Compliance Verification Activity Report: CV2223-270 - NOVA Gas Transmission Ltd.

Overview

Compliance verification activity type: Field Inspection

Team:

• Inspector 2927
• Inspector 2648
• Inspector 2391

Regulated company: NOVA Gas Transmission Ltd.

Operating company: NOVA Gas Transmission Ltd.

Province(s) / Territory(s):

• Alberta

Discipline(s):

• Safety Management

Related events:

• CV2223-290
• INC2022-149

Rationale and scope:

CER field inspection in response to INC2022-149. Verify implementation of the construction safety manual, including contractor oversight, and whether adequate controls are in place to prevent a recurrence. 

Compliance tool(s) used:

• Inspection Officer Order (IOO) (2)
• Notice of Non-compliance (NNC) (1)

Facility details

Facilities:

Facility Types

• Pipeline
• Pipeline

Life-cycle Phases

• Construction

Regulatory requirements

Regulatory requirements that apply to this activity:

• Canadian Energy Regulator Act (CERA)
• Canadian Energy Regulator Act (CERA)
• Onshore Pipeline Regulations (OPR) 2020-03-16
• Plans And Procedures
• Project-specific Contractor/Project Safety Plan (CSP)
• North Corridor Expansion Project Execution Plan, TC Energy Doc No. 000880-TC-PM-PLN-0001
• Standards
• CSA Z662-19 - Oil and Gas Pipeline Systems

Regulatory instrument number(s):

• XG-021-2020

Observations (no outstanding follow-up required)

Observation 1 - Inspection Officer Order DRP-001-2022 - Pipe unloading

Date & time of visit: 2022-08-30 12:30

Discipline: Safety Management

Categories:

• Workplace Practices
• Job/Task Safety Analysis
• Contractor Management & Oversight
• Responsibilities and Accountability

Facility:

Observations:

COMPANY TO WHOM THIS ORDER IS DIRECTED

NOVA Gas Transmission Ltd. (NGTL) is a company conducting work associated with a regulated facility located near Bear Canyon, AB as part of the North Corridor Expansion Project. On or about 30-Aug-2022 at 10:30am MST, the undersigned Canada Energy Regulator (CER) Inspection Officer conducted a compliance verification activity (CVA) at the NGTL Bear Canyon stockpile yard in response to an incident that was reported to the CER on 26 August 2022. 

RELEVANT FACTS

I, Inspection Officer #2927, designated as a CER Inspection Officer (IO) under subsection 102(1) of the Canadian Energy Regulator Act (CER Act), believe the following are the relevant facts relating to the issuance of this Order: 

• On 26 August 2022 at approximately 5:20 PM MST a contract worker working at a regulated facility located near Bear Canyon, AB sustained serious injuries after being struck by a 24-meter length of 914 mm diameter pipe weighing approximately 6350 kilograms that fell off a trailer while being unloaded with the aid of a deckhand and excavator.
• The contractor’s written work instructions titled SP.OE16 – Unload Pipe From Trucks Using Deckhand (referred to by the contractor as the Job Safety Analysis, called JSA) used by workers to carry out the task failed to identify critical steps including the spotters responsibility to ensure workers were out of the line of fire prior to the deckhand making contact with the pipe, and the method by which the spotter communicated with the deckhand operator that it was safe to proceed with unloading the pipe.
• IO interviewed NGTL (Owner) representative on site who was the only NGTL representative present at the location at the time of the incident. When asked by the IO, the owner representative stated he was not familiar with the JSA and therefore was unable to demonstrate adequate knowledge of the pipe unloading work required to fulfill the company’s responsibility to oversee worker safety pertaining to the unloading task.
• At the time of the CVA, there was insufficient information provided to the Inspection Officer to demonstrate that the risk associated with the pipe unloading activities for the Bear Canyon stockpile yard and the NGTL North Corridor Expansion Project were sufficiently mitigated, and that NGTL representatives overseeing the work were competent to perform their safety related responsibilities. 

Compliance tool used: Inspection Officer Order (IOO)

Regulatory requirement:

• Canadian Energy Regulator Act (CERA)

Relevant section(s):

• • General Duty
    • Reasonable care
      94 The holder 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.

Company action required:

Inspection Officer Order DRP-001-2022: Measure 1

1. Cease pipe unloading activities on the North Corridor Expansion Project until such time that the Inspection Officer has confirmed in writing that it is satisfied that NGTL has demonstrated that:
   1. contractor(s) unloading pipe on behalf of NGTL have written work procedures that are sufficient to perform the work safely and prevent recurrence of the incident that occurred on 26 August 2022; and
   2. NGTL representatives (e.g., inspectors) overseeing pipe unloading have the expertise, knowledge, and training to competently carry out their safety related responsibilities.

1. Provide the Inspection Officer a written corrective and preventive action (CAPA) plan by 21 Sep 2022 describing how NGTL will:
   1. verify all contractors unloading pipe on behalf of NGTL at CER regulated worksites have effectively implemented work procedures that are adequate to perform the work safely and prevent a recurrence of the incident, and
   2. verify NGTL representatives (e.g., inspectors) overseeing pipe unloading activities at CER regulated worksites are trained and competent to fulfill their inspection role as it relates to worker safety.

