Bill No. 72 of 1945. A BILL TO AMEND THE NATURAL GAS UTILITIES ACT NOTE. Paragraph (

a) of

section 1 of the Bill amends the defini­ tion of "pipe line". The new definition for the most

part is the same as the present. The principal .change is the addition of the following words beginning on line 5 'including any pipe line used for the transporting of gas from any field or area where such gas is produced to or through any munici­ pality but ex-cluding any distribution system used for the distribution of any such gas to the consumers in any such municipality". Paragraph (

b) enacts a new definition of "public utility". Clauses (

i) and (ii) corre'ct errors in references to other paragraphs. Clause (iii) extends the present definition by the addition of the last three lines. Paragra:e!!jc»)ntroduces a new definition-"storage area". 8ecti0il2 of the Bill adds a new

section 35a. This enables the Board to make temporary orders in cases where notice of a hearing or investigation into rates, charges or other matters have been given by the Board. The Board may exercise this jurisdiction when of opinion that the public interest or the interest ofa proprietor, et~., of a public utility so requires and after notice has been given and representations heard. Subsection (3) authorizes and directs the Board, when it has completed its investigation and maae its final order, to consider the effect of the interim order and make such adjustments, etc., as may seem just and reasonable.

Provision is made by subsection (4) for any person affected by an interim order who has not received the notice provided for in subsection (1) to apply to the Board to rescind or vary the order. These provisions are made retroactive to March 24th, 1944 (See

section 6).

Section 3 of the Bill introduces a new

section 67a which provides that orders of the Board override the terms of a contract which conflict with the order after it has been served upon the parties to the contract. Subsection (3) pro.vides for a party to co.ntra-ct in conflict with a Board order applying to. the Board to vary or rescind the order. Se'ction 4 of the Bill amends

section 72. (a) Subsection (1) of this

section now reads "Notwith­ standing the terms of rany contract, the Board shall fix and determine," which made the fixing of prices, etc., compul­ sory. The change makes this compulsory only when directed by Order in Council.

ii (

b) The proviso to paragraph (

a) is to take from the Board the duty or power to fix the price of gasoline, the j uri'Sdiction to do so being con~idered doubtful for constitu­ tional Teasons. (

c) Paragraphs (

e) and (

f) added to subsection (1) of

section 72 extend the power of the Board to determine the prices therein mentioned. (

d) The new subsection (la) exempts the BoaTd from the necessity of dealing with individual wells: in fixing prices and authorizes· it to fix prices with respect to all the wells in a field, or different sections of a field or groups of wells in a field.

Section 5 of the Bill enacts a new

section 80a to provide for cases where there may be an overlapping of jurisdiction between the Natural Gas' Utilities Board and the Petroleum and Natural Gas Conservation Board, and provides that in such a case no order of the former Board will be effective until approved by the latteT Board. W. S. GRAY, Legislative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

BILL No. 72 of 1945.

An Act to amend The Natural Gas Utilities Act. (Assented to , 1945.) HIS' MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. The Natural Gas Utilities Act, being

chapter 4 of the Statutes of Alberta, 1944, is hereby amended as to

section 2,- (

a) by striking out paragraph (

h) thereof and by sub­ stituting therefor the following: "(h) 'Pipe Line' means any pipe or any system or arrangement of pipes whereby natural gas is conveyed from any well-head or other place at which it is produced,to any other place, or from any other pla'ce where it is processed or treated to any other place, including any pipe line used for the transporting of gas from any field or area where su~h gas is produced to or through any municipality, but excluding any distribution system used for the distribu­ tion of any such gas to the consumers in any such municipality, and includes all property of any kind used for the purpose of, or in con­ nection with, or incidental to the operation of a pipe line in the gathering, transporting and handling including delivery of natural gas excepting temporary drilling fuel pipe lines and other temporary pipe lines used as a com­ mon practice for the drilling of a well, 're­ working of a well, reconditioning of a well and the operation of a producing well and without restricting the generality of the fore­ going means and includes tanks, surface reser­ voirs, pumps, compressors and compressor stations, pressure measuring and controlling equipment and fixtures of all kinds, flow con­ trolling and measuring equipment and fix­ tures, metering equipment and fixtures, heat­ ing, cooling and dehydrating equipment and fixtures, and without limitation including all other equipment for the efficient and econom­ ical gathering and transportation of natural gas and facilities incidental to delivery";

2 (

b) by striking out paragraph (

k) thereof and by sub­ 'stituting therefore the following: " (k) 'Publi,c Utility' means,- "(

i) any pipe line as defined in paragraph (

h) of this

section ; "(ii) any scrubbing plant as defined in paragraph (

l) of this section; "(iii) any well, any system, and works, and plant, any equipment or service used for the purpose of, or in conne'ction with, or incidental to the production, transportation, purifying, drying, scrubbing, compressing or repressuring nat­ ural gas;"; (

c) by adding immediately after paragraph (

l) thereof the following new paragraph: "(m) 'Storage area' means any specified parcel of land directed by an order of the Board with the approval of the Petroleum and Natural Gas Conservation Board to be used as an area into which natural gas is or may be put for storage." 2. The said Act is further amended by adding ,immediate­ ly after

section 35 thereof the following new section: "35a -

(1) In addition to, and without limiting or re­ 'Stricting any other powers or jurisdiction conferred on it by the provisions of this Act, in any c'ase where notice has been given by the Board of any hearing or investigation (in this subsection referred to as 'the final hearing') to be held or conducted by it for the determination or fixing of rates, prices, ,charges or any other matter or thing within its jur,is­ diction, the Board,- "(

a) if it be of the opinion that the public interest or the interest of any proprietor or of any person affected by the operations of a public utility so requires; and " (

b) after notice to, and hearing any oral or written re­ presentations that may be made by any person inter­ ested in or to be affected thereby,- may make such interim or temporary order or orders rela­ tive to the matters with respect to which notice of a final hearing has been given, as it may deem just and reasonable, to be effective until the determination of the final hearing and the making of the Board's decision or order giving effect thereto (in this subsection referred to as 'the final order'). "

(2) Subject to the provisions of subsection (4), the temporary rates, prices, charges or other matters or things authorized, made, approved, ordered or directed by any such interim or temporary order shall be effective until the mak­ ing of the final order, or until such earlier date a'S the Board may direct. "

(3) The Board is hereby authorized, empowered and directed, on the final hearing, to give consideration to the effect of the operation of such interim or temporary order

3 and in the final order to make, allow or provide for such ad­ justments, allowances Qr other factors, as to the Board may seem just and reasonable. "

(4) Any person interested in Qr affected by any such interim or tempQrary order to. whom notipe may not have been given as provided in paragraph (

b) of ,subsection (1) may, at any time within ten day.s after becoming aware of such interim or temporary Qrder, apply to the Board to vary, amend or rescind the same and the Board may, after notice to Qther 'parties interested and after hearing any oral or written representations ' that may be made by the applicant and any person interested in or affected by the order, either amend, alter or resoind such interim or tempQrary Qrder or dismiss the application as to it may seem just." 3. The said Act is further amended by adding immed­ iately after

section 67 thereof the follQwing new section: "67a.-

(1) Subject to the provisions Qf subsections (2) and (3) any o.rder Qf the Board with respect to any matter over which it has jurisdiction shall Qver~ride the terms, and cQnditions of any ,contract nr o.ther arrangement co.nflicting with the terms of such o.rder and no. terms o.r ,co.nditio.ns o.f any ,contract o.r o.ther arrangement which conflict with the terms Qf such o.rder shall be enforceable or give rise to any cause o.f actio.n by any party against any o.ther party to. such co.ntract o.r o.ther arrangement. "

(2) Any su;ch order shall o.nl,y beco.me effective and o.per­ ate so. as to. vary any such co.ntract o.r o.ther arrangement o.n its being served o.n o.r o.therw,ise co.mmunkated to. each of the parties to suchco.ntract o.r arrangement. "

