Bill 97 — I .... 6 1 1 ... Second Session, 17Th Legislature, 22 Elizabeth Ii the Legislative Assembly of Alberta Bill 97 the Gas Utilities Amendment Act, 1973 (Legislature 17, Session 2)

L17 S2 5231

Alberta — Bills

1973 Bill 97 i .... 6 1 1 ... Second Session, 17th Legislature, 22 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 97 The Gas Utilities Amendment Act, 1973 THE MINISTER OF TELEPHONES AND UTILITIES First Reading .............................. . Second Reading ............................ . Third Reading ............................. . Printed by QUEEN'S PRINTER for the Province of Alberta, EDMONTON

Bill 97 BILL 97 1973 THE GAS UTILITIES AMENDMENT ACT, 1973 (Assented to , 1973) HER MAJESTY, by.and with the adVike and consent of the Legislative Assembly of Alberta, enacts as follows: 1. The Gas Utilities Act is hereby amended.

Section 2 is amended (

a) by adding the following clause after clause (b): (bI) "butanes" means butanes as defined in The Oil and Gas Conservation Act; (

b) as to clause (f), subclause (ii) by adding after the words "liquefied petroleum gas" the words "( except propane and butanes)" , (

c) as to clause (h), by adding at the end thereof the words ", but does not include butanes", (

d) by adding the following clause after clause (i): (il) "propane" means propane as defined in The Oil and Gas Conservation Act; 3.

Part 1 is amended by striking out the heading "FIELD PRICES OF GAS" and by substituting the heading "GAS PRICES".

Section 6 is amended (

a) as to subsection (1), by striking out all that portion of the subsection preceding clause (

a) and by sub tituting the following: 6.

(1) Notwithstanding the terms of any con tract, the Board upon the application of an inter ested party 'Or a municipality or upon its motion may, and upon an order of the Lieutenant Governor in Council shall, fix and determine the just and reasonable price 'Or prices to be paid for any gas used, consumed, stored or retained within Alberta, and without limiting the foregoing powers and jurisdiction 'Of the Board, the Board mayor shall, as the case may be, fix and determine any or all of the following: (

b) as to subsection (1), by striking out clause (f),

Explanatory Notes I. This Bill will amend

chapter 158 of the Revised Statutes of Alberta 1970.

Section 2 (d), (

f) and (

h) presently read: 2. In this Act, (d) "gas" means all natural gas both before and after it has been subje'cted to any tre3Jtment or process by absorption, purifica tion, scrubbing or otherwise, and includes all fluid hydrocarbons not defined by cIaus'e (

h) as oil; (f) "gas utility" means (

i) any gas pipe line, (ii) any system, works, pla,nt, pipes, equipment or s'ervice for the production, gathering, conveying, transmission, tranporting, delivery, furnishing or supplying of gas by retail or whole sale, either directly or indirectly, to Oil" for the public or any member of the public, whether an individual or a corporation, other rthan the transportation, delivery, furnishing or supply ing by retail or wholesale, either directly or indirectly, of liquefied petll"oleum gas by means of tank car, tank wagon, cylinder or vessel, (iii) any scrubbing plant, and (iv) any system, well, works, plant, equipment or service for the production of gas or capable of producing gas which may be declared by the Energy Resource,s Oonservation Board to be a gas utility; (h) "oil" means crude bitumen and crude oil and all other hydro carbons, regardless of gravity, that are recovered in liquid form from a pool by ordinary production methods; The result of the amendment to clause (

f) will be to make .the Act applicable to sale of pmpane or butanes in presisurized tanks or vessels. The Public Utilities 'Board may neverttheless exclude the sale of propane or butanes ora particular company from the application of the Act OT any provisions of it under 1ts powers in

section 3 of ,the Act. The result of the amendment to clause (

h) is ;to include butanes in the definition of "gas". Propane is already within the definition of "gas". 3. The change of heading is made as a consequence of the amendment to

section 6 ( 1) in this Bill. 4.

Section 6 (1) (

f) and (2) presently read: 6.

(1) Notwithstanding the terms of any contract, the Board upon the application of an interested parrtyor munlcipality or upon its own motion may, and upon an ordell" of the LieutenaIl!t Governor in Council shall, with respect to gas to be used, consumed, stored or retained within Albevta, fix and determine any or all of the following: (

f) the just and reasonable price or prices to be paid for all com modities and services that, pursuant to the provisions of The Oil and Gas Conservation Act, are required to be fixed by the Board;

(2) Notwithstanding any other provisions of this' Act, in fixing and determining the just and reasonable price or prices as provided for in subsection (1), clauses (a), (b), (

g) and (h), the Board is not required or compelled to fix or determine the price or prices for, in respect of, or on the basis of, any indivldual well or wells, or on the value or cost thereof, or the investment therein, or a raJte of return thereon, but may instead fix and de,termine such pri,ce or prices as are applic able ,generally to all wells in a field, or may fix and de,termine different prices paid for gas produced from any classifications or groups, and in the fixing and determining of such price or prices' the Board may adopt any just and reasonable basis or me,thod of arriving at or com puting such price or prices that the Board deems 10 be applicable or proper having regard to all circumstances and factors involved.

Section 6 is in

Part 1 of the Act entitled "Field Prices of Gas". The amendment to subsection (1) is aimed at giving the Public Utilities Board a general power to fix and determine field prices for gas. At present the Board is restricted to the cases specifically enumerated in clauses (

a) to (h). Subsection (1) (

f) is omitted as it does not refer to gas specifically and because the Board has sufficient power under s. 56 of The Oil and Gas Conservation Act to deal with the matters referred to in clause (f).

(

c) by striking out subsection (2) and by substituting the following:

(2) Notwithstanding any other provisions of this Act, the Board may, for the purpose of fixing and determining the just and reasonable price or prices pursuant to subsection (1), adopt any just and reasonable basis or method 'Of arriving at or com puting such price or prices that the Board considers applicable or proper having regard to all the cir cumstances and factors involved.

(3) Where the Lieutenant Governor in Council, pursuant to subsection (1), orders the Board to fix and determine the just and reasonable price or prices to be paid for any gas used, consumed, stored or retained within Alber;ta, the Lieutenant Gover nor in Council may also direct the Board (

a) to mak,e its 'Order fixing and determining the price 'Or priees without notice to any interested parties and without holding a hearing, and (

b) to specify in its order the date on which the price or prices are to come into effect. ( 4) Where the Board, pursuant to an 'Order of the Lieutenant Governor in Council under subsection (3), makes its order without holding a hearing, the Board shall, within a reasonable time after the date on which the price or prices come into effect and after giving notice to any interested parties, hold a hearing f'Or the purpose of reviewing its order and, if necessary, amending or replacing it. 5. The following

section is added after

section 6: 6.1

(1) Where the Lieutenant Governor in Council, pursuant to

section 6, subsection (1), orders the Board to fix and determine the just and reasonable price or prices to be paid for any propane or butanes to be used, consumed, stored or retained within Alberta, the price or prices for the pr'Opane or butanes that is the subj ect of that order and in effect on the date the order is made shall not be increased during the peri'Od between the date of the 'order of the Lieutenant Governor in Council and the effective date of the Board's order under

section 6, subsection (1), unless the Board by an 'Order approves the increased price or prices.

(2) An order of the Board under this

section shall specify the date on which the increased price or prices are to come into effect.

(3) The Board may from time to time amend or replace an 'Order made by it under subsection (1). 6. This Act comes into force on a date to be fixed by Proclamation. 2

5. The new

section 6.1 operates to freeze prices !for propane or butanes in any case where the Government order's the Public Utilities Board Ito fix and determine prkes for such propane or butanes. 2 Title: 1973 (17th, 2nd) Bill 97, The Gas Utilities Amendment Act, 1973

Document details

Collection	Alberta — Bills
Citation	L17 S2 5231
Type	bill
Volume / chapter	L17 S2 5231
Language	en
Format	json
Source	PROVINCIAL
Identifier	7803547d082901937125a614932faa44825d0fd9

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