FRASER MILNER CASGRAIN LLP

A.L. McLarty, Q.C. (403) 268-7022 [email protected]

December 20, 2004

Filed Electronically

Mr. Michel L. Mantha Secretary National Energy Board th Avenue S.W. 7 , Alberta T2P 0X8

Dear Mr. Mantha:

Subject: Hearing Order GH-1-2004 Regarding Various Applications to the National Energy Board for the Mackenzie Gas Project Our File No. 507794-1/ALM

Please find attached an Application made on behalfofthe Mackenzie Explorer Group, pursuant to Section 6(1) ofHearing Order GH-1-2004, to become an Intervener in the proceeding relating to the Mackenzie Gas Project.

Yours truly,

FRASER MILNER CASGRAIN LLP

cc: Mackenzie Gas Project Applicants /Attachment

12169621 .DOC

30th Floor Fifth Avenue Place 237— 4th Awnue SW Calgary AB T2P 4X7 Telephone (403) 268~7000 Fax (403) 268~3l00 www.fmc-law.com Lawyers in: Montréal Ottawa Calgary NATIONAL ENERGY BOARD

IN THE MATTER OF THE NATIONAL ENERGY BOARD ACT (NEB ACT), BEING CHAPTER N-7 OF THE REVISED STATUTES OF CANADA, 1985, AS AMENDED, AND THE REGULATIONS MADE THEREUNDER;

AND IN THE MATTER OF THE CANADA OIL AND GAS OPERATIONS ACT (COGOA), BEING CHAPTER 0-7 OF THE REVISED STATUTES OF CANADA, 1985, AS AMENDED AND THE REGULATIONS MADE THEREUNDER;

AND IN THE MATTER OF THE CANADIAN ENVIRONMENTAL ASSESSMENT ACT (CEAA), BEING CHAPTER 37 OF THE STATUTES OF CANADA, 1992, AS AMENDED, AND THE REGULATIONS MADE THEREUNDER;

AND IN THE MATTER OF APPLICATIONS TO THE NATIONAL ENERGY BOARD (the NEB or the BOARD) FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE MACKENZIE GAS PIPELINE AND APPLICATIONS FOR AUTHORIZATION FOR THE MACKENZIE GATHERING SYSTEM AND APPLICATIONS FOR THE APPROVAL OF DEVELOPMENT PLANS FOR THE TAGLU, PARSONS LAKE AND NTGLINTGAK FIELDS (THE MACKENZIE GAS PROJECT).

TO: The Secretary National Energy Board Calgary, Alberta

APPLICATION BY THE MACKENZIE EXPLORER GROUP, PURSUANT TO SECTION 6(1) OF HEARING ORDER GH-1-2004 TO BECOME AN INTERVENER IN THE PROCEEDING RELATING TO THE MACKENZIE GAS PROJECT

This application is made on behalf of the Mackenzie Explorer Group (Explorer Group). The Explorer Group is an unincorporated, non-associated group ofcompanies and partnerships that have agreed to work together to pursue common interests in respect of the Mackenzie Gas Project. The Explorer Group is made up of:

• Anadarko Canada Corporation • BP Canada Energy Company • Chevron Canada Resources • Devon Canada Corporation • EnCana Corporation. • Nytis Exploration Company • Petro-Canada Oil and Gas

Explorer Group Interest

2. The Explorer Group claims an interest in the proceeding relating to the Mackenzie Gas Project by virtue ofthe rights and interests held by its member companies. Each member of the Explorer Group has a significant stake in exploratory and/or discovery licenses held by them within the geological basin that will be served by the Mackenzie Gas Project.

Explorer Group Substantive Issues

3. The Explorer Group has some interest in all of the issues identified in Appendix I to Hearing Order GH- 1-2004 to the extent that any or all of those issues may ultimately impact on the Explorer Group member companies’ ability to obtain reasonable and effective access to facilities to further facilitate the exploration for, development and production of natural gas from lands in which the Explorer Group companies have a significant investment and material interest.

