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Order JJD-001-2019 to Trans Northern Pipelines Inc. in the matter of the Canadian Energy Regulator Act (CER Act) – An Order under Section 109

INSPECTION OFFICER ORDER NO. JJD-001-2019

IN THE MATTER OF THE CANADIAN ENERGY REGULATOR ACT (CER Act),
AN ORDER UNDER SECTION 109

Information not available, Trans-Northern Pipelines Inc. (TNPI)

is a person conducting work associated with a facility, including a regulated facility, abandoned facility or ground disturbance on or near a regulated facility or abandoned facility located at

Information not available near Belleville, ON

On or about 1 May 2019 / 08:30, the undersigned Canada Energy Regulator Inspection Officer

conducted an inspection of/at TNPI Belleville Pump Station.

RELEVANT FACTS:

The Inspection Officer (IO) has determined that a hazard is being or will be caused based on the following facts:

On 1 May 2019 the IO conducted an inspection of the TNPI Belleville pump station and made the following observations as noted in the inspection report for activity CV1920-221:

  • The swale system of surface water management at the Belleville Pump Station was observed to be cracked. At the time of the inspection, it was raining which allowed for visual confirmation that water was pooling and draining from the swale system through cracks and low lying areas of the site rather than being directed towards the oil/water separator

The IO issued a Notice of Non-Compliance (NNC) which required TNPI to take the following actions by 19 July 2019:

  1. TNPI will develop and implement a plan to address the broken swale system at Belleville Pump station.
    The plan will include:
    1. An interim fix to mitigate environmental risks until work is completed, to be implemented as soon as practicable upon receipt of this NNC.
    2. A schematic diagram and discussion of what the system will look like once fixed, whether repaired or redesigned.
    3.  A work order outlining the maintenance activity and proposed dates during which the work has been scheduled to be conducted and completed.
    4. Discussion of how the new or repaired system will be tested to confirm its efficacy including confirmation that slopes and grades effectively direct water towards the oil water separator. TNPI will provide a response with test results including photos once works are completed.

The IO analyzed the response provided and determined that TNPI did not provide the information requested to satisfy the Notice of Non-Compliance. TNPI's response indicated that it had carried out a preliminary assessment to implement the interim fix (1a) by the end of 2019. The IO determined that additional justification is needed to elucidate why the interim fix cannot be completed for up to 6 months from the date of the NNC.

Further, the IO noted that a response to NNC sections 1b, 1c, and 1d was not provided, other than acknowledgement that the swale will need to be redesigned and replaced. TNPI indicated that it anticipated to 'begin project work' in 2019 and that work had a target to be executed in 2020. No schematic diagram or description of the new swale system (1b), no work order with outlined scope (1c), nor a discussion of quality control for the new system (1d) were provided in the response. Thus, this NNC remains open and compliance has not yet been achieved.

On 25 July 2019 the IO issued an Information Request (IR#5) in follow up on this outstanding NNC. The IR required the following information be provided:

  • The interim fix for the swale system to properly direct surface water and potential spills to the oil water separator must be in place by 23 August. Provide photographic evidence and a schematic plan of the interim system by 23 August 2019.

On 23 August 2019 TNPI provided a response indicating that the interim fix required to mitigate environmental risks was still not in place. TNPI provided the following rationale for not initiating this work:

  • TNPI is providing the following rationale regarding the reason for not initiating the “interim repair” to the Belleville Swale by August 23, 2017. TNPI provided the NEB with the description of the interim repair and a timeline for the swale repair on July 19th. The interim mitigation is “to fill the cracks and jack up the swale to have proper slopes” by end of 2019. TNPI set the dates for the work based on the preliminary engineering analysis and timeline required to complete the work allowing for contingencies i.e. contractor availability and weather delays. TNPI provided a tentative schedule of work for the interim repair, including various target dates, and indicated that it will be able to provide the NEB with photographic evidence on or before November 8th.

In consideration of the above noted situation, the IO has identified non-compliances with the National Energy Board Onshore Pipeline Regulations (OPR):

Non-compliances with the OPR
Requirements (section of OPR) Observations

6.5 (1) A company shall, as part of its management system and the programs referred to in section 55,

(e) establish and implement a process for evaluating and managing the risks associated with the identified hazards, including the risks related to normal and abnormal operating conditions
The IO is of the view that TNPI is not appropriately managing the risks associated with the damaged swale at Belleville pump station. The IO identified hazards regarding potentially contaminated water leaving the site, as it is not being directed to the oil water separator as designed, as well as a hazard of potential spills migrating off site due to the condition of the broken swale system.
  1. 30 A company shall, during the maintenance of a pipeline, take all reasonable steps so that
  2. (a) the maintenance activities do not create a hazard to the public or the environment;
The IO is of the view that TNPI has not taken all reasonable steps to mitigate the identified hazard presented by the damaged swale at Belleville pump station.

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 CER Act, or for a purpose referred to in subsection 102(2) of the CER Act, the inspection officer may, by order, direct a person to

  1. stop doing something that is in contravention of Parts 2 to 5 or section 335 or cause it to be stopped;
  2. 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;
  3. 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
  4. 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.

Therefore, Information not available is HEREBY ORDERED,

pursuant to subsections 109(1) and 109(2) of the Canadian Energy Regulator 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 o

Specified MeasuresFootnote 1:

TNPI will implement an interim fix for the swale system at Belleville Pump Station to properly direct surface water and potential spills to the oil water separator. TNPI will provide photographic evidence of the completed interim mitigation as well as a schematic plan of the interim system by 11 September 2019.

EFFECTIVE DATE OF THE ORDER

This Inspection Office Order takes effect immediately at the time of delivery of the Order to the person to whom it is directed. Nothing in this Inspection Officer Order shall be construed as reducing, increasing, or otherwise affecting what may be required of the person to whom it is directed to comply with all applicable legislative or legal requirements pursuant to any jurisdiction.

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 Information not available


Information not available
__________________________________
Signature
IO Designation
28 August 2019
Date
Suite 210, 517 10th Avenue SW Calgary AB  T2R 0A8

POSTING ON WEBSITE

Please note that, in compliance with the CER’s Enforcement Policy, this Order will be posted on the CER’s website.

 

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