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ARCHIVED – Administrative Monetary Penalty – Enbridge Pipelines Inc. – AMP-005-2015

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Administrative Monetary Penalty – Enbridge Pipelines Inc. – AMP-005-2015 – 23 February 2015 [PDF 57 KB]

NOTICE OF VIOLATION

REFERENCE NUMBER: AMP-005-2015

Information for Pipeline Company / Third Party / Individual:

Information for Pipeline Company / Third Party / Individual
Name: Enbridge Pipelines Inc.
Contact: Guy Jarvis
Title: President
Address: 425 - 1st Street SW
T2P 3L8
City: Calgary
Province / State: Alberta
Telephone: Information not available
Fax: Information not available
E-mail: Information not available

TOTAL PENALTY AMOUNT:
$100,000

Date of Notice:
23 February 2015

Regulatory Instrument #:
XO-E101-016-2013

On 10 July 2014 Enbridge Pipelines Inc. was observed to be in violation of a NEB regulatory requirement. This violation is subject to an administrative monetary penalty, as outlined below.

1. VIOLATION DETAILS

Date of Violation:
from: 10 July 2014 to: 10 July 2014
Total Number of Days: 1

Has compliance been achieved?

 X Yes

   No

If no, a subsequent NoV may be issued.

Location of Violation:

e.g. Facility/plant/head office or nearest geographical point
Cromer Manitoba, Line 3 replacement project construction site.

Short Form Description of Violation
(Refer to Schedule 1 of the AMP Regulations)

Provision and Short-form Description

 

   
Contravention of an Order or Decision made under the Act (ss. 2(2) of the AMP Regulations)
 X 

Failure to comply with a term or condition of any certificate, licence, permit, leave or exemption granted under the Act (ss. 2(3) of the AMP Regulations)

Condition 3 of Order XO-E101-016-2013

2. RELEVANT FACTS

Briefly describe reasonable grounds to believe a violation has occurred

1 - On 18 July 2013, the Board issued Order XO-E101-016-2013 (Order) to Enbridge Pipelines Inc. (Enbridge) under s. 58 of the National Energy Board Act (the Act) granting approval to construct and operate a new replacement pipeline between the Cromer Terminal and a tie-in point within NW-9-9-26 WPM (Project). Condition 3 of Order states: "Enbridge shall implement or cause to be implemented all of the policies, practices, programs, mitigation measures, recommendations, procedures and its commitments for the protection of the environment included in or referred to in its application and its related submissions." Condition 6 states: "Enbridge shall file with the Board, every two weeks until the construction is completed, construction progress reports. The reports shall include information on the activities carried out during the reporting period, any environmental, safety and security issues and non-compliances, and the measures undertaken for the resolution of each issue and non-compliance."

2 - In early March of 2014, NEB staff heard that Enbridge's project was behind schedule and likely to be delayed. This was confirmed on 12 March 2014 by Enbridge as they indicated they would no longer meet the original targeted construction completion date of 31 March 2014. An e-mail was sent by Board staff on 17 March 2014, requesting a project update regarding their plans on how they would leave the construction site during the spring break up and what changes to the Environmental Protection Plan would take place as a result of the change in construction schedule. On 19 March 2014, Enbridge responded by e-mail and provided contradictory status statements to what inspectors would later observe on-site in July regarding environmental-related mitigation measures.

3- Between March and July of 2014, Southern Manitoba experienced several heavy precipitation events and flooding in some areas. The land through which the pipeline RoW runs in Cromer, Manitoba is situated on higher ground, and therefore was outside the flood zone but still experienced heavy rains.

4 - 16 June 2014, the Board received two letters of complaint from landowners. These letters listed several concerns pertaining to project construction issues including the handling of topsoil, drainage, equipment cleaning procedures and safety concerns.

5 - On 9-10 July 2014, NEB staff and Inspection Officers conducted an inspection of the Line 3 Replacement project. NEB staff visited approximately 20% of the project area and focused primarily on one of the landowner properties. Inspection officers observed that multiple construction mitigation measures committed to by Enbridge in its Environmental Protection Plan (EPP) to conserve topsoil, control erosion, control vegetation (including weeds) and manage drainage were not implemented (see Table 1: Non-Compliance Summary in Inspection Report from 9-10 July 2014). This lack of EPP implementation resulted in numerous non-compliances observed both on and off the construction RoW causing environmental damage to wetlands and property damage to a substantial amount of agricultural land.

