Bill 49 — Second Session, 18Th Legislature, 25 Elizabeth Ii the Legislative Assembly of Alberta Bill 49 the Natural Gas Pricing Agreement Amendmeint Act, 1976 (Legislature 18, Session 2)

L18 S2 5621

Alberta — Bills

1976 Bill 49 Second Session, 18th Legislature, 25 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 49 THE NATURAL GAS PRICING AGREEMENT AMENDMEINT ACT, 1976 THE MINISTER OF ENERGY AND NATURAL RESOURCES First Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Second Reading ............................ . Third Reading I====~============================~~====== Printed by the Queen's Printer for the Province of Alberta, EDMONTON

Bill 49 BILL 49 1976 THE NATURAL GAS PRICING AG,REEMENT AMEN'OMENT ACT, 1976 (Assented to , 1976) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1. The Natural Gas Pricing Agreement Act is hereby amended.

Section 1 is amended (

a) as to subsection (1), clause (b), by striking out the words "'as prescribed by or pursuant to the reg· ulations" and by substituting the words "as deter· mined by the Minister", (

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

c) as to subsection 1, clause (0) by adding at the end thereof the words ", subsections (l)and (2) or the regulations under

section 6, clause (c.l), whichever applies to the contract", (

d) by adding the following subsection after subsection (1) :

(1.1) Where any reference is made in this Act ,or any regulation or order under this Act to a month~ whether by its name or not, the reference shall be~ construed to be the peri'Od from 8 :00 a.m. on thE~ first day of Ithat month to 8 :00 a.m. on the first day 'Of the next succeeding month. (

e) as to subsection (4), clause (

a) by striking out thl words "a supplier and producer delivers" and bj substituting the words "a producer supplies and de livers". 3. The following

section is added after

section 5: 5.1 A producer, an original buyer or any ?th~r buyer 0' gas in Alberta or any person operating a pIpehne for th transmission of gas in Alberta shall, upon the request 0

Explanatory Notes I. This Bill will amend

chapter 38 of the Statutes of Alberta, 1975 (Second Session). 2. (a), (

b) and (c):

Section l(1)(b), (

f) and (0) presently re'ad: 1.

(1) In this Act, (b) "Alberta cost of service" with respect to any gas or the movement of any gas means the costs and charges, wherever incurred, (

i) that are attributable to the acquisition of the gas by the original buyer, except the contract field price or the regulated field price, whichever applies, (li) that are associated with the movement and metering of the gas in Alberta, (iii) that are related to any processing required to cause the gas to become marketable gas or that are otherwise related to the supply of the gas, and (iv) that consist of interest or other costs or charges which, under a con tract entered into prior to November 1, 1975, were recoverable by the original buyer from the price at which he sold the gas, or any portion of those costs or charges, as prescribed by or pursuant to the regulations; (f) "designated officer" means an officer of the Department of Energy and Natural Resources, a board, commission or other public body created by

an Act of the Legislature or any member or employee thereof designated by the Minister as the designated officer for the purposes of this Act; (0) "regulated field price" means, with reference to any gas sales contract, the price to be paid under the contract by virtue of the operation of

section 10. (

d) The new subsection (1.1) wil interpret "month" in accord ance with standard invoicing practices in the gas industry. (

e) This corrects a drafting inconsistency in

section 1 (4) (a). 3. The new

section 5.1 provides for the furnishing of information n request.

the Minister ~r a person ~u~horized by the Minister for the purpose, furnIsh to the MInIster or that person any informa tion speeified in the request and relating to (

a) the determination of any Alberta cost of service, or (

b) transa0tions under which price adj ustments are paid or are required to be paid, or (

c) transactions under

section 14.

Section 6, subsection (1) is amended . (

a) by striking out clause (a), (

b) by adding the following clauses after clause (c): (c. 1 ) providing for any matter referred to in

section 10, subsection (3.1); (c.2) exempting the original buye~s under any class of gas sales contracts from the payment of price adj ustments ; (c.3) prescribing standard' methods for the conver sion of volumetric measurements of gas to million Btu's for any purpose related to this Act;

Section 8 is amended . (

a) by striking out the word "prescribed,", and (

b) by striking out the words "or the regulations".

Section 10 is amended (a) (

b) as to subsection (2), clause (a), subclause (ii) by striking out the words "designated officer" wher ever they occur and by s.ubstituting the, word "Minister" , ' by adding the following subsection after subsection (3) :

(3.1) Where all or part of the gas sold under a gas sales contract in any month is resold in Alberta under one or more other contracts, (

a) su bsectioIlJs ( 1) !and (2) do not apply to that gas sales contract with respect to that month, and (

b) the price to be paid for the gas under the gas sales contract for the month and the manner in which any price adj ustment for that month lis to be paid and the persons by whom and to whom it is to be paid, 2

Section 6 '(n (

a) presently reads: 6.

(1) The Lieutenant Governor in Council may make regill~tib~S: (

a) for the purposes of s~ction 1, clause (b); The deletion of subsection (1) (

a) is a consequence of the amend ment to

section 1 (1) (

b) of the Act: see

section 2 (

a) of this Bill. If regulations are made under the proposed clause (c.2), the producers may nevertheless be entitled to apply f'Or payment from the Natural Gas Pricing Agreement Act Fund of an amount equal to the price adjustment.

Section 8 presently reads: 8. Any Alberta cost of service prescribed, determined or estimated pursuant to this Act or the regulations applies notwithstanding any ord'er Mthe Public Utilities Board under The Gas Utilities Act. The amendment here is complementary to the amendments to

section 1 (1) (

b) and

section 6 (1) being made by sections 2 (

a) and 4 (

a) of this Bill respectively. 6.

Section 10 (2) presently reads:

(2) Where a federal-provincial agreement is in effect during any month, the price of gas delivered in Alberta in that month under a gas sales contract for consumption within Alberta shall be (

a) an amount equal to (

i) the Alberta border price for the month plus the price adjustment for the month less (ii) an amount estimated by the designated officer as the amount that would be the Alberta cost of service with respect to the gas and the movement of the gas from the contract delivery pOint to a point on the Alberta border specified by the designated officer if the gas were to be moved between those points and pipeline facilities were available for that purpose, or (

b) an amount equal to the contract field price plus the price adjustment for the month, whichever is the lesser. (

a) References to "designated officer" are being removed from the Act. The only functions of the designated officer are to make estimates of the Alberta cost of service under

section 10 (2) (a) (ii) and

section 14 (3) (a) (

i) of the Act. The Minister will be empowered to make these esti mates as a result of the amendment but he may delegate that function under

section 3 of the Act. (

b) The proposed subsection (3.1) will allow for the determina tion of the regulated field price by regulations under

section 6 'Of the Act in cases where gas is sold more than once in Alberta. (

c) Where an agreement is made under the proposed subsection (5), the producer may nevertheless be entitled to apply for a payment from the Natural Gas Pricing Agreement Act Fund of an amount equal to the price adjustment. .2

shall be determined in accordance with the regulations. (

c) by adding the following subsection after subsection (J,.):

(5) A producer and an original buyer may, with the approval of the Minister, enter into an agree ment under which the original buyer is exempted from the payment of price adjustments under this section.

Section 14, subsection (3), clause (b), subclause (

i) is amended by striking out the words "designated officer" wherever they occur and by substituting the word "Minister" . 8. This Act comes into force on the day upon which it is assented to. 3

Section 14 (3) (b) (

i) presently reads:

(3) Where any gas is delivered to the Minister pursuant to an order under subsection (1), the Minister shall compensate the person to whom the order is directed (

b) in the case of gas intended for consumption within Alberta, in an amount equal to the lesser of (

i) the Alberta border price minus an amount estimated by the designated officer as the amount that would be the Alberta cost of service with respect to the gas and the movement of the gas from the delivery point prescribed in the Minister's order under subsection (1) to a point on the Alberta border specified by the designated officer if the gas were to be moved between those points and pipeline facilities were available for that purpose, and See notes to sections 2(b), 6('

a) and 7 of this Bill. 3 Title: 1976 (18th, 2nd) Bill 49, The Natural Gas Pricing Agreement Amendment Act, 1976

Document details

Collection	Alberta — Bills
Citation	L18 S2 5621
Type	bill
Volume / chapter	L18 S2 5621
Language	en
Format	json
Source	PROVINCIAL
Identifier	81d4887aeb5089d39b0aae9634eac5b8bc46076b

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