Filing Manual - Guide B - Abandonment

Section 50 of the OPR states:

50. An application made by a company under section 74 of the NEB Act for leave to abandon a pipeline or a section of one shall include the rationale for the abandonment and the measures to be employed in the abandonment.

Goal

The application will include the rationale for the abandonment and the measures to be employed in the abandonment as well as evidence that:

  • the proposed abandonment will be carried out in a technically safe manner;
  • potential environmental, socio-economic, economic and financial effects are identified and addressed; and
  • all landowners and other persons potentially affected are sufficiently notified and have their rights protected.

B.1 Filing Requirements - Engineering

1. Confirm abandonment activities will follow the requirements of the latest version of CSA Z662.

2. Provide:

  • a rationale for the abandonment;
  • a complete description of the facilities being abandoned;
  • an assessment of the potential safety hazards related to the facility abandonment and the mitigative actions planned to reduce such hazards; and
  • a plan outlining how the facility will be prepared for abandonment and how it will be monitored, if necessary, during its abandonment.

B.2 Filing Requirements - Environment and Socio-Economic Assessment


Additional information...

An ESA is required for applications for abandonment. See Section A.2 in Guide A for filing requirements in addition to those in this Guide.

1. Describe the different ecological settings found at the project location and identify the different land uses that are or will be in place, if known.

2. Identify the ecological settings (identified in 1) in which each of the project components to be abandoned is located.

3. Describe and justify the methods that will be used to clean up any contamination found at the project component sites and:

  • quantify the amount of contamination that may exist;
  • describe special handling techniques that will be used; and
  • identify regulatory requirements that will be followed for cleanup and disposal.

4. For each project component, describe:

  • how and when it will be abandoned;
  • how the environment will be reclaimed; and
  • how the abandonment is appropriate for the ecological setting where it is located.

5. Use an appropriate level of detail and technical description to allow regulators, the public and others to thoroughly understand what is being proposed.

6. Describe any regulatory requirements for reclamation and remediation and how these requirements will be met.

7. Identify historical spills and releases that have occurred on the area to be abandoned.

B.3 Filing Requirements - Economics and Finance

1. Provide details of the costs associated with the proposed abandonment, including details of any exposure to future liabilities.

2. Confirm that funding is and will be available to finance the proposed abandonment.

3. Provide the original book cost of the facilities and accumulated depreciation to the retirement date.

4. Provide accounting details as outlined in the Gas Pipeline Uniform Accounting Regulations (GPUAR) or Oil Pipeline Uniform Accounting Regulations (OPUAR), including details of whether the retirement is ordinary or extraordinary.

B.4 Filing Requirements - Lands Information

1. Describe the location and the dimensions of the existing RoW and facility lands that would be affected by the abandonment.

2. Provide a map or site plan of the pipeline or facility to be abandoned.

3. Identify the locations and dimensions of known temporary workspace required for the abandonment.

4. Describe any easement proposed to be acquired for the abandonment, including:

  • the location and dimensions of the easement;
  • the discussions with the landowners regarding the easement;
  • any concerns expressed by the landowner regarding the easement or the lands proposed to be acquired; and
  • how the applicant proposes to address any landowner concerns.

5. Provide the details of any reclamation plans developed in consultation with landowners affected by the proposed abandonment.

6. If any easement will be surrendered:

  • identify the lands where easement will be surrendered;
  • describe the contingency plans that will be put in place to protect the landowner should subsequent land issues arise following the abandonment of the facility and surrender of the easement;
  • describe the company's discussions with the landowners;
  • describe any concerns raised by landowners regarding surrendering of the easement; and
  • file evidence to demonstrate that affected landowners have been advised of the proposed abandonment and that if the Board approves the abandonment, the Board will no longer have jurisdiction over the pipeline.

Guidance

Environment and Socio-Economic

Abandonment Plan

An application to abandon the operation of a pipeline could include an abandonment plan tailored to the individual project. This plan could also be used for input from stakeholders such as:

  • landowners;
  • occupants;
  • land managers;
  • lessees;
  • municipal agencies;
  • shippers; and
  • upstream and downstream users.

If an abandonment plan is shared with stakeholders, any comments from the stakeholders should be considered and, where appropriate, incorporated into the plan.

Environmental, safety and land-use issues may all be considered in the application. The application may also address reclamation of sites where surface facilities have been or will be removed and the management of any pipeline components that will be maintained in a deactivated state.

Abandonment-in-Place or Removal of Pipeline

Assessments and studies could be provided to support the choice between abandonment-in-place or removal of the pipeline. If the pipeline is to be removed, assess the impact of the removal on the environment. If the pipeline is to be abandoned in place, refer to CSA Z662, clause 10.

Additional Information

The following discussion papers were authored collectively by the NEB, Alberta Energy and Utilities Board, Canadian Energy Pipeline Association and Canadian Association of Petroleum Producers and provide guidance on responsible abandonment and methods of approach:

Further information can also be obtained in the CCME National Guidelines for Decommissioning Industrial Sites, available on the CCME Web site (http://www.ccme.ca/).

Economics and Finance

Abandonment Costs

The costs associated with abandoning the facilities should include:

  • if the facilities will not be abandoned in place, an itemization of any costs for:
    • dismantling;
    • demolishing and removing the facilities;
    • reclaiming the site; and
    • carrying on other remediation work and applicable salvaging work;
  • if the facilities will be abandoned in place, an itemization of any associated costs;
  • for each cost, the expected salvage proceeds and the timing of expected receipt of the proceeds;
  • the methodology used to estimate costs;
  • a description of any funding, financial guarantees or other arrangements designed to cover those costs; and
  • the details of expected associated section 52 or 58 applications.
Liability Exposure

The exposure to future liabilities should include:

  • a description of the types of each liability and an estimate of the associated cost; and
  • a statement of which abandonment work is associated with a legal obligation and which work is not.
Financing

The confirmation that funding is and will continue to be available to fund the abandonment should include:

  • an explanation of the economic feasibility of the abandonment; and
  • the expected toll treatment and toll impact, including:
    • an explanation of how the tolls were determined; /li>
    • the expected impact, if any, on shippers and other parties; and
    • a statement regarding the extent of shippers' and other parties' support for any toll increase.
Accounting

The GPUAR or OPUAR prescribe the accounting treatment for both ordinary and extraordinary retirements, including informing the Board if the gain or loss on an extraordinary retirement is material.

Next Steps...

File the completed application. Applicants are encouraged to include the completed relevant checklists from Appendix I.

 

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Date Modified:
2011-10-28