GUIDANCE NOTES FOR THE

ONSHORE PIPELINE REGULATIONS, 1999

AMENDMENT 1 - 20 JANUARY, 2003

PREAMBLE

On 01 August, 1999 the Onshore Pipeline Regulations, 1999 (the Regulations or the OPR-99 came into force. The OPR-99 contained many "goal oriented" requirements and reflected the National Energy Board's (the Board or the NEB) commitment to the development of less prescriptive regulations under the National Energy Board Act (the Act).

In September 1999, the Board released the first edition of the Guidance Notes for the Onshore Pipeline Regulations (Guidance Notes). The Guidance Notes are not compulsory requirements, but were developed to provide assistance to interested parties in understanding the requirements of the OPR-99 and how those requirements could be met. The actual methods used to meet the specific requirements are at the discretion of individual companies, but the onus will be on each company to maintain adequate records and demonstrate to the Board, when requested, the adequacy and effectiveness of the methods employed.

Portions of the Guidance Notes may appear similar to text within standards incorporated by reference within the OPR-99. In instances where this occurs, efforts have been made to ensure the non compulsory Guidance Notes do not conflict with the compulsory requirements of the incorporated standard.

Appendices have been added to the Guidance Notes. The purpose of the appendices is to provide a convenient means of disseminating information which should be considered or complied with (depending on the nature of the information) when developing designs, specifications, programs, manuals, procedures, measures, plans or documents as required by the Regulations.

The information contained within the appendices may or may not be compulsory depending upon the manner in which it was issued. The Board is currently reviewing the manner in which information such as that which is included in the appendices is controlled and disseminated.

The Guidance Notes will be amended from time to time to reflect lessons learned through audits and assessments, advancements in technology, and broadly accepted changes within the pipeline industry. Amendments will be made in consultation with stakeholders.

The Board intends to continue to ensure compliance with the OPR-99 by auditing systems, specifications, procedures, records and training programs developed by companies, and by performing inspections during the construction and operation of pipelines.

TABLE OF CONTENTS

Interpretation

Application

General

PART 1 - DESIGN OF THE PIPELINE

• Detailed Designs
• HVP Pipelines
• Stations
• Storage Facilities

PART 2 - MATERIALS

• Specifications
• Quality Assurance Program

PART 3 - JOINING

• Joining Program
• Nondestructive Examination

PART 4 - CONSTRUCTION

• Construction Safety
• Right-of-way and Temporary Work Areas
• Crossing a Utility or Private Roadway

PART 5 -&nbnsp;PRESSURE TESTING

• Pressure Testing Program
• Permits for Use and Disposal of Water
• General Testing Requirements

PART 6 - OPERATION AND MAINTENANCE

• Operation and Maintenance Manuals
• Maintenance Safety
• Emergency Procedures Manual
• Continuing Education Program
• General Operation Requirements
• Pipeline Control System
• Maintenance Welding
• Monitoring and Surveillance
• Pipeline Integrity
• Change in Class Location
• Change of Service or Increase in Maximum Operation Pressure
• Deactivation and Reactivation
• Training Program
• Safety Program
• Environmental Protection Program
• Board Authority

PART 7 - ABANDONMENT

• Application for Leave to Abandon

PART 8 - REPORTING

• Crossing Reports
• Incident Reports

PART 9 - AUDITS AND INSPECTIONS

• General Compliance
• Construction Inspection
• Pipeline Control System and Safety Program Audits

PART 10 - RECORD RETENTION

• Requirements
• Repeal
• Coming Into Force

APPENDICES

• Appendix A - National Energy Board Order MO-08-2000
• Appendix B - Security and Emergency Preparedness and Response Programs
• Appendix C - Detailed Incident Report Form
• Appendix D - Guidance Notes for the Design, Construction, Operation, and Abandonment of Pressure Vessels

GOAL (s. 1): To provide definitions for terms used in the OPR-99.

Section 48 of the Act provides the Board with the authority to make regulations (subject to the approval of the Governor in Council) governing the design, construction, operation and abandonment of a pipeline and providing for the protection of property and the environment and the safety of the public and of the company's employees in the construction, operation and abandonment of a pipeline.

Companies may consider reporting to the Board events having the potential to attract public and/or media attention or which have or may have significant adverse effects on property, the environment or the safety of persons regardless of whether or not they meet the strict definition of an "incident". In addition, the Board has developed the following definition of a "major bone" to assist companies in complying with the reporting requirements set out in section 52 of the OPR-99:

"major bone"

skull, mandible, spine, scapula, pelvis, femur, humerus, fibula, tibia, radius, and ulna.

For other fractured skeletal bones not listed, only those fractures that require an individual to undergo immediate corrective surgery are classified as a serious injury, hence a reportable incident.

The definition of "pipeline" is provided within section 2 of the Act as:

"pipeline" means a line that is used or to be used for the transmission of oil, gas or any other commodity and that connects a province with any other province or provinces or extends beyond the limits of a province or the offshore area as defined in section 123, and includes all branches, extensions, tanks, reservoirs, storage facilities, pumps, racks, compressors, loading facilities, interstation systems of communication by telephone, telegraph or radio and real and personal property and works connected therewith, but does not include a sewer or water pipeline that is used or proposed to be used solely for municipal purposes;

The term "onshore pipeline" is specifically defined within the OPR-99 to clarify that the OPR-99 applies only to hydrocarbon pipelines in onshore areas. Onshore areas are generally accepted to be pipelines installed on land above the ordinary high water mark of major water bodies.

In addition to the terms defined within section 1, the terms "audit", "inspection", "program", "manual", "procedure", "practice", "plan" and "process" appear throughout the OPR-99 and within this document. For clarity, these terms are generally understood to have the following meanings:

audit

A systematic, documented verification process of objectively obtaining and evaluating evidence to determine whether specified activities, events, conditions, management systems or information about these matters conform with audit criteria (in this instance the OPR-99), and communicating the results of the process to the company.

inspection

An on-site and site-specific methodical examination and assessment of a company's construction, operation, or abandonment activities against its regulatory obligations, standards, acceptable industry practice, and the inspector's professional judgment. An inspection focuses on compliance requirements, usually pursuant to an approval condition or regulatory requirement, at an individual facility at a given point in time.

program

A documented set of procedures (and possibly a policy) that accomplish a goal. The program will set out how the procedures (and policy) are linked and how each one contributes toward the goal. The documentation alone is not enough to comprise a program; the procedures must be carried out and the results evaluated to determine if the program is meeting its intended purpose.

manual

A document that contains a set of instructions on methods which could be employed to accomplish a goal. These instructions will be detailed and comprehensive. The document will be organized for ease of use.

procedure

A documented series of steps followed in a regular and definite order. The procedure will set out who is responsible for completing each step and how the results are communicated.

practice

A repeated or customary action which is well understood by persons who are authorized to carry it out.

plan

A detailed, documented formulation of a procedure for action.

process

A documented or well understood continuing activity or function.

Finally, the terms "practical" and "practicable" are used within the OPR-99 and are generally understood to have the following meanings:

practical

Typically used to describe an activity or function that satisfies a need in the most economical and time expedient manner while considering social and economic factors as well as maintaining safety and the protection of property and the environment.

practicable

Means that something can and will be done even if it may not be practical.

Manuals, programs and procedures may be available in any format (such as electronic or print) provided the format has been agreed upon by the company.

GOAL (s. 2): To provide the scope of the application of the OPR-99.

By limiting the application of the OPR-99 to onshore pipelines (i.e., pipelines intended for the transmission of hydrocarbons), this section effectively exempts offshore pipelines and pipelines in non-hydrocarbon service (commodity pipelines).

GOAL (s. 3): To ensure there is no retroactive application of the OPR-99.

Design and construction requirements within the OPR-99 (Parts 1 to 5) do not apply to pipelines which, prior to 01 August 1999, were:

They do, however, apply to any modifications, additions and re-testing performed on or made to those pipelines after 01 August, 1999.

The balance of the OPR-99 applies to all onshore pipelines.

GOAL (s. 4): To ensure pipelines are designed, constructed, operated and abandoned according to the OPR-99 and appropriate standards.

The word "company" bears the same meaning in these Guidance Notes and in the OPR-99 as it does in the Act. Thus, the company which holds the Certificate or the Order must take all reasonable steps to ensure that all agents, contractors, operators, etc. are aware of and comply with the OPR-99, follow good safety and environmental practices, and obtain all necessary approvals and permits.

Referenced standards are part of the OPR-99. Companies may direct questions on interpretation or application of reference standards to the appropriate standards body. The Board is not bound by the interpretation of the standards body but would normally consider this interpretation in providing its own interpretation.

Standards incorporated by reference within this Regulation are in force from the date of publication. Companies should ensure compliance with changes to referenced standards as soon as practical after their publication.

