Compliance Verification Activity Report: CV2122-383 - Commandité gestion energy windmill DREAM Québec inc., Zibi Community Utility

Overview

Compliance verification activity type: Field Inspection

Team:

• Inspector 2463
• Inspector 2538

Regulated company: Commandité gestion energy windmill DREAM Québec inc., Zibi Community Utility

Operating company: Zibi Community Utility (Zibi/Windmill)

Province(s) / Territory(s):

• Ontario
• Quebec

Discipline(s):

• Damage Prevention
• Safety Management
• Standard Condition
• Sunset Clause

Related events:

• CV2122-332

Rationale and scope:

<span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Canada Energy Regulator (CER or Regulator) will be conducting a Compliance Verification Activity (CVA) with field inspections of Commandit&eacute; gestion energy windmill DREAM Qu&eacute;bec inc. (Windmill/Zibi) operating and / or abandoned Pipelines and associated facilities and workplaces. &nbsp;&nbsp;</span></span><br /> <br /> <span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The purpose of these inspections is to verify compliance with:</span></span> <ul> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">the<em> Canadian Energy Regulator Act</em>; </span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Relevant Regulatory instruments such as Certificate(s), Order(s) (as amended); </span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Any other relevant plans, manuals, and procedures, for the operations of the pipelines(s); </span></span></li> <li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Reports and &nbsp;filings from Windmill/Zibi on file with the Regulator; and</span></span></li> <li><span style="font-size:11.0pt"><span style="font-family:&quot;Calibri&quot;,sans-serif">Follow-up to CV2122-332. </span></span></li> </ul>

Compliance tool(s) used:

• None

Facility details

Facilities:

• MEDIUM TEMPERATURE SERVICE RETURN
• MEDIUM TEMPERATURE SERVICE
• HOT WATER SERVICE RETURN
• HOT WATER SERVICE
• CHILLED WATER TEMPERATURE SERVICE RETURN
• CHILLED WATER TEMPERATURE SERVICE
• Ottawa, ON to Gatineau, QC - Steam
• Ottawa, ON to Gatineau, QC - Effluent
• OTTAWA, ON TO GATINEAU, QC - CONDENSATE

Facility Types

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

Life-cycle Phases

• Construction
• Deactivated
• Decommissioning & Abandonment
• Operations
• Post-Construction (Reclamation)
• Pre-Construction

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 – Obligations of Pipeline Companies

Regulatory instrument number(s):

• AO-004-CPTC-1983-2
• AO-003-1995-P-35
• AO-001-MO-067-2015
• MO-067-2015
• MO-071-2018
• ZO-005-2020
• XC-001-2021
• MO-020-2017

Observations (no outstanding follow-up required)

Observation 1 - CV2122-383 - Field Inspcetion Zibi/Windmill Pipelines - General Observations

Date & time of visit: 2022-03-10 13:30

Discipline: Administrative

Categories:

• Regulatory Instrument
• Condition

Facility:

• MEDIUM TEMPERATURE SERVICE RETURN (Pipeline)

Observations:

Context / Background

On 28 September 2018 the Board issued Order MO-071-2018 (Deactivation Order) the effect of which was to approve the deactivation of four (4) pipelines as described in Schedule A of the Deactivation Order for pipelines regulated under Certificate CPTC-1983-2 (as amended), and Order 1995-P-35 (as amended) which further describes those regulated pipelines.

On 20 July 2018 Zibi filed with the Board its Review of Abandonment Cost Estimates (ACE).

On 25 June 2020 Zibi/Windmill requested leave from the Commission to Abandon pipelines regulated under the Deactivation Order.

On 23 October 2020 the Commission issued Order ZO-005-2020 (Abandonment Order) granting leave to abandon the four (4) deactivated pipelines and associated facilities under the Deactivation Order.

On 22 February 2021, the Commission issued Order XC-001-2021 (Zibi Project or the Order) the effect of which was to approve the construction of six (6) new pipelines outlined in Schedule A of the Order.

On 2 February 2022, the Commission granted a partial Leave to Open the Zibi Project and Issued Order CPLO-001-2022 (Partial Leave to Open) for two (2) of the pipelines (Medium Temperature Service Lines) associated with the Zibi Project, which were placed into service shortly thereafter.

On 2 March 2022, Zibi/Windmill requested that the CER return the Letter of Credit associated stating it had decommissioned and abandoned all pipes in accordance with the Abandonment Order).  

Operations – Field Observations

• Zibi/Windmill Representatives accompanied CER Officer and Zibi’s operator of the pipelines system associated with the Zibi Project at the Thermal Plant (the Plant) located on the northern side of the Ottawa River / “Rivière de Outaouais” (the River) areal pipeline crossing.
• The Plant is situated in the lower levels of a condominium/residential tower under construction at the on the south side of Rue Jos Monferrand, Gatineau (Hull) Québec, at the intersection with (and located) to the East of Eddy Street.
• Zibi’s pipelines system operator provided a tour of the Plant and associated facilities and explained flow and operations processes of the Plant and the greater System associated to the Zibi Project.
• Piping inside the Plant is color-coded for different process products, flow directions are indicated.
• CER Officer notes that the interconnected Plant and facility piping are Provincially regulated and that CER regulated infrastructure under the Order is limited to the pipeline segments that cross the River from an above ground valves site at the Québec shoreline (Québec Valves) and valves near the Ontario shoreline (Ontario Valves).
• Zibi/Windmill Representatives indicated that the Québec Valves and Ontario Valves are manually operated and there are no remote operations of these valves.   
• Pipelines are buried between the connection point at the Québec Valves and the risers adjacent to the building where the pipelines enter the Plant.
• On the Ontario side pipelines are buried to the south of the Ontario Valves.   

• Accompanies by Zibi/Windmill Representatives, CER Officer observed locations of which occupied air space over the span above the Ottawa River between Gatineau (Hull), Québec and Ottawa, Ontario as described in filings and information associated with the Abandonment Order. 
• For the East-West Truss Bridge, which runs from the edge of the River on the northern shore to the Chaudière (Union) Bridge, CER Officer did not identify any pipelines associate with the Abandonment Order or previously deactivated under the Deactivation Order.
• For the North-South Truss Bridge, which ran alongside and parallel to the Chaudière Bridge, the CER Officer did not identify the presence of any pipelines associated with the Abandonment Order or the Deactivation Order.
• No sections of pipe associated with the Abandonment Deactivation Orders were identified to be present for sections of pipelines which were located on the Union adjacent to the bridge deck and associated described in the Abandonment or Deactivation Orders.   

• The was no ongoing construction activities at the time of inspection.
• A new pipe bridge (North-South Truss Bridge), installed on existing footings is in place along the Chaudière Crossing.
• A new pipe bridge (East-West Truss Bridge) is in place, installed on existing footings.
• Four (4) pipelines are caped at the edge of truss bridges on either side of the Union Bridge. 
• Zibi/Windmill Representatives indicated that the four (4) remaining pipeline segments to be constructed were to be completed sometime in 2022. CER Officer is of the understanding that scheduling has yet to be confirmed and is dependent / limited by coordination with a Public Services and Procurement Canada (PSPC) Project for ongoing upgrades and maintenance project by PSPC - Chaudière Crossing: Union Bridge rehabilitation and Hull Causeway widening.
• Two (2) pipelines connecting the North-south Truss Bridge and the Ontario side Truss Bridge, are suspended from the Union Bridge deck. These two Pipelines were identified by Zibi/Windmill Representatives as the Medium Temperature Service lines (OD 355.6mm).
• The CER Officer is of the understanding that the Commission granted a partial Leave to Open the Zibi Project and Issued Order CPLO-001-2022 on 2 February 2022, and that lines were placed into service shortly thereafter.
• On the Ontario shoreline, pipelines are installed in a new Truss Bridge which connects to buried pipelines at the Ontario Valves.
• Ontario Valves are buried with access hatches/covers at ground level to allow for manual operation.  

Compliance tool used: No compliance tool used

Observations (company follow-up required)

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