bc gas utility ltd.
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bc gas utility ltd.
Scott A. Thomson VP, Finance & Regulatory Affairs and Chief Financial Officer 16705 Fraser Highway Surrey, B.C. V3S 2X7 Tel: (604) 592-7784 Fax: (604) 592-7890 Email: scott.thomson@terasengas.com www.terasengas.com Regulatory Affairs Correspondence Email: regulatory.affairs@terasengas.com July 14, 2006 British Columbia Utilities Commission 6th Floor, 900 Howe Street Vancouver, B.C. V6Z 2N3 Attention: Mr. R.J. Pellatt, Commission Secretary Dear Sirs: Re: Terasen Gas Inc. ("Terasen Gas") Application (“Application”) for a Certificate of Public Convenience and Necessity ("CPCN") Seismic Upgrade of the Mission Intermediate Pressure System Response to the British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request (“IR”) No. 1 On June 20, 2006, Terasen Gas filed the Application as referenced above. On June 30, 2006, the Commission responded with a letter and BCUC IR No. 1. Terasen Gas respectfully submits the attached response to BCUC IR No. 1. If there are any questions regarding the attached, please contact Mr. Tom Loski, Director, Regulatory Affairs at (604) 592-7464. Yours very truly, TERASEN GAS INC. Original signed Scott A. Thomson Attachments cc: Registered Intervenors in the TGI 2005 Annual Review Parties Listed on page 25 of the Application Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 1.0 Submission Date: July 14, 2006 Page 1 Reference: Cover Letter dated June 20, 2006 1.1 In its cover letter, Terasen Gas states: “The Company’s current 2004-2007 Performance Based Rates (‘PBR’) Settlement Agreement requires the Company submit CPCN applications for capital investments in excess of $5 million.” The Settlement at page 8 states: “Except in very unusual circumstances, CPCNs will not be filed for projects below $5 million.” A plain reading of the words indicates that the Settlement generally prevents Terasen Gas from filing a CPCN application for projects costing less than $5 million, but is silent with respect to when Terasen Gas is to file a CPCN application. Please explain the basis for Terasen Gas’ position as set out in the cover letter. Response: The Settlement did not specifically state that projects with capital costs in excess of $5 million require a CPCN, however, current practice, accepted by all stakeholders, requires a CPCN for such projects and no changes to that practice were being considered by the parties to the PBR Settlement Agreement. The basis for this position is set out in the Commission Decision attached to Order No. G-7-03 dated February 4, 2003, regarding the Company’s 2003 Revenue Requirements Application. On page 31 of the Decision, under Paragraph 5.1 it states “Projects with budgets greater than $5 million are generally reviewed through a CPCN process and are excluded from regular capital”. The Company believes that nothing has transpired subsequent to that decision that results in a change to that $5 million CPCN condition. The Company is confident that it is required to submit CPCN applications for all projects in excess of $5 million and that this is wholly consistent with the PBR Settlement Agreement. Additionally, the Company is of the view that any changes to the $5 million CPCN threshold would be in violation of the terms of the PBR Settlement Agreement. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 1.2 Submission Date: July 14, 2006 Page 2 If Terasen Gas believes that a CPCN is required for capital investments in excess of $5 million so that such expenditures can receive a project-specific public review, please explain why Terasen Gas believes that the review process and time period that it proposes for the Mission IP System Upgrade Project is adequate for this purpose. Response: Terasen Gas acknowledges that it has requested an expedited review period for the review of this application. However, Terasen Gas believes that sufficient time is available for the Commission to review the merits of this Application, which had been proposed as an upgrade that is a prudent response to a technically quantified bridge infrastructure vulnerability that will have severe impacts on this single feed pipeline that serves 10,000 customers in Mission should a seismic event occur. Construction delays will yield Project cost increases that are expected to be significant, increases difficult to predict based on current market pricing for services of qualified trades, materials, and land values that have each seen unprecedented increases in recent years in British Columbia. All available information sources linked to the real estate/expropriation and construction markets have positioned the upcoming three to five years as times of significant construction and cost escalation, facts that Terasen Gas cannot ignore when postulating how costing might differ if the Project is delayed by any time increment. Terasen Gas is of the opinion that delaying project approval into the fall constitutes financial risk with respect to overall project planning, since much of the work that must be done is related to ascertaining feasibility, and the above noted variables are closely linked to the financial feasibility which Terasen Gas must consider in a prudent manner. As described in the research commissioned by the Ministry of Transportation, the seismic vulnerability of the Mission Bridge will grossly impact the natural gas infrastructure currently on the Mission Bridge should an event occur. Furthermore, other research reports support the risk evaluation that Terasen Gas has completed, which has confirmed that delaying this project induces risk to service disruption due to expected bridge collapse; restoration efforts will be laden with public and worker safety concerns, in addition to incredible expense, expense that has been evidenced after the Loma Prieta earthquake that demonstrated the burden that a mass relight effort can pose when required in a condensed timeframe. In light of the experiential data that other gas utilities on the West Coast of North America have made known, Terasen Gas believes that delaying the commencement of this project induces additional risk that Terasen Gas considers inappropriate and imprudent, based on the window of opportunity that currently exists with respect to the properly planned completion of this Project. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 3 Terasen Gas is of the view that it has demonstrated in its Application that this upgrade is necessary and is in the interests of customers and the public whom, consistent with the Vancouver Low Pressure Replacement Project, Terasen Gas believes would not object to the undertaking of this Project. Terasen Gas believes it is important that the work be carried out as soon as possible to ensure that the integrity and reliability of the system is not compromised. As set out in the Application, over the course of the next several months Terasen Gas will be conducting detailed geotechnical feasibility, environmental, construction, and land acquisition/use studies that will finalize the pipeline routing as well as cost estimates. Terasen Gas is of the view that it is prudent and in the best interest of customers to conduct these studies, however, the Company would not normally choose to incur such significant CPCN project related costs prior to its approval by the Commission. However, given the urgency of the work and in order to ensure that this project can be completed within the timeline and cost projections set forth in the Application, Terasen Gas has undertaken activities, as noted, related feasibility activities that it has deemed to be prudent and appropriate. In order to ensure that the majority of the feasibility costs the Company expects to incur are incurred subsequent