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CER — End of Life Cycle Program

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Abandonment funding

TC Energy’s commitment to managing pipeline assets safely and responsibly throughout the life-cycle includes eventual abandonment when pipelines and facilities are no longer necessary for service. With Canada Energy Regulator (CER) oversight and approval, TC Energy collects sufficient funds to ensure there are financial resources available for pipeline abandonment. These funds are set-aside in abandonment trusts for larger pipeline companies, including: TC Energy, NGTL, Foothills, TQM and Keystone. For Great Lakes Pipeline Canada, a letter of credit is used instead to set aside funds for abandonment.

The Trusts are part of TC Energy’s overall commitment to landowners and communities to ensure the safe, responsible retirement of our assets. With CER oversight and approval, TC Energy manages these trusts and regularly reports on their status.

Annual reporting

TC Energy files Annual Abandonment Reporting Forms for each of its federally-regulated pipelines with the CER. In addition, Companies that use Trust funds, independent auditors review the annual financial statements of each Trust fund providing an opinion that the financial statements present fairly, in all material respects, the financial position of the Trust Fund for Abandonment of the Pipeline Assets at year-end, and its financial performance for the year then ended in accordance with generally accepted accounting principles.  This allows greater transparency for landowners and members of the public by providing actual amounts collected in the year, the year end balances, and demonstrating the investment decisions and actions have complied with the Statement of Investment Policy and Practices (SIPP) filed with the CER.  Click on each pipeline’s link below to view these documents on the CER site.


Trust investment

The money set-aside for pipeline abandonment is invested by the Trustee according to the SIPPs.  TC Energy filed each pipeline’s current SIPP with the National Energy board (NEB), now called the Canada Energy Regulator (CER) in 2015.  Any change to a SIPP will be reflected in a revised filing to the NEB.

Each Trust is a “qualifying environmental trust” (“QET”) within the meaning of the Income Tax Act (Canada) and is maintained for the sole purpose of setting aside funds to secure a pipeline’s reclamation obligations in respect of sites in Canada used primarily for the operation of TC Energy’s pipeline systems.

The purpose of the SIPP is to communicate the investment guidelines and monitoring procedures appropriate to the objectives of the Trust and in accordance with the NEB’s MH-001-2013 Reasons for Decision on Set Aside and Collection Mechanisms and the provisions of the Income Tax Act which govern QETs.

National Energy Board regulatory documents

For more information on the current investment asset mix and policy, click on the links below to view the related documents on the CER site. 

On April 26th, 2019, TransCanada Pipelines, NGTL, Foothills filed a revised SIPP with the NEB that will be effective on June 25, 2019, found for each pipeline below.

NEB Decision Approving the Pipeline Trust Agreements:
See the Decision that includes the Trust Agreements:


NOVA Gas Transmission Ltd:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

Statement of Investment Policies and Procedures (SIPP)


TransCanada PipeLines Limited:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

Statement of Investment Policies and Procedures (SIPP)


Foothills Pipe Lines Ltd.:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

Statement of Investment Policies and Procedures (SIPP)


Trans Québec & Maritimes Pipeline Inc.:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

Current Statement of Investment Policies and Procedures (SIPP):
See Appendix 2: https://apps.neb-one.gc.ca/REGDOCS/Item/View/2558208


TransCanada Keystone Pipeline GP Ltd.:
Annual Funding Forms and Trust Fund Financial Statements & Independent Auditors’ Report:

Current Statement of Investment Policies and Procedures (SIPP):

See Appendix 2: https://apps.neb-one.gc.ca/REGDOCS/Item/View/2557760


Great Lakes Pipeline Canada:
Annual Funding Form:

NEB Approval of Great Lakes Pipeline Canada’s Letter of Credit:


We’ve established trusts with the Canada Energy Regulator (CER), which replaced the National Energy Board (NEB) in August 2019, to ensure the responsible retirement of our assets once they have reached the end of their lifecycle.

Read more about the financial aspects of this process at the CER website.

Frequently asked questions

The amount to be collected and set aside each year is approved by the CER. As of December 31, 2017, the balance of funds set aside in the trust accounts are provided in the 2017 Abandonment Funding Forms for individual pipelines viewable in the forms above.

We are required to collect and set aside funds for all of our federally regulated pipelines under CER jurisdiction. This includes the Canadian Mainline, NGTL, Foothills and TQM natural gas pipeline systems and the Keystone oil pipeline system.

Our customers who transport natural gas and oil through our pipeline systems are levied a surcharge to cover costs associated with the abandonment of those pipelines. This surcharge is collected and protected in trusts established for each individual pipeline.

Yes. The CER requires a periodic review process that includes public participation to ensure appropriate funds are collected for pipeline retirement. We also regularly assess our finances to ensure adequate funds will be available when needed.

Smaller pipeline systems, including GLC, rely on letters of credit or surety bonds that are filed with the Board as their set aside mechanism.


Pipeline abandonment

Most of TC Energy’s Canadian assets are regulated by the Canada Energy Regulator (CER), which replaced the National Energy Board (NEB) in August 2019. When TC Energy decides to decommission or abandon pipeline assets, the pipeline in question makes the necessary filings with the CER. For example, NGTL applied to the NEB on August 18, 2016 to abandon a 266-kilometer section of the Peace River Mainline in Northwestern Alberta. On March 14th, 2018, the NEB approved the application after a regulatory review that included both written and oral evidence. More information on the NGTL’s Peace River Mainline Retirement Program can be found on TC Energy’s website

Additional information of CER oversight of pipeline abandonment and the process by which the company must follow can be located here.

Financial aspects of pipeline abandonment

TC Energy sets aside funds for abandonment and decommissioning of pipeline assets using carefully prepared cost estimates. As part of the NEB’s MH-001-2012 public proceedings, TC Energy filed abandonment cost estimates (ACEs) where the reasonableness of the cost estimates was considered. The NEB examined the reasonableness of assumptions regarding proposed abandonment methods, scope and rationale for each abandonment activity considered to estimate costs for various activities, and the approach to the estimation of contingency and provisions for post abandonment. The NEB approved TC Energy's first ACE Applications in 2014 that were in 2014 dollars.

The NEB committed to the public, all landowners, indigenous groups and interested stakeholders that cost estimates would be reviewed regularly, at least every five years to ensure sufficient funds are available. On February 8, 2016, the NEB initiated the 2016 Abandonment Cost Estimate Review for all Group 1 companies under its jurisdiction, such as the TransCanada Companies. The TransCanada Companies filed updated ACEs with the NEB on September 30th, 2016 reflecting costs in 2016 dollars. The revised 2016 ACEs also included details modifying its approach to estimating contingency, updated the NEB on consultation activities, and submitted a five-year preliminary decommissioning and abandonment plan. The five-year plan also addressed associated funding and impacts on funds set aside in each of the TransCanada Companies Abandonment Trusts. The NEB approved the TransCanada Companies updated ACEs on April 18, 2018. The most recently approved ACEs can be found on the NEB site at the links below:

NOVA Gas Transmission Ltd:
2016 Abandonment Cost Estimate

TransCanada PipeLines Limited:
2016 Abandonment Cost Estimate

Foothills Pipe Lines Ltd.:
2016 Abandonment Cost Estimate

Trans Québec & Maritimes Pipeline Inc.:
2016 Abandonment Cost Estimate

TransCanada Keystone Pipeline GP Ltd.: 
2016 Abandonment Cost Estimate

Great Lakes Canada:
2018 Group 2 Abandonment Cost Estimate (NEB approval pending)

Reimbursement and accessing trust funds

Eligible costs related to pipeline abandonment and decommissioning activities (collectively referred to as reclamation obligations) are intended to be funded from Abandonment Trusts. Pipelines with an Abandonment Trust as their set-aside mechanism pre-fund reclamation activities and seek reimbursement from their respective Abandonment Trust for costs incurred, subject to CER approval.

On September 25, 2015 Foothills, a subsidiary of TC Energy, filed an Application to Decommission approximately 9.1km of pipeline of its system. The NEB approved TC Energy’s Application on December 22, 2015 and work to decommission the section of pipeline commenced shortly thereafter. When work was completed, TC Energy applied to the NEB on December 6, 2016 for approval of reimbursement from the Foothills Abandonment Trust for costs associated with performing these reclamation obligations. The NEB granted Foothills’ request to be reimbursed for the Reclamation Obligation Costs and issued an order directing the Trustee of the Foothills Abandonment Trust to release the amount of $1,644,567 to Foothills Pipe Lines. To view the Foothills Applications and NEB Orders, please click on the following links on the NEB’s website:

Funding reporting and financial statements

Download and read funding reporting forms and financial statements for some of our key CER regulated Canadian natural gas and oil & liquids assets below.


Regulatory contact

Canada Energy Regulator (CER)
Local 1-403-292-4800 1-403-292-5503
Toll-Free 1-800-899-1265 1-877-288-8803


Ways to reach us

We’re here to answer your questions. For general questions you can contact us by email, but for a quicker response, please call us directly.

TC Energy
450 – 1 St. SW
Calgary, Alberta
T2P 5H1
1-800-661-3805 Toll-Free (North America)