ARCHIVED – Administrative Monetary Penalty – Westcoast Energy Inc. (Spectra Energy Transmission) – AMP-009-2015

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Administrative Monetary Penalty – Westcoast Energy Inc. (Spectra Energy Transmission) – AMP-009-2015 – 5 May 2015 [PDF 55 KB]



Information for Pipeline Company / Third Party / Individual:

Information for Pipeline Company / Third Party / Individual
Name: Westcoast Energy Inc. (Spectra Energy Transmission)
Contact: Mark Fiedorek
Title: President
Address: Fifth Avenue Place, East Tower
425 - 1st Street SW
Suite 2600
T2P 3L8
City: Calgary,
Province / State: Alberta
Telephone: Information not available
Fax: Information not available
E-mail: Information not available


Date of Notice:
5 May 2015

Regulatory Instrument #:

On 31 January 2014 Westcoast Energy Inc. (Spectra Energy Transmission) was observed to be in violation of a NEB regulatory requirement. This violation is subject to an administrative monetary penalty, as outlined below.


Date of Violation:
from: 31 January 2014 to: 31 January 2014
Total Number of Days: 1

Has compliance been achieved?


 X No

If no, a subsequent NoV may be issued.

Location of Violation:

e.g. Facility/plant/head office or nearest geographical point
Transmission North Expansion Project, British Columbia

Short Form Description of Violation
(Refer to Schedule 1 of the AMP Regulations)

Provision and Short-form Description


Contravention of an Order or Decision made under the Act (ss. 2(2) of the AMP Regulations)

Failure to comply with a term or condition of any certificate, licence, permit, leave or exemption granted under the Act (ss. 2(3) of the AMP Regulations)

Condition 7 of XG-W102-005-2011


Briefly describe reasonable grounds to believe a violation has occurred

1. On 21 April 2011, the National Energy Board issued a Letter and Order XG-W102-005-2011 (A1Y7T7) approving Westcoast Energy Inc., carrying on business as Spectra Energy Transmission's (Westcoast) Transmission North Expansion Project (Project). Condition 7 of Order XG-W102-005-2011 (Order) states: "On or before the 31 January of each of the first and third complete growing seasons following commencement of operation of the Project, Westcoast must file with the Board a post-construction environmental monitoring report that:

  1. a) describes the methodology used for monitoring, the criteria established for evaluating success and the results found;
  2. b) assesses the effectiveness of mitigation measures applied during construction against the criteria for success;
  3. c) identifies any deviations from plans, and alternate mitigation applied, as approved by the Board;
  4. d) identifies locations on a map or diagram where environmental issues arose during construction and where corrective actions were taken;
  5. e) identifies the current status of the issues identified (resolved or unresolved) and corrective actions undertaken;
  6. f) includes details of consultation undertaken with affected landowners and appropriate provincial and/or federal departments; and
  7. g) provides proposed measures and the schedule that Westcoast shall implement to address any unresolved issues or concerns.

The report must include information specific to the effectiveness of mitigation applied to minimize effects on western toad and its breeding habitat."

2. On 31 January 2014, Westcoast submitted its first post-construction environmental monitoring report (PCMR) as required by Condition 7 of the Order. In this submission, Westcoast indicated most environmental concerns had already been resolved. Westcoast further stated any outstanding issues would be monitored and necessary corrective actions taken until all issues were resolved. Westcoast also confirmed the third year post-construction environmental monitoring report would be submitted by 31 January 2016 as required.

3. In August 2014, the NEB conducted an evaluation of Westcoast's PCMR. During its review, the NEB found that Westcoast had not complied with the final term of Condition 7 of the Order requiring information specific to the effectiveness of mitigation applied to minimize effects on western toad and its breeding habitat, as Westcoast had made no mention of western toad in its PCMR submission. Western toad had been identified as a Species at Risk in the Project's Environmental Screening Report conducted under the Canadian Environmental Assessment Act.

4. On 28 January 2015, the NEB issued an informal information request to Westcoast. In it, the NEB requested a response outlining how Westcoast would ensure information specific to the effectiveness of mitigation applied to minimize effects on western toad and its breeding habitat would be addressed in the year three PCMR.

5. On 26 February 2015, Westcoast responded to the information request. Westcoast indicated it would conduct a monitoring survey of amphibians, including western toad, on the reconstructed dugouts and all crossed wetlands associated with the Project during the 2015 season. Field monitoring would utilize best practices for management of amphibians and would support reconstructed and natural wetlands associated with western toad and its breeding habitat.

6. On 17 March 2015, the Board requested confirmation that results of the amphibian monitoring survey would be included in Westcoast's third year PCMR submission to be filed with the Board.

7. On 18 March 2015, Westcoast confirmed that it would provide the results of the amphibian monitoring survey as required.


(a) BASELINE PENALTY (Gravity Value = 0)

(a) BASELINE PENALTY (Gravity Value = 0)
Category Individual Any Other Person
(Type A)     $1,365     $5,025
(Type B)     $10,000  X  $40,000

[Refer to AMP Regulations, Subsection 4(1)]


[Refer to AMP Regulations, Subsection 4(2)]

Mitigating Aggravating
-2 -1 0 +1 +2 +3
 X  Other violations in previous seven (7) years -- --      X      --
On 22 January 2015, Westcoast received a Notice of Violation totalling $88,000 for failure to ensure that the company's processing plant is designed, constructed, operated or abandoned as prescribed, as outlined in the NEB Processing Plant Regulations (PPR) 4(1). On 18 February 2015, Westcoast paid the penalty in full.
    Any competitive or economic benefit from violation -- --             --
    Reasonable efforts to mitigate / reverse violation’s effect                     --
    Negligence on part of person who committed violation -- --             --
 X  Reasonable assistance to Board with respect to violation      X              --
Westcoast responded to Board inquiries related to monitoring of western toad habitat when required.
 X  Promptly reported violation to Board              X      --
The Board discovered the final term of Condition 7 had not been addressed during its PCMR evaluation. Westcoast did not report the violation to the Board and only identified steps to address the non-compliance after NEB raised concerns with the lack of appropriate reporting as required.
 X  Steps taken to prevent reoccurrence of violation  X                  --
Westcoast has committed to conducting field monitoring of western toad habitat and breeding areas during the 2015 growing season. Westcoast has stated it will report on its findings it its third year PCMR submission to be filed with the Board no later than 31 March 2016.
    Violation was primarily reporting / record-keeping failure             -- -- --
    Any aggravating factors in relation to risk of harm to people or environment -- --                

(The baseline penalty, adjusted for the final gravity level)


(If more than one day, then the justification must be provided.)


Notes to explain decision to apply multiple daily penalties, or "Not Applicable"




Note: The total penalty amount shown is based on the period described in Step 1 above. If compliance has not been achieved, a subsequent Notice of Violation may be issued.


(30 days from receipt of Notice of Violation)
3 June 2015


You have the right to make a request for a review of the amount of the penalty or the facts of the violation, or both, within 30 days after the Notice of Violation was received.

If you do not pay the penalty nor request a review within the prescribed period, you are considered to have committed the violation and you are liable for the penalty set out in the Notice of Violation. The penalty is due on the date indicated above.

The unpaid penalty amount is a debt due to the Crown and may be recovered by collection procedures stipulated in the Financial Administration Act.

The information regarding the violation may be posted on the NEB website:

  1. 30 days from the date this Notice of Violation was received or;
  2. upon issuing a decision following a Request for Review.

To Make Payment:

You may remit your fee payment by Electronic Funds Transfer (EFT) or by cheque payable to the order of Receiver General for Canada.

EFT payments can be arranged by contacting the Director of Financial Services, Monday to Friday, from 09:00 to 16:00 Mountain Time:

  • Telephone: 403-606-0779 / 800-899-1265
    Fax: 403-292-5503 / 877-288-8803

Cheques should be made out to the "Receiver General for Canada" and mailed to:

  • National Energy Board
    Attention: Finance
    Centre 10, 517 - 10th Avenue SW
    Calgary, Alberta
    T2R 0A8

Your completed Payment form should be enclosed with your payment.

To Request a Review

Pursuant to the NEB Act, Section 144, you may file a request for a review of this Notice of Violation by the Board.

The date of filing is the date on which the document is received, as indicated by the date on an e-mail submission or the stamped on the document by a NEB employee.

If you elect to make a request for a review, complete and submit the attached Request for Review form to:

  • Administrative Monetary Penalty - Reviews
    National Energy Board
    Centre 10, 517 - 10th Avenue SW
    Calgary, Alberta
    T2R 0A8

For more information on reviews, please see the Administrative Monetary Penalties Process Guide available on the NEB's website.


Robert Steedman

Designated Officer
Administrative Monetary Penalties


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