with
the Canadian Environmental Assessment Act (''CEAA''), with respect to the
project. The report was submitted on behalf of the Board and the Department
of Fisheries and Oceans (''DFO''). On 31 March 1998, the Minister decided,
after having considered the CSR regarding the project and the comments
received from the public, to refer TQM's project back to the Responsible
Authorities for action to be taken under the CEAA.

The Board found that, taking into account the implementation of
appropriate mitigative measures as identified in the public hearing held on
this project and those listed as conditions to the certificate to construct
the pipeline, the project is not likely to cause significant adverse
environmental effects.

On 2 April 1998, DFO, who was involved in navigation and fish habitat
protection with respect to watercourse crossings, informed the Board of its
decision. DFO indicated that it is prepared to perform the functions under
the National Energy Board Act as well as the functions under the Fisheries
Act.

Furthermore, on 2 April 1998, Environment Canada finalized its
environmental screening report regarding the impact of the proposed facilities
on Œle aux Fermiers. In its report, Environment Canada concluded that, taking
into account the mitigative measures to be undertaken and the additional
conditions with respect to the disposition of interests in the island to allow
passage of the pipeline, the portion of the project on Œle aux Fermiers is not
likely to cause significant adverse environmental effects.

The Board approved the construction of 213.2 kilometres (132.2 miles) of
pipeline from Lachenaie to the Canada/U.S. border near East Hereford. It also
approved the installation, for the first year of operation, of a 7.0 megawatt
electric motor-driven compressor unit at Lachenaie and two meter stations, one
at Waterloo and one at East Hereford. For the second year of operation, the
Board approved the installation of an additional 3.2 megawatt electric
motor-driven compressor unit at East Hereford and one gas aftercooler unit at
Lachenaie. The estimated cost of the project is $273.8 million with a planned
in-service date of 1 November 1998.

Beginning 1 November 1998, 4.3 million cubic metres (152.2 million cubic
feet) per day of natural gas would be delivered at East Hereford to supply
markets in the U.S. Northeast and 1.0 million cubic metres (33.7 million cubic
feet) per day would be delivered at Waterloo to supply markets in the Eastern
Townships of Quebec. In the second year of operation, the deliveries would
increase to 5.9 million cubic metres (210.0 million cubic feet) per day for
East Hereford and to 1.4 million cubic metres (48.7 million cubic feet) per
day for Waterloo.

The Board considered the application at a public hearing, held from 17
November to 17 December 1997, in Montreal and Magog-Orford, Quebec. The
hearing was also used as a forum for public participation in the comprehensive
study of the project.
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