Abandonment Funding for Federal Pipelines and Facilities
Beginning in 2008, the National Energy Board (NEB), now the Canada Energy Regulator (CER), initiated the Land Matters Consultation Initiative. As part of this initiative, pipeline abandonment, and the need to ensure funds are available at the end of a pipeline’s life were examined. Following this process, the NEB directed companies it regulates to set aside funds to cover the future abandonment of federally regulated pipelines.
Kingston complies with these requirements for its CER‑regulated pipelines, which include the Westspur and Wapella Systems, by collecting and setting aside funds to ensure that pipelines can be safely and responsibly abandoned when they are no longer in operation.
Further information on the Land Matters Consultation Initiative is available on the Canada Energy Regulator (CER) website at www.cer-rec.gc.ca.
Abandonment funds are typically collected over time through pipeline tolls or surcharges paid by shippers or in the event of a deactivated system through direct contribution by Kingston, allowing funds to be accumulated gradually during operations.
Collected funds are placed into dedicated abandonment trusts, which are separate from Kingston’s operating funds and can only be used for abandonment activities.
For more information about abandonment funding for Kingston’s CER‑regulated pipelines, please contact:
regulatory@kingstonmidstream.com