6 - On 18 July 2014, an Inspection Officer Order DL-001-2014 was issued, requiring Enbridge to stop work on the project with the exception of remedying immediate safety concerns on the RoW. Mandatory actions included: installing fencing and signage around open excavation sites and trenches, as well as creating safe access across the RoW to enable the landowners to move their farm equipment. Further, the Order required Enbridge to complete a detailed assessment and subsequent action plan to address all safety and environmental issues, present and future access to agricultural lands, and take into account all concerns presented by landowners. The first specified measure of the Inspection Officer Order stated that, "Enbridge will not re-start construction, nor bring any construction equipment, or allow a contractor to access the site in relation to re-starting construction on the Line 3 Replacement Project (Project) until a resume work order is issued by a NEB Inspection Officer, except for the purposes of measure 2 and 3". This stop-work order did not preclude the Company from doing work associated with the environmental requirements contained in Condition 3 of Order XO-E101-016-2013 or additional safety remediation required as a result of non-compliances noted as a result of the 9-10 July 2015 inspection.

7- On 31 July 2014, NEB staff received Enbridge's Action Plan for the Enbridge Pipelines Inc. Line 3 Replacement Project at Ex-Cromer. This plan contained a detailed assessment of all safety and environmental protection (including access to agricultural lands) and a timetable for addressing each item.

8 - On 6-8 August 2014, NEB Inspectors conducted a second inspection of the RoW. Conditions on the RoW were similar to those noted during the July inspection. Enbridge representatives also stated they had recently completed weed spraying to control weed growth on the ROW notes in the 9-10 inspection. Prior to the close of the inspection, NEB inspectors provided a summary of their findings to Enbridge staff and indicated they would continue to review information obtained during the inspection. NEB inspectors confirmed that Enbridge had made progress on environmental concerns. With regards to landowner requests to implement fine cleaning procedures, NEB inspectors clarified they were not requesting Enbridge to implement these measures. Inspectors stated that should they choose to implement these procedures, it would satisfy the outstanding landowner concerns. In the absence of these measures, additional documentation addressing landowner concerns would be required prior to the Order being lifted.

9 - Following the issuance of the IO Order, Enbridge claimed that the environmental damage was a result of heavy weather that could not have been predicted. However, Enbridge's own EPP had anticipated mitigations for such conditions that NEB Inspectors found where inadequately implemented during the July inspection. The non-compliances observed by NEB staff (see Table 1: Non-Compliance Summary in Inspection Report from 9-10 July 2014) were confirmed by a 3rd Party Consultant in Enbridge's Action Plan submitted on 31 July 2014.

10 - On 28 August 2014, NEB Inspection Officer was satisfied that all the conditions of Order # DWL-001-2014 were met, and lifted the Order.

3. PENALTY CALCULATION

(a) BASELINE PENALTY (Gravity Value = 0)

(a) BASELINE PENALTY (Gravity Value = 0)
Category Individual Any Other Person
(Type A)     $1,365     $5,025
(Type B)     $10,000  X  $40,000

[Refer to AMP Regulations, Subsection 4(1)]

(b) APPLICABLE GRAVITY VALUE

[Refer to AMP Regulations, Subsection 4(2)]

Mitigating Aggravating
-2 -1 0 +1 +2 +3
 X  Other violations in previous seven (7) years -- --      X      --
On 6 February 2015, a notice of violation to Enbridge Pipelines Inc. for failure to comply with a term or condition of any certificate, license, permit, leave or exemption granted under the Act (ss. 2(3) of the AMP Regulations) on its Edmonton to Hardisty Pipeline Project (AMP-002-2015).
    Any competitive or economic benefit from violation -- --             --
n/a
 X  Reasonable efforts to mitigate / reverse violation’s effect      X              --
On 31 July 2014, NEB staff received Enbridge's Action Plan for the Enbridge Pipelines Inc. Line 3 Replacement Project at Ex-Cromer. This plan contained a detailed assessment of all environmental protection (including access to agricultural lands) and a timetable for addressing each item. This implementation is currently underway and the Board will continue to monitor the long-term effectiveness of these measures.
 X  Negligence on part of person who committed violation -- --      X      --
Enbridge was negligent in it's commitments relating to environmental protection as outlined in its EPP as it did not take all reasonable steps to prevent environmental damage.
 X  Reasonable assistance to Board with respect to violation              X      --
Enbridge responded to landowner environmental concerns noted above only when required to do so by the Inspection Officer Order.
 X  Promptly reported violation to Board                  X  --
Failure to report violation in any of the bi-weekly project updates required as a condition of project approval.
 X  Steps taken to prevent reoccurrence of violation      X              --
As required by the Order, Enbridge submitted a revised EPP to address non-compliance and landowner concerns noted in the Order.
    Violation was primarily reporting / record-keeping failure             -- -- --
n/a
 X 

Any aggravating factors in relation to risk of harm to people or environment

-- --          X     

NEB inspection found that a lack of EPP implementation resulted in numerous non-compliances observed both on and off the construction RoW causing significant environmental damage to wetlands and property damage to a substantial amount of agricultural land. Specific noncompliances included improper soil handling, rutting, weed control, and erosion posing a significant hazard to the environment.

The non-compliances observed by NEB staff were confirmed by a 3rd Party Consultant in Enbridge's Action Plan submitted on 31 July 2014.

(c) TOTAL GRAVITY VALUE
+5

(d) DAILY PENALTY
(The baseline penalty, adjusted for the final gravity level)

$100,000

(e) NUMBER OF DAYS OF VIOLATION
(If more than one day, then the justification must be provided.)

1

Notes to explain decision to apply multiple daily penalties, or "Not Applicable"

Not Applicable

4. TOTAL PENALTY AMOUNT

$100,000

Note: The total penalty amount shown is based on the period described in Step 1 above. If compliance has not been achieved, a subsequent Notice of Violation may be issued.

5. DUE DATE

(30 days from receipt of Notice of Violation)
25 March 2015

Notes

You have the right to make a request for a review of the amount of the penalty or the facts of the violation, or both, within 30 days after the Notice of Violation was received.

If you do not pay the penalty nor request a review within the prescribed period, you are considered to have committed the violation and you are liable for the penalty set out in the Notice of Violation. The penalty is due on the date indicated above.

The unpaid penalty amount is a debt due to the Crown and may be recovered by collection procedures stipulated in the Financial Administration Act.

The information regarding the violation may be posted on the NEB website:

  1. 30 days from the date this Notice of Violation was received or;
  2. upon issuing a decision following a Request for Review.

To Make Payment:

You may remit your fee payment by Electronic Funds Transfer (EFT) or by cheque payable to the order of Receiver General for Canada.

EFT payments can be arranged by contacting the Director of Financial Services, Monday to Friday, from 09:00 to 16:00 Mountain Time:

  • Telephone: 403-606-0779 / 800-899-1265
    Fax: 403-292-5503 / 877-288-8803

Cheques should be made out to the "Receiver General for Canada" and mailed to:

  • National Energy Board
    Attention: Finance
    Centre 10, 517 - 10th Avenue SW
    Calgary, Alberta
    T2R 0A8

Your completed Payment form should be enclosed with your payment.

To Request a Review

Pursuant to the NEB Act, Section 144, you may file a request for a review of this Notice of Violation by the Board.

The date of filing is the date on which the document is received, as indicated by the date on an e-mail submission or the stamped on the document by a NEB employee.

If you elect to make a request for a review, complete and submit the attached Request for Review form to:

  • Administrative Monetary Penalty - Reviews
    National Energy Board
    Centre 10, 517 - 10th Avenue SW
    Calgary, Alberta
    T2R 0A8

For more information on reviews, please see the Administrative Monetary Penalties Process Guide available on the NEB's website.

Sincerely,

Robert Steedman

Designated Officer
Administrative Monetary Penalties

403-299-3178

Date modified: