Warning Letter to Gunvor USA LLC (Gunvor)

CER File: XP2425-007

October 7, 2024

Registered with acknowledgement of receipt.

David Garza
Managing Director, Gunvor USA
Gunvor USA LLC
600 Travis Street
Houston Texas, 77002, USA

RE: Warning Letter to Gunvor USA LLC (Gunvor)

Dear David Garza:

The Canada Energy Regulator (CER) is the independent federal regulator of pipelines, energy development and trade in the Canadian public interest. The CER collects, monitors, analyzes, and publishes fact-based information on energy markets and supply, sources of energy, and the safety and security of pipelines and international power lines. The data and reports published by the CER provide timely and relevant information to Canadians, on commodity imports and exports, energy supply, and sources.

This letter is to inform you that the CER has serious concerns with Gunvor’s compliance with the requirements under National Energy Board Export and Import Reporting Regulations (Reporting Regulations). Reporting on the export of crude oil and refined petroleum products, natural gas, natural gas liquids and electricity from Canada is regulated under the Reporting Regulations.

In January 2024, the CER issued an All Company Letter^{Footnote 1} which reminded companies holding an export license, permit or order (authorization) exporting the above-mentioned commodities^{Footnote 2} to comply with the Reporting Regulations. Authorization holders must comply with the Reporting Regulations and file monthly reports on their activities. The Reporting Regulations also clearly outline the information requirements to be filed each month.

RELEVANT FACTS

Gunvor is the holder of ORDER(s) EPR-087-2024, EBU-068-2024, GO-026-2024, and ROE-140-2024 and is subject to the Reporting Regulations.

When a company fails to file a report required by the Regulations by the prescribed due date, the CER’s Commodity Tracking System (CTS), which companies use to file reports, automatically tracks the late filing. CTS generates automated email reminders which state reports are due soon, or that reports are late.

The table below documents the instances where filings were not made or made late. Each of these instances is a non-compliance with the Reporting Regulations.

Compliance with the Reporting Regulations is mandatory, and the CER expects companies to file reports in a correct and timely manner on or before the due date. Companies are required to file their reports through the CTS^{Footnote 3}.

CONCLUSION

This warning letter, notifying you of Gunvor’s non-compliances with the Regulations, is issued in accordance with the CER’s Enforcement Policy. The intent of this letter is to bring this matter to your attention, so you can take the necessary corrective action to ensure that timely submission of the required reports will be made in accordance with the Reporting Regulations.

Please be advised that this written warning, and the circumstances to which it refers, will form part of Gunvor’s compliance history.

Future non-compliances may result in further enforcement action, in accordance with the CER’s Enforcement Policy. Future enforcement action could include a Commission Order or Direction or administrative monetary penalties. You can find more information on the CER’s compliance and enforcement activities at https://www.cer-rec.gc.ca/en/safety-environment/industry-performance/reports-compliance-enforcement/index.html.

Should you have any questions regarding this review, please contact or .

Yours sincerely,

Original signed by

Jonathan Timlin
Vice-President
Systems Operations Business Unit

CC:

Date modified:

2024-11-08