Compliance Verification Activity Report: CV2223-272 - Minell Pipeline Limited

Overview

Compliance verification activity type: Field Inspection

Team:

• Inspector 2391
• Inspector In Training 2557T

Regulated company: Minell Pipeline Limited

Operating company: Manitoba Hydro

Province(s) / Territory(s):

• Manitoba

Discipline(s):

• Damage Prevention

Related events:

• CV2122-329
• CV2122-331

Rationale and scope:

To follow-up on the company's IR responses (from CV2122-331) regarding its safe excavation procedure, including the process for dealing with unknown or abandoned facilities upon discovery and clarify the locate request process post-incident. 

Compliance tool(s) used:

• Notice of Non-compliance (NNC) (5)

Facility details

Facilities:

• MINELL NATURAL GAS PIPELINE

Facility Types

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

Regulatory requirements

Regulatory requirements that apply to this activity:

• Canadian Energy Regulator Act (CERA)
• Canadian Energy Regulator Act (CERA)
• Canadian Energy Regulator Pipeline Damage Prevention Regulations – Authorizations
• Canadian Energy Regulator Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies
• Onshore Pipeline Regulations (OPR) 2020-03-16
• Plans And Procedures
• Standard Operating Procedure or Plan (SOP)
• Manitoba Hydro Safe Excavating Guidelines
• Project-specific plan or procedure
• Minell Natural Gas Pipeline Lowering Plan
• Standard Operating Procedure or Plan (SOP)
• Excavating Practices for Natural Gas Lines 5.400.09
• Standards
• CSA Z662-19 - Oil and Gas Pipeline Systems

Observations (no outstanding follow-up required)

Observation 1 - General Observations - Minell Pipeline Remediation Work (Lowering)

Date & time of visit: 2022-10-12 08:30

Discipline: Damage Prevention

Categories:

• Monitoring and Reporting
• Records
• Patrols, Inspection and Field Observations
• Pipeline Identification
• Signs
• Railway and Road RoW
• Locate Markings
• Locates and Information
• Locate Requests
• Ground Disturbance
• Authorization and Consent

Facility:

• MINELL NATURAL GAS PIPELINE (Pipeline)

Observations:

CER Inspection Officers (CER IOs) accompanied Manitoba Hydro (Minell) representatives to conduct a field inspection of the remediation work (lowering) on the Minell Natural Gas Pipeline (Minell pipeline) performed by the company's contractor. The following was observed by CER IOs at the worksite:

• Topsoil was stripped upon arrival and piled around the work area. Company and contractor representatives explained that stripping the topsoil first ensures that it is not compacted upon backfilling the pipe.
• Approximately 1 metre of the Minell pipeline had been completely exposed.
• Daylight holes had been dug by hydrovac 8 metres apart, and each of the holes was covered by a wood panel and an orange cone.
• White marks were painted on the ground to indicate the minimum distance from the pipe that the excavator is required to maintain. 
• Wooden survey stakes with pink paint tips were in place on both sides of the work area, parallel to the pipe, in accordance with the pipe lowering plan. IOs also noted that the markings on the worksite were consistent with the APWA color code as found in in the company's Safe Excavation and Safety Watch Guidelines document (e.g., pink for temporary survey markings and yellow for gas). Minell representatives also confirmed that a locate request was made and that no other buried infrastructure was present within the work area.
• Broken segments of steel pipes and PCV drain pipes were placed at the edge of the worksite. Company representatives explained that these were left from when they were discovered at the time of the incident (October 2021).
• Contractor personnel performed excavation work using a trackhoe equipped with a mud bucket (no "teeth") to dig a trench on each sides of the pipe while maintaining the minimum distance from the pipe of 18 inches. Labourers used shovels to completely expose the pipe. 
• CER IOs observed the movements of the trackhoe bucket during the excavation and noted that the bucket was not operated directly over the exposed pipe to prevent falling debris from contacting the pipe. 
• A pile of larger rocks and boulders was observed in the far corner of the worksite and it was confirmed by the contractor that they will not be used when backfilling. 
• CER IOs were informed that the contractor requested to use an excavator spoon to remove the soil that remained under the pipeline after digging the trench on each sides. This method was however not used while CER IOs were on site as it was not approved by the company as the contractor was required to follow the requirements in the Manitoba Hydro's Safe Excavating Guidelines and Excavating Practices for Natural Gas Lines (document #5.400.09). It was further explained to CER IOs that the contractor was required to submit a site-specific excavation plan for Manitoba Hydro's review and approval prior to using the spoon. As an alternative to the use of the spoon, CER IOs were informed on day 2 of the inspection (October 13, 2022) that a hydrovac truck was scheduled to arrive that day to assist with the excavation by removing any dirt below the pipe.
• CER IOs observed that the operator was removing a few inches of soil directly on top of the pipeline without using a probe first in contravention of Manitoba Hydro's Safe Excavating Guidelines and Excavating Practices for Natural Gas Lines (document #5.400.09). Although the daylight holes provided an indication of the pipe's alignment (vertical and horizontal), the daylight holes were sometimes observed to be filled up with or covered by soil from the trackhoe crossing the pipeline during the excavation and pushing dirt into the daylight holes which therefore blocked the visual confirmation of the pipe's depth. CER IOs discussed this observation with the Pipeline Inspector who acknowledged that the pipeline should be probed first using a hand-held probe (must be blunt with a rounded edge) prior to undertaking mechanical excavation directly over the pipe. The Pipeline Inspector immediately stopped work and spoke with the foreman/operator to ensure the appropriate "probe and excavate" method identified in the aforementioned documents be used moving forward. 
• CER IOs were informed that the following formed the contractor's work package for the remediation work to be performed at the location:
  • a completed Electric and/or Natural Gas Facilities Locate document, which included a drawing of the work area along with a legend for the markings, terms and conditions as well as general instructions and other specific instructions such as the requirement for a safety watch when excavating within 3 metres of gas marks as identified.
  • a copy of the Manitoba Hydro Safe Excavation & Safety Watch Guidelines
  • a copy of the Temporary Access Agreement document
  • Manitoba Hydro Lowering Plan containing instructions for the contractor
• The Pipeline Inspector explained to CER IOs that an inspection, including jeeping the pipe is conducted prior to backfiling over the pipe to ensure that the pipe's condition meets applicable standards or identify any damage that may require repairs. An inspection report is completed using the Pipe Inspection/Identification Report form to record observations. 
• Partially-completed Construction Inspection Checklist Transmission and High Pressure Pipelines document was reviewed by CER IOs. This document was used to record observations about safety-related requirements such as the use of the Safe Excavation Guidelines and obtaining utility clearances, as well as recording any non-conformances and associated corrective actions. 

Compliance tool used: No compliance tool used

Observation 2 - NNC #1 - Edge of Right-of-Way Marker Posts

Date & time of visit: 2022-10-12 08:30

Discipline: Damage Prevention

Categories:

• Pipeline Identification
• Signs
• Railway and Road RoW

Facility:

• MINELL NATURAL GAS PIPELINE (Pipeline)

Observations:

CER IOs observed pipeline identification signage present on both sides of the roadway (85 N) where the pipeline crosses. The metallic signs were yellow and displayed the name of Manitoba Hydro in black print. One pipeline right-of-way (RoW) marker post was also present on the South side of the roadway a few metres away going East. These were made of yellow plastic with a label displaying the name of Centra Gas and a phone number that was different than the metallic Manitoba Hydro pipeline identification signs.

CER IOs were informed that signage maintenance was conducted during annual leak surveys where the company would look for damaged or missing signage, but added that RoW marker posts are not in focus for the annual leak surveys. While the RoW marker posts are not a legislated requirement, CER IOs explained that if pipeline companies have installed RoW marker posts, that they are required to ensure they are maintained accordingly. CER IOs further noted that in this case, RoW marker posts and pipeline identification signs with different emergency contact information can also cause confusion and delays in the case of an emergency. 

As an alternative, CER IOs also explained that should it be determined by the company that RoW marker posts no longer serve their intended purpose, that the company has the flexibility to vary its applicable procedures accordingly. 

CER IOs therefore determined that the company did not demonstrate that it adequately monitored its pipeline RoW to ensure that RoW marker posts were maintained in accordance with the company's procedures. A notice of non-compliance pursuant to OPR Section 39 was issued.
 

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

Regulatory requirement:

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

Relevant section(s):

• • 39 A company shall develop a surveillance and monitoring program for the protection of the pipeline, the public and the environment.

Company action required:

The company is required to:

• submit a plan for addressing all inadequate signage in the short term (e.g., replacement, removal); and
• describe how it plans to maintain the signage going forward (e.g., patrols, procedural update or variance).

Due date: 2023-01-31

Date closed: 2023-05-04
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 - Mechanical Equipment Crossing OPR s. 6.5(1)(e)

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

Discipline: Damage Prevention

Categories:

• Vehicle or Mobile Equipment Crossings
• Authorization and Consent
• Temporary Crossings

Facility:

• MINELL NATURAL GAS PIPELINE (Pipeline)

Observations:

CER IOs observed the trackhoe cross the pipeline a number of times to excavate a trench on both sides. When IOs asked about any weight or load-bearing assessment conducted by the company to determine if the mechanical equipment used at the worksite was safe to cross, the company indicated that a vehicle/loading assessment was done in 2012 on the Minell Pipeline which determined that highway vehicles and farm equipment were safe to cross where the pipeline has 600 mm of cover of more. The company added that the areas of insufficient cover (less than 600 mm as per the 2012 assessment) for the Minell remediation site were therefore staked to prevent equipment crossing by the contractor. However, IOs determined that using the 2012 assessment was not sufficient to demonstrate that the company has evaluated and managed the risks posed by the crossing of the mechanical equipment used a the remediation site over the Minell Pipeline. Inadequate evaluation of risks is in non-compliance with section 6.5(1)(e) of the Onshore Pipeline Regulations (OPRs) - a notice of non-compliance was therefore issued.

 

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

Regulatory requirement:

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

Relevant section(s):

• • 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 the risks associated with the identified hazards and potential hazards, including the risks related to normal and abnormal operating conditions;

Company action required:

The company is required to:

• provide IOs with the results of the weight or load-bearing assessment completed for the mobile equipment used on the remediation site inspected by the CER in October 2022; and
• describe where, within the company's management system and/or damage prevention program, the step to complete a weight or load-bearing assessment for any vehicle or mobile equipment used during activities near the Minell Pipeline will be documented (for example, by updating a particular procedure) to ensure that such assessment is performed for any future work (maintenance or otherwise) near the Minell Pipeline and that the proper controls are applied as required (for example, access restriction or the use of rig mats). 

Due date: 2023-01-31

Date closed: 2023-05-04
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 - Inadequate Procedures for Managing Discovery of/Damage to Unknown Facility

Date & time of visit: 2022-10-14 09:00

Discipline: Damage Prevention

Categories:

• Damage Prevention Program
• Manage and Mitigate

Facility:

• MINELL NATURAL GAS PIPELINE (Pipeline)

Observations:

Upon review of Manitoba Hydro's safe excavation procedures, CER IOs noted that there were no procedure or process that documents what to do when abandoned, unidentified or foreign infrastructure is found during a ground disturbance activity. Manitoba Hydro confirmed that they do not have a written procedure or process for when foreign abandoned or unidentified infrastructure are exposed during a ground disturbance activity.

Section 27 of the OPR requires the company to develop, regularly review and update operation and maintenance manuals that provide information and procedures to promote safety, environmental protection and efficiency in the operation of the pipeline.
 
In addition, OPR Section 6.5 (1)(t) requires the company to establish and implement a process for developing contingency plans for abnormal events that may occur during construction, operation, maintenance, abandonment or emergency situations.

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

Regulatory requirement:

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

Relevant section(s):

• • 6.5
    • (1) A company shall, as part of its management system and the programs referred to in section 55,
      • (t) establish and implement a process for developing contingency plans for abnormal events that may occur during construction, operation, maintenance, abandonment or emergency situations;
  • 27 A company shall develop, regularly review and update as required, operation and maintenance manuals that provide information and procedures to promote safety, environmental protection and efficiency in the operation of the pipeline and shall submit them to the Regulator when required to do so.

Company action required:

The company is required to develop a corrective and preventive action (CAPA) plan that describes how it plans to address the deficiencies noted in this observation upon discovering foreign buried infrastructure during a ground disturbance activity. This CAPA plan must include a schedule for the implementation of these corrective and preventive actions.

Due date: 2023-01-31

Date closed: 2023-05-04
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 - Contractor Oversight - Field Supervision of Labourers in the Trench

Date & time of visit: 2022-10-12 07:00

Discipline: Damage Prevention

Categories:

• Monitoring and Reporting
• Patrols, Inspection and Field Observations
• Damage Prevention Program
• Manage and Mitigate
• Ground Disturbance
• Guidelines

Facility:

• MINELL NATURAL GAS PIPELINE (Pipeline)

Observations:

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

Regulatory requirement:

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

Relevant section(s):

• • 6.5
    • (1) A company shall, as part of its management system and the programs referred to in section 55,
      • (k) establish and implement a process for verifying that employees and other persons working with or on behalf of the company are trained and competent and for supervising them to ensure that they perform their duties in a manner that is safe, ensures the safety and security of the pipeline and protects the environment;

Company action required:

The company is required to develop a corrective and preventive action (CAPA) plan that describes how it plans to address the deficiencies noted in this observation to ensure that unsafe work practices by employees and other persons working with or on behalf of the company on the field are corrected immediately. This CAPA plan must include a schedule for the implementation of these corrective and preventive actions.

Due date: 2023-01-31

Date closed: 2023-05-04
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 - NNC#5 - Tailgate Meeting and Emergency Response Plan (ERP)

Date & time of visit: 2022-10-12 08:00

Discipline: Damage Prevention

Categories:

• Damage Prevention Program
• Processes and Standards
• Manage and Mitigate

Facility:

• MINELL NATURAL GAS PIPELINE (Pipeline)

Observations:

CER IOs attended the tailgate meeting at the site the morning of 12 October 2022 and noted that the meeting and review of site hazards was very brief and failed to identify several hazards. The work location was rural and CER IOs identified that the nearest medical centre was approximately 45 minutes away in Moosomin, (SK). CER IOs also noted that cellular coverage in the area was spotty.

• CER IOs observed that there was no site-specific emergency response plan (ERP).
  • In response to an IR sent to Manitoba Hydro on 12 October 2022 by the CER IOs, the contractor's overarching ERP was provided electronically at the end of business the following day, 13 October 2022. The ERP was not at the work site. 
• The job hazard analysis (JHA) form did not identify nearby medical centres or hospitals.
  • After discussion, the nearest medical centres were identified on the JHA form on day 2 of the inspection on 13 October 2022.
• Onsite personnel with first aid certification were not identified.
• There was no muster point designated until the CER IOs asked for the muster point location.

•  (k) establish and implement a process for verifying that employees and other persons working with or on behalf of the company are trained and competent and for supervising them to ensure that they perform their duties in a manner that is safe, ensures the safety and security of the pipeline and protects the environment;
• (q) establish and implement a process for coordinating and controlling the operational activities of employees and other people working with or on behalf of the company so that each person is aware of the activities of others and has the information that will enable them to perform their duties in a manner that is safe, ensures the safety and security of the pipeline and protects the environment;

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

Regulatory requirement:

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

Relevant section(s):

• • 6.5
    • (1) A company shall, as part of its management system and the programs referred to in section 55,
      • (k) establish and implement a process for verifying that employees and other persons working with or on behalf of the company are trained and competent and for supervising them to ensure that they perform their duties in a manner that is safe, ensures the safety and security of the pipeline and protects the environment;
      • (q) establish and implement a process for coordinating and controlling the operational activities of employees and other people working with or on behalf of the company so that each person is aware of the activities of others and has the information that will enable them to perform their duties in a manner that is safe, ensures the safety and security of the pipeline and protects the environment;
  • 32
    • (1) A company shall develop, implement and maintain an emergency management program that anticipates, prevents, manages and mitigates conditions during an emergency that could adversely affect property, the environment or the safety of workers or the public.
  • 34 A company shall take all reasonable steps to inform all persons who may be associated with an emergency response activity on the pipeline of the practices and procedures to be followed and make available to them the relevant information that is consistent with that which is specified in the emergency procedures manual.

Company action required:

The company is required to develop a corrective and preventive action (CAPA) plan that describes how it plans to address the deficiencies noted in this observation to ensure that an adequate site-specific emergency response plan is made for maintenance activities and available to employees and persons working with or on behalf of the company while on the field. This CAPA plan must include a schedule for the implementation of these corrective and preventive actions.
 

Due date: 2023-01-31

Date closed: 2023-05-02
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: