Retlaw Pipeline Integrity Management System - Harvard Energy

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MANUAL NO. ISSUED TO DATE

PIPELINE INTEGRITY MANAGEMENT PLAN

OPX Consulting Inc.

DISCLAIMER 437

The information and data contained in this document has been set forth to be the bestknowledge, information and belief of OPX Consulting Inc.

Although every effort has been made to confirm all such information and data is factual,complete and accurate, OPX Consulting Inc. make no guarantees or warranties whatsoever,whether expressed or implied, with respect to such information or data and accepts noresponsibility for any loss or damage sustained by the use of this information. 446

447

Any use, which a third party makes of this document, any reliance on, or decision to be madebased on it, is the responsibility of such third parties. OPX Consulting Inc. accepts noresponsibility for damages, if any, suffered by any third party as a result of decisions or actionsbased on this document.

HARVARD ENERGY PIPELINE INTEGRITY MANAGEMENT PLAN

TABLE OF CONTENTS

SECTION 1 INTRODUCTION 1

SECTION 2 POLICIES, ORGANIZATION & OBJECTIVES

2.1 Policies 22.2 Organization 42.3 Objectives 62.4 Making Revisions 7

SECTION 3 PROGRAM SCOPE

3.1 Program Scope 8

SECTION 4 RECORDS MANAGEMENT

4.1 Records & Data Management 94.2 Data Management 10

SECTION 5 COMPETENCY AND TRAINING 11

SECTION 6 MANAGEMENT OF CHANGE

6.1 Introduction 136.2 General 146.3 Management of Change Process to be Considered 146.4 Change Identification 156.5 Responsibilities 156.6 Completing a Change/Modification Request Form 176.7 Management of Records 186.8 Discontinuation Procedures 196.9 Abandonment Procedures 20

SECTION 7 INVESTIGATIONS

7.1 General 227.2 Incident Investigation Process 22

SECTION 8 HAZARD IDENTIFICATION

8.1 Hazard Identification and Controls 24

SECTION 9 INVESTIGATIONS

9.1 General 279.2 Risk Analysis Process 279.3 Risk Estimation 279.4 Risk Evaluation 289.5 Documentation 29

SECTION 10 HAZARD MITIGATION OPTIONS

10.1 Hazard Mitigation Options 3010.2 Leak and Break Detection 31


TABLE OF CONTENTS

SECTION 11 INSPECTION, MONITORING & REPAIR

11.1 Inspection, Monitoring & Repair 3311.2 Repair Objectives 3511.3 Pipeline Repair Standard 36

SECTION 12 AUDIT AND CONTINUAL IMPROVEMENT

12.1 Auditing and Continual Improvement 40

APPENDIX

APPENDIX AAPPENDIX B

HARVARD ENERGY INTEGRITY MANAGEMENT PLAN

SECTION 1.0 INTRODUCTION

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1.0 INTRODUCTION

The purpose of the Integrity Management Program (IMP) for Pipelines is to provide safe,environmentally responsible, and reliable pipeline operations.

The Integrity Management Program (IMP) manual was developed by Harvard Energy, by itsmanaging partner Harvard Internation Resources Ltd. (Harvard Energy) to ensure standardizedprocesses, practices, and procedures are implemented when scoping, planning, executing andreviewing pipeline integrity projects.

Integrity projects and activities are essential to establishing and maintaining the structuralintegrity of operating pipelines, which in turn prevents or minimizes unintended releases, spillsor failures which can result in losses to people, business, and the environment.

The contents of this program are applicable to all licensed and regulated pipelines operated byHarvard Energy in any jurisdiction in Canada. Harvard Energy expects that all third-partyoperated pipelines are also operated and managed according to the minimum requirements ofthis program.

The IMP establishes a framework within which integrity and maintenance-based decisions aremade. The detailed procedures and specifications for performing individual tasks are developedand maintained outside of this manual. The following corporate documents are key companiondocuments to this program manual.

1. Safety Management Program – The existing Health, Safety and Environmental policiesgovern best practices for protecting the environment, health, and safety of all people affected byHarvard Energy operations.

2. Pipeline Operations and Maintenance Manual (OM) – This manual is an operator’s referenceguide for best practices for day-to-day operations. The OM outlines minimum requirements foroperations and field activities, and it contains most of the forms which are utilized for integritydocumentation.

3. Safe Work Practices and Procedures – This is part of the Harvard Energy SafetyManagement Program and details specific safe work practices, safe work procedures andlegislated codes of practice that are applicable to Harvard Energy operations.

One of the core elements to managing pipeline integrity is identifying hazards or threats thatcould compromise pipeline structural integrity. This manual sets minimum requirements for datastorage, data integration, and risk assessment strategies that are fundamental to prioritizing andmitigating these hazards. In addition, the manual establishes communication relationships andresponsibilities as they pertain to various levels of management and support staff within HarvardEnergy, and to its contractors and consultants.

This IMP manual was created to meet the minimum requirements of Canadian StandardsAssociation (CSA) Z662 (Latest Edition). However, based on Harvard Energy’s commitment toenvironmental, health and safety protection, it is Harvard Energy’s goal to review this programon an annual basis to determine if program elements are effectively improving pipeline integrityand reducing the number of unintended substance releases.


SECTION 2.0 POLICIES, ORGANIZATION & OBJECTIVES

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2.1 POLICIES

Corporate Integrity Statement

“Harvard Energy will strive to protect the public, the environment, Harvard Energy’s employeesand contractors by maintaining the operational safety of it pipeline infrastructure”

Harvard Energy management acknowledges the importance of this pipeline integritymanagement program in achieving the goals of the corporate integrity mission statement, andas such, they are dedicated to providing the leadership and resources necessary to foster asuccessful IMP.

Corporate Goals and Expectations

The ultimate goal of the IMP is to have incident-free, error-free operations with no negativeimpacts to environment, people, or business. The IMP requires continuous feedback andimprovement of processes and practices that eliminate or mitigate threats or hazards to safeand reliable operations.

Management will participate in the IMP as follows:

1. Communicating and reinforcing the Corporate Integrity Mission statement as well as theSafe Management Practices guiding principles.

2. Providing adequate resources and training to implement the processes and activitiesoutlined in the IMP.

3. Participate in IMP evaluations and audits.



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2.2 ORGANIZATION

Responsibilities

Managing Director, Operations

Ensures the Corporate Mission statement and HSE policies are consistent with the goalsand expectations of this IMP Manual.

Ensures all corporate business planning adheres to the principles and requirementsoutlined in the IMP.

Provides adequate resources to manage, implement and document the IMP. Establishes, reviews, and updates the IMP practices and procedures. Ensures the Pipeline Operations and Maintenance Manual and all other corporate

maintenance standards meet and/or exceed industry requirements.

Contract Engineer

Ensures all operations and maintenance staff are competent and adequately trained tofulfill their duties with respect to the IMP.

Develops and implements contractor and material procurement practices andspecifications for integrity projects and activities.

Prepares annual plans and budgets for integrity activities. Participates in IMP audits and reviews as directed by the Managing Director, Operations. Routinely reviews IMP project documentation to ensure compliance with IMP standards. Ensures Contract Altagas Area Operators stay current with industry training and

technological advancements.

Altagas Contract

Manages integrity contractors and suppliers to ensure their compliance with IMPpractices and procedures.

Generates maintenance requests and work orders for integrity contractors and suppliers. Identifies and communicates integrity risk to the Altagas Area Operators via a Hazard

Identification Worksheet (see forms section) Supplies operations support and resources for all IMP projects. Participates in IMP audits and reviews as directed by the Managing Director, Operations.



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Integrity Competency and Qualifications

Harvard Energy Personnel

Managing Director, Operations

Shall be fully knowledgeable of, and comply with, the requirements set out in theHarvard Energy Pipeline Operations and Maintenance and Safe Management Practicesmanuals.

Shall be fully knowledgeable of and comply with the Harvard Energy Safe WorkPractices and Procedures.

Shall be fully trained and qualified in the Harvard Energy emergency responseprocedures set out in the Harvard Energy Corporate Emergency Response Plan Manual.

Contractor and Consultant Competency and Procurement

Harvard Energy shall pre-qualify all integrity contractors and suppliers, and shall only engagethose who are approved via the contractor management processes. All contractors shall meetthe requirements of the Harvard Energy Contractor HSE Qualification Application. In addition, allintegrity contractors and suppliers shall also have the appropriate technical requirements asstated below.

Corrosion Chemical Providers

The chemical vendor field representative or account manager shall possess extensiveexperience in the selection, application, and performance review of corrosion inhibitors.

Shall qualify their selected chemicals for the applicable operating conditions vialaboratory testing.

Cathodic Protection Service Providers

All annual survey data shall be collected by a NACE CP Level I or higher tester or aperson possessing equivalent industry experience.

All reports and recommendations shall be reviewed and signed by either a registeredprofessional engineer, a certified engineering technologist, or at minimum, a NACE CPLevel II Technician.

Non-destructive Testing Vendors

The field evaluator shall have at least a Canadian General Standards Board (CGSB)Level II designation in the applicable NDT field (radiography or ultrasonics)

In-Line Inspection Vendors

Shall provide detailed safe work procedures on In-Line Inspection tool preparation,launching, and retrieval.

Shall demonstrate a sound knowledge of defect assessment methodology (such asdetermining remaining strength or corroded pipe).



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Shall ensure the final In-Line Inspection report is reviewed and signed by a data analystwith no less than five years of experience in In-Line Inspection data analysis andreporting.

The vendor shall indentify and report all immediate repair features within 45 days ofcompletion of the inspection.

2.3 OBJECTIVES

Integrity Program Key Performance Indicators

As part of the annual program review, Key Performance Indicators (KPI’s) shall be an importantitem to review and assist with continuous improvement of this program. These KPI’s are a directmeasure of system integrity and are also to meet regulatory reporting requirements.

1 Number of internal corrosion leaks / failure.This indicator tracks the cumulative number of internal corrosion leaks or failures that occuron Harvard Energy pipelines.

2 Number of external corrosion leaks / failure.This indicator tracks the cumulative number of external corrosion leaks or failures that occuron Harvard Energy pipelines.

3 Number of cracking indications or leaks / failure.This indicator tracks the cumulative number of environmental cracking leaks or failures thatoccur on Harvard Energy pipelines such as Stress Corrosion Cracking (SCC), and HydrogenInduced Cracking (HIC), etc. For every integrity dig performed, NDE will be performed tocheck for any cracking especially for SCC.

4 Number of operational upset incidents resulting in a pipeline release.This indicator tracks the cumulative number of operational upset incidents resulting in aHarvard Energy pipeline release. Examples of this could be over-pressuring a pipeline,incorrect operating procedures resulting in a leak, etc.

5 Number of construction or material flaws resulting in a release.This indicator tracks the cumulative number of construction or material flaws resulting in aHarvard Energy pipeline release. Examples of this could be hydrotest failure, weld failure,non-metallic joint failure, etc.

6 Number of ground movement incidentsThis indicator tracks the cumulative number of ground movement incidents on HarvardEnergy pipelines. This does not have to result in a failure or release but still should beidentified if soil movement on the ROW or adjacent to ROW.

7 Number of Pipeline Strikes ContactsThis indicator tracks the cumulative number of Harvard Energy pipeline contacts whetherthey are 3rd parties hitting the line or internal strikes.



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8 Number of Corrective Actions identified vs. corrected.This indicator tracks the cumulative number of Harvard Energy pipeline outstandingCorrective Actions vs. signed off Corrective Actions. This KPI is not used for regulatorycompliance but rather to be used internally to see where continuous improvement can beachieved.

2.4 MAKING REVISIONS

Periodic revisions to this manual are issued to the manual holders noted on the manualdistribution list. These revisions include information previously submitted on the revision requestform. Record the revisions received on the revision record form located at the front of themanual.

Revision Request Form

The revision record form included at the front of all pipeline operating manuals will document thereceipt and insertion of all revisions to the Manual. This will provide a written record that theManual contains the most current information.

The revision request form formalizes the process by which the changes required by manualusers are requested. This process provides for changes and updates to the manual to bereviewed, approved and distributed in a consistent and controlled manner. The first step in thisprocess is the submission of the completed form by the Operator to the Area Supervisorresponsible for the Facility or Pipeline.

The Manager then accepts or rejects the requested revision.

If the request is rejected, the Form is returned to the requester with an explanation forthe rejection.

If the request is approved, the Form is forwarded to Corporate Management for furtherprocessing.


SECTION 3.0 PROGRAM SCOPE

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3.1 PROGRAM SCOPE

The pipeline system is operated by Harvard International Resources Ltd. for the transportationof product from Harvard Energy owned wells and facilities. This system is primarily used forHarvard International Resources Ltd. product transfer. The overall system is connected withother facilities, owned and operated by outside parties, for the purpose of processing and sale.

Harvard International Resources Ltd. is responsible for controlling the pipeline systems,including product transfer, receipt, and pump and compressor station operation. FieldOperations and maintenance of the equipment is the responsibility of Harvard InternationalResources Ltd. personnel and contractors which include:

Operation and surveillance of the pipeline system and components Maintenance of the pipeline system and ancillary facilities Fulfillment of regulatory requirements for the safe operation of the pipeline system Operations may also use the SCADA system, as it delivers up-to-date information to

Harvard International Resources Ltd. personnel and is used for both productionaccounting and well/pipeline surveillance and production balance.

Products transported in the pipeline system include crude oil, water and both vapour and liquidgases, all of which may be sweet or sour.

Harvard International Resources Ltd. is dedicated to protecting the health and safety of ouremployees, contractors, and the public and is committed to preserving the quality of theenvironment. These are the responsibilities of all management, staff and contractors.


SECTION 4.0 RECORDS MANAGEMENT

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4.1 RECORDS & DATA MANAGEMENT

Operations and maintenance data is required for the documentation of IMP activities, as well asfor risk assessments or engineering assessments. Some data types, such as project materialsand construction specifications, do not change with time, but permanent records are required toensure the correct data is referenced in all integrity activities. Other data sets, such as regularlyscheduled cathodic protection testing and chemical applications, require historical data-basingso that data trending can be performed.

Types of Data and Records

Maps and Drawings

Identifying and locating the pipeline and major facilities such as pump stations, batteries,compression facilities, water crossings, highways, railways, major utility crossings, block valvesand rectifiers.

Technical Data

Pipe – Locations and lengths for each pipe diameter installed noting wall thickness, grade andspecification, burial depth, field test pressure and the maximum operating pressure.

Components – Locations, types and pressure ratings of components. This includes CriticalBlock Valves, ESD’s, Pressure Switches, PSV’s, Liner Vents, Pigging Facilities, Rectifiers,Corrosion Monitoring Devices, and Risers.

Crossings – Locations and details of crossings of water, highway, railway, pipeline and otherutilities.

Special Designs – Locations and details of special designs and construction methods.

Pressure Testing – Pressure test results on the new pipeline and any retest results.

Licences

The pipeline licence will be maintained on file at the District Office in the Pipeline Manual.

Differential Pipe Settlement

Production Operations shall document observations and measurements taken for areas inwhich differential settlement, soil heaving, or sliding occurs at or near the location of a pipeline.

Repairs

Records of the locations and details of leaks and repairs required will be maintained by theappropriate District Office for the life of the pipeline.


SECTION 4.0 RECORDS MANAGEMENT

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Corrosion Control Programs

Up to date records that verify the operation and effectiveness of the corrosion control programfor the pipe system.

4.2 DATA MANAGEMENT

The following pipeline attribute data relates to physical characteristics of the pipeline which donot change with time and will be kept in permanent records:

Materials specifications (e.g., pipe grade size, wall thickness, coating type, valve type,etc.)

Pipeline route and geography. Construction practices (e.g., water crossings, riser installations, coating installation,

welding procedures).

Performance data for the Harvard Energy pipeline systems, shall include, but not be limited to:

Pressure, flow rate, and temperature data. Maintenance pigging logs. Chemical treatment records. Corrosion monitoring data (e.g., coupons, probes, etc.) CP monitoring and reports. In-Line inspection reports. Non-destructive Testing and dig site evaluations. Personnel training and qualification records. Pipeline repair records.

Performance data files shall contain cumulative data and evaluation sheets for the relative datatype. With every new set of data collected, a data review shall ensure compliance with existingcriteria as well as comparison to historical data. Any non-conformance data shall be flagged andprioritized for a re-assessment or remedial activity. This activity could include data verification,or operational and /or system changes based on the new data findings. For example, if thelatest maintenance pigging report showed abnormal wear to the pig, then additional pig runsmay be scheduled, including gauge plate inspection.


SECTION 5.0 COMPETENCY

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5.0 COMPETENCY AND TRAINING

This section describes the process used to maintain staff competency in the area of pipelineintegrity for Harvard Energy personnel identified in this IMP.

Each area may organize their staff in a manner to combine some functions into one position. Insuch cases, the position shall have the appropriate skills in accordance with the competencyrequirements listed below.

The Altagas Operations Management shall maintain a record of qualifications for those stafftrained to the requirements of this IMP. Such training and records shall be maintained byAltagas.

The area foreman / superintendent shall be familiar with the applicable codes and regulations asthey apply to pipeline operation. Others can provide the technical skills such as the Pipelineintegrity coordinator.

Construction Inspectors, Engineers, Operations staff, foremen, superintendent, managementrepresentatives are required to attend the integrity management training.

The pipeline integrity coordinator requires the knowledge and skills to:

Determine the behaviour of various materials under the expected process conditions, Determine appropriate mitigation methods to reduce or eliminate materials degradations, Determine appropriate monitoring methods to measure the quality of the mitigation

methods and measure the corrosively of the process, Determine appropriate inspection methods to measure the integrity of pipelines and

pipeline equipment Assess pipeline condition for service based on inspection, mitigation and process

monitoring results, and Ensure pipelines are maintained in compliance to codes and regulations.

Requirements

Insurance – Contractors are required to provide a copy of liability insurance with a minimumcoverage of 2 million dollars.

Worker’s Compensation – Contractors are required to provide a copy of their Worker’sCompensation Coverage and their injury rating.

H2S Alive Certification - All employees provided by the contractor must have valid H2Scertification before working on a Harvard Energy facility or ROW.

Personal Protective Equipment – All employees provided by the contractor must have PPEincluding CSA Approved Steel Toed Boots, Hard Hat, Safety Glasses, Fire Retardant Coveralls,Gloves, and Hearing Protection. Employees must also be clean shaven to adhere to respiratoryprotective equipment requirements.


SECTION 5.0 COMPETENCY

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Harvard Energy Orientation – All contractor employees must go through a Harvard EnergySafety Orientation every year prior to performing work on a Harvard Energy facility or ROW.


SECTION 6.0 CHANGE MANAGEMENT (MOC)

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6.1 CHANGE MANAGEMENT

Management of Change (MOC) processes are designed to help mitigate losses from inadvertentdesign/control changes, and/or engineering/administrative changes, and/or operational changes,and/or location changes or rerouting. The intent is to identify the implications of the proposedchange and reduce or eliminate unintended impacts that could lead to injuries, equipment damage,production losses, increased costs, or environmental impact as well as enhancing efficiency andproductivity. The MOC process is intended to ensure that the person(s) with the required expertise(knowledge and experience) review and approve changes before they occur, thereby reducing theimpact to the organization and the risk of an incident. MOC review processes need to addressboth permanent and temporary changes, as well as emergency changes.

This review should focus on:

the operational integrity of equipment and pipelines,

the effect on the safety of personnel, procedures and associated systems,

the impact to the public and the environment,

the cost impact to the company, and

the compliance to applicable regulations and standards.

6.2 GENERAL

Systems and facilities are subject to changes to increase efficiency (reduce costs), improveoperability and safety, accommodate changes due to geological interpretations, accommodatetechnical innovation, implement mechanical improvement or technology changes, and toimplement temporary changes to overcome short term operating or system problems. Any changecan also decrease efficiency, increase costs, impact the public, introduce new hazards orcompromise health, safety and environmental controls, safeguards and asset integrity built into theoriginal scope/design. The MOC process must include personnel with the required expertise toreview the requested changes and identify potential implications and the necessary correctivemeasures to be taken. The MOC process is designed to ensure that the implications of anychange is recognized, documented, reviewed, evaluated and approved prior to implementation.

The MOC process should address:

the health and safety of employees, contractors and the public,

adverse effects to the environment and landowners,

costs, time constraints, rework,

requirements to maintain reliable and efficient operations,

regulatory compliance.

The MOC process should be applied when considering any of the following changes:

change other than exact replacement in kind to equipment; processes, hardware or software, *

change to controlled documentation,

change in personnel or organizational structure,



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change to procedures, practices, standards or policies,

change to operating licenses and permits, legal and regulatory requirements,

change in location, route, etc,

change in equipment configuration, size, type, down hole configuration, etc,

change in operating boundaries or conditions,

or unwanted change to or bypassing safety devices,

change in process conditions or design.

6.3 MANAGEMENT OF CHANGE PROCESS TO BE CONSIDERED:

Technical changes involving;

any change to piping, equipment, or controls,

any change to the material or equipment specifications,

location change, re-routing, etc,

any change of high monetary value or high complexity,

change in equipment configuration, size, or type,

replacement of original equipment manufacturer parts (OEM) with non-OEM parts.

Organizational changes that;

result in a change of roles, responsibilities, authority levels, duplication of authority or poorlydefined authority that could affect the operational integrity of the equipment and safety ofpersonnel,

result in new personnel or personnel transfers that could impact performance of the operationand the health and safety of personnel.

Administrative changes that;

result in a change in policies, operating procedures, standards, reporting requirements orparameters that could affect the operational safety of the equipment,

result in changes to training requirements, additional training or update training in order toprevent impact to the safety of personnel and operational integrity;

result in emergency response requirements or regulatory changes that could impact the health,safety, and environmental performance of the operation.

* “Replacement in Kind” does not require a MOC



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6.4 CHANGE IDENTIFICATION

Any person may identify a need for a change. It must be determined if it is a change and requiresa review of the roles associated with the change management. If it is not a change, normal workprocesses are followed. The type of change must be identified; whether it is a permanent,temporary or an emergency change.

An emergency change would be utilized in situations where it is necessary to immediately mitigatea safety hazard or environmental impact. In most cases, the change will be made immediately inorder to mitigate the emergency; however the change must be followed up with the MOC in atimely manner to ensure the emergency change did not create some other hazard conditions.

6.5 RESPONSIBILITIES

Originator

understands what constitutes a change,

complies with the MOC process,

initiates the MOC process by completing the MOC Request Form,

identifies the type of change/modification (technical, organizational, administrative),

identifies the change/modification classification (emergency, permanent, temporary),

identifies the duration of a temporary change/modification,

completes the Description/Justification (attaches any supporting documentation required),

completes initial cost estimate,

forwards the request form to their Supervisor (one level of management higher),

when change is complete, ensures all information and documentation associated with theMOC is filed appropriately.

Supervisor

completes review/approval section, identifies required personnel/group for review and approvesor rejects,

identifies necessary requirements/considerations from Impact Assessment section,

review’s and provides preliminary approval to proceed with the Impact Assessment afterevaluating the cost and value,

identifies and assigns the appropriate personnel for the Impact Assessment,

when Impact Assessment is complete, forwards package to the next level supervisor forapproval to proceed with the implementation of the change,

ensures additional safe work practices, procedures or training that is required, is documentedand personnel are trained to accommodate the change,

ensures a pre-start-up safety review is completed (if required),

ensures “Resulting Conditions/Corrective Actions Required” items follow-up is complete.



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Impact Assessment Personnel (individuals assigned to conduct specific discipline reviews)

completes the review in 5 working days or less,

ensures all impacts of the change are addressed: (technical, integrity, costs, hazards and riskassessment, legal, health, safety, public, and environmental requirements),

reviews changes that have been requested by personnel to identify if the change affects anyoperational systems already in place,

ensures updates to engineering documents, drawings that have been affected by the change,

ensures that appropriate engineering standards have been applied to the requested changes,

ensures the correct engineering and operating solution(s) are selected to address the change,

ensures revision of applicable operational and maintenance procedures/manuals,

ensures updates or adds maintenance and inspection frequencies to PM Program, as required,

ensures all action items and follow-up identified is documented on the “ResultingConditions/Corrective Actions Required” page,

updates management on changes and implications,

ensures that the change is implemented in a manner that reduces the risk of injury topersonnel, that the cost impact is minimized, and the risk of damage to equipment isminimized,

returns the review results back to the MOC Coordinator for routing.

Superintendent / Manager

ensures all required items of the Impact Assessment have been completed,

ensures the MOC process is followed so that changes made are properly reviewed prior toimplementation and start-up,

reviews the change request, verifies the change is justified, and approves or rejects thechange,

ensures adequate resources are allocated to implement the change,

ensures, where necessary, that a Project Coordinator is assigned to implement the change,

communicates relevant details of the change activities to the appropriate personnel,

ensures that operating and maintenance procedures are revised, where required, toaccommodate the implemented change(s),

ensures that awareness training is conducted for any change that affects procedures oroperational systems,

Project Coordinator (when specifically assigned)

ensures the change is implemented in accordance with the plan and as designed,



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identifies any changes during construction or implementation and ensures that these changesare properly reviewed, documented and approved utilizing “Resulting Conditions/CorrectiveActions Required” page.

MOC Coordinator (should be the tech support person from applicable group, but could default toHSE tech support)

ensures the MOC is tracked and appropriate approvals obtained in accordance with theprocess,

when review process is complete, forwards package to the Superintendent, Manager for finalauthorization to proceed with the change,

ensures all information and documentation associated with the change is filed appropriately.

6.6 COMPLETING A CHANGE/MODIFICATION REQUEST/AUTHORIZATION FORM

The following provides guidance on how to implement the MOC process for changes ormodifications.

The individual or group proposing the change/modification must fill out the "Change/ModificationRequest/Authorization Form" which addresses the reason for the proposed change.

All changes must include an assessment of the implications and a determination of the impactsassociated with the proposed changes. This should include reviewing the potential impact onprocesses, systems, equipment, people, public, environment and documentation that the proposedchange may introduce. An Impact Assessment may be required to identify and address risks thatare present before the proposed change, during the change process, and after the change isimplemented.

Once defined and approved, the work related to the change may be managed through regular workprocesses.

The person requesting a change/modification will complete the “Change/ModificationRequest/Authorization Form” with as much information as possible (i.e. location, area, changerequested by, date, change type, change classification, description/justification, cost estimate,and identifies those needing to review and approve), then forwards it to their immediatesupervisor for review and approval.

Immediate supervisor must review the “Change/Modification Request/Authorization Form” anddetermine if adequate information has been provided and determine/verify who shouldparticipate in the Review/Approval process.

Each of the participants identified in previous steps must review the request and determinewhat Impact Assessment requirements would be required for this particular change.

Note: Further assessments and actions must be carried out for items marked “Yes” inthe required column of the Impact Assessment page.

Identify conditions/corrective actions required; action by; target date; and forward to thoseresponsible for completing the action items.

When the Change/Modification Request/Authorization Form is complete and has beenapproved, the form must be forwarded to the person responsible (sometimes called ProjectCoordinator) for completing the change(s).



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On completion, the person completing the change must identify the actual change(s) made andmust sign off the Change/Modification Request/Authorization Form and return to the original“Requested By” person for filing.

Changes in operations, procedures, site standards, facilities or personnel must be evaluated andmanaged to ensure that safety and environmental risks arising from these changes remain at anacceptable level. Similarly, changes in laws and regulations must be reflected in facilities andoperating practices to ensure ongoing compliance. All changes that are made should be properlyreflected in the appropriate documentation. This can be accomplished by:

1. Thoroughly reviewing and documenting changes to standards, processesand/or equipment.

2. Providing support and training to employees who are affected by the change.3. Reaffirming responsibilities and accountabilities when staff changes occur.4. Identify changes in laws and regulations and reflect those changes in facilities

as required.

6.7 MANAGEMENT OF RECORDS

General

A critical component in the management of Harvard Energy’s pipeline system is the requirementof extensive record keeping and documentation. The existing documents, as well as an on-going system or process for evaluating, updating and improving the records and documentationthat are processed by Harvard Energy are all part of this system.

All activities related to the pipeline maintenance and the integrity management of the pipelinesystem must be extensively documented. They should be kept in such a way that the recordscan be used for tracking, evaluating, and improving the overall performance of the pipelinesystem as well as the Integrity Management Program instituted by Harvard Energy

The responsibility for reviewing and updating the records within the system must be clearlydefined so that changing conditions within the pipeline system are addressed.

Some of the records and documentation needing attention are:

General pipeline records including:

Construction data: such as coatings, bolting, MTR’s and joint inspections, crossing data,pipeline design and conditions

Terrain data: such as topography, soil and backfill types, cover depth

Class location and developments

Testing record such as Cathodic Protection and Pressure tests

Failure and Incident Investigations

Integrity Management Program records including:

Integrity Management Program development, implementation and reviews



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Responsibilities of updating of the records to remain relevant to the Integrity ManagementProgram

Risk Management Program components

Updating and record retrieval

Administrative Documents

Pipeline licensing and Change Management

Regulator review and updates

The records pertaining to the pipeline system must both be kept in an orderly fashion, andavailable upon request to Supervisory and Regulatory personnel.

If a change in ownership is to take place to an individual pipeline or a group of pipelines, it mustbe ensured that all data pertaining to the pipeline or pipelines are transferred in full to thepurchasing company. This includes information gathered on the condition of the pipelines, thecompleted Risk Assessment, and any other data collected under the implementation of theIntegrity Management Plan.

6.8 DISCONTINUATION PROCEDURE

Discontinuing Operation of Pipeline

To discontinue the operation of a pipeline or any part of a pipeline for a short period of time(less than 1 month), consideration should be given to the products corrosivity and theappropriate steps taken. If the product is not corrosive (contains NO water) it may be left in thepipeline, if the product is corrosive then the product must be pigged out. If the pipeline is to bediscontinued for a period (longer than 1 month) the products must be pigged out, and left filledwith an inert gas, or Fresh Water, and an attached I.D. tag stating what remedial work has beenundertaken.

1. Identify pipeline license number, line number & operating status.

2. Calculate displacement volumes.

3. Depressure pipeline as required to sealed tank truck c/w H2S scrubber if pipeline containssour product. Venting will be at the discretion of the onsite Harvard Energy representative.

4. Install medium density foam pig and displace the line with fresh water - in a sourapplication use an H2S scavenger / dewax mix, using a hot oiling unit pumping @ 60degrees Celsius. Displace 1.5X's calculated line volume. Displace fluids into existingfacilities or sealed tank truck. Monitor for LEL's — target levels >5%.

5. Install an aggressive urethane rib type pig and continue displacement with fresh water untilthe line is clean of hydrocarbon and solids.

6. Install a rib type pig and displace with air using a portable air compressor. Displace to aclean (free of hydrocarbon) tank truck or clean portable facility. Monitor for LEL levels -target levels >5%.

7. Displace line with inert gas. Monitor oxygen / LEL levels.



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8. Ensure all pigs have been received and accounted for.

9. Summary - ensure the following:

a. Left filled with Air an inert Gas, Nitrogen being the one of choice,

b. Physically isolated or disconnected from any operating facility.

c. Left in a safe condition.

d. Cathodic Protection MUST be left on line via a jumper wire.

e. Risers have been tagged "AS LEFT".

f. Discontinuement form has been completed and submitted.

g. The applicable Regulatory Agency shall be advised when the work required hasbeen completed.

Refer to area JHA's for send and receiving pigs, complete "Safe Work Agreement" and performprejob safety meeting prior to commencing any work.

DO NOT BATCH WITH CORROSION INHIBITOR.

6.9 ABANDONMENT PROCEDURES

Detailed Pipeline Abandonment Procedure

The following procedure is written for information purposes only and to be used as a suggestedguideline.

Identify pipeline license number, line number & operating status.

Perform line locates and develop site drawing.

Notify local landowners.

Hydrovac all known buried structures as per ground disturbance protocol.

Depressure pipeline as required to sealed tank truck c/w H2S scrubber. Venting will be atthe discretion of the onsite Harvard Energy Ltd representative. No free H2S is to be ventedto atmosphere.

These procedures are mandatory for all pipeline abandonment's.

For oil pipelines.... Hook up tank truck or vacuum truck to one end of pipe and pull a vacuumto attempt to gain communication through pipe.

Install medium density foam pig and displace the line with fresh water - in a sour applicationuses an H2S scavenger / dewax mix, using a hot oiling unit pumping @ 60 degrees Celsius.Displace with a minimum of 1.5x's calculated line volume. Displace fluids into existingfacilities or sealed tank truck. Monitor for LEL's — target levels > 5%.

Install an aggressive urethane rib type pig and continue displacement with fresh water untilthe line is clean of hydrocarbon and solids.



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Install a rib type pig and displace with air using a portable air compressor. Displace to aclean (free of hydrocarbon) tank truck or clean portable facility. Monitor for LEL levels -target levels 0 %.

Ensure all pigs have been received and accounted for.

Note: If unable to recover pigs or attain communication through the pipe the next step is tosegment the pipe by excavation following the above processes until the pipe is clean or thedecision is reached to physically remove the pipe from the ground.

When the pipeline has been abandoned the current procedure is to cap the ends with steelplates. NOTE: Prior to backfilling, attach steel tags at both ends that indicates the licensee,license and line number, other end points, date of abandonment and abandonment medialeft inside the pipeline. Care must be taken to provide detailed as built drawings as well ascompleted pipeline abandonment and discontinuation forms.

NOTE: The only thing allowed to be left in an abandoned pipeline is air, fresh water or inertgas — no corrosion inhibitors are to be left in the pipeline.


SECTION 7.0 INVESTIGATIONS

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7.1 GENERAL

Whenever an incident such as a leak or rupture takes place from a pipeline or a pipelineancillary facility, a Pipeline Incident Investigation must be initiated. The investigation shalldetermine the cause of the failure and put into place measures to prevent the reoccurrence ofsimilar failures, as stated in CSA Z662 Clause 10.2.3 (Latest Edition)

When failures reoccur excessively on a certain pipeline or group of pipelines, mitigationmeasures must be put in place or a pipeline replacement considered

If the investigation fails to provide a definite cause, retesting of the line and a reduction inoperating pressure must be looked at as possible means of reducing failure probability

Refer to Appendix C for Incident Investigation Report

7.2 INCIDENT INVESTIGATION PROCESS

When a pipeline failure occurs, the following elements should be instituted as part of a properIncident Investigation. This allows information to be learned from the incident which can lead tothe institution of practices and procedures to prevent reoccurrences:

Detection of an Incident or a product release

Notify the Area Supervisor of the incident

Area Supervisor or representative travels to the site of the incident

Collection of necessary data as follows:

Location of release (mapping, GPS, and physical topography of the area)

Size and impact of release using a grid drawing

Pipe and product data, weather, and timeline of events

Documentation information:

Photos of area prior to excavation, and the landscape around failure site

Initial photos of excavation, failure area, and soil types

Initial suspected cause of failure (i.e: internal/external corrosion, third party contact)

Operating data at the time of the incident (pressures, temperature of product, weather,grade of right of way)

Photos and forms of exposed pipeline, cut-out area

Photos and inspection form of pipe coating

Collection of samples:

Both contaminated and uncontaminated soil surrounding site

Ground water, contaminated and uncontaminated

Water or product under coating or jacket (if present)

Any solids under coating or inside pipe cut-out (if present)

Corrosion sample from pipe (if present)


SECTION 7.0 INVESTIGATIONS

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Collection of pipe cut-out sample:

Do not touch the pipe surface or the fracture. Leave it as it was found

Protect all pipe fragments found with protective wrap

Record pipeline info on the sample, such as the line number, OD/ID, grade, etc, andkeep with the cut-out or fragment

Complete the cut-out form


SECTION 8.0 HAZARD IDENTIFICATION

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8.1 HAZARD IDENTIFICATION AND CONTROL

Hazards that could result in adverse outcomes on the Harvard Energy pipeline systems areidentified and reported to the Managing Director, Operations via the following processes:

Results or findings from operations or integrity monitoring (e.g., corrosion monitoringresults, ROW patrol report, etc.)

Results from integrity assessments (e.g., In-line inspection findings, pressure testfailures, etc.).

Hazard Identification Worksheet Landowner or third-party communication (e.g., report of planned ROW activity, etc.). Reports from regularly scheduled operations meetings. Results from formal risk assessments.

The methods and data used for hazard identification should take into consideration the primarycauses and sub causes provided in Annex H of CSA Z662 (latest edition) (see figure below)Once an integrity hazard has been identified, Harvard Energy shall monitor for the conditionsthat could lead to the hazard and eliminate or mitigate the condition, or a risk assessment teamshall evaluate the risk and determine the required mitigative action.



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Cause Classification for Pipeline Hazards



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RISK MATRIX


SECTION 9.0 RISK ASSESSMENT

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9.1 GENERAL

Throughout the lifespan of a pipeline or pipeline system, from construction through todecommissioning and abandonment, risk factors are present. These risk factors may includedangers to life and health, dangers to the environment and property, and the potential foreconomic loss. This section of the Pipeline Operations and Maintenance Manual will provide anunderstanding of the risk assessments for both pipelines and pipeline systems, and provide aclear path to identifying the hazards within the pipeline system.

Risk Assessment is a very important part of Harvard Energy’ Integrity Management Plan (IMP).It involves both the Risk Analysis and the Risk Evaluation steps of the pipeline system. RiskAssessment should ultimately begin with a conceptual design and be considered in terms ofoperation, maintenance, monitoring, modifications, testing, and abandonment.

9.2 RISK ANALYSIS PROCESS

The Risk Analysis Process is used within the IMP to identify the potential impact of hazards to apipeline or pipeline system. Through the Risk Analysis, Harvard Energy will be able to determineproblems which may occur during a particular phase in the lifetime of a pipeline or pipelinesystem. A Risk Analysis should include the following elements.

Definition of the objective of the analysis

Reason for the analysis

Defined adverse effects and concerns

Appropriate measures of risks

System description, including;

General description of the pipeline, including purpose, capacity, and location

Dimensions and pipeline materials, coatings and ancillary equipment

Condition of the pipeline, coatings, and ancillary equipment

Operating conditions, such as pressures, temperatures, and service fluids

Physical and geographical surroundings of the pipeline

Physical boundaries of the risk analysis

9.3 RISK ESTIMATION

To reach a Risk Estimation, the result of the Frequency and Consequential Analysis’ are used toproduce a measurement profile of the specific risks. Harvard Energy will to look at the objectivesdefined at the outset of the Risk Analysis process to determine the appropriate method to beused. The methods for expressing Risk Estimation include the following:

Use of a Risk Matrix. This method separates the frequency and consequential analysis, andthe combinations are presented in a two-dimensional matrix of Risk Categories

The Risk Index Method. Influential factors in the frequency and consequential analysis’ areassigned values and mathematically combined to determine the Risk Value



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Probabilistic Risk Analysis Method. The frequency and consequential analysis’ are estimatedquantitatively and mathematically combined to determine the Risk Value

The matrix and index methods provide a relative measurement of risk and may be used toprovide a qualitative or semi-quantitative analysis of risk. Probabilistic Risk Estimates provide anabsolute measure of risk, combining frequencies, probabilities, and consequential estimates.

9.4 RISK EVALUATION

GENERAL

The process of evaluating the findings of the Risk Assessment and the analysis process iscalled the Risk Evaluation. The Risk Evaluation also includes the identification and evaluation ofpossible options available to Harvard Energy for managing the risks.

RISK SIGNIFICANCE

Risk Significance Assessments involve determining both the importance of the estimated levelsof risk to those affected during an incident or hazardous event, and who is responsible for theprotection of the interests of the parties involved in the incident. The significance of theestimated risk is dependent upon the context in which the Risk Assessment is undertaken. Thefollowing factors should be considered when determining the Risk Significance

The possible severity of the consequences associated with the incident

The potential frequency or occurrence of the incident

The benefits provided by the risk source to society and to those potentially affected by theincident

The cost associated with the reduction in the estimated risk level

Guidance in determining the Risk Significance can be found by applying the following elements

Comparing the estimated risk level with other recognized activities and events

Considering national and international precedents established in other industries andreviewing literature on risk acceptance criteria

Referring to in-house experience and guidelines to effectively identify hazardous situations

If there is found to be a significant level of risk involved, the following response is required

A more refined level of risk analysis, to reduce the uncertainty or reservations associated withthe estimations that may have led to an overestimated level of risk

Consideration of options available to reduce the estimated risk level.

OPTIONS ANALYSIS

After the completion of the Risk Evaluation, the process of identifying and analyzing the optionsavailable for effective and available risk reduction strategies can begin. This element is forevaluation purposes where Risk Significance is found to be high. Risk Reduction Strategiesinclude pro-active measures to combat both high frequency of occurrence and the severeconsequential impacts if a hazardous event were to take place.



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The evaluation of the Risk Estimate, when analyzing a base-case scenario, or other scenariosidentified through Option Analysis, lies in the foundation of the decision making process, whichdetermines the appropriate course of action for managing the risk associated with thehazardous events under consideration.

9.5 DOCUMENTATION

GENERAL

The Risk Assessment process should be documented within a Risk Assessment Report, takinginto account both the stated objectives and the persons who will be reading and evaluating thereport.

The contents of the report should address the strengths and limitations of the different riskreduction measures and the possible uncertainties within the Risk Estimates produced by theanalysis.

The extent of the Risk Assessment Report will be dependent upon the objectives and scope ofthe assessment, but must contain the following:

Objectives and scope

System description

Risk analysis methodology

Limitations and assumptions

Hazard Identification results

Frequency analysis and assumptions

Consequential analysis and assumptions

Risk Estimation results

Sensitivity and uncertainty analysis

Minutes of the discussion of results, including analysis problems

Conclusions and recommendations

References of all the sources necessary to support the models and analytical techniquesused

Names and qualifications of personnel participating in the process


SECTION 10.0 HAZARD MITIGATION OPTIONS

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10.1 HAZARD MITIGATION OPTIONS

Mitigation from Improper Design or Materials

If failures, direct examinations, and/or risk assessments identify a high susceptibility tounacceptable design or materials, one or more of the following types of risk mitigation actionsshall be initiated:

In-line inspection of pipeline to determine nature and extent of design and materialissues.

Pressure test of pipeline to identify weld or material flaws.

Internal Corrosion Mitigation

If failures, direct examinations, and/or risk assessments identify a high susceptibility tounacceptable internal corrosion rates, one or more of the following types of risk mitigationactions shall be initiated:

In-line inspection of pipeline to determine nature and extent of internal corrosion. Review of existing pigging and chemical program selection and performance. Assessment of alternative internal corrosion monitoring devices to better assess

corrosion activity. Feasibility study for changing operating conditions to reduce corrosion risk.

External Corrosion Mitigation

If failures, direct examinations, and/or risk assessments identify a high susceptibility toinadequate cathodic protection levels or unacceptable external corrosion rates, one or more ofthe following types of risk mitigation actions shall be initiated:

ECDA studies of pipelines with suspected external coating degradation to determine CPeffectiveness along the length of the pipeline.

In-line inspection of pipeline to determine nature and extent of external corrosiondamage.

Installation of additional test stations or coupons to measure the effectiveness of CPlevels at locations where instant “OFF” readings cannot be measured.

Alternative current interruption technology to better assess polarized CP levels. Upgrading or installation of CP systems to allow for improved current distribution to the

pipelines.

Third-Party Damage Mitigation

If failures, direct examinations, and/or risk assessments determine a high susceptibility to thirdparty damage, one or more of the following types of risk mitigation actions shall be initiated:

Increased frequency of ROW patrolling. Improved signage and ROW visibility via brushing and clearing. Enhanced communications with landowners to identify pipeline locations and to handle

land usage issues.



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Improper Operations Mitigation

If failures or risk assessments identify a high susceptibility to operations deficiencies, one ormore of the following types of risk mitigation actions shall be initiated:

Review operator training and qualification programs. Review standard operating procedures and Pipeline Operations and Maintenance

Manual. Assess operating control equipment (SCADA, ESD) to improve process controls.

Mitigation from External Forces

If routine ROW surveillance identifies any risks associated with ground movement, soil erosion,or river/creek bottom scouring, the following types of risk mitigation activities shall be initiated:

Depth of cover and elevation survey of the affected section of the pipeline. Assessing underground movement using monitoring equipment, such as inclinometers

or strain gauges. Hydrotechnical and/or geotechnical engineering evaluations to determine remedial

action options, which may include:o Pipeline rerouting or replacement using horizontal directional drilling.o Line lowering within the existing right-of-way.o Armoring of approach slopes and banks to mitigate further damage.

10.2 LEAK AND BREAK DETECTION

Pipeline operating companies are required by CSA Z662 (Latest Edition) Clause 10.2.6 to makeperiodic pipeline balance measurements to check system integrity. Both installed devices andoperational procedures must be in place to detect pipeline failures early.

Operations personnel must be diligent in the observation of pipeline and pipeline systemcomponents during field surveillance. Knowledge of normal operating conditions, such assystem pressures, is integral to leak detection. Not all pipeline leaks are noticeable by operatingconditions however. Therefore, during daily rounds, the operator must observe line and leaseconditions that may result in a failure.

Production volume discrepancies must be taken into account daily, since low production for noapparent reason may signify a pipeline leak or rupture.

In the event of a report of a problem or spill from the public or another outside party the operatormust immediately investigate. Refer to section 3.8 of the Operations and Maintenance Manualfor emergency action plan resources.

If a pipeline leak or rupture is detected, the source of the released product must be isolatedimmediately. If there are multiple possibilities, isolate all possible sources and determine thecorrect source after the release is under control.



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Responsibilities

Field Operations shall:

Observe pipeline operating conditions to identify potential pipeline leaks or breaks

Notify Harvard Energy Supervisor upon suspicion of a potential failure

Locate the source of the release, taking immediate action to isolate the release

Notify Harvard Energy Supervisor as to the location and source of the release

Be available to help with coordination and cleanup efforts

Begin information gathering and start a Pipeline Incident Investigation form

Harvard Energy Supervisors shall:

Notify the area authoritative regulators of the release

Designate initial command of the clean up and reclamation process

Initiate a pipeline failure investigation

Oversee or designate the pipeline repair process

Review the results of the investigation and make any necessary changes


SECTION 11.0 INSPECTION, MONITORING & REPAIR

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11.1 INSPECTION, MONITORING & REPAIR

The Supervisor in conjunction with a corrosion technician maintains the corrosion controlprogram. External corrosion control of buried facilities is primarily achieved through the use ofcoatings supported by the use of cathodic protection.

The Supervisor is responsible for the operation and maintenance of cathodic protectionequipment. The Field Operator will be responsible for both the monthly rectifier and the pipe tosoil readings.

The external protection of the pipeline and ancillary facilities is achieved by a system comprisedof an insulated coating and cathodic protection. The performance of this system is assessed byregular monitoring of pipe to soil potentials at selected intervals along the pipeline. From theseresults, conclusions may be drawn concerning the level of cathodic protection being achieved,and by the performance of the coating.

PE and Fibre-Reinforced Pipeline

Although PE and Fibre-Reinforced Pipelines are not subject to degradation due to corrosionfrom metal loss, attention still must be paid to the system as a whole. Though these pipelinesmay not need to be cathodically protected Harvard Energy must evaluate the pipeline tie in pointor area in which the pipeline system changes from composite material to steel material, or viceversa.

This area or system, such as a riser, group header, or jumper line, must still be cathodicallyprotected to prevent external corrosion. The same methods, such as rectifiers or anode bedsmay be used to protect these areas from external corrosion, if required.

Mandatory Monitoring

Mandatory inspections and monitoring that Harvard Energy shall conduct on a regular basis, asoutlined in the corporate Pipeline Operations and Maintenance Manual, include the following:

1. Annual Cathodic Protection Surveys – All licensed pipeline shall be surveyed on an annualbasis to determine the effectiveness of the cathodic protection system. The effectiveness of CPsystems shall be determined by comparing survey results to criteria listed in CGA-OCC-1-2005.Any deficiencies or repairs which are outlined in the annual report and compromise theeffectiveness of the CP system should be addressed within 12 months of discovery.2. Rectifier Monitoring/Maintenance – All rectifiers and critical current sources shall be inspectedat least once every two months for proper operation (as per OCC-1-2005).3. ROW Patrolling/Inspection – Annual ROW inspections shall be conducted on pipelines withwater crossings or unstable ground, or on any pipeline identified as a high-risk pipeline. Thefrequency of ROW inspections is dependent upon operating conditions as per the PipelineOperations and Maintenance Manual. Any issues or items that pose a threat to pipeline integrityshall be addressed within six months of inspection.4. Annual Internal Corrosion Review – Once per calendar year, the internal corrosionsusceptibility of each licensed pipeline shall be reviewed by assessing one or all of the followingdata types:



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Production and Operating Parameters Water and Gas Analysis Corrosion Monitoring Data Mitigation Program Records Inspection and Repair Records

Supplemental Integrity Monitoring

1. Corrosion Monitoring Devices – Pipelines which display proven internal corrosion activity, orare deemed as high-risk to internal corrosion activity, shall be monitored via corrosion coupons,probes, non-destructive testing or other means of assessing pipe wall condition. Data fromnewly installed monitoring devices shall be collected at intervals not exceeding six months untila new collection frequency is determined by historical corrosion rates.2. Water Crossing Inspections – At water crossing locations where Harvard Energy hasidentified possible soil erosion, scour, or slope instability, additional surveys such as depth ofcover and /or hydrotechnical evaluations shall occur within six months of the discovery of thethreat.

General

Standards for all construction projects that require new cathodic protection installations aredetailed and designed by a Corrosion Consultant.

Once each calendar year the pipeline system shall be surveyed to ensure that adequatecathodic protection is being applied to all areas of the system. Harvard Energy uses theservices of a Corrosion Consultant to perform these annual surveys and to recommend anyremedial repairs or additions to the cathodic protection systems. Harvard Energy, along with thecorrosion consultant, will then analyze these reports and produce a program of repairs,replacements, and new installations based on the analysis report. The annual potential surveyconsists of readings taken at every test lead, main line valve, piping elbow, tank, or any otherequipment attached to the system that requires cathodic protection applied to it. Readings arealso taken at all casings, foreign crossings, and insulating fittings between Harvard Energy andforeign operators tie-in points.

Guideline

Adjustive surveys of cathodic protection systems are performed annually, usually in the springwith frost-free ground conditions, and include the following:

Complete inspection of rectifier and ground bed installation for the purpose of determiningoverall condition and efficiency with corrective measures taken as required

Complete inspection of all resident pipe-to-soil meters for the purpose of determiningcondition and accuracy. Repair and recalibrate as required

Rectifier output levels adjusted to predetermined levels and pipe-to-soil potentials measuredat provided pipeline test leads and resident pipe-to-soil meters. Faulty test leads discoveredduring survey are repaired as required. Rectifier output levels are readjusted during pipe-to-soil potential survey to ensure pipe-to-soil potentials are maintained at adequate andbalanced protective levels on all pipelines and in their entirety

All cased road crossings are inspected and measurements taken to determine if contactbetween carrier pipe and casing is evident, and, where there is evidence of contact, correctiveaction is taken as required



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Evidence of foreign interference is investigated and corrective measures implemented

Inspection and repair or replacement of faulty insulating material or fittings as determinedfrom pipe-to-soil potential measurements

Completed and detailed records of all adjustive survey data (repairs and maintenance,measurements, settings, adjustments, etc.) are compiled and recorded for reference

When the pipe to soil potential survey indicates inadequate protection, check at the rectifier unit.The current output of the rectifier should be adjusted

If the current is high and accompanied by low voltage, suspect the pipeline and investigatefor a possible short-circuit to another metal structure.

If the current output is low, with normal or high voltage, suspect the anode ground bed orconnecting cables.

To check the ground bed:

A pipe to soil potential over the ground bed will show a peak potential over every anode that isworking, and low potential over an anode that is not working at all.

Each anode is encased by a cover of coke breeze to enhance the contact between the anodeand the earth. If the earth that surrounds the coke breeze is dried out, it will result in a highresistant connection. To improve the contact between the coke breeze and the soil, moisten thesoil by pouring water into the irrigation pipe that is installed underground along the anodeground bed. The irrigation pipe extends out of the ground at both ends of the ground bed.

If the rectifier and anode bed appear to be performing satisfactorily, the source of the problemcould be the pipeline itself.

Determine if the problem is in a localized area

Investigate any area that has been disturbed or worked on recently. Check the pipelineinsulation if necessary

Compare the recent survey with the previous surveys. If the current requirements are increasingoverall, it is probably due to coating deterioration

11.2 REPAIR OBJECTIVES

General

The objective of repair procedures is to prevent injury or loss of life to workers, employees, andthe public, as well as to prevent any harm to the environment. Setting out clear directionconcerning acceptable work procedures and practices can achieve this.

The integrity of the pipe is essential to the safe operation of the pipeline. To maintain theintegrity of the pipeline, anomalies found on or within the pipe must be evaluated and, ifnecessary, repaired. The main objective of the repair process is to return the pipeline back to itsoriginal integrity or to ensure that the anomaly is left in such a state that the pipeline can safelymaintain operation.

Repairs to the pipeline may be required as a result of several different circumstances, as listedbelow:



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Third party damage

Defects within the pipe during the rolling stage.

Damage incurred during pipe handling and installation

Rolled in inclusions (laminations)

Arc Burns

Internal/External corrosion

Cracks

Dents

Buckles

Gouges

Repairs to the pipeline can be completed in many different ways. The method of repair is basedupon the seriousness of the repair required and the economics associated with the repair.

Note – Sour Facilities

Caution is required when working with products or equipment that may contain varying degrees ofHydrogen Sulphide (H2S). H2S is heavier than air and collects in low places. It is colorless and hasa foul rotten egg odor. Smell alone cannot be relied on to detect the presence of H2S, sinceconcentrations greater than 100 ppm can eliminate the sense of smell and is considered IDLH(Immediately

Dangerous to Life and Health). A Personal H2S Monitor must be used when working within anarea known to contain H2S. SCBA or SABA must be worn when concentrations are greater thanthe allowable limits, of an unknown value, or when sampling in an unfamiliar area.

Refer to Harvard Energy’s HSE Manual for OEL (Occupational Exposure Limits) and procedureswhen working in H2S areas.

It is the responsibility of supervisory personnel to ensure that all workers have the appropriatelevel of training and proper equipment to carry out work conducted within a toxic atmosphere.As well, it is the responsibility of the workers to be familiar with the H2S hazards, and guidelinesput in place to prevent exposure to H2S.

11.3 PIPELINE REPAIR STANDARD

General

When completing repairs on a pipeline, current codes and practices, as well as Regulatorypolicies must be adhered to. This section provides guidance on defect evaluation and describesthe repair methods for the different types of pipeline anomalies. Harvard Energy currentlyrecognizes two (2) standards when evaluating an anomaly for potential repair. These standardsare:

CSA Z662 (Latest Edition), Oil and Gas Pipeline Systems

ASME B31G-1991 R2004, Manual for Determining the Remaining Strength of CorrodedPipelines. (This is a Supplement to ASME B31 Code for Pressure Piping.)



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Corrosion:

Corrosion can be generalized as a loss of pipe wall thickness and can be categorized asgeneral surface corrosion, localized external pitting corrosion, localized internal pitting corrosionor some combination of the above. When evaluating a corrosion anomaly, both of the abovestandards are to be considered.

Before evaluating the corrosion anomaly, the corroded areas shall be thoroughly cleaned, toremove corrosion products, so that their dimensions can be measured accurately. Foranomalies with a maximum depth of 10% or less of the nominal pipe wall thickness, no repair isrequired.

For anomalies with a depth greater than 10% and less than 80% of the nominal wall thicknessof the pipe, an evaluation is required to determine whether a repair is required. The anomalyshall be evaluated in accordance with the criteria in CSA Z662 (Latest Edition), CorrosionImperfections. These criteria will calculate the maximum allowable longitudinal length of thecorroded area. [ASME B31G-1991 R2004 contains the identical criteria to CSA Z662 (LatestEdition) for determining the maximum allowable longitudinal length of the corroded area.]

If the corroded area is greater than the maximum allowable longitudinal length, a safemaximum operating pressure (P) can be calculated using the ASME B31G-1991 R2004standard. According to ASME B31G-1991 R2004, if the established MAOP of the pipelineis equal to or less than P, the corroded area may still be used for service at that MAOP. Ifthe MAOP is greater than P, then either:

A lower MAOP should be established such that it does not exceed P or;

The corroded area must be repaired or replaced

Harvard Energy also makes use of another analysis to determine the remaining strength of thecorroded pipe, as B31G has been proven to be over conservative. This analysis is calledRSTRENG2 and is a modified version of ASME B31G-1991 R2004. RSTRENG2 provides amore accurate calculation of the remaining strength of the corroded pipe.

Note: These procedures should not be used for evaluating the remaining strength of thecorroded girth or longitudinal welds or related heat affected zones, or defectscaused by mechanical damage, such as grooves and gouges.

For anomalies with a depth of 80% or greater of the nominal wall thickness of the pipe,immediate remedial action is necessary to prevent further operational risks. For anomalies ofthis severity, it is Harvard Energy’s policy to replace the corroded section of the pipe.

Gouges, Grooves and Arc Burns:

All types of gouges, grooves, and arc burns shall be considered to be a defect as per CSA Z662(Latest Edition), Gouges, Grooves and Arc Burns. If a defect of this type is located within thepipe, it shall be removed by grinding until the ground area blends smoothly into the adjacentpipe. All repairs must be completed in accordance with CSA Z662 (Latest Edition), GrindingRepairs.

Dents:

A dent is a depression in the pipeline caused by an external loading, producing a visiblecurvature/indentation to the wall of the pipe. A dent is considered smooth if it does not contain astress concentrator (gouges, grooves, cracks, arc burns, etc.). Dents which exceed a depth of 6mm in 101.6 mm OD pipe and smaller, or 6% of the outside diameter of pipe larger than 101.6



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mm OD, shall be considered defects. Pipe containing such defects shall be repaired inaccordance with CSA Z662 (Latest Edition), Dents.

In order to accommodate the smooth passage of internal inspection tools, dents which exceedprescribed limits of the tools shall be removed from the pipeline.

If a smooth dent is located on a mill or field weld and exceeds 6 mm in depth, it is considered adefect and must be repaired in accordance with CSA Z662 (Latest Edition), Dents. HarvardEnergy’s procedure is to replace all dents that affect the curvature of the pipe at the seam or atany girth weld.

Dents Containing Stress Concentrators:

All dents, which contain a stress concentrator, shall be considered a defect. The stressconcentrator shall be removed by grinding until the ground area blends smoothly into theadjacent pipe. Pipe containing such defects shall be repaired in accordance with CSA Z662(Latest Edition), Section 10.8.2.4 - Dents and CSA Z662 (Latest Edition), Grinding Repairs. Ifthe defect is repaired by grinding, magnetic particle and ultrasonic inspections must becompleted to verify that the crack has been completely removed.

Buckles:

A buckle is defined as a localized distortion of the pipe wall, normally resulting from pointloading on the pipe in a location of high bending stresses, and is characterized by creasing ofthe pipe wall. There is a deflection in the pipe axis at the point of buckling.

Buckling to any degree is considered a defect and must be repaired. It is Harvard Energy’sprocedure to replace any buckle, which is found within the pipeline.

Cracks (Non-Leaking):

It is Harvard Energy’s procedure that all pipe body surface cracks are defects. Pipe containingsuch defects shall be repaired in accordance with CSA Z662 (Latest Edition), Pipe Body SurfaceCracks and CSA Z662 (Latest Edition), Grinding Repairs.

Rolled In Inclusions (Laminations):

Rolled in inclusions (laminations) discovered during internal inspection surveys shall beconsidered defects unless determined by an engineering assessment to be acceptable. Theengineering assessment shall include consideration of service history and loading, anticipatedservice conditions, the mechanism of the formation of the inclusion and the material properties.Inclusions considered unacceptable by the engineering assessment shall be removed from thepipeline.

Replacement Pipe:

The failed section of pipe shall be replaced with a section similar or equivalent to that of theexisting pipe. The minimum length of replacement pipe shall be two (2) meters. The wallthickness of the replacement section shall be equal to or greater than that of the failed section.The difference in wall thickness between existing and replacement pipe shall not exceed 1.6mm. The requirements of CSA Z662 shall also be met. Current applicable requirements can befound in Clauses 7.3 and 16.6.3 of CSA Z662.



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Testing requirements for pipeline repairs are as follows:

The replacement section shall be pretested to the same conditions as for a new pipeline:- For pipelines licensed for, or containing any amount, of H2S pressure tested to

1.4 times the MOP.- For pipelines licensed as sweet and not containing any amount of H2S, pressure

tested to 1.25 times the MOP.

Pressure testing shall not be less than one (1) hour in duration. A copy of the test chart andassociated documentation (including a signed affidavit verifying the pressure test) shall be filled.

CSA Z662 dictates additional requirements for pressure testing new pipelines, but these are notapplicable to pre-testing replacement pipe.

Complete the Pipeline Pressure Test Report (Appendix L) and forward to the VP ofOperations.

Visual inspection of the weld for pinholes, weld cap alignment and excessive amount ofweld material.

100% radiography of all repair welds.

Polyethylene Pipelines (P.E.)

In the event of defects within a polyethylene, it is permissible to make permanent repairs to aPE pipeline by performing a cutout of the of the defective portion of the pipeline as a wholecylinder and replacing the cutout portions with pipe or flanges that meet the designrequirements required of the system. Heat fusion shall be used for the joining process.

It is also permissible to perform temporary repairs to a PE system using fully encircling clampsas approved by the manufacturer. However, temporary repairs must be replaced by apermanent repair within one year of the initial repair being made.

JOB PLANNING AND APPROVAL

The Supervisor or a delegate must be involved in all aspects of job planning to ensure the workis carried out in a cost effective, efficient manner.Job planning must be done for all tasks whether they are large or small and should cover allaspects of the work to be done ranging from pre-job meetings to final clean up.Approval shall be obtained before ordering special equipment or specialized personnel.The schedule must include lead-time to order all necessary material and labor required tocomplete the work.A detailed plan must be submitted to the pipeline-engineering group for their consultation if thework involves any changes or work out of the ordinary realm of maintenance or repair work


SECTION 12.0 AUDIT AND CONTINUAL IMPROVEMENT

40

12.1 AUDITING AND CONTINUAL IMPROVEMENT

Evaluation Process

The IMP shall be periodically reviewed and audited to ensure it is meeting its goal of improvingsafe and reliable pipeline operation. Once every year the IMP manual shall be reviewed forcontent, adherence to regulations, and overall program effectiveness. In order to maintain aproactive approach to pipeline integrity, Harvard Energy shall establish performance goals,which the IMP shall meet or exceed. Harvard Energy will also conduct periodic field audits toevaluate the implementation effectiveness of the IMP.

Performance Measures

Performance measures shall consist of internal corporate criteria as well as industry comparisoncriteria. The three types of performance measures are as follows:

1. Direct Integrity Measures – This includes leaks, ruptures, failures, and reportable incidentswhich result in a loss to operations or business.

2. Activity Measures – This includes evaluating preventative or mitigative activities anddetermines the effectiveness of individual program elements. One example would be the totalnumber of detailed water crossing inspections performed per year as a result of ROWsurveillance inspections.

3. Operational Measures – This evaluates the direct impact of the implementation of the IMP onthe pipeline system. This would include reducing internal corrosion rates at corrosion monitoringdevices as a result of improved pigging and chemical treatment programs.

The minimum following performance measures shall be reported to, and reviewed by the VPOperations on an annual basis:

Number of leaks, failures and reportable incidents (per unit length of pipe for industrycomparison).

Number of integrity assessments and length of pipe inspected. Number of immediate repairs completed as a result of integrity plan.

Program Audit

Annual audits shall be conducted on the content, processes, and reference informationcontained in this IMP manual. Audit guidelines can be found in the ERCB document titled“Pipeline Integrity Management Program Assessment Form and Guidelines” The internal auditteam shall, at a minimum consist of the following personnel:

VP Operations Integrity Specialist Area Superintendent / Foreman / Area Engineer HSE Coordinator


SECTION 12.0 AUDIT AND CONTINUAL IMPROVEMENT

41

The audit scope shall include, but not be limited to:

Compare existing program practices to current industry regulations and standards. Verify that personnel training and competency comply with the minimum IMP

requirements. Audit program records to ensure compliance with IMP records and data management

requirements. Compare most recent performance measures to corporate goals.

The audit shall include reviewing at least two integrity projects and ensuring the personneltraining and competency, data records keeping and project documentation meet the minimumrequirements of this manual.

The audit results shall be documented and all deficiencies and corrective actions shall beaddressed via an action plan, which highlights the person responsible and action deadlines.


APPENDICES

PAGE 1

Appendices Pipeline Site Specific Risk Analysis Information

Supplemental Pipeline Information


APPENDIX A

PAGE 1

Appendix A PIPELINE SITE SPECIFIC DATA

Contained within Appendix A are Harvard Energy’s Site specificoverview, terrain data, site access description, pipeline riskanalysis, pipeline data sheets, and pipeline maps.

Due to operational issues, some of the following locations arenon-operational or suspended (discontinued). However, forsite specific overview descriptions, product flow will beassumed as on production.

Pipeline Risk Indicators

Company: Harvard Date: 3/15/2012

Operating Area: Retlaw Facility:

Pipeline From: 2-3-13-18W4 Pipeline To: 3-4-13-18W4

Data CollectedBy:

OPX Consulting Inc. Assessed By:

Results

Corrosion Threat Inherent Risk

Low Moderate High Extreme

X

Flowing ConditionsEstimated

Corrosion:VeryLow

Threat

EstimatedRemaining Life:

>20 Years

.Static/Upset ConditionEstimated

Corrosion:Low Threat

.EstimatedRemaining Life:

< 1 Years

Likelihood Rating Consequence RatingScore: 1.0 Rating: Very Low Score: 1.7 Rating: Very Low

Mitigation

Suggested Mitigation Strategy Based on UnmitigatedCorrosion Rates

.Activity Required for Flowing ConditionsActivity Required for Static

Conditions

Inhibition:Dehydrated pipeline, inhibition may

not be requiredNo supplemental treatment

required

Inspection:Dehydrated pipeline, inspection for

internal corrosion may not berequired

Added inspection required, if theflow is interrupted or if upsets

occur on a regular basis

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Monitoring:Periodic monitoring for change in

operating conditionsNo additional monitoring required

Suggested Inspection Strategy Based on Consequence

Inspection: No supplemental inspection required

Input Data

Operating Conditions Corrosion Rate Contributors

Pressure: 850 kPa Carbon Dioxide: 5.1 %

Temperature: 30 C Hydrogen Sulphide: 0 %

Pipe Diameter: 88.9 mmChloride Ions in

Water:0 ppm

Gas Production: 46 e3m3/d Presence of Sulfur: No Yes/No

Water Production: 0 m3/d Presence of Solids: No Yes/No

HydrocarbonProduction:

0 m3/d Previous Failures: No Yes/No

Pipeline Type: Gas typeMethanol>1:1 in

Water:No Yes/No

Years of Service: 18 years Wall Thickness: 3.18 mm

Consequence & Probability Factors

Risk Tolerance: 6 /11 Water Crossing: No Yes/No

Sensitive Area: No Yes/No Public Exposure: No Yes/No

Comments

Product:

Solids: no Yes

No No Average

Compression at 2-3 for 10-10, 6-9, 6-15, and 16-9.

Previous Failures: No

Length (km.): 8.33

Age: 18 years

GasO.D.: 88.9 W.T.: 3.18

Grade: B Material and Type: Steel 5L

MOP: 7100 kPa Water Crossing: No

Address:

LSD To: 3-4-13-18W4From LSD: 2-3-13-18W4

License #: 6572

Calgary, Alberta

Line #: 1Area: Retlaw

Methanol >1:1 in Water: no

CO2%: 5.1

Presence of Sulpher: no Operating Pressure: 850 kPa

Pipeline Risk Management Data Sheet

Pipeline Information

Temperature: 30 °C H2S (ppm) 0 Chlorides in Water (ppm): 0

Company Name: Harvard International Resources Ltd.

Oil Production: 0 Water Production: 0 m3/dGas Production: 46 e3m3/d

Comments:

Sensitive Area: High Public Exposure Area: Risk Tolerance:

35

012-19 W4M

35

012-19 W4M35

012-19 W4M

35

012-19 W4M35

012-19 W4M

11

013-19 W4M

11

013-19 W4M11

013-19 W4M

11

013-19 W4M11

013-19 W4M

2

013-19 W4M

2

013-19 W4M2

013-19 W4M

2

013-19 W4M2

013-19 W4M

36

012-19 W4M

36

012-19 W4M36

012-19 W4M

36

012-19 W4M36

012-19 W4M

1

013-19 W4M

1

013-19 W4M1

013-19 W4M

1

013-19 W4M1

013-19 W4M

12

013-19 W4M

12

013-19 W4M12

013-19 W4M

12

013-19 W4M12

013-19 W4M

30

012-18 W4M

30

012-18 W4M30

012-18 W4M

30

012-18 W4M30

012-18 W4M

31

012-18 W4M

31

012-18 W4M31

012-18 W4M

31

012-18 W4M31

012-18 W4M

6

013-18 W4M

6

013-18 W4M6

013-18 W4M

6

013-18 W4M6

013-18 W4M

7

013-18 W4M

7

013-18 W4M7

013-18 W4M

7

013-18 W4M7

013-18 W4M

29

012-18 W4M

29

012-18 W4M29

012-18 W4M

29

012-18 W4M29

012-18 W4M

32

012-18 W4M

32

012-18 W4M32

012-18 W4M

32

012-18 W4M32

012-18 W4M

8

013-18 W4M

8

013-18 W4M8

013-18 W4M

8

013-18 W4M8

013-18 W4M

5

013-18 W4M

5

013-18 W4M5

013-18 W4M

5

013-18 W4M5

013-18 W4M

28

012-18 W4M

28

012-18 W4M28

012-18 W4M

28

012-18 W4M28

012-18 W4M

33

012-18 W4M

33

012-18 W4M33

012-18 W4M

33

012-18 W4M33

012-18 W4M

9

013-18 W4M

9

013-18 W4M9

013-18 W4M

9

013-18 W4M9

013-18 W4M

4

013-18 W4M

4

013-18 W4M4

013-18 W4M

4

013-18 W4M4

013-18 W4M

27

012-18 W4M

27

012-18 W4M27

012-18 W4M

27

012-18 W4M27

012-18 W4M

3

013-18 W4M

3

013-18 W4M3

013-18 W4M

3

013-18 W4M3

013-18 W4M

10

013-18 W4M

10

013-18 W4M10

013-18 W4M

10

013-18 W4M10

013-18 W4M

34

012-18 W4M

34

012-18 W4M34

012-18 W4M

34

012-18 W4M34

012-18 W4M

16-30

10-33

14-28

W0/04-06

11-04

S0/01-03

12-29

11-34

11-32

2/11-04

06-33

2/14-28

16-35

09-33

06-32

15-31

2/11-02

2/14-36

05-33

03-36

04-17

2/06-01

11-36

11-01

07-36

10-35

14-31

3/14-36

2/16-30

15-29

16-16

01-01

11-05

08-33

11-05

09-01

14-25 10-27

06-01

06-13

16-27

13-05

09-29

2/06-36

09-30

09-02

2/11-04

06-09

14-30

06-08

10-10

11-11

3/11-36

4/11-04

16-27

02-17

11-07

10-32

16-09

07-01

01-12

05-05

2/10-12

15-28

05-35

04-35

10-25

02-12

08-06

11-02

2/06-08

2/14-01

10-30

15-05

06-12

11-26

15-06

14-01

2/02-12

08-13

2/11-32

10-29

07-12

01-02

16-36

12-32

10-06

F1/03-01

03-01

02-31

14-36

10-12

08-01

16-36

02-03

4/11-04

15-01

09-27

16-06

02-06

10-01

02-01

3/14-28

12-02

11-35

06-36

16-10

2/11-36

16-12

3/11-04

06-34

High Pressure Pipelines and Wells current to February 29, 2012 *** Low Pressure Pipelines current to November 1, 2005

6572 Line 1

N





Data CollectedBy:


Results



X


Corrosion:VeryLow

Threat


10 - 12 Years


Corrosion:VeryLow

Threat


10 - 12 Years

Likelihood Rating Consequence RatingScore: 3.0 Rating: Low Score: 1.7 Rating: Very Low

Mitigation



Conditions

Inhibition: No inhibition requiredNo supplemental treatment

required

Inspection:Inspect if operating conditions

changeNo supplemental inspection

required








Input Data





Water:0 ppm

Gas Production: 4.5 e3m3/d Presence of Sulfur: No Yes/No

Water Production: 0.01 m3/d Presence of Solids: No Yes/No




Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average

Oil Production: 0 Water Production: 0.01 m3/dGas Production: 4.5 e3m3/d

Comments:



CO2%: 4.9






Address:

LSD To: 10-10-13-18W4From LSD: 6-9-13-18W4

License #: 13463

Calgary, Alberta



Length (km.): 2.12

Age: 34 years

GasO.D.: 88.9 W.T.: 3.96

Grade: X42 Material and Type: Steel 5LX


14

11

3

6

15

10

7

2

9

8

1

12

5

4

11

6

3

10

2

7

NE-9

013-18 W4

SE-9

013-18 W4

NW-10

013-18 W4

SW-10

013-18 W4

99999

1010101010

06-09

10-10

16-09


13463 Line 2

N





Data CollectedBy:


Results



X


Corrosion:VeryLow

Threat


>20 Years


Corrosion:VeryLow

Threat


>20 Years


Mitigation



Conditions


required



required








Input Data





Water:0 ppm






Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average


Length (km.): 2.43

Age: 34 years

GasO.D.: 88.9 W.T.: 3.96



Address:

LSD To: 2-3-13-18W4From LSD: 10-10-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 4.9






Oil Production: 0 Water Production: 0.01 m3/dGas Production: 18 e3m3/d

Comments:


NE-4

013-18 W4

SE-9

013-18 W4

SE-4

013-18 W4

SW-10

013-18 W4

NW-3

013-18 W4

SW-3

013-18 W4

SE-3

013-18 W4

NE-3

013-18 W4

SE-10

013-18 W4

SW-2

013-18 W4

NW-2

013-18 W4

SW-11

013-18 W4

SE-2

013-18 W4

NE-2

013-18 W4

SE-11

013-18 W4

99999

4444433333

1010101010

22222

1111111111

11-04

02-02

11-02

06-09

10-10

02-03

11-11


13463 Line 4

N





Data CollectedBy:


Results



X


Corrosion:VeryLow

Threat


>20 Years


Corrosion:VeryLow

Threat


>20 Years


Mitigation



Conditions


required



required








Input Data





Water:0 ppm






Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average


Length (km.): 1.24

Age: 33 years

GasO.D.: 88.9 W.T.: 3.96



Address:

LSD To: 10-10-13-18W4From LSD: 6-15-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 4.3







Comments:


1

16

9

5

4

13

12

6

3

14

11

7

2

10

15

8

9

16

1

12

13

4

5

SW-15

013-18 W4

NW-10

013-18 W4

NE-10

013-18 W4

SE-15

013-18 W4

16-09

06-15

10-10


13463 Line 7

N





Data CollectedBy:


Results



X


Corrosion:VeryLow

Threat


>20 Years


Corrosion:VeryLow

Threat


>20 Years


Mitigation



Conditions


required



required








Input Data





Water:0 ppm






Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average

11-11 well produces to 6-14 then onto Altagas line


Length (km.): 3.07

Age: 33 years

GasO.D.: 88.9 W.T.: 3.96



Address:

LSD To: 2-3-13-18W4From LSD: 11-11-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 2.4







Comments:


NE-9

013-18 W4

NE-4

013-18 W4

SE-9

013-18 W4

SE-4

013-18 W4

SW-10

013-18 W4

NW-3

013-18 W4

SW-3

013-18 W4

SE-3

013-18 W4

NE-3

013-18 W4

SE-10

013-18 W4

SW-2

013-18 W4

NW-2

013-18 W4

SW-11

013-18 W4

SE-2

013-18 W4

NE-2

013-18 W4

SE-11

013-18 W4

SW-1

013-18 W4

NW-1

013-18 W4

SW-12

013-18 W4

33333

1010101010

22222

1111111111

02-02

11-02

10-10

02-03

11-11


13463 Line 9

N





Data CollectedBy:


Results



X




< 1 Years




< 1 Years

Likelihood Rating Consequence RatingScore: 10.0 Rating: Extreme Score: 1.7 Rating: Very Low

Mitigation



Conditions

Inhibition: Continuous inhibition requiredNo supplemental treatment

required

Inspection: Evaluate for immediate inspectionAdded inspection required, if the

flow is interrupted or if upsetsoccur on a regular basis




Monitoring:Quarterly monitoring of effluent

production and water compositionincluding inhibitor residuals

No additional monitoring required



Input Data





Water:0 ppm






Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average

block valve station at 3-4 controls flow going to either 12-2-13-19 (retlaw) or 12-19-12-18 (turin) Plants.

All valaves are open at 3-4 for gas to flow in teh direction of least resistance.


Length (km.): 5.71

Age: 25 years

GasO.D.: 88.9 W.T.: 3.2



Address:

LSD To: 12-19-12-18W4From LSD: 3-4-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 2.4







Comments:


24

012-19 W4M

24

012-19 W4M24

012-19 W4M

24

012-19 W4M24

012-19 W4M

25

012-19 W4M

25

012-19 W4M25

012-19 W4M

25

012-19 W4M25

012-19 W4M

36

012-19 W4M

36

012-19 W4M36

012-19 W4M

36

012-19 W4M36

012-19 W4M

19

012-18 W4M

19

012-18 W4M19

012-18 W4M

19

012-18 W4M19

012-18 W4M

30

012-18 W4M

30

012-18 W4M30

012-18 W4M

30

012-18 W4M30

012-18 W4M

31

012-18 W4M

31

012-18 W4M31

012-18 W4M

31

012-18 W4M31

012-18 W4M

20

012-18 W4M

20

012-18 W4M20

012-18 W4M

20

012-18 W4M20

012-18 W4M

29

012-18 W4M

29

012-18 W4M29

012-18 W4M

29

012-18 W4M29

012-18 W4M

32

012-18 W4M

32

012-18 W4M32

012-18 W4M

32

012-18 W4M32

012-18 W4M

21

012-18 W4M

21

012-18 W4M21

012-18 W4M

21

012-18 W4M21

012-18 W4M

28

012-18 W4M

28

012-18 W4M28

012-18 W4M

28

012-18 W4M28

012-18 W4M

33

012-18 W4M

33

012-18 W4M33

012-18 W4M

33

012-18 W4M33

012-18 W4M

27

012-18 W4M

27

012-18 W4M27

012-18 W4M

27

012-18 W4M27

012-18 W4M

34

012-18 W4M

34

012-18 W4M34

012-18 W4M

34

012-18 W4M34

012-18 W4M

16-30

10-33

14-28

14-21

S0/04-27

W0/04-06

06-21

12-29

02-29

11-34

11-32

11-24

16-20

06-25

16-21

06-33

2/08-29

2/14-28

09-33

07-29

2/02-29

06-32

15-31

08-29

2/14-36

05-33

03-36

2/06-24

2/04-28

3/16-21

2/16-20

04-27

2/06-01

11-36

07-36

14-31

3/14-36

2/04-27

04-28

2/16-30

15-29

13-20

01-01

14-19

08-33

10-24 08-21

2/07-29

14-25

2/16-19

06-01

08-28

09-29

2/06-36

04-30

09-30

14-30

05-28

3/11-36

10-32

07-25

06-28

12-22

15-28

12-24

10-25

03-28

03-25

16-23

10-30

10-20

01-28

12-21

2/16-21

06-30

2/14-22

2/11-32

10-29

16-36

12-32

F1/03-01

08-30

03-01

02-31

14-36

2/06-28

06-22

03-27

09-20

16-36

3/16-19

06-29

14-20

02-06

02-01

3/14-28

06-36

10-21

2/11-36

04-25

16-19

14-22

06-34


13463 Line 12

N





Data CollectedBy:


Results



X




< 1 Years




< 1 Years

Likelihood Rating Consequence RatingScore: 10.0 Rating: Extreme Score: 1.7 Rating: Very Low

Mitigation



Conditions


required

Inspection: Evaluate for immediate inspectionAdded inspection required, if the

flow is interrupted or if upsetsoccur on a regular basis









Input Data





Water:0 ppm






Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average


Length (km.): 1.9

Age: 24 years

GasO.D.: 88.9 W.T.: 3.18

Grade: 2411 Material and Type: Steel Z245.1


Address:

LSD To: 6-15-13-18W4From LSD: 6-16-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 4.3







Comments:


11

6

3

10

7

2

9

8

1

12

5

4

11

6

3

SW-16

013-18 W4

NE-16

013-18 W4

SE-16

013-18 W4

NW-15

013-18 W4

SW-15

013-18 W4

1616161616

1515151515

06-16

06-15


13463 Line 13

N





Data CollectedBy:


Results



X




16 - 18 Years




16 - 18 Years


Mitigation



Conditions


required



required









Input Data





Water:0 ppm






Water:No Yes/No

Years of Service: 14 years Wall Thickness: 4 mm




Comments

Product:

Solids: no Yes

No No Average


Comments:



CO2%: 4.3






Address:

LSD To: 6-14-13-18W4From LSD: 6-15-13-18W4

License #: 13463

Calgary, Alberta



Length (km.): 1.78

Age: 14 years

GasO.D.: 88.9 W.T.:4



11

6

3

10

7

2

9

8

1

12

5

4

11

3

6

SE-15

013-18 W4

NE-15

013-18 W4

SW-14

013-18 W4

1515151515

1414141414

06-14

06-15

07-14


13463 Line 14

N





Data CollectedBy:


Results



X


Corrosion:VeryLow

Threat


>20 Years


Corrosion:VeryLow

Threat


>20 Years


Mitigation



Conditions


required



required








Input Data





Water:0 ppm






Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average


Length (km.): 0.75

Age: 3 years

GasO.D.: 114.3 W.T.:4



Address:

LSD To: 11-2-13-18W4From LSD: 2-2-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 4.3







Comments:


1

8

4

5

12

3

6

11

2

7

10

1

8

9

SW-2

013-18 W4

NW-2

013-18 W4

SE-2

013-18 W4

NE-2

013-18 W4

22222

02-02

11-02


13463 Line 15

N


.




Data CollectedBy:


Results



X


Corrosion:VeryLow

Threat


>20 Years


Corrosion:VeryLow

Threat


>20 Years


Mitigation



Conditions


required



required








Input Data





Water:0 ppm

Gas Production: 2.5 e3m3/d Presence of Sulfur: No Yes/No





Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average


Length (km.): 1.67

Age: 3 years

GasO.D.: 114.3 W.T.:4



Address:

LSD To: 6-15-13-18W4From LSD: 16-9-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 0.5






Oil Production: 0 Water Production: 0.01 m3/dGas Production: 2.5 e3m3/d

Comments:


7

2

15

8

1

16

5

4

13

6

3

14

7

2

15

NE-9

013-18 W4

SE-16

013-18 W4

SW-15

013-18 W4

NW-10

013-18 W4

NE-10

013-18 W4

SE-15

013-18 W4

16-09

06-15


13463 Line 16

N

Product:

Solids: no Yes

No No Average

Gas recycle scheme - not in use - currently cannot suspend from other flowlines


Length (km.): 0.55

Age: 3 years

GasO.D.: 114.3 W.T.:4



Address:

LSD To: 14-10-13-18W4From LSD: 10-10-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 0.5







Comments:


4

13

12

3

14

11

2

10

15

9

16

1

12

13

4

NW-10

013-18 W4

NE-10

013-18 W4

1010101010

10-10


13463 Line 17

N

Product:

Solids: no Yes

No No Average

Gas recycle scheme - not in use - currently cannot suspend from other flowlines


Length (km.): 1.02

Age: 3 years

GasO.D.: 60.3 W.T.:3.2



Address:

LSD To: 14-10-13-18W4From LSD: 16-9-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 0.5







Comments:


2

15

10

1

16

9

4

13

12

3

14

11

2

10

15

NE-9

013-18 W4

SE-16

013-18 W4

NW-10

013-18 W4

NE-10

013-18 W4

1010101010

16-09

10-10


13463 Line 18

N





Data CollectedBy:


Results



X




>20 Years




>20 Years


Mitigation



Conditions


required



required









Input Data


Pressure: 1800 kPa Carbon Dioxide: 5 %



Water:0 ppm






Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average


Length (km.): 0.8

Age: 1 years

GasO.D.: 88.9 W.T.:4



Address:

LSD To: 6-16-13-18W4From LSD: 4-16-13-18W4

License #: 13463

Calgary, Alberta



CO2%: 5







Comments:


10

7

21

8

9

4

5

12

6

3

14

7

15

2

SE-17

013-18 W4

SW-16

013-18 W4

SE-16

013-18 W4

1616161616

16-16

02-17

06-16


13463 Line 19

N

Product:

Solids: no Yes

No No Average

Suspended well as of Nov 2004, pipeline needs to be disconinued or abandoned,

flow direction needs to be changed to flow from 14-10 to 16-9


Length (km.): 1.75

Age: 23 years

GasO.D.: 88.9 W.T.:4



Address:

LSD To: 6-15-13-18W4From LSD: 6-22-13-18W4

License #: 24314

Calgary, Alberta



CO2%: 0







Comments:


NE-16

013-18 W4

SE-21

013-18 W4

SW-22

013-18 W4

NW-15

013-18 W4

SE-22

013-18 W4

NE-15

013-18 W4

NW-14

013-18 W4

SW-23

013-18 W4

1616161616

2222222222

1515151515

W0/04-22

06-15

06-22

2/15-22

01-21

06-23


24314 Line 1

N





Data CollectedBy:


Results



X


Corrosion:VeryLow

Threat


>20 Years


Corrosion:VeryLow

Threat


>20 Years


Mitigation



Conditions


required



required








Input Data





Water:0 ppm






Water:No Yes/No





Comments

Product:

Solids: no Yes

No No Average


Comments:



CO2%: 2.42






Address:

LSD To: 6-14-13-18W4From LSD: 11-11-13-18W4

License #: 50407

Calgary, Alberta



Length (km.): 1.19

Age: 3 years

GasO.D.: 114.3 W.T.:4



9

16

1

12

13

5

4

11

14

3

6

10

15

2

9

16

1

13

4

NW-11

013-18 W4

SW-14

013-18 W4

NE-11

013-18 W4

SE-14

013-18 W4

06-14

15-11

01-14

07-14

11-11


50407 Line 1

N

Product:

Solids: no Yes

No No Average

Suspended well as of June 2009 - pipeline needs to be discontinued or abandoned


Length (km.): 0.42

Age: 3 years

GasO.D.: 88.9 W.T.:4



Address:

LSD To: 11-11-13-18W4From LSD: 15-11-13-18W4

License #: 50408

Calgary, Alberta



CO2%: 0







Comments:


85

12

13

6

11

14

7

10

15

8

9

16

NW-11

013-18 W4

NE-11

013-18 W4

1111111111

15-11

11-11


50408 Line 1

N


APPENDIX B

PAGE 1

Appendix B Regulatory Documents

COPYRIGHT STATEMENT Acts and Regulations are reproduced with permission of the Queen’s Printer for Alberta. Copyright in the Statutes and Regulations, whether in print or electronic format, belongs to the Province of Alberta. No person may reproduce copies of Alberta Statutes and Regulations for any purpose without the prior consent of the Queen’s Printer for Alberta. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law. All Alberta Statutes and Regulations are also available on the Queen’s Printer web site: http://www.gov.ab.ca/qp

PIPELINE ACT

Chapter P-15

Table of Contents

1 Interpretation

Part 1 Application of Act

2 Application of Act

Part 2 Regulations

3 Regulations

Part 3 Powers and Duties of the Board

3.1 Jurisdiction of Board 4 Investigation by Board 5 Inspections

1

http://www.gov.ab.ca/qp

RSA 2000 Chapter P-15

PIPELINE ACT

2

Part 4 Licences

6 Licence 7 Rural gas utilities 8 Changes by Board 9 Granting of licence 10 Amendment of licence 11 Application to amend licence 12 Board’s powers re licences 13 Date of construction 14 Location of pipeline and rights of way 15 Finality of Board decision 16 Licence to operate 17 Transmission of unauthorized substance 18 Transfer of licence 19 Appointment of agent 20 Notice of change of name 21 Capacity to hold licences 22 Identification codes 23 Discontinuation and abandonment 24 Discontinuation, abandonment by Board 25 Continuing liability 26 Discontinuation and abandonment costs 27 Sale of material, etc. 28 Entry on land

Part 5 Suspension and Shutting Down

29 Suspension of construction or operation 30 Inquiry into suspension 31 Powers of Board

Part 6 General

32 Ground disturbance 33 Alteration or relocation 34 Samples and tests 35 Leaks and breaks 36 Clean up of spills

RSA 2000 Chapter P-15

42 Approval to undertake ground disturbance

PIPELINE ACT

3

Part 7 Use and Acquisition of Land

37 Pipeline under highway 38 Approval of pipeline 39 Pipeline crossing road 40 Board approval 41 Irrigation canal or drainage ditch

43 River or stream 44 Mines and quarries 45 Repair of damage 46 Public buildings, etc. 47 Definition 48 Acquisition of interest in lands 49 Effect of orders 50 Land that may be acquired

Part 8 Miscellaneous

51 Actions re principals 52 Offences 53 Limitation 54 Fines

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Interpretation 1(1) In this Act,

(a) “abandonment” means the permanent deactivation of a pipeline or part of a pipeline in the manner prescribed by the regulations, whether or not the pipeline or part of the pipeline is removed;

(b) “abandonment costs” means the reasonable costs actually incurred in the abandonment of a pipeline;

(c) “agent” means an agent appointed under section 19;

(d) “Board” means the Energy Resources Conservation Board;

RSA 2000 Section T1T Chapter P-15

PIPELINE ACT

4

(e) “controlled area” means a strip of land on each side of a pipeline within the distance or distances from the pipeline prescribed in the regulations and, without limitation, includes land that comprises the right of way held for the construction of a pipeline or for or incidental to the operation of a pipeline under

(i) a lease, easement, consent or other agreement,

(ii) a right of entry order as defined in the Surface Rights Act or a right of entry order under Part 4 of the Metis Settlements Act, or

(iii) a certificate of approval obtained for the purposes of a pipeline under the Expropriation Act before January 1, 1977;

(f) “crude bitumen” means a naturally occurring viscous mixture, mainly of hydrocarbons heavier than pentane, that may contain sulphur compounds and that, in its naturally occurring viscous state, will not flow to a well;

(g) “discontinuation” means the temporary deactivation of a pipeline or part of a pipeline;

(h) “discontinuation costs” means the reasonable costs actually incurred in the discontinuation of a pipeline;

(i) “gas” means

(i) natural gas both before and after it has been subjected to any processing,

(i.1) synthetic coal gas as defined in the Coal Conservation Act,

(ii) any substance recovered from natural gas, crude oil, oil sands or coal for transmission in a gaseous state, and

(iii) any gaseous substance for injection to an underground formation through a well;

(i.1) “gas utility pipeline” means a gas utility pipeline as defined in the Gas Utilities Act;

(j) “ground disturbance” means any work, operation or activity that results in a disturbance of the earth including, without limitation, excavating, digging, trenching, plowing, drilling, tunnelling, augering, backfilling, blasting, topsoil stripping, land levelling, peat removing, quarrying, clearing and grading, but does not include,


PIPELINE ACT

5

(i) except as otherwise provided in subclause (ii), a disturbance of the earth to a depth of less than 30 centimetres that does not result in a reduction of the earth cover over the pipeline to a depth that is less than the cover provided when the pipeline was installed,

(ii) cultivation to a depth of less than 45 centimetres below the surface of the ground, or

(iii) any work, operation or activity that is specified in the regulations not to be a ground disturbance;

(k) “highway” means a provincial highway under the Highways Development and Protection Act;

(l) “installation” means

(i) any equipment, apparatus, mechanism, machinery or instrument incidental to the operation of a pipeline, and

(ii) any building or structure that houses or protects anything referred to in subclause (i),

but does not include a refinery, processing plant, marketing plant or manufacturing plant;

(m) “licence” means a licence to construct and operate a pipeline under this Act or a gas utility pipeline;

(n) “licensee” means the holder of a licence for a pipeline according to the records of the Board or the holder of a licence for purposes of a gas utility pipeline according to the records of the Alberta Utilities Commission and includes a trustee or receiver-manager of the property of a licensee;

(o) “local authority” means a member of the Executive Council or a municipal corporation or a Metis settlement having the administration or the direction, management and control of a road by or under any Act of the Legislature;

(p) “manufacturing plant” means a plant that utilizes a mineral or a substance recovered from a mineral as a component of a product manufactured by the plant;

(q) “marketing plant” means a plant used for the marketing or distribution of a product obtained from the refining, processing or purifying of oil and gas;


PIPELINE ACT

6

(r) “oil” means

(i) crude oil both before and after it has been subjected to any refining or processing,

(ii) any hydrocarbon recovered from crude oil, oil sands, natural gas or coal for transmission in a liquid state,

(iii) liquefied natural gas, and

(iv) synthetic coal liquid as defined in the Coal Conservation Act,

and any other substance in association with that crude oil, hydrocarbon, liquefied natural gas or synthetic coal liquid;

(s) “oil sands” means

(i) sands and other rock materials containing crude bitumen,

(ii) the crude bitumen contained in those sands and other rock materials, and

(iii) any other mineral substances, other than natural gas, in association with that crude bitumen or those sands and other rock materials referred to in subclauses (i) and (ii);

(t) “pipeline” means a pipe used to convey a substance or combination of substances, including installations associated with the pipe, but does not include

(i) a pipe used to convey water other than water used in connection with

(A) a facility, scheme or other matter authorized under the Oil and Gas Conservation Act or the Oil Sands Conservation Act, or

(B) a coal processing plant or other matter authorized under the Coal Conservation Act,

(ii) a pipe used to convey gas, if the pipe is operated at a maximum pressure of 700 kilopascals or less, and is not used to convey gas in connection with a facility, scheme or other matter authorized under the Oil and Gas Conservation Act or the Oil Sands Conservation Act, or

(iii) a pipe used to convey sewage;

RSA 2000 Section T2 T Chapter P-15

PIPELINE ACT

7

(u) “processing plant” means a plant for the extraction from gas of hydrogen sulphide, helium, ethane, natural gas liquids or other substances, but does not include a well head separator, treater or dehydrator;

(v) “reclamation” means reclamation within the meaning of the Environmental Protection and Enhancement Act;

(w) “reclamation costs” means the reasonable costs actually incurred in the reclamation of a pipeline and includes such costs associated with assessment for the purpose of applying for a reclamation certificate under the Environmental Protection and Enhancement Act;

(x) “refinery” means a manufacturing or industrial plant where oil is processed or refined;

(y) “road” means a public road or road allowance other than a highway;

(z) “road allowance” means a road allowance as prescribed under the Surveys Act, whether containing an existing thoroughfare or not;

(aa) “transmission” includes storage.

(2) A decision of the Board is final as to whether a particular thing falls within a definition in subsection (1), or whether a definition in subsection (1) applies to a particular case.

RSA 2000 cP-15 s1; 2004 cH-8.5 s70; 2007 cA-37.2 s82(22);2009 c20 s10;

2011 c11 s7

Part 1 Application of Act

Application of Act 2 Except as otherwise provided in this Act, this Act applies to all pipelines in Alberta other than

(a) a pipeline situated wholly within the property of a refinery, processing plant, coal processing plant, marketing plant or manufacturing plant,

(b) a pipeline for which there is in force

(i) a certificate, or

(ii) an order exempting the pipeline from a certificate,


PIPELINE ACT

8

issued or made by the National Energy Board under the National Energy Board Act (Canada),

(c) a pipe transmitting gas or oil for use as fuel from a tank that is situated wholly within the property of a consumer and the installations in connection with that pipe, or

(d) a boiler, pressure vessel or pressure piping system within the meaning of the definitions under the Safety Codes Act.

RSA 1980 cP-8 s2;1984 c32 s3;1985 c46 s3; 1991 cS-0.5 s70(10)

Part 2 Regulations

Regulations 3(1) The Board may make regulations

(a) prescribing the information that is to be included or is to accompany any application under this Act or the regulations;

(b) prescribing conditions subject to which the holder of a licence under this Act or a person proposing to construct a pipeline may enter on land of another person in the absence of an agreement to that entry by that other person;

(c) regarding matters preparatory to or in connection with the design, construction, testing, operation, maintenance or repair of pipelines;

(d) requiring the upgrading of pipelines or portions of pipelines and respecting the standards of upgrading;

(e) prescribing the distance or distances from a pipeline or category of pipeline that establish the boundary of the controlled area for that pipeline or category of pipeline;

(f) specifying any work, operation or activity that results in a disturbance of the earth not to be a ground disturbance;

(g) respecting matters preparatory to or in connection with any ground disturbance;

(h) prescribing the distance from the area of a ground disturbance within which the duties and responsibilities prescribed in section 32 apply;

(i) respecting approvals required under section 42;


PIPELINE ACT

9

(j) regarding equipment, materials and installations that may be used in any pipeline or in any works, fittings, machinery or plant connected with any pipeline;

(k) respecting the construction, operation, testing, maintenance and repair of pipelines;

(l) respecting the discontinuation, abandonment and removal of pipelines, including the circumstances under which a pipeline must be discontinued, abandoned or removed, the timing of such discontinuation, abandonment or removal and the manner in which discontinuation, abandonment and removal are to be carried out;

(m) respecting discontinuation costs, abandonment costs and reclamation costs in respect of pipelines;

(n) as to the inspection of pipelines both during and after construction;

(o) prescribing the measures to be taken to identify and protect from public access any pipeline or installation;

(p) prescribing the measures to be taken to identify and locate a pipeline and protect the pipeline from any ground disturbance or proposed ground disturbance;

(q) defining the changes that may be made with respect to a pipeline without application to the Board;

(r) requiring and prescribing tests and surveys at any time;

(s) requiring the submission to the Board of information obtained by tests or surveys;

(t) respecting the submission to the Board and the licensee whose pipeline may be affected by a ground disturbance of any information relating to the ground disturbance that the Board may require;

(u) respecting the transfer of licences;

(v) respecting the eligibility requirements in order to become and remain a licensee or agent;

(w) respecting the definition of “resident” for the purpose of section 19;

(w.1) respecting the exemption of licensees or classes of licensees from the application of some or all of the requirements in section 19, subject to any terms and


PIPELINE ACT

10

conditions provided for in the regulations, including the substitution of any other requirements;

(x) as to the sale, leasing or change of operator of a pipeline;

(y) exempting a pipeline or class of pipeline from any provision of this Act or the regulations;

(z) prescribing alternate provisions that may apply to a pipeline or class of pipeline exempted by a regulation made under clause (y);

(aa) prescribing

(i) methods and facilities to be utilized for the measurement of any substance transmitted by a pipeline,

(ii) methods of recording the measurement, and

(iii) standard conditions to which the measurements are to be converted;

(bb) governing the maintenance of records and providing for their submission to the Board;

(cc) governing the making of reports and the authority or person to whom they are to be made;

(dd) as to when and to whom information contained in records, reports and information submitted to or acquired by the Board under this Act may be made available;

(ee) to meet any special case that may arise and for which no provision is made in this Act;

(ff) prescribing or approving forms to be used under this Act or the regulations either generally or for a particular case;

(gg) establishing a schedule of fees

(i) pertaining to applications, or

(ii) for any other service provided by the Board;

(hh) respecting compliance with and enforcement of ALSA regional plans.

(2) When a regulation under subsection (1)(a) prescribes the information to be included in or to accompany an application pursuant to a given provision of this Act or the regulations, the Board is not precluded from considering or acting on an application

RSA 2000 Section T3.1T Chapter P-15

PIPELINE ACT

11

pursuant to that provision that does not contain that information or from requiring additional information.

RSA 2000 cP-15 s3;2008 c7 s8;2009 cA-26.8 s87

Part 3 Powers and Duties of the Board

Jurisdiction of Board 3.1(1) Subject to subsection (2), the Board has jurisdiction with respect to pipelines.

(2) The Alberta Utilities Commission has jurisdiction with respect to gas utility pipelines and exercises all the powers, functions and duties of the Board with respect to gas utility pipelines.

2007 cA-37.2 s82(22)

Investigation by Board 4 The Board, when required by the Lieutenant Governor in Council shall, or on its own motion may, inquire into, examine and investigate any matter relating to

(a) the economic, orderly and efficient development in the public interest of pipeline facilities in Alberta;

(b) the observance of safe and efficient practices in the construction, operation, discontinuation and abandonment of pipelines;

(c) the observance of safe and efficient methods in any work, operations or activities when a ground disturbance in a controlled area is being undertaken;

(d) the control of pollution and conservation of the environment in the development, operation, discontinuation and abandonment of pipeline facilities.

RSA 1980 cP-8 s5;1981 c30 s4;2000 c12 s2(4)

Inspections 5(1) At any reasonable time, a member of the Board or a person authorized by the Board

(a) is entitled to access to pipelines and routes of proposed pipelines, and to all buildings, installations, structures and land incidental to those pipelines or routes,

(b) is entitled to access to any controlled area,


PIPELINE ACT

12

(c) may enter on any land that the member or person must cross to reach a pipeline, installation or controlled area,

(d) may make inspections, investigations or tests

(i) of pipelines, and

(ii) in controlled areas, and

(e) may inspect all books, records and documents pertaining to the construction, operation and maintenance of pipelines or the undertaking of a ground disturbance.

(2) A person authorized by the Board to exercise any of the powers referred to in subsection (1) shall, at any time during which the person is exercising those powers, produce on demand the person’s certificate of authority from the Board.

(3) A person who is the holder of a licence under Part 4, or a person in charge of a pipeline, installation or ground disturbance, or a contractor or employee of that person shall permit or assist any member of the Board or any person authorized by the Board in the exercise of the powers conferred by subsection (1).

RSA 1980 cP-8 s6;1981 c30 s5;2000 c12 s2(5)

Part 4 Licences

Licence 6(1) No person shall construct a pipeline or any part of a pipeline or undertake any operations preparatory or incidental to the construction of a pipeline unless the person is the holder of a licence or unless the person is acting pursuant to a direction of the Board under section 33 authorizing the person to do so.

(2) This section does not preclude a person proposing to apply for a licence or that person’s agent from

(a) entering on any Crown or other land lying in the intended route of the pipeline to make surveys or examinations, or

(b) negotiating for the acquisition of interests in land that may be required for the pipeline.

RSA 1980 cP-8 s7;2000 c12 s2(32)

Rural gas utilities 7 The Board shall not grant a licence for a pipeline that will be part of a rural gas utility as defined in the Gas Distribution Act without the consent of the Minister responsible for the Gas


PIPELINE ACT

13

Distribution Act or a person authorized by the Minister to give that consent.

RSA 1980 cP-8 s9;1983 c27 s7;1986 c15 s10;1994 cR-19.1 s37; 1998 c26 s13;2000 c12 s2(7)

Changes by Board 8 The Board may, on its own initiative, make any changes and alterations in the plans and specifications of a pipeline that the Board considers expedient.

RSA 1980 cP-8 s10;1994 cA-19.5 s25

Granting of licence 9(1) A licence for a pipeline may be granted by the Board subject to any terms and conditions expressed in the licence or the Board may refuse to grant a licence.

(2) The Board, in a licence granted under this section, may stipulate that the licensee must acquire any interest in land not owned by the licensee and required for the purposes of the licensee’s pipeline by negotiation with the owner.

RSA 1980 cP-8 s11;2000 c12 s2(32),(33)

Amendment of licence 10(1) When a licensee desires to make a change with respect to a pipeline either before the commencement or during the construction of the pipeline, an application, unless otherwise provided in the regulations, shall be submitted to the Board to amend the licence.

(2) If an amendment involves a relocation or diversion of the pipeline or proposed pipeline, the Board may cancel the licence and grant a new licence.

RSA 1980 cP-8 s12;1985 c46 s7;2000 c12 s2(32),(33)

Application to amend licence 11(1) If a licensee, after the construction of a pipeline, desires to make a change with respect to that pipeline by alteration or addition to it or relocation, diversion or extension of it, the licensee shall submit an application for that purpose to the Board.

(2) In granting an application under subsection (1) the Board may

(a) amend the licence for the pipeline,

(b) grant a new licence, or

(c) exempt in writing the alteration, addition, relocation, diversion or extension from any or all of the provisions of


PIPELINE ACT

14

this Part, subject to any terms and conditions it considers advisable.

(3) Subsection (1) does not apply to

(a) repairs or maintenance made in the course of operations,

(b) minor improvements to an existing installation, or

(c) changes made in an emergency.

(4) When changes are made to a pipeline in an emergency, particulars of those changes shall be forwarded to the Board immediately.

RSA 1980 cP-8 s13;1985 c46 s8;2000 c12 s2(32),(35)

Board’s powers re licences 12 The Board, on the request of the licensee or on its own initiative, may

(a) amend a licence,

(b) suspend a licence,

(c) cancel a licence, or

(d) subject to any terms or conditions the Board considers necessary, regrant a licence.

1985 c46 s9;2000 c12 s2(9),(32),(33)

Date of construction 13 When a licence or an amendment of a licence is granted, or at any time after a licence or an amendment of a licence is granted, the Board may prescribe a date by which construction of a pipeline is to be commenced or completed.

RSA 1980 cP-8 s14;2000 c12 s2(32)

Location of pipeline and rights of way 14 The Board, in a licence or an amendment of a licence, may

(a) prescribe the location and route of the pipeline as precisely as it considers suitable, and

(b) prescribe the location of the right of way of the pipeline and the relationship of its boundaries to the pipeline or any part of the pipeline.

RSA 1980 cP-8 s15;2000 c12 s2(32)


PIPELINE ACT

15

Finality of Board decision 15 The decision of the Board with respect to an application for a licence or with respect to the cancellation or suspension of a licence is final and there is no appeal from that decision.

RSA 1980 cP-8 s18;2000 c12 s2(32)

Licence to operate 16(1) No person shall operate a pipeline for any purpose unless the person is a licensee.

(2) No person shall operate a pipeline unless the pipeline has first been tested pursuant to the regulations or as otherwise approved by the Board, and been found to be satisfactory.

RSA 1980 cP-8 s19;1985 c46 s11;2000 c12 s2(10)

Transmission of unauthorized substance 17(1) No pipeline for which a licence has been granted may be used for the transmission of any substance other than the substance authorized by the licence.

(2) On an application being made by a licensee to use the licensee’s pipeline for the transmission of a substance other than the substance authorized by the licensee’s licence, the Board may amend the licence or cancel the licence and issue a new licence subject to any terms and conditions it prescribes.

RSA 1980 cP-8 s23

Transfer of licence 18(1) A licence may not be transferred without the consent in writing of the Board.

(2) When the licensee of a pipeline or proposed pipeline sells or otherwise disposes of the licensee’s interest in the pipeline or proposed pipeline, a proposed transfer reflecting that transaction must be filed with the Board.

(3) The Board may consent to the transfer of a licence subject to any conditions, restrictions or stipulations that the Board may prescribe, or the Board may refuse to consent to the transfer.

(4) A proposed transfer must be in a form prescribed or approved by the Board and must have endorsed on it or attached to it proof of execution satisfactory to the Board.

(5) The applicant shall submit the proposed transfer to the Board together with the prescribed fee.


PIPELINE ACT

16

(6) The Board shall keep a record of every transfer to which it has given consent.

(7) The Board may direct that a licence be transferred to a person who agrees to accept it and who, in the opinion of the Board, has the right to receive it, and the direction of the Board has the same effect as a transfer consented to under this section.

(8) A transfer of a licence has no effect until the Board has consented to or directed the transfer under this section.

RSA 1980 cP-8 s24;2000 c12 s2(12)

Appointment of agent 19(1) In this section, “resident” means resident as defined in the regulations.

(2) Subject to the regulations made under section 3(1)(w.1), each licensee of a pipeline shall register its address with the Board and, in the case of a licensee that is resident outside Alberta, shall

(a) appoint an agent within Alberta to carry out the licensee’s duties and other responsibilities under this Act,

(b) notify the Board in writing of the appointment, and

(c) register with the Board the address in Alberta of the agent, which address shall also be the address for service of the licensee in Alberta.

(3) A person is not eligible to be appointed or to remain as an agent under subsection (2) unless the person meets the requirements of section 21 and the regulations.

(4) The appointment of an agent under this section is ineffective unless the Board approves the appointment, and the Board may approve or refuse to approve the appointment.

(5) The approval of an appointment by the Board does not relieve the licensee of any duty or responsibility to comply with this Act, the regulations or an order of the Board, but if an agent has been appointed and the licensee fails or is unable to comply with a duty or responsibility, the agent is responsible for compliance with the duty or responsibility.

(6) A licensee and an agent shall register any change of address with the Board within 15 days after the change.

(7) An agent may not be changed or discharged without the consent, in writing, of the Board, and the Board may refuse that consent.

RSA 2000 cP-15 s19;2008 c7 s8


PIPELINE ACT

17

Notice of change of name 20 When a licensee of a pipeline or proposed pipeline changes the licensee’s name, the licensee shall forthwith advise the Board in writing and the Board may amend the licence accordingly.

RSA 1980 cP-8 s26;2000 c12 s2(34),(35)

Capacity to hold licences 21(1) No person shall acquire or hold a licence unless the person meets the eligibility requirements set out in the regulations and, in the case of a corporation, is

(a) registered under the Companies Act,

(b) registered, incorporated or continued under the Business Corporations Act or the Cooperatives Act,

(c) an association within the meaning of the Co-operative Associations Act or the Rural Utilities Act,

(d) licensed under the Insurance Act,

(e) registered under the Loan and Trust Corporations Act,

(f) incorporated by or under an Act of Alberta and approved by the Board as a company that may acquire or hold a licence, or

(g) incorporated or continued under the Bank Act (Canada).

(2) No syndicate or association of persons other than those listed in subsection (1) shall acquire or hold a licence in the name of the syndicate or association unless it has been incorporated by or under an Act of Alberta and approved by the Board to acquire or hold a licence.

RSA 2000 cP-15 s21;2001 cC-28.1 s463

Identification codes 22 No person shall apply for a licence unless the person holds a subsisting identification code issued under the Oil and Gas Conservation Act.

2000 c12 s2(15)

Discontinuation and abandonment 23(1) A licensee shall discontinue or abandon a pipeline when directed by the Board or required by the regulations.


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(2) The Board may order that a pipeline be discontinued or abandoned where the Board considers that it is necessary to do so in order to protect the public or the environment.

(3) A discontinuation or abandonment must be carried out in accordance with the regulations.

2000 c12 s2(17)

Discontinuation, abandonment by Board 24 If, in the opinion of the Board, a pipeline is not discontinued or abandoned in accordance with the direction of the Board or the regulations, the Board may

(a) authorize any person to discontinue or abandon the pipeline, or

(b) discontinue or abandon the pipeline on the Board’s own motion.

2000 c12 s2(17)

Continuing liability 25 Abandonment of a pipeline does not relieve the licensee from the responsibility for further abandonment or other work with respect to the same pipeline or part of a pipeline that may become necessary, or from the responsibility for the costs of the further abandonment or other work.

2000 c12 s2(17)

Discontinuation and abandonment costs 26(1) In the case of a pipeline that is discontinued or abandoned under section 24,

(a) the Board may determine the discontinuation costs or abandonment costs and may prescribe a time for payment of those costs, and

(b) the licensee of the pipeline shall pay the costs so determined.

(2) A licensee who fails to pay the costs as determined under subsection (1) within the period of time prescribed by the Board must pay, unless the Board directs otherwise, a penalty equal to 25% of those costs.

(3) Costs as determined under subsection (1), together with any penalty payable under subsection (2), constitute a debt payable to the Board.


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(4) A certified copy of the order of the Board determining the costs and penalty under this section may be filed in the office of the clerk of the Court of Queen’s Bench and, on being filed and on the payment of any fees prescribed by law, the order may be entered as a judgment of the Court and may be enforced according to the ordinary procedure for enforcement of judgments of the Court.

2000 c12 s2(17)

Sale of material, etc. 27(1) When abandonment of a pipeline is conducted by the Board, a member of the Board or a person authorized by it, the Board may in a manner it sees fit sell or dispose of any installation or material found on the site or taken from the pipeline, but the Board shall not sell any installation or material that it knows is owned by someone other than the licensee of the pipeline.

(2) A person to whom any installation or material is sold pursuant to subsection (1) receives good title to the installation or material, free of any claim whatsoever.

(3) When the Board receives money on the sale or disposal of any installation or material under subsection (1), the Board shall

(a) apply the money

(i) first, to the payment of any unpaid costs and penalty determined by it under section 26, and

(ii) 2nd, if any money remains after complying with subclause (i), to the payment of any other outstanding debt owing to the Board from the licensee,

and

(b) if any money remains after complying with clause (a), pay persons who file a claim with the Board within 6 months after the date of the sale and establish their entitlement to the money.

RSA 2000 cP-15 s27;2006 c23 s64

Entry on land 28(1) A person carrying out discontinuation or abandonment operations pursuant to section 23 or 24 is entitled to have access to and may enter on the land and any structures on the land concerned for the purpose of carrying out the discontinuation or abandonment operations.


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(2) A person shall, before entering on any land under subsection (1), give prior written notice of intention to enter to the landowner and to the occupant, if any, unless it is impractical under the circumstances to do so.

(3) If a person who enters on any land under subsection (1) is prevented from entering, that person may apply to the Court of Queen’s Bench for an order permitting the person to enter on the land for the purposes specified in the order, and an order so made may be enforced by the sheriff.

(4) A person who enters on any land under subsection (1) shall compensate the landowner or the occupant, if any, for direct expenses and for any damage to the landowner’s or occupant’s land, crop or livestock arising directly from that entry.

(5) If a dispute arises as to the compensation payable pursuant to subsection (4), the compensation is to be determined by the Surface Rights Board.

RSA 2000 cP-15 s28;2009 c53 s133

Part 5 Suspension and Shutting Down

Suspension of construction or operation 29(1) Where it appears to the Board or its authorized representative that in the construction or operation of a pipeline or in the undertaking of a ground disturbance there has been or is a contravention of this Act, the regulations, a licence or an order or direction of the Board, or that a method or practice employed or any equipment or installation at a pipeline or in a controlled area is improper, hazardous, inadequate or defective,

(a) the Board or its representative may order that the construction or operation of the pipeline, or the ground disturbance, is suspended and shall not be resumed until

(i) the contravention ceases or this Act or the regulation, licence or order or direction of the Board is complied with,

(ii) approved methods or practices are employed or adopted,

(iii) remedial measures are taken, or

(iv) proper, safe and adequate equipment is used,


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(b) the Board or its representative may order that the construction or operation of the pipeline or the ground disturbance be suspended until further order, or

(c) the Board may call an inquiry.

(2) Where a representative of the Board makes an order under subsection (1)(a) or (b), the representative shall, as soon as possible, report to the Board and so advise in writing the licensee, if any, or person responsible for the ground disturbance, setting out the reasons for the representative’s actions.

RSA 1980 cP-8 s29;1981 c30 s6;2000 c12 s2(18)

Inquiry into suspension 30 Where an order is made under section 29(1)(a) or (b) for the suspension of the construction or operation of a pipeline or of a ground disturbance within a controlled area, the person to whom the order is directed may request an inquiry and, if the person does so, the Board shall hold an inquiry within 5 days, exclusive of holidays, after the date of receipt of the request.

RSA 1980 cP-8 s30;1981 c30 s6;2000 c12 s2(19)

Powers of Board 31(1) Within 15 days after the conclusion of an inquiry pursuant to section 29 or 30, the Board may

(a) allow the construction or operation of the pipeline, or the ground disturbance within a controlled area, to continue or resume subject to any conditions that the Board may prescribe,

(b) order the continued suspension of the construction or operation of the pipeline, or the ground disturbance within a controlled area, until the Board makes an order to the contrary, or

(c) in the case of the construction or operation of a pipeline, cancel or suspend the licence for the pipeline.

(2) On the cancellation or suspension of a licence by the Board, no construction shall be carried out and no oil, gas, water or other substance shall be transmitted in the pipeline until the licence has been reinstated or a new licence has been issued by the Board except such as the Board authorizes to maintain the facilities in a state whereby operations can be carried out in accordance with this Act.

RSA 1980 cP-8 s31;1981 c30 s7;2000 c12 s2(34)


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Part 6 General

Ground disturbance 32(1) A person proposing to undertake or undertaking a ground disturbance shall, before commencing any work, operation or activity,

(a) take all precautions reasonably necessary

(i) to ascertain whether a pipeline exists within

(A) the area in which the person proposes to undertake or undertakes the ground disturbance, and

(B) the distance, prescribed in the regulations, from the area referred to in paragraph (A),

(ii) to determine who is the licensee of a pipeline in existence within the area or distance referred to in clause (a)(i), and

(b) notify the licensee referred to in clause (a)(ii) of the nature of the proposed ground disturbance and the proposed schedule for the undertaking of that ground disturbance in accordance with the regulations.

(2) A licensee shall, on the request of a person proposing to undertake or undertaking a ground disturbance, provide to that person any information respecting a pipeline in existence within the area or distance referred to in subsection (1)(a)(i) that is contained in the records of the licensee and is required by that person for the purpose of complying with subsection (1) and the regulations.

(3) A licensee of a pipeline that may be or is affected by a ground disturbance shall provide to the person proposing to undertake or undertaking the ground disturbance any assistance that the person may reasonably require to enable the person to comply with this Act and the regulations.

1981 c30 s8;2000 c12 s2(20)

Alteration or relocation 33(1) When in its opinion it would be in the public interest to do so, the Board may, on any terms and conditions it considers proper, direct a licensee

(a) to alter or relocate any part of the licensee’s pipeline,


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(b) to install additional or other equipment on the licensee’s pipeline, or

(c) to erect permanent fencing on the right of way or provide any other protective measures within the controlled area that the Board considers necessary.

(2) Where the Board directs the alteration or relocation of a pipeline, the installation of additional or other equipment on a pipeline, the erection of fences or the provision of other protective measures within the controlled area, it may order by whom and to whom payment of the cost of the work and material, or either, shall be made.

(3) If a dispute arises as to the amount to be paid pursuant to an order under subsection (2), it shall be referred to the Board and the Board’s decision is final.

RSA 1980 cP-8 s34;1981 c30 s9;2000 c12 s2(35)

Samples and tests 34(1) The Board may order that a representative sample of the substance being transmitted by a pipeline be taken and analyzed by a person it determines.

(2) The Board may at any time require the licensee of a pipeline to make inspections, investigations or tests of the pipeline and may prescribe the manner in which they are to be made.

RSA 1980 cP-8 s35;2000 c12 s2(35)

Leaks and breaks 35(1) When a leak or break occurs in a pipeline, the licensee shall immediately cause the Board to be informed of the location of the leak or break.

(2) Where contact is made with a pipeline during any ground disturbance, resulting in a puncture of or crack in the pipeline or in a scratch, gouge, flattening or dent on the surface of the pipeline, or in damage to its protective coating,

(a) the particular ground disturbance that resulted in the contact with the pipeline shall be immediately stopped and the person responsible for the ground disturbance shall immediately advise the licensee of the pipeline of the location where the contact occurred and the kind of damage that resulted from the contact, and

(b) the licensee of the pipeline shall immediately notify the Board of the location where the contact occurred and the kind of damage that resulted from the contact.


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(3) Where a particular ground disturbance has been stopped pursuant to subsection (2) it shall not be recommenced without the approval of the licensee of a pipeline with which contact was made or, if approval cannot be reasonably obtained from the licensee, without the approval of the Board.

(4) When a leak or break in a pipeline or damage to a pipeline that resulted from a contact described in subsection (2) has been repaired, the Board may require the submission of reports in writing, in accordance with the regulations.

(5) When a pipeline that is transmitting oil breaks on Crown land or in a forested area, the licensee shall immediately report the location of the break and the approximate quantity of oil that has escaped, to an employee or officer of the Government designated by the Minister responsible for the Public Lands Act.

(6) The provisions of this section extend to a pipeline for which there is in force a certificate or an order exempting the pipeline from a certificate made or issued by the National Energy Board under the National Energy Board Act (Canada) and to the person constructing or operating the pipeline as though that person were the licensee of the pipeline.

RSA 1980 cP-8 s36;1981 c30 s10;1986 cD-20.5 s18; 1994 cG-8.5 s53;2000 c12 s2(22)

Clean up of spills 36(1) When a substance escapes from a pipeline and it appears to the Board that the substance may not otherwise be contained and cleaned up forthwith, the Board may

(a) direct the pipeline operator or licensee, or those pipeline operators or licensees who in the opinion of the Board could be responsible for a pipeline from which the substance escaped, to take any steps that the Board considers necessary to contain and clean up, to the satisfaction of the Board and the Department of Environment, the substance that has escaped and to prevent further escape of the substance, or

(b) enter on the area where the substance has escaped and conduct any operations it considers necessary to contain and clean up the substance that has escaped and to prevent further escape of the substance.

(2) When the Board enters on an area pursuant to subsection (1)(b),

(a) every person responsible for the escape of the substance, every pipeline operator or licensee who in the opinion of


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the Board could be responsible for a pipeline from which the substance escaped and every officer and employee of that person, operator or licensee shall, until the operations to be conducted by the Board are completed, obey the orders concerning those operations given by the Board or a person or persons the Board places in charge of those operations;

(b) the Board may recover, deal with and dispose of the escaped substance as if it were the property of the Board, and if any escaped substance is sold, apply the proceeds to pay the costs and expenses of the operations conducted by the Board;

(c) the Board may engage any persons it considers necessary to conduct any of the operations on its behalf.

(3) When any operations are conducted pursuant to this section

(a) by an operator, licensee or other person under subsection (1)(a) and the operator, licensee or person requests the Board to do so, or

(b) by or on behalf of the Board under subsection (1)(b),

the Board may determine the costs and expenses of the operations and direct by whom and to what extent they are to be paid.

(4) No action or proceeding may be brought against a person named in a direction issued pursuant to subsection (1)(a) in respect of any act or thing done pursuant to the direction.

RSA 1980 cP-8 s37;1994 cG-8.5 s85;2000 c12 s2(23)

Part 7 Use and Acquisition of Land

Pipeline under highway 37(1) Subject to sections 38 to 40, a person who has the right to construct or operate a pipeline under this Act has the right to do so on, across, over or under any highway or road.

(2) A person exercising a right granted under subsection (1) shall

(a) during construction or repair of the pipeline, take care to preserve, as far as possible, a free and uninterrupted passage to and over the portion of the highway or road affected, and


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(b) during operation of the pipeline, do nothing to prevent a free and uninterrupted passage to and over the portion of the highway or road affected.

RSA 1980 cP-8 s38

Approval of pipeline 38(1) No pipeline may be constructed on, across, over or under a highway without the approval of the Minister of Transportation.

(2) An application for approval under subsection (1) shall be accompanied with a plan and profile of the portion of the highway affected.

(3) The land in which an interest is required for a pipeline parallel to a highway shall not be located nearer than

(a) 30 metres from the boundary of the highway, in the case of a highway other than a freeway under the Highways Development and Protection Act, or 115 metres from the centre line of such a freeway, without the approval of the Minister of Transportation, or

(b) any greater distance from the boundary or centre line that the Board stipulates.

(4) If a pipeline crosses a highway, no bend shall be permitted in that part of the pipeline that is

(a) within the boundaries of the highway without the approval of the Minister of Transportation, or

(b) within

(i) 30 metres from the boundary of the highway, in the case of a highway other than a freeway under the Highways Development and Protection Act, or 115 metres from the centre line of such a freeway, without the approval of the Minister of Transportation, or

(ii) any greater distance from the boundary or centre line that the Board stipulates.

RSA 2000 cP-15 s38;2004 cH-8.5 s70

Pipeline crossing road 39(1) No pipeline shall be constructed on, across, over or under a road without the approval of the local authority concerned.


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(2) The land in which an interest is required for a pipeline parallel to a road shall not be located nearer than 30 metres to the boundary of the road without the approval of the local authority concerned.

(3) If a pipeline crosses a road, no bend shall be permitted in that portion of the pipeline within the boundaries of the road or within 8 metres of the boundary of the road without the approval of the local authority concerned.

RSA 1980 cP-8 s40

Board approval 40 If the Board is satisfied that an approval required by section 39 cannot reasonably be obtained from a municipal corporation or a Metis settlement, it may, on application, grant the required approval subject to any terms and conditions it considers suitable in the circumstances.

RSA 1980 cP-8 s41;1990 cM-14.3 s279

Irrigation canal or drainage ditch 41 No pipeline may be constructed on, across, over or under an irrigation canal or ditch under the Irrigation Districts Act or a drainage ditch under the Drainage Districts Act without the approval of the owner, or, if approval cannot reasonably be obtained from the owner, without the approval of the Board.

RSA 1980 cP-8 s42;1999 cI-11.7 s214

Approval to undertake ground disturbance 42 No ground disturbance may be undertaken in the right of way for a pipeline without the approval of the licensee of the pipeline in accordance with the regulations, or, if approval cannot reasonably be obtained from the licensee, without the approval of the Board.

1981 c30 s11;2000 c12 s2(35)

River or stream 43 When the description of land in a certificate of title issued to a person other than the Crown does not except, reserve or otherwise refer to land, owned by the Crown, that comprises at any time the bed or shore of a lake, river, stream or other body of water then, notwithstanding anything in the Public Lands Act, a person who has the right to construct or operate a pipeline under this Act has the right to do so on, across, over or under that bed or shore.

RSA 1980 cP-8 s43

Mines and quarries 44 No person, without the authority of the Board, shall construct a pipeline or part of a pipeline so as to interfere with the present


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workings of a mine or quarry or obstruct any opening to a mine or quarry.

RSA 1980 cP-8 s44

Repair of damage 45 If during construction or operation of a pipeline any damage occurs to any structure, another pipeline or to a private or public utility, the licensee shall immediately cause the damage to be repaired unless an arrangement has otherwise been made with the owner of that structure, pipeline or utility.

RSA 1980 cP-8 s45;2000 c12 s2(25)

Public buildings, etc. 46(1) No pipeline shall be constructed under a building used or capable of being used as a public building, residence, office, warehouse or factory without the approval of the Board, and the Board may make its approval subject to any terms and conditions it prescribes.

(2) Subsection (1) does not apply when the pipeline will deliver a substance to the building for use in the building.

RSA 1980 cP-8 s46

Definition 47 In sections 48 to 50, “land” means land other than mines or minerals.

RSA 1980 cP-8 s47;2000 c12 s2(26)

Acquisition of interest in lands 48(1) When a licensee requires an interest in land for the purposes of the licensee’s pipeline, the interest may be acquired in land owned by the Crown or by any other person

(a) by negotiation with the owner,

(b) by proceedings under the Surface Rights Act, or

(c) in respect of patented land as defined in the Metis Settlements Act, by proceedings under Part 4 of the Metis Settlements Act.

(2) Notwithstanding subsection (1), when a licence for a pipeline contains a stipulation in accordance with section 9(2) and the licensee requires an interest in land for the purposes of that pipeline, the licensee shall not acquire the interest otherwise than by negotiation with the owner.


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(3) When it appears to the Minister of Infrastructure that an interest in land for the purposes of a pipeline of a rural gas utility cannot be acquired in accordance with subsection (2), then, notwithstanding the stipulation contained in the licence, the Minister may direct that the interest be acquired by proceedings under the Surface Rights Act or Part 4 of the Metis Settlements Act under any terms and conditions the Minister prescribes and in that case the operation shall not by reason only of proceeding in that manner, be in contravention of the stipulation contained in the licence.

RSA 1980 cP-8 s48;1983 c27 s7;1986 c15 s10; 1990 cM-14.3 s279;2000 c12 s2(27)

Effect of orders 49 If a licensee obtains a certificate of approval under the Expropriation Act for the purposes of the licensee’s pipeline pursuant to proceedings commenced before January 1, 1977,

(a) the certificate of approval, unless otherwise provided, vests in the licensee an exclusive interest in the land described in the certificate for the purposes named in it, with any annexed rights in or over other land that may be specified in the certificate, but the certificate of approval does not give a licensee

(i) any right or entitlement to a certificate of title under the Land Titles Act for the interest in land acquired by the licensee by the certificate of approval, or

(ii) the right to carry away sand, gravel, clay or marl from the land in respect of which the certificate of approval was granted,

and

(b) the certificate of approval is deemed to be an instrument referred to in section 69 of the Land Titles Act.

RSA 1980 cP-8 s49;1983 c37 s53;2000 c12 s2(28)

Land that may be acquired 50 Subject to section 48(2), if the location of a right of way is precisely defined in the licence, the powers granted by this Part to the licensee of the pipeline apply to land within that location.

RSA 1980 cP-8 s50;2000 c12 s2(29)


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Part 8 Miscellaneous

Actions re principals 51(1) Where a licensee

(a) contravenes or fails to comply with an order of the Board, or

(b) has an outstanding debt to the Board, or to the Board to the account of the orphan fund under the Oil and Gas Conservation Act, in respect of discontinuation, abandonment or reclamation costs,

and the Board considers it in the public interest to do so, the Board may make a declaration setting out the nature of the contravention, failure to comply or debt and naming one or more directors, officers, agents or other persons who in the Board’s opinion were directly or indirectly in control of the licensee at the time of the contravention, failure to comply or failure to pay.

(2) The Board may not make a declaration under subsection (1) unless it first gives written notice of its intention to do so to the affected directors, officers, agents or other persons and gives them at least 10 days to show cause as to why the declaration should not be made.

(3) Where the Board makes a declaration under subsection (1), the Board may, subject to any terms and conditions it considers appropriate,

(a) suspend any operations of a licensee under this Act or the Oil and Gas Conservation Act or of an approval holder under the Oil and Gas Conservation Act,

(b) refuse to consider any application for an identification code, licence or approval from an applicant under this Act or the Oil and Gas Conservation Act,

(c) refuse to consider an application to transfer a licence under this Act or the Oil and Gas Conservation Act or an approval under the Oil and Gas Conservation Act,

(d) require the submission of abandonment and reclamation deposits in an amount determined by the Board prior to granting any licence, approval or transfer to an applicant, transferor or transferee under the Oil and Gas Conservation Act, and

(e) require the submission of abandonment and reclamation deposits in an amount determined by the Board for any


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wells or facilities of any licensee or approval holder under the Oil and Gas Conservation Act,

where the person named in the declaration is the licensee, approval holder, applicant, transferee or transferor referred to in clauses (a) to (e) or is a director, officer, agent or other person who in the Board’s opinion is directly or indirectly in control of the licensee, approval holder, applicant, transferee or transferor referred to in clauses (a) to (e).

(4) This section applies in respect of a contravention, failure to comply or debt whether the contravention, failure to comply or debt arose before or after the coming into force of this section.

2000 c12 s2(30)

Offences 52(1) A person who

(a) obstructs or causes any obstruction to the construction, repair, operation or dismantling of a pipeline,

(b) wilfully does any damage to a pipeline, or

(c) harms, removes, defaces or destroys a sign erected under this Act or the regulations except for replacement, repair or removal under the regulations,

is guilty of an offence.

(2) A person who

(a) whether as a principal or otherwise, contravenes any provision of this Act or of the regulations or of any order, direction or licence under this Act,

(b) either alone or in conjunction or participation with others causes any holder of a licence to contravene any of those provisions, or

(c) instructs, orders, directs or causes any officer, agent or employee of any holder of an approval or licence to contravene any of those provisions,

is guilty of an offence.

(3) A person who prevents, hinders, obstructs, molests or otherwise interferes with, or who fails to assist, a member of the Board or a person authorized by the Board in the exercise of the powers conferred by section 5(1) is guilty of an offence.


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(4) A person who knowingly makes a false statement in any record required to be kept or any report required to be made by this Act or the regulations is guilty of an offence.

RSA 1980 cP-8 s51;2000 c12 s2(31),(34)

Limitation 53 A prosecution for an offence under this Act may be commenced within 18 months from the time when the subject-matter of the proceedings arose, but not afterwards.

RSA 1980 cP-8 s52

Fines 54(1) Subject to subsection (2), a person who is guilty of an offence under this Act is liable

(a) if a corporation, to a fine not more than $10 000, or

(b) if an individual, to a fine not more than $5000.

(2) A person who is found guilty of an offence under this Act that is a continuing offence is liable

(a) if a corporation, to a fine of not more than $10 000 for the first day on which the offence occurs and not more than $5000 for each subsequent day during which the offence continues, or

(b) if an individual, to a fine of not more than $5000 for the first day on which the offence occurs and not more than $2500 for each subsequent day during which the offence continues.

(3) A person other than a corporation who defaults in payment of a fine imposed for a continuing offence is liable to imprisonment for a term not exceeding 6 months.

RSA 1980 cP-8 s53;1981 c30 s12