Compliance Verification Activity Report: CV2021-363 - Veresen NGL Pipeline Inc.

Overview

Compliance verification activity type: Field Inspection

Team:

• Inspector 1686
• Inspector In Training 2557T

Regulated company: Veresen NGL Pipeline Inc.

Operating company: Pembina Pipeline Corporation

Province(s) / Territory(s):

• Alberta
• Saskatchewan

Discipline(s):

• Damage Prevention

Rationale and scope:

Damage Prevention Inspection to verify compliance with the CER Act, the CER Onshore Pipeline Regulations and the CER Pipeline Damage Prevention Regulations with focus on third party oversight procedures on the Veresen NGL Pipeline (near the Burstall Cavern facility)

Compliance tool(s) used:

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

Facility details

Facilities:

• EMPRESS

Facility Types

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

Life-cycle Phases

• Operations

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
• National Energy Board Act (NEBA)
• Onshore Pipeline Regulations (OPR)
• Standards
• CSA Z662-19 - Oil and Gas Pipeline Systems

Observations (no outstanding follow-up required)

Observation 1 - Damage Prevention Inspection Opening Meeting General Observations

Date & time of visit: 2021-03-17 09:00

Discipline: Damage Prevention

Categories:

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

Facility:

• EMPRESS (Pipeline)

Observations:

The Canada Energy Regulator (CER) inspections officers (IO) met with Pembina Pipeline Corporation (Pembina) who operates Veresen’s NGL Pipeline Inc., Empress Pipeline. The virtual opening meeting for the desktop inspection of the Damage Prevention Program occurred on 17 March, 2021.
  
General information:
The Empress pipeline carries non-sour ethane, running 25 km from the Burstall Cavern facility located in Saskatchewan to a block valve in Cypress County, Alberta.

• Its right of way crosses land that is approximately 50% farmland and 50% grazing & pasture.
• There are 12 landowners across 40 parcels of land, as well as crown land in Alberta and Saskatchewan.
• Veresen’s Operator Pembina has implemented its Damage Prevention Public Awareness (DP PA) Program

• All brochures have recently been revamped and updated.
• Right of way signage is surveyed annually.

• SP 3.3.30-Pipeline and Utility Crossing Standard
• 3.3.29 Ground Disturbance Standard
• 3.3.29-1 Ground Disturbance Permit
• Foreign Crossing form
• LL Report - Locator competency report system generated
• SC Line Locating Competency Evaluation Confirmation form
• 3.3.14-Signage Standard
• 5.4 Brush Control Management Standard

Compliance tool used: No compliance tool used

Observation 2 - Information Request #2 Veresen Empress

Discipline: Damage Prevention

Categories:

• Damage Prevention Program
• Monitoring
• Monitoring and Reporting
• Reporting

Facility:

• EMPRESS (Pipeline)

Observations:

CER Operations Inspectors are requesting information with regards to CV2021-363 pursuant to the Damage Prevention Program (DPR)-Obligations of Pipeline Companies s. 16(c) ongoing monitoring of any change in the landowner of the land on which a pipeline is located and
DPR-0 s. 11 Obligations to report.

Compliance tool used: Information Request (IR)

Regulatory requirement:

• Canadian Energy Regulator Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies

Relevant section(s):

• Section 11 (1) The pipeline company must immediately report to the Regulator (a) every contravention of the Canadian Energy Regulator Pipeline Damage Prevention Regulations – Authorizations; (b) all damage to its pipe caused or identified during the construction of a facility across, on, along or under a pipeline, the operation, maintenance or removal of a facility, an activity that caused a ground disturbance within the prescribed area or the operation of vehicles or mobile equipment across the pipeline; and (c) any activity related to the construction of a facility across, on, along or under a pipeline, an activity that caused a ground disturbance within the prescribed area or the operation of vehicles or mobile equipment across a pipeline that the pipeline company considers could impair the safety or security of the pipe. Section 16 The damage prevention program that a pipeline company is required to develop, implement and maintain under section 47.2 of the Canadian Energy Regulator Onshore Pipeline Regulations must include (c) ongoing monitoring of any change in the landowner of the land on which a pipeline is located;

Company action required:

How are second party contractor contraventions of the DPRs captured and reported pursuant to DPR-O s. 11 (1) (2)?

How does Veresen monitor changes in landowners of the land on which a pipeline is located pursuant to DPR-O s.16 (c)?

At the opening meeting on 17 March 2021, Pembina indicated that it was updating the locate form, adding a field for ground disturber acknowledgement of understanding of the locate marks and information; when will that form be implemented in the field?

Due date: 2021-04-14

Date closed: 2021-05-20
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 - Information Request #3 Reporting DPR Contraventions

Discipline: Damage Prevention

Categories:

• Monitoring and Reporting
• Reporting

Facility:

• EMPRESS (Pipeline)

Observations:

CER Inspections Officers are requesting that the company provide the company's Unauthorized Activity Reporting Standard referred to in the Unauthorized Activity Process flowchart provided on slide 13 of the presentation given on 17 March.

Compliance tool used: Information Request (IR)

Regulatory requirement:

• Canadian Energy Regulator Pipeline Damage Prevention Regulations – Obligations of Pipeline Companies

Relevant section(s):

• DPR-O 11 (1) The pipeline company must immediately report to the Regulator (a) every contravention of the Canadian Energy Regulator Pipeline Damage Prevention Regulations – Authorizations; (b) all damage to its pipe caused or identified during the construction of a facility across, on, along or under a pipeline, the operation, maintenance or removal of a facility, an activity that caused a ground disturbance within the prescribed area or the operation of vehicles or mobile equipment across the pipeline; and (c) any activity related to the construction of a facility across, on, along or under a pipeline, an activity that caused a ground disturbance within the prescribed area or the operation of vehicles or mobile equipment across a pipeline that the pipeline company considers could impair the safety or security of the pipe.

Company action required:

Please send Pembina's Unauthorized Activity Reporting Standard referred to in the Unauthorized Activity Process flowchart provided on slide 13 of the presentation given on 17 March.

Due date: 2021-04-26

Date closed: 2021-04-23
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 - Notice of Non-compliance - Document Review

Date & time of visit: 2021-05-13 13:00

Discipline: Damage Prevention

Categories:

• Damage Prevention Program
• Manage and Mitigate

Facility:

• EMPRESS (Pipeline)

Observations:

During the document review, the CER IO's observed that  some of Veresen's documentation did not accurately reference the current regulatory requirements pursuant to the Onshore Pipeline Regulations (OPR) s.6.5(o) and is in non-compliance.  

• 3.3.14 Signage Standard - References CSA Z662-96
• 03.3.3.29-1 Ground Disturbance Permit 2018 July 16 - References the National Energy Board
• 3.3.30 Pipeline and Utility Crossing Standard - Referenced the prescribed area within 30 metres [98 feet] of the right-of-way of a federally-regulated pipeline

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,
      • (o) establish and implement a process for preparing, reviewing, revising and controlling those documents, including a process for obtaining approval of the documents by the appropriate authority;

Company action required:

Veresen to ensure that all of its Damage Prevention documentation accurately reflect the CER regulatory requirements pursuant to the OPR s.6.5(o). Examples of documentation requiring updates includes:

• 3.3.14 Signage Standard - References CSA Z662-96
• 03.3.3.29-1 Ground Disturbance Permit 2018 July 16 - References the National Energy Board
• 3.3.30 Pipeline and Utility Crossing Standard - Referenced the prescribed area within 30 metres [98 feet] of the right-of-way of a federally-regulated pipeline

Due date: 2021-06-17

Date closed: 2021-05-20
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: