Strategy for Local Gas Distribution

The provincial government is meeting its promise to draw up new rules to encourage local gas distribution in Nova Scotia.

The recently released energy strategy, Seizing the Opportunity, committed the government to putting gas distribution on a commercial basis. The draft amendments to the Local Gas Distribution Act and related draft regulations would put the commitments into law.

"The changes we are making are the result of extensive consultation during the energy strategy process," said Gordon Balser, Minister responsible for the Petroleum Directorate. "The old system of artificial uneconomic targets clearly failed. The new rules are designed to ensure that local gas distribution takes place on a sound economic basis."

Natural gas from the Sable Offshore Energy Project is being delivered to a number of large industrial users in the province, but development of the local gas distribution system was halted when the provincial distributor, Sempra Atlantic Gas, applied to surrender its franchise last fall.

Public release of the draft regulations and legislative amendments give the public and potential franchise applicants an opportunity to comment and offer advice on the proposed amendments, which implement the energy strategy commitments.

As outlined in the energy strategy, the changes:

• eliminate natural gas distribution targets;
• provide for the development of standard municipal operating and tax agreements; and
• permit distributors to sell gas.

Comments from the public will be received until Feb. 15. Final amendments to the Gas Distribution Act and the related regulations are expected to be placed before the legislature this spring.

NOTE TO EDITORS: More information on the regulations may be found on the Nova Scotia Petroleum Directorate Web site at www.gov.ns.ca/petro in the news section. The energy strategy may be found at www.gov.ns.ca/energystrategy .