CALGARY, March 16, 2016 /CNW/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA)
today announced that the Alberta
Court of Queen's Bench (the "Court") has granted an order that
stays, on an interim basis, the Alberta Energy Regulator ("AER")
from issuing its written hearing decision on the Company's
Fox Creek to Namao, Alberta expansion pipeline project (the
"Project").
The interim stay was granted following a last minute application
made by the Alexander First Nation ("Alexander") for orders
requesting an injunction of the AER decision process or preventing
the AER from issuing its written hearing decision for the Project.
The Court did not consider the merits of the Alexander injunction application, but ordered
that the application proceed to adjudication
expeditiously.
The focus of Alexander's
concern appears to be a small portion of the Project that would be
constructed in proximity to lands owned or controlled by
Alexander and lands that it may
seek to potentially purchase in the future on the assumption there
is a willing seller (the "Potential Purchase Area"). Alexander's arguments in this regard were
previously rejected by the AER at the hearing. The AER's statutory
mandate is to provide for the efficient, safe, orderly and
environmentally responsible development of energy resources in
Alberta. Pembina expects that a second consideration of
these matters, this time by the Court, will yield a similar
result.
Pembina has secured binding
rights of way required for the construction of the Project in the
Potential Purchase Area from all affected landowners. These lands
are currently in general farming use and owned privately by
individuals who are not members of or otherwise affiliated with
Alexander.
Pembina initially submitted its
application to the AER on September 4,
2014 for the Project. Pembina underwent a rigorous and comprehensive
public hearing between October and December of 2015, which allowed
all stakeholders to participate. Alexander was one of the stakeholders that
participated. As required under its enabling legislation, the AER
is required to issue its written hearing decision on the Project
within 90 days of the close of the hearing. Such 90 day period was
set to conclude on March 17,
2016.
Pembina is committed to working
with all stakeholders by building trust and operating its business
in a safe and responsible manner. As such, Pembina has previously explored numerous
routing alternatives and expects to be able to complete the Project
on time and on budget.
About Pembina
Calgary-based Pembina Pipeline
Corporation is a leading transportation and midstream service
provider that has been serving North
America's energy industry for over 60 years. Pembina owns and operates an integrated system
of pipelines that transport various products derived from natural
gas and hydrocarbon liquids produced in western Canada and North
Dakota. The Company also owns and operates gas gathering and
processing facilities and an oil and natural gas liquids
infrastructure and logistics business. Pembina's integrated assets and commercial
operations along the entire hydrocarbon value chain allow it to
offer a full spectrum of midstream and marketing services to the
energy sector. Pembina is
committed to working with its community and aboriginal neighbours,
while providing value for investors in a safe, environmentally
responsible manner. This balanced approach to operating ensures the
trust Pembina builds among all its
stakeholders is sustainable over the long-term. Pembina's common shares trade on the
Toronto and New York stock exchanges under PPL and PBA
respectively. For more information, visit www.pembina.com.
Forward-Looking Statements & Information
This document contains certain forward-looking statements and
information (collectively, "forward-looking statements") within the
meaning of the "safe harbor" provisions of applicable securities
legislation that are based on Pembina's current expectations, estimates,
projections and assumptions in light of its experience and its
perception of historical trends. In some cases, forward-looking
statements can be identified by terminology such as "expects",
"will", "shall", "expand", "would", "plans", "develop",
"anticipates" and similar expressions suggesting future
events or future performance.
In particular, this document contains forward-looking
statements, pertaining to, without limitation, the following: the
timing and ultimate outcome of the Court proceedings related to the
interim stay granted by the Court relating to the AER decision in
respect of the Project; that the adjudication of this matter will
have no material impact on the cost or schedule of the Project; the
ability of Pembina to find a
satisfactory outcome in respect of the Project; and the timing of
the construction and in-service date of the Project.
These forward-looking statements and information are being
made by Pembina based on certain
factors and assumptions that Pembina has made in respect thereof as at the
date of this news release, including: that the Court will proceed
with the adjudication of the matter on an expedited basis, as
ordered; that the consideration of the matters by the Court will
yield a similar result as at the AER; and that construction of the
Project will begin shortly after the Court's final ruling, as
planned and in a timely manner, such that the expected in service
date of the Project will not be impacted. Although
Pembina believes the expectations
and material factors and assumptions reflected in these
forward-looking statements are reasonable as of the date hereof,
there can be no assurance that these expectations, factors and
assumptions will prove to be correct.
These forward-looking statements are not guarantees of future
performance and are subject to a number of known and unknown risks
and uncertainties, including, but not limited to: unfavourable
outcomes to Pembina of the Court
proceedings or in respect of the ultimate AER decision relating to
the Project; required changes to the design or scope of the Project
that result in significant cost increases or timing delays or other
negative implications in respect of the Project and the commitment
of shippers thereon; reliance on key industry partners, alliances
and agreements; the strength and operations of the oil and natural
gas production industry and related commodity prices; the
continuation or completion of third-party projects; regulatory
environment and inability to obtain other required regulatory
approvals; tax laws and treatment; fluctuations in operating
results; the ability of Pembina to
raise sufficient capital (or to raise capital on favourable terms)
to complete future projects and satisfy future commitments and
certain other risks detailed from time to time in Pembina's public disclosure documents
including, among other things, those detailed under the heading
"Risk Factors" in Pembina's
management's discussion and analysis and annual information form
for the year ended December 31, 2015,
which can be found at www.sedar.com. The
construction of the Project may not be completed, or may be
materially delayed if the Court and regulatory proceedings
addressed in this document are not resolved in a favourable manner
to Pembina and in a timely fashion
and, in such event, any material delay, cost increase or
cancelation of the Project could have a material impact on
Pembina's future business projects
and results of operations and could negatively impact cash
available for dividends to shareholders, interest to debtholders
and Pembina's share price and the
value of Pembina's other
securities.
Accordingly, readers are cautioned that events or
circumstances could cause results to differ materially from those
predicted, forecasted or projected. Such forward-looking statements
are expressly qualified by the above statements. The
forward-looking statements contained in this document speak only as
of the date of this document. Pembina does not undertake any obligation to
publicly update or revise any forward-looking statements or
information contained herein, except as required by applicable
laws.
The forward-looking statements contained in this document are
expressly qualified by this cautionary statement.
SOURCE Pembina Pipeline Corporation