Pembina Pipeline Corporation
Fox Creek to Namao Junction
Pipeline Expansion Project
Newsletter Update – Fall/Winter 2014
At Pembina, building long-term relationships based on mutual trust
with communities is a top priority. We seek to keep the communication lines open through the operating life of our projects
to ensure stakeholders remain informed about our activities and feel comfortable in contacting us.
This newsletter is to provide our stakeholders and Aboriginal communities with an update on Pembina’s Fox Creek to Namao
Junction Pipeline Expansion Project (the Project).
About Pembina
We are a leading transportation and midstream service provider that has
full spectrum of midstream and marketing services that spans across its
been serving North America’s energy industry for 60 years. Pembina owns
operations. Our integrated assets and commercial operations enable us
and operates pipelines that transport various hydrocarbon liquids including
to offer services needed by the energy sector along the hydrocarbon
conventional and synthetic crude oil, heavy oil and oil sands products,
value chain.
condensate (diluent) and natural gas liquids produced in western Canada.
We also own and operate gas gathering and processing facilities and an oil
Pembina has a strong record of community engagement, environmental
and natural gas liquids infrastructure and logistics business.
stewardship and safe, reliable pipeline performance. We believe in staged,
carefully managed growth that respects the interests and concerns of our
With facilities strategically located in western Canada and in natural gas
stakeholders and Aboriginal communities while providing the pipelines and
liquids markets in eastern Canada and the U.S., Pembina also offers a
energy services our growing economy demands.
The Project
Compensation
The Fox Creek to Namao Junction Pipeline Expansion Project consists of
Pembina will pay compensation in accordance with the Surface Rights Act
a 24” and a 16” pipeline that will span approximately 268 kilometres in
of Alberta. Compensation will include land value and entry fee and will be
length. The pipeline will originate from a tie-in point located at Pembina’s
paid prior to entry onto lands for construction purposes. Land value is
existing pump station at Fox Creek LSD-08-36-62-20 W5 and terminate
specific to lands and is calculated on a per acre value, as of the date of
at a tie-in point located at Pembina’s existing facility at Namao Junction
an access agreement, based on the highest approved use of the land. All
LSD-04-35-54-24 W4.
compensation payments are fair across the pipeline routes and Pembina
does not engage in the use of confidential side agreements.
The Project is needed to connect an existing and future supply of high
vapour pressure (HVP) and low vapour pressure (LVP) hydrocarbon liquids
If compensation is the only outstanding matter, then upon receipt of
in the Fox Creek area of Alberta to existing processing facilities. Currently,
regulatory approval from the AER, Pembina will apply to the Surface Rights
Pembina needs more capacity available on its existing Peace Pipeline
Board (SRB) for a right-of-entry. The SRB has established a mediation
System from Fox Creek to the Edmonton/Fort Saskatchewan/Redwater
process to assist parities to resolve compensation issues. In the event
area. The Project will provide producers in the Fox Creek area with
a resolution cannot be reached, the SRB will hold a public hearing. To
additional pipeline capacity and transportation options from the Fox Creek
create a better understanding of these processes, the SRB has issued the
area and ultimately to Edmonton/Fort Saskatchewan/Redwater area.
following: Information Bulletin (October 10, 2008) Mediation and Hearings:
Procedure; Guide; Guidelines; Settlement and FAQ. This information is
In the future, the Project will be needed to transport new volumes of HVP and
available on the SRB website: www.surfacerights.gov.ab.ca. Pembina will
LVP liquid hydrocarbons, as the supply in the Fox Creek area is expanding.
provide this document upon request.
Route
Note: the AER does not have authority to adjudicate on matters of
The route of the pipelines was chosen to construct the Pipelines in the same
annual payments.
compensation. This is the function of SRB. Further, Pembina will not make
right-of-way to minimize disturbance and to maximize shared temporary
workspace required during construction. The route will follow existing linear
disturbances where possible.
AER Applications Filed
In September 2014, Pembina filed its regulatory applications to the AER for
Public Consultation and
Participant Involvement
Pembina began formal consultation in January 2014. We have, and will
the Project. We have filed our Directive 056, Conservation and Reclamation
(C&R) and Pipeline Agreement (PLA) applications. Our applications included
details of any known outstanding concerns known at the time of application
filing.
continue to, work with stakeholders and Aboriginal communities to answer
questions, establish the terms of access agreements and address concerns
Pembina sent public notices reporting its application to landowners with
raised. In the event, we cannot reach an agreement; Pembina encourages
outstanding concerns, making them aware of the application being filed
the parties to engage the Alberta Energy Regulator (AER) Alternative Dispute
with the AER and their right to submit a Statement of Concern (SOC) if they
Resolution program. Details of the program are set out in AER, EnerFAq: All
have an issue with the proposed project.
About Alternative Dispute Resolution (ADR) at www.AER.ca. Pembina will
provide this document upon request.
The Project was filed as a non-routine application. Non-routine applications
are required when any applicable participant involvement or technical
Pembina will continue to work collaboratively with stakeholders and Aboriginal
requirements cannot be met prior to filling the application.
communities to address any issues or concerns and will do so throughout the
life of the project.
The AER will determine, on a case-by-case basis, whether a hearing
is required for resolution. However, Pembina will continue to work
collaboratively with stakeholders to address any issues or concerns
and will do so throughout the life of the project.
Project Schedule and Duration
Subject to receiving all applicable regulatory approvals, we plan to be in
operation late 2016.
Fox Creek to Namao Junction Pipeline Expansion Project
Integrity management begins at the engineering and design phase. At the
early stages of building a new pipeline, we ensure that pipeline routes are
chosen to avoid geologically unstable or high consequence areas and to
reduce environmental impact. To further mitigate the risk and impact of
an incident, we design our pipelines so that they can be safely shut down
and that segments can be isolated with the block valves that are installed
at strategic intervals along the system. Where appropriate, we take extra
safety precautions such as increasing pipe wall thickness or depth-of-cover
to help mitigate risks. In addition, when it comes to choosing materials
for new construction, Pembina only uses steel pipe and other products
that have been manufactured to meet the highest quality standards and
specifications.
Safety Matters
At Pembina, our management team is responsible for ensuring we have
the proper programs and procedures in place to help identify and manage
potential hazards in our workplaces. We have created five Continuous
Improvement Teams to tackle various safety initiatives in an effort to
encourage and foster safety behaviors for all employees, in all types of
work settings.
We’re able to deliver this type of performance by reinforcing our commitment
Spotlight on In-Line Inspection
Pembina has employed a rigorous and
sophisticated in-line inspection program,
using the latest technology. Each year 300
to 500 digs are conducted to visually inspect
pipelines and mitigate defects. We also
conduct over 400 water crossing and slope
inspections annually.
to a safe worksite through contractor screening, frequent safety meetings,
rigorous project inspection and constant review of potential hazards,
including close call reporting. By aggressively reporting and assessing
close call incidents we can learn from what almost went wrong.
Integrity Management
Pembina’s pipeline integrity management program uses in-line inspection
At Pembina, we’re also learning from the best practices of others, which
technologies such as magnetic flux leakage to detect corrosion and
include actively participating in the Alberta Gas Oil Pipeline Operators
ultrasonic devices to detect cracks. In-line inspection tools can inspect
Safety Council and the Canadian Energy Pipeline Association’s Health and
pipelines from the inside to identify changes such as dents or wall thinning
Safety and Pipeline Integrity Work Groups.
that could threaten the integrity of a pipeline. Then Pembina follows up
with an engineering assessment and integrity programs as required.
Asset Integrity
Pembina also employs customized Supervisory Control and Data
We know that maintaining the integrity of our energy infrastructure
Acquisition (SCADA) technology to monitor pipeline flow and operating
– pipelines, storage tanks, gas processing plants, fractionators and
conditions. Operators oversee and monitor the SCADA system and
associated facilities – is integral to the health and safety of the communities
associated leak detection software 24 hours a day, 365 days per year
in which we operate. Not only does a strict focus on safe and reliable
from Pembina’s Edmonton Control Centre (ECC). Pembina also maintains
operations lessen the likelihood of incidents, it also reduces the cost of
a geotechnical database designed to help minimize integrity hazards
our operations over the long term and helps sustain our license to operate.
associated with ground and watercourse movement. Such technologies
That’s why we’ve developed, and are continuously improving, our asset
allow Pembina to proactively identify potential pipeline threats at an early
integrity management programs.
stage and prevent spills from occurring.
Each year, we dedicate a significant portion of our operating budget to
To further protect the integrity of Pembina’s pipelines against possible
our comprehensive pipeline integrity management activities. Our integrity
damage by third-party excavators or construction activity, Pembina
management program includes the systems, processes, analysis and
conducts routine aerial patrols and is a long-standing member of the
documentation designed to ensure proactive and transparent management
Alberta and British Columbia One Call systems. Pembina continues to
of our pipeline systems. It incorporates industry best practices and is
enhance its public awareness program by regularly meeting with local first-
designed to meet or exceed regulatory requirements with the goal of
responders and visiting with landowners.
achieving enhanced safety, reliability and longevity through the entire
pipeline lifecycle.
To learn more, please visit our website at www.pembina.com
Fall/Winter 2014
Pipeline Discontinuation
and Abandonment
Pipeline companies, not landowners, are responsible for the costs arising
from an abandoned pipeline or facility. The costs include the abandonment
work, which includes clean-up of the surrounding area until it is reclaimed
to the acceptable environmental standards, and unforeseen events such
as pipeline settlement or exposure that might occur after abandonment.
When a pipeline is not needed, a company can apply to discontinue
or abandon the pipeline and associated infrastructure. When they are
discontinued, the pipelines are maintained so that the pipeline can be
brought back into use in the future.
If a pipeline company decides to abandon a pipeline, it must apply for the
permanent deactivation of the pipeline and any related surface equipment.
Notification to the Regulator of discontinuance or abandonment opera
tions does not relieve the licensee from the responsibility for further
discontinuance or abandonment or other operations with respect to the
same pipeline or part of a pipeline that may become necessary.
Community Engagement –
Open Houses
Please join the Pembina Fox Creek to Namao
Junction project team at one of our open houses.
Crossing a Right-of-Way (ROW)
November 26, 2014
Diamond Centre
4814 – 54 Street
Mayerthorpe, AB
5 pm to 8 pm
November 27, 2014
Community Cultural Centre
9502 – 100 Avenue
Morinville, AB
5 pm to 8 pm
A vehicle or equipment conducting normal farming operations or is defined
as an off-highway or private vehicle by the Traffic Safety Act are permitted
to cross the pipeline ROW without permission.
To protect people and the environment, and to reduce the risk
of pipeline damage, it’s important to contact Alberta One Call:
1-800-242-3447, www.AlbertaOneCall.com
Anyone conducting ground disturbance within a pipeline ROW or operating
a vehicle crossing a pipeline not within an upgraded and travelled portion
of a highway or public road, requires written approval from Pembina.
Pembina or its delegate will locate and mark the pipeline within two days
of the request excluding weekends and holidays.
To learn more, please visit our website at www.pembina.com
Making Connections – it’s what we do.
Reliable | Trusted | Responsible
Committed to being the operator, employer, partner, neighbour and
investment of choice in North America’s energy infrastructure sector.
Contact
If you have questions or concerns, please contact Pembina’s
Toll Free Project Line at 1-888-920-1979 or email us at
[email protected].
www.pembina.com