The National Energy Board on Friday approved the Enbridge Pipelines Inc. application to construct and operate the Canadian portion of the Alberta Clipper Expansion Project.

The Alberta Clipper project is a new 1,607 kilometer (km) oil pipeline from Hardisty, Alberta to Superior, Wisconsin. The Canadian portion of the project involves the construction and operation of facilities including approximately 1,078 km of new 914 millimeter outside diameter (36 inch) oil pipeline between Enbridge's Hardisty Terminal and the Canada - United States border near Gretna, Manitoba. The pipeline would have an initial capacity of 71,500 cubic meters per day (450,000 barrels per day). The estimated cost of the project is $2 billion with construction to be completed by the end of December 2009.

In making its decision, the Board was presented with evidence from intervenors on many issues including impacts to Aboriginal peoples and the impact of the project on domestic interests.

"The Board is satisfied from the evidence that the Alberta Clipper facilities are, and will be, required by the present and future public convenience and necessity and therefore find that approval of Alberta Clipper is in the public interest," said the Board in the Reasons for Decision.

"Today's decision marks another significant step for Enbridge in providing our customers with strategic alternatives for the marketing of Canadian crude," said Patrick D. Daniel, Enbridge's President and Chief Executive Officer. "The Alberta Clipper pipeline is the largest expansion project in Enbridge's history and demonstrates our commitment to accelerating energy delivery throughout North America. Together with our Southern Access project, Alberta Clipper will ultimately deliver an incremental 1.2 million barrels-per-day from Alberta to Eastern Canadian markets and U.S. refineries throughout the Midwest, the mid-continent and the U.S. Gulf Coast."

The NEB attached a number of conditions to the approval of this project, including one that requires Enbridge to conduct an emergency response exercise at its South Saskatchewan River crossing. This condition is in response to public concerns raised during the hearing process. The exercise tests response procedures, equipment, timing, safety procedures, communications systems, training of company personnel, and the effectiveness of continuing education programs. This is to be completed within six months of the start of operation and a report on the test must be filed with the NEB.

During the public hearing process, a number of organizations and groups, who had been registered as intervenors in the hearing, reached settlement agreements with Enbridge. The Manitoba Pipeline Landowners Association and the Saskatchewan Association of Pipeline Landowners both reached settlement agreements with Enbridge prior to their planned oral hearing date. Evidence the two groups had previously filed was treated as a letter of comment. Three Aboriginal groups (the Red Pheasant First Nation, the Keeseekoose First Nation and the Poundmaker First Nation) also reached settlement agreements with Enbridge prior to their oral participation in the hearing.

Public hearings into the Alberta Clipper project began in Calgary on Nov. 5, 2007, and included an oral hearing in Regina before concluding back in Calgary on Nov. 26.

The NEB is an independent federal agency that regulates parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade.


Related Project
Alberta Clipper Project
Facility Type: Pipeline Owner: Enbridge
Scope: Expansion Location: Hardisty, Alberta to Superior, Wisconsin Canada