GOAL (s. 5): To outline the Board's authority in ordering changes.

GOAL (s. 6): To ensure changes are monitored on a continuous and timely basis as required.

A program to monitor changes in respect of designs, specifications, standards or procedures could include:

GOAL (s. 7): To outline situations under which the Board may require information to be filed.

Section 7 provides additional information to companies by informing them that the Board may request formal filing of designs, specifications, programs, manuals, procedures, measures, plans or documents during the application process or when the Board has reason to believe they may pose a risk to the safety of persons or the protection of property and the environment.

There are alternative methods for requiring filings or for acquiring information in addition to the powers contained within section 7. The Board has published Guidelines for Filing Requirements which provide companies with an understanding of the minimum requirements for applications under the Act.

Section 49 of the Act provides designated NEB Inspection Officers with the power to obtain copies of "any information contained in any books, records or documents, or in any computer systems, that the inspector believes on reasonable grounds contain any information relating to the design, construction, operation, maintenance or abandonment of a pipeline." Companies are required by law to provide Inspection Officers with "all reasonable assistance" to enable the officer to carry out their duties.

GOAL (s. 8): To ensure a consistent level of safety and protection is provided for all pipelines.

When a company creates any design, specification, program, manual, procedure, measure or plan which is not governed by a standard referenced within the OPR-99, it must be submitted to the Board for approval. As a general rule, these documents would be evaluated against existing or relevant standards whenever possible.

Pressure vessels which are owned and operated by a federally regulated pipeline company and which are associated with the operation of the pipeline should be designed, constructed, operated and abandoned in accordance with the Guidance Notes for the Design, Construction, Operation and Abandonment of Pressure Vessels, as amended from time to time. These non-mandatory Guidance Notes have been developed by the Board and are currently out for final comment. Upon their adoption, they will be appended to these Guidance Notes.

The Guidance Notes for the Design, Construction, Operation and Abandonment of Pressure Vessels provides guidance to pipeline companies in the development of a program for the management of pressure vessels.

Boilers which are owned and operated by a federally regulated pipeline company and which are associated with the operation of the pipeline should be designed, constructed, operated and abandoned in accordance with Part V of the Canada Occupational Health and Safety Regulations. The Board has oversight over the regulatory compliance of boilers in accordance with a Memorandum of Understanding between Human Resources Development Canada and the NEB.

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PART 1

DESIGN OF THE PIPELINE

GOAL (s. 9): To ensure appropriate designs are developed for all pipelines.

Detailed designs and supporting information could demonstrate:

Designs may also include provision for compliance with the Environmental Protection Program referred to within section 48.

GOAL (s. 10): To ensure an acceptable level of safety for HVP pipelines is provided for in the vicinity of railways and roadways.

For assistance in preparing the documented risk assessment, companies are directed to CSA Z662, Appendix B, Guidelines for Risk Assessment of Pipelines. The nature and magnitude of the risk assessment could be commensurate with the nature, magnitude, and potential impact of the activity.

GOAL (s. 11): To ensure appropriate design considerations are used for all stations.

Stations may be equipped with security systems to prevent unauthorized entry or operation including remote operation through a SCADA system. Measures to deter mischief or acts of malicious intent could be considered.

Year round access, security, spill containment, waste handling, and noise limits are essential to the safe and environmentally sound operation of a station. Stations may be designed to prevent soil, groundwater and surface water contamination by employing methods and systems such as secondary containment, surface run-off retention ponds, leak detection, spill prevention and loss control programs.

Additional consideration may be given to design features that limit and monitor emissions and/or noise, lighting, emergency egress, confined space, ventilation, electrical classification, etc.

For noise levels, the company may identify any applicable or adopted federal, provincial and municipal legislation and guidelines or, in the absence of legislation and guidelines, the company standard that the facility has been designed to, or would be operated in accordance with, and submit that information to the Board for approval under section 8. The information provided could clearly demonstrate how the facility would be in compliance with the OPR-99 and the company standard.

GOAL (s. 12): To ensure that stations can be shut down in a safe and controlled manner in the event of primary power interruption.

Alternate sources of power for essential station systems may be designed so they can be tested periodically and should be in compliance with the requirements of the Canada Occupational Health and Safety Regulations, Part 8, Electrical Safety.

Emergency shut down (ESD) systems and controls may be designed to provide satisfactory service under all conditions.

Additional consideration may be given to design features such as lighting, emergency egress, confined space, ventilation, electrical classification, etc.

GOAL (s. 13): To ensure storage facilities are properly located and designed safely.

The location of a storage facility should be chosen so as to maximize employee and public safety, and to minimize environmental damage, including any threats to the quality of soil, surface water and groundwater, environmentally sensitive areas, and the health of humans, animals and plants during the construction, operation, deactivation, or abandonment of the storage facility. General construction considerations for storage facilities should also meet the requirements of the applicable standards referred to in section 4.

In order to prevent soil, groundwater and surface water contamination and to protect the environment, the design of storage facilities may include consideration of operating practices mentioned in the applicable standards referred to in section 4. This could include consideration of:

Storage facilities may have site specific operating procedures and integrity management requirements.

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PART 2

MATERIALS

GOAL (s. 14): To ensure that pipe and components are appropriate for their intended service.

Specifications may include the following:

GOAL (s. 15): To ensure that pipe and components meet the specifications developed under section 14.

A quality assurance (QA) program is intended to ensure that materials purchased by the company meet the company's specified requirements.

The rigor of the QA program may be commensurate with the scale of the order and its intended application. (e.g. the purchase of a single small diameter fitting would not warrant the same degree of scrutiny as would a major pipeline construction project).

QA programs may be comprised of the elements of a recognized standard, such as the ISO 9000 series of QA standards and may (where appropriate) include:

Pipeline companies may consider the history of compliance and satisfactory product performance when developing programs aimed at ensuring that products from specified manufacturers or suppliers are acceptable for their intended purpose

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PART 3

JOINING

GOAL (s. 16): To ensure that joining is designed and conducted in a manner that will ensure quality and integrity.

The joining program shall meet the requirements of the applicable standards referred to in section 4 and may include a description of:

Pertinent sections of the joining program could be:

The aforementioned guidance pertains primarily to welded steel pipelines. Joining programs are required for all types of materials and joining methods (i.e., mechanical joints, heat fusion, threaded joints, etc.).

GOAL (s. 17): To ensure the integrity of each welded joint.

This section applies only to welded steel joints.

The OPR-99 requires that all pipeline joints be examined non-destructively. This includes butt welds, fillet welds, and branches. Because the geometry of certain weld types makes inspection by radiography or ultrasonics impractical, the Board issued Order MO-08-2000 on April 28, 2000. A copy of the Order has been included as Appendix A to these Guidance Notes.

The order pertains to all federally regulated pipeline systems, and specifically provides that another appropriate nondestructive examination method may be employed if a radiographic or ultrasonic method is not practicable in the particular circumstances. The order also specifically requires that companies document the methods used and the inspection results, and also clarifies that the use of a visual method as a means of nondestructive examination is not permitted under the terms of the order.

Section 17 and Order MO-08-2000 apply only to the joining of pipe and components performed after the manufacturing processes associated with fabrication of the pipe within the pipe mill and the fabrication of components within the manufacturer's facilities. As a matter of clarification, neither section 17 nor MO-08-2000 of these regulatory instruments apply to the welded assembly of storage tanks forming part of the pipeline system.

Girth welds performed within pipe mills are not considered to be part of the manufacturing process (within the context of the "joining" definition in section 1 of the Regulations), and are therefore subject to the terms of the Order. The Board has issued case-specific exemptions from the 100% nondestructive examination requirement of section 17 and Order MO-08-2000 pursuant to subsections 48(2.1) and 48(2.2) of the Act. These exemptions have been for certain specific auxiliary piping systems associated with stations.

Variations from section 17 and Order MO-08-2000 are permitted only in cases where a project-specific exemption order has been issued by the Board. A request for exemption from the terms of Order MO-08-2000 may include:

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PART 4

CONSTRUCTION

GOAL (s. 18): To ensure a link exists between the company and any third party retained to provide services during construction.

The company and contractor responsibilities for safety and regulatory compliance could be clearly defined at the beginning of a project.

Contractors should be aware of the following:

GOAL (s. 19): To ensure pipelines are constructed in a safe and environmentally responsible manner.

A company should:

GOAL (s. 20): To ensure that detailed safety procedures are developed and available.

A construction safety manual may include:

Companies are encouraged to submit their construction safety manual to the Board at least four weeks prior to anticipated start of construction activities. Practices set out in the construction safety manual should meet applicable federal and provincial occupational health and safety requirements.

