ARCHIVED - National Energy Board Onshore Pipeline Regulations, 1999 (OPR-99) Final Audit Report for Integrity Management, Safety, Environmental Protection, Emergency Management, Crossings and Public Awareness Programs - Appendix VI - Public Awareness Program Audit Evaluation Table

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Appendix VI
Spectra Energy Management Inc. as General partner
and Agent for Spectra Energy Empress L.P. (SET-PTC)
Public Awareness Program Audit Evaluation Table

Table of Contents

1.0 POLICY AND COMMITMENT

1.1 Policy and Commitment Statements

Expectations:

The company shall have a policy approved and endorsed by senior management (the Policy). It should include goals and objectives and commit to improving the performance of the company.

References:Footnote 1

OPR-99 Sections 4, 47 and 48
CSA Z662-11 Clause 3.1.2 (a)

Assessment:

The PTC Pipeline has been operated by SET-PTC since 2005 and adheres to the Spectra Energy Transmission West (SET-West) environment, health and safety (EHS) policies and procedures. SET-West senior management participates in several committees that oversee the development and implementation of the policies that frame the EHS program. For the purposes of this audit, SET-PTC’s Public Awareness (PA) Program is considered to be part of its Safety Program. The Safety Policy present at the field locations is signed off on by senior management. SET-PTC management communicates the policy for its EHS program through an Operational Steering Committee.

The Policy was available at all sites visited for the audit and staff interviews confirmed that employees are aware of its existence. The purpose statement from the 2012 Policy states:

“To achieve our purpose we manage risk in everything we do, by continuously improving on:

  • Employee, contractor and vehicle safety;
  • Process safety;
  • Environmental Management;
  • Reliability; and
  • Cost management.”

Although SET-PTC was able to demonstrate that its Policy is signed off on by senior management and communicated to employees; the audit found that a reference to public safety is not explicitly written into the purpose statement. Interviews confirmed that, while staff members were familiar with the Policy, they could not identify the link between the Policy and public safety goals.

Due to the absence of public safety in the Policy, the current Policy at SET-PTC does not adequately support the PA Program. SET-PTC did not demonstrate that it prioritizes and mitigates the risks regarding its interactions with and obligations to third parties, and the public at large.

While it is understood that public safety is implied in the current Policy, the heightened importance of public safety is underscored by its express reference in the National Energy Board Act (NEB Act) and associated regulations.

Compliance Status: Non-Compliant

2.0 PLANNING

2.1 Hazards Identification, Risk Assessment and ControlFootnote 2

Expectations:

The company shall be able to demonstrate a procedure to identify all possible hazards. The company should assess the degree of risk associated with these hazards. The company should be able to support the rationale for including or excluding possible risks in regard to its environment, safety, integrity, crossings and awareness and emergency management and protection programs (management and protection programs). The company should be able to implement control measures to minimize or eliminate the risk.

References:

OPR-99 Sections 4(2), 37, 39, 40 and 41
CSA Z662-11 Clause 3.1.2 (f)

Assessment:

SET-PTC’s PA Program addresses the hazards to its pipeline posed by third party activity. The Public Awareness Coordinator (Coordinator) has implemented a plan to address the hazards that have been identified in the area. The Coordinator organizes and conducts all of the public awareness activities that correspond to the risks identified, such as new farming practices or high risk activities in certain areas. The risk assessment also informs the outreach plan for the PA Program in order to plan activities to correspond to the risks.

For the Coordinator who conducts the onsite landowner visits, there are also risks and hazards associated with going alone to remote properties. In order to minimize the risks associated with resident visits such as dogs on the loose and poor driving conditions, the Coordinator contacts each resident and Emergency Planning Zone (EPZ) resident to make appointments for public awareness meetings on a three-year cycle. By making appointments, the Coordinator allows the landowners to choose a time when they will be home to reduce the likelihood of wasted trips and to secure their pets if required.

SET-PTC was able to demonstrate that it has developed a hazard identification process for its PA Program that includes risk assessment both for the PA Program development as well as staff protection.

Compliance Status: Compliant

2.2 Legal Requirements

Expectations:

The company shall have a verifiable process for the identification and integration of legal requirements into its management and protection programs. The company should have a documented procedure to identify and resolve non-compliances as they relate to legal requirements which includes updating the management and protection programs as required.

References:

OPR-99 Sections 4 and 6
Pipeline Crossing Regulations (PCR) Part II Sections 4 and 5
CSA Z662-11 Clause 3.1.2(h)(i)

Assessment:

As part of the SET-West system, SET-PTC receives legal updates through the SET-West Regulatory Affairs group. The Regulatory Affairs group communicates regulatory changes via an email distribution list to all team leads. It is then up to the recipients on the distribution list to identify any changes that are relevant to their respective operational processes. According to SET-PTC staff, the Regulatory Affairs group also confirms deadlines for regulatory compliance such as the requirements of the NEB Exemption Order Respecting Crossings by Agricultural Vehicles or Mobile Equipment (Order). Document review showed that the legal requirements inventory kept at the SET-PTC office was last updated in 2009. There was no indication that recent updates, including updates to the NEB Act or the Order, were identified and incorporated into this legal requirements inventory.

While SET-PTC was able to demonstrate that communication of regulatory requirements is occurring, and that current personnel are incorporating some new legal requirements into the procedures, SET-PTC did not demonstrate that there was an effective process to verify whether all appropriate legal requirements were incorporated into procedures and implemented as required.

Compliance Status: Non-Compliant

2.3 Goals, Objectives and Targets

Expectations:

The company should have goals, objectives and quantifiable targets relevant to the risks and hazards associated with the company’s facilities and activities (i.e. construction, operations and maintenance). The objectives and targets should be measurable and consistent with the Policy and legal requirements and ideally include continual improvement and prevention initiatives, where appropriate.

References:

OPR-99 Sections 47 and 48

Assessment:

SET-PTC employees are subject to the goals established by SET-West. SET-West’s goals often include issues related to safety and operations. For example, one of this year’s corporate goals was for 100% of staff to complete the core safety training by 31 October 2012. Goals and targets for the Coordinator are established with the PTC Pipeline Manager. Then they are managed and tracked through performance management and tied to the organization-wide Short Term Incentive Pay (STIP) program.

Goals are established for the PA Program based on the activities of the previous year. To evaluate whether the PA Program has met its targets, the Coordinator reports on the outreach activities such as number of stakeholder visits conducted, number of trade shows attended and number of attendees at its contractor safety awareness breakfasts.

SET-PTC was able to demonstrate that there is a process for establishing goals, targets and objectives for its PA Program, and that related issues are monitored, measured, and used to form the basis of the PA Program strategy going forward.

Compliance Status: Compliant

3.0 IMPLEMENTATION

3.1 Organizational Structure, Roles and Responsibilities

Expectations:

The company shall have an organizational structure that allows its management and protection programs to effectively function. The company should have clear roles and responsibilities, which may include responsibilities for the development, implementation and management of the management and protection programs.

References:

OPR-99 sections 40, 47 and 48
CSA Z662-11 Clauses 3.1.2 (b)

Assessment:

At the time of the audit, there were less than 40 employees working on the SET-PTC pipeline system. As a result of the number of staff, most employees have a wide range of responsibilities. For public awareness, there is one person who coordinates and executes the PA Program for the SET-PTC assets in Saskatchewan. Reporting to the PTC Pipeline Manager, this Coordinator’s duties include conducting roughly 1500 landowner and resident visits every three years, annual contractor safety shows, as well as first responder and community liaison training in communities along the PTC pipeline. According to the job description, the Coordinator is also responsible for managing third party crossing applications and training records.

Although the Coordinator had a current job description which included all of the various responsibilities, the audit determined that SET-PTC could not demonstrate that it has a process in place to verify the ongoing suitability of the organizational structure as it applies to the PA Program. The absence of an evaluation of resources has resulted in the potential overburden of the Coordinator following a recent staff change. This past year when the Coordinator in Manitoba retired, the Saskatchewan Coordinator’s duties were expanded to include all PA Program duties in Manitoba. This additional work adds approximately 900-1000 residents, additional communities and first responders who all require visits every three years and education in order for SET-PTC to remain in compliance with regulatory requirements in safety and emergency response. Without a formal review process to determine whether or not the Coordinator is able to absorb the additional responsibilities and maintain the required level of effectiveness, SET-PTC cannot ensure that the PA Program will continue to meet regulatory requirements.

SET-PTC failed to demonstrate that it has implemented an adequate process to assess its organizational structure to ensure the appropriate resources are in place to maintain an effective PA Program.

Compliance Status: Non-Compliant

3.2 Management of Change

Expectations:

Expectations: The company shall have a management of change program. The program should include:

  • identification of changes that could affect the management and protection programs;
  • documentation of the changes; and
  • analysis of implications and effects of the changes, including introduction of new risks or hazards or legal requirements.

References:

OPR-99 Section 6
CSA-Z662-11 Clause 3.1.2(g)

Assessment:

SET-West is in the process of implementing a comprehensive Management of Change (MOC) process for all SET-West affiliates including SET-PTC. Interviews confirmed that SET-PTC will implement the MOC process being developed and implemented as part of the new Operations Management System (OMS) being introduced at SET-West. The SET-West MOC Descriptions of Affected Applications, Systems, Documentation and Processes document describes the circumstances for involving the PA Program in the MOC process. According to the document, the current MOC process dictates that the public awareness group is notified and evaluated for potential impacts when there are changes to the information system and databases. As it is currently an MOC triggered by changes to assets such as databases which are not in use at SET-PTC, the audit determined that there are no triggers for the MOC process to include the SET-PTC PA Program.

Although there are aspects of a functioning asset-based MOC process being implemented for SET-PTC, and a more developed MOC process is in development, at the time of the audit, SET-PTC failed to demonstrate that it has a comprehensive MOC process implemented that includes the appropriate triggers to include the PA Program.

Compliance Status: Non-Compliant

3.3 Training, Competence and Evaluation

Expectations:

The company shall have a documented training program for employees and contractors related to the company’s management and protection programs. The company shall inform visitors to company maintenance sites of the practices and procedures to be followed. Training requirements should include information about program-specific policies. Training should include emergency preparedness and environmental response requirements as well as the potential consequences of not following the requirements. The company should determine the required levels of competency for employees and contractors. Training shall evaluate competency to ensure desired knowledge requirements have been met. Training programs should include record management procedures. The training program should include methods to ensure staff remains current in their required training. The program should include requirements and standards for addressing any identified non-compliances to the training requirement.

References:

OPR-99 Sections 28, 29, 30(b), 46, 47, 48 and 56
CSA Z662-11 Clause 3.1.2(c)(iii)

Assessment:

SET-PTC staff confirmed in interviews that they attend training that is tracked through the Learning Management System (LMS). All mandatory training is entered in the LMS database and the LMS notifies staff when refresher training is due. Training required for the SET-PTC pipeline technicians includes both internally provided online training courses, as well as externally provided training for the locate equipment. As well, all employees involved in emergency response have Incident Command training. Annual performance reviews and staff development plans are managed in the Career Zone database and linked to the STIP Program.

Due to the integration of the PA Program and the continuing education aspect of the Emergency Management Program, the Coordinator also attends training for the Incident Command system for emergency management, as well as courses to improve communication and conflict resolution skills.SET-PTC was able to demonstrate that it has a process to identify, track and maintain records on employee training. As well, SET-PTC demonstrated that staff involved in the PA Program are trained and evaluated.

Compliance Status: Compliant

3.4 Communication

Expectations:

The company should have an adequate, effective and documented communication process(es):

  • to inform all persons associated with the company’s facilities and activities (interested persons) of its management and protection programs policies, goals, objectives and commitments;
  • to inform and consult with interested persons about issues associated with its operations;
  • to address communication from external stakeholders;
  • for communicating the legal and other related requirements pertaining to the management and protection programs to interested persons;
  • to communicate the program’s roles and responsibilities to interested persons.

References:

OPR-99 Sections 18, 28 and 29
CSA Z662-11 Clause 3.1.2 (d)
PCR Part II Sections 4 and 5

Assessment:

The Coordinator conducts visits with third parties and first responders. The SET-PTC stakeholder outreach aspect of the PA Program includes presentations to various stakeholder groups where the Coordinator presents safety messages. Also, the Coordinator represents SET-PTC and works with the Saskatchewan Common Ground Alliance and Sask First-Call to organize contractor safety breakfasts, and other related trade shows to discuss general safety practices and regulatory requirements for working around federally-regulated pipelines. The SET-PTC external website also contains readily available safety and contact information. The internal communication at SET-PTC occurs informally in the office.

SET-PTC was able to demonstrate that it has established a PA Program and that it measures the effectiveness of this program on a regular basis. Although communication is occurring within the PA Program, and there are triggers in place from the program to communicate with external stakeholders, SET-PTC failed to demonstrate that there is a formal communication plan that includes the PA Program in order to ensure that relevant information is communicated in a timely way throughout the organization.

Compliance Status: Non-Compliant

3.5 Documentation and Document Control

Expectations:

The company should have documentation to describe the elements of its management and protection programs- where warranted. The documentation should be reviewed and revised at regular and planned intervals. Documents should be revised immediately where changes are required as a result of legal requirements or where failure to make immediate changes may result in negative consequences. The company should have procedures within its management and protection programs to control documentation and data as it relates to the risks identified in element 2.0.

References:

OPR-99 Section 27
CSA Z662-11 Clause 3.1.2 (e),(f)
PCR Part II Sections 10 and 11

Assessment:

The Coordinator maintains the plan for the PA Program in binders in the Richardson Station office. Copies of this document are controlled and maintained on SET-PTC’s local network shared drive which is accessible to all SET-PTC employees. Standard safety and pipeline awareness presentations for the various stakeholder groups are also kept and updated on the shared drive and accessible to all SET-PTC staff.

SET-PTC was able to demonstrate that it has implemented a process to maintain and communicate the policies, procedures and documents related to its PA Program.

Compliance Status: Compliant

3.6 Operational Control-Normal Operations

Expectations:

The company should establish and maintain a process to develop, implement and communicate mitigative, preventive and protective measures to address the risks and hazards identified in elements 2.0 and 3.0. The process should include measures to reduce or eliminate risks and hazards at their source, where appropriate.

References:

OPR-99 Sections 21 and 27-49
CSA Z662-11 Clause 3.1.2(h)
PCR Part II Sections 4 and 5

Assessment:

SET-PTC’s PA Program addresses the risks and hazards associated with third party damage. Activities associated with PA Program include resident visits, presentations to various stakeholder groups including first responders and municipalities where SET-PTC staff present safety messages related to the PTC pipeline system and projects. Also, SET-PTC works with Saskatchewan Common Ground Alliance and Sask First-Call to organize contractor safety breakfasts to promote safe practices for excavation, construction and agriculture as well as regulatory requirements for working around federally-regulated pipelines.

SET-PTC was able to demonstrate that it has a PA Program that addresses the hazards and risks of its operations,- and meets the legal requirements.

Compliance Status: Compliant

3.7 Operational Control-Upset or Abnormal Operating Conditions

Expectations:

The company shall establish and maintain plans and procedures to identify the potential for upset or abnormal operating conditions, accidental releases, incidents and emergency situations. The company shall also define proposed responses to these events and prevent and mitigate the likely consequence and/or impacts of these events. The procedures must be periodically tested and reviewed and revised where appropriate (for example, after emergency events).

References:

OPR-99 Sections 32, 52
CSA Z662-11 Clause 10.5.2.1

Assessment:

Although the SET-PTC Emergency Management Program is evaluated in more detail in Appendix IV of this report, there is significant overlap with the PA Program because the Coordinator also develops and implements the continuing education program for first responders

As part of the annual PA Program, the Coordinator conducts outreach to residents and other stakeholders with a combined message of working safely around pipelines as well as what to expect in the event of an emergency. The Coordinator assists in the communication with stakeholders including residents and first responders. Also the Coordinator supports the Emergency Response Program by obtaining and maintaining accurate resident contact information on a spreadsheet that is available to all employees on the local shared drive in case there was an emergency.

SET-PTC was able to demonstrate that its PA Program is integrated with the Continuing Education program to support the Emergency Management Program in meeting regulatory requirements.

Compliance Status: Compliant

4.0 CHECKING AND CORRECTIVE ACTION

4.1 Inspection, Measurement and Monitoring

Expectations:

The company shall develop and implement surveillance and monitoring programs. These programs should address contract work being performed on behalf of the company. These programs should include qualitative and quantitative measures for evaluating the management and protection programs and should, at a minimum, address legal requirements as well as the risks identified as significant in elements 2.0 and 3.0. The company should integrate the surveillance and monitoring results with other data in risk assessments and performance measures, including proactive trend analyses. The company shall have documentation and records of its surveillance and monitoring programs.

References:

OPR-99 Sections 36 and 39
CSA Z662-11 Clause 10.6.1
PCR Part II Sections 4, 5, 10 and 14(1)

Assessment:

Measuring and monitoring of the SET-PTC PA Program is done by reviewing and analyzing the responses received on feedback forms following outreach activities including landowner visits, contractor breakfasts and emergency response education sessions with first responders. By assessing the responses, the Coordinator identifies whether the stakeholders understood the material or found the awareness session useful. The Coordinator uses the feedback from stakeholders to identify improvements to the PA Program activities and awareness materials.

SET-PTC was able to demonstrate that it conducts regular reviews its PA Program and incorporates feedback from stakeholders on an annual basis.

Compliance Status: Compliant

4.2 Corrective and Preventive Actions

Expectations:

The company shall have a process to investigate incidents or any non-compliance that may occur. The company shall have a process to mitigate any potential or actual issues arising from such incidents or non-compliances. Such mitigation may include appropriate timing and actions for addressing the issues that arise. The company shall demonstrate that it has established a documented procedure to:

  • set criteria for non-compliance;
  • identify the occurrence of any non-compliances;
  • investigate the cause(s) of any non-compliances;
  • develop corrective and/or preventative actions; and
  • effectively implement the required corrective and/or preventative actions.

The company should develop procedures to analyze incident data in order to identify deficiencies and opportunities for improvement in its management and protection programs and procedures.

References:

OPR-99 Sections 6 and 52
CSA Z662-11 Clauses 10.2.2 (g) & (h) and 10.14
PCR Part II Section 13

Assessment:

For the PA Program, non-compliances in respect of the PCR involve unauthorized activities performed by third parties. SET-PTC conducts regular right of way inspections to monitor for excavation and construction activities that have occurred near its pipeline without permission from the pipeline company. All unauthorized activities are reportable to the NEB under the PCR. The Coordinator manages the reporting of and response to all unauthorized activities. The Coordinator uses the unauthorized activity reports to identify trends to address with public awareness sessions or material in the next PA Program planning cycle. Record review indicates that unauthorized activities are considered to be near misses and are entered into SET-PTC’s Incident Investigation System as incidents without loss and filed in the Richardson Station office in Saskatchewan.

SET-PTC demonstrated that it has implemented procedures for identifying, reporting and investigating unauthorized activities. The Coordinator uses the reports of unauthorized activities to inform the PA Program on an ongoing basis. The Coordinator also conducts ‘on-demand’ public awareness presentations or workshops for parties who have conducted the unauthorized activities.

SET-PTC was able to demonstrate that its PA Program contains an adequate process to investigate incidents and respond to non-compliances.

Compliance Status: Compliant

4.3 Records Management

Expectations:

The company shall establish and implement procedures to ensure that the records supporting the management and protection programs are retained, accessible and maintained. The company shall, as a minimum, retain all records for the minimum lengths of time as required by the applicable legislation, regulation and standards incorporated by reference into the regulation.

References:

OPR-99 Sections 41, 51, 52 and 56
CSA Z662-11 Clause 3.1.2(e)
PCR Part II Sections 10(c), 11(1) and 16

Assessment:

SET-PTC manages the records generated by its business, which are kept both on the local shared G drive, and in hard copy at the SET-PTC Richardson Station. These records include presentations, contractor safety event documents, and the Saskatchewan Canadian Gas Association records. Contact information for residents along and adjacent to the right of way is maintained in a spreadsheet on the G drive. The Coordinator confirms the accuracy of this information every three years during the landowner visits. The spreadsheet also contains any relevant notes from the last visit such as special evacuation requirements of the residents.

While the SET-PTC records management continues to be managed manually using hard copy files, SET-PTC was able to demonstrate that it has a records management procedure that allows its records to be retained, maintained and retrieved in accordance with regulatory expectations and requirements

Compliance Status: Compliant

4.4 Internal Audit

Expectations:

The company shall develop and implement a documented process to undertake audits of its management and protection programs and procedures. The audit process should identify and manage the training and competency requirements for staff carrying out the audits. These audits shall be conducted on a regular basis.

References:

OPR-99 Section 53

Assessment:

Senior management of Spectra Audit Services is located in Houston, Texas. However, an audit manager and several staff are located in Calgary, Alberta. Calgary-based audit staff perform most of the SET-PTC internal audits, sometimes with participation by Houston-based audit staff. These audits occur on a regular basis and vary in size and scope. All non-compliant findings are tracked in a database and assigned to staff for completion reported to senior management. However, interviews and document review confirm that these audits are conducted to measure the company’s compliance to its own internal program requirements and do not necessarily address its programs’ compliance to regulatory requirements.

While aspects of the SET-PTC operations are included in the internal audits, SET-PTC was not able to demonstrate that the PA Program and the requirements of PCR have been scoped into any internal operational audits. Also it did not demonstrate that the requirements of the PCR are included in its audit protocols for the audits regarding safety of the public in order to confirm compliance.

Compliance Status: Non-Compliant

5.0 MANAGEMENT REVIEW

Expectations:

Senior management should formally review the management and protection programs for continuing suitability, adequacy and effectiveness. The review should be based on appropriate documentation and records including the results of the surveillance, monitoring and audit programs. This review should be formal and documented and should occur on a regular basis. The management review should include a review of any decisions, actions and commitments which relate to the improvement of the programs and the company’s overall performance.

References:

OPR-99 Section 53
PCR Part II Sections 4 and 5

Assessment:

The Manager of the PTC pipeline meets with senior management annually to discuss resources and review accountabilities. As well, interviews and document review indicate that there is regular communication SET-PTC’s area management, operations management and senior management teams. SET-PTC’s senior management also holds meetings on a regular basis at different field locations to evaluate the operations of the pipeline and associated facilities.

While the Board acknowledges that there is communication occurring among SET-PTC’s area management, operations management and senior management teams, SET-PTC was unable to demonstrate that it has established the processes that contribute to an adequate management review. As noted in sub-element 2.2 of this appendix, SET-PTC does not have a formal process of confirming that there is a current and complete inventory of legal requirements guiding the development and implementation of its PA Program. SET-PTC’s internal audit process does not include an evaluation of compliance to the PCR, which outline the requirements for addressing third party activities. Without this confirmation of compliance, senior management cannot verify that the PA Program is operating in compliance with all of the requirements.

Additionally, SET-PTC’s policy and purpose statement does not explicitly include public safety, and so there is no clear line of sight from SET-PTC’s policy to the PA Program. Therefore the Board is not satisfied that there are sufficient processes in place by senior management to ensure ongoing suitability, adequacy and effectiveness of the PA Program.

Compliance Status: Non-Compliant

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