ARCHIVED - 2015 Annual Report to Parliament

I am pleased to present the National Energy Board (NEB or the Board) 2015 Annual Report to Parliament.

The past year has been a period of unprecedented change for the Board. We have laid the groundwork for an ambitious modernization that will enable the Board to provide what Canadians expect and deserve: a fair, transparent and respectful regulator that delivers timely, high-quality results.

During 2015, I travelled across Canada as part of the NEB’s National Engagement Initiative, attending 80 meetings in 34 cities and towns in nine provinces and two territories. What I learned had a profound impact on me and how I see the NEB doing its work in the future. Canadians told us clearly that they want to be a part of the energy dialogue, and want accessible and transparent information about safe energy regulation in our country.

The NEB responded with increased stakeholder engagement, both within and outside of the adjudication processes. We established two regional offices in Montréal and Vancouver, in addition to our offices in Yellowknife and Inuvik, to ramp up our community-based and regional focus. This has positioned the NEB to work on building stronger, renewed relationships with regional leaders, landowners, environmental groups and Indigenous Peoples. We will continue to adopt new and innovative approaches to provide more meaningful opportunities for public participation in NEB hearing processes, and to provide Canadians with appropriate avenues of engagement with the NEB outside of hearings.

We have also taken steps to be more transparent, and to help Canadians better understand what we do every day. In the past year, we have added to our online Safety Performance Portal with an online interactive Pipeline Incident Map that offers Canadians the opportunity to view all pipeline incidents since 2008. We have begun publishing pipeline company field inspection reports online. We continue to focus on data collection and analysis, both to learn from past incidents and reduce future incidents, and to make more information about company pipeline safety performance available to the public.

A key aspect of the NEB’s mandate is to study energy matters over which parliament has jurisdiction, and to provide the government with advice on those issues. With the growing volatility and uncertainty in our energy markets, the need has never been greater for Canadians and policy makers to get objective, fact-based information on Canada’s energy system. The NEB is responding by providing more open, forward-looking energy data and information, both online and through our energy markets publications.

Demonstrating regulatory leadership will improve public confidence in the NEB’s ability to fulfill its mandate, as well as facilitate stronger coordination and cooperation with our territorial, provincial, federal, and international counterparts.

Regulatory excellence is not a static achievement but a perpetual pursuit. It is dynamic by nature. The NEB actively anticipates and embraces all feedback - whether sourced from external audits, stakeholders or our own internal management systems – as a part of our goal to lead regulatory excellence. The organization’s responsibilities are informed by a wide array of factors, including emerging industry developments, the proactive consideration of safety, environmental, societal, and economic trends that shape the Canadian public interest. We are already a strong regulator, and we will continue to improve our work to respond to our changing environment.

The National Energy Board is Canada’s energy and safety regulator. We do not simply make a decision on a project and then walk away. We oversee safety for the full lifecycle of energy facilities — from design and application assessment to construction, operation and abandonment. We work alongside communities and share the same goal of making energy infrastructure the very safest it can be.

The staff of the National Energy Board is made up of highly skilled employees, including engineers, environmental specialists, auditors, inspectors, engagement staff, legal and administrative specialists, and others. We are proud of the work we do protecting the interests of Canadians. Whether it’s managing public hearings, building a better website, recruiting talented new employees or walking pipelines conducting inspections - we know our work makes a difference in keeping Canadians safe, the environment protected and energy infrastructure reliable.

In order for the Board to effectively serve Canadians, we know they need to have confidence in the regulatory regime

and believe in the Board’s ability to enforce the orders, rules and regulations that are in place to protect Canadians, their communities and their environment.

Our work goes beyond approving projects and penalizing those who don’t follow our rules. We are here to serve the public. We want to make certain that Canadians know they have a regulator they can rely on, because the Canadian public interest is at the heart of everything we do.

In order to achieve our core mandate, the Board has outlined three strategic priorities where we will:

• develop and implement a framework for regulatory excellence
• continue to strategically develop, refine and communicate our actions on pipeline safety and environmental protection
• implement a strategic and enduring approach to engaging with Canadians

The National Energy Board is an independent federal regulator established in 1959. Our mandate is to promote safety and security, environmental protection and economic efficiency in the Canadian public interest, in the regulation of pipelines, energy development and trade. The Board reports to Parliament through the Minister of Natural Resources. In 2015, the NEB regulated approximately 73,000 kilometres (km) of interprovincial and international pipelines along with approximately 1,400 kilometres of international power lines across Canada. The pipelines,

owned by 100 companies, shipped approximately $99.7 billion worth of crude oil, petroleum products, natural gas liquids and natural gas to Canadians and export customers at an estimated transportation cost of $7.3 billion. Overall, 31 companies had ownership of NEB-regulated international power lines which transmitted approximately $3.4 billion of electricity into and out of Canada.

The main responsibilities of the NEB are established in the National Energy Board Act (NEB Act). More information on the background and operations of the NEB can be found on the Board’s website, www.neb-one.gc.ca.

The Board regulates Canada’s federal energy infrastructure over its complete lifecycle. During the design and applications assessment phase of projects, we review and impose conditions. When approved projects are being built and operated, we inspect and audit them. And, when a pipeline has reached the end of its usefulness, we review abandonment applications to ensure that it is abandoned in a safe and environmentally responsible manner.

In other words, the Board regulates from “start to finish”, and holds pipeline companies responsible for the full lifecycle of the pipelines they operate.

We require the companies we regulate to anticipate, prevent, manage, and mitigate any potentially dangerous conditions associated with their activities. Our Board Members and staff will not hesitate to use our full enforcement toolkit to achieve compliance with rules and regulations protecting Canadians and the environment.

In the first half of 2015, the National Energy Board conducted a National Engagement Initiative. Energy infrastructure, and the NEB’s role as the federal regulator, had been under growing scrutiny in the past several years, and the Board determined that in order to understand the issues facing the NEB, we had to reach out directly to the public. We asked Canadians to tell us what was most important to them about the work that we did, and how they felt we could adjust our pipeline safety program, public engagement activities and communications.

Accompanied by some technical staff and the Board Members who lived in each region, Chair Peter Watson met with as broad and varied a selection of people as possible to hear about their thoughts and concerns. Meetings were held with municipal and provincial leaders and staff, Indigenous chiefs and band councils, environmental groups, first responders and academics, as well as professional and industry organizations. Over a five-month period, the NEB attended 80 meetings, in 34 towns and cities across nine provinces and two territories.

The National Engagement Initiative was new territory for the NEB, unprecedented in the history of the regulator. It signaled a change in tone for how we interacted with Canadians. Over the course of the meetings, common themes emerged:

• Without exception, every person’s first priority is the protection of their local and regional environment – especially water systems and land – from negative effects and risks of energy infrastructure.
• Stakeholders clearly said that they want a two-way conversation with the NEB and industry, where not only can they say what is on their mind, but also receive assurance that they are being heard and that their concerns are being acted on.
• Stakeholders also questioned whether regional emergency management systems would work properly when needed. They realized that this was a shared responsibility of municipal first responders, industry, other levels of government and emergency management agencies, but were not confident the system parts were fully aligned and working together.