to Commission approval, Terasen Gas has requested a Commission Decision by August 1, 2006. Terasen Gas has canvassed stakeholders potentially impacted by the project, including providing stakeholders with copies of the CPCN, and is not aware of any opposition to the CPCN. Additionally, the Company had informed all stakeholders of its intent to submit the CPCN at its last Annual Review and Customer Advisory Council meetings. If the Commission determines that a lengthier review process is required, the Company continues to be of the view that a written review process is appropriate. If any stakeholders do register as intervenors, then a round of Information Requests could be accommodated before the end of July, with a Company response by the end of the first week of August. A written comment process could follow with a Decision being rendered before the end of August. As stated in the response to IR No. 5.5, the Company is of the view that the Commission can render its decision before the feasibility studies are completed. In the event that a Decision is delayed beyond August 1, 2006, the Company will continue to proceed with its feasibility studies as it is of the view that it is reasonable and prudent to do so. If the Commission defers its decision beyond the beginning of August and finds that the CPCN is not in the public interest, the Company believes it is fair and reasonable to recover the costs incurred to perform the feasibility studies from customers. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 2.0 Submission Date: July 14, 2006 Page 4 Reference: CPCN Application 2.1 The CPCN Application at page 16 states that the proposed river crossing will provide additional capacity to handle future load growth. To provide a basis for considering project options, please provide a review of Terasen Gas’ system development plan for providing gas service to customers on the north side of the Fraser River in Mission and vicinity and including the area up to at least the 12 inch transmission pipeline crossing, for at least the next ten years. This review should include the following: − present gas system and gas load, − forecast customer additions, and load growth, − forecast annual and peak hour and day gas demands, in sufficient locational detail for system planning, − options for system reinforcement (including the option of not having an IP crossing at Mission, and the option of upgrading the existing crossing on the basis that the Mission bridge will eventually be seismically upgraded), − for each option, a summary of the system enhancements required over the period, and their capital costs and any impacts on O&M, − a comparison of the financial and the non-financial attributes of the options, − identification of the Terasen Gas’ preferred system development option for the area, and a discussion of why this option is preferred. Response: On an annual basis, Terasen Gas develops 5-year system improvement plans for each of its distribution networks supported by 20-year long-term least cost of service capital addition strategy to ensure adequate capacity to meet current and forecast demands. 20-year plans are updated based on criteria regarding the activity within the specific system; e.g. a major load has been added, a significant SI has been identified within the first two years of the 5 year plan, a routine SI has been identified during the 5 year plan, or a significant alteration of the system is required for operational or third party reasons. The primary purpose of the five-year system improvement plans is to establish the requirements for reinforcement of the existing gas systems to meet the demand of future account growth, customer additions and system expansion. The forecast demands and site specific distribution of growth utilized in our plans are based on information from BC Statistics, municipal Official Community Plans (which define potential future development), construction permits, and projection of gas customer capture rates, historical design peak use rates and actual Terasen Gas Inc. (“Terasen Gas” or the “Company”) Submission Date: Application for a Certificate of Public Convenience and Necessity July 14, 2006 Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Page 5 customer attachments. System improvement alternatives are then developed and financial analyses performed to determine the preferred overall system (inclusive of transmission, intermediate and distribution pressure gas infrastructures) longterm least cost of service option. The information available to Terasen Gas indicates that the Maple Ridge, Mission and Abbotsford areas are experiencing high construction activities, in a variety of different market segments. In addition, the construction of the Golden Ears Bridge is expected to accelerate growth north of the Fraser River and east of Pitt River. These factors along with other information already mentioned are considered in the account growth and demand forecast. Tables 2.1a and 2.1b below shows the current account growth and the corresponding Terasen Gas design demand forecast for Mission and Maple Ridge areas. This data has been taken from the Company’s most recent 20-year plan that was prepared in July 2006. Table 2.1a – Total Residential and Commercial Accounts (Maple Ridge & Mission) Residential & Commercial Accounts 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2015/16 2020/21 2026/27 MAPLE RIDGE MISSION 25,394 11,650 25,919 11,874 26,525 12,166 27,174 12,465 27,864 12,790 28,600 13,107 32,468 14,774 35,519 16,401 38,666 18,266 2020/21 10.61 21.13 27.17 7.48 26.03 2026/27 11.23 22.49 29.14 7.99 28.81 Table 2.1b – Design Loads by Community [1000 m3/h] Community Pitt Meadows Hammond Haney Maple Ridge Mission 2005/06 8.52 16.75 22.01 5.79 18.91 2006/07 8.65 16.81 20.96 5.89 19.24 2007/08 8.78 17.09 21.36 5.99 19.69 2008/09 8.91 17.39 21.79 6.10 20.14 2009/10 9.05 17.70 22.24 6.21 20.63 2010/11 9.20 18.03 22.72 6.34 21.10 2015/16 9.99 19.78 25.23 6.98 23.60 As shown in Diagram 2.1, the Coastal Transmission System (CTS) and the IP lines provide the primary feeds to the distribution networks on the north side of the Fraser River east of the Pitt River. The Mission network is fed from King Station via the Mission IP system; the Pitt Meadows, Hammond, and Haney areas are fed directly from the 323 mm Livingstone-Coquitlam TP line; the Maple Ridge area is fed from Albion Station via the Albion IP line. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Diagram 2.1 Submission Date: July 14, 2006 Page 6 Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 7 To eliminate the seismic concerns associated with the current Mission IP System on the MoT Bridge and Mission IP/DP Station, in a manner which will provide the most prudent cost of service solution to meet long term growth in the Mission – Maple Ridge area, three options have been considered. Each of the three options includes both system integrity related and incremental capacity improvement expenditures. Both Capital and O&M expenditures are provided. In the following Tables 2.1(i) – 2.1 (iii), items which are shaded are system integrity works which are required in order to address the existing Mission IP Seismic concerns. Items which are not shaded are exclusively upgrades deemed necessary to manage system capacity related concerns. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Submission Date: Application for a Certificate of Public Convenience and Necessity July 14, 2006 Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Page 8 Information Request No. 1 Option 1 - Scenario under proposed Mission IP System Upgrade Option 1 considers the replacement of the existing bridge crossing with an HDD crossing under the Fraser River and the removal of the Mission IP/DP Station. The looping of the Mission IP System would be required in the future due to expected demand growth in Mission. The Cedar Station would require a capacity upgrade by the Year 2022. Associated with the removal of the Mission IP/DP Station, a DP loop on 7th Avenue from Cedar Station to Horne Street is required due to the shifting of the natural gas source further away from the seismically vulnerable river bank. As noted above, shaded figures in the table below indicate that these costs are associated with work carried out to address system integrity seismic concerns. In this scenario, these shaded costs are for the work that Terasen Gas is requesting in the Mission IP Upgrade CPCN application. Table 2.1 (i) Option 1: Mission IP River Crossing Replacement Year 2007 Description New 323mm IP Horizontal Directional Drill Fraser River Crossing. Capital Costs $7,351,000 O&M Costs $4,800 2007 1,000m x 219mm DP loop on 7th Avenue from Cedar Station to Horne St. Abandon Mission Station. De-Commission existing 219 mm IP pipe on MoT Bridge Relocation of south approach line-break isolation valve Total Seismic System Integrity Costs 1,600m x 323mm King IP loop on Riverside St. from Clayburn Rd. to Hallert Rd. $677,000 $2,400 $197,000 $13,000 $131,000 $8,369,000 $1,192,000 -$10,000 -$4,800 $0 -$7,600 $3,840 $968,500 $3,120 $501,400 $2,760 2007 2007 2007 2008 2013 2018 2022 1,300m x 323mm King IP loop on Riverside St. from Hallert Rd. to Grace Avenue. 1,150 m x 219mm King IP loop on Riverside St. from Grace Avenue to Abbotsford-Mission Hwy. Capacity Upgrade of Cedar Station Total Capacity Related Costs Total Seismic System Integrity & Capacity Related Costs $148,500 $0 $2,810,400 $11,179,400 $9,720 $2,120 Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 9 Option 2 – Albion IP Extension Option 2 considers the elimination of the Mission IP crossing and the Mission IP/DP Station. This would require looping of the Albion IP line from the CTS to the IP line near the existing Mission Station. The Cedar Station would require a capacity upgrade by Year 2023. Again, due to the elimination of the Mission IP/DP Station, a DP loop on 7th Avenue from Cedar Station to Horne Street is required. Table 2.1(ii) Option 2 Albion IP Extension Year Description 2007 12,300 m x 323mm Albion IP line from Albion Gate via Lougheed Hwy. 2007 9,300 m x 219mm Albion IP line from Albion Gate via Lougheed Hwy. 2007 323mm Albion IP Stave River Crossing (Directional Drill). 2007 1,000m x 219mm DP loop on 7th Avenue from Cedar Station to Horne St.. 2007 Abandon Mission Station 2007 De-Commission existing 219 mm IP pipe on MoT Bridge 2007 Relocation of south approach line-break isolation valve 2023 Capital Cost $9,163,500 O&M Costs $27,360 $4,055,000 $22,320 $500,000 $677,000 $2,160 $2,400 $197,000 $13,000 $131,000 -$10,000 -$4,800 $0 Total Seismic System Integrity Costs Capacity Upgrade of Cedar Station $14,736,500 $148,500 $39,440 $0 Total Capacity Related Costs Total Seismic System Integrity & Capacity Related Costs $184,500 $14,921,000 $0 $39,440 Terasen Gas Inc. (“Terasen Gas” or the “Company”) Submission Date: Application for a Certificate of Public Convenience and Necessity July 14, 2006 Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Page 10 Option 3 – Mission IP Seismic Upgrade following upgrade of Mission Bridge Option 3 considers upgrading the existing 219 mm crossing on the basis that the Mission bridge will eventually be seismically upgraded and the removal of the Mission IP/DP Station. Similar to Option 1, the looping of the Mission IP System would be required in the future due to expected demand growth in Mission. The Cedar Station would require a capacity upgrade by the Year 2021. Again, due to the elimination of the Mission IP/DP Station, a DP loop on 7th Avenue from Cedar Station to Horne Street is required. Table 2.1(iii) Option 3: Mission IP Crossing Seismic Upgrade on MoT Bridge Year Description th Capital Costs O&M Costs 2007 1,000m x 219mm DP loop on 7 Avenue from Cedar Station to Horne St. $677,000 $2,400 2007 Abandon Mission Station. $197,000 -$10,000 2007 Relocation of south approach line-break isolation valve $131,000 $0 2013+ Upgrade existing 219mm IP Line on MoT Mission Bridge in conjunction with MoT seismic upgrade in 2013+ $1,800,000 $0 Total Seismic System Integrity Costs $2,805,000 -$7,600 2008 1,600m x 323mm King IP loop on Riverside St. from Clayburn Rd. to Hallert Rd. $1,192,000 $3,840 2012 1,300m x 323mm King IP loop on Riverside St. from Hallert Rd. to Grace Avenue. $968,500 $3,120 2017 1,150 m x 219mm King IP loop on Riverside St. from Grace Avenue to Abbotsford-Mission Hwy. $501,400 $2,760 2021 Capacity Upgrade of Cedar Station $148,500 $0 $7,397,925 $9,720 $10,202,925 $2,120 Total Capacity Related Costs Total Seismic System Integrity & Capacity Related Costs Note: The above Cost Estimates provided in Tables 2.1 (i – iii) generally have an accuracy of +/- 25%. The activities scheduled for 2007 (shaded) in Option 1, or for the same activities when included with Option 2 or 3, have an accuracy of +/- 10%. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 11 Comparison of Options Terasen Gas has brought forth this application on the belief that the status quo presents an unacceptable seismic risk to customers. Terasen Gas believes that making these integrity improvements to the Mission IP system are necessary and should be implemented without delay. Option 3 was hinged on MoT’s plan to provide seismic safety retrofit and rehabilitation to its Mission Highway Bridge. As this rehabilitation has been delayed to at the very earliest 2013 by the MoT, Option 3 will not address the identified vulnerabilities induced by the Mission Bridge in a timeframe acceptable to the Company. The delay of this Project would continue to expose the Company to risk linked to system failure, and would be inconsistent with the guiding principles outlined in the Company’s Integrity Management Plan. The comparison of the remaining Mission IP River Crossing Replacement (Option 1) and the Albion IP Extension (Option 2) has identified the following: 1. Financial analysis shows the Mission IP River Crossing Replacement is the least cost of service option. 2. The 323 mm and 168 mm Mission IP line has a MOP of 1900 kPa while the 168 mm Albion IP has a MOP of 860 kPa. Albion IP Extension would mean extending an IP line not designed to handle high loads for a long distance. The Albion IP extension would require looping the entire existing IP line from Albion station plus the extension to the existing IP line near Mission Station (a total of 21.6 km). The financial analysis reflects the high costs this option will incur. 3. The Albion IP Extension would entail construction through a congested area along Lougheed Highway in southeast Maple Ridge. 4. The Albion IP Extension will require crossing the Stave River delta area adjacent to the Fraser River. This crossing may impose the same magnitude of seismic risk as MoT bridge. Terasen Gas has not conducted a detailed feasibility assessment of Option 2 due to the overall cost of the option. Costs as presented in Option 2 are deemed conservative at this point. Terasen Gas believes that comprehensive feasibility studies will yield higher overall costs. 5. The Albion IP Extension would mean that southeast Maple Ridge and Mission areas will be served via a single IP line. The consequence of a linebreak is therefore much higher than individual feeds to Maple Ridge and Mission. 6. The Albion IP Extension would shift a large portion of the current King Station load to Albion Station. This would reduce the throughput capacity of the CTS, by shifting the load from the large diameter (762 mm and 1067 mm) Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 12 transmission lines near the supply source to a small diameter (323 mm) transmission line further downstream. As stated in its Application (page 9), Terasen Gas concludes that the appropriate, prudent action is to proceed immediately with a seismic upgrade to the gas system. The Mission IP River Crossing Replacement (Option 1) is recommended as it will implement, in a timely manner, a solution that will ensure reliable service to the gas customers and safety of the general public. As the long range system improvement plans for distribution networks for the Maple Ridge and Mission areas are independent of the alteration to the IP systems, the proposed Seismic Upgrade of the Mission IP System is consistent with the system improvement plans for the Maple Ridge and Mission areas. 2.2 Please explain how the Mission LP System Upgrade Project is consistent with Terasen Gas’ system development plan for the area. Response: The Mission IP System Upgrade Project is consistent with Terasen Gas’ system improvement plan for the area, as explained in the response to Question 2.1. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 3.0 Submission Date: July 14, 2006 Page 13 Reference: CPCN Application, Appendix D 3.1 Further to page 8 of the CPCN Application, please confirm that Terasen Gas has been aware since 1998 that the Intermediate Pressure pipeline on and north of the Mission bridge is vulnerable to a seismic event. Response: Terasen Gas has been aware since December 1998 that the infrastructure north of the Mission Bridge is vulnerable to a seismic event. In 2001, the MoT had indicated that its five-year budget plan included retrofitting this bridge to a safety level of a 1:475 year earthquake event by 2006. At this point, Terasen Gas understood that there were seismic issues on the Bridge itself. In March 2006, Terasen Gas was made aware that retrofitting of the bridge to a safetly level of 1:475 has been delayed to at the very earliest 2013. Also in March, 2006, the specific vulnerability of the bridge was confirmed via the Brybil Report, commissioned by the MoT and provided to Terasen Gas in March 2006. The Brybil Report emphasizes seismic vulnerability such as on Page iv where it is stated that there are “…insufficient expansion seat lengths to accommodate seismic bridge movements. Span collapses are likely once the deck moves beyond the expansion seat length”. Thus, if the span collapses, the pipeline will fail. As a result of the anticipated delay to the retrofitting of the bridge and the emphasis of the seismic vulnerability of the bridge itself, Terasen Gas filed its CPCN application on June 20, 2006. 3.2 Other than the expected timing of the seismic upgrading of the bridge, what if anything has changed since 1998 with respect to the seismic vulnerability of the pipeline system? Response: In order to ensure alignment with stakeholder and industry integrity management expectations, as a prudent operator, Terasen Gas must be proactive to ensure public safety. A seismic event in Seismic Zone 4 is considered by Terasen Gas to be a ‘when’ question versus an ‘if’ question. Terasen Gas wishes to upgrade this infrastructure in a prudent manner, the optimal state of preparedness being to eliminate this known risk as quickly as possible. Terasen Gas wishes to protect its gas facilities from seismic damage induced by this seismically vulnerable bridge. Changes that have occurred post-1998, with respect to this IP System, have involved, as per Page 8 of the CPCN Application, a significant amount of work Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 14 that has been carried out per recommendations contained in the Golder Report submitted. In assessing the return periods cited in this report, the window of a significant seismic event has decreased, while Terasen Gas’ understanding with respect to the seismic vulnerability of the bridge structure has been validated. As indicated in the Brybil Report provided to Terasen Gas in March of 2006, a seismic event is predicted to yield liquefaction related effects that will cause complete loss of service for an indefinite time frame to 10,000 Terasen Gas customers in Mission. Upon receipt of this new information contained in the Brybil report, Terasen Gas submitted this CPCN application. 3.3 Please provide a comparison of the three upgrading Options identified in Appendix D, and update the comparison in terms of estimated cost and other matters. Response: Appendix D identifies the options of: a) the Mission IP River Crossing Replacement, b) the Mission IP Crossing Seismic Upgrade on MoT Bridge, and c) the Minor Upgrades to the Mission IP system on the approaches to the MoT Bridge with no improvement of the bridge crossing. This last option of only minor upgrades is not viable as it does not address the issue of providing secure, reliable gas service to Mission . The three seismic improvement options for consideration are: Option1: Mission IP River Crossing Replacement Option 2: Albion IP Extension Option 3: Mission IP Crossing Seismic Upgrade on MoT Bridge The comparison of these three options is provided in the response to Question 2.1. 3.4 The following consideration is set out on page 7 of Appendix D: “A further consideration is that an earthquake large enough to damage the IP pipeline will likely result in damage to the network of DP pipelines as well. There may be little difference in the length of service interruption considering the time required to mobilize and repair distribution lines compared to making repairs to DP and IP pipelines simultaneously. Further, an earthquake large enough to damage the IP pipeline may also result in considerable damage to customer facilities and could potentially lead to a reduction in the immediate need for gas service to the affected area.” Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 15 In this context, please explain why Terasen Gas believes that installing a new river crossing at this time is necessary. Response: The IP MoT Bridge Crossing is a single feed to the Mission area, and if damaged must be adequately repaired before service to any customer can be provided. In comparison, the DP system is land based and easier access is anticipated, allowing the system to be re-activated on an area-by-area basis. Since the IP pipeline is operating at a higher stress, compared to the gas lines forming the distribution system, it is more likely that the integrity of the IP pipeline will be compromised and flow disrupted due to additional stresses from ground or bridge movement. Considering the location of the IP pipeline, it will be very difficult to gain access to carry out evaluation or repairs until any sustained damage to the MoT Bridge has been substantially completed. In comparison, the gas lines making up the DP system are of much smaller diameter and operate at a much lower stress. They may become damaged from ground movement but they are able to withstand greater deformation than the IP pipeline and hence, although damaged, will likely remain “in service”. As well the DP system is land based and will be more readily accessible which will allow the system to be re-activated on an area-by-area basis. For these reasons, it is true that the distribution system may suffer damage, but without the same consequences as damage to the IP pipeline. As a result of a seismic event there will likely be damage to customer facilities, but it is also likely that many (i.e. most) customers will still be relying on their gas service, especially since they may opt to remain at their homes in this time of difficulty. Although there may be a reduction in demand there will be customers that require gas service which can not be provided unless the IP pipeline is intact. Furthermore, in order to mitigate the more significant consequences of a failure, the new IP pipeline crossing of the Fraser River is proposed. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 4.0 Submission Date: July 14, 2006 Page 16 Reference: CPCN Application, Appendix A 4.1 Further to Table 3.2 on page 11, please provide a cost estimate in approximately the level of detail as to cost categories that are set out in Appendix A (but not necessarily a monthly breakdown) for each of the three components of the project identified on page 1 of the CPCN Application, for the upgrading of the Cedar Station and for any other components of the project. Response: ($,000s) Approximately 2 km - NPS 12 HDD Fraser River Crossing Project Management, Engineering, Inspection, Consultants Land and other Materials Construction $ 1,206 858 951 4,336 $ 7,351 IP / DP System Improvements Approximately 1000 metres of NPS 8 - Cedar to Horne Polyethylene Distribution Loop inclusive of Cedar Station modifications Other (South Valve Relocation, De-commission IP on MoT Bridge) 677 145 $ Mission Station Removal Total before AFUDC, Retirement Costs 4.2 822 197 $ 8,370 The study dated December 23, 2004 in Appendix D appears to show a cost for the horizontal directionally drilled (“HDD”) crossing of $3,000,000. Please reconcile this cost estimate with the estimate in the CPCN Application. Response: The $3,000,000 estimate shown in Appendix D was an order of magnitude estimate (i.e. minimal in depth study) and as such has a high degree of potential variability. The estimate does not address long-term system capacity requirements and assumed simple replacement of the pipe on the bridge with a river crossing of the same size of pipe that is on the bridge. The table on page 10 of Appendix D was prepared to compare different options of seismic upgrade. The options were not equivalent in terms of the level of seismic event security achieved, but were examples to show what order of magnitude of expenditure was needed to achieve a certain level of security. For the CPCN application regarding the HDD crossing of the Fraser River, Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 17 confidence levels and estimate quality were significantly improved as a result of conducting a detailed system capacity study from the information gathered from vendors, contractors, consultants, and Terasen Gas specialists in conjunction with available mapping, review of existing reports, and site visits. 4.3 What would be the cost of a 219 mm (NPS 8) HDD crossing, rather than the proposed 323 mm (NPS 12) crossing? Response: A 219 mm (NPS 8) HDD Crossing would cost approximately $300,000 to 325,000 less than the proposed 323 mm (NPS 12) crossing. Most of this minimal cost reduction is due to less material with a minor cost decrease in construction. All other costs are not dependent on the pipe size. 4.4 The CPCN Application at page 16 states that a 219 mm crossing is needed to meet the growth in needs for 20 years. How long will the existing 168 mm and 219 mm system have sufficient capacity to serve customers? Response: The Mission IP system consists of the following line sections: • 323 mm from King Station to Downes Station • 168 mm from Downes Station to Mission Station • 219 mm crossing on the MoT Bridge • 219 mm from Mission Station to Cedar Station, and • 114 mm from Mission Station to Hatzic Station. With the existing 219 mm river crossing, the Mission IP System has sufficient capacity to meet demand through the winter of 2007-08. After the spring of 2008, the IP line would require 1.6 km of 323 mm, 1.3 km of 323 mm and 1.15 km of 219 mm looping in 2008, 2012 and 2017, respectively. In addition, a capacity upgrade to Cedar Station is required in 2021. 4.5 Will the new HDD crossing be constructed to Intermediate Pressure or Transmission Pressure standards? Why? What would be the differential cost of constructing the HDD crossing to the other pressure standard? Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 18 Response: The HDD Crossing will be constructed to IP standards as a TP requirement is not anticipated. If the HDD crossing were constructed to TP standards, no increase in the cost of the Project would be expected as the specifications of the river crossing pipe are governed by the stress incurred during the pull back of the pipe under the river, rather than by the maximum operating pressure Notwithstanding that the anticipated utilization will be limited to IP, as there is not likely to be any additional cost; Terasen Gas will consider testing the HDD crossing pipe to highest capability of the material. 4.6 The CPCN Application at page 12 states that the $8.848 million cost estimate has an accuracy of + 10 percent. Is Terasen Gas prepared to accept a cap of 110 percent of $8.848 million as the amount of expenditure that would go into rate base? Response: No. Terasen Gas is not prepared to accept a cap as described in the information request. Terasen Gas is of the view that the Project is in the best interest of customers, as described in the Application, and would expect to include 100% of prudently incurred capital expenditures in its rate base. The Company notes that alternative solutions to continue service reliability are either significantly higher or keep the Fraser River crossing at risk for a substantial additional period of time. Furthermore, the potential cost in an emergency response (Section 4.3 of Application) could be $15.7 million and would require 8 months of work before essential service could be restored. Additionally, as set out in the CPCN, site specific geotechnical work is required to be completed in order to establish more definitive cost estimates, which, although not expected, could possibly be outside of the 10% cap. Although the Company is of the view that its current cost estimates are reasonable based on the preliminary evaluations it has performed as described in the Application, Terasen Gas does not think it is reasonable to be held to a cap based upon these estimates as suggested by this Information Request. 4.7 For the HDD portion of the project, would Terasen accept a cap of 110 percent of the cost estimate for the HDD component? Response: No, the Company is of the view that accepting such a cost cap would not be reasonable. Please refer to the response to Question 4.6. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 4.8 Submission Date: July 14, 2006 Page 19 Please explain the basis for each significant component of the cost estimate for the HDD portion of the project, with particular emphasis on the current level of knowledge about subsurface soil conditions at the proposed crossing location and the extent to which the cost estimate was information provided by HDDknowledgeable people based on site-specific conditions at Mission. Response: Significant components of the cost estimate for the HDD portion of the project are: • Project Services (engineering, construction, environmental and land consultants) • Materials • Construction • Land Acquisition The cost estimate for Project Services was based on similar projects adjusted for the anticipated conditions and complexity of this Project. Material cost estimates were established upon consultation with potential vendors and are based on preliminary estimates of quantities and projected market pricing at the time of ordering. The construction cost estimates considered the knowledge of the subsurface soil conditions identified in the 1998 Golder reports and on knowledge of the soils under the Fraser River at locations such as adjacent to the Port Mann Bridge and at the Bedford Channel near Fort Langley. To establish the total length of the HDD, historical recommendations were used to prepare the preliminary design and estimates, notwithstanding that the final requirements can only be determined after the site specific geotechnical work has been completed. This information, combined with the consultations with two independent HDD contractors, was used to forecast the degree of difficulty that could be encountered at Mission and to estimate the cost of the construction portion of the project. The land acquisition portion of the cost estimate was based on preliminary identification of potential land use, potential short-term damage, and historical compensation. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 5.0 Submission Date: July 14, 2006 Page 20 Reference: CPCN Application 5.1 On page 11 and 12, the CPCN Application states that the project is “conceptually planned,” and estimates that $525,000 of work will be required to confirm the construction feasibility of the project. Please provide a breakout of this cost estimate by work item and month of expenditure. Response: The estimated $525,000 of work is broken out by work item and month of expenditure in the Cost Estimate Details contained in Appendix A of the Application. Please refer to the items under “Phase 1 – Justification” excluding: “Pre-CPCN to Date” and “Final CPCN Submittal”. 5.2 On page 12, Terasen Gas recognizes that unforeseen circumstances may result in costs exceeding the $8.848 million estimate for the project. What level of cost would cause Terasen Gas to conclude that the project as proposed is not feasible? Response: Terasen Gas believes that the criteria for a reconsideration of the proposed capital works as set out in the Application would be based on a comparison with the next best alternative, which in the opinion of Terasen Gas, is Option 2 (Albion IP extension). Terasen Gas has determined that the Capacity Related capital costs associated with extending the Albion IP System would cost approximately $14.737 Million. (See Response to IR 2.1, Table 2.1(ii) – Shaded Rows). Should Option 1 be deemed unfeasible or if feasibility studies conclude that seismic system integrity costs associated with Option 1 will exceed $14.737 Million, Terasen Gas will further investigate the Albion Option. As noted in the response to 2.1, Option 1 and 2 are preferred options to Option 3. Option 3 was hinged on MoT’s plan to provide seismic safety retrofit and rehabilitation to its Mission Highway Bridge. As this rehabilitation has been delayed to at the very earliest 2013 by the MoT, Option 3 will not address the identified vulnerabilities induced by the Mission Bridge within an appropriate timeframe. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 5.3 Submission Date: July 14, 2006 Page 21 If Terasen Gas determines that the Mission IP upgrade as proposed is not feasible, what upgrading Option would it implement? Response: Please refer to the response to Question 5.2. 5.4 What is the earliest date when Terasen Gas can substantially complete its evaluation of the construction feasibility of the project and will be able to confirm the project feasibility and cost estimate to the Commission? Response: Terasen Gas expects the earliest date to complete the Construction Feasibility is October 1, 2006. 5.5 Recognizing the date in the response to the previous question, please outline the Regulatory Timetable that Terasen Gas recommends the Commission use to review the CPCN Application. Response: Terasen Gas is of the view that the Commission can review the CPCN in advance of completion of the detailed feasibility study, and as such does not need to await the results of the study before rendering a decision. A decision could be made with a condition based on the results of the feasibility study. Please refer to the response to Question 1.2 for the Company’s proposed regulatory timetable. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 6.0 Submission Date: July 14, 2006 Page 22 Reference: CPCN Application 6.1 Further to pages 23-25 of the CPCN Application, please provide a list of all the agencies and other parties that Terasen Gas has been in contact with regarding the Mission IP Upgrade Project, identify when this contact was made, and provide a summary of the party’s response to the project. Response: Table 6.1 below details the communications that have occurred with all agencies and other parties with regard to the Mission IP Project. Table 6.1 does not include the notification referred to in the Commission letter of June 30, 2006, requesting that all property owners and Parties listed under Public Consultation on page 25 of the Application. Each of these parties were contacted separately by an e-mail notification on Friday, July 7, 2006, advising them that Terasen Gas had submitted this Application which may have an effect upon their property. A link to view Application on the Terasen Gas website and a copy of the Commission June 30, 2006 letter and Information Request No. 1 were attached to this notification. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Submission Date: July 14, 2006 Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Page 23 List of Agencies and Parties Contacted Agency/Party Terasen Representative Contact Information (i.e. phone, address, etc) Date of Contact Summary of Party's Response to Contact 1 CPR Roger De Iaco 23/03/2006 If required, will forward pipeline crossing agreements 2 Sto Lo Nation Bruce Falstead 23/05/2006 Delivered project information to Lands Manager 3 Sto Lo Nation Bruce Falstead 24/05/2006 Responded by email with First Nations information in the Mission area. 4 Matsqui First Nation Bruce Falstead Rod Klopp ph# 403.319.6414 Valerie Sam, Lands Manager Tel. 604.824.2454 or 1.800.665.3224 valerie.sam@stolonation.bc.ca Valerie Sam, Lands Manager Tel. 604.824.2454 or 1.800.665.3224 valerie.sam@stolonation.bc.ca Chief Alice McKay Phone 604-8266145 email matsquiband@shaw.ca 5 Matsqui First Nation Bruce Falstead 6 Matsqui First Nation Bruce Falstead 7 BC Lands BGC Chief Alice McKay Phone 604-8266145 email matsquiband@shaw.ca Cynthia Collins Environmental Manager Matsqui First Nation Phone 604-8266145 email matsquiband@shaw.ca Bob Herath - 604 582 5200 bob.herath@gov.bc.ca 8 BC Lands BC Lands - Integrated Land Management Bureau BC Lands - Integrated Land Management Bureau Vancouver Marine Communications and BGC Mike Wilcox michael.willcox@gov.bc.ca 31/05/2006 07/06/2006 Phone call plus emailed project information (no response) Notified that water act section 9 approval was needed before drilling in Fraser River Party decided that an "approval" and not a "notification" was required under water act section 9; also that a tenure was required from BC Lands BGC Shana Bow - 604 586 4406 shana.bow@gov.bc.ca 30/05/2006 06/06/2006 Party unsure if "approval" or "notification" was require under water act section 9 BGC Sukhdev Randhawa - 604 586 4439 sukhdev.randhawa@gov.bc.ca 09/06/2006 Present Party notified that Fraser River tenure application would take up to 140 days to complete. BGC has been in contact to track progress. BGC 604 666 6011 RMIC-Pacific@pac.dfompo.gc.ca 03/04/2006 Party notified that a notice to shipping request should be submitted, and a phone call should be # 9 10 11 25/05/2006 31/05/2006 01/06/2006 30/03/2006 Phone call plus emailed project information Spoke to Chief referred to Environmental Manager, will respond if the band has concerns or questions Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 24 List of Agencies and Parties Contacted # Agency/Party Traffic Services Terasen Representative Contact Information (i.e. phone, address, etc) 12 District of Mission BGC Sharon Clark - sclark@mission.ca 13 BGC Karl Filiatrault - 604 864 5514 ext 5725 kfiliatrault@abbotsford.ca 14 City of Abbotsford Department of Fisheries and Oceans BGC Brian Naito - 604 666 8190 naitob@pac.dfo-mpo.gc.ca 15 Property Owners BGC Bobby Braich - cell 604 854 9797 16 17 18 19 20 Utilities Contacted 25 Oil and Gas Commission BC Hydro Department of Fisheries and Oceans Ministry of Environment, Lands and Parks Fraser River Estuary Management Program 26 Visser Property 21 22 23 24 BGC BGC BGC BGC BGC Leslee Ellis Roger De Iaco Gene Mcintosh - office 604 820 9188 cell 778 549 2928 Terasen Gas Inc. BC Hydro Allstream Inc. Telus Communications Penney Buckler Date of Contact 05/04/2006 24/05/2006 12/06/2006 29/03/2006 31/03/2006 21/06/2006 27/06/2006 26/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 April/May 2006 Summary of Party's Response to Contact place 1 week before intended drilling for confirmation Party notified that none of proposed boreholes were on District property A street excavation and construction permit was received A letter of advice was received A lock for Braich property was cut by BGC to gain entry. Lock was eventually replaced Small portion of parties hay crop was damaged during drilling. Terasen Gas has been communicating with party about compensation for lost crop Utilities cleared Utilities cleared Utilities cleared Utilities cleared Discussed process for acquiring RoW and other approvals through the OGC. Pat Siega No contact made yet as there were no engineering investigations/works directly impacting property Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 Submission Date: July 14, 2006 Page 25 List of Agencies and Parties Contacted # Agency/Party Terasen Representative Contact Information (i.e. phone, address, etc) Date of Contact 27 Kismet Farms David Kan/ Kevin Jay Amarjit Sandhu - by letter First letter dated November 15, 2005 and ongoing 28 Tenant Kevin Jay To tenant on property Letter dated June 5, 2006 Bobby Braich - by letter First letter dated November 15, 2005 and ongoing 29 Braich/Bridgewater Property 30 Mauro Investments Property David Kan/ Kevin Jay 31 City of Abbotsford Kevin Jay Sean Visser 32 BC Hydro Roger De Iaco Pat Siega ph# 604.528.2874 33 MoT Suzana Prpic Allan Galambos ph# 604.660.8244 First letter dated June 13, 2006 May 25 2006 and ongoing Nov 18, 2005 and ongoing Summary of Party's Response to Contact owner. Letter to notify property owner of engineering investigations/work on property. Other letters have been sent since to update progress. No response from property owner. Advised tenant on property of engineering investigations/work on property. No response from tenant. Letter to notify property owner of engineering investigations/work on property. Other letters have been sent since to update progress. No response from property owner. No contact made yet as there were no engineering investigations/works directly impacting property owner. Letter to notify property owner of engineering investigations/work on property. No response from property owner. Communicated our ROW requirements. They were in general agreement with our proposal. Advised on the approximate timing of the Mission bridge seismic retrofit. Terasen Gas Inc. (“Terasen Gas” or the “Company”) Application for a Certificate of Public Convenience and Necessity Mission Intermediate Pressure System Upgrade Response to British Columbia Utilities Commission (“BCUC” or the “Commission”) Information Request No. 1 7.0 Submission Date: July 14, 2006 Page 26 Reference: CPCN Application, Appendices E, G 7.1 Please provide a copy of the Brybil Report that is referred to in the letter in Appendix E. Response: Please refer to Attachment 7.1. 7.2 Further to the map in Appendix G, please file a current map of the Terasen Gas Coastal Natural Gas System, including Mission and vicinity. Response: Please refer to Attachment 7.2 for an approximate representation of the Lower Mainland Natural Gas System. In the attached map, transmission pressure gas lines are indicated by solid lines and intermediate pressure gas lines are indicated by broken lines. 7.3 Further to the map in Appendix G and page 25 of the CPCN Application, please file a map outlining the land holdings that would be affected by the proposed project. Response: Please refer to Attachment 7.3. 7.4 Please clarify if the list of affected parties on page 25 of the CPCN Application refers to all components of the project or only to the HDD component. If not all components, please identify the number and nature of parties that will be impacted by each of the other components and describe Terasen Gas’ public consultation plans for each component. Response: The list of affected parties on Page 25 of the CPCN reflects all property owners that may be directly impacted either due to right of way concerns, and/or workspace requirements related to the installation of the two HDD pipeline installations, in addition to the 1000 metre distribution pressure main along 7th Avenue. An application to the MoT will also be submitted for the HDD under Highway 11, for the de-commissioning of the pipeline currently suspended from the Mission Bridge and for the de-commissioning of the existing valve station. All other parties involved in Project related applications and approvals are described on page 23 and 24 of the CPCN Application. Attachment 7.1 Attachment 7.2 1 BRISTOL ST. CUGH RD L A K E L W EL JESPERSON W ID LA KLASSEN FLOODS ESTELL JONES LAKE AY HW NS-C SE A ANA BI DA RD HIG RD N CHAPLI TRA E ES L AK E VIMY JON TRANMER POPKUM -B RO W N McMILLAN HA CK N O IX 406mm OD (NPS 16) FLOW CONTROL STATION 323mm OD (NPS 12) GATE STATION OR PIPELINE TAP NELSON MILLER 273mm OD (NPS 10) ATKINS DISTRICT REGULATOR STATION E E SS 219mm OD (NPS 8) VALVE STATION SL No 5 BENCH No 4 FARNHAM BRITESIDE SOUTHSIDE GREENHILL W RO SP AR CR ER TZ EL SW M cR A BIRCH ASHTON CAMERON HAMILTON FORD ANNIS McELWEE McLEOD N UPPER PRAIRIE PREST BANFORD GIBSON RD KE No 3 R ELK VIEW EVANS TYSON EE K BROWN PEACH CARTER FORD WILSON WEBSTER UNSWORTH LICKMAN HOPEDALE SIMMONS SUMAS PRAIRIE BLACKBURN 1ST ST BUSTIN STANDEVEN GILLANDERS PREST GRIGG YOUNG REEVES McSWEEN McDONALD WILLIAMS ER W HENDERSON CONNOR CHADSEY CHILLIWACK BOUNDARY A JU SAVOY B A H STEWART IL L R D CULTUS M TO W N TOLMIE LAKE 168mm OD (NPS 6) C COMPRESSOR 114mm OD (NPS 4) MUSTERSTATION 88mm OD (NPS 3) SON 0 D R Y E A L L D V S L M B IA L E R 3 4 5 ROB IN LINDELL ST FRO ENGINEERING SERVICES CA NY 5 GENERAL REVISIONS, ADDED TERASEN SYMBOL F. SEDLAR ENGINEERING SERVICES 6 GENERAL REVISIONS, ADDED HORNBY REG STN. F. SEDLAR BY No. 03/04/28 03/11/28 ON CANADA REVISION DRAWN DESIGNED CHECKED DATE(YY-MM-DD) U PL L O C FA 2 KILOMETRES OV EHRO 1 60mm OD (NPS 2) ICK N IVERSO JAN INTER-PROVINCIAL HWY SUTHERLAND BODNAR L IL M KITCHEN BARNES TO R E IV R R SE A FR PARK DEROCHE D R L A N A C MARION DE LAKE STROMBERG ARNOLD CORBOULD TERASEN GAS HUNTINGDON INC. TERASEN GAS INC. DISTRIBUTION AREA CHILLIWACK SAND POWERHOUSE McDERMOT BOWMAN BARKER BOUNDARY RD 36" SCHNBIDER HUNTINGDON COLE 30" LAMPSON WHATCOM YORK KENNY 8" RIVERSIDE McKENZIE McCALLUM ANGUS CAMPBELL CONCHMAN GLADWIN LANDING RD McDONALD G N EE M cK ROY OXEN 12" TREMBLAY JOHNSTON NI CO M E LENNOK ISLAND LI D A U Q BELL RIVERSIDE GLADWIN TRETHEWEY CLEARBROOK TOWNLINE NORTH DEROCHE RD E RHU HESS THOMPSON PENNINGTON NEWTON LITTLE BEHARREL ROWAN ON MA NS GLEDHILL STAVE LAKE RD CLE CATHERWOOD LA E AV ST SABDS RD 6" SELDON GLENMORE BATES OLUND MT LEHMAN RD IL LE O N V ROSS D R A PE LEFEUVRE 272 ST SCHOOL R TE ES LV SY SE RD KE WATT CEDAR CADE-BARR NELSON WREN 2" 4" 6" 264 ST 256 ST LA K O T O O E L HARDY KONTAG FARMS RD UX N SO NH JO L EL PB M CA VALLEY CLAY BARR WOLF HAYWARD E STAV BRADNER 264 ST SPRATT SABO McCOOMBS SHAW DEWDNEY TRUNK RD FARRINGTON N SO IL W 280 ST KE DY 2" 256 ST. 248 ST 240 ST 232 ST 224 ST 216 ST 208 ST AINSWORTH YEO 284 ST 272 ST 256 ST. 252 ST. 240 30" 12" BELL STATIM ROLLEY ROTHSAY 56 ST 252 ST 250 ST 216 ST 244 ST 246 ST 243 ST 240 ST 236 ST 248 ST 237 ST 232 ST 228 ST 12 224 ST 232 ST 8" 204 ST 200 ST BURNS ER RIV 224 