An epic battle with multiple fronts is shaping up in Canada overan appeal by the Northwest Territories government for the NationalEnergy Board to take jurisdiction over the Nova pipeline grid awayfrom Alberta.

While an extension was granted to a deadline for responses, thebiggest natural gas distribution house in western Canada wasted notime in stepping forward into a fray set off by a Nova tollsettlement. Atco Gas says that, like the territories, it too isunhappy with the pact reached earlier this year among Nova and gasproducers, shippers and marketers that were allowed to participatein the negotiations. As operator of almost all of Alberta’s web ofdistribution pipelines and about 800,000 gas users including majorindustrial establishments, Atco reports it already objected to thetoll deal before the Alberta Energy and Utilities Board.

Atco takes no immediate position on the territorial appeal,which demands a sweeping political change to end 45 years ofjealously-guarded Alberta control over the 17,000-kilometer Novagrid. But Atco says the new system of distance-based tolls spellsan “unfair” distribution of transportation costs, with gas usersinside Alberta paying too much compared to shippers using the Novagrid to make out-of-province sales via long-distance pipelines.

Under the old regime of standardized postage-stamp rates, Novacharged C27.7 cents (US18.5 cents) per Mcf regardless of how fargas traveled. In the new system, charges will range this year fromC19.9 cents to 35.9 cents (US13.3-24 cents) for shipments bound forout-of-province destinations via Nova connections withlong-distance pipelines.

Rates also vary with the diameter of pipe that shippers require,and 5% discounts are offered for signatures on long transportationservice contracts of five years. After calling on the AEUB to holdfull-scale public hearings on the Nova settlement, Atco says itwants to be involved every step of the way in any forthcomingprocedures triggered before the NEB by the territorial demand toturn control over transportation of gas across Alberta.

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