National Energy Board Issues Order to Plains Midstream Canada ULC, Orders Third Party Audit of Pipeline Operations
January 15, 2015
CALGARY -The National Energy Board (NEB) has issued an Order pursuant to Section(s) 12 and 48 of the NEB Act that imposes six conditions upon Plains Midstream Canada ULC (Plains), including the requirement to conduct an independent third-party audit of all the company’s NEB-regulated pipeline operations in Alberta, Saskatchewan, Manitoba, and Ontario.
The NEB has also directed the company to submit for approval, by January 31, 2015, documentation regarding immediate safety critical tasks; the operational controls used to mitigate hazards and risks; and a demonstration of the company’s process for review and maintenance of the controls to ensure their ongoing adequacy and effectiveness.
The NEB Order is a direct result of Plains’ failure to correct non-compliant findings during the 2010 Management and Protection Audit Corrective Action Plan, and continued deficiencies throughout the company’s safety management and environmental protection programs.
Other conditions include the requirement to submit for approval, its quality assurance program prior to April 30, 2015, and to coordinate quarterly meetings with NEB staff to report on the company’s progress of its management system, performance of its management and protection programs, and to review the status of any corrective and preventative actions. The first quarterly meeting with NEB staff must occur before March 31, 2015.
The NEB has prescribed a two-phased approach to the third party audit. The first phase of the third party audit will examine Plains’ management system and Environmental Protection Program, with a final audit report required on or before December 31, 2015. The second phase of the third party audit will focus on Plains’ Integrity Management Program, with a final response to the audit report required on or before December 31, 2016.
The National Energy Board is an independent federal regulator of several parts of Canada’s energy industry with the safety of Canadians and protection of the environment as its top priority. Its purpose is to regulate pipelines, energy development and trade in the Canadian public interest.
– 30 –
For further information:
National Energy Board
E-mail: [email protected]
Telephone (toll free): 1-800-899-1265
Facsimile (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663