Shell Canada Limited and Canadian Natural Resources Limited

Transcription

1 Decision D Albian Oil Sands Industrial Complex and June 28, 2017

2 Alberta Utilities Commission Decision D Albian Oil Sands Industrial Complex and Proceeding Applications A001 to A004 June 28, 2017 Published by the: Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: Fax: Website:

3 Alberta Utilities Commission Calgary, Alberta Decision D Albian Oil Sands Industrial Complex and Jackpine Proceeding Mine Power Plant Ownership Transfer Applications A001 to A004 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve applications from to transfer ownership of the Albian Oil Sands industrial complex and the Jackpine Mine Power Plant from Shell Canada Limited to. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission approves the applications. 2 Introduction and background 2. Shell Canada Limited (Shell) is the holder of Industrial System Designation Order U The industrial system designation (ISD) encompasses electric generation, transmission and distribution facilities at the Albian Oil Sands industrial complex. Pursuant to Approval D , 2 Shell also has approval to construct and operate a 160-megawatt power plant designated as the Jackpine Mine Power Plant, located in the Fort McMurray area. 3. (CNRL) notified the Commission that effective May 31, 2017, it will have assumed ownership of the Albian Oil Sands industrial system and the Jackpine Mine Power Plant. Shell and CNRL filed applications with the Commission requesting approval to transfer ownership of the Albian Oil Sands industrial system. The applications were registered on April 28, 2017 and May 10, 2017 as applications A001 and A003, respectively. 4. Similarly, Shell and CNRL filed applications requesting the transfer of the approval to operate the Jackpine Mine Power Plant. The applications were registered on April 28, 2017 and May 11, 2017 as applications A002 and A004, respectively. 5. On May 17, 2017 and June 6, 2017, the Commission issued information requests to CNRL to clarify details of the applications. CNRL responded to those information requests on May 24, 2017 and June 15, 2017, respectively. 1 2 Industrial System Designation Order U , Application , April 27, Power Plant Approval D , Proceeding 21175, Application A001, January 18, Decision D (June 28, 2017) 1

4 Albian Oil Sands Industrial Complex and 3 Discussion 6. In its applications, CNRL stated that Canadian Natural Upgrading Limited (CNUL) would assume operatorship from Shell of the Muskeg River Mine, located within the Albian Oil Sands industrial complex, and the Jackpine Mine Power Plant. CNUL is a wholly-owned subsidiary of CNRL, both of which are incorporated under the Business Corporations Act. CNRL stated that it would hold all necessary regulatory permits and approvals in relation to the Albian Oil Sands industrial complex and Jackpine Mine Power Plant and that CNUL would operate these facilities. 7. CNRL stated that the proposed ownership and operating change would not alter any information submitted by Shell in support of previous applications regarding the industrial complex and power plant. 8. CNRL requested the Commission to rename the industrial complex as Canadian Natural Muskeg River Mine ISD and to rename the power plant as Canadian Natural Jackpine Power Plant. 9. Shell, by way of a Purchase and Sale Agreement, agreed to sell CNUL its entire interest in the Athabasca Oil Sands Project, including Shell s entire interest in the Muskeg River Mine and Jackpine Mine. All other owners of the Athabasca Oil Sands Project consented to the disposition of Shell s entire interest. 10. ATCO Power Limited and ATCO Energy Solutions Limited both own and operate electric facilities within the Albian Oil Sands industrial complex, and were notified by Shell of the industrial system ownership transfer. 4 Findings 11. The Commission has reviewed the applications and has determined that the requested ownership change would not materially affect any technical aspects of the ISD and power plant. 12. In accordance with the requirements of Section 23 of the Hydro and Electric Energy Act, CNRL is incorporated under the Business Corporations Act. Based upon the information provided, CNRL has demonstrated that it is eligible to hold an ISD order and power plant approval in its name. 13. Due to the minor nature of the applications, a notice of application was not issued and a hearing was therefore not required as the Commission considered that its decision or order would not directly and adversely affect the rights of a person pursuant to Section 9 of the Alberta Utilities Commission Act. 14. Based on the foregoing, the Commission considers the ownership transfer to be in the public interest and approves the transfer of the ISD and power plant. 2 Decision D (June 28, 2017)

5 Albian Oil Sands Industrial Complex and 5 Decision 15. Pursuant to Section 4 of the Hydro and Electric Energy Act and sections 2(1)(d) and 117 of the Electric Utilities Act, the Commission approves the applications and grants to CNRL the approval set out in Appendix 1 Industrial System Designation Order D June 28, 2017 (Appendix 1 will be distributed separately). 16. Pursuant to sections 11 and 19 of the Hydro and Electric Energy Act, the Commission approves the applications and grants to CNRL the approval to construct and operate the power plant set out in Appendix 2 Power Plant Approval D June 28, 2017 (Appendix 2 will be distributed separately). Dated on June 28, Alberta Utilities Commission (original signed by) Anne Michaud Commission Member Decision D (June 28, 2017) 3