Warning Letter to Midstream Energy Partners (Canada) Ltd. (Midstream Energy)
CER File: XP2425-004
October 7, 2024
Registered with acknowledgement of receipt.
Joe Secreti (MLP)
VP of Logistics
Midstream Energy Partners (Canada) Ltd.
3900 – 205 5th Avenue SW
Calgary AB T2P 2V7
RE: Warning Letter to Midstream Energy Partners (Canada) Ltd. (Midstream Energy)
Dear Joe Secreti (MLP):
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 Midstream Energy’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 LetterFootnote 1 which reminded companies holding an export license, permit or order (authorization) exporting the above-mentioned commoditiesFootnote 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
Midstream Energy is the holder of ORDERs EPR-064-2024, EBU-050-2024 and ROE-095-2024 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.
Authorization | Commodity | Due Date | Filing Status |
---|---|---|---|
EPR-064-2024 | Propane | 29 February 2024 | Late |
EPR-064-2024 | Propane | 31 March 2024 | Late |
EPR-064-2024 | Propane | 30 April 2024 | Late |
EPR-064-2024 | Propane | 30 June 2024 | Late |
EBU-050-2024 | Butane | 29 February 2024 | Late |
EBU-050-2024 | Butane | 31 March 2024 | Late |
EBU-050-2024 | Butane | 30 April 2024 | Late |
EBU-050-2024 | Butane | 31 May 2024 | Late |
EBU-050-2024 | Butane | 30 June 2024 | Late |
EBU-050-2024 | Butane | 31 July 2024 | Late |
ROE-095-2024 | Crude Oil | 30 April 2024 | Late |
ROE-095-2024 | Crude Oil | 31 May 2024 | Late |
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 CTSFootnote 3.
CONCLUSION
This warning letter, notifying you of Midstream Energy’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 Midstream Energy’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, System Operations
Canada Energy Regulator
CC:
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