4. The Explorer Group’s specific interest in this proceeding relates to the desire of its member companies to see the geological basin within which the Mackenzie Gas Project will be situated, opened without delay and in a manner that acknowledges and facilitates open and equal access and that offers flexibility to accommodate production, processing and transportation of future as well as proposed anchor shipper volumes.

5. Without limiting either the scope of the interest of the Explorer Group, or the extent of issues that may be raised after a full review and assessment of evidence filed in the proceeding, including responses to information requests, the Explorer Group believes the following specific issues warrant further investigation, in the context ofthe public hearing:

• The cost ofequity; • The cost ofdebt; • Toll design; • Terms and conditions of service, including the terms of firm transportation service agreements; • The nature of and regulation ofthe facilities applied for under COGOA and the potential for access to those facilities on reasonable terms;

• The need for and details ofa suitable expansion policy; and

• The requirement for and details of a Code of Conduct as between users and shippers that are also facility owners.

Explorer Group Process Issues

6. The Explorer Group is concerned that the process to be established for the hearing, including the timing thereof to effectively deal with the issues to be raised as well the relationship of this proceeding to that ofthe Joint Review Panel process all warrant more explicit input and consideration. The Explorer Group submits a pre-hearing conference should be held by the Board to facilitate communication to and input from interested parties, with respect to process issues, prior to those issues being determined by the Board.

Participation

7. The Explorer Group intends to participate actively at the hearing by filing written evidence, by cross-examination of the applicant and of other interveners and by submitting argument, all as considered appropriate.

Representation

8. The Explorer Group intends to appear at and be represented in the proceeding by its counsel, Fraser Milner Casgrain LLP.

Communications

9. Communications with respect to this intervention should be addressed to: Ms. Suzanne Boucher-Chen Project Co-ordinator, Mackenzie Explorer Group c/o Devon Canada Corporation

2000, 400 — rd Avenue, S.W. 3 Calgary, Alberta T2P 4H2 Telephone: (403) 232-7135 Fax: (403)232-7211 E-mail: [email protected] and to: Mr. A.L. McLarty, Q.C. Fraser Mimer Casgrain LLP

th Floor, 237 — th Avenue, S.W. 30 4 Calgary, Alberta T2P 4X7 Telephone: (403) 268-7022 Fax: (403)268-3100 E-mail: [email protected]

9. The Explorer Group has the capability to access documents through the NEB’s website and wishes to receive notification when documents have been submitted to the electronic document repository.

10. The Explorer Group wishes to use English in its communication and correspondence with the Board and at the public hearing.

ALL OF WHICH IS RESPECTFULLY SUBMITTED THIS th DAY OF DECEMBER, 2004. 20

Suzanne Boucher-Chen Project Co-ordinator, Mackenzie Explorer Group cc: Mackenzie Gas Project Applicants (list attached) Mackenzie Gas Project Applicants

Mr. A. D. Martin Manager, Regulatory Affairs Imperial Oil Resources Ventures Limited _ th Avenue S.W. 237 4 P.O. Box 2480, Station M Calgary, AB T2P 3M9 Facsimile (403)237-2102

Mr. Don G. Davies Macleod Dixon LLP Banisters & Solicitors

3700, 400 — 3’~Avenue S.W. Calgary, AB T2P 4H2 Facsimile: (403) 264-5973

Ms. Carol J. Virginillo Taglu Development Manager Operations Technical

237 — th Avenue S.W. 4 P.O. Box 2480, Station M Calgary, AB T2P 3M9 Facsimile (403) 237-2204

Mr. Bob Bleaney Manager, Commercial & Regulatory Affairs Northern Development ConocoPhillips Canada (North) Limited P.O. Box 130, 401- 9th Avenue S.W. Calgary, AB T2P 2H7 Facsimile (403) 233-5159

Mr. Paul Davies Shell Canada Limited 400 — th Avenue S.W. 4 P.O. Box 100, Station M Calgary, AB T2P 2H5 Facsimile (403) 691-2444

Mr. Shawn H.T. Denstedt Bennett Jones LLP 4500 Bankers Hall East 855 _21~~~Street S.W. Calgary, AB T2P 4K7 Facsimile (403) 265-7219