______________________

John Pickernell

Assistant Board Secretary

Ontario Energy Board

416-440-7605

Fax: 416-440-7656

Website: www.oeb.gov.on.ca <http://www.oeb.gov.on.ca/>

Official Correspondence: BoardSec@oeb.gov.on.ca



Address:

P.O. Box 2319

2300 Yonge Street 27th Floor

Toronto, ON

M4P 1E4

______________________





________________________________

From: F Dutot [mailto:fdutot@tcc.on.ca]
Sent: November 27, 2007 3:22 PM
To: BoardSec
Cc: mthebeau@uniongas.com
Subject: Union Gas Application Nov 26 07 EB-2007-0837



TIPPERARY STORAGE LANDOWNERS' ASSOCIATION



c/o FRED DUTOT

77501 Tipperary Line

R.R.#3, Clinton, Ontario, N0M 1L0







November 26, 2007







Ontario Energy Board

Box 2319

2300 Yonge Street, 26th Floor

Toronto, Ontario

M4P 1E4



ATT: Kirsten Walli, Board Secretary



Dear Ms Walli:



RE: Union Gas Limited - Application to purchase shares of Tipperary Gas Corp.

EB-2007-0837



The TSLA held a meeting on November 22, 2007 to discuss Union's application to purchase 75% of the shares of the Tipperary Gas Corp (EB-2007-0837).



The TSLA members do not object to the proposed purchase with the understanding that Union will have controlling interest and be the sole operator of the Tipperary Storage Pools providing all previous agreements and Conditions of Approval are adhered to.



The TSLA does not agree "that no party, except Union and Tribute, is affected by the proposed transaction". This application leaves many questions for TSLA members.



The landowners are asking Union Gas to clarify their position on the following:



INSURANCE -



The Marsh insurance study resulted in Tribute/Tipperary being instructed to carry 20 million dollars in general liability insurance and 5 million dollars in pollution liability insurance on the Tipperary Storage Project for as long as it is operational.



Q1) Will there be any change in these amounts of insurance as a result of the Union purchase?



Page 2



Q2) Who is responsible for the premium payments?



Q3) Who will provide proof to TSLA each year that the premium has been paid as per our agreement.



WATER WELL SAMPLING -



The OEB Condition of Approval 1.6.1 (1V) indicates there are water samples to be taken from the DSA water wells once each year for 5 years after the annual injection cycle is complete.



Q1) Who is now responsible to notify TSLA when the injection phase is complete?



Q2) Who will TSLA contact to instruct when the samples are to be taken?



COMPENSATION ISSUES -



Q1) Who is now responsible for the residual gas payments to the unitholders?



Q2) Who is responsible for the annual storage lease payments to the DSA landowners?



Q3) To whom does TSLA report any changes in annual lease rates (ie CPI or changes between Union and it's Lambton storage lease holders) as required in the amending agreement?



Q4) To whom would landowners direct any complaints after Union becomes the operator of the Tipperary Pools?



COMMENTS -



This application confirms TSLA's original position that Tribute never had the technical expertise or financial ability for this project as it now needs Union Gas' financial assistance to complete this project.



This contradicts all of the evidence provided by TRIBUTE/TIPPERARY GAS EXPERTS and one Donald Crich that they did have the finances and operating expertise to support this project at the 2005 OEB hearings.















Page 3



COSTS -



The TSLA requests cost eligibility for our costs incurred pertaining to this application #EB-2007-0837 as this application directly affects all of the DSA landowners of both Tipperary Pools.



Respectfully,







Fred Dutot

Executive Director, Tipperary Storage Landowners' Association



Cc Union Gas Limited - Ms Michele Thebeau