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3.3 External Fees and Service Standards

NEB Service Standards identify targets for key aspects of service delivery. The Service Standards and annual results can be found on the NEB website at http://www.neb-one.gc.ca under “Who we are & our governance”.

Table 11: Energy Regulation and Advice – National Energy Board Act


Fee Activity Description Amount
Energy Regulation and Advice The NEB regulates in the public interest those areas of the oil, gas, non-hydrocarbon and electricity industries relating to:
  • construction and operation of pipelines;
  • construction and operation of international and designated interprovincial power lines;
  • transportation, tolls and tariffs of pipelines;
  • exports of oil, gas and electricity and imports of oil and gas; and
  • oil and gas activities on Frontier lands not subject to a federal/provincial accord. 
Fee Type Regulatory (R)
Fee Setting Authority The NEB External Charging is in accordance with sub-section 24.1 (1) of the NEB Act. As of 1 January 1991 under the NEB Cost Recovery Regulations, the Board recovers the cost of its operations from the majority of the companies that it regulates. The Board has the delegated authority to determine what costs will be excluded from program expenditures for cost recovery purposes.
Date Last Modified NEB Cost Recovery Regulations last amended on 6 November 2002
2007-2008 Forecast Revenue
($ millions)
Regulatory 39.6
2007-2008 Actual Revenue ($ millions) Regulatory 41.6
Estimated Full Cost
($ millions)
Regulatory
a) NEB Costs = 38.8
b) Other Departments Costs = 5.3
44.1
Forecast Revenue
($ millions)
Sub-Total 2008 - 09
2009 - 10
2010 – 11

Total

39.6
38.3
38.3

116.2

Estimated Full Cost
($ millions)
Sub-Total 2008 - 09
2009 - 10
2010 – 11

Total

39.0
39.0
39.0

117.0



Service Standards Service Standard Results
2007-2008*
Reasons for Decision
  • 80% of Reasons for Decision completed within 12 weeks following a public hearing
Reasons for Decision

Five hearings: 80% completed in 12 weeks

Export/import authorizations**
  • Oil and/or petroleum orders processed: 100% in 2 working days
  • NGL orders processed: 100% in
    2 working days
  • Gas import and export orders processed: 100% in 2 working days

Electricity export permits***:

  • Category A: 80% within 40 calendar days
  • Category B: 80% within 90 calendar days
Export/import authorizations
  • Oil and/or petroleum orders processed: 13 new orders processed; 62% completed in 2 days
  • NGL orders processed: 6 new orders processed; 67% completed in 2 days
  • Gas import and export orders processed: 149 received; 99% completed in 2 days
  • Category A: 35 received; 100% completed in 40 days
  • Category B: 72 received; 100% completed in 90 days
Landowner Complaints
  • Respond with initial course of action: 100% within 10 calendar days
  • Resolve the complaint: 80% within 60 calendar days
Landowner Complaints
  • Respond with initial course of action: 16 files; 100% response within 10 calendar days
  • Resolve the complaint: 16 files; 88% of files were closed within 60 calendar days
Onshore pipeline regulation (OPR) audits
  • 80% of draft OPR reports sent to the audited company within 8 weeks of completing field work
  • 80% of Final OPR reports sent to the audited company within 8 weeks of receiving the company’s comments on the draft report
Onshore pipeline regulation audits
  • 3 received; 100% sent to the audited company within 8 weeks
  • 3 received; 67% sent to the audited company within 8 weeks
Financial audits
  • 80% of draft financial reports sent to the audited company within 8 weeks of completing field work
  • 80% of final financial audit reports sent to company within 3 weeks of receiving the audited company’s comments on draft financial report
Financial audits

3 audits conducted; both service standards met (100% of reports sent within specified period)

Non-hearing Section 58 application cycle times
  • Category A (complexity of issues considered minor): 80% of decisions released in 40 calendar days
  • Category B (complexity of issues considered moderate): 80% of decisions released in 90 calendar days
  • Category C (complexity of issues considered major): 80% of decisions released in 120 calendar days
Non-hearing Section 58 application cycle times
  • Category A: 12 received: 92% in 40 days
  • Category B: 3 received: 100% in 90 days
  • Category C: 0 received
* The Board met all of its service standards except two. The Board’s target of sending the final OPR audit report to the company was not met due to delayed processing. The Board’s target of processing new oil and/or petroleum and NGL export/import orders within 2 days was not met due to workload constraints. In these situations, orders were processed just under the standard at 2.2 days.
** Service standards for Oil and NGL orders applies to new orders only (not renewals).
*** Electricity export applications are divided into one of two categories (minor or major) based on their level of complexity.

