Westcoast Transmission Co. Ltd. v. Husky Oil Operations Ltd. et al., (1980) 22 A.R. 24 (CA)

• Judge: McGillivray, C.J.A., Prowse and Laycraft, JJ.A.
• Court: Court of Appeal (Alberta)
• Case Date: February 08, 1980
• Citations: (1980), 22 A.R. 24 (CA)

Westcoast Transmission Co. v. Husky Oil (1980), 22 A.R. 24 (CA)

MLB headnote and full text

Westcoast Transmission Co. Ltd. v. Husky Oil Operations Ltd., Candel Oil Ltd., Canadian Propane Gas and Oil Ltd. and Mobil Oil Canada Ltd.

(12382)

Indexed As: Westcoast Transmission Co. Ltd. v. Husky Oil Operations Ltd. et al.

Alberta Court of Appeal

McGillivray, C.J.A., Prowse and Laycraft, JJ.A.

February 8, 1980.

Summary:

This case arose out of an order by the Alberta Petroleum Marketing Commission (A.P.M.C.) which fixed the "Alberta cost of service" of processing and transporting natural gas from the Savanna Creek gas field. The order of the A.P.M.C. was appealed to the Alberta Public Utilities Board.

The Public Utilities Board varied the order of the A.P.M.C. with respect to the determination of the "Alberta cost of service" of gas from the Savanna Creek gas field. Westcoast was adversely affected by the decision of the Public Utilities Board and appealed to the Alberta Court of Appeal.

The Alberta Court of Appeal dismissed the appeal and affirmed the decision of the Public Utilities Board.

Prowse, J.A., dissenting, in the Alberta Court of Appeal would have allowed the appeal and would have set aside the order of the Public Utilities Board and would have restored the order of the A.P.M.C. - see paragraphs 58 to 75.

Trade Regulation - Topic 8387

Price regulation - Oil and gas - Jurisdiction of the Alberta Petroleum Marketing Commission (A.P.M.C.) - The A.P.M.C. determined the "Alberta cost of service" of processing and transporting natural gas from the Savanna Creek gas field - The gas in question was processed at a plant which was not owned by Savanna Creek - In determining Savanna Creek's "Alberta cost of service" A.P.M.C. determined the "Alberta cost of service" of other producers supplying gas for processing at the plant - Westcoast was adversely affected by the determination by A.P.M.C. because of a contract between the plant and Westcoast by which Westcoast agreed to reimburse the plant for all costs incurred in operating the processing plant - The Alberta Court of Appeal affirmed the order of the A.P.M.C. - The Court of Appeal reviewed and affirmed the jurisdiction of the A.P.M.C. to make orders which adversely affect parties to contracts which fix costs in a manner different than that provided for by statute.

Trade Regulation - Topic 8396

Price regulation - Oil and gas - Appeals - The Alberta Court of Appeal reviewed the jurisdiction of the Public Utilities Board on an appeal from a determination of "Alberta cost of service" of natural gas by the Alberta Petroleum Marketing Commission - See paragraphs 47 to 51.

Administrative Law - Topic 543

The hearing and decision - Decisions of the tribunal, sufficiency of reasons - During a hearing before the Alberta Public Utilities Board a party made a preliminary motion which was refused without reasons but was dealt with in the Board's final decision - The Alberta Court of Appeal held that in the circumstances the Board complied with s. 8 of the Administrative Procedures Act - See paragraphs 39 to 46.

Cases Noticed:

Northwestern Utilities Limited and Public Utilities Board v. City of Edmonton (1978), 2 A.R. 317; 23 N.R. 565; 7 Alta. L.R.(2d) 370 (S.C.C.), refd to. [para. 40].

Green Michaels & Associates v. Public Utilities Board (1979), 13 A.R. 574; 2 W.W.R. 481, refd to. [para. 40].

Couillard v. City of Edmonton, 18 A.R. 31, refd to. [para. 40].

O'Hanlon v. M.D. of Foothills, 17 A.R. 477, refd to. [para. 40].

Re Eurocan Pulp & Paper Co. Ltd. v. B.C. Energy Commission (1978), 87 D.L.R.(3d) 727, refd to. [para. 50].

Bakery & Confectionery Workers International Union of America et al. v. White Lunch Limited and Labour Relations Board, [1966] 2 S.C.R. 282, refd to. [para. 51].

Statutes Noticed:

Natural Gas Pricing Agreement Act, S.A. 1975, c. 38, sect. 1(1)(b) [para. 26]; sect. 7 [para. 28].

Natural Gas Pricing Agreement Act Regulations, sect. 6 [para. 29]; sect. 7 [para. 30].

Gas Utilities Act, R.S.A. 1970, c. 158, sect. 2(f)(iii) [para. 59]; sect. 27 [paras. 34, 35].

Administrative Procedures Act, R.S.A. 1970, c. 2, sect. 8 [para. 39].

Counsel:

J.B. Ballem, Q.C. and L.L. Fryers, for Westcoast Transmission Company Limited;

J.R. Smith, Q.C., for Husky Oil Operations Ltd., Candel Oil Ltd., Canadian Propane Gas & Oil Ltd. and Mobil Oil Canada Ltd.;

W.B. Gill, Q.C. and E.J. McCoy, for Public Utilities Board;

C.K. Yates, for Petrogas Processing Ltd.

This appeal was heard by McGILLIVRAY, C.J.A., PROWSE and LAYCRAFT, JJ.A., of the Alberta Court of Appeal.

The judgment of the Alberta Court of Appeal was delivered on February 8, 1980 and the following opinions were filed:

LAYCRAFT, J.A. - see paragraphs 1 to 57.

PROWSE, J.A., dissenting - see paragraphs 58 to 75.

McGILLIVRAY, C.J.A., concurred with LAYCRAFT, J.A.