16 October 2001 Calgary

National EnergyBoard

Office nationalde l’énergie

Canada

Pipeline Approvals in the Mackenzie Valley

Jann AtkinsonEnvironmental Specialist

Applications Unit, National Energy Board

16 October 2001

Calgary



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Introduction The purpose of this presentation is to

provide an overview of the National Energy Board pipeline approvals process in the Mackenzie Valley



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Who are We? Independent regulatory tribunal - formed

40 years ago under NEB Act to regulate: construction and operation of inter-provincial and

international oil and natural gas pipelines (e.g., Alliance, Foothills pre-build, Norman Wells, TransCanada)

development of oil and gas resources in non-accord frontier areas (Mackenzie Delta, Fort Liard)

some international power lines the import and export of energy commodities



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Who are we really? 8 permanent board members, appointed by

Cabinet for 7-year terms Chair - Ken Vollman;

Vice Chair - Judith Snider 275 staff, one office

35 economists and financial experts 30 environmental specialists 30 engineers regulatory officers, project managers, library etc.



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National Energy Board Act The NEB regulates the construction and

operation of the oil and gas facilities



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Role in the North Three aspects to NEB’s job in the North

1) Canada Oil and Gas Operations Act (COGOA) regulation of upstream oil and gas activity in the NWT

2) regulation under the National Energy Board Act (NEB Act) of inter-provincial and international pipelines

3) provision of technical and advisory services upon request in the Yukon



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COGOA vs. NEB Act

Alberta or British Columbia

}NEB Act

NWT

COGOA



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COGOA authorizations Geological/Geophysical Operations

Authorizations Authority to Drill a Well Significant Discovery Declaration Commercial Discovery Declaration Development Plan Construction Authorizations Production Operations Authorization



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Help! Regulatory Roadmaps Project - regulatory

approvals processes for oil and gas exploration and production - CAPP

Southern Mackenzie Valley (October 2000) Inuvialuit Settlement Region (June 2001) others are in preparation: Gwich’in, Sahtu



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NEB Act

Order (pipelines < 40 km in length)

Certificate of Public Convenience and Necessity (pipelines 40 + km in length)



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Certificate

General Phases: Application Environmental Assessment Process Public Hearing Process Environmental Assessment Decision Regulatory Decision and Recommendation Governor-in-Council Certificate of Public Convenience and Necessity Detailed Route Hearings Condition Compliance (pre-construction) Leave to Open



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Regulatory ProcessRegulatory Process EA ProcessEA Process



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Panel Assigned• 3 Board Members

Guidelinesfor

filingRequirements

Application is Filed

Project Working Group• environment• socio-economic• engineering• financial, etc

Is application Complete?No Yes



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Public Hearings

all proposed pipelines > 40 km in length are subject to a public hearing process

Flexible process



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Public Hearing

Consider a wide range of issues design and operation safety environmental and socio-economic issues supply, markets, economic feasibility pipeline tolls and tariffs effectiveness of public consultation landowner matters

NEB Act aspects involve consideration of anything in the ‘public interest’ - allows the NEB to focus on issues of key local importance



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Panel Assigned

Public HearingProcess

NEB Act

Regulatory Decision &Recommendation

GIC

Certificate Issuedby NEB

EAProcess



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Public Hearing

Hearing Process is Initiated

Notice is Published in the Newspapers, Press Release, Internet Directions on Procedure -what, when, how to participate etc. timelines established to identify participants evidentiary record is ‘built’

- information is filed

- information requests and responses



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Public Hearing

Oral Hearings

additional information questioning final argument ----------------------------------------- Held in centres directly affected by a project at times

convenient for the public Flexibility



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Oral Hearing Concludesand is Adjourned

Reasons for Decision

Recommendation to GIC

Approval Not to approve

Certificate

Accept Reject



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Construction? Now that you have the certificate, can you construct?

Not quite yet………….

Detailed Route Hearings Condition Compliance



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Detailed Route HearingsOpportunity for landowners or other affected parties to

comment on: the detailed route of the pipeline

and/or the method and timing of construction held in the vicinity of the subject lands similar hearing procedures apply different panel of Board Members



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Condition ComplianceConditions on the Certificate

environmental manuals (e.g. Environmental Protection Plan, Safety Manual) detailed mitigation and follow-up plans design supply sunset clause some must be met prior to construction, others prior to operation

etc.



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Construction

Construction Inspection

Environment Safety Engineering Canada Labour Code



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Leave to Open

Prior to placing the pipeline in service

design safety (including pressure testing) conditions complied with environmental commitments



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Environmental Assessment

NEB has EA responsibilities under MVRMA, CEAA and NEB Act MVRMA - Designated Regulatory Agency - MOU

signed with MVEIRB in Dec 2000 to cooperate on EAs - Cameron Hills

CEAA - Responsible Authority - projects south of 60 and in the ISR

NEB Act - matters in the public interest



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Status - Northern Coordination Preparations

participant in discussions on regulatory and EA coordination in the NWT and Yukon purpose of coordination is to minimize duplication

while respecting land claims legislation, institutions created therein, need for northern participation, and industry’s need for certainty and clarity of process



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Key Messages - Review Process

NEB is only one of many key organizations with authority to examine impacts and influence conditions around energy development proposals in the North

Coordination with and contributions from Northern agencies will be essential in producing the best decisions

the agencies with a role in energy development in the North will work in partnership to ensure that the process meets local needs and encourages local participation

these agencies will be prepared to deal with the application in a fair and impartial manner in the public interest



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Questions?

16 October 2001 Calgary

Documents

Transcript of 16 October 2001 Calgary