Order MEL-001-2021 pursuant to Section 109 of the Canadian Energy Regulator Act

INSPECTION OFFICER ORDER NO. MEL-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

Manitoba Hydro, being a company that owns Minell Pipelines Ltd. and operates the Minell natural gas pipeline (Pipeline) near McAuley, Manitoba on behalf of Minell Pipelines Ltd.

On 08 / October / 2021 at approx. 15:00 the undersigned Canada Energy Regulator inspection officer conducted a virtual meeting (via Microsoft Teams) with Manitoba Hydro representatives to follow-up on the reported release of substance (INC2021-147) from the Pipeline.

RELEVANT FACTS

• 1. At 19:15 on 5 October 2021, Manitoba Hydro reported an incident to the CER (Release of Substance, Natural Gas – Sweet) in respect of the Pipeline as a result of 3rd party contact with the Pipeline during an activity that caused a ground disturbance.
• 2. CER Inspection Officers (CER IOs) were deployed on 6 October 2021 to the incident location (CV2122-329). Depth of cover at the site of the incident was observed to be less than 30 cm. CER IOs noted that this cover is potentially insufficient to allow for cultivation to a depth of less than 45 cm as referred to in section 2 of the Canadian Energy Regulator Act (CER Act).
• 3. CER IOs also conducted a follow-up meeting (virtually) with Manitoba Hydro representatives on 8 October 2021. Information provided to the CER did not demonstrate that the potential hazard posed by agricultural activities near the Pipeline was being appropriately mitigated. More specifically, Manitoba Hydro did not have sufficient information about the current depth of cover for the remainder of the Pipeline:
  • a. The most recent depth of cover survey conducted by Manitoba Hydro was in 2009;
  • b. Annual leak survey conducted during the period of June to September 2021 did not proactively identify low depth of cover at the incident site and/or changes in the typography of the land (e.g., signs of erosion); and
  • c. The company could not demonstrate that it has developed a process related to certain locations pursuant to the Canadian Energy Regulator Damage Prevention Regulations – Obligations of Pipeline Companies (DPR–O) section 7, which states that:
    • “[...] when the operation of vehicles or mobile equipment across a pipeline at specific locations for the purposes of performing an agricultural activity could impair the pipeline’s safety or security, the pipeline company must identify those locations and notify the following persons in writing of those locations:
      • (a) landowners of the specific locations in question; and
      • (b) persons that are engaged in agricultural activities, rent or lease the land or work as service providers or employees at the specific locations in question.”
• 4. Manitoba Hydro provided its plan, scheduled to start on 12 October 2021, to survey the depth of cover for the entire Pipeline right of way and to communicate with affected landowners. However, the timing for implementation of the company’s plan did not adequately address the potential hazard posed by 3rd party activities in accordance with the requirements to identify hazards and communicate the controls to those affected as required by the Canadian Energy Regulator Onshore Pipeline Regulations (OPR) paragraphs 6.5(1)(f) and (m).

GENERAL DUTY – REASONABLE CARE

Pursuant to section 94 of the CER Act, 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 referenced 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 (CER Act), or for a purpose referred to in subsection 102(2) CER Act, 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
• d. 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

Manitoba Hydro is ORDERED pursuant to subsections 109(1) and 109(2) of the CER Act to:

•  X Take measures specified as per (b) and (d) above
•     Stop doing something as per (a) and (c) above
•     Suspend work associated with a facility, including a regulated facility, abandoned facility or ground disturbance until the hazardous or detrimental situation has been remedied to the satisfaction of an inspection officer or the order is stayed or rescinded

Specified Measures^{Footnote 1}

• 1. Until Manitoba Hydro has identified all locations on the Pipeline right of way (ROW) where the operation of vehicles or mobile equipment across the pipeline for the purposes of performing an agricultural activity could impair the pipeline’s safety or security, Manitoba Hydro shall:
  • a) notify affected landowners (including any persons that are or are likely to be engaged in agricultural activities, rent or lease the land, or work as service providers or employees) as soon as practicable and beginning on Saturday 9 October 2021 of temporary safety measures, including requirements to contact Manitoba Hydro to request a locate prior to performing an agricultural activity on the Pipeline ROW until such time as the landowner is advised that adequate depth of cover has been confirmed by Manitoba Hydro for the lands of the landowner pursuant to specified measure 4, below.
  • b) Manitoba Hydro must make every reasonable effort to respond to each locate request in a timely manner so as to minimize inconvenience.
  • c) Manitoba Hydro must maintain a written log of all attempts and contacts made with affected persons, and record the method of contact used, date & time as well as a written record of conversation. The Company is expected to make all reasonable attempts to contact all affected persons in a timely manner. Any verbal communication must be followed by notification in writing.
• 2. Manitoba Hydro must complete a depth of cover survey for its entire Minell natural gas pipeline as soon as practicable and beginning no later than 12 October 2021, and submit weekly progress updates to the undersigned CER inspection officer by close of business on Fridays until completed.
• 3. Upon completion of the depth of cover survey, Manitoba Hydro must submit to the undersigned CER inspection officer a report indicating:
  • a) the results of the survey, including details pertaining to any locations which meet the notification threshold of the DPR–O section 7; and
  • b) any corrective actions to be taken by Manitoba Hydro.
• 4. For locations where the depth of cover survey either demonstrates, or does not demonstrate, adequate depth of cover for agricultural activities as defined in subsection 13(2) of the Canadian Energy Regulator Pipeline Damage Prevention Regulations – Authorizations (DPR–A) to a minimum depth of 45cm, Manitoba Hydro shall advise affected persons of either adequate or inadequate depth of cover without delay in writing as required pursuant to DPR–O section 7.
• 5. Manitoba Hydro is directed to forthwith submit to the undersigned CER inspection officer a complete and detailed description of the corporate structure associated with both the ownership and operation of the Pipeline, including identification of the direct and beneficial corporate owner(s) of the Pipeline, the holder of authorizations associated with the Pipeline, as well as the CER authorized and effective corporate operator of the Pipeline.

EFFECTIVE DATE OF THE ORDER

This Inspection Officer Order takes effect immediately on 09 / October / 2021 at the time of delivery of the order (via email) to Manitoba Hydro, to whom it is directed. Nothing in this order shall be construed as reducing, increasing, or otherwise affecting what may be required of the 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

Inspection Officer		__________________________________ Signature
	IO Designation Number
	09/10/2021	__________________________________ 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 #: CV2021-331

Date modified:

2023-05-18