COURT BLOCKS REVIEW OF BLACKHORSE DECISION

A federal court has overturned a decision by Canada's National Energy Board to review its rejection of a gas export pipeline construction permit for TransCanada PipeLines Ltd. The Federal Court of Canada said NEB showed "a reasonable apprehension of bias" when the board agreed to review a decision rejecting the proposed Blackhorse pipeline extension. The 13 mile pipeline at Chippewa, Ontario, was planned to connect with the Empire State pipeline system.

Oct. 28, 1991

2 min read

A federal court has overturned a decision by Canada's National Energy Board to review its rejection of a gas export pipeline construction permit for TransCanada PipeLines Ltd.

The Federal Court of Canada said NEB showed "a reasonable apprehension of bias" when the board agreed to review a decision rejecting the proposed Blackhorse pipeline extension.

The 13 mile pipeline at Chippewa, Ontario, was planned to connect with the Empire State pipeline system.

CNG Transmission Corp., Clarksburg, W.Va., complained that NEB's decision to review the case was influenced by a private meeting with U.S. pipeline representatives.

CNG and Tennessee Gas Pipeline Co. had proposed that the gas be shipped from

the TransCanada line through an existing connection near Lewiston, N.Y.

The Blackhorse extension was proposed by TransCanada, ANR Pipeline Co., Rochester Gas & Electric Corp., and St. Clair Pipelines Ltd. The $42.3 million line was to have connected TransCanada's Kirkwall line in Ontario with the Empire State line in New York state (OGJ, Aug. 5, p. 19).

Federal Court Justice Bud Cullen said a meeting between NEB Chairman Roland Priddle and executives of U.S. companies involved could be described at best as an extremely indiscreet mode of proceeding.

Cullen's ruling also bans Priddle and NEB Vice Chairman J.G. Fredette from participating in any review or rehearing of the decision on the Blackhorse extension.