Energy East faces delay as NEB panelists step down

OREANDA-NEWS. September 12, 2016. Three National Energy Board (NEB) panelists who were reviewing TransCanada's 1.1mn b/d Energy East crude pipeline project have agreed to step down amid allegations of conflicts of interest.

The move will delay the NEB's review of the C\\$15.7bn (\\$11.3bn), project which seeks to link western Canadian oil sands production to the refinery and port at Saint John, New Brunswick.

The hearings are adjourned until a new panel is appointed.

The NEB said that the three members recused themselves in order to preserve the integrity of the agency and of the Energy East review.

"The members acted in good faith" and have pledged not to discuss the application of Energy East and the related Eastern Mainline review with other board members or board staff, the NEB said today.

TransCanada said it accepts the NEB's decision.

"We look forward to the sessions resuming and a respectful and constructive dialogue with Canadians about Energy East," the company said.

The NEB on 31 August suspended hearings on the project until it could rule on two motions filed by environmental groups asking for the recusal of panel members for alleged conflicts of interest.

The first motion, brought by Transition Initiative Kenora, alleged that two members of the panel - Jacques Gauthier and Lyne Mercier - met privately and discussed the project with interested stakeholders in January 2015, including Jean Charest who was then a consultant for TransCanada.

Another motion by two environmental groups also included requests related to the recusal of the hearing panel.

The NEB is reviewing Energy East concurrently with TransCanada's Eastern Mainline project. Eastern Mainline includes building about 173 miles (279 km) of gas pipeline and related components in four sections, beginning near Markham, Ontario, and finishing near Brouseville, Ontario.

The NEB had set up a 21-month timetable for the review, which is about six months longer than a typical evaluation.