NEB Ruling on Coastal GasLinkNEB Ruling on Coastal GasLink: On Friday, the National Energy Board (NEB) determined that the Coastal GasLink Pipeline Project does not fall within its jurisdiction. The NEB stated that the project does not form a part of the NOVA Gas Transmission Ltd. (NGTL) System, and is not vital or integral to it (NGTL), or any other federally regulated pipeline. On July 30, 2018, BC-based lawyer, Michael Sawyer, submitted an application to the NEB challenging the provincial jurisdiction over the project. The NEB subsequently held a hearing, taking in submissions from 13 active participants, and determined that based on the evidence presented that the project is properly regulated by the province of British Columbia. While the Coastal GasLink project is currently being constructed, we believe that the uncertainty caused by this review was still an overhang in the eyes of investors. With the path now fully cleared for the project, investors should revisit some of the names with exposure (and potential exposure) to Coastal GasLink, notably Macro (MCR-V) and Strad (SDY-T) as well as the camps providers, Black Diamond (BDI-T) and Horizon North (HNL-T).
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