Guidance Notes for the National Energy Board Processing Plant Regulations

28 July 2003

Table of Contents

1.0 INTRODUCTION  
2.0 INTERPRETATION
AND APPLICATION
(SECTIONS 1 TO 3)
  • 2.1 Interpretation (Section 1)
  • 2.2 Application (Sections 2 and 3)
3.0 PART 1
GENERAL
(SECTIONS 4 TO 15
INCLUSIVE)
  • 3.1 Standards and Compliance (Sections 4 and 5)
  • 3.2 Submissions (Sections 6 to 8)
  • 3.3 Pressure Equipment (Section 9)
  • 3.4 Quality Control and Quality Assurance (Section 10)
  • 3.5 Fire Prevention (Section 11)
  • 3.6 Competency (Section 12)
  • 3.7 Safety Program (Section 13)
  • 3.8 Environmental Protection Program (Section 14)
  • 3.9 Contractors (Section 15)
4.0 PART 2
DESIGN
(SECTIONS 16 TO 25
INCLUSIVE)
  • 4.1 Detailed Designs (Section 16)
  • 4.2 Emergency Power (Section 17)
  • 4.3 Fluid Containment and Control (Sections 18 to 20 and Section 25)
  • 4.4 Fire Control (Sections 21 and 22)
  • 4.5 Detection and Alarm Devices (Sections 23 and 24)
5.0 PART 3
CONSTRUCTION
(SECTIONS 26 AND 27)
  • 5.1 Safety and Protection of Property and Environment (Section 26)
  • 5.2 Construction Safety Manual (Section 27)
6.0 PART 4
TESTING
AND EXAMINATION
(SECTIONS 28 AND 29)
  • 6.1 Pressure Testing (Section 28)
  • 6.2 Non-Destructive Examination (Section 29)
7.0 PART 5
OPERATION
(SECTIONS 30 TO 45
INCLUSIVE)
  • 7.1 Operations Manuals (Section 30)
  • 7.2 Safe Work Permits (Section 31)
  • 7.3 Staffing (Section 32)
  • 7.4 Plant Hazard and Safety Management (Sections 33, 34, 39, 40 and 45)
  • 7.5 Emergency Preparedness and Response (Sections 35 to 38 Inclusive)
  • 7.6 Integrity Management Program (Section 41)
  • 7.7 Deactivation and Reactivation (Sections 42 and 43)
  • 7.8 Training Program (Section 44)
8.0 PART 6
REPORTING
(SECTIONS 46 TO 51
INCLUSIVE)
  • 8.1 Incidents and Occurrences (Section 46)
  • 8.2 Hazards (Section 47)
  • 8.3 Flaring (Section 48)
  • 8.4 Suspension of Operations (Section 49)
  • 8.5 Number of Employees (Section 50)
  • 8.6 Material Balance (Section 51)
9.0 PART 7
AUDITS,
INSPECTIONS
AND RECORDS

INCLUSIVE)
  • 9.1 Audits and Inspection (Sections 52 and 53)
  • 9.2 Competency Assessment (Section 54)
  • 9.3 Records (Section 55)
Appendix I - Guidance Notes for the Design, Construction, Operation and Abandonment of Pressure Vessels and Pressure Piping (03 July 2003)
Appendix II - Security and Emergency Preparedness and Response Programs

1.0 Introduction

These Guidance Notes have been prepared by the Board to bring additional clarity to the National Energy Board Processing Plant Regulations (PPR or Regulations) and to provide non-mandatory guidance to assist companies in achieving compliance.

The Guidance Notes are structured for easy use. Sections of the Regulations are grouped (where appropriate) under logical headings and (where appropriate) the goal of the Regulations (or these groupings of different sections of the Regulations) is provided. In all cases, this is followed by guidance which provides information that may be of use to companies in ensuring the design, construction, operation and abandonment of their processing plants is carried out in accordance with the Regulations.

The Regulations reflect the Board's progression towards the development of goal oriented regulations and clearly place the onus on companies for ensuring the safety of persons and the protection of property and the environment.

The actual methods used to meet the specific requirements of the Regulations are at the discretion of the company. The onus is on the company to maintain adequate records and demonstrate to the Board the adequacy and effectiveness of the methods employed to achieve compliance.


2.0 Interpretation and Application
(Sections 1 to 3)

2.1 Interpretation
(Section 1)

2.1.1 Regulatory Text

1. The definitions in this section apply in these Regulations.
"abandon" means to remove permanently from service. (cessation d'exploitation)
"Act" means the National Energy Board Act. (Loi)
"construction" means building or fabricating and includes any clearing or grading required for the purpose of building or fabricating. (construction)
"deactivate" means to remove temporarily from service. (mettre hors service)
"environment"

means the components of the Earth and includes

(a) air, land and water;

(b) all layers of the atmosphere;

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

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

"incident" means an occurrence that results or could result in a significant adverse effect on property, the environment or the safety of persons. (incident)
"operate" includes repair, maintain, deactivate and reactivate. (exploiter)
"pressure piping" means an assembly of pipes, pipe fittings, valves, safety devices, pumps, compressors and other equipment that is designed for the transport of fluids and is connected to a boiler or pressure vessel. (tuyauterie sous pression)
"pressure vessel"

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

(a) of more than 152 mm, if it is not in water service; or

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

"processing plant" means a plant used for the processing, extraction or conversion of fluids and all structures located within the boundaries of the plant, including compressors and other structures integral to the transportation of fluids. (usine de traitement)
"release" includes discharge, spray, spill, leak, seep, pour, emit, dump and exhaust. (rejet)

2.1.2 Guidance

Section 48 of the Act provides the Board with the authority to make regulations (subject to the approval of the Governor in Council) governing the design, construction, operation and abandonment of a pipeline and providing for the protection of property and the environment and the safety of the public and of the company's employees in the construction, operation and abandonment of a pipeline.

The definition of "pipeline" is provided within section 2 of the Act as:

"pipeline" means a line that is used or to be used for the transmission of oil, gas or any other commodity and that connects a province with any other province or provinces or extends beyond the limits of a province or the offshore area as defined in section 123, and includes all branches, extensions, tanks, reservoirs, storage facilities, pumps, racks, compressors, loading facilities, interstation systems of communication by telephone, telegraph or radio and real and personal property and works connected therewith, but does not include a sewer or water pipeline that is used or proposed to be used solely for municipal purposes;

By definition, processing plants are "pipelines".

Companies may consider reporting to the Board events having the potential to attract public and/or media attention or which have or may have significant adverse effects on property, the environment or the safety of persons regardless of whether or not they meet the strict definition of an "incident".

The definition of "incident" as it applies to reporting should be viewed in light of the NEB's responsibilities for ensuring the safety of persons as well as the protection of the environment.

Companies should consider the following occurrences as incidents in determining what should be reported to the Board

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

(b) a release of toxic substances which extends beyond the plant boundaries;

(c) an unintended fire or explosion where the fire or explosion result in or may result in significant adverse effects;

(d) an unintended or uncontained release of liquids in excess of 1.5 m3;

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

(f) the unintended release of hydrogen sulphide or other poisonous gasses within the plant; or

(g) the operation of a plant beyond its design limits or any operating limits imposed by the Board.

As added explanation of (a), a serious injury would include as a minimum

(a) the fracture of a major bone ("major bone" includes skull, mandible, spine, scapula, pelvis, femur, humerus, fibula, tibia, radius, and ulna.);

(b) the amputation of a body part;

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

(d) internal or external haemorrhage which prevents an employee from performing all of the duties normally required for the position on any day subsequent to the day the injury was incurred;

(e) third degree burns;

(f) unconsciousness; or

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

Regardless of the volume of fluids released, the effects on the health and safety of persons and the environment should be considered in determining if a release should be reported.

In addition to the terms defined within section 1, the terms "audit", "inspection", "program", "manual", "procedure", "practice", "plan" and "process" appear throughout the Regulations and within this document. For clarity, these terms are generally understood to have the following meanings:

audit A systematic, documented verification process of objectively obtaining and evaluating evidence to determine whether specified activities, events, conditions, management systems or information about these matters conform with audit criteria, and communicating the results of the process to the company.
inspection An on-site and site-specific methodical examination and assessment of a company's construction, operation, or abandonment activities against its regulatory obligations, standards, acceptable industry practice, and the suitably qualified inspector's professional judgment. An inspection focuses on compliance requirements, usually pursuant to conditions on a certificate or order or regulatory requirements, at an individual facility at a given point in time.
program A documented set of procedures (and possibly a policy) that accomplish a goal. The program will set out how the procedures (and policy) are linked and how each one contributes toward the goal. The documentation alone is not enough to comprise a program; the procedures must be carried out and the results evaluated to determine if the program is meeting its intended purpose.
manual A document (or series of documents) containing information on methods which could be employed to accomplish a goal. This information will be detailed and comprehensive. The document(s) will be organized for ease of use.
procedure A documented series of steps followed in a regular and definite order. The procedure will set out who is responsible for completing each step and how the results are communicated.
practice A repeated or customary action which is well understood by persons who are authorized to carry it out.
plan A detailed, documented formulation of a procedure for action.

Manuals, programs and procedures may be available in any format (such as electronic or print) provided the format has been agreed upon by the company and the documents are readily accessible as appropriate.

Finally, the terms "practical" and "practicable" are used and are generally understood to have the following meanings:

practical Typically used to describe an activity or function that satisfies a need in the most economical and time expedient manner while considering factors such as social and economic impacts and constructability as well as maintaining safety and the protection of property and the environment.
practicable Means that something can and will be done even if it may not be practical.

2.2 Application
(Sections 2 and 3)

2.2.1 Regulatory Text

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

(2) These Regulations do not apply in respect of

(a) well-site facilities; or

(b) field facilities.

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

2.2.2 Guidance

The company should determine the boundaries of the processing plant.

Plant boundaries may be set at the fenced perimeter of the plant location or may occur within the fenced perimeter at points where the design standards used change from pipeline standards (such as CSA Z662) to process piping standards (such as ASME B31.3). Boundaries between the processing plant and pipelines subject to the Onshore Pipeline Regulations, 1999 should be identified and clearly understood by company employees working at the plant site as well as other personnel as appropriate. Consideration should be given to establishing boundaries at logical points such as inlet and outlet valves or flanges. Where practical, companies may consider installing signs or other identifiers which visibly indicate the boundaries of the plant.

NEB regulated pipeline facilities outside of the boundaries of the plant which are operated by the company must be designed, constructed, operated or abandoned in accordance with the Onshore Pipeline Regulations, 1999 (provided these pipelines fall under the jurisdiction of the Board).

There may be small isolated "processing" facilities upstream of the processing plant such as dehydration units or sweetening facilities. These facilities are beyond the scope of the Regulations and are regulated under the Onshore Pipeline Regulations, 1999 (provided these facilities fall under the jurisdiction of the Board).


3.0 Part 1
General
(Sections 4 to 15 Inclusive)

3.1 Standards and Compliance
(Sections 4 and 5)

3.1.1 Regulatory Text

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

(a) these Regulations; and

(b) the Canada Occupational Health and Safety Regulations.

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

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

3.1.2 Guidance

The word "company" bears the same meaning as it does in the Act. Thus, the company which holds the Certificate or the Order must take all reasonable steps to ensure that all agents, contractors, operators, etc. are aware of and comply with the Regulations, follow good safety and environmental practices, and obtain all necessary approvals and permits from responsible authorities (municipal, provincial and federal authorities as appropriate).

Companies should be able to demonstrate their compliance with the Canada Occupational Health and Safety Regulations (COSHR).

On 15 August, 2001 NEB regulated pipelines were exempted from the requirements of COSHR Part V with respect to pressure vessels and pressure piping. Boilers remain subject to COSHR.

Requirements for the management of pressure vessels and pressure piping are found within section 9 of the Regulations and in clause 3.3 of these Guidance Notes.

3.2 Submissions
(Sections 6 to 8)

3.2.1 Regulatory Text

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

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

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

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

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

(ii) a hazard to the safety of persons.

8. A company shall comply with an order of the Board made under these Regulations.

3.2.2 Guidance

Section 7 provides additional information to companies by informing them that the Board may request companies to file designs, specifications, programs, manuals, procedures, measures, plans or documents during the application process or when the Board has reason to believe they may pose a risk to the safety of persons or the protection of property and the environment.

There are alternative methods for requiring filings or for the Board to acquire information in addition to the powers contained within section 7. The Board has published Guidelines for Filing Requirements which provide companies with an understanding of the minimum requirements for applications under the Act.

Section 49 of the Act provides designated NEB Inspection Officers with the power to obtain copies of "any information contained in any books, records or documents, or in any computer systems, that the inspector believes on reasonable grounds contain any information relating to the design, construction, operation, maintenance or abandonment of a pipeline." Companies are required by law to provide Inspection Officers with "all reasonable assistance" to enable the officer to carry out their duties.

3.3 Pressure Equipment
(Section 9)

3.3.1 Regulatory Text

Goal: The company has a comprehensive program for the design, construction, operation and abandonment of pressure vessels and pressure piping.

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

(2) The program referred to in subsection (1) shall include provisions for document handling and record retention.

3.3.2 Guidance

Programs for the design, construction, operation and abandonment of pressure vessels and pressure piping may include items contained in the Guidance Notes for the Design, Construction, Operation and Abandonment of Pressure Vessels and Pressure Piping which are included with these Guidance Notes in Appendix I.

Human Resources Development Canada (HRDC) has authority over boilers as set out within Part V of COSHR. The Board has regulatory authority over pressure vessels and pressure piping.

3.4 Quality Control and Quality Assurance
(Section 10)

3.4.1 Regulatory Text

Goal: Quality control and quality assurance principles are applied to the design, construction, operation and abandonment of a processing plant.

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

3.4.2 Guidance

Quality Assurance (QA) is the process whereby customers, producers or any other interested parties are satisfied that standards are consistently met.

Quality Control is a process whereby conformity with standards is checked and steps are taken if conformity is not achieved.

The rigor of the QA program may be commensurate with the scale of the project and the intended application.

QA programs may be comprised of the elements of a recognized standard, such as the ISO 9000 series of QA standards and could include:

(a) requirements for company (or its agents) evaluation of the manufacturer's or supplier's quality management system prior to the award of any contract;

(b) requirements for company (or its agents) audits and inspection during design, manufacture and fabrication, shipping, storage, etc.;

(c) requirements for random and progressive inspection, testing or verification;

(d) inspection procedures and inspector qualifications;

(e) requirements for handling and review of documentation;

(f) a system for managing non-conformances to specifications; and

(g) procedures for company acceptance of products or services.

In addition, Quality Assurance and Quality Control programs for processing plants may include or address the following elements:

(a) organizational responsibilities;

(b) change management policies;

(c) joining methods;

(d) non-destructive examination practices, policies and procedures;

(e) material identification and traceability;

(f) safety;

(g) plant operations;

(h) standard work instructions;

(i) management responsibility;

(j) design control;

(k) purchasing;

(l) inspection and testing;

(m) document production and document control;

(n) contract management;

(o) process control;

(p) management of non-conformances;

(q) training;

(r) quality records;

(s) internal audits;

(t) statistical techniques;

(u) metering; and

(v) worksite and overall plant security.

Programs, policies and procedures can be developed in accordance with the risk which they present and may include preventative measures wherever practical.

Companies seeking guidance with respect to quality programs are directed to the International Organization for Standardization's ISO 9000 series of standards.

Companies may consider the history of compliance and satisfactory performance when developing programs aimed at ensuring that products or services from specified consultants, manufacturers or suppliers are acceptable for their intended purpose.

3.5 Fire Prevention
(Section 11)

3.5.1 Regulatory Text

Goal: Companies demonstrably assess and mitigate the risk of unintentional ignition of flammable vapours through providing adequate spatial separation.

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

3.5.2 Guidance

Risk analysis is the use of available information to estimate the risk, arising from hazards, to individuals or populations, property, or the environment. Companies may refer to Appendix G of ASME B31.3 for guidance on what could be considered as examples of acceptable risk analysis tools. Provincially (or other) prescribed separation distances may be used to determine the spatial separation of sources of ignition from potential sources of flammable vapours subject to consideration of risk.

Although not specifically referenced or required, consideration should also be given to the prevention of ignition of flammable particulate emissions.

3.6 Competency
(Section 12)

3.6.1 Regulatory Text

Goal: Companies can demonstrate that their employees have the requisite knowledge and have been provided with the necessary training to perform their assigned tasks.

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

3.6.2 Guidance

The company's employees must be trained, knowledgeable and competent in all tasks which may affect their safety or which relate to the protection of property and the environment prior to task assignment. Employees should be certified by appropriate authorities for tasks where certification is required.

The company should verify employee knowledge periodically through oral or written examination, practical exercises and training programs.

Companies should appropriately document competency in defined tasks prior to their assignment to employees.

3.7 Safety Program
(Section 13)

3.7.1 Regulatory Text

Goal: Companies have a safety program which ensures that construction, operation and emergency activities are conducted safely.

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

3.7.2 Guidance

The safety program may include:

a) the safety policy;
(b) reference to requirements of the Canada Labour Code, Part II and pertinent regulations made there under and (where applicable) provincial regulatory requirements including:

(i) the responsibility and accountability for safety;
(ii) safety committees;
(iii) safety education and training;
(iv) the safety inspection system;
(v) the safe work practices and procedures;
(vi) industrial hygiene requirements such as monitoring for exposure to hazardous substances;
(vii) incident investigations, reporting, corrective actions, and statistics; and

(c) a process for management review to determine program suitability and provide for continual improvement.

3.8 Environmental Protection Program
(Section 14)

3.8.1 Regulatory Text

Goal: Processing plants are designed, constructed, operated and abandoned in a manner that protects the environment.

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

3.8.2 Guidance

An environmental protection program enables a company to systematically manage its environmental performance. Program components should be developed to anticipate, prevent, and mitigate conditions that have the potential to adversely affect the environment, therefore managing environmental risk throughout the lifecycle of the processing plant.

An environmental protection program should define the responsibilities, practices, procedures, processes, and resources for achieving, reviewing, and maintaining the company's environmental performance.

For guidance in developing an environmental protection program companies may use the applicable provisions of the ISO 14000 series of Standards as a reference. Consistent with ISO 14000 principles, an environmental protection program should be embraced by employees and driven by senior management.

The components of an environmental protection program could include:

(a) an environmental policy and commitment statement;

(b) a planning process which includes taking into account legislative and other requirements and deciding on pollution prevention and control measures that may include details on the management of:

(i) Waste Handling, Storage and Disposal - type, quantity of waste produced and method of final disposal; location of land fills and other waste management facilities, on site incineration of solid wastes, segregation of waste, containment, labelling, measures implemented to minimize the amount of waste produced etc.;

(ii) Pits, Ponds and lagoons - type, size and location of pits and ponds, pond contents, pond liners, leak detection and collection systems;

(iii) Flare Pits - active and inactive including details on the condition of use, type of liner, condition of liner, contents, remediation activities for inactive flare pits; alternative measures to flaring considered and implemented as appropriate;

(iv) Storage Facilities - aboveground and underground tankage, locations type of service, capacity, type of corrosion protection, type of secondary containment, method of leak detection type of overfill protection results of integrity testing and inspections;

(v) Sulphur Storage Facilities - amounts stored, in what form, liner used, methods for minimizing sulphur dust, managing of runoff water, monitoring of sulphur storage area;

(vi) Vegetation - present and historical use of herbicides, impacts on vegetation from the processing plant;

(vii) Soil Protection, Reclamation and Remediation Measures;

(viii) Air Quality and Emissions - provisions for modelling and monitoring NO2, SO2, NOX and green house gases, benzene emission control from glycol dehydrators, and ambient air quality guidelines and standards;

(ix) Noise- provisions for monitoring (when appropriate) and compliance with municipal and provincial requirements beyond the plant boundaries;

(x) Aquatic Resources and Water Quality - baseline hydrological and groundwater monitoring data, surface water quality management and drainage, monitoring industrial run off volume and design, ongoing monitoring programs, and groundwater protection measures;

(xi) Chemicals of Concern - asbestos, polycyclic aromatic hydrocarbons, Naturally Occurring Radioactive Materials, metals, process chemicals, lube oils, jet fuel, and mercury;

(xii) Spill Containment for process areas and loading/offloading areas;

(xiii) Environmental Contingency Plans (descriptive procedures to deal with abnormal occurrences which have the potential to negatively affect expected environmental performance). The occurrences covered by Environmental Contingency Plans need not be limited to environmental emergencies and could include occurrences which have the potential to result in significant variations to normal operations;

(c) an implementation process for:

(i) implementing relevant pollution prevention, reduction, and control measures;

(ii) applying defined roles and responsibilities;

(iii) environmental training, awareness and competency (including contractors); and

(iv) consultation and communication procedures;

(d) a process for review and corrective action for:

(i) monitoring and measurement procedures;

(ii) corrective and preventive action procedures;

(iii) documentation and records procedures; and

(iv) internal program audits to determine if the system or program has been implemented and maintained as planned; and

(e) a management review to determine program suitability and continual improvement.

3.9 Contractors
(Section 15)

3.9.1 Regulatory Text

Goal: Companies provide for the safety of contractors working within their processing plants.

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

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

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

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

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

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

3.9.2 Guidance

The company and contractor responsibilities for safety and regulatory compliance should be clearly defined at the beginning of a project.

Contractors should be aware of the following:

(a) the requirements as set out in the construction safety manual or in the operations manuals;

(b) reporting requirements;

(c) a description of the project specific safety management structure;

(d) pertinent federal and provincial regulatory requirements; and

(e) project specific hazards as well as safety commitments and requirements.

The Regulation prescribes that a company must instruct contractors in all pertinent practices and procedures pertaining to their work prior to their employment at the plant. In addition, companies may consider requiring tangible evidence from contractors of their agreement to abide by the terms and conditions of their contract and the practices and procedures required by the company with respect to construction and operations. This evidence could be in the form of a written acknowledgement signed by the contractor indicating that they have read and/or been instructed on pertinent practices and procedures and that they agree to abide with the requirements therein.


4.0 Part 2
Design
(Sections 16 to 25 Inclusive)

4.1 Detailed Designs
(Section 16)

4.1.1 Regulatory Text

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

4.1.2 Guidance

Detailed designs and supporting information could demonstrate:

(a) conformance to the requirements established by the company to ensure the design is fit for its intended service;

(b) compliance with applicable regulations, codes, and standards;

(c) consideration of unique design circumstances and specific direction on special or unique requirements as appropriate;

(d) the appropriateness of selected or specified materials for their intended purpose; and

(e) provision for adequate and effective protection of property and the environment, security, and the safety of all persons.

Designs may also include provision for compliance with the Environmental Protection Program referred to within section 14 of the Regulations and clause 3.8 of these Guidance Notes.

4.2 Emergency Power
(Section 17)

4.2.1 Regulatory Text

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

4.2.2 Guidance

In determining what an appropriate source of emergency power might be, companies may consider the requirements for:

(a) operating the plant's controls and providing sufficient energy for the safe shut down or deactivation of systems relying on electrical energy;

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

(c) maintaining services essential to the safety of persons and the protection of the environment.

Emergency sources of power for essential systems may be designed so they can be tested periodically and should be in compliance with the requirements of the COSHR.

Emergency shut down (ESD) systems and controls may be designed to provide satisfactory service under all conditions.

Additional consideration may be given to design features such as lighting, emergency egress, confined space, ventilation, and electrical classification.

4.3 Fluid Containment and Control
(Sections 18 to 20 and Section 25)

4.3.1 Regulatory Text

Goal: Companies design, construct, operate and abandon their processing plants in a manner which ensures that fluids within the processing plant are managed appropriately with respect to the safety of persons and the protection of property and the environment.

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

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

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

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

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

(d) the building is cross-ventilated.

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

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

4.3.2 Guidance

The location of fluid containment and controlled release systems and devices should be chosen so as to maximize employee and public safety and to minimize environmental impacts, including any threats to the quality of soil, surface water and groundwater, environmentally sensitive areas, and the health of humans, animals and plants during the construction, operation or abandonment of the storage.

In order to prevent soil, groundwater and surface water contamination and to protect the environment, the design of storage may include consideration of:

(a) primary containment storage devices complete with integrity monitoring and enhancement features;

(b) secondary containment systems;

(c) overflow and leak detection systems;

(d) spill prevention;

(e) loss control programs (including fire suppression systems where appropriate);

(f) weather protection systems;

(g) operating procedures;

(h) integrity management;

(i) nuisance noise and odours;

(j) environmental risk;

(k) groundwater monitoring programs; and

(l) documentation and records control.

Reliefs should be designed so that their use does not create a hazard. Design of reliefs should consider but not be limited to the following:

(a) ability to test, calibrate and maintain the relief;

(b) size of relief;

(c) location;

(d) velocity of exiting gas;

(e) stresses induced by discharge;

(f) constituent analysis of vented material;

(g) direction of discharge;

(h) environmental effects;

(i) noise;

(j) odours; and

(k) risk analysis.

4.4 Fire Control
(Sections 21 and 22)

4.4.1 Regulatory Text

Goal: Companies provide appropriate fire suppression and control systems within their processing plants.

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

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

4.4.2 Guidance

Designs for flaring systems should include:

(a) documented requirements for the performance of flare systems; and

(b) measures to prevent flames from entering the process piping.

Risk analysis is the use of available information to estimate the risk, arising from hazards, to individuals or populations, property, or the environment. Companies may refer to Appendix G of ASME B31.3 for guidance on what could be considered as examples of acceptable risk analysis tools. Industry accepted codes, regulations or standards may be used to determine the appropriate level of fire suppression in conjunction with the assessment of risk as described in section 22.

4.5 Detection and Alarm Devices
(Sections 23 and 24)

4.5.1 Regulatory Text

Goal: Alarms and hazard detection devices are installed and used within processing plants to provide appropriate and effective warnings of hazardous conditions.

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

(a) explosive and flammable gases;

(b) toxic or noxious gases; and

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

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

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

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

4.5.2 Guidance

The installation location of audible and visual alarms should be chosen to ensure that the alarms provide effective and timely notification of the events they are designed to detect.

Detection systems appropriate for the specific hazard identified should be installed in areas of high risk and where they provide the greatest benefit. They should be installed in a manner that allows alarms to be quickly and reliably transmitted to the appropriate personnel.

Detection systems should be designed so that they:

(a) are appropriately placed based upon risk analysis;

(b) can be tested periodically to ensure they are functioning correctly;

(c) completely cover all areas of high risk;

(d) provide continuous recording where appropriate;

(e) are connected to the alarm system in a manner that will allow information to be quickly and reliably transmitted; and

(f) are used whenever feasible to initiate mitigative action.


5.0 Part 3
Construction
(Sections 26 and 27)

5.1 Safety and Protection of Property and Environment
(Section 26)

5.1.1 Regulatory Text

Goal: Construction activities are performed in a safe manner with minimized impacts on property and the environment.

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

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

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

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

5.1.2 Guidance

The Board recognizes that construction activities can not take place without the introduction of hazards associated with the construction and without some impacts on property and the environment.

Companies are required to ensure that construction activities are undertaken in a manner which minimizes negative effects on personnel, property and the environment.

Further, during construction, companies should ensure that adequate environmental mitigative measures are effectively implemented to minimize effects on the environment.

In addition, Companies are required to ensure that everyone who may be exposed to the elevated risks associated with construction activities understands all essential information necessary for their personal safety. This is particularly important during commissioning operations when hazardous process conditions are first introduced to the plant.

5.2 Construction Safety Manual
(Section 27)

5.2.1 Regulatory Text

Goal: Companies shall have a readily accessible and comprehensive construction safety manual.

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

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

5.2.2 Guidance

Companies should submit their construction safety manual to the Board at least four weeks prior to anticipated start of construction activities. Practices set out in the construction safety manual should meet applicable federal and, where appropriate, provincial occupational health and safety requirements.

All changes to the construction safety manual should be submitted to the Board as they are made. The construction safety manual should set out:

(a) the general safety and environmental practices and procedures to be followed in the construction of the plant;

(b) the special safety and environmental practices and procedures necessitated by the conditions, location or features specific to the construction of the plant;

(c) the names, positions and qualifications of persons authorized to halt a construction activity under the requirement of subsection 15(1)(d) of the Regulations and in clause 3.9 of these Guidance Notes;

(d) the safety and environmental related responsibilities of company and contractor managers, supervisors and workers;

(e) procedures for ensuring that Occupational Health and Safety requirements are met; and

(f) details of the program required under section 13 of the Regulations and in clause 3.7 of these Guidance Notes.


6.0 Part 4
Testing and Examination
(Sections 28 and 29)

6.1 Pressure Testing
(Section 28)

6.1.1 Regulatory Text

Goal: The company can demonstrate that pressure containing elements of the processing plant have been properly pressure tested.

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

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

(3) The company, or the agent who supervised the test, shall date and sign any logs, charts and other records of the test.

6.1.2 Guidance

Pressure testing should meet the requirements of the standard or code used to design the objects or systems under test. Testing could consider or include:

(a) a diagram of the test section and the location of all measurement points and instrumentation;

(b) the specifications of the pipe, components or equipment to be tested;

(c) a description of the instruments to be used, the degree of accuracy, and the calibration data and certificates of those instruments;

(d) the procedures to be used during testing including filling, pressurization, depressurization, dewatering (as applicable), and the associated environmental protection procedures to be implemented;

(e) an identification of the test medium and any additives;

(f) the test duration;

(g) the minimum and maximum permitted test pressures;

(h) the standards of acceptability;

(i) a description of the safety precautions to be implemented during the pressure test;

(j) test head assembly pressure testing and non-destructive examination requirements;

(k) an assessment of the design compliance of the test heads;

(l) consistent use of metric units for measurement;

(m) the measures to be taken for the protection of property, the environment and the safety of persons in the event of a rupture during testing; and

(n) any required permits for withdrawal and discharge of test medium(s).

6.2 Non-Destructive Examination
(Section 29)

6.2.1 Regulatory Text

Goal: The company can demonstrate that welded joints have been inspected appropriately and in sufficient quantity and detail to determine their fitness for service conditions.

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

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

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

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

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

6.2.2 Guidance

Companies are required to develop a program for the non-destructive examination of welded joints. This includes all welds regardless of their intended service (e.g. pressure containing welds and structural welds).

Companies are required to non-destructively examine all piping welds unless they have developed an alternative program based on an assessment of risk.

Programs where less than 100% of all piping welds are proposed to be examined should include:

(a) reference to the applicable design and fabrication standards;

(b) documented consideration of risk including an analysis based on the physical characteristics of the fluids;

(c) consideration of progressive sampling;

(d) evaluation of individual welder performance through focused examination; and

(e) other factors affecting the decision including costs savings and the availability of personnel.


7.0 Part 5
Operation
(Sections 30 to 45 Inclusive)

7.1 Operations Manuals
(Section 30)

7.1.1 Regulatory Text

Goal: Companies have readily accessible and comprehensive operations manuals.

30. (1) A company shall

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

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

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

7.1.2 Guidance

Operations Manuals may include:

(a) the operating limits of equipment within the plant and the methods for maintaining these limits under all operating conditions;

(b) an accurate and current listing of materials and the associated Material Safety Data Sheets (MSDS) for product(s) processed within the plant or associated with the operation of the plant;

(c) the policies and procedures for accident and fire prevention;

(d) the policies and procedures for response to and investigation of incidents and emergencies;

(e) the safety related responsibilities of company and contractor managers, supervisors, and workers;

(f) operator duties and responsibilities;

(g) personal protective equipment (PPE) requirements;

(h) commissioning and start-up procedures;

(i) operating and shutdown procedures;

(j) certification and competency requirements for operations staff;

(k) management of change procedures;

(l) procedures for failure analyses and investigations;

(m) procedures for repairs and maintenance activities including precautions to be taken in the event of product release during these activities;

(n) regulatory reporting requirements; and

(o) environmental and safety implications of the release of product or chemicals referred to in (b).

7.2 Safe Work Permits
(Section 31)

7.2.1 Regulatory Text

Goal: A safe work permit system is employed for activities within processing plants.

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

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

7.2.2 Guidance

Safe-work permit systems may contain procedures which outline or include:

(a) the clear establishment of responsibilities;

(b) hazard classification based on the location of work;

(c) a list of hazards which could reasonably be expected to be encountered;

(d) the need for inspection or supervision;

(e) the emergency procedures relevant to the work;

(f) the required personal protective equipment;

(g) the use of risk assessment for all but routine activities; and

(h) periodic audits to determine the effectiveness of the permit system.

Specific information on permits should include

(a) the name(s) of worker(s) performing the work;

(b) the responsibilities of all parties associated with the work;

(c) name and signature of person authorizing the work;

(d) the date and time issued and the date and time it expires;

(e) a listing of any other permits required for the work;

(f) a description of the task;

(g) identification of hazards;

(h) any task specific personal protective equipment requirements;

(i) any pre-job meeting requirements;

(j) the energy status of equipment related to the work;

(k) any atmospheric testing or monitoring requirements;

(l) requirements for communications;

(m) any safety watch requirements; and

(n) any special condition(s) or instructions.

7.3 Staffing
(Section 32)

7.3.1 Regulatory Text

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

7.3.2 Guidance

The Board expects that companies will ensure that the number of staff on duty is sufficient at all times for the requirements of a plant's safe, routine, and emergency operations.

For plants operating in a semi-attended mode, companies should ensure that staffing is appropriate for the complexity of the plant.

Shift records should be maintained which include the names of personnel and the duties they performed while on shift.

7.4 Plant Hazard and Safety Management
(Sections 33, 34, 39, 40 and 45)

7.4.1 Regulatory Text

Goal: Safety and environmental hazards within processing plants are managed appropriately.

33. A company shall take all reasonable steps to ensure that

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

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

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

39. A company shall

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

(b) retain for analysis, in the event of an incident, data recorded at the processing plant;

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

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

(e) post signs warning of potential hazards.

40. A company shall

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

(b) document and maintain records of all testing, repairs and replacement of parts in the hazard-detection devices.

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

7.4.2 Guidance

The Board recognizes that maintenance activities can not take place without the introduction of hazards associated with the maintenance and without introducing potential impacts on property and the environment.

Companies are required to ensure that maintenance activities are undertaken in a manner which minimizes negative effects on personnel, property and the environment.

In addition, Companies are required to ensure that everyone who may be exposed to the elevated risks associated with maintenance activities understands all essential information necessary for their personal safety.

Companies are required to ensure the safety of persons and the continued protection of property and the environment during operation in the event of hazard alarm or detection device failure or deactivation.

Hazard alarms and detection devices should be periodically tested to ensure they are functioning correctly. These devices should be tested by simulating the event which would normally be detected or which would trigger an alarm. Testing frequency should be based upon a documented analysis of maintenance routines and risk.

Procedures should be developed for situations where hazard detection alarms or shutdown devices are proposed to be or have been bypassed or rendered inoperable. These procedures should include requirements for authorization, records and signage. In addition, they should contain requirements for documenting and ensuring that other means have been employed to achieve an equivalent level of safety.

Equipment records should be maintained for all devices and could include:

(a) equipment description;

(b) model;

(c) unique identifier; and

(d) calibration (status, methods, records, etc.).

New equipment should be calibrated and tested prior to use.

Highly visible signage identifying the following information should be posted at intervals along the perimeter of the plant as well as at the start of access roads and at all gates:

(a) name of facility;

(b) name of owner/operator;

(c) emergency contact number;

(d) location (including GPS co-ordinates);

(e) local contact number;

(f) no trespassing notification;

(g) hydrogen sulphide/poisonous gas hazard identification (if appropriate); and

(h) name of regulatory authority.

Within the plant appropriate signage should be placed clearly identifying hazard(s) in accordance with WHMIS. Signage should be placed in consideration of employees as well as for emergency personnel who may be called upon to respond to an incident.

Main emergency shutdown valves should be clearly identified within the plant site. Main valves remote from the plant which would be used to isolate the plant in the event of an emergency should be identified through signage and/or colour coding. Main valves should be equipped with position indicators where appropriate.

Piping systems may be identified by standard colour coding throughout the plant.

Plants should be equipped with appropriate 2-way communications equipment and should have well developed communications protocols.

This could include:

(a) intrinsically safe radios for appropriate personnel;

(b) a plant base station in the control room; and

(c) accessible units at entry points to the plant for use in the event of an emergency.

Companies should have procedures in place to maintain and test communications.

In addition to 2-way communication, plants must be equipped with systems for continuously recording plant operating data for later analysis in the event of an incident. Where critical information pertinent to plant operations may be lost as a result of an incident, consideration should be given to having this information stored remotely in real time or ensuring the information is protected by some other means.

Visitors to the plant site must be made aware of all hazards they could reasonably encounter while on the plant site. Orientations should be documented for all visitors and records should include

(a) name of person(s);

(b) date and time of orientation;

(c) location of orientation;

(d) name of person responsible for conducting the orientation;

(e) means of ensuring the effectiveness of the orientation;

(f) description of areas where visitor will be while on the plant site; and

(g) signature of persons being oriented and the person conducting the orientation.

7.5 Emergency Preparedness and Response
(Sections 35 to 38 Inclusive)

7.5.1 Regulatory Text

Goal: Companies are adequately prepared for emergencies.

35. A company shall

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

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

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

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

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

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

7.5.2 Guidance

See All Company Letter dated 24 April 2002 included in Appendix II.

7.6 Integrity Management Program
(Section 41)

7.6.1 Regulatory Text

Goal: Companies have a comprehensive integrity management program which ensures that processing plants are designed, constructed, operated and abandoned in a manner that provides for continued safe, reliable and environmentally responsible service.

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

7.6.2 Guidance

Integrity management programs within processing plants should provide for the continued safe operation of the plant through active and ongoing assessment and maintenance of all elements and components within the plant. The system should allow for the monitoring and maintenance of visible and accessible elements and components as well as buried or inaccessible elements and components.

An Integrity Management Program may include the following components:

1. Management System

A management system which may include:

(a) the program scope, including a description of systems within the plant, goals, and objectives;

(b) the organizational lines of responsibility for the integrity management program, including the reporting requirements to senior management and across the organization;

(c) the training of management and staff required to develop and execute the integrity management program;

(d) the qualifications of consultants and contractors required to develop and execute the integrity management program;

(e) the methods of keeping abreast of industry practice and current research activities;

(f) the methods to be used to manage change in respect of the design, construction, operation and abandonment of the plant; and

(g) the methods to be used to measure the effectiveness of the program.

2. Records Management System

A records management system which may:

(a) allow timely access to records regarding systems within the plant. Where practicable, the system may include information on the original materials and all modifications and repairs such as:

(i) design and manufacturers information for equipment within the plant;

(ii) line lists for pressure piping systems and drawings indicating the start and end point of pressure piping systems;

(iii) material, manufacturer and date of manufacture, category, seam and girth weld type, grade, welder identification, non-destructive examination records, heat number and weld maps;

(iv) coating and insulation types used for pipe, joints and tie-ins, including manufacturer, application method and weather conditions at the time of application;

(v) maintenance history;

(vi) mapping and piping (including piping and instrumentation diagrams);

(vii) all pressure test data and records, maximum allowable working pressure, construction drawings, non-destructive examination data and reports, vibration surveys, corrosion control and cathodic protection records including design and survey results;

(viii) inspection records of pressure relieving and emergency shutdown devices; and

(ix) valve inspection records;

(b) allow for documentation of condition monitoring and mitigation programs and past condition monitoring and mitigation decision analyses; and

(c) provide for reviews of integrity management program effectiveness as outlined in 1(g).

3. Condition Monitoring

Condition monitoring is intended to be a comprehensive, proactive, consistent, process where the various components of the process are reviewed on an ongoing basis and updated as necessary. A condition monitoring program may include:

(a) periodic inspections (frequency of inspections may be based on engineering principles) with internal and external ultrasonic instruments as well as other tools as appropriate;

(b) an engineering assessment (a documented assessment of variables using engineering principles) of facilities to address integrity. Time-dependent, non-time-dependent failure modes and geotechnical hazards could be considered and investigated in the engineering assessment. The engineering assessment may consider the results of such methods as pressure testing and the use of non-destructive examination tools and procedures. The engineering assessment should consider the stresses imposed by vibration, thermal expansion and contraction, cyclic loading and service;

(c) the risk assessment methods to be used when assigning priorities for integrity evaluation of facilities or systems. Factors which may be included in the risk assessment are items such as: product handled; location; stress levels; product pressure; equipment age and condition; coating age and condition; cathodic protection data, and inspection data. Consideration may be given to determining the area affected (consequence) by a product release;

(d) monitoring and surveillance programs for slope movement which could impact the plant site, depth of cover of buried piping and consideration of the stresses imposed by surface loading, frost heave and thaw settlement;

(e) the methods used to evaluate and maintain plant integrity and the criteria for their application, which may include:

(i) the use of the appropriate tools and the methods used to verify tool accuracy;

(ii) the hydrostatic re-testing procedure;

(iii) the corrosion control monitoring methods (such as probes and coupons) as well as cathodic protection surveys;

(iv) the methods used to evaluate remaining life of equipment;

(v) the methods used to verify the coating type and condition (including insulation);

(vi) the methods used to establish equipment inspection intervals;

(vii) the methods used to inspect equipment, tankage, pressure vessels, pressure piping, and boilers; and

(viii) any other methods for defect detection utilized;

(f) the procedures used to track, analyze and trend the condition of the plant; and

(g) the steps to be taken to evaluate the cause of any failures including the minimum investigation and documentation.

4. Mitigation Program

A mitigation program to ensure integrity could consider:

(a) the criteria and procedures for evaluation of imperfections and repair of defects;

(b) the procedure for performing consequence analyses to establish repair priorities;

(c) the criteria and procedures for consideration of such measures as pipe replacement, pipe repair, hot taps, hot work, excavation procedures, maintenance welding, re-coating, hydrostatic re-testing, and reduction in working pressure (temporary or permanent);

(d) the criteria and methods for repair of tanks and pressure vessels;

(e) an outline of the short-term (i.e., 1 to 3 year(s)) and long-term (i.e., 4 to 10 years) mitigation program plans and priorities.

7.7 Deactivation and Reactivation
(Sections 42 and 43)

7.7.1 Regulatory Text

Goal: The Board is notified of processing plant deactivations and reactivations and that deactivations and reactivations are carried out in a manner which provides for the safety of persons, the protection of property, and the environment.

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

(2) The company shall set out in the notification the reasons for the deactivation or the cessation of operations and the procedures used or to be used in the deactivation.

43. (1) If a company proposes to reactivate a processing plant that has been deactivated for 12 months or more or to resume operating a processing plant that has not been operated for 12 months or more, the company shall notify the Board of that fact before the reactivation or the operation resumes.

(2) The company shall set out in the notification the reasons for the reactivation or the resumption of operations and the procedures to be used in the reactivation.

7.7.2 Guidance

Deactivation is defined in section 1 as meaning "to remove temporarily from service". In practice, it is accepted that portions of a plant, though maintained in a deactivated state, may never be returned to service, may be maintained in a deactivated state for an unspecified length of time, and may ultimately be addressed in an application to abandon the operations of the plant.

Deactivation may impose a higher level of risk to the integrity of the plant (or systems there-in) depending on the measures specified for the maintenance of the deactivated systems or plant.

Deactivation of plants (or systems within plants) may impact upstream and downstream users of the plant. Companies proposing deactivations could consider using a consultative approach with stakeholders similar to that which is used for applications made pursuant to section 58 of the Act.

The company should notify the Board of any reduction in service associated with a deactivation. Where a reduction of service would result, the Board may consider the deactivation in accordance with sections 71 and 72 of the Act.

Companies are required to notify the Board of any plans for the deactivation of the plant (or portions thereof) for 12 months or more.

Notification should address all issues arising from the deactivation which relate to the protection of property and the environment as well as the safety of persons.

Notification could include:

(a) the reasons for deactivation or reactivation;

(b) the date removed from (or returned to) service;

(c) provisions for the management of change;

(d) the general condition of equipment when deactivated or reactivated;

(e) the means of isolation or reactivation;

(f) the instrumentation status;

(g) the lay-up conditions;

(h) the inspection and testing requirements during deactivation or prior to reactivation; and

(i) the intent of future equipment use (if any).

7.8 Training Program
(Section 44)

7.8.1 Regulatory Text

Goal: Companies can demonstrate that people are appropriately trained in the applicable safety and environmental, operating and emergency procedures.

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

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

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

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

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

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

7.8.2 Guidance

Training programs should be directed towards the operation of the processing plant in a safe and effective manner and should include provisions for the safety of persons and the protection of property and the environment.

The training program may include the following:

(a) the policies regarding training within the company;

(b) the general objectives of the training program;

(c) the types and format of training;

(d) a description of the testing methods and practical (mock, simulated or table-top) exercises, and their frequency; and

(e) a means of ensuring the effectiveness of the training.

Training programs should be developed in accordance with all regulatory requirements including those found within the Canada Labour Code.


8.0 Part 6
Reporting
(Sections 46 to 51 Inclusive)

8.1 Incidents and Occurrences
(Section 46)

8.1.1 Regulatory Text

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

8.1.2 Guidance

The term "incident" is defined in section 1 of the Regulations and additional guidance on how a company may determine if an event is an incident is provided in clause 2.1 of these Guidance Notes.

In addition to the reporting of incidents as defined within the Regulations, companies are reminded of their obligation to report under the COSHR as well as under the Transportation Safety Board Regulations (TSB Regulations).

COSHR Reporting Requirements

Employers must report (either verbally or by facsimile) accidents, occupational diseases or other hazardous occurrences to a health and safety officer within the NEB as soon as possible but no later than 24 hours after they become aware that the hazardous occurrence has had one of the following results:

(a) the death of an employee;

(b) a disabling injury to two or more employees;

(c) the loss by an employee of a body member or a part thereof or the complete loss of the usefulness of a body member or a part thereof;

(d) the permanent impairment of a body function of an employee;

(e) an explosion;

(f) damage to a boiler or pressure vessel that results in fire or the rupture of the boiler or pressure vessel; or

(g) any damage to an elevating device that renders it unserviceable, or a free fall of an elevating device.

The term "disabling injury" is defined within the COSHR as

"disabling injury" means an employment injury or an occupational disease that

(a) prevents an employee from reporting for work or from effectively performing all the duties connected with the employee's regular work on any day subsequent to the day on which the injury or disease occurred, whether or not that subsequent day is a working day for that employee,

(b) results in the loss by an employee of a body member or part thereof or in the complete loss of the usefulness of a body member or part thereof, or

(c) results in the permanent impairment of a body function of an employee;

Written reports are required where an investigation discloses that the hazardous occurrence resulted in one of the following:

(a) a disabling injury to an employee;

(b) an electric shock, toxic atmosphere or oxygen deficient atmosphere that caused an employee to lose consciousness;

(c) the implementation of rescue, revival or other similar emergency procedures; or

(d) a fire or an explosion.

Written reports must be submitted to the Regional Safety Officer c/o the National Energy Board within 14 days of the occurrence using a Hazardous Occurrence Investigation Report Form which can be obtained from the HRDC Web site at http://www.hrdc-drhc.gc.ca/fas-sfa/eforms/labohsnm1e.shtml.

TSB Requirements

The TSB Regulations require that the operator or employees of the operator report "reportable commodity pipeline accident(s)" and "reportable commodity pipeline incident(s)" as soon as possible and by the quickest available means after they occur. Commodity pipelines are "pipelines" defined by the TSB Regulations as:

a pipeline that is used for the transportation of commodities and includes all branches, extensions, pumps, racks, compressors, loading facilities, storage facilities, reservoirs, tanks, preparation plants, separation plants, interstation systems of communication and property and works connected therewith;

The terms "reportable commodity pipeline accident" and "reportable commodity pipeline incident" are defined within the TSB Regulations as:

"reportable commodity pipeline accident" means an accident resulting directly from the operation of a commodity pipeline, where

(a) a person sustains a serious injury or is killed as a result of being exposed to

(i) a fire, ignition or explosion, or

(ii) a commodity released from the commodity pipeline, or

(b) the commodity pipeline

(i) sustains damage affecting the safe operation of the commodity pipeline as a result of being contacted by another object or as a result of a disturbance of its supporting environment,

(ii) causes or sustains an explosion, or a fire or ignition that is not associated with normal operating circumstances, or

(iii) sustains damage resulting in the release of any commodity;

"reportable commodity pipeline incident" means an incident resulting directly from the operation of a commodity pipeline, where

(a) an uncontained and uncontrolled release of a commodity occurs,

(b) the commodity pipeline is operated beyond design limits,

(c) the commodity pipeline causes an obstruction to a ship or to a surface vehicle owing to a disturbance of its supporting environment,

(d) any abnormality reduces the structural integrity of the commodity pipeline below design limits,

(e) any activity in the immediate vicinity of the commodity pipeline poses a threat to the structural integrity of the commodity pipeline, or

(f) the commodity pipeline, or a portion thereof, sustains a precautionary or emergency shut-down for reasons that relate to or create a hazard to the safe transportation of a commodity;

TSB and NEB Reporting Requirements

Incidents as defined within the PPR, reportable commodity pipeline incidents, and reportable commodity pipeline accidents (collectively hereafter referred to as "incidents") should be reported to the Transportation Safety Board (TSB) Occurrence Hot Line 819-997-7887 (collect calls accepted).

Preliminary and detailed incident reports must also be directed to the TSB at the address indicated below. The TSB will forward all applicable reports to the NEB.

Transportation Safety Board of Canada

E-mail: Roger.Hornsey@tsb.gc.ca (or)
Larry.Gales@tsb.gc.ca
Conventional Mail: Place du Centre, 4th Floor
200 Promenade du Portage
Fax: 819-953-7876
Hull, Quebec
K1A 1K8

As soon as practicable after becoming aware of an incident (typically within 1 hour), a company should communicate all available factual information to the TSB. To correct any information provided previously or to provide additional information, a company should file a preliminary incident report, which should:

(a) describe the incident, including the events leading up to and following the incident;

(b) list all relevant agencies contacted and persons affected by the incident;

(c) summarize any losses or impacts to people (e.g., injury, fatalities), environment (e.g., air quality, water quality, vegetation, terrain, habitats, or animals), production (e.g., interruption or reduction in service), and property;

(d) identify any unsafe acts or conditions contributing to or causing the incident;

(e) provide details on any emergency response; and

(f) state any corrective actions taken or planned to be taken to minimize the effects of the incident.

A detailed incident report should correct any information provided in the preliminary incident report and/or provide additional information. The detailed incident report should

(a) provide any details regarding the failure mechanism and detailed analysis of failed components (if applicable);

(b) identify the underlying causes of the incident;

(c) update the progress of any corrective actions taken or planned to be taken to minimize the effects of the incident;

(d) state any actions taken or planned to be taken to prevent a similar incident; and

(e) include any specialized reports (e.g. reports from metallurgical laboratories or environmental consultants).

8.2 Hazards
(Section 47)

8.2.1 Regulatory Text

Goal: Companies manage hazards appropriately and proactively and notify the Board as required.

47. A company shall

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

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

8.2.2 Guidance

Companies should report proven or physically existing hazards that have the potential to contribute to or result in an incident. Companies are not required to report electronically detected alarm conditions until the existence of an actual hazard has been verified.

Hazards reported under section 47 of the Regulations should be considered incidents and should be reported as set out in section 46 of the Regulations and as described within clause 8.1 of these Guidance Notes.

8.3 Flaring
(Section 48)

8.3.1 Regulatory Text

Goal: The Board is notified of burning or flaring that results from emergency conditions and is informed of any adverse effects on safety, property or the environment.

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

8.3.2 Guidance

Emergency burning includes flaring resulting from equipment failure or from severe plant upsets. Routine flaring for pigging or maintenance need not be reported to the Board. Where emergency burning or flaring has or is likely to have an adverse and measurable effect on persons or the environment, it should be reported as an incident to the TSB as set out in section 46 of the Regulations and in clause 8.1 of these Guidance Notes.

Reporting may include:

(a) identification and constituent analysis of flared fluids;

(b) reason for burning;

(c) volume;

(d) duration;

(e) opacity of emissions;

(f) immediate effects (including toxicity);

(g) dispersion analyses;

(h) assessment of long term effects (health, property and environment); and

(i) the methods used to obtain the above.

Companies are reminded that environmental legislation is jointly administered by the responsible provincial and federal authorities. Reporting should meet the requirements of all jurisdictions.

8.4 Suspension of Operations
(Section 49)

8.4.1 Regulatory Text

Goal: The Board is notified of interruptions to plant operations.

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

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

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

(2) In addition to the notification under subsection (1), the company shall provide the following information to the Board and to the appropriate authorities of the province in which its processing plant is located:

(a) details of the operations to be suspended;

(b) the reason for the suspension;

(c) the duration of the suspension; and

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

8.4.2 Guidance

The Board should be informed of the consequences and opportunities associated with suspension of operations of a plant (or portions thereof).

More specifically, companies should consider:

(a) informing the Board of suspensions or shutdowns where maintenance activities are planned (including details of the planned maintenance activities);

(b) providing the Board with information that could be sought by plant users or the press regarding suspension of operations; and

(c) providing any other information pertinent to the shutdown which the Board may reasonably be expected to know or be able to provide.

Companies do not have to report minor suspensions where the suspension of operation is considered a routine part of plant operations.

8.5 Number of Employees
(Section 50)

8.5.1 Regulatory Text

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

8.5.2 Guidance

In order to ensure compliance, companies could develop and maintain a list of all occupational and supervisory positions at the plant required for all operating conditions. This list could include the:

(a) number of employees required for discrete units or processes within the plant;

(b) position titles and position descriptions;

(c) names of persons filling the positions;

(d) training, experience and qualifications (including professional and occupational certification requirements as appropriate) required for the positions; and

(e) training, experience and qualifications of the persons filling the positions.

Personal information is protected under federal legislation.

8.6 Material Balance
(Section 51)

8.6.1 Regulatory Text

Goal: Companies are able to account for fluid flows within their processing plants.

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

8.6.2 Guidance

In order to ensure compliance, companies could develop and maintain a mathematical balance for plant operations based on the laws of conservation of matter and fluid mechanics which can be used to assess the efficiency of systems within the plant.

Balances should include all inlet streams, product streams and waste (including flaring). They should be done at the same frequency as would be required if a plant were subject to provincial legislation within the province in which the plant is situated but in no case should the frequency be less than monthly.

All metering for the balance should be performed at the plant. Companies should note that balances may be subject to audit by the Board and should be retained accordingly.

The following conditions should be considered in establishing an acceptable balance:

(a) changes in configuration, valving, or flow control during the balance period;

(b) accuracy of and correction factors applied to the measurement equipment used to measure each fluid handled;

(c) physical characteristics of the fluid(s) being measured;

(d) compressibility of different fluids;

(e) temperature variations in the process streams;

(f) flaring;

(g) volume shrinkage due to losses; and

(h) disposals.

Unique conditions should be recognised and taken into account in establishing an acceptable balance. Acceptable tolerances for the balance deviations should be established based on normal operating conditions.


9.0 Part 7
Audits, Inspections and Records
(Sections 52 to 55 Inclusive)

9.1 Audits and Inspection
(Sections 52 and 53)

9.1.1 Regulatory Text

Goal: Companies assess, and where necessary, improve their compliance with the Act, these Regulations and orders of the Board through audits and inspections which are carried out on a regular basis.

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

(a) Part III of the Act;

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

(c) these Regulations; and

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

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

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

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

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

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

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

9.1.2 Guidance

Internal compliance audits provide valuable information to the Board and to the company. The Board may inspect the data collected from these audits for regulatory purposes. Internal audits also allow a company to refine training with respect to compliance issues.

The frequency of audits should be based upon operations history and risk.

Internal Audits

The company may have documented procedures for conducting audits of its programs and systems.

The responsibility for managing audit(s) may be assigned to qualified individuals with a knowledge of audit principles and techniques and management skills relevant to the activities being audited.

Audits may be conducted on a regular basis to verify compliance with internal programs and systems designed to achieve compliance with regulatory requirements and may include:

(a) design;

(b) construction;

(c) operations;

(d) abandonment;

(e) environmental protection; and

(f) safety programs.

An audit report is required and should document findings and recommendations (including a plan for implementation of the recommendations). The audit report and audit records should be retained and should be available to Board auditors upon request.

Audits may be carried out by company employees or third parties provided they are independent of the activities being audited.

Audit programs may include:

(a) a description of the activities and areas to be covered in audits (scope and objectives);

(b) frequency of audits;

(c) responsibilities associated with managing and conducting audits;

(d) communication plan for audit results;

(e) auditor competency requirements;

(f) audit procedures;

(g) how corrective actions and follow up will be undertaken;

(h) records and reporting requirements; and

(i) management review.

Inspections

The company should/may have:

(a) documented procedures for conducting inspections during the construction and operation of the plant (including the number and type of inspectors, reporting requirements, etc.);

(b) documentation outlining the roles, responsibilities, qualifications, duties and tasks of inspectors;

(c) documentation pertaining to the scope of inspections; and

(d) plans for corrective action and follow up for deficiencies noted during inspections.

9.2 Competency Assessment
(Section 54)

9.2.1 Regulatory Text

Goal: Companies can demonstrate that employees have the necessary skills and competencies for the positions and responsibilities for which they are assigned.

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

9.2.2 Guidance

Audits could address:

(a) the possession of all necessary operational competencies; and

(b) a measure of employee understanding of changes in processes and their effects.

9.3 Records
(Section 55)

9.3.1 Regulatory Text

Goal: Processing plant records are managed in a manner which permits access and retrieval of records and preserves records required for the demonstration of compliance.

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

9.3.2 Guidance

Documents pertaining to the safe and environmentally sound design, construction, operation, transfer of ownership and abandonment of the plant should be controlled and maintained in a manner which allows retrieval of information as may be required in all reasonably foreseeable circumstances.

Companies should maintain records in accordance with this Regulation and the laws of general application which apply to processing plants.

Companies should consider the following points in the design of record handling and retention systems:

(a) unambiguous identification;

(b) ease of access and retrieval;

(c) prevention of damage and loss;

(d) security;

(e) systematic indexing and reference to units and activities;

(f) archiving (duration and place);

(g) guaranty of legibility;

(h) external records;

(i) end use;

(j) probability of retrieval and frequency of use;

(k) regulatory requirements and conditions; and

(l) the duration of retention.


Appendix I

Guidance Notes for the Design, Construction, Operation and Abandonment of Pressure Vessels and Pressure Piping (3 July 2003)


Appendix II

Security and Emergency Preparedness and Response Programs

Security and Emergency Preparedness and Response Programs (includes document entitled Expected Elements for Emergency Preparedness and Response Programs) - 24 April 2002 [PDF 257 KB]

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