Options for Frontier Cost Recovery

Background:

Through the Frontier and Offshore Regulatory Renewal Initiative (FORRI), federal, provincial and territorial government departments and regulators are working together to review oil and gas regulations and administrative regimes as they relate to frontier and offshore areas.
As part of its administrative review, FORRI wishes to review options, and identify an optimal approach, for recovering the costs for regulatory work carried out by the National Energy Board (NEB), the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) and the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) (collectively referred to as the boards), as well as for potential cost recovery for activities carried out by Natural Resources Canada (NRCan) and Aboriginal and Northern Affairs Canada (AANDC).   These activities are carried out pursuant to the responsibilities for these bodies contained in the Canada Oil and Gas Operations Act (COGOA), the Canada Petroleum Resource Act (CPRA); and the Canada-Newfoundland Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (collectively referred to as the Acts).

Statement of Work:  

Identify the factors required for a cost recovery regime with regulatory charges required for all of the work of the NEB, CNSOPB and C-NLOPB carry out to meet their mandates, and relevant work conducted by NRCan and AANDC, pursuant to the Acts.

Identify options for a cost recovery regime that could be implemented by all of the boards, and NRCan and AANDC. 

Sole Source Justification:

Chymko Consulting Ltd. is relied upon by regulators across Canada to provide reliable analysis for cost of service and cost recovery models for regulatory purposes.  Chymko Consulting Ltd. has the expertise and track-record required to provide the complex research and deliverables required in the current contract.

Chymko Consulting Ltd. has a long history of conducting cost of service studies for the utility and energy sectors.  Chymko Consulting Ltd. specializes in developing rate design so that costs are fairly recovered and in financial regulatory cost recovery analysis.  Chymko Consulting Ltd. has provided these services for governments, regulators and companies across Canada, from coast to coast.  The company is well known and respected for the quality and expertise of its work; their cost of service studies are regularly relied upon in regulatory decisions.  

Chymko Consulting Ltd. has unique knowledge and understanding of cost of service and cost recovery mechanisms, having prepared products such as a cost of service study for hearings before the Nova Scotia Utilities Board (2011), and alternatives for cost recovery for the National Energy Board for amending its cost recovery regulations (2005).  Due to the depth and range of its expertise, Chymko Consulting Ltd. can conduct both the cost of service analysis and develop cost recovery models.

In accordance with the Government Contract Regulation exception, this requirement is being directed to the proposed Contractor who is the only company capable of performing the contract.  

Estimated Value:  The estimated cost is $70,000.00 excluding GST.    

Period of contract:  From date of award to March 31, 2014 

Proposed Contractor:

Chymko Consulting Ltd.
1015 4th Street S.W.
Calgary Alberta
T2R 1J4