Compliance Verification Activity Report: CV1920-359 - TEML Westspur Pipelines Limited

Overview

Compliance verification activity type: Field Inspection

Team:

• Inspector 2474
• Inspector In Training 2444T

Regulated company: TEML Westspur Pipelines Limited

Operating company: Kingston Midstream Pipelines Limited

Province(s) / Territory(s):

• Saskatchewan

Discipline(s):

• Damage Prevention

Rationale and scope:

Damage Prevention field inspection to verify compliance with the Damage Prevention Regulations and NEB OPR requirements for Damage Prevention, focused on agricultural land in southern Saskatchewan.

Compliance tool(s) used:

• Notice of Non-compliance (NNC) (4)
• Corrected Non-compliance (CNC) (1)
• Information Request (IR) (2)

Facility details

Facilities:

• Steelman to Alida Pipeline
• MIDALE TO CROMER MAINLINE
• WESTSPUR NEB PIPELINE

Facility Types

• Pipeline
• Pipeline right of way (ROW)

Life-cycle Phases

• Operations

Regulatory requirements

Regulatory requirements that apply to this activity:

• National Energy Board Act (NEBA)
• Onshore Pipeline Regulations (OPR)
• National Energy Board Pipeline Damage Prevention Regulations – Authorizations
• National Energy Board Pipeline Damage Prevention Regulations – Obligations for Pipeline Companies
• National Energy Board Act (NEBA) 2016-06-19
• Standards
• CSA Z662-19 - Oil and Gas Pipeline Systems

Regulatory instrument number(s):

• AO-001-OC-4
• AO-001-XO-12-91
• OPLO-E103-001-2011
• XO-E103-002-2010
• OPLO-W2-1-91
• MO-13-91
• XO-12-91
• MO-40-85
• OC-4

Observations (no outstanding follow-up required)

Observation 1 - General Observations

Date & time of visit: 2019-08-20 08:00

Discipline: Damage Prevention

Categories:

• RoW Maintenance
• Access
• Vegetation
• Damage Prevention Program
• Monitoring
• Processes and Standards
• Public Awareness Program
• Manage and Mitigate
• Monitoring and Reporting
• Records
• Patrols, Inspection and Field Observations
• Reporting
• Pipeline Identification
• Signs
• Watercourses
• Railway and Road RoW
• Locate Markings
• Vehicle or Mobile Equipment Crossings
• Guidelines
• Agricultural Activity
• Authorization and Consent
• Locates and Information
• Locate Requests
• Duty to Inform
• One-call Centre
• Obligation to Provide Information
• Ground Disturbance
• Authorization and Consent
• Guidelines
• Facility
• Authorization and Consent
• Guidelines

Facility:

• Steelman to Alida Pipeline (Pipeline)

Observations:

Overview

• TEML Westspur Pipelines Limited (TEML Westspur) owns the Westspur Pipeline. TEML Westspur is owned by Kingston Midstream. The pipeline transports crude oil and condensate from the Saskatchewan Gathering System and truck deliveries to the Enbridge Mainline.

• Function of Damage Prevention falls within the Lands & Right of Way Department;
• Population density survey is conducted annually;
• Aerial Patrols of the pipeline are flown weekly;
• Ground patrols are conducted on an as-needed basis;
• Pipeline Depth Monitoring Program: active pipelines 10 year inspection interval, deactivated pipelines ten year inspection interval. NEB Inspectors reviewed depth of cover reports and a sample notification letter to landowners regarding depth of cover issues;
• Proximity consent is processed in the same manner as a crossing agreement, and is given to the ground disturber along with any necessary terms and conditions;
• An Inspection Checklist is attached to the proximity consent and set out to the field area, and is completed by the Kingston Midstream representative at the time of the activity.
• Line locates are conducted by a third party line locate company;
• To date, no Unauthorized Activities have been reported to the NEB.
• NEB Inspectors conducted a spot check of pipeline signage at road and rail rights-of-way, and water crossing of Alameda Reservoir. Signage in all spot check locations was observed to be in accordance with CSA Z662-19 10.5.3.3 requirements.
• NEB Inspectors conducted a spot check at one active integrity dig site and were provided with an on-site safety briefing, and signed on to the site FLHA and contractor JHA.
• NEB Inspectors conducted a spot check at one inactive integrity dig site and observed requisite signage and safety fencing in place.

• Face to face visits with landowners and tenants every three years within approximately 200 km of the pipeline. Tablets are used by company representatives to track visits and discussions;
• PA packages assembled for landowners, tenants, rural municipalities, and First Nations communities includes the following publications: Kingston Midstream Public Awareness Program booklet, NEB and One-Call information pamphlets, emergency phone number magnet, letter from Lands Department, and survey card;
• Annual calendar mail-out to all stakeholders with emergency phone number and one-call contact information;
• Mail-outs are followed up with a phone call to ensure PA package was received and confirm contact information is correct;
• Information regarding requests for written consent are publically available on the Kingston Midstream website; and
• Member of Saskatchewan Common Ground Alliance (SCGA), participate on the SCGA Public Awareness and Education Committee and the Breakfast Sub-Committee.

Compliance tool used: No compliance tool used

Observation 2 - NNC 1 - Patrol Exception Reporting

Date & time of visit: 2019-08-20 09:00

Discipline: Damage Prevention

Categories:

• Monitoring and Reporting
• Records
• Patrols, Inspection and Field Observations
• Reporting

Facility:

• Steelman to Alida Pipeline (Pipeline)

Observations:

On 16 November 2017, the Board issued an Information Advisory and noted the following regarding Patrol Reports: Exception reporting (recording issues only), does not adequately document that an assessment of the conditions on the right of way has occurred. In order to meet the requirements, companies must demonstrate that conditions as listed in CSA 10.6.1.1 are subject to documented ongoing monitoring.

Documentation of the implementation of management system activities is required by OPR 6.5 (1)(p) which states that companies must: (p) establish and implement a process for generating, retaining and maintaining records that document the implementation of the management system and the programs referred to in section 55 and for providing access to those who require them in the course of their duties

Aerial patrol reporting provided by Kingston Midstream to NEB Officers displayed exception reporting and did not demonstrate that conditions as listed in CSA 10.6.1.1 are subject to documented ongoing monitoring.
 

Compliance tool used: Notice of Non-compliance (NNC)

Regulatory requirement:

• Onshore Pipeline Regulations (OPR)

Relevant section(s):

• • 6.5 Management System Processes
    • (1) A company shall, as part of its management system and the programs referred to in section 55,
      • (p) establish and implement a process for generating, retaining and maintaining records that document the implementation of the management system and the programs referred to in section 55 and for providing access to those who require them in the course of their duties;

Company action required:

Kingston Midstream shall:

1. Initiate a management of change (MOC) process, inclusive of timeline for implementation, to rectify company patrol exception reporting;
2. Provide NEB Inspectors with email confirmation upon MOC completion; and
3. Provide NEB Inspectors with an aerial patrol report demonstrating that conditions as listed in CSA 10.6.1.1 are subject to documented ongoing monitoring in a non-exception reporting format.
 

Due date: 2019-12-31

Date closed: 2019-12-27
Note: the date closed is the date that the inspector completed their review of the company corrective actions for adequacy and determined that no further actions are required.

Reason closed: Requirement met

Compliance achieved: Yes

Observation 3 - NNC 2 - Obligations Following Request to Locate

Date & time of visit: 2019-08-20 09:00

Discipline: Damage Prevention

Categories:

• Monitoring and Reporting
• Patrols, Inspection and Field Observations

Facility:

• Steelman to Alida Pipeline (Pipeline)

Observations:

Section 6 (1) (a) of the NEB Pipeline Damage Prevention Regulations - Obligations of Pipeline Companies (DPR-O) states:

• 6 (1) Subject to subsection (2), if a pipeline company receives a request to locate its pipes from a person that intends to construct a facility across, on, along or under a pipeline or engage in an activity that would cause a ground disturbance within the prescribed area, the pipeline company must, within three working days after the day on which the request is made, or any longer period agreed to by the pipeline company and that person
  • (a) inform the person, in writing, of safety practices to be followed while working in the vicinity of its pipes and, in case of a ground disturbance, within the prescribed area (emphasis added)

Kingston Midstream did not provide NEB Inspectors with documentation that demonstrates how it meets the requirements of section 6(1)(a) of DPR-O.

Compliance tool used: Notice of Non-compliance (NNC)

Regulatory requirement:

• National Energy Board Pipeline Damage Prevention Regulations – Obligations for Pipeline Companies

Relevant section(s):

• • 6 Timeline
    • (1) Subject to subsection (2), if a pipeline company receives a request to locate its pipes from a person that intends to construct a facility across, on, along or under a pipeline or engage in an activity that would cause a ground disturbance within the prescribed area, the pipeline company must, within three working days after the day on which the request is made, or any longer period agreed to by the pipeline company and that person,
      • (a) inform the person, in writing, of safety practices to be followed while working in the vicinity of its pipes and, in case of a ground disturbance, within the prescribed area;

Company action required:

Kingston Midstream shall provide NEB Inspectors with documentation that demonstates how it meets the requirements of section 6(1)(a) of the NEB DPR - Obligations of Pipeline Companies.
 

Due date: 2019-10-31

Date closed: 2019-10-31
Note: the date closed is the date that the inspector completed their review of the company corrective actions for adequacy and determined that no further actions are required.

Reason closed: Requirement met

Compliance achieved: Yes

Observation 4 - NNC 3 - Field Inspections, Observations, and Suspension of Consent

Date & time of visit: 2019-08-20 09:00

Discipline: Damage Prevention

Categories:

• Monitoring and Reporting
• Patrols, Inspection and Field Observations
• Locates and Information
• Locate Requests
• Obligation to Provide Information

Facility:

• Steelman to Alida Pipeline (Pipeline)

Observations:

Section 6.5 (1) (f) of the OPR requires companies to establish and implement a process for developing and implementing controls to prevent, manage and mitigate the identified hazards and the risks and for communicating those controls to anyone who is exposed to the risks.

Section 8 of the Damage Prevention Regulations - Obligations of Pipeline Companies (DPR - O) requires companies to conduct inspections and field observations, including but not limited to: making field observations confirming compliance with conditions of written consent; and carrying out inspections that are necessary to ensure the pipeline's continued safety.

Section 10 of the DPR - O states the pipeline company may suspend the consent that it granted to construct a facility or to engage in an activity that causes a ground disturbance within the prescribed area...

Kingston Midstream field employees indicated they are required to be onsite to ensure oversight of third party activities near their facilities, however the company did not provide NEB Inspectors with documented procedures for oversight of third party activities, field inspections, field observations, and suspension of consent.

Compliance tool used: Notice of Non-compliance (NNC)

Regulatory requirement:

• National Energy Board Pipeline Damage Prevention Regulations – Obligations for Pipeline Companies

Relevant section(s):

• • 8 The pipeline company must
    • (a) carry out any inspections that are necessary to ensure the pipeline’s continued safety and security during an activity that causes a ground disturbance within the prescribed area;
    • (b) inspect all exposed pipe prior to any backfilling over a pipe to ensure that no damage to the pipe has occurred; and
    • (c) in respect of any inspection carried out under paragraphs (a) and (b), make field observations relating to
      • (i) if a pipe was exposed, the clearance between the pipe and the facility and the condition of the pipe at the time of backfilling over the pipe,
      • (ii) the compliance with the measures set out in the National Energy Board Pipeline Damage Prevention Regulations – Authorizations,
      • (iii) the method used to engage in the activity that caused a ground disturbance, and
      • (iv) the occurrence of any unusual events that are related to the construction or activity and that may have had an effect on the pipeline’s safety or security.
  • 10 Grounds
    • (1) The pipeline company may suspend the consent that it granted to construct a facility or to engage in an activity that causes a ground disturbance within the prescribed area if
      • (a) the person carrying out the construction of a facility does not comply with the technical details and the conditions referred to in paragraph 7(3)(a) of the National Energy Board Pipeline Damage Prevention Regulations – Authorizations or the instructions referred to in paragraph 7(3)(c) of those Regulations;
      • (b) the person engaging in an activity that causes the ground disturbance does not comply with the technical details and the conditions referred to in paragraph 10(3)(a) of the National Energy Board Pipeline Damage Prevention Regulations – Authorizations or the instructions referred to in paragraph 10(3)(d) of those Regulations; or
      • (c) work practices might impair the pipeline’s safety or security.
    • (2) If a pipeline company suspends its consent pursuant to subsection (1), it must immediately notify the Board in writing of the suspension and give its reasons for the suspension.

Company action required:

Kingston Midstream shall provide NEB Inspectors with documented procedures that demonstates how it meets the requirements of section 6.5 (1) (f) of the OPR, sections 8 and 10 of the DPR-O.

Due date: 2019-11-29

Date closed: 2019-12-27
Note: the date closed is the date that the inspector completed their review of the company corrective actions for adequacy and determined that no further actions are required.

Reason closed: Requirement met

Compliance achieved: Yes

Observation 5 - NNC 4 - Pipeline Signage Maintenance

Date & time of visit: 2019-10-01 08:00

Discipline: Damage Prevention

Categories:

• Damage Prevention Program
• Monitoring
• Manage and Mitigate
• Pipeline Identification
• Signs
• Watercourses
• Railway and Road RoW

Facility:

• Steelman to Alida Pipeline (Pipeline)

Observations:

Inspectors observed pipeline signage that had been recently changed to reflect the name 'Kingston Midstream'.

Compliance tool used: Notice of Non-compliance (NNC)

Regulatory requirement:

• CSA Z662-19 - Oil and Gas Pipeline Systems

Relevant section(s):

• Section 10.5.3.9 of CSA Z662-19 states: Signs shall be inspected periodically and maintained to ensure legibility and visibility.

Company action required:

Kingston Midstream representatives shall provide Inspectors with the following written confirmation:
1. Kingston Midstream's procedure to ensure signage is inspected periodically and maintained to ensure legibility and visibility.

Due date: 2019-11-29

Date closed: 2019-12-27
Note: the date closed is the date that the inspector completed their review of the company corrective actions for adequacy and determined that no further actions are required.

Reason closed: Requirement met

Compliance achieved: Yes

Observation 6 - CNC 1 - Pipeline Signage at Railway Crossing

Date & time of visit: 2019-08-20 14:00

Discipline: Damage Prevention

Categories:

• Pipeline Identification
• Signs
• Railway and Road RoW

Facility:

• Steelman to Alida Pipeline (Pipeline)

Observations:

Section 10.5.3.9 of CSA Z662-19 states:
Signs shall be inspected periodically and maintained to ensure legibility and visibility.

NEB Inspectors observed pipeline signage installed where the pipeline enters and exits railway right-of-way, however the legibility and visibility of the signage was obstructed by overgrown vegetation.

Compliance tool used: Corrected Non-compliance (CNC)

Regulatory requirement:

• CSA Z662-19 - Oil and Gas Pipeline Systems

Relevant section(s):

• Section 10.5.3.9 of CSA Z662-19 states: Signs shall be inspected periodically and maintained to ensure legibility and visibility.

Company action required:

Kingston Midstream shall provide NEB Inspectors with photographs, via email, demonstrating pipeline signage at railway right-of-way is not obstructed by vegetation.

Due date: 2019-08-21

Date closed: 2019-08-21
Note: the date closed is the date that the inspector completed their review of the company corrective actions for adequacy and determined that no further actions are required.

Reason closed: Requirement met

Compliance achieved: Yes

Observation 7 - Information Request 1 - Damage Prevention Program

Date & time of visit: 2019-08-20 09:00

Discipline: Damage Prevention

Categories:

• Damage Prevention Program
• Monitoring
• Processes and Standards
• Public Awareness Program
• Manage and Mitigate

Facility:

• Steelman to Alida Pipeline (Pipeline)

Observations:

Section 47.2 of the OPR states:
A company shall develop, implement and maintain a damage prevention program that anticipates, prevents, manages and mitigates damage to its pipeline and meets the requirements set out in section 16 of the National Energy Board Pipeline Damage Prevention Regulations — Obligations of Pipeline Companies.

Compliance tool used: Information Request (IR)

Regulatory requirement:

• Onshore Pipeline Regulations (OPR)

Relevant section(s):

• • 47.2 A company shall develop, implement and maintain a damage prevention program that anticipates, prevents, manages and mitigates damage to its pipeline and meets the requirements set out in section 16 of the National Energy Board Pipeline Damage Prevention Regulations — Obligations of Pipeline Companies.

Company action required:

Kingston Midstream shall provide the following information to NEB Inspectors:

1. Description of where Kingston Midstream's Damage Prevention Program resides within the company's overall management system framework;
2. Identification of Kingston Midstream Damage Prevention policies, processes, and procedures which are not housed within the Damage Prevention Program; and
3. For any items identified within number 2 above, provide documentation to demonstrate formal linkages of each item to the Damage Prevention Program.

Due date: 2020-01-17

Date closed: 2020-01-17
Note: the date closed is the date that the inspector completed their review of the company corrective actions for adequacy and determined that no further actions are required.

Reason closed: Requirement met

Compliance achieved: Yes

Observation 8 - Information Request 2 - Pipeline Signage Maintenance

Date & time of visit: 2019-08-20 14:00

Discipline: Damage Prevention

Categories:

• Pipeline Identification
• Signs
• Watercourses
• Railway and Road RoW

Facility:

• Steelman to Alida Pipeline (Pipeline)

Observations:

NEB Inspectors observed pipeline signage that had been recently changed to reflect the name 'Kingston Midstream'.

Compliance tool used: Information Request (IR)

Regulatory requirement:

• CSA Z662-19 - Oil and Gas Pipeline Systems

Relevant section(s):

• Section 10.5.3.9 of CSA Z662-19 states: Signs shall be inspected periodically and maintained to ensure legibility and visibility.

Company action required:

Kingston Midstream representatives shall provide NEB Inspectors with the following written confirmation:
1. All pipeline signage has been updated to reflect the name Kingston Midstream;
2. The date all pipeline signage was updated; and
3. Kingston Midstream's procedure to ensure signage is inspected periodically and maintained to ensure legibility and visibility.

 

Due date: 2019-09-30

Date closed: 2019-09-30
Note: the date closed is the date that the inspector completed their review of the company corrective actions for adequacy and determined that no further actions are required.

Reason closed: Requirement met

Compliance achieved: Yes

Observations (company follow-up required)

Identified non-compliances to company plans or procedures are non-compliances either to: