Trans-Northern Pipelines Inc. (TNPI) – Application dated 14 July 2023 pursuant to Condition 4.f of Order AO-001-SO-T217-03-2010

Trans-Northern Pipelines Inc. (TNPI) – Application dated 14 July 2023 pursuant to Condition 4.f of Order AO-001-SO-T217-03-2010 [PDF 401 KB]

File 4668651
12 March 2024

Gail Sharko
Trans-Northern Pipelines Inc.
109-5305 McCall Way NE
Calgary, AB   T2E 7N7

Dear Gail Sharko:

• Trans-Northern Pipelines Inc. Application dated 14 July 2023 pursuant to Condition 4.f of Order AO-001-SO-T217-03-2010, as amended, section 69 of the Canadian Energy Regulator Act, and Part III of the National Energy Board Rules of Practice and Procedure, 1995
  Application for Raising of Restricted Maximum Operating Pressure Order AO-001-SO-T217-03-2010, Schedule B, Line 8, NPS 20 Clarkson Junction to Toronto Airport Loop
  
  Before: K. Penney, Presiding Commissioner; T. Grimoldby, Commissioner; W. Jacknife, Commissioner

On 14 July 2023, the Commission of the Canada Energy Regulator received an application from Trans-Northern Pipelines Inc. (TNPI), pursuant to Condition 4.f of Order AO-001-SO-T217-03-2010, to raise the restricted maximum operating pressure (MOP) for Line 8 in Schedule B of Order AO-001-SO-T217-03-2010 (the NPS 20 Clarkson Junction to Toronto Airport Loop) for a return to service at the authorized MOP, and to vary Order AO-001-SO-T217-03-2010, pursuant to section 69 of the Canadian Energy Regulator Act (CER Act), to remove that line segment from Schedule B.

The authorized MOP is 8274 kPa and the restricted MOP is 5793 kPa.

For the reasons set out below, the Commission approves TNPI’s application.

Application to raise the restricted MOP, pursuant to Condition 4.f of Order
AO-001-SO-T217-03-2010

The Commission grants TNPI’s application to raise the restricted MOP for the NPS 20 Clarkson Junction to Toronto Airport Loop, on the basis that it has met the Order AO-001-SO-T217-03-2010 Condition 4.f requirements.

Condition 4.f, as varied,^{Footnote 1} states:

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

With respect to Condition 4.f.i, the Commission finds that TNPI provided sufficient information to demonstrate that it has implemented Conditions 4.a to 4.e of Order
AO-001-SO-T217-03-2010 as they pertain to the NPS 20 Clarkson Junction to Toronto Airport Loop. TNPI provided a summary of the documentation that it submitted prior to this application to meet the requirements of Conditions 4.a to 4.e, which the Commission or its predecessor, the National Energy Board, considered and, where appropriate, approved.

TNPI submitted an engineering assessment to meet the Condition 4.f.iii requirements and stated that it also provides evidence to meet the requirements of Condition 4.f.ii. The engineering assessment was prepared in accordance with the newest edition of CSA Z662-23 Clause 10.1 and concludes that the integrity condition of the NPS 20 Clarkson Junction to Toronto Airport Loop will not be negatively affected within 36 months of the date of TNPI’s application. The Commission finds that TNPI has met the requirements of Condition 4.f.ii.

The Commission is satisfied that the engineering assessment includes all of the information required by Condition 4.f.iii and demonstrates that the NPS 20 Clarkson Junction to Toronto Airport Loop is safe to operate at the authorized MOP. The Commission finds that the engineering assessment meets the requirements of Condition 4.f.iii.

Application to vary the ASO to remove the NPS 20 Clarkson Junction to Toronto Airport Loop from Schedule B, pursuant to section 69 of the CER Act

The Commission grants TNPI’s request to vary Order AO-001-SO-T217-03-2010 to remove the NPS 20 Clarkson Junction to Toronto Airport Loop from Schedule B.

