Houston Terminal Tank

Canada Energy Regulator – End of Life Cycle Program

Overview

South Bow is committed to the safe and responsible management of its pipeline assets. This includes the eventual decommissioning, abandonment and reclamation of its CER regulated facilities and pipeline assets at the end of their economic life.

In Canada, the CER requires pipeline companies under its jurisdiction to set-aside funds to cover the future cost of abandonment (Abandonment Cost Estimate or ACE). The CER committed to the public, landowners, Indigenous peoples and interested stakeholders to review the cost estimates at a minimum of every five years to ensure sufficient funds are available to meet future abandonment obligations.

South Bow’s most recent ACE was approved by the Commission in 2024 and can be found on the CER’s website: South Bow’s 2021 Abandonment Cost Estimate.

South Bow collects an Abandonment Surcharge from customers that is set-aside in a trust held exclusively for the purpose of abandonment. South Bow annually reports the funding status to the CER.

Resources

South Bow Abandonment Trusts

South Bow’s Trust Agreement (Trust) and the associated CER approval can be viewed on the CER’s website: South Bow’s Trust Agreement.

The money set aside for pipeline abandonment is invested by the designated Trustee according to the Statement of Investment Policies and Procedures (SIPP). 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 MH-001-2013 Reasons for Decision on Set Aside and Collection Mechanisms (COM).

The current SIPP is filed with the CER and can be accessed on the CER’s website COM and SIPP.

Companies that establish a Trust can access the funds for eligible abandonment activities (known as reclamation obligations), subject to approval of the CER.

Access and Download Annual Financial Reports

The following South Bow funding reporting forms, as submitted to the CER annually, can be accessed and downloaded below:

Contact information

Canada Energy Regulator (CER) Contact Information

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