The contents of the construction safety manual should be shared and understood by all appropriate parties. The contractor safety manual may be adopted by the company as the project safety manual. In such instances, while the company retains accountability, it may delegate to the contractor the responsibility for safety training throughout the project.

For additional guidance, companies are referred to the Safety Manual for Pipeline Construction in Canada, issued by the Pipe Line Contractors Association of Canada, as amended from time to time.

GOAL (s. 21): To ensure that land affected by pipeline construction is restored to pre-construction conditions to the extent practicable.

Restoration to pre-existing conditions may not be practical under all circumstances. Rights-of-way through forested areas which have been cleared to provide construction access may have to be kept partially cleared to provide access for emergency and maintenance operations.

The success of restoration efforts could be evaluated by a quantitative and qualitative comparison to similar undisturbed areas.

GOAL (s. 22): To minimize and avoid, to the extent practical, any disruption with the use of a utility or road during pipeline construction.

Section 108 of the Act defines a utility as:

For additional requirements concerning crossing matters, companies are directed to the Board's Pipeline Crossing Regulations, and the related guidance document Excavation and Construction Near Pipelines [PDF: 192 KB]. These documents are available from the NEB Web site at www.neb-one.gc.ca.

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PART 5

PRESSURE TESTING

GOAL (s. 23): To ensure an acceptable pressure testing program is developed which, when followed, will assist in proving the integrity of the pipeline.

The pressure testing program must meet the requirements of the applicable standards referred to in section 4 and could include:

The standards referred to within section 4 permit the use of various test fluids under specific conditions. As a general rule, hydrotesting should be performed when pressure testing pipelines. Any proposal to use alternative fluids (such as air) could be based on recognized engineering principles. The sensitivity and reliability of any test using an alternative test fluid could be compared to that of a hydrotest.

GOAL (s. 24): To ensure the issue of hydrostatic test water use and disposal is adequately addressed.

Companies are directed to federal, provincial, and local authorities to determine their specific requirements for water use and disposal. For assistance with developing a plan for water use and disposal when conducting a pressure test, companies are directed to the guidelines for Hydrostatic Test Water Management jointly sponsored by the Canadian Association of Petroleum Producers and the Canadian Energy Pipeline Association, as amended from time to time.

GOAL (s. 25): To ensure that pressure testing is conducted objectively.

GOAL (s. 26): To ensure that as many girth welds as practicable are subjected to the required pressure test.

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PART 6

OPERATION AND MAINTENANCE

GOAL (s. 27): To ensure that Operation and Maintenance Manuals are developed and remain current.

In addition to the information and procedures outlined in the standards referenced in section 4, Operations and Maintenance Manuals may include:

GOAL (s. 28): To ensure persons are aware of applicable information contained in the Operations and Maintenance manuals.

GOAL (s. 29): To ensure that maintenance activities are conducted in a safe manner.

GOAL (s. 30): To ensure that the public and the environment are protected during maintenance activities.

By their very nature, maintenance activities may pose a risk to persons associated with or near the activities as well as to property and the environment.

Everyone at a worksite should be aware of the practices and procedures necessary for their safety as well as the safety of others. At least one person at the worksite should be knowledgeable of potential environmental impacts associated with the maintenance activity and any appropriate management and mitigation measures.

GOAL (s. 31): To ensure that specific safety procedures are in place and are made available to all applicable personnel.

The company documentation could set out:

GOAL (s. 32): To ensure applicable emergency procedures are developed, are current and are on file with the Board.

Information pertaining to the content and use of Security and Emergency Preparedness and Response Programs is contained within an all company letter issued by the Board on 24 April 2002. A copy of this letter is included within the appendices to these Guidance Notes.

GOAL (s. 33): To ensure that all applicable agencies are aware of the contents of the Emergency Procedures Manual.

GOAL (s. 34): To ensure that all applicable parties are prepared to respond to emergency situations.

GOAL (s. 35): To ensure all appropriate parties are aware of the potential emergency situations and their specific roles and responsibilities.

GOAL (s. 36): To ensure that a pipeline system provides safe and efficient service in a secure manner.

GOAL (s. 37): To ensure that pipeline operating parameters are being adequately monitored.

GOAL (s. 38): To ensure appropriate welding procedures are employed which prevent cold cracking in steels with high carbon equivalents.

The potential for delayed hydrogen cracking increases proportionally with the carbon equivalent of the base materials to be joined. This effect may be compounded by the quenching effects of flowing liquids within the pipeline on weld deposits placed on the surface of in-service pipelines. Weld hardness is typically used as one indicator of susceptibility of a weld to cracking. Companies may refer to clause 10.9 of CSA Z662 for additional information on the development of welding procedures and the qualification of welders for in-service welding on liquids (and gas) pipelines.

GOAL (s. 39): To ensure protection of the pipeline, the public, and the environment is achieved during the operation of the pipeline through the development and implementation of a systematic monitoring and surveillance program.

The monitoring and surveillance program shall also meet the requirements of sections 40 and 48 and the applicable standards referred to in section 4.

For the purposes of this section, monitoring may be defined as ongoing observations made on a regular basis in an effort to ensure pipeline operation is within defined normal parameters. Surveillance may be defined as an aspect of monitoring, focused on certain parameters during periods of activity (construction, operation, and abandonment).

A monitoring program may be aimed at the identification of any issues or potential concerns that may compromise the protection of the pipeline, property, persons and the environment (e.g., pipeline integrity or erosion, security, etc.). It may include methods for developing measures to prevent or mitigate the impact of the identified issue(s). The program may also provide for follow-up monitoring of sites where mitigative measures have been undertaken to determine their success or failure, a system for implementing additional mitigative measures as necessary and a feedback system that allows for adaptation of successful mitigation to future pipeline projects.

Surveillance may be a component of the monitoring program that focuses on the activities of the company, its contractors or the public (e.g. ensuring employees use approved safety procedures, contractors are adhering to the environmental requirements of a task, encroachments upon rights-of-way are detected, construction activities are known, etc.).

Monitoring and surveillance programs could include:

Monitoring programs may have specific goals and targets and could include methods for the evaluation and interpretation of collected data.

In addition to the aforementioned, monitoring and surveillance programs may be designed to detect and deter acts of malicious damage (such as sabotage or terrorism) and to provide for timely response in limiting damages associated with such activities. Audits may include an assessment of the vulnerability of the pipeline system to acts of malicious intent (such as sabotage or terrorism).

GOAL (s. 40): To ensure that pipelines are suitable for continued safe, reliable and environmentally responsible service.

An Integrity Management Program may include the following components:

1. Management System

A management system which may include:

2. Records Management System

A records management system which may (in addition to the requirements of the applicable standards referred to in section 4 of the OPR-99 and the requirements of section 56):

3. Condition Monitoring

Condition monitoring is intended to be a comprehensive, proactive, consistent, process where the various components of the process are reviewed on an ongoing basis and updated as necessary. A condition monitoring program may include:

4. Mitigation Program

A mitigation program to ensure integrity could consider:

GOAL (s. 41): To ensure pipeline defects and corrective actions are adequately documented.

Records for defect repairs should include:

In evaluating any defect, consideration may be given to the mechanism or nature of the defect and the possibility of its recurrence under similar conditions. Manufacturing defects may be systemic.

GOAL (s. 42): To ensure public safety is maintained as class location factors increase.

The plan may:

GOAL (s. 43): To ensure adequate levels of safety are maintained for any change of service or increase in Maximum Operating Pressure.

A change of service occurs when the fluids being transported by the pipeline are changed. CSA Z662 defines "service fluid" as "the fluid contained, for the purposes of transportation, in an in-service pipeline system".

To clarify, a change in flow direction or pressure of the pipeline contents does not constitute a change in service. However, if an increase in maximum operating pressure is involved, an application is required.

Any application for a change in service or change in maximum operating pressure (MOP) should meet the minimum requirements as set out in CSA Z662 clauses 10.11.3 and 10.11.4.

GOAL (s. 44): To ensure that deactivation of a pipeline is carried out in a safe and environmentally responsible manner.

Deactivation is defined in section 1 of the Regulations as meaning "to remove temporarily from service". The definition of "pipeline" in the Act applies to the Regulations and therefore this section applies to portions of the pipeline other than line pipe that are not being maintained for peak flow, standby (ready for immediate use), or emergency use. In practice, it is accepted that portions of pipeline, though maintained in a deactivated state, may never be returned to service, may be maintained in a deactivated state for an unspecified length of time, and may ultimately be addressed in an application to abandon the operations of the pipeline.

The Board is currently reviewing the use of the terms deactivation, reactivation and abandonment and may introduce additional terms and requirements for projects where components or portions of the pipeline are permanently removed from operation with no reduction of the pipeline's ability to provide service to shippers.

Deactivation may impose a higher level of risk to the integrity of the pipeline depending on the measures specified for the maintenance of the deactivated pipe.

Deactivation of pipelines may impact upstream and downstream users of the pipeline. Companies proposing deactivations could consider using a consultative approach with stakeholders similar to that which is used for applications made pursuant to section 58 of the Act.

Applications for deactivations pursuant to section 44 could include:

Approvals of applications for deactivation may be subject to conditions and will normally include a requirement for periodic status reporting.

If deactivation results in a suspension of service, an application pursuant to either section 71 or 72 of the Act may also be required.

GOAL (s. 45): To ensure that reactivation of a pipeline is carried out in a safe and environmentally responsible manner.

The contents of the Guidance Note for section 44 may also be applied to applications pursuant to section 45.

GOAL (s. 46): To ensure employees are trained in the applicable safety and operating procedures required to conduct their duties.

The training program may include the following:

Training programs could be directed towards the construction and operation of pipelines in a safe and effective manner and may include provision for the safety of persons and the protection of property and the environment.

GOAL (s. 47): To ensure that safety concerns are addressed.

The safety program could include:

GOAL (s. 48): To ensure that protection of the environment is achieved through the development and implementation of a systematic environmental protection program.

An environmental protection program assists a company in proactively managing environmental issues and systematically tracking its environmental performance. Program components should be developed to anticipate, prevent, and mitigate conditions that have the potential to adversely affect the environment, thereby managing environmental risk throughout the lifecycle of the pipeline.

An environmental protection program should define the responsibilities, practices, procedures, processes, and resources for achieving, reviewing, and maintaining the company's environmental performance.

For guidance in developing an environmental protection program, companies may use the applicable provisions of the ISO 14000 series of Standards as a reference. Consistent with ISO 14000 principles, an environmental protection program should be embraced by employees and driven by senior management.

The components of an environmental protection program could include:

In closing, section 48 should not to be viewed as stand alone, in that an environmental protection program embraces many other aspects of the OPR-99, such as those addressed in sections 21, 24, 27, 39, 46, 53, 54 and 55.

GOAL (s. 49): To identify the Board's authority in ensuring pipelines are operated and maintained in a safe and environmentally responsible manner.

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PART 7

ABANDONMENT

GOAL (s. 50): To ensure abandonment of pipelines is done in a safe, efficient and environmentally responsible manner.

Pursuant to section 74 of the Act, an application is required when a company is seeking leave to "abandon the operation of a pipeline". An application under section 74 of the Act may not be required to remove or retire pipeline components if the action does not result in a discontinuance of service whether or not that service is being used. Projects of this nature could be included as part of any application to modify the pipeline.

Pursuant to the Canadian Environmental Assessment Act (CEAA) and the Law List Regulations made under CEAA, an environmental assessment is required for an application under section 74(1)(d) of the Act. Depending on the nature of an application to remove or retire pipeline components, an environmental assessment pursuant to the CEAA may be required. Regardless of whether the CEAA applies, companies should address environmental considerations in any application.

An application to abandon the operation of a pipeline may include an abandonment plan that is tailored to the individual project. The choice between abandon-in-place or removal of the pipeline may be supported with appropriate assessments and studies. If the pipeline is to be removed, the impact of the removal on the environment should be assessed. If the pipeline is to be abandoned in place, the company should refer to CSA Z662 Clause 10. Environmental, safety and land-use issues may all be considered in the application. The application may also address reclamation of sites where surface facilities have been or will be removed and the approach to any pipeline components that have been maintained in a deactivated state.

The plan may provide the opportunity for stakeholder input, including landowners, occupants, land managers, lessees, municipal agencies and upstream and downstream users. Comments from stakeholders should be considered and, where appropriate, incorporated into the abandonment plan.

For additional information on issues to be addressed when abandoning a pipeline, applicants should refer to the Board's Guidelines for Filing Requirements and to Pipeline Abandonment - A Discussion Paper on Technical and Environmental Issues and Legal Issues Relating to Pipeline Abandonment: A Discussion Paper, as amended from time to time, which are available from the Alberta Energy and Utilities Board and the NEB. These documents may be obtained from the NEB and EUB Web sites at www.neb-one.gc.ca and www.eub.gov.ab.ca respectively. Companies may also refer to the Canadian Council of Ministers of the Environment National Guidelines for Decommissioning Industrial Sites, as amended from time to time, for additional guidance.

