CALGARY (CP) — The
Independent Petroleum
Association of Canada urged
the National Energy Board
Thursday to relax ite rules
and allow export to the

United States of enough nat-
ural gas to heat all of
Canada’s 2.7 million gas-
serviced households for 21
yeara.
TPAC, which represents
small and medium
producing companies, said
there is enough gas in
Canada to protect domestic
needs and still permit export

of more than seven trillion
eubie feet, worth $22 billion,

That .unprecedented
volume is more than three
times the amount of the
surplus estimated by the
board early this year.

In a February report, the
board” said ita estimate of
longterm gas reserves and
shortterm deliverability
from those reserves showed
an exportable surplus of two
trillion cubic feet.

For the previous seven’
years, the board had refused.

to authorize new large-scale
exports, saying Canada did

not have a proved gas sur-
plus. .

IPAC, however, said that -:

even the February report is
fer too conservative and
cited four main arguments
for higher surplus
estimates:
—Alberta’s recent decision
to keep a 25-yeor reserve for
provincial need instead of
the previously-required 30
years adds 2.4 trillion cubic
feet to the national surplus.
—An IPAC aurvey of gas
pools in three Alberta areas
found 2.6 trillion cubic feet of

i
;

gas not included in energy
Lv ard estimates.

—The energy board ia too
pessimistic about the in-
c .aged in reserves that will
comé from continued ex-
floration and development.

—The gas industry moves
faster than the board
estimates in making gas
deliverable, preparing pools
for production and con-
necting them to pipelines.

In written testimony filed
Thursday, IPAC’ president
‘Norman Frost appealed to
the board to “utilize realistic

assumptions” instead of ex-
cessively-conservative ‘
forecasts for‘ reserve ad-
dition and deliverability,

Frost, who is ‘vyice-

president of Sulpetro Ltd, ;
sald producers will keep .
finding and developing more

gas supplics if they are
encouraged by new and
large export approvals,

He spectfically endorsed
7.8 trillion cubic ‘feet in ex-
port applications currently
under consideraton,

but added that the board. :

sould defer approval of

another 2.3 TCF that would
e under eaaunae
ex of, expo!
cans i
‘The exterision applications
at did not win IPAC en-

reement are by Westcoast -

ansmission Co, Ltd.,
Alberta and Southern Gas
Co, Ltd., Canadian-Montana

~. Pipe Line Co,, and Niagara

Gas Transinieaion Ltd,

, Andrew Polter,- manager
of regulatory affairs for
FPAC, said average grons
additions to reseryes have

' been relatively constant far

| Paste 2, The Herald, Friday, August $1970

‘18 years at about 3,5 trillion
cuble feet a year.

Potter said there inno sign
that auch additions will start
a fast as the

as
energy board has. predicted
ee uitions of only 4.1
trillion cuble feet in 1962 and
, 1,8 willion cuble feet in 1984.

“While we would, of
courae, agree with the
atatement that reserves
additions will In due course

decline, we see no evidence —
that the decline will comemgo: .. -

soon,” Potter said.

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