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 2011 Coal Cost Guide
CONTENTS
Page
Canadian Natural Gas Industry . . . . . . . . . . . . . . . 1
Natural Gas Charges. . . . . . . . . . . . . . . . . . . . . . . . 1
Other Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Map: Natural Gas Pipelines in Canada . . . . . . . . . 3
Rate Schedule Summaries - By Province
Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
INTRODUCTION - Canada
Canadian Natural Gas Industry
Canadian natural gas production is confined to British
Columbia, Alberta, Saskatchewan, Northwest
Territories, and off shore near New Brunswick.
Natural gas is available in the southern tier provinces,
from British Columbia to Québec; in some of the
Maritime provinces, and parts of Northwest
Territories. The map on page 3 shows the major
pipeline routes across Canada.
To obtain gas, a consumer may deal directly or
indirectly with one or more gas producers, one or more
pipeline companies, or a local distribution company.
Gas purchase arrangements can take many approaches.
The simplest avenue is through a local distribution
company (LDC). In most provinces distribution is
dominated by one or two LDCs. Twelve large LDCs
serve the provinces, with smaller municipal or investor
owned LDCs serving highly populated areas.
Maximum savings can sometimes be achieved by
negotiating directly with a producing company. A
buy/sell agreement is then negotiated with the LDC to
facilitate delivery of the gas to the consumer. A large
number of producers are active in Canada, ranging
from major oil and gas producers to small local
companies.
A major consumer can also negotiate directly with
a gas transmission company for transportation of the
gas. The major transmission companies and their
pipeline routes are shown on page 3. Brokers are
commonly used to facilitate these negotiations. A
broker may assume responsibility for buying or
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE
Section NG
Natural Gas - Canada
Compiled by Jerry Olson
Page
Rate Schedule Summaries
British Columbia . . . . . . . . . . . . . . . . . . . . . . . . 4
New Brunswick . . . . . . . . . . . . . . . . . . . . . . . . . 5
Northwest Territories . . . . . . . . . . . . . . . . . . . . . 5
Nova Scotia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
transporting the gas only, or he may assume full
responsibility for supplying gas to the consumer.
Natural Gas Charges
Natural gas charges include some or all of a number of
elements, depending upon the manner in which the gas
is acquired. These elements may be itemized and paid
separately, or lumped together as "all-in" charges in a
schedule. The following elements are typically
included where appropriate. All prices are quoted in
Canadian currency.
! Commodity or energy charge
That portion of the billing that is based on the total
usage during the billing period, usually measured in
cubic meters (cubes) or giga-joules. All prices are
quoted in Canadian currency.
! Fixed charge
A base or fixed monthly charge.
! Storage charge
If the consumer's gas demand fluctuates widely, a
charge may be levied for storage of gas when delivery
exceeds consumption, if the consumer has contracted
for a constant amount.
NG-CANADA
1
! Transportation charges
Depending on circumstances, charges may be levied
by multiple pipeline companies, plus the local
distributing company.
! Processing charges
The cost of processing the gas to make it suitable for
consumption.
! Gas cost adjustment
An adjustment of charges passed on to the consumer
based on the cost of gas to the utility or distributing
company.
! Peak shaving charge
A charge for use of natural gas in excess of contracted
demand. Peak shaving charges are a multiple of basic
charges and are levied on all excess up to a specified
percentage of base load, commonly 15%. Use in
excess of this amount is termed "illegal use" and the
rate charged is considerably higher.
The purpose of the peak shaving charge is to
discourage consumers from contracting for
unrealistically low peak use rates.
Other Definitions
! Buy/sell agreement
An agreement between an LDC and a customer
whereby the customer is allowed to purchase gas from
a producer or broker and then sell the gas to the LDC
at the price the LDC would normally pay for the gas,
presumably a higher price than that negotiated by the
customer. The customer then purchases delivered gas
at the LDC's standard price.
! Cubes
A volumetric measure of natural gas; one cube = 1
cubic meter of natural gas or 35.3 cu ft; 28.3 cubes =
1 mcf; 1 cube ~ 0.038 GJ; 1 GJ ~ 26 cubes.
NG-CANADA
2 COAL COST GUIDE
! Gate
The point at which gas is transferred from one
producer, processor, or pipeline to the next firm in the
transportation chain between the producer and the end
user. In buy/sell contracts this is typically the Alberta
border for gas originating in Alberta.
! Giga-joule (GJ)
A standard unit for measuring quantity of heat energy,
such as heat content of natural gas; 1 GJ = one billion
joules or 9.48 therms or approximately 0.95 mcf.
! Joule
The basic measure of energy in the metric system; 1
joule = 0.000948 Btu; 1 Btu = 1054.8 joules.
! Monthly transportation quantity (MTQ)
The interruptible amount of gas transported during a
month, less the firm quantity transported and any use
overruns during the billing period.
Rate Schedule Summaries
Current natural gas rate schedules applicable to the
mining industry are summarized on the following
pages. The schedules are appropriate for consumption
rates of 10,000 Gj/month or more. All monetary
amounts are in Canadian dollars. Canadian natural gas
production is confined to British Columbia, Alberta,
Saskatchewan and New Brunswick. Natural gas is
available in the southern tier of provinces, and now in
some of the Maritime provinces as well because of
recent offshore discoveries, and because of new
pipelines connecting New Brunswick and Nova Scotia
to the U.S. gas transportation system. The map on
page 3 shows the major pipeline routes across Canada.
Copyright © 2011 InfoMine USA, Inc.
 NG-CANADA
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 3
4
NG - CANADA

ALBERTA JANUARY 2011

Natural Gas Sched Schedule
Community Company Name Number Name Commodity Charge Remarks

Athabasca, Drumheller, AltaGas Utilities 2 Optional Large Fixed Charge: $14.017/Day Use must exceed 6,400 GJ/yr. Gas Cost Recovery
Grande Cache, Pincher, General Service Base Energy Charge: $0.987/GJ charge varies monthly. Gas Cost Recovery charge
Creek, Stetler Gas Cost Recovery Charge: $3.631/GJ shown applies during January 2011.
Provider Admin. Fee: $0.078/day

3 Optional General Fixed Charge: $23.361/Day Use must exceed 13,300 GJ/yr. Billing
Service, Demand/ Demand Charge: $0.257/Day/GJ of Demand demand is the greater of 100 GJ, the contracted
Commodity Base Energy Charge: $0.022/GJ amount or the greatest amount consumed in one
Gas Cost Recovery Charge: $3.631/GJ day in the last eleven months. Billing demand during
summer is divided by 2. Gas Cost Recovery charge
Provider Admin. Fee: $0.078/day shown applies to January 2011.

Calgary & Southern ATCO Gas South 3 High Use Total Fixed Delivery Charge: $3.2920/Day Use requirements: Greater than 8,000 GJ/yr. Billing
Alberta Total Demand Charge: $0.251/GJ/Day demand is the greatest 24 hour consumption,
(Formerly Canadian Western Natural Gas Co.) Carbon Costs: $0.283/GJ effective 2/2011.
COAL COST GUIDE

Edmonton & Northern ATCO Gas 3 High Use Total Fixed Delivery Charge: $4.345/Day Use requirements: Greater than 8,000 GJ/yr.
Alberta North Total Demand Charge: $0.329/GJ/Day is negotiated for buy/sell contracts. Billing demand is the
greatest 24 hour consumption, effective 2/2011.

BRITISH COLUMBIA JANUARY 2011

Natural Gas Sched Schedule
Community Company Name Number Name Commodity Charge Remarks

Mainland Terasen Gas 5 General Firm Gas Fixed Charge: $587.00/Mo. Rates are bundled, therefore include all gas supply
British Columbia Demand Charge: $15.943/GJ and transportation charges. No minimum use
Commodity Charge: requirements.
Lower Mainland: $5.332/GJ
Inland: $5.317/GJ Typical use rate 6,000 - 80,000 GJ/yr. Demand
Columbia: $5.353/GJ applies to peak volume daily usage.
Copyright © 2011 InfoMine USA, Inc.

Delivery: $0.645/GJ

7 Interruptible Fixed Charge: $880.00/Mo. Rates are bundled, therefore include all gas and
Gas Service Commodity Charge: transportation charges. No minimum use
Lower Mainland: $5.332/GJ requirements. Rates shown for commodity
Inland: $5.317/GJ charge are for the "fixed price option." An "index
Columbia: $5.353/GJ pricing option" is also available.
Delivery: $1.073/GJ

22 Large Volume Fixed Charge: $3,664.00/Mo. No minimum use requirements. Although no

Transportation Delivery Charge commodity charges are applicable, if use is greater
Service - Interruptible gas: $0.781/GJ than the contracted amount. Additional charges apply.
Copyright © 2011 InfoMine USA, Inc.

BRITISH COLUMBIA (continued) JANUARY 2011

Natural Gas Sched Schedule
Community Company Name Number Name Commodity Charge Remarks

Vancouver Island Terasen Gas LCS-2 Large Commercial Fixed Charge: $97.82/Mo Includes all rate riders for Gas Cost Recovery
Service Commodity Charge: $12.311/GJ effective 1/09.

LCS-2 users can not exceed 6,000 GJ/Mo.

LCS-3 Large Commercial Fixed Charge: $201.51/Mo Includes all rate riders for Gas Cost Recovery
Service Commodity Charge: $12.015/GJ effective, 1/09.

LCS-3 users exceed 6,000 GJ/Mo.

NEW BRUNSWICK JUNE 2011

COAL COST GUIDE

Natural Gas Sched Schedule

Community Company Name Number Name Commodity Charge Remarks

All areas served Enbridge Gas CLGS-LFO Contract Large Distribution Delivery: Contract Demand is based on daily contracted
in New Brunswick General Service LFO Demand: $5.20/GJ/CD amount. Use must exceed 40GJ/day.
Gas Delivered:
First 22,000 GJ: $6.4324/GJ
Next 36,000 GJ: $0.1900/GJ
All additional: $0.0800/GJ

CLGS-HFO Contract Large Distribution Delivery: Contract Demand is based on daily contracted
General Service HFO Demand: $3.90/GJ/CD amount. Use must exceed 40GJ/day.
Gas Delivered: $6.357/GJ

CGS Contract General Distribution Delivery: Contract Demand is based on daily contracted
Service Demand: $5.200/GJ/CD for amount. Commodity costs are negotiated with
Use: $11.8155/GJ Natural gas marketers. Use must exceed 6GJ/day.
NG - CANADA

NORTHWEST TERRITORIES JANUARY 2011

Natural Gas Sched Schedule
Community Company Name Number Name Commodity Charge Remarks

Inuvik Inuvik Gas Ltd. All usage: $19.30/GJ Restricted grid serves the city of Inuvik and environs.
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NG - CANADA

NOVA SCOTIA JANUARY 2011

Natural Gas Sched Schedule
Community Company Name Number Name Commodity Charge Remarks

All areas served Heritage Gas 2 Commercial Fixed Charge: $562.83/Mo. For consumption rates of 5,000 - 50,000 GJ
in Nova Scotia Commodity: varies annually.
Base: $2.156/GJ
Gas Cost Recovery: $8.08/GJ

3 Institutional/ Fixed Charge: $1,995.55/Mo. For consumption rates greater than 50,000 GJ
Industrial Commodity: annually.
Base: $0.1114/GJ
Gas Cost Recovery: $8.08/GJ
Demand: $23.136/GJ/Mo.
COAL COST GUIDE

SASKATCHEWAN NOVEMBER 2010

Natural Gas Sched Schedule
Community Company Name Number Name Commodity Charge Remarks

All areas served SaskEnergy GO3 General Basic rate: $77.40/Mo. Use requirements: 100,001-660,000 cu m/yr.
in Saskatchewan Service III Commodity charge: $1.1725/cu m Minimum charge equals basic monthly charge. All
Delivery charge: $0.0551/cu m transportation & storage are included.

GO2 General Basic rate: $25.75/Mo. Use requirements: 0-100,000 cu m/yr.

Commodity charge: $0.1725/cu m Rates include transportation charges and storage
Delivery charge: $0.0631/cu m costs.

All areas served TransGas S-90 Storage Capacity charge: $0.0295/GJ Mo. All charges on a monthly basis. Subject to a fuel
Copyright © 2011 InfoMine USA, Inc.

in Saskatchewan - firm Withdrawal rate charge: $1.3943/GJ gas and losses assessment of 1.00% of gas
Excess use: $0.0459/GJ received.
Overholding charge: $0.1200/GJ

S-99 Storage Capacity charge: $0.0295GJ All charges on a monthly basis. Subject to a fuel
Interruptible Withdrawal rate charge: $0.000/GJ gas and losses assessment of 1.00% of gas
Excess use: $0.0459/GJ received.
Overholding charge: $0.1200/GJ

D-11 Industrial Demand charge: $4.7111/GJ Mo. The billing demand will be the contract demand.
Transportation Transported gas must exceed 243,000 GJ/yr.
(Intra-provincial) Interruptible