Subsection 69(1) of the CER Act provides that the Commission may review, vary, or rescind any decision or order it makes. There is no automatic right of review; rather, the Commission has a discretionary power to review its decisions, which it must exercise sparingly and with caution. ^{Footnote 2}

The Commission considers applications for review through a two-step process.^{Footnote 3} In the first step, the Commission considers whether the applicant has raised a doubt as to the correctness of the decision based on an error of law or jurisdiction, changed circumstances or new facts that have arisen since the close of the original proceeding, or facts that were not placed in evidence in the original proceeding and that were then not discoverable by reasonable diligence.^{Footnote 4} The application must also include the nature of the prejudice or damage that has resulted or will result from the decision or order.^{Footnote 5} If the Commission finds that the applicant has met the first step, then it will proceed to the second step and review the decision on its merits.

The Commission finds that TNPI has met the first part of the test on the basis that the information TNPI provided to meet the Condition 4.f requirements of Order
AO-001-SO-T217-03-2010 demonstrate a change in circumstances for the NPS 20 Clarkson Junction to Toronto Airport Loop relative to those that existed at the time that it was listed in Schedule B.

The Commission further finds that TNPI would be prejudiced if Order AO-001-SO-T217-03-2010 was not varied to remove the NPS 20 Clarkson Junction to Toronto Airport Loop from Schedule B, because Condition 2 of Order AO-001-SO-T217-03-2010 requires TNPI to operate the pipelines and pipeline segments listed in Schedule B at 70 per cent of their approved MOPs, such that TNPI would be required to operate the NPS 20 Clarkson Junction to Toronto Airport Loop at 70 per cent of its MOP. Given that the Commission has approved TNPI to operate the NPS 20 Clarkson Junction to Toronto Airport Loop at the authorized MOP, based on TNPI’s demonstration that it is safe to do so, there is no reason for Order AO-001-SO-T217-03-2010 to continue to apply to the NPS 20 Clarkson Junction to Toronto Airport Loop.

Accordingly, the Commission has decided to grant TNPI’s request to vary Order
AO-001-SO-T217-03-2010 to remove the NPS 20 Clarkson Junction to Toronto Airport Loop from Schedule B in attached Amending Order AO-010-SO-T217-03-2010.

Yours sincerely,

Signed by

Ramona Sladic
Secretary of the Commission

Attachment

c.c. Jane Keast, TNPI, Email

Attachments

BEFORE the Commission of the CER on 11 March 2024.

WHEREAS the CER regulates the construction and operation of the TNPI pipeline system;

AND WHEREAS on 20 September 2016, the National Energy Board issued a letter decision and Order AO-001-SO-T217-03-2010, which it varied on 24 October 2016 and 11 April 2017, and the Commission further varied on 17 July 2020, 8 June 2022, 6 September 2022, 1 November 2022, 30 November 2022, 1 December 2022, and 5 September 2023;

AND WHEREAS the Commission received an application from TNPI, dated
14 July 2023, to:

1. raise the restricted maximum operating pressure (MOP) for the NPS 20 Clarkson Junction to Toronto Airport Loop for a return to service at its authorized MOP, in accordance with Condition 4.f of Order AO-001-SO-T217-03-2010, as amended; and
2. vary Order AO-001-SO-T217-03-2010, as amended, to remove the NPS 20 Clarkson Junction to Toronto Airport Loop from Schedule B, pursuant to section 69 of the CER Act;

AND WHEREAS on 12 March 2024, the Commission approved TNPI’s application to raise the restricted MOP to 8274 kPa for the NPS 20 Clarkson Junction to Toronto Airport Loop;

AND WHEREAS on 12 March 2024, the Commission granted TNPI’s request to vary Order AO-001-SO-T217-03-2010, as amended;

AND WHEREAS Order AO-001-SO-T217-03-2010, as amended, remains in force and is further amended by this Amending Order;

IT IS ORDERED that, pursuant to subsection 69(1) of the CER Act, Order
AO-001-SO-T217-03-2010, as amended, is varied by deleting Line 8 in Schedule B to remove the NPS 20 Clarkson Junction to Toronto Airport Loop. The varied Schedule B is attached to this Amending Order.

THE COMMISSION OF THE CANADA ENERGY REGULATOR

Signed by

Ramona Sladic
Secretary of the Commission

SCHEDULE B

Order AO-010-SO-T217-03-2010
Trans-Northern Pipelines Inc.
Variation to Safety Order AO-001-SO-T217-03-2010

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

Date modified:

2024-04-12