Northern Ontario Pipe Line Corporation (Canada) : Established in June 1956, the Northern Ontario Pipe Line Corporation (Northern Ontario Pipeline Crown Corporation Act S.C. 1956, c. 10) supervised the construction of the Northern Ontario section of the all-Canadian natural gas pipeline. The section was then leased to Trans-Canada Pipe Line Limited which retained an option to purchase. In 1963, the latter exercised this option and purchased the Northern Ontario section of the pipeline. The corporation was dissolved four years later.
The Pipe Lines Act was passed in 1949 (R.S.C. 1952, c. 211) giving the federal government control over interprovincial and international oil and gas pipelines. The Board of Transport Commissioners was responsible for reviewing proposals to move such products. In 1954 the Trans-Canada Pipe Lines Limited proposed an all-Canadian route from Alberta to Toronto and Montreal. The company encountered problems raising the necessary financing. The federal government was willing to invest in the project but Canadian Gulf, a major American partner, refused to sign gas supply contract if government had the potential controlling interest through common shares. In 1955 a compromise was worked out whereby the federal government (through a crown corporation Northern Ontario Pipe Line Corporation) agreed to build the portion of the pipeline through the uneconomical section between Manitoba border and Kapuskasing, Ontario at an estimated cost of 18 million or slightly more than one third of the total cost. Legislation was introduced on 15 March 1956. It included a provision for the Trans-Canada company to lease the line for up to twenty-five years with option to buy at any time.
As the legislation moved through parliament the Great Pipeline Debate as it became known came to a head over tactics used by C.D. Howe to loan to Trans-Canada necessary funds in order to allow it to go ahead with construction on the line in time to meet contract obligations. Use of closure was required at each stage of debate provoking an emotional resistence which helped to defeat the Liberal government in the 1957 election.
The corporation exercised design engineering supervision over the Northern Ontario section of the all-Canadian natural gas pipeline although the construction and site engineering were supervised by personnel from Defence Construction Limited. The main pipe line was completed and began operation in October 1958. Three additional compressor stations were constructed in 1959 and another in 1960.
There were three presidents of the Crown Corporation; D.A. Golden 1956-1962, J.A. Roberts 1962-1965 and J.H. Warren 1965-1967. The secretary of the corporation for its lifespan was W.J. Mulock.
Trans-Canada was able to meet its obligations and by the end of February 1957 it repaid the loan with interest and in 1963 purchased the Northern Ontario portion of the pipeline. By that time the crown corporation was only meeting annually to prepare an annual report. In November 1967 a bill was introduced repealing the Northern Ontario Pipe Line Corporation Act ( S.C. 1967-68, c.31, s.4).
