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Filing Manual - Chapter 4 - Physical Projects

An applicant must:

  • complete the common application requirements outlined in Chapter 3;
  • confirm that the application is for a physical project;
  • address section 4.1 - Project Description and section 4.2 - Economic Feasibility, Alternatives and Justification; and
  • identify which Guides within Chapter 4 are applicable (see Figure 2-1) and provide the required information.

4.1 PROJECT DESCRIPTION

Goal

The application will include a clear description of the project, including:

  • project components, activities and location;
  • cost information;
  • construction schedules; and
  • related undertakings.

Filing Requirements

1. Identify and describe the project components, activities and related undertakings (e.g., pipe, valves, compressors, pumps, access roads and construction camps).

2. Describe the project location and the criteria used to determine the proposed route or site.

3. Describe how and when the project will be carried out.

4. Provide a description of any facilities to be constructed by others which are required to accommodate the proposed facilities.

5. Provide an estimate of the total capital costs and incremental operating costs, if applicable, for the following categories:

  • pipelines;
  • compression or pumps;
  • metering and regulating;
  • tankage;
  • other facilities;
  • allowance for funds used during construction (AFUDC) including rates used; and
  • capitalized overhead, showing a separate breakdown of the main cost elements such as materials, installation, land and land rights.

6. Indicate the expected in-service date.

Guidance

Description of Project Components

The description of the project components should address the following:

  • what the project is, including:
    • a complete list and thorough description of the project components and activities, including any components or activities required for the project to proceed (e.g., construction camps, means of access, electrical grid connections);
    • the location and size of any temporary work space;
    • a description of replacements or expansions of physical works and activities that are anticipated over the life of the project; and
    • preliminary drawings if available.
  • where the project is located, including:
    • a general description of the route or facility location, including identification of:
      • general land tenure;
      • current land uses;
      • nearest residences and communities;
      • unique features;
      • the positioning of project endpoints for linear developments;
      • the location of any alternate routes or sites considered; and
      • preliminary drawings, if available.
  • how the project will be carried out, including:
    • a thorough description of how project activities (e.g., clearing, hydrostatic testing, watercourse crossings, inspection, monitoring and surveillance programs) would be carried out during the construction and operations phases;
    • the anticipated workforce (i.e., person days and skills required for construction and operations activities); and
    • a list of other permits, licences, or authorizations that will be required before part or all of the project can proceed.
  • when the project would likely be carried out, including:
    • a breakdown of all construction and operations activities by major activity;
    • construction and operations schedules;
    • a description of how any changes to schedules can affect the project; and
    • a description of when proposed decommissioning and abandonment of the project might take place.

4.2 ECONOMIC FEASIBILITY, ALTERNATIVES AND JUSTIFICATION

Goal

The application demonstrates the economic feasibility of the proposed project, any alternatives evaluated, and the justification for the proposed project.

4.2.1 Filing Requirement - Economic Feasibility

Describe the economic feasibility of the project.

Guidance - Economic Feasibility

The discussion of economic feasibility should integrate information provided elsewhere in the application with information provided under Guide A, Subsection A.3 - Economics, to show that the applied for project is economically feasible.

4.2.2 Filing Requirements - Alternatives and Justification

1. Describe the need for the project, other economically-feasible alternatives to the project examined, along with the rationale for selecting the applied for project over these other possible options.

2. Describe and justify the selection of the proposed route and site including a comparison of the options evaluated using appropriate selection criteria.

3. Describe the rationale for the chosen design and construction methods. Where appropriate, describe any alternative designs and methods evaluated and explain why these other options were eliminated.

4. For projects subject to a CEA Act environmental assessment and for which "alternatives to" the project or "alternative means" are relevant factors to be considered, describe these in the project Environmental and Socio-economic Assessment (ESA).

FYI - Additional information...

See Subsection A.2.3 - Scope of the Environmental and Socio-Economic Assessment for information about "alternatives to the project" and "alternatives means" under the CEA Act.

Guidance - Alternatives

Alternatives Evaluated

In the context of economic feasibility, alternatives are other technically, economically and environmentally-feasible means of meeting the need for the project, such as a different:

  • transportation mode;
  • transmission system that could achieve the same purpose as the proposed facilities;
  • route or site;
  • facility design; or
  • construction method, including different means of development, implementation and mitigation.
Selection Criteria

Different project, routing, design and construction alternatives must be summarized and compared using criteria that justify and demonstrate how the proposed option was selected and why it is the preferred option. The level of detail provided by the applicant may reflect the more conceptual nature of the options.

When comparing project routing, design or construction options, elaborate on the following criteria, as appropriate:

  • engineering design;
  • economic feasibility or costs;
  • effect on reliability and security of the existing system;
  • demonstrated public concern; and
  • environmental and socio-economic constraints or potential effects.

4.2.3 Filing Requirement - Justification

Provide a justification for the proposed project.

Guidance - Justification

Describe the needs that would be satisfied by the project and demonstrate that, taking into consideration all viable alternatives available, the proposed project is the most appropriate option to meet the needs while serving the public interest.

Next Steps...

Determine which of the Guides included within this chapter are applicable to the application being filed and complete the necessary filing requirements.

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Date Modified:
2011-10-28