CANADA'S NEB WON'T SUMMON CALIFORNIA OFFICIALS IN GAS DISPUTE

March 16, 1992
Canada's National Energy Board says it won't subpoena California officials to testify at a hearing on gas export licenses to that state. The issue arose during Calgary hearings when the Canadian Petroleum Association asked NEB to call for testimony from officials of Pacific Gas & Electric Co., San Francisco, and a pipeline unit, Pacific Gas Transmission Co. NEB also said it will accept a letter from the California Public Utilities Commission as an official letter of comment. CPA argued

Canada's National Energy Board says it won't subpoena California officials to testify at a hearing on gas export licenses to that state.

The issue arose during Calgary hearings when the Canadian Petroleum Association asked NEB to call for testimony from officials of Pacific Gas & Electric Co., San Francisco, and a pipeline unit, Pacific Gas Transmission Co.

NEB also said it will accept a letter from the California Public Utilities Commission as an official letter of comment. CPA argued that CPUC information and officials should be subject to cross-examination.

NEB said it does have the rights of a Canadian superior court allowing it to request a U.S. court to compel U.S. witnesses to testify. The board was not convinced a U.S. court would cooperate with such a request and questioned the length of time the process would take.

"More important, the board has not been persuaded the evidence CPA wishes to present through witnesses (from U.S. companies) is necessary to this proceeding," NEB said.

Long term export licenses held by Alberta & Southern Gas Ltd., a unit of PG&E, are under review by the NEB at the request of CPA. CPA charges that gas purchases under contract from an Alberta producer pool are not being honored because of pressure from the CPUC.

CPUC has ordered that the Alberta-California pipeline be opened to all buyers in November. Members of a 196 company Canadian producer pool say this violates contracts giving them 75% of pipeline capacity.

Alberta and the NEB have taken regulatory action to limit new spot sales of gas to California buyers unless purchase obligations under long term contracts are met (OGJ, Mar. 2, p. 56).

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