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PART 8

REPORTING

GOAL (s. 51): To ensure the Board is aware of potential or actual effects associated with a pipeline crossing a utility or a private road.

In addition to the requirements of section 51, companies should be aware of the contents of the Pipeline Crossing Regulations (Part I and Part II) enacted under section 112 of the Act.

The Board has published a document entitled Excavation and Construction Near Pipelines [PDF: 192 KB], as amended from time to time, which provides guidance to the understanding of and compliance with the Pipeline Crossing Regulations.

GOAL (s. 52): To provide timely and factual reporting of all incidents.

"Incident" is defined in section 1 of the OPR-99. The terms "incident", "accident" and "occurrence" are defined in various sections of the Canada Labour Code , Part II and associated regulations respecting occupational safety and health made pursuant to that act.

Effective 01 September 1999, all incidents, accidents and occurrences (collectively referred to as "incidents" within the following text) as defined within the OPR-99, the Canada Labour Code, Part II and the Transportation Safety Board Regulations should be reported to the Transportation Safety Board (TSB) Occurrence Hot Line 819-997-7887 (collect calls accepted).

Preliminary and detailed incident reports must also be directed to the TSB at the address indicated below. The TSB will forward all applicable reports to the NEB.

Transportation Safety Board of Canada
Place du Centre, 4^th Floor
200 Promenade du Portage
Hull, Quebec
K1A 1K8
E-mail: Roger.Hornsey@tsb.gc.ca (or)
Larry.Gales@tsb.gc.ca
Fax: 819-953-7876

As soon as practicable after becoming aware of an incident (typically within 1 hour), a company should communicate all available factual information to the TSB. To correct any information provided previously or to provide additional information, a company should file a preliminary incident report, which should:

A detailed incident report should correct any information provided in the preliminary incident report and/or provide additional information. The detailed incident report should

A copy of the "Detailed Incident Report" form is included in the appendices to these Guidance Notes.

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PART 9

AUDITS AND INSPECTIONS

GOAL (s. 53): To ensure companies implement an effective system to ensure regulatory compliance.

Audits

The company may have documented procedures for conducting audits of their programs and systems.

The responsibility for managing audit(s) may be assigned to qualified individuals with a knowledge of audit principles and techniques and management skills relevant to the activities being audited.

Audits may be conducted on a regular basis to verify compliance with internal programs and systems designed to achieve compliance with regulatory requirements and may include:

An audit report is required and should document findings and recommendations. The audit report and audit records must be maintained as per section 56 and should be available to NEB auditors upon request.

Audits may be carried out by company employees or third parties provided they are independent of the activities being audited.

Audit programs may include:

Inspections

The company should/may have:

The inspector must be independent of the contractor and must have the authority to shut work down pursuant to paragraph 18(1)(d).

GOAL (s. 54): To ensure qualified inspectors are employed to monitor construction activities.

Inspection may be defined as the surveillance and assessment of compliance of activities associated with the construction of a pipeline. Typical inspection activities include:

Typically, non-destructive examination (NDE) is performed by an independent contractor retained by the company. Often, the company will perform an additional level of inspection by subjecting the results of NDE to a random audit performed by qualified persons. In cases where the contractor performing NDE has been retained by the construction contractor, the company must provide independent inspection of NDE results.

GOAL (s. 55): To ensure companies develop and implement a self audit program to ensure their facilities are operated in a safe, efficient and environmentally responsible manner.

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PART 10

RECORD RETENTION

GOAL: To ensure that a system is implemented for maintaining appropriate records.

GOAL (s. 56): To ensure that a system is implemented for maintaining appropriate records.

Record management systems could outline what, when, and how appropriate records are to be created, stored, retrieved, modified, and removed (when no longer valid) in a timely manner. Companies may maintain other appropriate records at pertinent locations to capture relevant reviews, analyses, and decisions made during the implementation of company programs.

Record management systems could provide sufficient documentation to demonstrate a companies due diligence as well as the adequacy and effectiveness of its programs in ensuring the safety of persons and the protection of property and the environment during the design, construction, operation, and abandonment of its pipelines.

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APPENDICES

• Appendix A - National Energy Board Order MO-08-2000
• Appendix B - Security and Emergency Preparedness and Response Programs - 24 April 2002 [PDF: 257 KB]
• Appendix C - Detailed Incident Report Form [PDF: 88 KB]
• Appendix D - Guidance Notes for the Design, Construction, Operation, and Abandonment of Pressure Vessels - 3 July 2003
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