Community Discussion Presentation Energy East Consultation and Review Part Two January 2015
Preview:
Citation preview
- Slide 1
- Community Discussion Presentation Energy East Consultation and
Review Part Two January 2015
- Slide 2
- Overview 1.Background and Context for Todays Meeting Role of
the OEB TransCanadas proposed Energy East Pipeline Project What the
OEB was asked to Consider (Impacts and Principles) National Energy
Board and OEB Processes 2.OEBs Approach: A Two-Part Process Part
One and Key Observations 3.OEBs Technical Advisors and Preliminary
Assessments 4.Next Steps 2
- Slide 3
- Ontario Energy Board The Ontario Energy Board (OEB) has
regulatory oversight of the Ontario natural gas and electricity
sectors. The OEB is supported by expert staff in the areas of
regulatory economics, finance, energy pricing, accounting,
engineering, law, and environmental issues. In November 2013,
Ontarios Minister of Energy asked the OEB to examine and report on
TransCanadas proposed Energy East Pipeline from an Ontario
perspective. 3
- Slide 4
- TransCanadas proposed Energy East Pipeline On October 30, 2014,
TransCanada filed its application with the National Energy Board to
move forward on its Energy East Pipeline: ~$12B project to
transport crude oil from Western Canada to Eastern Canada (New
Brunswick & Qubec) Conversion of ~3,000 km of natural gas
pipeline Construction of ~1,600 km of new pipeline (~1,600 km
includes 100 km of lateral and interconnections) Construction of
new pump stations Proposed Project in Ontario: Conversion of ~1900+
km of natural gas pipeline Construction of ~100+ km of new pipeline
Construction of ~30 new pump stations 4
- Slide 5
- TransCanadas Proposed Route in Ontario 5
- Slide 6
- The OEB is Not the Decision Maker, The National Energy Board Is
The federal government makes the final decision about whether the
Energy East Proposal can go ahead The National Energy Board is now
in its hearing process. The National Energy Board will review the
application and submit a report to the Federal Government (Cabinet)
that sets out recommendations and conditions regarding the proposed
Energy East Pipeline. 6
- Slide 7
- Impacts the OEB was asked to Consider 1.The impacts on Ontario
natural gas consumers in terms of prices, reliability and access to
supply, especially those consumers living in eastern and northern
Ontario 2.The impacts on the natural environment and pipeline
safety in Ontario 3.The impacts on local communities and Aboriginal
communities in Ontario 4.The short and long term economic impacts
of the project in Ontario 7
- Slide 8
- Six Principles the OEB was asked to Consider 1.Pipelines must
meet the highest available technical standards for public safety
and environmental protection; 2.Pipelines must have world leading
contingency planning and emergency response programs; 3.Proponents
and governments must fulfil their duty to consult obligations with
Aboriginal communities; 4.Local communities must be consulted;
5.Projects should provide demonstrable economic benefits and
opportunities to the people of Ontario, over both the short term
and long term; and 6.Economic and environmental risks and
responsibilities, including remediation, should be borne
exclusively by the pipeline companies, who must also provide
financial assurance demonstrating their capability to respond to
leaks and spills. 8
- Slide 9
- NEB and OEB Processes 9 NEB Review ProcessOEB Consultation
Process GRAPHIC TO BE UPDATED Participation in the OEB community
discussions does not constitute participation in the NEB process
and is not a substitute for any duty to consult with First Nations
and Mtis communities that may rest with the federal government or
others.
- Slide 10
- OEBs Approach: A Two-Part Process Part One Impacts Important to
Ontarians and Aboriginal Communities Public, First Nations &
Mtis, Stakeholders input sought on impacts. Technical Advisors
generate background report to help OEB understand the impacts. Part
Two OEBs Understanding of Impacts Technical Advisors share
preliminary assessment of TransCanadas application in light of Part
One feedback and Ministers six principles. Further feedback sought
from Public, First Nations & Mtis, and Stakeholders. 10
- Slide 11
- Academic Community Agriculture Business Community Associations
Construction Electricity Distributors Environment First Nations
& Mtis Communities Large-Volume Gas Users Landowners Mining
Municipal Government Oil/Gas Industry Organized Labour Public
Health Religious Institutions Residential Gas Consumers Social
Justice Tourism Approximately 2,500 people participated in Part
One, including: 26 Organizations at the Province-Wide Stakeholder
Meeting 780 Participants at the Community Discussions 40 Local
Presentations at the Community Discussions 239 Written Submissions
received 1212 Form Letters/Petitions received 70 Participants at
the First Nations & Mtis Community Discussions Part One 11
- Slide 12
- Key Observations from Part One Community Discussions Adverse
impacts on water and other environmental risks. The importance of
jobs and other economic impacts. A range of confidence in pipeline
safety. Interest in a new national energy strategy and concern
about climate change. Impacts on access to supply and natural gas
prices. Process concerns. 12
- Slide 13
- Key Observations from Part One First Nation and Mtis Treaty and
Aboriginal Rights (including Duty to Consult and Accommodate, and
Traditional Land Use Practices). Pipeline safety and environmental
protection. NEB timeline and impact on meaningful participation.
Proximity of proposed route to wetlands and waterways. Limited
short and long-term benefits. Revenue sharing opportunities.
13
- Slide 14
- The OEBs Technical Advisors The OEB has retained a number of
Technical Advisors to assess TransCanadas application: Natural Gas
Impacts Elenchus, Ziff Energy Economic Impacts Mowat Centre Climate
Change Navius Research Pipeline Safety and Integrity, and Natural
Environment Considerations DNV GL 14
- Slide 15
- Work of OEBs Technical Advisors TransCanada filed its
application on October 30, 2014 and additional technical materials
will be filed with the NEB over the coming months. The OEBs
Technical Advisors are reviewing the application to assess how it
addresses the four areas of potential impacts identified by the
Minister, as well as the potential impacts identified in Part One
by local and Aboriginal communities. The Technical Advisors will
also consider the Ministers six principles in assessing pipeline
projects. The Technical Advisors have begun their work based on the
information that is available to them, and today will share their
preliminary assessment for discussion and feedback. 15
- Slide 16
- Preliminary Assessment Economic Impacts Economic benefits are
expected from the Energy East project but TransCanadas estimates
are likely inflated. Results from TransCanadas economic models only
show benefit of the spending, and do not consider other costs,
broader policy issues, or externalities. Local benefits are
expected but the benefits may be small, especially on the section
in northern Ontario that is converted.
- Slide 17
- Preliminary Assessment Climate Change Impact in Ontario is
likely to be minimal as main new source of emissions is from the
operation of the pipeline. Will likely increase emissions from
well-to-tank (i.e., emissions from oil extraction, oil transport
and petroleum refining) in the rest of Canada, but impact is likely
to be relatively modest. Increase in Canadian GHG emissions from
well-to-tank are mostly offset by a decline in the rest of the
world. Increase in global emissions from final consumption
(tank-to- wheels).
- Slide 18
- Preliminary Assessment Pipeline Safety Impacts 18
- Slide 19
- Overview 1.Background Who We Are What the OEB Asked us to Do
Approach to the Assessment 2.Pipeline Integrity 3.Emergency
Management 19
- Slide 20
- Who We Are DNV GL is a leading technical advisor to the global
oil and gas industry, the worlds leading ship and offshore
classification society, and a leading expert for the energy value
chain including renewables and energy efficiency. Operating in more
than 100 countries, our 16,000 professionals are dedicated to
helping our customers make the world safer, smarter and greener.
20
- Slide 21
- What the OEB Asked Us to Do The OEB retained DNV GL to provide
independent expert advice on the pipeline safety considerations
that relate to the Energy East Pipeline project. Our work focused
on two main aspects of pipeline safety: Pipeline integrity.
Emergency management. 21
- Slide 22
- Approach to Assessment Consider risk: Probability of failure
(Pipeline Integrity). Consequences (Emergency Management). Consider
principles in Ministers letter: Pipelines must meet the highest
technical standards for public safety and environmental protection.
Pipelines must have world leading contingency planning and
emergency response programs. 22
- Slide 23
- Pipeline Integrity Factors that affect probability of a
pipeline failure: Threats (failure modes) to the pipeline. Measures
for managing threats. Relevant elements of Energy East application:
Mechanical properties of the pipe. Pipe manufacturing process.
Coating system. In-line inspection. 23
- Slide 24
- Mechanical Properties of the Pipe The specifications for the
new pipeline meet or exceed the requirements of the national
pipeline standard. The existing pipeline inherently has a higher
resistance to fracture initiation and propagation than would a new
oil pipeline manufactured in accordance with the current pipeline
standard. 24
- Slide 25
- Pipe manufacturing process 100% of the existing pipeline was
manufactured using the double submerged arc welding (DSAW) process.
25
- Slide 26
- Coating System ~ 95% of the existing pipeline is coated with
Fusion Bond Epoxy (FBE). ~ 5% is coated with double wrap
polyethylene coating. 26
- Slide 27
- 1207 27
- Slide 28
- Tape-Coated Sections 28 MLV 58-59 MLV 60-61 MLV 74-75 MLV
76A-77
- Slide 29
- In-line Inspection Modern in-line inspection tools can reliably
detect and size corrosion. Environmentally assisted cracking (SCC)
are more difficult to accurately detect and size. 29
- Slide 30
- Pipeline Integrity Preliminary Assessment: The primary
integrity-related issue for the Energy East pipeline in Ontario is
the potential for stress corrosion cracking on tape-coated
sections. For consideration: Hydrostatically test Line 100-3
between MLV 58 and 59 prior to operation to verify the findings
from the planned crack detection in-line inspections. 30
- Slide 31
- Emergency Management Key factors that affect the consequences
of a pipeline failure: Volume of product released. Location.
Product type. Relevant elements of the Energy East application:
Valve type and placement. Lead detection system. Emergency
response. 31
- Slide 32
- Valve type and placement Preliminary valve locations and types
have been chosen. The Energy East Application indicates that valve
site locations will be confirmed during detailed design, taking
into consideration site-specific factors and feedback from
regulatory authorities, landowners, stakeholders and Aboriginal
communities. 32
- Slide 33
- Leak Detection System If an alarm cannot be conclusively
explained as a non-leak within 10 minutes, a pipeline shutdown is
immediately initiated. Pipeline shutdowns, including pump shutdown
and valve closure, are expected to be completed within 12 minutes
of the initiation of a shutdown. 33
- Slide 34
- Emergency Response TransCanada (in the Application) has
committed to developing emergency response plans (ERP) in
consultation with emergency service agencies and communities along
the route. TransCanada to file the final ERPs with the National
Energy Board and distribute them to applicable emergency service
agencies, as necessary, before Project commissioning. 34
- Slide 35
- Emergency Management For consideration: With respect to valve
placements, demonstrate that potential release volumes are as low
as reasonably practicable. Provide a list of water crossings in
Ontario that will be protected by additional valves. Confirm
conformance with CSA Z662 Annex E. Provide performance
specifications for the leak detection system and provide evidence
that specifications are met or exceeded in operation. 35
- Slide 36
- Emergency Management For consideration: Conduct detailed
analysis of potential spill release and trajectory for critical
locations in Ontario and perform a response capability assessment
to demonstrate that TransCanada will be able to respond effectively
and that impacts can be mitigated to acceptable levels. Demonstrate
financial capability ($1Billion) to respond to a pipeline failure
and remedy the situation. 36
- Slide 37
- Preliminary Assessment Natural Environment Impacts 37
- Slide 38
- Overview The OEB asked DNV GL to review TransCanadas Energy
East Application with respect to impacts on the natural environment
in Ontario. We reviewed about 2,500 pages of the Application
(including the ESA) to assess how well it addressed industry best
practices and environmental issues raised by First Nations and the
general public. 38
- Slide 39
- Approach to Preliminary Assessment The Application was reviewed
in regards to: the six principles stated in the Ministers letter;
the Part One Public Consultation Report by Swerhun Inc.; the Part
One First Nations and Mtis Report by Counsel Public Affairs; the
Background Environmental Considerations Report prepared by TERA;
the NEB Filing Manual; and professional judgement. 39
- Slide 40
- General Observations The Application is incomplete. Additional
information is expected in the New Year. It is premature to assess:
1.the Applications conclusion of no significant adverse
environmental effects; 2.if the Application meets the highest
available technical standards for environmental protection; and
3.if the Application reflects world leading contingency planning.
40
- Slide 41
- General Observations The converted pipeline portion only
addresses 28 new pump stations and roads, 2 trenchless river
crossings and operations/maintenance. No distinction in routing an
oil pipeline vs. a gas pipeline even though the NEB has recognized
the importance of route selection in mitigating environmental
impacts of oil pipelines. 41
- Slide 42
- Impacts on Water The Application is incomplete with respect to
impacts on drinking water. Trout Lake, Rideau River and Private
Well Clusters in Rideau Area and other water wells are recognized
but rest of route not covered. 102 water crossings identified on
104 km new pipeline portion. Alternative route north of St.
Lawrence River has not been examined. Application commits to
provide alternative sources of drinking water in event of a spill.
42
- Slide 43
- Impacts on Water For consideration: Conduct a full-bore rupture
modelling. Map all surface water intakes and springs. Consult with
public and First Nations. Reroute where pipeline may be too close
to sensitive water resources such as in the vicinity of the St.
Lawrence River. Designate significant water crossings, valve
spacing and Emergency Response Plans (ERP). Prepare source water
protection plans and watercourse crossing management plans. 43
- Slide 44
- Impacts on Rideau River and Canal Rideau Canal recognized as
National Historic Park and UNESCO World Heritage Site. Rideau River
recognized as a Canadian Heritage River. Application proposes a
trenchless crossing with a contingency open-cut if the trenchless
technique proves infeasible. 44
- Slide 45
- Impacts on Rideau River and Canal For consideration: Prepare a
detailed Rideau Canal Trenchless Crossing Environmental Protection
Plan complete with open-cut crossing protection measures if the
trenchless crossing methodology proves infeasible. 45
- Slide 46
- Impacts on Fish and Wildlife Application indicates that no
significant effects are anticipated except potential for cumulative
effects on woodland caribou habitat at two pump stations in
Kesagami Range. Application proposes offset measures consistent
with the Woodland Caribou Recovery Program to compensate for
habitat loss but details not provided. 46
- Slide 47
- Impacts on Parks and Natural Areas Converted pipeline crosses 8
Provincial Parks, 4 Conservation Reserves and 4 Conservation Areas
but no details provided. Application addresses wetlands at a high
level but no detail on impacts or mitigation. 47
- Slide 48
- Impacts on Parks and Natural Areas For consideration: Provide
detailed park protection plans. Provide detailed wetland studies
addressing avoidance, function, mitigation, monitoring and
compensation for wetland loss. 48
- Slide 49
- Impacts on Agricultural Resources Application describes and
maps agricultural soils and land use but no detailed Emergency
Response Plans for land based spills are provided. No drain tile
noted on new pipeline segment. 49
- Slide 50
- Impacts on Agricultural Resources For consideration: Develop a
project specific Emergency Response Plan. Map and repair any drain
tiles crossed. 50
- Slide 51
- Other Considerations Complete Traditional Ecological Knowledge
(TEK) and Traditional Land Resource Use (TLRU) studies and
demonstrate how they have been integrated into the ESA and changed
project planning. Study the 125+ km of power lines that serve pump
stations and remotely controlled mainline valves and incorporate
mitigation into this project. 51
- Slide 52
- Next Steps Stakeholder Forum to be held on January 29 & 30,
2015. To provide a broader provincial perspective. Deadline for
Part Two written submissions is Friday, February 6, 2015. The OEB
will Report to the Minister in Spring 2015. 52