The NEB regulates pipelines, energy development and trade in the Canadian public interest. The public interest is inclusive of all Canadians and refers to a balance of economic, environmental and social considerations that changes as society’s values and preferences evolve over time.

A key component of this process is listening to what Canadians have to say about how energy infrastructure is developed and regulated, engaging them in meaningful dialogue about issues and solutions, and publicly sharing information about regulatory initiatives.

Application to Participate Process

Public participation is an important element of an open and effective regulatory process. Under the NEB Act, the Board must hear from those who are directly affected, and may hear from those with relevant information or expertise.

In developing its Application to Participate process, the Board listened to public feedback about the Application to Participate application form and the process in general. In 2015, we launched a Participation Portal (Portal) which allows accepted Intervenors to organize, submit, and view information related to their hearing participation online, in a centralized system. The Board also has Process Advisors available to assist applicants by phone or email for one-on-one support. Process advisors also offer online information sessions that provides an overview of the application to participate and hearing processes.

Participant Funding Program

The NEB administers a Participant Funding Program (PFP) that provides modest funding to facilitate the participation of individuals, Indigenous peoples (First Nations, the Métis and the Inuit), and non-industry not-for-profit organizations in hearings with respect to new or abandonment projects for pipelines or powerlines. PFP was established in 2010, and expanded in June 2015 to include Environmental Assessments of designated projects as per the Canadian Environmental Assessment Act, 2012 (CEAA 2012) Regulations Designating Physical Activities.

Since the PFP was introduced in 2010, the NEB has announced more than $11.5 million for participation in 19 eligible public hearings. To date, $5.57 million in funding was awarded to 171 recipients which represents 13 of the hearings. Among those who had applied, approximately 80 per cent of the funding was awarded to Indigenous groups.

A five year evaluation was undertaken between November 2014 and September 2015 to examine the program’s relevance, effectiveness, efficiency and economy for the period of June 2010 to June 2015 during which the initial Terms and Conditions (2010) of the PFP were applicable. The evaluation found the program is aligned with the roles, responsibilities and priorities of the federal government as well as the mandate and priorities of the Board. There is a continuing need for PFP to support the meaningful participation of indigenous groups and other stakeholders in the Board’s processes.

Participation of Indigenous
Groups in the Regulatory Process

Participation of Indigenous Groups in the Regulatory Process We are committed to reaching out to Indigenous people and communities early in the hearing process, where there is a potential impact on the rights and interests of these groups from NEB-regulated projects. The Board’s Enhanced Aboriginal Engagement (EAE) program provides proactive contact with Indigenous groups that may be affected by a proposed project, and to assist them in participating in the NEB’s regulatory process.

In 2015, under the EAE initiative, we contacted 210 Indigenous communities and organizations, and held 32 meetings with them, many in their own communities. These meetings provide an opportunity for Indigenous representatives to have their questions about NEB processes answered. We also have Process Advisors who, as part of their role, support Indigenous groups who are participating in public hearings.

The Board is committed to hearing from Indigenous groups in a way that respects their values and traditions. In an effort to make public hearings more accessible, the NEB adapts its processes to assist Indigenous intervenors so they may effectively participate.

The Board continues to integrate ceremonies and traditional practices into our hearing processes at the request of Indigenous participants. Since Indigenous groups maintain an oral tradition, this year during the TransMountain Expansion, NGTL 2017 System Expansion, Enbridge Line 3 and Energy East Project hearings we provided Elders and other community members with the opportunity to give their evidence orally at the hearing as well as in writing.

For all facility projects regulated by the Board, including those that do not require a public hearing, the Board continues to require companies to contact potentially impacted Indigenous groups early in their project planning, to explain the project, and consider and address any concerns they may have in the project design.

CEAA 2012 Report on Activities

For projects located on federal lands^Footnote 1, section 67 of the Canadian Environmental Assessment Act 2012 (CEAA 2012) requires that before federal authorities make any decision that would allow a project to proceed, they must determine whether a project is likely to cause significant adverse environmental effects. Under section 71 of CEAA 2012, the NEB is required, at the end of each fiscal year, to report to both Houses of Parliament on its activities under sections 67, 68 and 69 of CEAA 2012 during the previous fiscal year.

During the 2014–2015 fiscal year, the NEB completed environmental assessments for two projects that are located on or that cross federal lands. In each case, the NEB determined that carrying out the project would not likely cause any significant adverse environmental effects and approved the project.

Land Matters Group

The Land Matters Group (LMG) is a multi-stakeholder advisory group consisting of members of the public, regulatory, industry and landowner groups who have a vested interest in land matters and who are impacted by the activities of companies that are subject to NEB regulation.

The LMG is currently composed of approximately 70 individuals and organizational representatives from across Canada. The group is led by a Steering Committee, who meet in Calgary three to four times each year, composed of:

• (BC) Farmers Advocacy Office
• Union des producteurs agricoles du
• Québec (UPA)
• Canadian Federation of Agriculture
• Canadian Energy Pipeline Association
• Alberta Energy Regulator

The LMG brings together the knowledge and expertise of these diverse groups to facilitate in-depth discussion on land matters and to inform regulatory development, as a part of the Board’s strategic priority of Engaging Canadians.

As one of its initiatives this year, the LMG initiated work for a sub-committee to help shape information and additional guidance for landowners related to easement agreements and the Board’s oversight of land access and acquisition processes. Members of the Steering Committee were invited to participate in a panel session related to right-of-way issues at the Board’s Safety Forum in June 2015, which was heavily attended. The group continues to be involved in the shaping and oversight of research related to the physical issues of abandonment, and keenly interested in timely consultation related to regulatory change initiatives, including proposed Damage Prevention Regulations, among others.

Canadians depend on the pipeline transportation system for safe, reliable and efficient energy supply, now and in the future. The ability of this system to deliver natural gas, natural gas liquids (NGLs), crude oil, and petroleum products is also critical to Canada’s economy. The NEB is active and effective in Canada’s pursuit of a sustainable energy future by integrating relevant economic, environmental and social considerations when choosing a course of action.

Our requirements encourage innovation where possible but also specify mandatory design, operational practices or management methods when necessary. The regulatory framework supports a sustainable energy system that will meet Canadians’ needs today, while taking into consideration the needs of Canadians tomorrow.