Consultation

When the NEB Cost Recovery Liaison Committee (CRLC) was established in July 1990, the composition of the committee ensured that there was representation from each of the industry’s major associations and companies. The CRLC was established for ongoing consultation and communication regarding cost recovery methodology, regulations and new initiatives affecting cost recovery processes. In addition, the NEB tables and discusses its financial statements and anticipated expenditures with the CRLC. The NEB’s performance results are presented to the CRLC at regularly scheduled meetings.

Dispute Management

The NEB has a Dispute Management Process in accordance with Treasury Board External Charging Policy, to ensure that disputes and issues raised by stakeholders related to external charging are addressed and resolved fairly and efficiently. In this process, there are three hierarchical levels to resolve a dispute. The first level of resolution rests with the Chair of the CRLC. If the dispute is unresolved at the first level, the issue will be passed on to the second level where a committee is formed. Where the first level and the second level fail to result in a resolution, the matter will be referred to the Chair of the Board. Each level is given 90 days from the date of receipt of notification or escalation to resolve the dispute.

The disputes and issues may include but will not be limited to:

  • failure to meet the agreed standard of services or products;
  • negotiated charges perceived to be unreasonable;
  • issues regarding specifications and descriptions of the required services or products;
  • cancellation of the negotiated services or products; or
  • failure to meet deadlines.

Table 12: Energy Regulation and Advice – Canada Oil and Gas Operations Act


Fee Activity Description Amount
Energy Regulation and Advice – Canada Oil and Gas Operations Act

Under the COGO Act, the NEB regulates oil and gas activities on Frontier lands not subject to a federal/provincial accord.

Fee Type Regulatory (R)
Fee Setting Authority Canada Oil and Gas Operations Act
Date Last Modified 1992
2006-2007 Forecast Revenue Regulatory 900
2006-2007 Actual Revenue Regulatory 775
Estimated Full Cost Regulatory
a) NEB Costs = 5,000,000
b) Other Departments Costs = 700,000
5,700,000
Forecast Revenue Sub-Total 2008 - 09
2009 - 10
2010 - 11

Total

900
900
900

2,700

Estimated Full Cost Sub-Total 2008 - 09
2009 - 10
2010 - 11

Total

5,000,000
5,000,000
5,000,000

15,000,000



Service Standards Service Standard Results
2006-2007
COGO Act applications

Well drilling applications

  • Decisions rendered within 21 calendar days of receiving a complete application

Geological and geophysical applications

  • Decisions rendered within 30 calendar days of receiving a complete application
COGO Act applications

Well drilling applications

  • 20 received: 100% of decisions rendered within 21 calendar days

Geological and geophysical applications

  • 23 received: 100% of decisions rendered within 30 days
CPR Act applications
  • Decision for Significant Discovery
  • Decision for Commercial Discovery Applications on Frontier lands

80% of decisions for both rendered within 90 calendar days

CPR Act applications
  • 5 received: 100% of decisions rendered within 90 calendar days
  • 0 received

Consultation

The NEB's COGO Act and CPR Act service standards are reviewed with stakeholders on an opportunity basis at meetings with companies, organizations (such as the Canadian Association of Petroleum Producers), and at other venues (such as the Annual Oil and Gas Forum).

Table 13: Service Standard for Access to Information Act


Fee Activity Description Amount

Access to Information Act

Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)

Fee Type Other products and services (O)
Fee Setting Authority Access to Information Act 
Date Last Modified 1992
2007-2008 Forecast Revenue Other Products and Services 100
2007-2008 Actual Revenue Other Products and Services 40
Estimated Full Cost Other products and Services
a) NEB Costs = 25,876
b) Other Departments Costs = 0
25,876
Forecast Revenue Sub-Total 2008 - 09
2009 - 10
2010 - 11

Total

100
100
100

300

Estimated Full Cost Sub-Total 2007 - 08
2008 - 09
2009 – 10

Total

26 000
26 000
26 000

78 000



Service Standards Service Standard Results
Responding to Access to Information requests
  • Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request.
Responding to Access to Information requests
  • 7 received: 100% of requests completed in 30 days or notice of extension sent within 30 days; 1 request was received then later abandoned by the party who made the request