ST 227 ST " 216 ST ER V LO G 192 ST 192 ST 184 ST HOTSPRINGS RD STAVE LAKE RD. R TE ET U LO A TH U SO MARC 216 ST LAITY 207 ST BAYNES PACIFIC HIGHWAY 176 ST L IL SYLVESTER IV ER 208 ST NEAVES McKECHNIE SHARPE HARRIS HALE 210 ST Y ED McTAVISH N EN K 176 ST 8" 8" 168 ST 160 ST OXFORD 152 ST 144 ST 140 ST 128 ST 4" OCEAN PARK 56 ST C IA OR CT VI T T PI OXFORD DEVON COAST MERIDIAN R 4" AM R IVE 160 ST 184 ST 152 ST 12" 8" 96 ST 88 ST 4" 80 ST 72 ST 64 ST 8" 4" 53 ST R HARPER EL INE SPICER 36" 140 ST 144 144 ST 136 ST 132 ST 128 ST 120 ST 112 ST 104 ST 12" D R E IV R 46A 40 ST 52 ST 8" EN T EL 41B ST 34 ST A N K B S O PM R T E D EV R O B 12" 6" 68 ST 140 ST KING GEORGE HIGHWAY A R SE A FR 24" 136 ST 132 128 ST RD IS C A N N 8" No.5 RD R ROBERTSON 208 ST ON BS RO R VE RI D N IS L A No 8 RD 24" No 9 RD 20" No 7 RD Mo 6 RD No. 4 RD GARDEN CITY RD. INDUSTRIAL BOUNDARY 30" KNIGHT FRASER MAIN CAMBIE OAK GRANVILLE No. 3 RD GILBERT No. 2 RD RAILWAY No. 1 RD STURGEON BANK N RIVERSIDE O " PT 42 NELLES W McDERMOT IE E DELAIR EL LD " 36 D ED V RY THORNTON V CAMPBELL ER K LA D T LAKE EXTROM R M S ON RYDER RS PA N N JI 457mm OD (NPS 18) L BOUNDARY RD " 30 E G D RI NO. 5 RD YARROW CENTRAL RUSSELL IL " KING HUNTINGDON RD 0 AVE M A M LAKE CLEARBROOK AIRPORT S. M SU MARSHALL 30 LAXTON LAKE 0 AVE T S RD WELLS LINE 4 AVE 1 AVE L E L L A R PA LUMSDEN H ALDERGROVE 8 AVE No. 4 RD WARD DUNCAN LE 13 KING PA ST KEITH WILSON RD SINCLAIR E YN O S ER TERASEN GAS INC.INTERMEDIATE PIPELINES PA WATSON PROMENTORY THOMAS 508mm OD (NPS 20) K B " SOUTH RA 36" R 42 L DYKE RD ALDER 30" TERASEN GAS SUMAS INC. PIPELINE EE K " No. 3 RD E LL L KEEPING MILL 30 E AK FARINA N RD LO M EN ND LI BAILEY 610mm OD (NPS 24) CR EE SIMPSON JACKMAN GLADWIN YARROW HIGGINSON STEVENSON SOUTH SUMAS RD K A LE ATCHELITZ PETER RUD EL M YA McGUIRE SPRUCE TERASEN GAS HUNTINGDON INC. PIPELINE THE FALLS GOLF CLUB DOCK PATTERSON Y OLD CHILLIWACK SUMAS CENTRAL ADAMS DUKE ENERGY PIPELINES 762mm OD (NPS 30) CR 24 AVE 15 E RA VALLEY ALLAN RD 914mm OD (NPS 36) EN ABBOTSFORD GLENWOOD 16 AVE CLAYBURN RD MATSQUI No. 2 DG T. DOWNES TRANS CANADA HWY H MC MACLURE 28 AVE ROCK HARRIS HALLERT BATEMAN LE PIPELINES TERASEN GAS (VANCOUVER ISLAND) INC. PIPELINE RT PRAIRIE No. OF CUSTOMERS - 538,753 TERASEN GAS TRANSMISSION 1067mm OD (NPS 42) 30" AIRPO YALE YA CHEAM LIU BRADSHAW 24 AVE FORE 11 32 AVE No. 1 ABBOTSFORD 6" DOWNES " BROOKSWOOD 0 AVE T O IT 42 CHILLIWACK H C LOWER MAINLAND NATURAL GAS SYSTEM KILOMETRES OF MAIN - 10,119 YALE RD ROSEDALE LE N L IL O 36" ELGEY 36" AIRPORT RD " 30 AGASSIZ LAKE K SO ELL RD 6" CASTLEMAN IN RT ONN SLOUGH P CAM H BE CR TOWNSHIP LINE RD IES ALLEN TOWNSHIP LINE NORTH ALDERGROVE 40 AVE 8 AVE 6TH AVE 48 AVE RO 40 AVE 8A AVE TH NZ 20 AVE U McC YALE RD CHILLIWACK CENTRAL R SUNNYSIDE WHITE HAVERMAN OTTER 30" 48 AVE 44 AVE BROWN O H L E TZ EL SW 16 AVE MARINE DR PARK GLOUCESTER LIVINGSTONE BEATON C R LD 12TH AVE BOUNDARY BAY OCEAN 32 AVE .S OS IR HURD 20 AVE " LE D IW O FR DELA 16TH AVE 24 AVE 40 AVE E PAG RN RD 17 28 AVE C NI 18 YA R A O 34 B AVE 6" MUD BAY INTER-PROVINCIAL HWY C E OM ER D ER K DY D RR VE RI McDONALD AS OF JANUARY 1, 2003 C A H RN 33A AVE IN IRW R KL IV E OP AR T M LD BRICE LL FIRST AVE RN .R BELL FAIRFIELD K D R A S PAS I 36 AVE IE R DYKE NICOMEN BE D NON 45 AVE 36A AVE R VE JONES NICOMEN ISLAND L D E B PAGE MERCER AYBU OLD CL .R NO G M SI EN KIRKPATRICK A IS . CA LANGLEY E ANDERSON M N N M O B M A T 60 AVE BALFOUR B 99 LADNER TRUNK RD MISSION 66 AVE R HYDE BUKER CO GALLAGHER 56 AVE I SERPENTINE R McKAMIE HATZIC NI LO Y TA CA A STARR W HA BRINK AT HOD GSO R OUGH SL RD ER 6" H R LANGLEY 10 GOUDY ST IN 99 HORNBY 48 AVE IR L CLOVERDALE VE BENSON K E 64 AVE N KI BELL N AM 4" NHA CHE KIT KL B D D N A L IS E WESTHAM ISLAND 1 BARR E KL IC SP MALCOLM BA Y HE ED L K 64 AVE DEWDNEY TRUNK RD NORTH V A SA W LANGLEY GLOVER 7 DAVIS 4" CEDAR HWY N SH " SILVERDALE McTAVISH U 18 SILVERDALE MISSION D A V 72 AVE. H BEST 14 AVE RD M IA L IL W IT CR 62 AVE SO SE RO E G AY LAKE CHERRY MARSH McKAY W 64 AVE 60 AVE N IS 84 AVE MARSH 60 AVE K IR K SURREY BOSE GH D GUNN SM 72 AVE. AN 84TH HI CLAYTON 42 " ISL FARMS HATZIC M 6" 80 AVE. NT RD FO 64 AVE A ER TS D N LA D N A L FINN RD DELTA RAWLINSON AD CE RIV 88 AVE FERNDALE O IS A E D AN ES RICHARDS BB N L S MONCTON PANORAMA FORT 88 AVE CR SA A SCOTTSDALE A GARY PT. COAST MERIDIAN 72 AVE 91 TILBURY D ANDERSON R FRASER RIVE S ER D UN K PLANT STEVESTON HIGHWAY JOHNSON ISL D SC 83 AVE 80 AVE AN AN AN CENTRE 80 AVE ALBION LL LANGLEY TR NEWTON MI ON TAIT McKIN DELTA 24" OPERATIONS 30" W O RO G IL T 42" TERESEN GAS INC. 88 AVE 18" Mc ALEXANDER LATIMER SILVERHILL LIMBERT VIE LIN B V RI 80 AVE TYNEHEAD NE BAY ER LNG U ER RICHARDSON NICHOL WHONNOCK BY KS ST 82 AVE 36" 30" 6" TO EAGLE RIVER RD IS GUILDFORD 96 AVE 96 AVE YS R 8" 84 AVE D N A L Y IL KE RT TE 88 AVE R A ROEBUCK 86 AVE 100 AVE 99 AVE TR CASWELL ES 20" NELSON PH A YW 104 AVE MO DALE K 16" A 96 AVE L LV 96 AVE 92 AVE 100A AVE THORNHILL MISSION RD LAKE NICOMEN E AK R FANCHE KENT HUNT KIL SQUAKUM DURIEU IN RD RISO N BAY CA HA 102 AVE R AL SHOO RICHMOND 102 AVE G CH A RO HAR ME SANDELL KA SMITH ELSE H 18" EN EW NA RD ISLAND TE LE 99a 112 AVE E CR KANAKA 104 AVE FERGUSON KA LA AL LAKE EK WHARE BARNSTON WHONNOCK KENNEDY W 104 AVE 108 AVE 108 AVE VE 112 A DEWDNEY TRUNK RD 7 IN R GR PATTULLO RD HANEY 124 AVE DEWDNEY A ER D 91 YA V OS R DEWDNEY TRUNK RD HAMMOND McCALLUM HUMPHREY T ER FORD 112 AVE VE AL 24 AVE KENT HARRISON EMERALD McPHERSON N IV IV R LE R R " RI RS TE ER H AL EW W LE VI EL ON SI IS WILLIAMS FRANCIS A MEADOWS HAMMOND E R GA BAY BENNETT TE OU GOLF SY RICHMOND D T RIVER H 6T WAY 12 116 AVE OL S SE CAMBIE RD BLUNDELL INE A BRIDGEPORT GRANVILLE MAR FR R VANCOUVER AIRPORT WESTMINSTER HIGHWAY V M RICHMOND S.E.OAK E ISLAND PITT CH U E D H T T S AR MITCHELL ISLAND GRANT McCONA CHI E 7 EA HARTLEY ALOUET E TT T T RE N RI cB H 12 NORTH FORD HORN O EN H SOUTH AL PINE KI M FRASER MARINE DR RT W O H T 12 99a WINDSOR LL HI DOUGLAS O DENT ALDER DG IMPERIAL RY MA BY 3 9 McCONNELL CREEK RD MAPLE RIDGE McKAY 6" M V A N DEWDNEY TRUNK RD SS ESPLANADE CEDAR HO " 20 CAPE MEADOWS PA WOODRIDGE NEW 6T 70TH UITL KINGSWAY WESTMINSTER E 1a TRENTON BROADWAY LAKE Y DOMINION COMO LAKE AY 41ST AVE " PITT FENTON AY 20" DEER LAKE 20 PIP NG SW HIGHW 16" VANCOUVER KI COMOLAKE AVE Y 4" NAB D R COQ WESTWOOD COQUITLAM HARRIS A BONSON BURNABY BUR MA RI NE McNEIL 192 ST IW CANADA WAY AY RICHARDSON PIPPINGTON D AUSTIN SW VICTORIA BURNS R PITT RIVER RD NG 27TH AVE DUNBAR LA RD 99 RIV PRAIRIE 7 " 30 LL VA IS RR G OPERATIONS 2ND & WOODLAND KI 25TH & ARBUTUS HEED BURNABY 30" BROADWAY BROADWAY LOUG EY RD MO ER A MARY HILL 7 UNIVERSITY OF B.C. 2ND & BOUNDARY UNIVERSITY G GLEN 156 ST UNIVERSITY BLVD 1ST AVE SPERLING INAL GRANDVIEW MAIN 4TH AVE 20" CASSIAR TERM CAMBIE MARINE DR SIMON FRASER 6" CURTIS MUNDY A R R U B SPANISH BANKS D 4" 7a SCHOOLHOUSE D R HASTINGS BARNET R LAKE COQUITLAM KE HEAD OFFICE IA O AR RG ENGLISH BAY C BARNET HIGHWAY CL EO IO THERMAL PLANT 24" TERASEN INC. G BURRARD NARROWS SECOND LANSDOWNE ROCHE PT. BURRARD INLET 6" DAVIS LO A RD 24" IOCO STANLEY EK RE D S C WOO ON T S O N WE WATER JACOBS 16" E K LA TE ET U SATCHELL SUNNYSIDE BELCARRA DOLLARTON HIGHWAY S PARK PI T T LAKE BUNTZEN M AR H RT NO Y BA L EL W SE BE D YM OU R DEEP COVE RD RIVER LONSDALE 8" OW C ANMORE KAMP RR PROSPECT POINT EAGLE MTN 20" 8" " 0 2 NA MT. SEYMOUR PARKWAY ST LAKE KE D SASAMAT LA 3R 16" T N.SHORE 1 VE 20" RS 12" D AR RR BU CAPILANO RIVER RD CAPI LANO TAYLOR WAY INE D R FI 3 RD BE STA 2ND ST LAKE NORTH VANCOUVER MAR PT. ATKINSON RY M TO HOPE K 99 8" AIRPORT RD EE " 30" 36" LAKE CR 12 NN 1 LY CYPRESS BOWL RD ITLAM INLET COQU WEST VANCOUVER HARRISON A MICROFILMED M SCALE- AS SHOWN TERASEN GAS SUMAS INC. UNITED STATES REF.- XXXXXXX SAP ID: XXXXXXXXXX DRAWING No. 99000-P-000-024-R6 Attachment 7.3