National Energy Board Cost Recovery Regulations

4.1 (1) Subject to subsection (2) but despite any other provision of these Regulations, no large oil pipeline company, large gas pipeline company or large commodity pipeline company is liable to pay the portion of a cost recovery charge or administration fee payable by the company under section 4 that exceeds 2% of the estimate of the cost of service in respect of the company for the year in question.

(2) Any company referred to in subsection (1) may request the relief from payment referred to in that subsection by filing with the Board a request for relief, which must be filed within the following times:

• (a) in the case of a large oil pipeline company or a large gas pipeline company,

  • (i) for relief in respect of the year 2001, within 30 days after the day on which this section comes into force in respect of those companies, and

  • (ii) for relief in respect of the year 2002 and subsequent years, within 30 days after the day on which the Board notifies the company of the cost recovery charge to be paid by the company in that year; and

• (b) in the case of a large commodity pipeline company, for relief in respect of the year 2002 and subsequent years, within 30 days after the day on which the Board issues an invoice to the company for the administration fee payable in that year.

(3) The company shall include in its request an estimate of the cost of service in respect of the company for the year in respect of which relief is claimed.

(4) Subject to subsection (5), the Board may, after consultation with the company that filed the request, adjust the estimate of the cost of service referred to in subsection (3) if

• (a) the actual circumstances of the company are different in a material respect from the circumstances reported by the company in its request; or

• (b) there is an error or omission in the company’s calculation of that estimate.

(5) Any adjustment in accordance with subsection (4) must be made by the Board

• (a) by March 15, 2001, in the case of a request filed under subparagraph (2)(a)(i); and

• (b) in all other cases, by December 15 in the year in which the request is filed.

(6) Any company that obtains relief under this section shall provide to the Board, on or before August 31 of the following year, its actual cost of service for the year in respect of which the relief is obtained.

(7) If, in respect of any year, relief is obtained under this section by one or more large oil pipeline companies, the Board shall, on or before September 30 of the following year, determine the revised amount of relief for each of those companies, which amount shall be the portion of the revised and adjusted cost recovery charge calculated in accordance with section 17 that exceeds 2% of the actual cost of service for the company for the year in respect of which the relief is obtained.

(8) If, in respect of any year, relief is obtained under this section by one or more large gas pipeline companies, the Board shall, on or before September 30 of the following year, determine the revised amount of relief for each of those companies, which amount shall be the portion of the revised and adjusted cost recovery charge calculated in accordance with section 17 that exceeds 2% of the actual cost of service for the company for the year in respect of which the relief is obtained.