Interpretation

1 The definitions in this section apply in these Regulations.

abandon

abandon means to permanently cease operation such that the cessation results in the discontinuance of service. (cessation d’exploitation)

Act

Act means the National Energy Board Act. (Loi)

construction

construction includes clearing or grading. (construction)

deactivate

deactivate means to remove temporarily from service. (désactivation)

decommission

decommission means to permanently cease operation such that the cessation does not result in the discontinuance of service. (désaffectation)

environment

environment means the components of the Earth and includes

• (a) air, land and water;

• (b) all layers of the atmosphere;

• (c) all organic and inorganic matter and living organisms; and

• (d) the interacting natural systems that include components referred to in paragraphs (a) to (c). (environnement)

incident

incident means an occurrence that results or could result in a significant adverse effect on property, the environment or the safety of persons. (incident)

operate

operate includes repair, maintain, deactivate, reactivate and decommission. (exploitation)

pressure piping

pressure piping means an assembly of pipes, pipe fittings, valves, safety devices, pumps, compressors and other equipment that is designed for the transport of fluids and is connected to a boiler or pressure vessel. (tuyauterie sous pression)

pressure vessel

pressure vessel means a vessel that is designed for the containment of fluids at internal gauge pressures of more than 103 kPa, has an internal volume of more than 42.5 L and has an internal diameter of more than

• (a) 152 mm, if it is not in water service; or

• (b) 610 mm, if it is in water service. (appareil sous pression)

processing plant

processing plant means a plant used for the processing, extraction or conversion of fluids and all structures located within the boundaries of the plant, including compressors and other structures integral to the transportation of fluids. (usine de traitement)

release

release includes discharge, spray, spill, leak, seep, pour, emit, dump and exhaust. (rejet)

Application

• 2 (1) These Regulations apply in respect of hydrocarbon processing plants that fall within the definition of “pipeline” in section 2 of the Act.

• (2) These Regulations do not apply in respect of

  • (a) well-site facilities; or

  • (b) field facilities.

3 The duties imposed on a company under these Regulations are duties in respect of a processing plant that is designed, constructed, operated or abandoned by the company.

PART 1General

• 4 (1) A company shall ensure that its processing plant is designed, constructed, operated or abandoned in accordance with the provisions of

  • (a) these Regulations; and

  • (b) the Canada Occupational Health and Safety Regulations.

• (2) If there is an inconsistency between these Regulations and the Canada Occupational Health and Safety Regulations, the latter Regulations prevail to the extent of that inconsistency.

5 A company shall ensure that its processing plant is designed, constructed, operated or abandoned in accordance with the designs, specifications, programs, manuals, procedures, measures and plans developed and implemented by the company in accordance with these Regulations.

6 If a company is required by these Regulations to develop a design, specification, program, manual, procedure, measure or plan, the Board may order amendments to it if they are necessary for safety or environmental reasons or in the public interest.

7 The Board may order a company to submit to the Board within a specified period a design, specification, program, manual, procedure, measure, plan or document if

• (a) the company makes an application to the Board under Part III or V of the Act; or

• (b) the Board receives any information that the design, construction, operation or abandonment of the company’s processing plant, or a part of it, is or may cause

  • (i) a detriment to property or to the environment; or

  • (ii) a hazard to the safety of persons.

8 [Repealed, SOR/2013-17, s. 4]

• 9 (1) A company shall develop a program for the design, construction, operation and abandonment of pressure vessels and pressure piping at its processing plant and shall submit the program to the Board prior to implementation.

• (2) [Repealed, SOR/2013-17, s. 5]

10 A company shall develop, implement and maintain quality control and quality assurance programs in respect of the design, construction, operation and abandonment of its processing plant.

11 A company shall conduct a risk analysis to determine the spatial separation of sources of ignition from any possible source of flammable vapours.

12 A company shall ensure that its employees at its processing plant have the knowledge and training appropriate to the tasks to which they are assigned.

13 A company shall develop and implement a safety program to anticipate, prevent, manage and mitigate potentially dangerous conditions and exposure to those conditions during all construction, operations and emergency activities.

14 A company shall develop and implement an environmental protection program to anticipate, prevent, manage and mitigate conditions that have a potential to affect the environment significantly and adversely.

• 15 (1) If a company contracts for the provision of services in respect of the construction, operation or abandonment of its processing plant, the company shall

  • (a) inform the contractor of all conditions or features that are special to the construction, operation or abandonment;

  • (b) inform the contractor of all special safety practices and procedures to be followed as a result of those conditions or features;

  • (c) take all reasonable steps to ensure that the construction, operation or abandonment activities are conducted in accordance with the manuals developed under sections 27 and 30; and

  • (d) authorize a person to halt a construction, operation or abandonment activity in circumstances where, in the person’s judgment, the construction, operation or abandonment activity is not being conducted in accordance with the manuals developed under sections 27 and 30 or is creating a hazard to the safety of anyone at the construction, operation or abandonment site.

• (2) The company shall ensure that the person it authorizes under paragraph (1)(d) has sufficient expertise, knowledge and training to carry out competently the obligations set out in that paragraph.

PART 2Design

16 A company shall develop, implement and maintain detailed designs of its processing plant.

17 A company shall ensure that its processing plant is equipped with a source of emergency power.

18 A company shall ensure that each tank, bullet, sphere or other container that contains any fluid, other than fresh water, is designed, constructed and maintained to restrict and contain fluids and to minimize the risk to the safety of persons and to the environment in the event of an unintentional release.

19 A company shall ensure that equipment that has a source of ignition with which gas at explosive levels may come into contact is not located in the same building as any process vessel or other source of flammable vapour, unless

• (a) air intake flues are located outside the building in an area where gas is unlikely to be present;

• (b) relief valves, burst plates and other sources of flammable fluids are vented from the building or discharged to a flare header, or other location that is environmentally safe;

• (c) a specific risk analysis is conducted to determine what active, reactive or passive safety devices should be installed on that equipment and the company installs those devices; and

• (d) the building is cross-ventilated.

20 A company shall ensure that all process vessels and equipment from which any flammable fluid or toxic substance may be released are safely vented to a flare header or to other locations where the protection of the environment and the safety of persons are maintained.

21 A company shall ensure that all flare headers are equipped with a means by which the flame from the flare header is prevented from entering into piping or a vessel from which the flammable vapour is being released.

22 A company shall ensure that hydrocarbon storage vessels or buildings used for the processing of hydrocarbons are equipped with reliable fire suppression systems appropriate to the risk that the vessels or buildings pose to the safety of persons or to the environment if the vessels or buildings catch fire or come into contact with fire.

23 A company shall equip its processing plant with systems that are appropriate to its buildings or structures and that are designed for the detection of

• (a) explosive and flammable gases;

• (b) toxic or noxious gases; and

• (c) fire, the products of combustion or temperature rise.

24 A company shall equip its processing plant with alarm devices that are

• (a) located where they can be heard or seen from all locations within the plant; and

• (b) designed in a manner that will allow a timely warning of danger to be given to persons in the plant or in the vicinity of the plant in order to permit safe evacuation or actions to control the danger.

25 A company shall ensure that all pressure-relief piping and systems are designed and constructed so that an emergency pressure release does not create a detriment to property or to the environment or a hazard to the safety of persons.

PART 3Construction

26 A company shall, during the construction of its processing plant, take all reasonable steps to ensure that

• (a) the construction activities at its processing plant do not create a detriment to property or to the environment or a hazard to the safety of persons that is greater than the detriment or hazard normally associated with identical activities carried on elsewhere in Canada;

• (b) persons at the construction site are informed of the practices and procedures that are to be followed for their safety and for the protection of the environment; and

• (c) persons on the work site are made fully aware of any escalation of risk when, during the final phases of construction, equipment testing and acceptance procedures begin at the processing plant.

• 27 (1) A company shall develop and implement a construction safety manual and shall submit it to the Board within the time specified by the Board.

• (2) A company shall keep a copy of the construction safety manual or the relevant parts of it at its processing plant, in a location where it is readily accessible to every person engaged in construction at the plant.

PART 4Testing and Examination

• 28 (1) A company shall ensure that each pressure test conducted at its processing plant is performed under its direct supervision or the direct supervision of its agent or mandatary.

• (2) A company shall ensure that the agent or mandatary referred to in subsection (1) is independent of any contractor that conducts the pressure test or any contractor that participated in the fabrication of the work to be tested.

• (3) The company, or the agent or mandatary who supervised the test, shall prepare, date and sign a record of the test.

