Compliance Verification Activity Report 1516-485 – Husky Oil Limited

Type of Compliance Verification Activity: Field Inspection

Activity #: 1516-485
Activity start: 2016-02-03
Activity End: 2016-02-04

Related Activity Numbers:  

Inspection Officer Number(s): 2507, 1482T, 2538T

Incident #:  
Landowner Complaint File #:  

Company: Husky Oil Limited

Facility Name(s): Condensate Border Pipeline. 8 km, NPS 8. From 03-12-050-01 W4M (Lloydminster Faccility, AB) to 10-01-050-28 W3M (East Till Junction, SK).

Province(s): Alberta, Saskatchewan

Theme(s): Environmental Protection

Compliance Tools Used:  

Purpose

This activity was undertaken to verify compliance with the following regulatory requirements.

 X  NEB Act

 X  Onshore Pipeline Regulations

    CSA Standard Z662 Oil and Gas Pipeline Systems

    Other:

    Electricity Regulations

    Processing Plant Regulations

    Pipeline Crossing Regulations Part I

    Pipeline Crossing Regulations Part II

Regulatory Instrument

XO-H046-008-2015

Observations & Discussion

Observations & Discussion
Date visited Location Theme Compliance Confirmed
2016-02-03 Creek (WC-02 SK)/CNRL Road HDD - S 1/2 -14-050-28 W3M Environmental Protection Yes
Observations

Creek (unnamed), WC-02 SK, horizontal directional drill (HDD) crossing completed. HDD excavation was backfilled, reseeded and matted with coconut matting on the east bank of the creek.

Company representative stated that site was reseeded with landowner-approved Certified No. 1 native seed mix.

Right-of-way (RoW) boundary and parallel adjacent pipelines were well-marked and delineated with stakes.

Temporary signage indicating ‘sensitive environment area', ‘no refueling within 100 m of water body’ and ‘pipeline crossing’ in place.

Two soil windrows were noted on the west side (HDD entry) of the creek in the grassland zone.

Three soil windrows were noted on the east side of the creek and roadway.

Topsoil piles were labeled with identification stakes and windrows had stakes identifying lift numbers (i.e. ‘first lift’ etc.).

Subsoil piles included large blocks of frozen clay till that the company indicated would be broken down once thawed before placing subsoil back into the trench.

All soil windrows had proper separation distances of 1 m or greater between each pile.

Observed company representative picking up garbage along the RoW.

Goal posts and snow fencing acted as overhead powerline and RoW access hazard warnings for vehicle operators accessing the RoW from the shoofly access on the east side of the road crossing.

Does observation specifically reference the Canadian Labour Code or it’s regulations? No
Observations & Discussion
Date visited Location Theme Compliance Confirmed
2016-02-03 Canal HDD - N 1/2 -12-50-28 W3M Environmental Protection Yes
Observations

Contractor representative reviewed the site Task Hazard Analysis prior to staff continuing on site.

Observed goal posts with flagging to identify location of nearby overhead powerlines on the approach to the HDD site.

RoW boundary was well-marked and delineated with stakes.

HDD was in progress at the time of the inspection. Orange safety snow fencing and warning signs clearly marked the HDD site.

Signage located at the entrance to the HDD entry site indicated an environmentally sensitive area, and the requirement that vehicles and equipment must refuel a distance of 100 m or more from the water body.

The narrow city drainage canal being drilled under was frozen to bottom. Contractor environmental resource specialist was conducting a "frac walk" across the canal and along the embankment during drilling activities.

Contingency trailer contained appropriate equipment and material in the case of a frac-out. Contractor representative stated that straw bales in the trailer were weed-free and injected with ammonia.

NEB Inspection Officer reviewed up-to-date daily logs, maintenance logs, and a monthly equipment/vehicle checklist from two contractor vehicles. Fire extinguisher in back of contractor's vehicle had up-to-date monthly inspection tag.

Three soil windrows and spoil pile had approximately 1 m separation distance between them. Soil windrows had stakes identifying the lift number and topsoil pile.

Prior sight hole near entry point was fenced-off and signed. Shallow drilling fluid was observed in the bottom of the excavation. Company representative indicated that the fluid would be handled according to provincial guidelines prior to backfilling the excavation.

Excavation near the exit point was fenced-off and signed. Staff observed backfilling of the sight holes in the excavation.

Does observation specifically reference the Canadian Labour Code or it’s regulations? No
Observations & Discussion
Date visited Location Theme Compliance Confirmed
2016-02-04 Canal HDD - N 1/2 -12-50-28 W3M Environmental Protection Yes
Observations

Contractor representative went over the site Task Hazard Analysis prior to staff continuing on site.

A frac-out involving the release of a company estimated 200 L of fresh water mixed with clay from the formation being drilled occurred the previous afternoon.

The fluid had been cleaned up prior to NEB staff's arrival on site, and all that remained of the release was a wetted area (about 6 m²) on the east embankment.

Staff observed that containment measures for the frac-out on the east embankment were in place, including a sandbag berm downslope of the release area.

Staff confirmed that appropriate clean-up procedures were being followed in accordance with commitments made in the Environmental Protection Plan (EPP). Company representatives indicated that appropriate disposal measures will be followed.

A vacuum truck, pails and shovels were being kept on the east embankment in the event of another frac-out.

Workers were observed filling additional sandbags, and then expanding the sandbag berm.

Contractor environmental resource specialist was on site overseeing the clean-up and to conduct a "frac walk" across the drainage canal and embankment during HDD completion.

Does observation specifically reference the Canadian Labour Code or it’s regulations? No
Observations & Discussion
Date visited Location Theme Compliance Confirmed
2016-02-04 Class III Wetlands (Unnamed KP 2+00, WC-01, WC-02 AB, SE-13-050-01 W4M) Environmental Protection Yes
Observations

Visually confirmed signage for wetland boundaries.

Observed separation in first and second lifts for unnamed wetland near KP 2+00. Identification stakes were placed on soil windrows.

Sites WC-01 and WC-02 AB were backfilled and native vegetated material was dispersed across the topsoil.

Does observation specifically reference the Canadian Labour Code or it’s regulations? No
Observations & Discussion
Date visited Location Theme Compliance Confirmed
2016-02-04 Canal HDD - N 1/2 -12-50-28 W3M Environmental Protection Yes
Observations

Frac-out of approximately 200 L of bentonite drilling fluid occurred on the RoW in the field east of the drainage canal and road. Frac fluid appeared to surface from a previously drilled vertical geotechnical hole at the site.

NEB staff verified implementation of frac-out mitigation measures.

Staff observed vacuum truck vacuuming fluid from the geotechnical hole for transport to a disposal facility. Free-standing fluid at the surface had already been vacuumed from an area approximately 6 m².

Company representatives confirmed that the impacted material from the affected area was removed and temporally placed in the exit pit (disposal pit), with final disposal to occur at an approved disposal facility.

No further drilling fluid seepage was observed at the previous frac-out on the east embankment by the canal.

Does observation specifically reference the Canadian Labour Code or it’s regulations? No

Compliance Summary

This notice reflects the observations of non-compliance with regulatory requirements or company commitments, made by the inspection officer during the compliance verification activity. If the corrective actions identified are implemented by the completion date, the matter is considered resolved. Any unresolved compliance matters will be addressed by the inspection officer and may be referred to NEB enforcement staff.

517 Tenth Avenue SW Calgary, Alberta  T2R 0A8
Telephone: 403-292-4800   Toll Free: 1-800-899-1265

Date modified: