Trans-Northern Pipelines Inc. (TNPI) – Application dated 16 March 2022 pursuant to Condition 4.f of Amending Safety Order AO-001-SO-T217-03-2010

File OF-Surv-Gen-T217-01
1 December 2022

Gail Sharko
Manager, Regulatory & External Affairs
Trans-Northern Pipelines Inc.
109-5305 McCall Way NE
Calgary, AB  T2E 7N7
Email

Dear Gail Sharko:

• Trans-Northern Pipelines Inc. (TNPI)
  Application dated 16 March 2022 pursuant to Condition 4.f of Amending Safety Order AO-001-SO-T217-03-2010, as amended (ASO), section 69 of the Canadian Energy Regulator Act (CER Act), and Part III of the National Energy Board Rules of Practice and Procedure, 1995
  Application for Raising of Restricted Maximum Operating Pressure
  ASO Schedule B, Line 7 – NPS 10 Clarkson Lateral
  
  Before: K. Penney, Presiding Commissioner; T. Grimoldby, Commissioner; W. Jacknife, Commissioner

On 16 March 2022, the Commission of the Canada Energy Regulator received an application from TNPI, pursuant to Condition 4.f of the ASO, to raise the restricted maximum operating pressure (MOP) for Line 7 in Schedule B of the ASO (the NPS 10 Clarkson Lateral) for a return to service at the authorized MOP and to vary the ASO, pursuant to section 69 of the CER Act, to remove that line segment from the ASO.

The restricted MOP is 5793 kPa and the authorized MOP, pursuant to Order MO-60-86, is 8271 kPa (not 8275 kPa, as indicated in the application).

For the reasons set out below, the Commission has decided to approve TNPI’s applications.

Application to raise the restricted MOP, pursuant to Condition 4.f of the ASO

The Commission grants TNPI’s application to raise the restricted MOP for the NPS 10 Clarkson Lateral, on the basis that it has met the ASO Condition 4.f requirements.

At the time of the application, Condition 4.f stated:

• f. TNPI shall, at least 45 days prior to any request to raise the restricted MOP of any pipeline or section of the pipeline, file a request with the Board for approval with information that includes, but is not limited to:
  • i. Information demonstrating that TNPI has implemented Conditions 4.a to 4.e of this Order;
  • ii. Evidence that, as a result of lifting the pressure restriction, the integrity condition on the pipeline or section of pipeline will not be negatively affected within 36 months after the date of the return to service application;
  • iii. An Engineering Assessment prepared in accordance with CSA Z662-15 Clause 10.1 that demonstrates that the pipeline or section of pipeline is safe to operate at its maximum operating pressure. The Engineering Assessment must include, but not be limited to, the following items:
    • 1. A Risk Assessment guided by CAS Z662 Annex B including guidelines for documented reporting by CSA Z662 Annex B Clause B.6;
    • 2. An imperfection assessment including, but not be limited to, pressure cycling, tool validation (Probability of Detection, Probability of Identification, and Sizing Accuracy), representative material properties, defect iteraction, time-to-failure calculations, Safety Factor targets, revised defect growth rates and Probability of Exceedance;
    • 3. Required mitigative, preventive, and monitoring measures; and
    • 4. A schedule for implementation of all mitigation, preventive and monitoring programs identified in Condition 4.f.iii.3.

On 8 June 2022, the Commission varied the wording of Condition 4.f to more clearly reflect its intent. The revised wording did not change the Condition 4.f requirements.

With respect to Condition 4.f.i, the Commission finds that TNPI provided sufficient information to demonstrate that it has implemented Conditions 4.a to 4.e of the ASO as they pertain to the NPS 10 Clarkson Lateral. TNPI provided a summary of the documentation that it submitted prior to this application to meet the requirements of Conditions 4.a to 4.e, which the Commission or its predecessor, the National Energy Board, considered and, where appropriate, approved.

TNPI submitted an engineering assessment to meet the Condition 4.f.iii requirements and stated that it also provides evidence to meet the requirements of Condition 4.f.ii. The engineering assessment concluded that the integrity condition of the NPS 10 Clarkson Lateral will not be negatively affected within 36 months of the date of TNPI’s application. The Commission finds that the engineering assessment submitted by TNPI has met the requirements of Condition 4.f.ii.

The Commission finds that the engineering assessment also meets the requirements of Condition 4.f.iii. The Commission notes that this condition requires the engineering assessment to be prepared in accordance with CAS Z662-15 Clause 10.1 and that a new edition of CSA Z662 came into force on 19 June 2019. The Commission further notes that the engineering assessment used the more stringent requirements of CSA Z662-19 where they exceeded those of CAS Z662-15. The Commission is satisfied that the engineering assessment includes all of the information required by Condition 4.f.iii and demonstrates that the NPS 10 Clarkson Lateral is safe to operate at the authorized MOP identified in Order MO-60-86. The Commission expects TNPI to complete the mitigation of the active hydrotechnical site at the Sheridan Creek crossing (ID 371) as committed to, in 2026.

Application to vary the ASO to remove the NPS 10 Clarkson Lateral from Schedule B, pursuant to section 69 of the CER Act

The Commission grants TNPI’s request to vary the ASO to remove the NPS 10 Clarkson Lateral from Schedule B.

Subsection 69(1) of the CER Act provides that the Commission may review, vary, or rescind any decision or order it makes. There is no automatic right of review; rather, the Commission has a discretionary power to review its decisions, which it must exercise sparingly and with caution.^Footnote 1

The Commission considers applications for review through a two-step process.^Footnote 2 In the first step, the Commission considers whether the applicant has raised a doubt as to the correctness of the decision based on an error of law or jurisdiction, changed circumstances or new facts that have arisen since the close of the original proceeding, or facts that were not placed in evidence in the original proceeding and that were then not discoverable by reasonable diligence.^Footnote 3 The application must also include the nature of the prejudice or damage that has resulted or will result from the decision or order.^Footnote 4 If the Commission finds that the applicant has met the first step, then it will proceed to the second step and review the decision on its merits.

The Commission finds that TNPI has met the first part of the test on the basis that the information TNPI provided to meet the Condition 4.f requirements of the ASO demonstrate a change in circumstances for the NPS 10 Clarkson Lateral relative to those that existed at the time that it was listed in Schedule B.

The Commission further finds that TNPI would be prejudiced if the ASO was not varied to remove the NPS 10 Clarkson Lateral from Schedule B, because Condition 2 of the ASO requires TNPI to operate the pipelines and pipeline segments listed in Schedule B at 70 per cent of their approved MOPs, such that TNPI would be required to operate the NPS 10 Clarkson Lateral at 70 per cent of its newly approved MOP. Given that the Commission has approved TNPI to operate the NPS 10 Clarkson Lateral at the authorized MOP, based on TNPI’s demonstration that it is safe to do so, there is no reason for the ASO to continue to apply to the NPS 10 Clarkson Lateral.

Accordingly, the Commission has decided to grant TNPI’s request to vary the ASO to remove the NPS 10 Clarkson Lateral from Schedule B in attached Amending Order AO-008-SO-T217-03-2010.

Yours sincerely,

Signed by

Ramona Sladic
Secretary of the Commission

Attachment

c.c. Jane Keast, TNPI, Email

• BEFORE the Commission of the CER on 30 November 2022.
• WHEREAS the CER regulates the construction and operation of the TNPI pipeline system;
• AND WHEREAS on 20 September 2016, the National Energy Board issued a letter decision and Amending Safety Order AO-001-SO-T217-03-2010, which it amended on 24 October 2016 and 11 April 2017, and the Commission further amended on 17 July 2020, 8 June 2022, 6 September 2022, and 1 November 2022;
• AND WHEREAS the Commission received an application from TNPI, dated 16 March 2022, to:
  • a) raise the restricted maximum operating pressure (MOP) for the NPS 10 Clarkson Lateral for a return to service at its authorized MOP, in accordance with Condition 4.f of Amending Safety Order AO-001-SO-T217-03-2010, as amended; and
  • b) vary Amending Safety Order AO-001-SO-T217-03-2010, as amended, to remove the NPS 10 Clarkson Lateral, pursuant to section 69 of the CER Act;
• AND WHEREAS on 30 November 2022, the Commission approved TNPI’s application to raise the restricted MOP to 8271 kPa for the NPS 10 Clarkson Lateral;
• AND WHEREAS on 30 November 2022, the Commission granted TNPI’s request to vary Amending Safety Order AO-001-SO-T217-03-2010, as amended;
• AND WHEREAS Amending Safety Order AO-001-SO-T217-03-2010, as amended, remains in force and is further amended by this Amending Order;
• IT IS ORDERED that, pursuant to subsection 69(1) of the CER Act, Order AO-001-SO-T217-03-2010, as amended, is varied by deleting Line 7 in Schedule B to remove the NPS 10 Clarkson Lateral. The varied Schedule B is attached to this Amending Order.

THE COMMISSION OF THE CANADA ENERGY REGULATOR

Signed by

Ramona Sladic
Secretary of the Commission

AO-008-SO-T217-03-2010

SCHEDULE B
Order AO-008-SO-T217-03-2010
Trans-Northern Pipelines Inc.
Variation to Amending Safety Order AO-001-SO-T217-03-2010, as amended

Schedule B – Pressure Reduction of 30% of Approved MOP (as Specified)

Date modified:

2024-03-07