• 29 (1) A company shall develop and implement a program for the non-destructive examination of welded joints for the purpose of determining their suitability and shall ensure that the program meets the requirements of this section.

• (2) Subject to subsection (3), the program shall include a requirement for the mandatory non-destructive examination of the entire weld volume of all piping welds.

• (3) The program may allow for examination of fewer than all piping welds provided that the program is based on a documented risk analysis.

• (4) If a company proposes to implement a program referred to in subsection (3) or a modification to that program, the company shall submit the program or modification and the risk analysis on which the program or modification is based to the Board prior to implementation.

• (5) Visual examination alone is not an accepted form of non-destructive examination for the purposes of this section.

PART 5Operation

• 30 (1) A company shall

  • (a) develop, implement and regularly review and update operations manuals that provide information and procedures to promote safety and environmental protection in the operation of its processing plant,

  • (b) keep a current copy of the operations manuals or the relevant parts of them at its processing plant, in a location where they are readily accessible to every person engaged in operations at the plant.

• (2) A company shall ensure that the operations manuals contain safe-work procedures for all tasks that present risks to the safety of persons or that may be detrimental to the environment.

• 31 (1) In this section, “safe-work permit” means a written authorization granted by a company that permits an activity to be carried on in or around its processing plant, subject to any conditions on the authorization.

• (2) A company shall develop and implement a safe-work permit system to manage and regulate all work at its processing plant.

32 A company shall ensure that its processing plant is staffed at all times with at least the number of employees set out in the report referred to in section 50.

33 A company shall take all reasonable steps to ensure that

• (a) maintenance activities at its processing plant do not create a detriment to the environment or a hazard to the safety of persons that is greater than the detriment or hazard normally associated with identical activities carried on elsewhere in Canada; and

• (b) persons at a maintenance site are informed of the practices and procedures that are to be followed for their safety and for the protection of the environment.

34 No company shall operate any equipment with a hazard-detection alarm or shutdown device bypassed or rendered inoperable, unless other means are used to achieve an equivalent level of safety.

35 A company shall

• (a) develop, implement and regularly review an emergency procedures manual and, when required by a review, update the manual;

• (b) submit the emergency procedures manual to the Board sufficiently in advance of the initial processing of fluids to allow for a thorough review by the Board; and

• (c) submit to the Board any updates that are made to the manual.

36 A company shall establish and maintain a liaison with the agencies that may be involved in an emergency response activity at its processing plant and shall consult with them in developing and updating the emergency procedures manual.

37 A company shall take all reasonable steps to inform persons who may be associated with an emergency response activity at its processing plant of the practices and procedures to be followed and make available to them the relevant information from the emergency procedures manual.

38 A company shall develop and implement a continuing educational program for the police, fire departments, medical facilities, other appropriate organizations and agencies and the public residing adjacent to its processing plant to inform them of the location of the plant, potential emergency situations involving the plant and the safety procedures to be followed in the event of an emergency.

39 A company shall

• (a) maintain communication facilities for the safe and efficient operation of its processing plant and for emergency situations;

• (b) retain, in accordance with the record retention and handling program referred to in section 55, data recorded at the processing plant for analysis in the event of an incident;

• (c) if practical, clearly mark the open and closed positions of main emergency shutdown valves;

• (d) post along the boundaries of its processing plant signs indicating the name of the company and the telephone number to call in the event of an emergency at the processing plant; and

• (e) post signs warning of potential hazards.

40 A company shall

• (a) operate all hazard-detection devices as part of regular maintenance activities to test whether they are functional; and

• (b) document all tests, repairs and replacement of parts in the hazard-detection devices and retain, in accordance with the records retention and handling program referred to in section 55, the documents.

41 A company shall develop and implement a processing plant integrity program that sets out management systems, records systems and methodologies for monitoring the processes and components and for mitigating identifiable hazards at the plant.

• 42 (1) If a company proposes to deactivate a processing plant or part of one for 12 months or more, has maintained a processing plant or part of one in a deactivated mode for 12 months or more or has not operated a processing plant or part of one for 12 months or more, the company shall notify the Board of that fact.

• (2) The company shall set out in the notification the reasons, and the procedures that were or are to be used, for the activity that is the subject of the notification.

• 43 (1) If a company proposes to reactivate a processing plant or part of one that has been deactivated for 12 months or more, the company shall notify the Board of that fact before the reactivation.

• (2) The company shall set out in the notification the reasons, and the procedures that are to be used, for the reactivation.

• 43.1 (1) If a company proposes to decommission a processing plant or part of one, the company shall submit an application for the decommissioning to the Board.

• (2) The company shall include in the application the reasons, and the procedures that are to be used, for the decommissioning.

• 44 (1) A company shall develop and implement a training program for persons who are directly involved in the operation of its processing plant.

• (2) The company shall ensure that the training program instructs those persons on

  • (a) the safety regulations and procedures applicable to the day-to-day operation of the processing plant;

  • (b) responsible environmental practices and procedures in the day-to-day operation of the processing plant;

  • (c) the proper operating procedures for the equipment that the persons could reasonably be expected to use; and

  • (d) the emergency procedures set out in the manual referred to in section 35 and the operating procedures for all emergency equipment that the persons could reasonably be expected to use.

45 The company shall ensure that all visitors to its processing plant are made familiar with the components of the safety program necessary for their personal safety before they enter the plant.

PART 6Reporting

46 A company shall immediately notify the Board of any incident relating to the construction, operation or abandonment of its processing plant and shall submit to the Board a preliminary incident report as soon as practicable and a detailed incident report as soon as practicable.

47 A company shall

• (a) immediately notify the Board of any hazard that renders or may render its processing plant unsafe to operate; and

• (b) as soon as practicable provide the Board with a report assessing the hazard identified in paragraph (a) including a proposed contingency plan and a description of the cause, duration and potential impacts of the hazard, of repairs to be made and of measures to prevent future failures.

48 A company shall report to the Board, and to the appropriate authorities of the province in which its processing plant is located, any burning of either hydrocarbon gas or a byproduct of the processing of hydrocarbon gas that occurs as a result of an emergency condition.

• 49 (1) In this section, suspend means to interrupt the operation of the whole or a portion of a processing plant due to an unforeseen event or to conduct scheduled maintenance, repairs or replacements.

• (1.1) A company shall, as soon as practicable, notify the Board and the appropriate authorities of the province in which its processing plant is located of any decision made by the company to suspend

  • (a) the operation of the whole plant for a period exceeding 24 hours; or

  • (b) the operation of any portion of the plant for a period exceeding seven days.

• (2) In addition to the notification under subsection (1.1), the company shall provide the following information to the Board and to the appropriate authorities of the province in which its processing plant is located:

  • (a) details of the operations to be suspended;

  • (b) the reason for the suspension;

  • (c) the duration of the suspension; and

  • (d) the effect of the suspension on the throughput of the plant, on the safety of persons or on the environment.

50 A company shall prepare and keep current a report setting out the number of employees necessary to operate its processing plant safely and the competencies required for each position.

51 A company shall, on a regular basis, conduct a balance analysis measuring input quantities and product and emission quantities for its processing plant.

PART 7Audits, Inspections and Record Retention

• 52 (1) A company shall conduct audits and inspections on a regular basis to ensure that its processing plant is designed, constructed, operated or abandoned in compliance with

  • (a) Part III of the Act;

  • (b) Part V of the Act as it relates to the protection of property and the environment and the safety of persons;

  • (c) these Regulations; and

  • (d) the terms and conditions of any certificate or order issued by the Board, as they relate to the protection of property and the environment and the safety of persons.

• (2) The company shall ensure that an audit sets out

  • (a) all cases of non-compliance that have been noted; and

  • (b) any corrective action taken or planned to be taken.

• 53 (1) When a company constructs, operates or abandons a processing plant, the company or its agent or mandatary shall inspect the construction, operation or abandonment to ensure that the requirements of these Regulations are met and that the terms and conditions of any certificate or order issued by the Board are complied with.

• (2) The company shall ensure that an inspection is performed by a person who has sufficient expertise, knowledge and training to perform the inspection competently.

• (3) The company shall ensure that its agent or mandatary is independent of any contractor hired to construct, operate or abandon the processing plant.

54 A company shall annually audit the competencies of all employees in supervisory or operational positions at its processing plant.

55 A company shall develop, implement and maintain a record retention and handling program.

PART 8Consequential Amendment and Coming into Force

Consequential Amendment

56 [Amendment]

Coming Into Force

57 These Regulations come into force on the day on which they are registered.