Applications in 2015

Companies regulated by the NEB are required to seek the Board’s approval to, among other things:

• construct and operate international and interprovincial pipelines and international power lines in Canada, along with related facilities and activities, or modify or abandon existing facilities
• export crude oil, natural gas liquids and electricity, and export and import natural gas; and
• establish pipeline tolls and tariffs

Number of Applications Received 2014 and 2015

Number of Applications Received 2014 and 2015
	2014	2015
Section 52 certificates	4	2
Section 58 orders	44	52
Part VI Import/Export	511	526
Traffic, Tolls and Tariffs	15	22
Abandonment	3	1

Decisions and Recommendations Issued in 2015 Include the Following:

Facilities

Wolverine River Lateral Loop (Carmon Creek Section) Project

On 5 March 2015, the Board recommended that Governor in Council (GiC) approve the issuance of a Certificate of Public Convenience and Necessity (Certificate) to NGTL for the construction and operation of the proposed Wolverine River Lateral Loop (Carmon Creek Section) Project (the Project), subject to 16 conditions. The Project includes the construction and operation of a 61 km sweet natural gas pipeline, as well as tie-in connections to existing facilities, valve sites, launcher and receiver facilities for inline inspection, and cathodic protection. The project is located near Peace River, Alberta. Please see the NEB’s website to read the complete recommendation and decision (GH-003-2014).

North Montney Mainline Project

On 15 April 2015, the majority of the Board recommended that Governor in Council (GiC) approve the issuance of a Certificate of Public Convenience and Necessity (Certificate) to NGTL for the construction and operation of a proposed extension of the NGTL System to the North Montney area in northeastern British Columbia. The extension includes a 301 km sweet natural gas pipeline, three compressor stations, sixteen meter stations and associated facilities and is subject to 45 conditions. Please see the NEB’s website to read the complete recommendation and decision (GH-001-2014).

King’s North Connection Pipeline Project

On 2 June 2015, the Board issued a letter decision and Order, which approved the King’s North Connection Pipeline Project (Project), subject to 14 conditions. The Reasons for the Decision were released on 30 July 2015. The Project includes construction and operation of approximately 11 km of pipeline, two tie-in valves and associated facilities. The Project is located in the Greater Toronto Area of southern Ontario. Please see the NEB’s website to read the complete recommendation and decision (GHW-001-2014).

Abandonment of the Alaska Pipeline

On 30 March 2015, the Board granted Ruger Energy Inc. leave to abandon in-place the approximately 580-metre Alsask Pipeline, and to excavate and remove a riser (Pipeline), subject to 14 conditions. The Pipeline is located on crown land and crosses the Alberta/Saskatchewan border. Please see the NEB’s website to read the complete decision (MHW-002-2014).

Abandonment of the Pouce Coupe A Pipeline

On 29 May 2015, the Board granted AltaGas Holdings Inc. leave to abandon in-place the approximately three-km Pouce Coupe A Pipeline, (Pipeline), subject to six conditions. The Pipeline is located on private land and crosses the British Columbia/Alberta border. Please see the NEB’s website to read the complete decision (MHW-003-2015).

Tolls and Tariffs

Application for Approval of New Services and Related Tolls and Tariffs

On 9 July 2015, the Board granted Alliance Pipeline Ltd. approval to implement new services and related tolls and Tariff on the Alliance Pipeline, commencing 1 December 2015. The approval included the proposed toll methodology and firm tolls, new services and associated terms and conditions, recoverable cost variances and abandonment surcharge and a requirement for a reserve account. Please see the NEB’s website to read the complete decision (RH-002-2014).

Trans Mountain Revised Nominations/Capacity Allocation

On 8 January 2015, the Board approved certain tariff amendments for Trans Mountain in order to reduce apportionment levels on the Trans Mountain Pipeline. These amendments incorporated verification procedures and verification limits in Trans Mountain’s nomination process. The Board considered it important that the nomination process be reflective of each shipper’s capability and intent to supply petroleum to, and remove petroleum from, the pipeline. Please see the NEB’s website to read the complete decision (RHW-001-2013).

Part VI - Imports and Exports

Under Part VI, applications to import and/or export come in two forms: short-term orders and long-term licences.

In 2015, the Board received seven long-term licence applications, down from the 20 applications received in 2014. There was a significant increase in the number of Part VI long-term (import and export) licence applications that were approved by the Board, from four Board Decisions rendered in 2014 to 22 in 2015.

Appendix F contains details of Part VI long-term (import and export) licence applications approved by the Board this year.

Service standards are an essential tool in today’s resultsbased management environment. The NEB has its own internal service standards for many regulatory functions and services.

The Board communicates to the public and stakeholders the expected period in which an application or request will be processed, having due regard to the assessment it

must carry out to fulfill the NEB’s mandate as stipulated in the legislation.

The following tables 1, 2 and 3 list the overall NEB service standards and results, as well as the standards and results for electricity export applications and section 58 applications in 2015.

NEB Engagement 2015

In 2015, the Board continued its northern engagement activities through regular interaction with Indigenous and government leadership and communities, as well as with regulatory, environmental assessment, and wildlife and renewable resource management agencies. Over 30 such meetings have taken place, several including the NEB’s Chair and CEO as an integral component of the Chair’s National Engagement Initiative, and our on-going commitment to listening to the voices of Northerners.

Engagement initiatives also involved the Board’s continuing participation in a number of working groups, committees, and conferences. These have included the NWT Board Forum, the Arctic Forum, the Nunavut Oil and Gas Summit, the NWT Geoscience Forum, the Arctic Council, the Beaufort Regional Environmental Assessment, and emergency preparedness exercises.

NEB representatives met with northern agencies regarding regulatory changes, project updates and roles post-NWT devolution. The January 2015 meeting included the Northern Projects Management Office (NPMO), NRCan, MVIRB and AANDC. The February 2015 Coordination on Northern initiatives meeting included Environment Canada, GNWT, MVIRB, water boards, and NPMO. The NEB Northern Regional Offices meet regularly with the Northwest Territories Office of the Regulator of Oil and Gas Operations (OROGO) to maximize cooperation and information exchange in the exercise of NEB and OROGO regulatory responsibilities.

The NEB continues to participate in the Arctic Regulators Forum, where regulators share lessons learned and best practices, and discuss regulatory issues. Our most recent involvement was at the 26–27 October 2015 conference in Tromsø, Norway.

Regulatory Developments

In 2015, the NEB worked on changes required to implement the Energy Safety and Security Act (ESSA), which received Royal Assent on 26 February 2015. The NEB will be prepared for open and transparent processes when ESSA comes into force on 26 February 2016. For example, the NEB will be able to conduct a public hearing in relation to its duties under COGOA, and to manage a participant funding program for environmental assessments where CEAA 2012 applies.

Arctic Offshore Drilling

The NEB received notification from Imperial Oil Resources Ventures Limited (IORVL) on 26 June 2015, stating that it has deferred its proposed Beaufort Sea Joint Venture Exploration Drilling Program. IORVL indicated that they will ask the federal government to have their exploration licenses retroactively extended to 16 years. Imperial stated that this extension would provide time to do the necessary technical work and complete the regulatory process. The NEB has suspended all work on IORVL potential application and is awaiting notice from IORVL to initiate any further action.

Northern Preparedness, Emergency Management and Security

The NEB has participated, planned or played a role in a number of multi-agency and multi-jurisdictional exercises such as Arctic Council Emergency Prevention Preparedness and Response (EPPR) Working Group Marine Oil Spill Preparedness Agreement (MOSPA) exercise, the Canadian Coast Guard and Environment Canada led Science Table exercise for Canadian Forces OP NANOOK 2015 and the bi-annual U.S. and Canadian Coast Guards CANUSNorth exercise.

The NEB chaired the Beaufort Regional Environmental Assessment (BREA) Emergency Preparedness and Response Working Group that contracted the development of a week-long oil spill response training course that was delivered to Ulukhaktok, NT community members in July 2015.

The NEB actively participates in several working groups related to emergency management and security, such as the NWT-Nunavut Spills Working Group, the Arctic Preparedness Working Group, and the Arctic Security Working Group.

Mackenzie Gas Project (MGP)

On 20 August 2015, the NEB received an application from Imperial Oil Resources Ventures Limited requesting

an extension, for a period of seven years, of the sunset clauses in its approvals for the MGP. As the regulation for part of the MGP was devolved to the Government of the Northwest Territories, the NEB is coordinating the review of the requested extensions with the Regulator of Oil and Gas OROGO. The NEB and OROGO have initiated a joint consultation process asking parties to provide written comments with respect to the proposed extensions by 16 February 2016.

Geophysical, Drilling and Production Applications

The NEB granted one geophysical operations authorization, and 38 well approvals.

The safety of Canadians and protection of the environment in the construction, operation and abandonment of pipeline facilities regulated by the NEB are the Board’s top priorities, and have been a part of our mandate since 1959.

We are Canada’s energy regulator and safety is our top priority. Our safety programs are designed to make sure companies are effective in managing safety and environmental protection throughout the entire lifecycle of a pipeline - from design to construction, operation and through to abandonment.

We maintain a proactive approach to incident prevention and we take all available actions to protect the environment and the public. In order to deliver on our mandate, we have regulations in place that set clear expectations for industry. We evaluate project proposals, monitor compliance and enforce rules.

Holding Companies Accountable

The NEB’s expectations of regulated companies are set out in the acts and regulations relevant to the Boards mandate, as well as through Board directions and orders. Companies must fulfil any commitments they make in their submissions to the Board, throughout all phases of regulatory oversight.

On a continual basis, companies are required to anticipate, manage, and mitigate any potential threats to safety and the environment that may occur through the full lifecycle of their facilities. The Board expects companies to achieve this through a combination of performance-based management practices, prescriptive standards and project-specific conditions.

All aspects of a company’s operation are governed by legal requirements, from design through to abandonment. The NEB holds its regulated companies accountable against these expectations using a rigorous compliance verification and enforcement program, and through enforcement actions.

Compliance Verification Activities (CVA)

The Board uses CVAs to observe and gather information about the state of compliance in a specific area of a company’s operations, or to investigate whether companies are taking the appropriate preventive or corrective actions. The Board’s suite of CVAs includes:

• inspections (of facilities under construction or in operation)
• emergency exercise evaluations
• emergency procedures manuals reviews
• formal compliance meetings (to check the progress of programs or corrective actions)
• management system audits
• reviews of post-construction monitoring reports

CVAs are designed to determine if legislation and expectations are being followed, to assess if enforcement is required, and to provide feedback to a company. During a CVA, Inspection Officers observe the compliance status of regulated companies. Where a noncompliance is noted, follow-up is undertaken to verify corrective actions have been put in place and to determine appropriate enforcement actions.

As a key element of proactive incident prevention, the NEB compiles information on the company’s performance for the purposes of establishing trends, and for assessing the amount of oversight required in the future. The results of compliance verification activities are used along with other inputs, such as incident data, to inform the NEB’s compliance plan for the coming year.

In 2015, the NEB conducted a total of 348 compliance activities related to security, public safety and environmental protection.

Enforcement Actions

Where non-compliances are observed through CVAs, the NEB uses enforcement actions to achieve company compliance as quickly and as effectively as possible. This reduces hazards and protects the safety of workers, the public, the environment and property. The NEB’s guiding enforcement policy states:

• NEB enforcement tools are not mutually exclusive and more than one measure may be employed to obtain compliance, deter future non-compliance or to prevent incidents/ accidents. When safety, security or environmental protection issues are identified, the NEB will use the most appropriate and efficient enforcement tool.

The Board took the following enforcement actions in 2015:

• 143 Notices of Non-Compliance (NNC) and Assurances of Voluntary Compliance (Canada Labour Code-related issues)
• 4 Inspection Officer Orders (IOO)
• 8 Safety Orders (3 original and 5  amended)
• 12 Administrative Monetary Penalties (AMPs)

The Board publishes compliance and enforcement documents online at www.neb-one.gc.ca

Environmental Compliance

Once a project is approved and construction is underway, the NEB holds companies accountable for meeting all environmental protection conditions. The NEB provides general oversight of company environmental performance and compliance with legislative requirements through various compliance verification activities. This includes reviewing the environmental reports that companies are required by Board conditions to submit, conducting construction inspections to ensure compliance with the company’s EPP and any Board conditions, and conducting operations inspections throughout the lifecycle of the project.

In 2015, NEB staff conducted over 100 CVAs specifically directed at ensuring that the environment is being protected, including 41 environmental construction and operations inspections, 30 environmental report reviews, and 36 compliance meetings with companies.

NEB environmental staff inspected pipeline construction activities, right-of-way reclamation activities following construction, trenched and trenchless watercourse crossings, construction and operation of compressor stations and pipeline maintenance activities through 2015.

Compliance Activity - 2015 Completed Activities

Compliance Activity	2015 Completed ActivitiesFootnote 2
Inspections	142
Emergency Exercises	20
Emergency Procedures Manual Review	13
Compliance Meetings	137
Audits	6
Report Reviews	30

A number of administrative monetary penalties relating to environmental protection were issued in the past year; more detailed information can be found in the Enforcement section of this Report, and on the NEB website.

We will continue to reach out to Canadians and meet with landowners, municipal representatives and Indigenous communities, to share information about the environmental compliance program and the various ways that Inspection Officers verify compliance.

Incident Management

Incidents are a reporting requirement under the NEB’s regulations. The Board’s regulated companies are accountable for anticipating, preventing, mitigating and managing all incidents. A company must immediately notify the NEB of any reportable incident that relates to the construction, operation or pending abandonment of its pipeline. The Board considers any incident unacceptable, and follows up on all reportable incidents.

As of January 1, 2015 companies were required to follow the NEB Event Reporting Guidelines and report all incidents to the NEB’s online Event Reporting System (ERS). The guidelines are intended to increase clarity on the definition of incident

for the various regulations the NEB uses. The NEB expects companies to use a precautionary approach to event and incident reporting which can be summarized as “when in doubt, report it”.

