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)

change of service

change of service means a change in the type of fluid transported in the pipeline, which necessitates changes to the design requirements in accordance with CSA Z662. (modification du service)

class location

class location means a class location as defined in CSA Z662 and as determined in accordance with that standard. (classe d’emplacement)

component

component means a component as defined in CSA Z662. (élément)

CSA

CSA means the Canadian Standards Association. (CSA)

CSA W178.2

CSA W178.2[Repealed, SOR/2007-50, s. 1]

CSA Z276

CSA Z276 means CSA Standard Z276 entitled Liquefied Natural Gas (LNG) - Production, Storage and Handling, as amended from time to time. (norme CSA Z276)

CSA Z341

CSA Z341 means CSA Standard Z341 entitled Storage of Hydrocarbons in Underground Formations, as amended from time to time. (norme CSA Z341)

CSA Z662

CSA Z662 means CSA Standard Z662 entitled Oil and Gas Pipeline Systems, as amended from time to time. (norme CSA Z662)

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 elements of the Earth and includes

• (a) land, water and air, including all layers of the atmosphere;

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

• (c) the interacting natural systems that include elements referred to in paragraphs (a) and (b). (environnement)

HVP

HVP means high vapour pressure as defined in CSA Z662. (HPV)

incident

incident means an occurrence that results in

• (a) the death of or serious injury to a person;

• (b) a significant adverse effect on the environment;

• (c) an unintended fire or explosion;

• (d) an unintended or uncontained release of LVP hydrocarbons in excess of 1.5 m³;

• (e) an unintended or uncontrolled release of gas or HVP hydrocarbons;

• (f) the operation of a pipeline beyond its design limits as determined under CSA Z662 or CSA Z276 or any operating limits imposed by the Board. (incident)

inspection officer

inspection officer means an inspection officer designated by the Board under section 49 of the Act. (inspecteur)

joining

joining means the joining of pipe and components, performed after the pipe and component manufacturing processes. (assemblage)

LVP

LVP means low vapour pressure as defined in CSA Z662. (BPV)

maximum operating pressure

maximum operating pressure means maximum operating pressure as defined in CSA Z662. (pression maximale de service)

onshore pipeline

onshore pipeline or pipeline means a pipeline intended for the transmission of hydrocarbons that is not in an offshore area. (pipeline terrestre ou pipeline)

operate

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

release

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

serious injury

serious injury includes an injury that results in

• (a) the fracture of a major bone;

• (b) the amputation of a body part;

• (c) the loss of sight in one or both eyes;

• (d) internal hemorrhage;

• (e) third degree burns;

• (f) unconsciousness; or

• (g) the loss of a body part or function of a body part. (blessure grave)

station

station means a facility that is used in connection with the operation of a pipeline and includes a facility for pumping, compression, pressure reduction, storage of hydrocarbons, metering, receiving or delivering. It also includes the land and other works connected with the facility. (station)

storage facility

storage facility means a facility that is constructed for the storage of oil and includes the land and other works connected with the facility. (installation de stockage)

toxic substance

toxic substance means a substance that enters the environment in a quantity or concentration that may

• (a) have an immediate or long-term adverse effect on the environment;

• (b) constitute a danger to the environment on which human life depends; or

• (c) constitute a danger to human life or health. (substance toxique)

Application

2 Subject to sections 2.1 and 3, these Regulations apply in respect of onshore pipelines designed, constructed, operated or abandoned after the coming into force of these Regulations.

2.1 These Regulations do not apply in respect of a hydrocarbon processing plant that is subject to the National Energy Board Processing Plant Regulations.

• 3 (1) Subject to subsection (2), Parts 1 to 5 apply in respect of any construction, maintenance or repairs undertaken with respect to a pipeline.

• (2) Parts 1 to 5 do not apply in respect of a pipeline or any part of a pipeline

  • (a) that exists on the coming into force of these Regulations; or

  • (b) for which an authorization to construct, maintain or repair it was issued on or before the coming into force of these Regulations.

General

• 4 (1) When a company designs, constructs, operates or abandons a pipeline, or contracts for the provision of those services, the company shall ensure that the pipeline is designed, constructed, operated or abandoned in accordance with the applicable provisions of

  • (a) these Regulations;

  • (b) CSA Z276, if the pipeline transports liquefied natural gas;

  • (c) CSA Z341 for underground storage of hydrocarbons; and

  • (d) CSA Z662, if the pipeline transports liquid or gaseous hydrocarbons.

• (2) Without limiting the generality of subsection (1), the company shall ensure that the pipeline is designed, constructed, operated or abandoned in accordance with the design, specifications, programs, manuals, procedures, measures and plans developed and implemented by the company in accordance with these Regulations.

• (3) If there is an inconsistency between these Regulations and a standard referred to in paragraph (1)(b), (c) or (d), these Regulations prevail to the extent of the inconsistency.

5 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 the Board considers it necessary for safety or environmental reasons or if it is in the public interest to do so.

6 A company shall develop and apply a program to monitor changes in respect of designs, specifications, standards or procedures.

7 [Repealed, SOR/2007-50, s. 3]

• 8 (1) Designs, specifications, programs, manuals, procedures, measures or plans for which no standard is set out in these Regulations shall be submitted by a company to the Board for approval.

• (2) The Board shall approve a design, specification, program, manual, procedure, measure or plan if

  • (a) it provides for a level of safety or protection at least equivalent to the level of safety or protection generally provided for by a comparable CSA standard, or by another applicable standard; or

  • (b) in the absence of a comparable CSA or other applicable standard, it provides for a level of safety or protection that is adequate in the circumstances.

PART 1Design of the Pipeline

Detailed Designs

9 A company shall develop detailed designs of the pipeline and submit them to the Board when required to do so.

HVP Pipeline

• 10 (1) When an HVP pipeline is to be situated in a Class 1 location and within 500 m of the right-of-way of a railway or paved road, a company shall develop a documented risk assessment to determine the need for heavier wall design, taking into account such factors as pipeline diameter and operating pressure, HVP fluid characteristics, topography and traffic type and density of the traffic on the railway or paved road.

• (2) A company shall submit a documented risk assessment to the Board when required to do so.

Stations

11 A station shall be

• (a) designed to provide year-round suitable access for personnel;

• (b) designed to prevent unauthorized entry to and unauthorized operation of the station;

• (c) equipped with facilities for the containment, handling and disposal of wastes incidental to the station’s operation; and

• (d) designed so that the noise level during operation meets the noise level requirement approved by the Board pursuant to section 8.

12 A compressor station or pump station shall be equipped with an alternate source of power capable of

• (a) operating the station’s emergency shut-down system;

• (b) operating an emergency lighting system for the safe evacuation of personnel from the station and for other emergency procedures; and

• (c) maintaining any other service essential to the safety of personnel and the public or the protection of the environment.

Storage Facilities

13 A storage facility shall

• (a) be located in an area that is known to be free from flooding, landslides, rockfalls and geological faults;

• (b) be serviced by an all-weather road that gives access to all permanently installed fire-fighting equipment located at or near the storage facility; and

• (c) have a containment area or a system designed to prevent the release or migration of stored products or toxic substances.

PART 2Materials

Specifications

14 A company shall develop specifications for the pipe and components to be used in the pipeline and shall submit them to the Board when required to do so.

Quality Assurance Program

15 A company shall develop a quality assurance program for the purpose of ensuring that the pipe and components to be used in the pipeline meet the specifications referred to in section 14.

PART 3Joining

Joining Program

16 A company shall develop a joining program in respect of the joining of pipe and the components to be used in the pipeline and shall submit it to the Board when required to do so.

Non-destructive Examination

17 When a company conducts joining on a pipeline, the company shall examine the entire circumference of each joint by radiographic or ultrasonic methods.

PART 4Construction

Construction Safety

• 18 (1) If a company contracts for the provision of services in respect of the construction of a pipeline, the company shall

  • (a) inform the contractor of all special conditions associated with the construction;

  • (b) inform the contractor of all special safety practices and procedures necessitated by the conditions or features specific to the construction;

  • (c) take all reasonable steps to ensure that construction activities are conducted in accordance with the manual developed under section 20; and

  • (d) authorize a person to halt a construction activity in circumstances where, in the person’s judgement, the construction activity is not being conducted in accordance with the manual developed under section 20 or is creating a hazard to anyone at the construction site.

• (2) The person referred to in paragraph (1)(d) must have sufficient expertise, knowledge and training to competently carry out the obligations set out in that paragraph.

19 A company shall, during the construction of a pipeline, take all reasonable steps to ensure that

• (a) the construction activities do not create a hazard to the public or the environment; and

• (b) all persons at the construction site who are not involved in the construction of the pipeline are informed of the practices and procedures that are to be followed for their safety.

• 20 (1) A company shall develop a construction safety manual and shall submit it to the Board.

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

Right-of-way and Temporary Work Areas

21 After a pipeline is constructed, the right-of-way and temporary work areas of the pipeline shall be restored to a condition similar to the surrounding environment and consistent with the current land use.

Crossing a Utility or Private Road

22 When a pipeline is constructed across a utility or private road, the company constructing the pipeline shall ensure that there is no undue interference with the use of the utility or road during construction.

PART 5Pressure Testing

Pressure Testing Program

23 Before putting a pipeline into service, a company shall develop a program in respect of pressure tests to be conducted for pipe and components used in its pipeline and shall submit it to the Board when required to do so.

Permits for Use and Disposal of Water

24 Before conducting a pressure test, a company shall obtain any permits required in respect of the use and disposal of water for test purposes.

General Testing Requirements

• 25 (1) Pressure testing shall be performed under the direct supervision of the company or an agent appointed by it.

• (2) The agent referred to in subsection (1) shall be independent of any contractor that carries out the pressure testing program or that constructed the pipeline.

• (3) The company or agent shall date and sign any logs, test charts and other test records that are referred to in CSA Z276 or CSA Z662, as applicable.

26 The number of welds in a pipeline that are not subjected to a pressure test following the installation of fabricated assemblies or pipe segments into the pipeline shall be minimized to the extent that is practicable.

PART 6Operation and Maintenance

Operation and Maintenance Manuals

27 A company shall develop, regularly review and update as required, operation and maintenance manuals that provide information and procedures to promote safety, environmental protection and efficiency in the operation of the pipeline and shall submit them to the Board when required to do so.

28 A company shall inform all persons associated with operation activities on the pipeline of the practices and procedures to be followed and make available to them the relevant portions of the operation and maintenance manuals.

Maintenance Safety

• 29 (1) If a company contracts for the provision of services in respect of the maintenance of a pipeline, the company shall

  • (a) inform the contractor of all special conditions associated with the maintenance;

  • (b) inform the contractor of all special safety practices and procedures necessitated by the conditions or features specific to the maintenance;

  • (c) take all reasonable steps to ensure that maintenance activities are conducted in accordance with the manual developed under section 31; and

  • (d) authorize a person to halt a maintenance activity in circumstances where, in the person’s judgement, the maintenance activity is not being conducted in accordance with the manual developed under section 31 or is creating a hazard to anyone at the maintenance site.

• (2) The person referred to in paragraph (1)(d) must have sufficient expertise, knowledge and training to competently carry out the obligations set out in that paragraph.

30 A company shall, during the maintenance of a pipeline, take all reasonable steps so that

• (a) the maintenance activities do not create a hazard to the public or the environment; and

• (b) all persons at the maintenance site who are not involved in the maintenance of the pipeline are informed of the practices and procedures that are to be followed for their safety or for the protection of the environment.

• 31 (1) A company shall develop a maintenance safety manual and shall submit it to the Board when required to do so.

• (2) The company shall keep a copy of the maintenance safety manual or the relevant parts of it at each maintenance site of the pipeline, in a location where it is accessible to every person engaged in maintenance at the site.

Emergency Procedures Manual

• 32 (1) A company shall develop, regularly review and update as required, an emergency procedures manual.

• (2) A company shall submit the emergency procedures manual and any updates that are made to it to the Board.

33 A company shall establish and maintain liaison with the agencies that may be involved in an emergency response on the pipeline and shall consult with them in developing and updating the emergency procedures manual.

34 A company shall take all reasonable steps to inform all persons who may be associated with an emergency response activity on the pipeline of the practices and procedures to be followed and make available to them the relevant information that is consistent with that which is specified in the emergency procedures manual.

Continuing Education Program

35 A company shall develop a continuing education program for the police, fire departments, medical facilities, other appropriate organizations and agencies and the public residing adjacent to the pipeline to inform them of the location of the pipeline, potential emergency situations involving the pipeline and the safety procedures to be followed in the case of an emergency.

General Operation Requirements

36 A company shall

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

• (b) periodically test instruments and equipment at the pipeline stations to verify their proper and safe operation;

• (c) continually record the suction and discharge pressures of the pipeline pump and compressor stations;

• (d) clearly mark the open and closed positions of sectionalizing valves on any main line;

• (e) clearly mark the open and closed positions and the function of isolating valves, blow-down valves and other major valves within a pipeline station; and

• (f) post along the boundaries of the pipeline stations signage indicating the name of the company and the telephone number to call in the event of an emergency involving the pipeline.

Pipeline Control System

37 A company shall develop and implement a pipeline control system that

• (a) comprises the facilities and procedures used to control and monitor the operation of the pipeline;

• (b) records historical pipeline operation data, messages and alarms for recall; and

• (c) includes a leak detection system that, for oil pipelines, meets the requirements of CSA Z662 and reflects the level of complexity of the pipeline, the pipeline operation and the products transported.

Maintenance Welding

• 38 (1) A company shall not perform welding on a liquid-filled pipeline with a carbon equivalent of 0.50% or greater except if it has been demonstrated that no other practical alternative is available.

• (2) If a company performs welding referred to in subsection (1), the company shall treat the weld as a temporary installation and replace that installation with a permanent one as soon as is practicable.

• (3) Despite subsections (1) and (2) and section 16, if a company intends to perform welding on a liquid-filled pipeline with a carbon equivalent of 0.50% or greater and to treat it as a permanent installation, the company shall submit the welding specifications and procedures and the results of the procedure qualification tests to the Board for approval.

Surveillance and Monitoring

39 A company shall develop a surveillance and monitoring program for the protection of the pipeline, the public and the environment.

Pipeline Integrity

40 A company shall develop a pipeline integrity management program.

• 41 (1) If a company finds a level of defect in excess of that allowed by CSA Z662 on its pipeline, the company shall document the particulars of the defect, its likely cause and the corrective action taken or planned to be taken.

• (2) A company shall submit the documentation referred to in subsection (1) to the Board when required to do so.

Change in Class Location

42 If the class location of a section of a pipeline changes to a higher designation that has a more stringent location factor, the company shall, within six months after the change, submit the proposed plan to deal with the change to the Board.

Change of Service or Increase in Maximum Operating Pressure

43 If a company proposes a change of service or an increase in the maximum operating pressure for the pipeline, the company shall submit an application for the change or increase to the Board.

Deactivation and Reactivation

• 44 (1) If a company proposes to deactivate a pipeline or part of one for 12 months or more, has maintained a pipeline or part of one in a deactivated mode for 12 months or more or has not operated a pipeline or part of one for 12 months or more, the company shall submit an application for deactivation to the Board.

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

• 45 (1) If a company proposes to reactivate a pipeline or part of one that has been deactivated for 12 months or more, the company shall submit an application for the reactivation to the Board.

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

Decommissioning

• 45.1 (1) If a company proposes to decommission a pipeline 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.

Training Program

• 46 (1) A company shall develop and implement a training program for any employee of the company who is directly involved in the operation of the pipeline.

• (2) The training program shall instruct the employee on

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

  • (b) responsible environmental practices and procedures in the day-to-day operations of the pipeline;

  • (c) the procedures for the proper operation of the equipment that the employee could reasonably be expected to use; and

  • (d) the emergency procedures set out in the manual developed under section 32 and the procedures for the operation of all emergency equipment that the employee could reasonably be expected to use.

• (3) The company shall use reasonable efforts to ensure that any employee who attends a training program has a working knowledge of the subject-matter of the program at the end of the program.

Safety Program

47 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, operation and emergency activities.

Environmental Protection Program

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

Board Authority

49 When the protection of property and the environment and the safety of the public and the company’s employees warrant it, the Board may direct a company to test, inspect or assess a pipeline in accordance with CSA standards or any other comparable standards.

PART 7Abandonment

Application for Leave to Abandon

50 A company shall include in an application made under section 74 of the Act for leave to abandon a pipeline or part of one the reasons, and the procedures that are to be used, for the abandonment.

PART 8Reporting

Crossing Reports

51 If a company constructs a pipeline that crosses a utility or private road, the company shall

• (a) immediately notify the Board of the details of unplanned interruption in the operation of the utility or any unplanned closure of the road if the interruption or closure results from the construction of the crossing; and

• (b) on request, submit a crossing report to the Board that sets out

  • (i) the description and location of the utility or road, and

  • (ii) the name of the authority having control over the utility or the name of the owner of the road.

Incident Report

• 52 (1) A company shall immediately notify the Board of any incident relating to the construction, operation or abandonment of its pipeline and shall submit a preliminary and detailed incident report to the Board as soon as is practicable.

• (2) After notification of an incident, an inspection officer may partially or completely relieve a company from the requirement to submit a preliminary and detailed incident report.

PART 9Audits and Inspections

General Compliance

• 53 (1) A company shall conduct an audit and an inspection on a regular basis to ensure its pipeline 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 the public and of the company’s employees;

  • (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 the public and of the company’s employees.

• (2) The audit shall document

  • (a) all non-compliance noted; and

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

Construction Inspection

• 54 (1) When a company constructs a pipeline, the company or an agent independent of any construction contractor retained by the company shall inspect the construction to ensure that it meets the requirements of these Regulations and complies with the terms and conditions of any certificate or order issued by the Board.

• (2) An inspection shall be performed by a person who has sufficient expertise, knowledge and training to competently carry out the inspection.

Pipeline Control System and Safety Program Audits

• 55 (1) A company shall regularly conduct an audit of its

  • (a) pipeline control system developed under section 37;

  • (b) safety program developed under section 47; and

  • (c) environmental protection program developed under section 48.

• (2) The documents prepared following the audit shall include

  • (a) any deficiencies noted; and

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

PART 10Record Retention

Requirements

56 A company shall, in addition to complying with the record retention requirements set out in the CSA standards referred to in section 4, retain

• (a) until at least one month after the date on which they were recorded, the records made under paragraphs 36(c) and 37(b) except for leak detection data, which shall be retained for six months;

• (b) an annual report on the training program developed under section 46 that compares the actual training received by employees to the planned training;

• (c) for at least one year after a pipeline or part of one is placed into service, any information with respect to the quality assurance program developed under section 15;

• (d) for the most recent five years of operation or for the period covered by the two most recent complete audits, whichever period is longer, the records for the audits and inspections required by sections 53 to 55;

• (e) for as long as the installations referred to in section 38 remain on the pipeline, detailed records of those installations, including

  • (i) the location of the installation,

  • (ii) the type of installation,

  • (iii) the date of installation,

  • (iv) the welding procedure used,

  • (v) the carbon equivalent of the pipeline,

  • (vi) the results of the non-destructive testing performed on the installation, and

  • (vii) the planned date of removal of the installation;

• (f) accurate records of the location of all buried facilities, until they are removed; and

• (g) for at least two years after the operation of a pipeline or part of one has been duly abandoned in accordance with all applicable requirements

  • (i) all records available to the company in respect of the procedures used in each stage of the construction of the pipeline or part,

  • (ii) the production reports and mill certificates,

  • (iii) the specifications and name-plate data, if any, of the pumps, compressors, drivers, storage tanks and other major equipment of the pipeline,

  • (iv) the performance curves of all main line pumps and compressors of the pipeline,

  • (v) the reports of all surveillance and monitoring programs developed under section 39,

  • (vi) the documentation referred to in section 41 in respect of pipeline defects, and

  • (vii) the documentation on all incidents reported under section 52.

Repeal

57 [Repeal]

Coming into Force

58 These Regulations come into force on August 1, 1999.