1. Implement the CAPA identified in measure 2 and provide the Inspection Officer with written updates every month commencing on 30 Sep 2022 until the CAPA has been completed.

Due date: 2022-09-30

Date closed: 2022-09-27
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

There are no observations with outstanding follow-up

Observation 2 - Bear Canyon Stockpile Yard

Date & time of visit: 2022-08-30 10:00

Discipline: Safety Management

Categories:

• Workplace Practices
• Job/Task Safety Analysis
• Procedures/Work Instructions
• Contractor Management & Oversight
• Responsibilities and Accountability
• Supervision, Inspection and Monitoring

Facility:

Observations:

• CER Inspection Officers (IOs) arrived on site at approximately 10:30 AM (MST) to perform an unannounced field inspection at the NGTL North Corridor Expansion Project (NCE) Bear Canyon Stockpile Yard (BC yard) in response to an incident that NGTL reported to the CER on 26 August 2022 (incident).
• Pipeline company and contractor representatives arrived at the yard at approximately 11:30 AM (MST) to attend a safety stand-down related to the incident.
• IOs received a verbal summary of the incident and an update on the worker's condition from the Contractor's Operations Manager. The Operations Manager also provided the following information to the CER IOs:
  • The site was frozen since the incident;The Contractor notified the applicable provincial occupational health and safety authority of the incident; and
  • There were currently no pipe hauling activities (including loading and unloading) underway for the NCE Project by the Contractor.
• At approximately 12:30 PM MST on 30 August 2022, CER IO verbally issued Inspection Officer Order DRP-001-2022 to the NCE Bear Canyon Project Manager requiring NGTL to cease pipe unloading work on NCE.
• IOs attended the NGTL-Contractor safety stand-down, during which the contractor presented the incident investigation findings and corrective actions.
• IOs interviewed the NGTL Inspector, who was present at the time of the incident. The Inspector summarized his duties, including stop work authority, and provided a summary of the incident.
• When asked about written work instructions for pipe unloading, contractor representatives presented the following JHAs to the IOs:
  • SP.EO16 - Unload Pope From Trucks Using Deckhand,
  • SP.L8 - Stockpiling of Tubular Material with deckhand/vac-lift
  • SP.L9 - Inserting End Caps
• IOs received a verbal summary of the incident from a contractor worker (the spotter) who was present at the time of the incident.
  • Some of the safety controls mentioned by the spotter were absent from the JHAs, including a 6-meter exclusion zone and the requirement to ensure the truck's cab was empty before unloading.
  • In the spotter's description of the incident, it appeared two labourers were standing adjacent to the truck's cab opposite the deckhand operator approximately 2 meters from the trailer when the spotter gave the signal to proceed with unloading the pipe.

Compliance tool used: No compliance tool used

Observation 3 - NNC 1 - Documenting Inspector Duties

Date & time of visit: 2022-10-26 12:00

Discipline: Safety Management

Categories:

• Contractor Management & Oversight
• Responsibilities and Accountability

Facility:

Observations:

CER Inspection Officers (IOs) have reviewed the construction safety manuals for the Westpath Delivery 2022 Raven River Section and the North Corridor Expansion Bear Canyon North Extension (CV2223-269 and CV2223-270, respectively). The safety-related responsibilities specific to NGTL Inspectors documented in the construction safety manuals are broad. For example, section 6.3.1 of the safety management plan for both projects states the Inspector is responsible for the following:

• "Occupational health and safety project management," and
• "Inspect & Monitor Prime/General Contractor."

In response to CER's request for the safety-related duties and responsibilities for Inspectors, NGTL provided the following:

• TC Energy General Inspector Requisition (CV 2223-270, IR No. 1.10)
• Inspector Expectations and Construction Manager Expectations (CV 2223-270, IR No. 3.1)
• TC Energy Welding Inspector Requisition (CV 2223-269, IR 2.3)

Some of the duties documented in the above responses are broad. For example, NGTL's response to IR 1.10 states that the General Inspector must ensure that the contractor implements their SSSP. Although the Inspector was making observations on various tasks being performed in the stockpile yard, no document explicitly directed the Inspector to verify the implementation of specific requirements of the SSSP. A general statement in the Inspector's duties to verify all aspects of the SSSP does not constitute explicit direction to the Inspector to fulfill their oversight responsibilities.

Paragraph 6.1(1)(a) of the OPR requires a company's management system to be explicit. Specific oversight duties or responsibilities should be identified and included or referenced in the documents that constitute the construction safety manual required by Section 20 of the OPR.

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

Regulatory requirement:

• Onshore Pipeline Regulations (OPR) 2020-03-16

Relevant section(s):

• • 6.1
    • (1) A company shall establish, implement and maintain a management system that
      • (a) is explicit, comprehensive and proactive;

Company action required:

1. Provide a detailed list, grouped by role, of NGTL Inspector safety responsibilities during the construction of CER-regulated projects.
2. Confirm that the responsibilities identified above will be included or referenced (i.e. document number) in the construction safety manual(s) for future CER-regulated projects.

Due date: 2023-02-10

Date closed: 2023-03-03
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:

Observation 4 - Inspection Officer Order DRP-001-2022 (AMENDED) - Pipe unloading

Date & time of visit: 2022-09-27 12:44

Discipline: Safety Management

Categories:

• Workplace Practices
• Job/Task Safety Analysis
• Contractor Management & Oversight
• Responsibilities and Accountability

Facility:

Observations:

COMPANY TO WHOM THIS ORDER IS DIRECTED

NOVA Gas Transmission Ltd. (NGTL) is a company conducting work associated with a regulated facility located near Bear Canyon, AB as part of the North Corridor Expansion Project (NCE).

BACKGROUND

On 30 August 2022, the undersigned Canada Energy Regulator (CER) Inspection Officer (IO) issued order DRP-001-2022 to NGTL after conducting a compliance verification activity (CVA) at the NGTL Bear Canyon stockpile yard in response to an incident that NGTL reported to the CER on 26 August 2022. Specified measure 1 of the order requires NGTL to cease pipe unloading activities for the NCE.

On 16 September 2022, NGTL provided a partial response to specified measure 1 of the order. In their response, NGTL included pipe unloading procedures and measures to ensure Inspector competency for North Star 2 and Red Earth sections only, stating a response for the Bear Canyon section would be sent at a later date. NGTL requested CER amend the order to allow pipe unloading to continue on North Star 2 and Red Earth, stating the rationale for the request was to enable the completion of construction in the Red Earth section before the 15 February caribou Restricted Activity Period (RAP). 

In reviewing NGTL's request, the IO considered Condition 25 on the Certificate of Public Convenience and Necessity GC-131, which states, "The Commission expects NGTL to make every effort possible to avoid work during the RAP in the Red Earth caribou range." 

The IO is satisfied with NGTL's response to specified measure 1 of the order for the North Star 2 and Red Earth sections, as detailed below. Therefore, it is reasonable to amend the order allowing pipe unloading work to continue for these sections. The cease work order remains in effect for the Bear Canyon section.

On 21 September 2022, NGTL submitted a corrective and preventative action plan (CAPA) applicable to all NGTL CER-regulated worksites. The CAPA satisfies specified measure 2 of DRP-001-2022.

GROUNDS FOR AMENDING ORDER

• NGTL's response to specified measure 1 included revised pipe unloading procedures for the sole contractor unloading pipe on North Star 2 and Red Earth sections.  
• In their response, NGTL stated they had reviewed and accepted revised written work procedures from their pipe unloading contractor and applied initial learnings and corrective actions from the incident. The company also described the measures they had taken to ensure NGTL representatives were competent to carry out their oversight responsibilities, including:
  • ensuring NGTL representatives conduct a formal review of job tasks,
  • the addition of safety inspection resources to support NGTL general inspectors and oversee pipe unloading activities, and
  • reinforcing expectations for company inspectors to review contractor safe work practices and job hazard analyses. 
• After reviewing the 16 September response, the IO determined the CER needed more information to consider NGTL's request, including:
  • a description of the initial learnings and corrective actions,
  • copies of the contractor’s revised pipe unloading procedures, and 
  • details of how NGTL will add additional oversight resources to support the general inspectors.
• On 23 September 2022, NGTL responded to the information request with a copy of the contractor's work procedures. The IO requested additional information from the company regarding the delineation of exclusion zones at laydown yards and the sequence of unloading trailers hauling more than one tier of pipe.
• NGTL responded on 26-27 September 2022 with revised pipe unloading procedures for North Star 2 and Red Earth, and an explanation of their specification for loading and unloading multiple tiers of pipe. 
• After reviewing the response, the IO believes that NGTL has satisfied specified measure 1 of the order for North Star 2 and Red Earth sections.
• On 21 September 2022, NGTL submitted a CAPA applicable to all CER-regulated worksites satisfying specified measure 2 of DRP-001-2022, which is, as a result, removed in this amended order.

Compliance tool used: Inspection Officer Order (IOO)

Regulatory requirement:

• Canadian Energy Regulator Act (CERA)

Relevant section(s):

• • General Duty
    • Reasonable care
      94 The holder 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.

Relevant section(s):

Company action Required:

1. Cease pipe unloading activities on the North Corridor Expansion Project Bear Canyon Section until such time that the inspection officer has confirmed in writing that it is satisfied that NGTL has demonstrated that:
   1. contractor(s) unloading pipe on behalf of NGTL have written work procedures that are sufficient to perform the work safely and prevent recurrence of the incident that occurred on 26 August 2022; and
   2. NGTL representatives (e.g., inspectors) overseeing pipe unloading have the expertise, knowledge, and training to competently carry out their safety-related responsibilities.

Due date: 2023-09-30