When the NEB is notified of an incident, its top priority is safety and security of people, and protection of property and the environment. In the event of a significant incident^Footnote 3, the Board has a comprehensive Emergency Management Program, which can include mobilization of a field response and activation of our Calgary based Emergency Operations Center.

Our overall role as the lead regulatory agency is to monitor company compliance as well as to assess the adequacy of the company’s emergency response (if required) and their subsequent investigation into the incident.

In 2015, NEB staff conducted
over 100 CVAs specifically
directed at ensuring that the
environment is being protected.

Reportable Incidents

In 2015, there were 90 reportable incidents under the Onshore Pipeline Regulations (OPR) compared to 72 in 2014. Figure 1 shows the number of events which occurred from 2008 through 2015 that resulted in an incident. While the number of incidents reported in 2015 increased when compared with 2014, it remains below both the 5 year and 3 year averages. There is evidence that this increase is partly caused by better understanding of incident reporting requirements as a result of the NEB Event Reporting Guidelines.

Figure 2 shows the breakdown of incident types reported from 2008 to now. The NEB is pleased to note that there have been zero fatalities reported for two consecutive years.

The incident types to notably increase year over year were “Adverse Environmental Effects”, “Operation Beyond Design Limits” and “Fires”. In the NEB Event Reporting Guidelines the

Figure 1: Total Number of Events Resulting in Incidents under the Onshore Pipeline Regulations (OPR) 2008-2015

NEB provided significant guidance to companies on both “Adverse Environmental Effects” and “Operation Beyond Design Limits”; the increases in these incident types alone account for 70 per cent of the difference between 2014 and 2015. As noted above, this suggests that increased clarity and understanding of reporting requirements resulted in an increase in reporting from companies rather than an increase in occurrence of these incidents, which is in the Board’s view a positive outcome.

The remaining incident type that increased notably year over year was “Fires”. The increase in fires was as a result of equipment and electrical problems as well as welding or cutting. Root cause data for fires in 2015 does not yield a definitive common cause. In 2012/2013 NEB Compliance staff initiated a focus on equipment inspections. There were fewer fires reported the following year suggesting these efforts made some impacts. While there were no indications of a common or overlapping root cause for fires in 2015, the NEB Compliance staff will continue the focus on equipment inspections in 2016.

Figure 2: Number of OPR Incidents by Type, 2008 to 2015

 

Figure 3 shows the number of liquid releases reported from 2008 to 2015 as well as the total volume that was released. Fewer liquid releases and less total volume was released in 2015 than in 2014. In addition, there were no liquid releases that affected property off the pipeline Right of Way (RoW) or company property.

Damage Prevention

Preventing damage to pipelines is a shared responsibility. Pipelines are buried, which means they can be at risk for accidental damage from excavation or construction activity nearby. This type of damage is preventable. As the federal regulatory champion for the Canadian Common Ground Alliance, the NEB is invested in raising public awareness by providing information and encouraging cooperation, safety education, and compliance with requirements.

Figure 3: Total Volumes of Liquid Releases reported under the OPR, 2008-2015

Unauthorized activities (UAs) occur when the required permission for an excavation or construction activity is not obtained, or when safety instructions are not followed. UAs are considered by the Board to be “near-miss incidents”, and a predictor of future behaviour. We use the information collected on UA reporting to plan Damage Prevention compliance verification activities, as well as targeted outreach and engagement to those who most need to hear it.

There were 224 reported UAs in 2015, compared to 144 for 2014. Although this appears to be a significant increase, the Board considers this a positive statistic, because it reflects more diligent company surveillance, and reliable reporting of what is actually happening. An increase in the number of reported UAs has been typical for most NEB-regulated companies over the past two years, due to enhanced awareness of NEB reporting requirements and improvements in the NEB’s UA reporting system.

Figure 4: 2015 Unauthorized Activities by Province

The distribution of reported UAs more evenly distributed among the provinces than in prior years, where British Columbia reported nearly half of all UAs in Canada.

The number of UAs is normalized across each province by calculating the number of UAs per 1000 km of pipeline. This data shows the hotspots for UAs and informs our outreach and engagement strategy, and is a factor in how compliance verification activities are planned.

Quebec, New Brunswick and BC stand out with UA rates that are much higher than the national average of 3.13 UAs per 1000 km of pipeline. Staff will address these regions in their Compliance Verification and Engagement plans.

The number of UAs is normalized across each province by calculating the number of UAs per 1000 km of pipeline. This data shows the hotspots for UAs and informs our outreach and engagement strategy, and is a factor in how compliance verification activities are planned.

Table 4: 2015 Unauthorized Activities per 1000 km pipeline by Province

Table 4: 2015 Unauthorized Activities per 1000 km pipeline by Province

Province	Km of pipeline	Reported UAs	per 1000 KM
Alberta	30700	63	2.05
British Columbia	7800	65	8.33
Manitoba	5600	6	1.07
New Brunswick	615	7	11.38
Northwest Territories	840	0	0.00
Nova Scotia	1020	0	0.00
Ontario	10995	46	4.18
Quebec	1480	25	16.89
Saskatchewan	12570	12	0.95
Yukon	20	0	0.00
Grand Total	71640	224	3.13

Ground disturbance continues to be the most prevalent UA violation activity type representing 80 per cent of all UAs reported. Professional excavators are responsible for 56 per cent of the violations and continue to be a target stakeholder group for engagement activities.

In 2015 damage prevention staff completed 13 damage prevention-related compliance verification activities. Through the Damage Prevention Outreach and Engagement plan, damage prevention staff engaged with approximately 8213 people from across Canada at 32 events, meetings and conferences. Staff made presentations at nine conferences and workshops in Quebec, Ontario, Alberta and BC, engaging with approximately 840 stakeholders in the excavator and contractor groups as the primary audience.

Figure 5: Forms of Engagement

Figure 6: 2015 Attendees by Province

Canadians make decisions about energy every day – from consumer-level choices about products and consumption, to business and government decisions about investment and operations, to regulatory decisions that impact trade systems and safety. The increasing pace of change in Canadian and global energy markets and climate policy development means that the need for up-to-date analysis on energy supply and demand trends is greater than ever.

As Canada’s national energy regulator, a key aspect of the NEB’s mandate is to study energy matters over which Parliament has jurisdiction, and to provide the government with advice on those issues. And, we are actively seeking better, more user-friendly ways to produce and share energy market information with the public. Work is underway to expand the scope of our market reporting to include discussion of greenhouse gas emissions, the link between energy and environmental issues, and the role of new bestavailable technologies in our energy landscape.

In the current energy market environment, prices, economic growth, policies and regulation, action on climate change and the development and use of new technologies, all play an important role in shaping Canada’s energy future. It is our goal to help Canadians and policy makers understand these complex interactions through our analysis, reports, and statistics.

Energy Markets 2015

The Board monitors the integrated North American energy markets, to track and understand ongoing changes in the relationships between supply, infrastructure, demand and prices, and to stay current on the conditions in a quickly evolving energy market. That depth of understanding plays an integral part in our assessment of the applications submitted to construct and modify facilities, establish tolls and tariffs, and provide export or import authorizations.

One of the outputs of the market intelligence collected at the Board is energy data, and studies on specific energy issues. These products offer neutral, independent, fact-based energy information that provides context to supplement Canadians’ understanding of the Board’s regulatory decisions. These products support the Board’s status as an expert tribunal, increase the transparency of Canadian energy markets, and support Canadian energy literacy.

Canadian Energy Import/Export Volumes and Values

Canada’s Energy Story – 2015

In 2015, Canada’s crude oil production and exports increased, driven mostly by oil sands production growth. Global benchmark crude oil prices rebounded to the US$60s by mid-year, but subsequently declined to the mid US$30s by year-end. Global oil storage inventories remained persistently high, due in part to limited decline in United States (US) tight oil production, and weaker than expected demand from Europe and Asia. Similar to 2014, OPEC (Organization of the Petroleum Exporting Countries) agreed at its December 2015 meeting to not cut crude oil production to support prices. Alongside these global price movements, oil pipeline capacity additions in the US and Canada facilitated increased crude oil exports for Canadian producers. Meanwhile, Eastern Canadian refineries imported record levels of US light crude oil, displacing traditional sources from abroad.

In 2015, North American natural gas prices decreased due to steady production in Canada and growing production in the US. Demand for natural gas grew more modestly, creating plentiful supply. At the end of the storage injection season in mid-November, North American inventories reached an unprecedented level of 4.7 trillion cubic feet (Tcf). In addition, there was a trend of increasing imports of gas from the US into eastern Canadian markets. Finally, there was also a shift in global liquefied natural gas (LNG) market dynamics in 2015: widely available global supply, weaker than anticipated Asian demand, decreased prices, and escalating project costs.

In the electricity market, Canada’s supply mix continued to evolve. Renewable generation continued to grow, with wind capacity reaching 11,205 megawatts (MW) in 2015. This was also the case for gas-fired generation, which continued displacing coal generation due to lower gas prices and federal coal-fired generation regulations. In addition, multiple large hydro projects are under construction in British Columbia (BC), northern Manitoba, northeastern Quebec and Labrador and a significant expansion at the Mica dam in the interior of BC was completed in 2015.

Canadian Energy Import/Export Volumes and Values

Crude Oil

Canada remains a net crude oil exporter and the largest supplier of crude oil to the United States. Total Canadian crude oil exports averaged approximately 3.0 million barrels per day (MMb/d) this year, which is a 6.2 per cent increase from 2014. Almost all Canadian crude oil exports, approximately 99 per cent, went to the US. Of the total export volume in 2015, approximately 71.3 per cent was heavy oil, up from 68.6 per cent in 2014. In 2015, the total value of crude oil exports was approximately C$51.9 billion based on an average export price of C$46.82 per barrel.

Natural Gas

In 2015, total Canadian natural gas exports averaged 207 million cubic metres per day (m³/day). Total natural gas imports averaged 54 million m³/day, including average LNG imports of 1.5 million  m³/day. Therefore, net exports averaged approximately 150 million m³/day, which is similar to 2014. In 2015, the value of Canadian net exports of natural gas was approximately C$6.9 billion.

Electricity

In 2015, Canadian electricity exports, net-exports, and net revenue from electricity trade reached record highs. Exports totaled 67.6 terawatt hours (TWh), up 16 per cent from 2014. Imports declined by 30 per cent from 2014, reaching 8.9 TWh. Increasing exports and declining imports resulted in net exports of 58.6 TWh, up 28 per cent from 2014. Net revenue from electricity trade in 2015 reached C$2.8 billion, up 19 per cent from last year.

Figure 7 – Total Crude Exports 2006-2015

Figure 8 – Natural Gas Net Exports 2006-2015 (Exports less Imports)

Figure 9 - Electricity Net Exports 2006-2015 (Exports less Imports)

Part VI of the NEB Act authorizes the Board to issue orders, licences, and permits for imports of natural gas (including liquefied natural gas) and exports of oil (including refined petroleum products), natural gas (including liquefied natural gas), natural gas liquids (propane, butane and ethane),

and electricity. Table 5 provides an overview of all orders, licences, and permits issued by the Board in 2015.

Please see Appendix F for a summary of commodity export and import licence applications filed with the National Energy Board in 2015.

Regulatory excellence is by nature a continually evolving state that is nimble and responsive. The NEB has been working with the Alberta Energy Regulator (AER) and others in the national and international field, to define excellence, understand how a regulator can foster excellence within its organization, and to continually monitor this state.

Following the release of the AER report “Listening, Learning, Leading – A Framework for Regulatory Excellence”, developed by Cary Coglianese from the University of Pennsylvania, our next step is to build an NEB-specific Framework that responds to a national energy regulator’s realities, challenges, and opportunities for excellence.

The NEB continues to work with other regulators around the world to examine the concept of regulatory excellence and learn from each other’s experiences. This includes work with:

• The Arctic Offshore Regulators Forum
• The International Regulators Forum
• The Organization of Economic Cooperation and Development
• The Canadian Community of Federal Regulators
• The Public Policy Forum on the Global Energy Regulators Summit

Internally, the Board has established Member-led committees - the Board Risk Management and Safety Committee, the Governance Committee and the Regulatory Excellence Committee - to challenge and consult on the continual improvement of the NEB’s regulatory framework.

Geophysical Services Incorporated (GSI)

Geophysical Services Incorporated
(Lynx Canada Information Systems Ltd.)

In June 2009, GSI took legal action against Lynx Canada Information Systems Ltd. (Lynx) in the Alberta Court of Queen’s Bench for copyright infringement relating to geophysical information and related relief. On 27 May 2011, Lynx brought a Third Party Claim against the National Energy Board. On 4 June 2013, GSI filed an Amended Statement of Claim naming the NEB directly as a defendant for the full amount of its claim. The file is ongoing at year end.

Geophysical Services Incorporated (Olympic Seismic Ltd.)

On 19 December 2012, GSI filed with the Alberta Court of Queen’s Bench a Statement of Claim naming Olympic Seismic Ltd. (Olympic) and the NEB as defendants for copyright infringement relating to geophysical information and related relief. Olympic filed a Third Party claim against the NEB on 23 December 2013. The file is ongoing at year end.

Geophysical Services Incorporated
(Arcis Seismic Solutions Corp.)

On 6 March 2013, GSI filed with the Alberta Court of Queens’ Bench a Statement of Claim naming Arcis Seismic Solutions Corp., the NEB and others as defendants for copyright infringement relating to geophysical information and related relief. The file is ongoing at year end.

Geophysical Services Incorporated
(West Canadian Digital Imaging Inc.)

On 2 May 2012, GSI took legal action against West Canadian Digital Imaging Inc. (West Canadian) in the Alberta Court of Queen’s Bench for copyright infringement relating to geophysical information and related relief. On 13 March 2013, West Canadian brought a Third Party Claim against the National Energy Board. On 22 July 2013, GSI filed an Amended Statement of Claim naming the NEB directly as a defendant for the full amount of the claim. The file is ongoing at year end.

Geophysical Services Incorporated
(Exploration Geosciences Ltd.)

On 22 January 2014, GSI filed with the Alberta Court of Queen’s Bench a Statement of Claim naming Exploration Geosciences Ltd., the NEB and others as defendants for copyright infringement relating to geophysical information and related relief. GSI filed an Amended Statement of Claim on 6 May 2014. The file is ongoing at year end.

Geophysical Services Incorporated
(Her Majesty the Queen in Right of Canada)

On 14 May 2014, GSI filed with the Alberta Court of Queen’s Bench a Statement of Claim naming Her Majesty the Queen in Right of Canada, the NEB and others as defendants for copyright infringement relating to geophysical information and related relief. The file is ongoing at year end.

Enbridge Line 9B Reversal and Line 9 Capacity Expansion Project

Chippewas of the Thames First Nation

On 7 April 2014, the Chippewas of the Thames First Nation filed with the Federal Court of Appeal a Notice of Motion for Leave to Appeal the NEB Reasons for Decision for the Line 9B Reversal and Line 9 Capacity Expansion Project issued on 6 March 2014. The Federal Court of Appeal granted the Motion for Leave to Appeal on 4 June 2014. The Chippewas of the Thames First Nation filed their Notice of Appeal on 1 August 2014. The Federal Court of Appeal dismissed the Appeal on 20 October 2015. On 18 December 2015 the Chippewas of the Thames filed an Application for Leave to Appeal with the Supreme Court of Canada. The file is ongoing at year end.

Northern Gateway Project

Federation of British Columbia Naturalists
(BC Nature)

On 17 January 2014, BC Nature filed with the Federal Court of Appeal a Notice of Application for Judicial Review in respect of the Joint Review Panel Report for the Enbridge Northern Gateway Project issued on 19 December 2013. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

On 14 July 2014, BC Nature filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 3 October 2014, BC Nature filed with the Federal Court of Appeal a Notice of

Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

ForestEthics Advocacy Association, Living Oceans Society and Raincoast Conservation Foundation (ForestEthics)

On 17 January 2014, ForestEthics filed with the Federal Court of Appeal a Notice of Application for Judicial Review in respect of the Joint Review Panel Report for the Enbridge Northern Gateway Project issued on 19 December 2013. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

On 11 July 2014, ForestEthics filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 3 October 2014, ForestEthics filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

On 10 July 2014, ForestEthics filed with the Federal Court of Appeal a Notice of Motion for Leave to Appeal the Certificates of Public Convenience and Necessity issued by the NEB on 18 June 2014 in respect of the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Appeal on 26 September 2014. ForestEthics filed their Notice of Appeal on 25 November 2015. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

Gitga’at First Nation

On 17 January 2014, Gitga’at First Nation filed with the Federal Court of Appeal a Notice of Application for Judicial Review in respect of the Joint Review Panel Report for the Enbridge Northern Gateway Project issued on 19 December 2013. The hearing was held in October 2015.

The Federal Court of Appeal’s decision had not been issued at year end.

On 14 July 2014, Gitga’at First Nation filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 3 October 2014, Gitga’at First Nation filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

Gitxaala Nation

On 17 January 2014, Gitxaala Nation filed with the Federal Court of Appeal a Notice of Application for Judicial Review in respect of the Joint Review Panel Report for the Enbridge Northern Gateway Project issued on 19 December 2013. The hearing was held in October 2015.

The Federal Court of Appeal’s decision had not been issued at year end.

On 11 July 2014, Gitxaala Nation filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 2 October 2014, Gitxaala Nation filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

On 16 July 2014, Gitxaala Nation filed with the Federal Court of Appeal a Notice of Motion for Leave to Appeal the Certificates of Public Convenience and Necessity issued by the NEB on 18 June 2014 in respect of the Enbridge Northern Gateway Project. The Court granted the Motion for Leave to Appeal on 26 September 2014. Gitxaala Nation filed their Notice of Appeal on 25 November 2015. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

Council of the Haida Nation

On 14 July 2014, the Council of the Haida Nation filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 3 October 2014, the Council of the Haida Nation filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015.

The Federal Court of Appeal’s decision had not been issued at year end.

Haisla Nation

On 17 January 2014, Haisla Nation filed with the Federal Court of Appeal a Notice of Application for Judicial Review in respect of the Joint Review Panel Report for the Enbridge Northern Gateway Project issued on 19 December 2013. The hearing was held in October 2015.

The Federal Court of Appeal’s decision had not been issued at year end.

On 11 July 2014, Haisla Nation filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the

Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 3 October 2014, Haisla Nation filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

On 16 July 2014, Haisla Nation filed with the Federal Court of Appeal a Notice of Motion for Leave to Appeal the Certificates of Public Convenience and Necessity issued by the NEB on 18 June 2014 in respect of the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Motion for Leave to Appeal on 26 September 2014. Haisla Nation filed their Notice of Appeal on 25 November 2015. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

Kitasoo Xai’Xais Band and Heiltsuk Nation (Kitasoo and Heiltsuk)

On 11 July 2014, Kitasoo and Heiltsuk filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 3 October 2014, Kitasoo and Heiltsuk filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

Nak’azdli and Nadleh Whut’en First Nations (Nak’azdli and Nadleh Whut’en)

On 14 July 2014, Nak’azdli and Nadleh Whut’en filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 3 October 2014, Nak’azdli and Nadleh Whut’en filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

Unifor

On 14 July 2014, Unifor filed with the Federal Court of Appeal a Notice of Motion for Leave to Seek Judicial Review of the Order of the Governor in Council of 17 June 2014 regarding the Enbridge Northern Gateway Project. The Federal Court of Appeal granted the Leave to Apply for Judicial Review on 26 September 2014. On 3 October 2014, Unifor filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the Order of the Governor in Council. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

On 16 July 2014, Unifor filed with the Federal Court of Appeal a Notice of Motion for Leave to Appeal the Certificates of Public Convenience and Necessity issued by the NEB on 18 June 2014 in respect of the Enbridge Northern Gateway Project. The Court granted the Motion for Leave to Appeal on 26 September 2014. Unifor filed their Notice of Appeal on 25 November 2015. The hearing was held in October 2015. The Federal Court of Appeal’s decision had not been issued at year end.

Trans Mountain Pipeline Expansion Project

Tsleil-Waututh Nation

On 2 May 2014, the Tsleil-Waututh Nation filed with the Federal Court of Appeal a Notice of Motion for Leave to Appeal the NEB’s 2 April 2014 Hearing Order regarding the Trans Mountain Pipeline Expansion Project, and related decisions of the NEB on the same date. The Federal Court of Appeal granted the Motion for Leave to Appeal on 10 July 2014. On 8 September 2014, the Tsleil-Waututh Nation filed its Notice of Appeal. The file is ongoing at year end.

Lynne M. Quarmby, Eric Doherty, Ruth Walmsley, John Vissers, Shirley Samples, Foresethics Advocacy Association, Tzeporah Berman, John Clarke and Bradley Shende (Applicants)

On 29 October 2014, the Applicants filed with the Federal Court of Appeal a Notice of Motion for Leave to Appeal the NEB’s 2 October 2014 standing decision for the Trans Mountain Pipeline Expansion Project. The Applicants argued that the standing test in section 55.2 of the NEB Act or, alternatively, the Board’s application of it in the TMX hearing, violated the Charter. The Federal Court of Appeal dismissed the Motion for Leave to Appeal on 23 January 2015. On 19 March 2015, the Applicants filed an Application for Leave to Appeal with the Supreme Court of Canada. The Supreme Court of Canada dismissed the Application on 10 September 2015.

City of Burnaby (Burnaby)

On 8 September 2014, Burnaby filed a Statement of Claim with the Supreme Court of British Columbia seeking injunctive relief against Trans Mountain Pipeline ULC and declarations against the NEB. The Statement of Claim raises issues involving access to Burnaby land for pipeline routing surveys. An Application for a temporary injunction against access to Burnaby land for survey purposes was dismissed by the Supreme Court of British Columbia on 17 September 2014. On 2 October 2014, Burnaby filed with the British Columbia Court of Appeal a Notice of Application for Leave to Appeal the 17 September 2014 Order of the Supreme Court of British Columbia. That Application for Leave to Appeal was dismissed by the British Columbia Court of Appeal on 27 November 2014. On 4 December 2014, Burnaby made an Application to the British Columbia Court of Appeal to vary the dismissal Order. On 13 February 2015, the British Columbia Court of Appeal dismissed the Application to vary the Order. Other components of Burnaby’s Statement of Claim were pursued in a summary trial before the Supreme Court of British Columbia in October 2015. On 5 November 2015, the Supreme Court of British Columbia dismissed the Application. On 1 December

2015, Burnaby filed with the British Columbia Court of Appeal a Notice of Appeal of the Supreme Court of British Columbia’s 5 November 2015 decision. The file is ongoing at year end.

Dr. Gary Smith, Andrée Stow, Petronella Smid, El Punnett, Laura Hansen, Paul Christensen, Karen Larson and Mathias Hennig (Applicants)

On 10 June 2014, the Applicants filed with the Federal Court a Notice of Application for Judicial Review in respect of the NEB Funding Review Committee and Chief Operating Officer’s 7 May 2014 decisions regarding the Applicants’ requests for participant funding relating to the Trans Mountain Expansion Project application. The Federal Court dismissed the Application for Judicial Review on 22 September 2015.

North Montney Project

Blueberry River First Nation

On 6 July 2015, the Blueberry River First Nations filed with the Federal Court of Appeal a Motion for Leave to apply for Judicial Review of the Order in Council, P.C. 2015-799, directing the Board to issue a certificate of public convenience and necessity for Nova Gas Transmission Ltd.’s North Montney project. The Federal Court of Appeal dismissed the Motion on 12 August 2015.

Saulteau First Nations

On 6 July 2015, the Saulteau First Nations filed with the Federal Court of Appeal a Motion for Leave to apply for Judicial Review of the Order in Council, P.C. 2015-799, directing the Board to issue a certificate of public convenience and necessity for Nova Gas Transmission Ltd.’s North Montney project. The Federal Court of Appeal dismissed the Motion on 12 August 2015. On 13 October 2015, Saulteau First Nations filed with the Supreme Court of Canada an Application for Leave to Appeal. The file is ongoing at year end.

TGS-NOPEC Geophysical Company ASA, Petroleum GeoServices and Multi Klient Invest AS NorthEastern Canada 2D Seismic Survey

Hamlet of Clyde River, Nammautaq Hunters & Trappers Organization – Clyde River, and Jerry Natanine (Applicants)

On 28 July 2014, the Applicants filed with the Federal Court of Appeal a Notice of Application for Judicial Review in respect of the 26 June 2014 decision of the NEB to grant a Geophysical Operations Authorization to TGS-NOPEC Geophysical Company ASA and others, to conduct a 2D marine seismic survey in Baffin Bay and Davis Strait. The Federal Court of Appeal dismissed the Application for Judicial Review on 17 August 2015. On 15 October 2015, the Applicants filed with the Supreme Court of Canada an Application for Leave to Appeal. The file is ongoing at year end.

Energy East Project

Centre Québécois du Droit de l’Environnement
et France Lamonde

On 4 February 2015, the Centre Québécois du Droit de l’Environnement et France Lamonde filed with the Federal Court of Canada a Motion for an interlocutory injunction to suspend the Application to Participate and the Project Funding Program’s deadlines for the Energy East Project until either the report from the Commissioner of Official Languages is issued or the entire French version of the Energy East Project application is officially posted on the NEB’s website. The Federal Court of Canada dismissed the Motion on 16 February 2015.

Edmonton to Hardisty Project

Samson Cree Nation

On 20 April 2015, the Samson Cree Nation filed with the Federal Court of Appeal a Notice of Application for Judicial Review of the NEB’s decision of 20 March 2015 regarding Samson Cree Nation’s request to suspend Certificate OC-062 and related construction activities on the Edmonton to Hardisty Project. The file is ongoing at year end.

Prince Rupert Gas Transmission Project

Michael Sawyer

On 29 December 2015, Michael Sawyer filed with the Federal Court of Appeal a Notice of Motion for Leave to Appeal the NEB’s 30 November 2015 decision on a requested declaration that the proposed Prince Rupert Gas Transmission Project is under NEB jurisdiction. The file is ongoing at year end.

Others

Jim Juras

On 12 August 2015, Jim Juras filed with the Federal Court of Appeal a Notice of Application for Leave to Appeal or an Application for Leave to apply for Judicial Review of the NEB’s Letter Decisions dated 15 July 2015 and 25 September 2013, regarding reclamation required to be undertaken by TransCanada PipeLines Ltd. on Mr. Juras’ property. The file is ongoing at year end.

The Masha Krupp Translation Group Ltd.

On 18 August 2015, the Masha Krupp Translation Group Ltd. filed with the Court of Queen’s Bench of Alberta a Statement of Claim naming the NEB and others as defendants for breach of contract and related relief. The file is ongoing at year end.