Order BW-001-2021 pursuant to Section 109 of the Canadian Energy Regulator Act
INSPECTION OFFICER ORDER NO. BW-001-2021
IN THE MATTER OF THE CANADIAN ENERGY REGULATOR ACT,
AN ORDER UNDER SECTION 109
NAME OF PERSON(S)/COMPANY TO WHOM THIS ORDER IS DIRECTED
Alliance Pipeline Ltd.
On or about 15/April/2021 at 10:30am the undersigned Canada Energy Regulator (CER) inspection officer conducted a virtual implementation assessment meeting with representatives of Alliance Pipeline Ltd. (Alliance) via Microsoft Teams to discuss the outstanding deliverable of the company’s Corrective And Preventive Action (CAPA) Plan, 1819-419-2c – Milestone #1 (Milestone). The CAPA requirement was to address non-compliant findings related to the risk assessment process for the company’s facilities. The CAPA requirement resulted from the 2018/2019 CER audit of the Alliance’s Integrity program and was submitted to fulfill the requirement of paragraph 6.5(1)(e) of the Canadian Energy Regulator Onshore Pipeline Regulations (OPR).
RELEVANT FACTS / GROUNDS FOR MAKING ORDER
Alliance Pipeline Ltd.’s Integrity program was audited in 2018/2019. Following the audit, Alliance was required to submit a Corrective and Preventive Action (CAPA) plan for approval that described the methods, timing and rationale for addressing the non-compliant findings identified in the audit report.
On 8 April 2019, Alliance submitted its CAPA plan to the CER for approval, to address the noncompliances identified during the audit of Alliance’s Integrity program.
On 26 June 2019 the National Energy Board, approved Alliance’s CAPA plan. It contained 20 corrective and preventive actions, all of which were scheduled to be complete by 30 June 2020. The Milestone however, was due on 1 May 2019. On 28 August 2019, the CER replaced the National Energy Board.
On 18 December 2019, CER staff held an implementation assessment meeting with Alliance to follow up on the status of the company’s CAPA plans. It was noted that the Milestone had not been received, and that a request for extension to the due date was required. Alliance wrote that the deliverable for the Milestone would be: “New PEIP (Pressure Equipment Integrity Program) is being developed. The new program will unify the existing Enbridge and Alliance PEIPs into one consolidated program and include a risk assessment process”.
On 10 January 2020, Alliance submitted a written request for an extension to the due date for the Milestone. Alliance requested that this CAPA due date be extended to 31 December 2020 in order to allow Alliance sufficient time to properly consolidate the existing Enbridge and Alliance procedures and practices into a single program.
On 08 May 2020, CER Inspection Officers granted the extension to 31 December 2020. Within this approval letter Alliance was advised that should Alliance not be able to meet the requirements for this CAPA or any remaining CAPA items by the due date, Alliance was required to notify the CER in writing in advance of the due date.
On 18 December 2020, Alliance submitted deliverables for the Milestone.
On 22 January 2021, CER Inspection Officers (IO) began the first document review of the Milestone deliverables provided by Alliance. The CER IOs found that documents provided did not contain the information necessary to demonstrate that the requirements for the CAPA were met.
Subsequent to this, the CER made additional requests for additional information, both of which demonstrated that the requirements for this deliverable had not been met. One document included the following, l these tasks are scheduled to be completed by Sept/Oct. 2021.” This was the first time Alliance gave any indication they did not meet the Milestone due date.
Alliance did not submit a written notification, prior to the due date, indicating the deliverable would not be met as required.
Following the 12 March 2021 Implementation Assessment Meeting via MS Teams, Alliance was again advised to request a second extension to the Milestone due date as until the Milestone is satisfied, they still remain in non-compliance with subsection 6.5(1)(e) of the OPR as it relates to the risk assessment process for the company’s facilities.
GENERAL DUTY – REASONABLE CARE
Pursuant to section 94 of the CER Act, the holder of a certificate or permit must take all reasonable care to ensure the safety and security of persons, the safety and security of regulated facilities and abandoned facilities and the protection of property and the environment.
Pursuant to subsection 109 (1) of the CER Act, If an inspection officer who is expressly authorized by the Chief Executive Officer to make orders under this section has reasonable grounds to believe that there is or is likely to be a contravention of this Part or any of Parts 3 to 5 or section 335, or for a purpose referred to in subsection 102(2), the inspection officer may, by order, direct a person to
- (b) take any measure that is necessary in order to comply with this Part or any of Parts 3 to 5 or section 335 or mitigate the effects of non-compliance;
MEASURES TO BE TAKEN
Alliance Pipeline Ltd. is ORDERED pursuant to subsections 109(1) of the CER Act to:
Specified MeasuresFootnote 1
- Complete the Milestone: New PEIP is being developed. The new program will unify the existing Enbridge and Alliance PEIPs into one consolidated program and include a risk assessment process by 31 October 2021.
This finding is directly linked to the following OPR requirement:
OPR s. 6.5(1)(e): A company shall, as part of its management system and the programs referred to in section 55, establish and implement a process for evaluating and managing the risks associated with the identified hazards, including the risks related to normal and abnormal operating conditions.
- Within two weeks of receiving this order, Alliance shall provide a plan outlining the remaining steps and milestones for completing the Milestone.
- Alliance shall provide monthly reports demonstrating the progress in completing the Milestone. If delays occur, Alliance shall explain what measures it will take to ensure that the Milestone will be completed by 31 October 2021
EFFECTIVE DATE OF THE ORDER
This inspection officer order takes effect immediately on 15/April/2021 at the time of delivery of the order to the person/company to whom it is directed. Nothing in this order shall be construed as reducing, increasing, or otherwise affecting what may be required of the person/company to whom it is directed to comply with all existing applicable legislative or legal requirements.
COMPLIANCE WITH THIS INSPECTION OFFICER ORDER IS MANDATORY
Failure to comply with an inspection officer order issued under section 109 of the CER Act is an offence under section 112 of the CER Act, and is also a violation for which an Administrative Monetary Penalty can be issued under section 121 of the CER Act.
|IO Designation Number|
|15 April 2021||
|Suite 210, 517 10th Avenue SW Calgary AB T2R 0A8|
Please note that in compliance with the CER’s Enforcement Policy, this Order will be posted on the CER’s website.
CVA or Incident #: CVA 1819-419
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