(3) Any persnn, a party to. any cnntract o.r arrangement the terms o.r 'co.nditions o.f which co.nflict with and are over­ ridden by the terms o.f .any nrder of the Bo.ard, may within ten days after beco.ming aware o.f any such nrder or decisio.n, nr within such further time "as the Board may allo.w, apply to. the Bo.ard to. vary, amend or rescind the o.rder o.r decisio.n, and the Bo.ard shall thereuPo.n, o.n such no.tice, if any, to. Qther parties interested, as it m,ay in its discretio.n think desirable hear the application and either amend, alter o.r rescind the order or decisio.n, o.r dismiss the applicatio.n, as may seem to. it just." 4. The said Act is further amended as to

section 72,- (

a) by striking Qut the wo.rds "Notwithstanding the terms o.f any co.ntract, the Bo.ard shall fix and deter­ mine", where the same occur at the beginning of subsectio.n (1) thereo.f, and by substituting therefo.r the fo.IIQwing: "Notwithstanding the terms of any contract the Bo.ard may and by o.rder of the Lieu­ tenant Go.vernor in Council shall fix and determine" ; (

b) by adding immediately at the end of paragraph (

a) of subsectio.n (1) thereof the following prQvisQ : "PrQvided always that the price o.r prices fixed pursuant to. any of the pro.visions of this paragraph

4 shall not include any price or value of any compon­ ent pa'rt of the natural gas to be extracted therefrom and sold before delivery of the natural gas to a public utility as defined by this Act or by The Public Utilities Act for distribution to the ultimate con­ sumer;" ; (

c) by adding immediately after paragraph (

d) of sub­ section (1) thereof the following new paragraphs,: "(

e) the just and reasonable prices. to be paid for all commodities not hereinbefore provided for over which the Board has jurisdiction accord­ ring to the exigencies of ·each particular case in such manner as· the Board shall see fit; "(/) the just and reasonable prices to be paid for all services over which the Board has juris­ diction." (

d) by adding immediately after subsection (1) thereof the following new subsection: "(la) Notwithstanding any of the other provisions of this Act in fixing and determining the just and rea­ sonable price or prices as provided for in paragraphs (

a) and (

b) of subsection (1), the Board shall not be required or compelled to fix or determine the price or prices for, in respect of, or on the basis of any individual well or wens or of the value or cost thereof or the investment therein or a rate of return thereon but may instead fix and determine such price or prices as shall be applicable generally to all wells in a field, or may fix and determine different prices for or in respect of different sections or areas of a field, or may classify wells in a field in groups and' fix prices paid for natural gas produced from such dassifications or groups and in the fixing and dete'rmining of such price or prices the Board may adopt any just or reasonable basis or method of arriving at or computing such price or prices as the Board may deem to be applicable or proper having regard to all circumstances and factors involved." 5.

The said Act is further amended by adding immediate­ ly after

section 80 thereof, the following new section: "80a. In case any order is made by the Board under any of the provisions of this A'ct concerning any matter over which the Petroleum and Natural Gas Conservation Board, constituted pursuant to the provisions of The Oil and Gas Resources Conservation Act, being _chapter 66 of the Revised Statutes of Alberta, 1942, has concurrent jurisdiction, such order shall- have 'no force or effect until the same has been concurred in by the Petroleum and Natural Gas Conserva­ tion Board." 6. This Act shall come into force on the day upon which it is assented to, and upon so coming into force

section 2 shall be deemed to have been in force at all times on and after the twenty-fourth day of March, 1944. .

No. 72. FIRST SESSION TENTH LEGISLATURE 9 GEORGE VI 1945 BILL

An Act to amend The Natural Gas Utili ties Act. Received and read the First time ........................ . Second time ..................................... . Third time .... HON. MR. TANNER. EDMONTON: A. Shnltka, King's Printer 1946 Title: 1945 (10th, 1st) Bill 72,

An Act to amend The Natural Gas Utilities Act