Compliance Verification Activity Report: CV1920-350 - Kinder Morgan Utopia Ltd.

Overview

Compliance verification activity type: Field Inspection

Team:

• Inspector 2463

Regulated company: Kinder Morgan Utopia Ltd.

Operating company: Kinder Morgan Utopia Ltd. (KM or Utopia)

Province(s) / Territory(s):

• Ontario

Discipline(s):

• Environmental Protection
• Damage Prevention

Rationale and scope:

Damage Prevention and Environment Protection Program Inspections to verify compliance with the National Energy Board Act (NEB Act), the National Energy Board Onshore Pipeline Regulations (OPR), the National Energy Board Pipeline Damage Prevention Regulations – Obligations of the Pipeline Companies (DPR-O), National Energy Board Pipeline Damage Prevention Regulations – Authorizations (DPR-A) and Canadian Standard Of Canada Oil and Gas Pipeline System (CSA Z662-15). Kinder Morgan Utopia Ltd - Canadian-Eastern Section - Detroit River Crossing operational inspection.

Compliance tool(s) used:

• Notice of Non-compliance (NNC) (1)

Facility details

Facilities:

• Canadian Eastern Section - Detroit River Crossing
• DETROIT RIVER CROSSING REPLACEMENT

Facility Types

• Pipeline
• Pipeline right of way (ROW)
• Valve site

Life-cycle Phases

• Construction
• 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 Z662-15 - Oil and Gas Pipeline Systems

Observations (no outstanding follow-up required)

Observation 1 - General - Damage Prevention and Environment Programs

Date & time of visit: 2019-06-12 09:00

Discipline: Damage Prevention

Categories:

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

Facility:

• Canadian Eastern Section - Detroit River Crossing (Pipeline)

Observations:

The National Energy Board (NEB) Inspection Team met with Kinder Morgan Utopia (KM or Utopia) and conducted a meeting and documentation reviews prior to the field right-of-way (RoW) inspections of the Utopia Pipeline. The following list outlines documents reviewed and information provided during the meeting and further to the field inspections:

• Utopia provided a safety moment at the opening meeting; 
• Discussed Utopia's Public Awareness Program (PA). Mostly commercial land use in the pipeline RoW area;
• Reviewed and discussed Utopia's Ground Disturbance ticket dated June 5/19;
• Reviewed Utopia's flight patrol, GPS tracking system, fly-over report and patrol report dated June 11/19. Pilots are trained annually;
• Reviewed and discussed Utopia's locating. Locators are employed by Utopia;
• Reviewed Utopia's:
  • Annual Assessment Report;
  • Facility Crossing Agreement;
  • One Call ticket and Crossing Agreement;
  • 30 Meter Permit;   
• KM field personnel are provided one week of field training that includes topics such as: locating, environmental, dealing with the public; and
• Discussed logistics for RoW portion of these inspections.

Compliance tool used: No compliance tool used

Observation 2 - General - Damage Prevention Program field inspections

Date & time of visit: 2019-06-12 09:00

Discipline: Damage Prevention

Categories:

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

Facility:

• Canadian Eastern Section - Detroit River Crossing (Pipeline)

Observations:

• In areas inspected, NEB Inspection Team observed the RoW to be maintained sufficiently to ensure adequate visibility from the air and access.
• In areas inspected  appropriate pipeline identification markers to identify the presence of pipelines to reduce the possibilities of damage and interference are present. NEB Inspection Team attended a visitor orientation and the K&S Windsor Salt plant and observed ongoing activities at the Kinder Morgan Utopia Ltd Canadian-Eastern Section - Detroit River Crossing, horizontal directional drilling. 
• Utopia / contractor conducted a FLHA review and provided a visitor safety orientation to the NEB Inspection Team while on site.
• NEB Inspection Team reviewed Utopia’s One Call tickets and the associated Plains’ locates and crossing agreement for the activity being conducted.

Compliance tool used: No compliance tool used

Observation 3 - Environment - Field Inspections

Date & time of visit: 2019-06-12 09:00

Discipline: Environmental Protection

Categories:

• Soils and Soil Productivity
• Erosion
• Soil Integrity
• Surface Water Management
• Containment and Drainage Structures
• Vegetation
• Destruction of Vegetation
• Species of Concern
• Housekeeping
• Waste Management
• Training and Documentation
• Permits/Approvals

Facility:

• Canadian Eastern Section - Detroit River Crossing (Pipeline)

Observations:

• KM on-site General Inspector provided an overview of ongoing activities an associated hazards that may be encountered during these inspections.
• KM on-site General Inspector confirmed that completed hydrostatics-pre testing water was discharged into tanks on site, and not into municipal ditches.
• Wood matting in place throughout the workspace which minimizes compaction and soil rutting, and provides for a safer workspace.
• Required environmental clearances, approvals, and permits (National Energy Board, Ministry of Natural Resources and Forestry, Windsor Port Authority, Ministry of Tourism Culture and Sports) as well as the contractor’s emergency response plan are posted in the Site Office Trailer.
• Housekeeping throughout the site appropriate and no waste management issues identified.
• No surface water management or sediment and erosion control issues were noted.

Compliance tool used: No compliance tool used

Observation 4 - Liquid O&M Procedures, Construction Near Company Facilities Manual

Date & time of visit: 2019-06-12 09:00

Discipline: Damage Prevention

Categories:

• Damage Prevention Program
• Processes and Standards

Facility:

• Canadian Eastern Section - Detroit River Crossing (Pipeline)

Observations:

Further to the review of Utopia's Liquid O&M Procedures, Construction Near Company Facilities, Attachment 6 - Supplemental Canada Cochin ULC & Utopia Ltd backfilling activities, the documentation states that a minimum of 3 days advance notice is required for notifying the pipeline company prior to backfilling over a pipe whereas the Damage Prevention Regulations – Authorizations require a minimum of 24hrs advance notice.

Companies are not permitted to impose requirements that extend beyond the limits of what is stated in the regulations with respect to areas where the company has no regulatory authority. 

   

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

Regulatory requirement:

• National Energy Board Pipeline Damage Prevention Regulations – Authorizations

Relevant section(s):

• • 10 Authorization – ground disturbance activity
    • (3) Any person that is engaged in an activity that causes a ground disturbance within the prescribed area must comply with the following measures:
      • (h) unless otherwise agreed on by the pipeline company and the person that is engaged in the activity, notify the pipeline company at least 24 hours before backfilling over a pipe.

Company action required:

Utopia will ensure that its relevant procedures accurately reflect the NEB regulatory requirements for backfill notification. Utopia shall provide the NEB with confirmation by way of email that the corrective action is complete. 

Due date: 2019-08-30

Date closed: 2019-09-10
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: