Order LMR-001-2021 pursuant to Section 109 of the Canadian Energy Regulator Act
INSPECTION OFFICER ORDER NO. LMR-001-2021
IN THE MATTER OF THE CANADIAN ENERGY REGULATOR ACT,
AN ORDER UNDER SECTION 109
NAME OF PERSON(S)/COMPANY TO WHOM THIS ORDER IS DIRECTED
, Manager, Regulatory Affairs for Trans-Northern Pipelines Inc. (TNPI) is a person/Company conducting work associated with a: regulated facility; abandoned facility; or ground disturbance on or near a facility located at City of Mirabel, Québec.
On or about 18 May 2021 at approximately 9:30 AM the undersigned Canada Energy Regulator Inspection Officer (CER Officer) conducted a Compliance Verification Activity (CVA or Inspection), Inspection (CV2122-164) of TNPI’s Mirabel Lateral Pipeline (the Pipeline) at the Mirabel Metering Station (Mirabel Station or the Station) located at the terminal and end point of the Pip
RELEVANT FACTS
On 16 December 2004, the National Energy Board (Board) received an application from TNPI pursuant to section 44 of the Onshore Pipeline Regulations, 1999 (OPR-99) to deactivate the Mirabel Lateral Pipeline and the Mirabel Metering Station (the Project)
On 12 January 2005 the Board issued ORDER MO-01-2005 (Deactivation Order) approving the deactivation of the Mirabel Lateral and the Mirabel Station as part of the Project.
On 29 April 2005, pursuant to Condition 3 of the Deactivation Order, TNPI filed a letter to the Board confirming all the activities associated with the deactivation of the Mirabel Lateral and Mirabel Metering Station were completed in compliance with all applicable conditions.
On 3 November 2020 CER Officers conducted an Inspection (CV2021-270) of the Mirabel Station and identified non-compliances related to potential environmental, safety and security hazards at the site. Overall, the Mirabel Station was unkept and was not adequately maintained by TNPI. Fencing was in disrepair, the gate was open, potentially allowing people and/or wildlife to come in and out of the Station freely, creating potential safety and security risks. Station signage was broken, faded and illegible. Overgrown vegetation and weeds were pervasive, and waste, including broken glass was observed by CER Officers. The Station pipeline coating was corroded, and caps/seals were missing from the aboveground piping at various places. A monitoring well was observed with its cap off and holes in the ground up to 1 m deep were left open, uncovered and with no signage.
On 26 November 2020, CER Officers issued a Notice of Non Compliance (NNC) pursuant to Paragraph 4(1)(d) of the Canadian Energy Regulator Onshore Pipeline Regulations (OPR) and CSA Z662, (which stipulates requirements for maintenance and management of deactivated facilities in Clauses 10.15.1.2, 10.2.4, and 10.2.5. (CV2021-270, NNC#1). The main corrective action was for TNPI to submit a plan to come into compliance with the OPR and CSA Z662 requirements, namely to:
- manage potential hazards to people and wildlife in the area (CSA Z662, Clause 10.2.4); and
- manage the security of the Pipeline (CSA Z662, Clause 10.2.5).
This non-compliance matter at the Mirabel Station was also referred to CER Enforcement for further investigation (CV2122-002).
On 14 December 2020 and 8 January 2021, TNPI provided responses to CER Officers which outlined corrective actions taken to address non-compliances for CV2021-270. TNPIs response met the specific corrective actions CER Officers had stipulated in the NNC, which were to address the immediate potential hazards to people and the environment at the Mirabel Station. The NNC was closed by the CER Officers.
On 18 May 2021, the undersigned CER Officer conducted a follow-up Inspection at the Mirabel Station (CV2122-164). Field observations at the Station identified several non-compliances which had not been rectified by the corrective actions associated with CV2021-270 NNC #1. Notably, the CER Officer observed that the Metering Station was not being maintained in accordance to CSA Z662 Clause 10 requirements for deactivated pipelines.
The Mirabel Station continues to be out of compliance with the requirements to be maintained in a deactivated state as per as per Board ORDER MO-01-2005 and Paragraph 4(1)(d) of the OPR requiring applicable clauses of CSA Z662. Requirements for maintenance and management of deactivated facilities currently in non-compliance to CSA Z662 at the Mirabel Station include but are not limited to: perimeter protection measures, intrusion and detection systems, external and internal corrosion controls for piping exposed to the atmosphere, inspection of such piping, maintenance of cathodic protection, vegetation control, environmental effects (aesthetics, protection of vegetation and wildlife).
On 25 May 2021, TNPI verbally indicated to CER Officers that the company is working towards a decommissioning project and is still in the planning stages. On 1 June 2021, TNPI committed in an email to “have the above ground equipment removed using the site decommissioning exemption by December 31, 2021. For clarity, all equipment or structures with an above-tobelow ground interface will remain and will be removed as part of the remediation project, this includes all concrete bases and all underground infrastructure.” The undersigned CER Officer reminds TNPI of the date it committed to come into compliance is December 31, 2021.
The status of the Pipeline and related surface equipment, aboveground pipelines, and pipeline related facilities at the Mirabel Station do not meet the operation and maintenance expectations of the CER for a deactivated facility.
The Mirabel Station has regulated facilities under ORDER M0-01-2005 and is therefore expected to be operating or maintained in a deactivated state, as per the definition “operate” in the OPR (see below). Facilities at the Mirabel Station are, in actuality, in a partly decommissioned state akin to the “decommission” definition in the OPR without the approval of the Commission of the Canada Energy Regulator (Commission), as required pursuant to section 45.1 of the OPR.
REGULATORY REQUIREMENTS
Canada Energy Regulator Act (CERA)
Canadian Energy Regulator Onshore Pipeline Regulations (OPR)
Terminology & Definitions
Section 2 of the CERA defines the following term:
“pipeline” means a line — including all branches, extensions, tanks, reservoirs, storage or loading facilities, pumps, racks, compressors, interstation communication systems, real or personal property, or immovable or movable, and any connected works — that connects at least two provinces or extends beyond the limits of a province, Sable Island or an area referred to in paragraph (c) of the definition designated area in section 368 and that is used or is to be used for the transmission of oil, gas or any other commodity. It does not however include a sewer or water pipeline that is used or is to be used solely for municipal purposes. (pipeline)
Section 1 of the OPR defines the following terms:
“deactivate” means to remove temporarily from service. (désactivation)
"decommission" means to permanently cease operation such that the cessation does not result in the discontinuance of service. (désaffectation)
"operate" includes repair, maintain, deactivate, reactivate and decommission. (exploitation)
PROVISIONS OF ACT THAT ARE ALLEGED TO BE CONTRAVENED - AND ARE CONTINUING - OR ARE LIKELY TO BE CONTRAVENED
ORDER MO-01-2005 requiring the Mirabel Station to be maintained in a deactivated state.
Pursuant to section 94 of the CERA, the holder of a certificate or permit must take all reasonable care to ensure the safety and security of persons, the safety and security of regulated facilities and abandoned facilities and the protection of property and the environment.
Paragraph 4(1)(d) of the OPR requires applicable clauses of CSA Z662 to apply to a pipeline and facility piping that is in a deactivated or operating state.
CSA Z662:
- Clause 9.1.4 – “Piping that is exposed to the atmosphere shall be protected from external corrosion by the application of a coating or by the use of corrosion-resistant alloys, unless the operating company can demonstrate that the anticipated extent of corrosion is not detrimental to serviceability.”
- Clause 9.1.5 “Piping that is exposed to the atmosphere shall be inspected for corrosion at the intervals outlined in the operating company’s operating and maintenance manuals.”
- Clause 9.1.6 “Except where allowed by Clause 9.1.3, cathodic protection shall be provided and maintained on existing coated piping that is buried or submerged.”
- Clause 10.2.5 “Security Conditions that can adversely affect the security of the pipeline system shall be corrected.”
- Clause 10.5.8 outlines the requirements for prevention and control measures for environmental effects (includes aesthetics, protection of wildlife, protection of vegetation)
- Clause 10.15.1.1 outlines the requirements for deactivating piping
- Clause 10.15.1.2 outlines maintenance requirements for deactivated piping
GROUNDS FOR MAKING ORDER
Pursuant to section 94 of the CERA, the holder of a certificate or permit must take all reasonable care to ensure the safety and security of persons, the safety and security of regulated facilities and abandoned facilities and the protection of property and the environment.
Based on the facts references herein, the inspection officer has reasonable grounds to believe that there is or is likely to be a contravention of Parts 2 to 5 or section 335 of the Canadian Energy Regulator Act (CERA), or for a purpose referred to in subsection 102(2) CERA, the inspection officer may, by order, direct a person to
- stop doing something that is in contravention of Parts 2 to 5 or section 335 or cause it to be stopped;
- take any measure that is necessary in order to comply with Parts 2 to 5 or section 335 or mitigate the effects of non-compliance;
- stop doing something that may cause a hazard to the safety or security of persons, or damage to property or the environment or cause it to be stopped; or
- take any measure that is necessary to prevent or mitigate the hazard to the safety or security of persons or damage to property or the environment.
MEASURES TO BE TAKEN
, Manager, Regulatory Affairs on behalf of Trans-Northern Pipelines Inc. (TNPI) is ORDERED pursuant to subsections 109(1) and 109(2) of the CERA to:
Specified MeasuresFootnote 1:
To ensure the safety and security of persons, the regulated facilities and the protection of property and environment, TNPI must resolve outstanding regulatory non-compliances to the Deactivation Order and applicable clauses of CSA Z662 required by Subsection 4(1) of the OPR for deactivated pipelines and associated facilities by pursuing decommissioning of the Mirabel Station (Decommissioning Project) in accordance with the following:
No later than 31 August 2021, TNPI shall:
- Provide notice to the undersigned CER Officer including the Decommissioning Project description and scope of work TNPI will be using to determine if they are eligible to proceed pursuant to Exemption Order XO/XG-100-2008 (Decommissioning Streamlining Order).
OR - File with the Commission an application pursuant to section 45.1 of the OPR for the Decommissioning Project.
If (a), then also:
- Fourteen (14) days prior to the commencement of the Decommissioning Project, provide the Construction Schedule, the Site-Specific Environmental Protection Plan, as well as the Site-Specific Safety Plan for the Decommissioning Project; and
- Complete the Decommissioning Project and associated activities in accordance with the Decommissioning Streamlining Order in the fourth quarter of the 2021 calendar year and no later than 31 December 2021.
EFFECTIVE DATE OF THE ORDER
This inspection officer order takes effect immediately on 8 June 2021 at the time of delivery of the order to the person/company to whom it is directed. Nothing in this order shall be construed as reducing, increasing, or otherwise affecting what may be required of the person/company to whom it directed to comply with all applicable legislative or legal requirements.
COMPLIANCE WITH THIS INSPECTION OFFICER ORDER IS MANDATORY
Failure to comply with an Inspection Officer Order issued under section 109 of the CER Act is an offence under section 112 of the CER Act.
| Inspection Officer | |
__________________________________ Signature |
| IO Designation Number | ||
| 08/June/2021 |
__________________________________ Name (printed) |
|
| Date | ||
| 210-517 10 Ave SW, Calgary AB T2R 0A8 | ||
Please note that in compliance with the CER’s Enforcement Policy, this Order will be posted on the CER’s website.
CVA or Incident #: CVA2122-125
- Date modified: