Filing Manual – Guide I – Processing Plants: Deactivation and Reactivation (PPR section 42 and section 43)

Table of Contents

1. Goal
2. I.1 Deactivation
   1. I.1.1 Filing Requirements – Engineering
   2. I.1.2 Filing Requirements – Environment and Socio-economic Assessment
   3. I.1.3 Filing Requirements – Economics
3. I.2 Reactivation
   1. I.2.1 Filing Requirements – Engineering
   2. I.2.2 Filing Requirements – Environment and Socio-economic Assessment
   3. I.2.3 Filing Requirements – Economics
4. Guidance
   1. Environmental and Socio-economic Effects

Sections 42 and 43 of the PPR state:

1. 42 (1) If a company proposes to deactivate its processing plant for 12 months or more, has maintained the processing plant in a deactivated mode for 12 months or more or has not operated the processing plant for 12 months or more, the company shall notify the [CER] of that fact.
2. (2) The company shall set out in the notification the reasons for the deactivation or the cessation of operations and the procedures used or to be used in the deactivation.
3. 43 (1) If a company proposes to reactivate a processing plant that has been deactivated for 12 months or more or to resume operating a processing plant that has not been operated for 12 months or more, the company shall notify the [CER] of that fact before the reactivation or the operation resumes.
4. (2) The company shall set out in the notification the reasons for the reactivation or the resumption of operations and the procedures to be used in the reactivation.

Goal

The application explains the need for the proposed deactivation or reactivation, includes a description of the proposed activities, and identifies all potential impacts.

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I.1 Deactivation

I.1.1 Filing Requirements – Engineering

1. Explain the reasons for the deactivation or the cessation of operations and the procedures used or to be used in the deactivation.

2. Provide the date the processing plant was or will be removed from service.

3. Describe the provisions for the management of change.

4. Describe the general condition of equipment to be deactivated.

5. Describe the means of isolation.

6. Describe the instrumentation status.

7. Provide the lay-up conditions.

8. Describe the inspection and testing requirements during deactivation.

9. Describe the intent of future equipment use, if any.

I.1.2 Filing Requirements – Environment and Socio-economic Assessment

1. Describe how the effects have already been considered in an ESA by the Commission; or

2. If the environmental and socio-economic effects have not been addressed by a previous ESA, provide the filing requirements outlined in s A.2.

I.1.3 Filing Requirements – Economics

1. Provide the necessary economic information as outlined in section A.3.

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I.2 Reactivation

I.2.1 Filing Requirements – Engineering

1. Explain the reasons for the reactivation or the resumption of operations and the procedures to be used in the reactivation.

2. Provide the date the processing plant will be returned to service.

3. Describe the provisions for the management of change.

4. Describe the general condition of equipment to be reactivated.

5. Describe the instrumentation status.

6. Provide the lay-up conditions.

7. Describe the inspection and testing requirements prior to reactivation.

I.2.2 Filing Requirements – Environment and Socio-economic Assessment

1. Describe how the effects have already been considered in an ESA by the Commission; or

2. If the environmental and socio-economic effects have not been addressed by such an ESA, provide the filing requirements outlined in s A.2.

I.2.3 Filing Requirements – Economics

1. Provide the necessary economic information as outlined in section A.3.

Guidance

Deactivation is defined in section 1 of the PPR as meaning “to remove temporarily from service”. In practice, it is accepted that portions of a plant, 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 plant.

Deactivation may impose a higher level of risk to the integrity of the plant, or systems therein, depending on the measures specified for the maintenance of the deactivated systems or plant.

Deactivation of plants, or systems within plants, may impact upstream and downstream users of the plant.

If deactivation results in a suspension of service, an application pursuant to either section 239 or 240 of the CER Act may also be required.

Companies are required to notify the CER of any plans for the deactivation of a plant (or portions thereof) for 12 months or more.

Notification should address all issues arising from the deactivation that relate to the protection of property and the environment as well as the safety of persons.

Environmental and Socio-economic Effects

To address the environmental and socio-economic effects of a deactivation or reactivation that have not been previously assessed, applicants are referred to section A.2. Applicants should carefully review the sections discussing the scoping of the ESA and the level of detail required. Appropriate scoping of the ESA ensures the ESA will focus on relevant issues and concerns, and assists in determining the appropriate level of effort to be used to prepare the ESA.

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