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National Energy Board Deep Panuke Offshore Gas

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National Energy Board Deep Panuke Offshore Gas NATIONAL ENERGY BOARD IN THE MATTER OF the National Energy Board Act, R.S.C. 1985 c. N-7, as amended (the NEB Act) and the regulations made thereunder; AND IN THE MATTER OF an application by Encana Corporation (Encana) pursuant to section 74(1)(d) of the NEB Act and section 50 of the NEB Onshore Pipeline Regulations. DEEP PANUKE OFFSHORE GAS DEVELOPMENT LEAVE TO ABANDON APPLICATION June 2018 To: The Secretary National Energy Board 517 Tenth Avenue SW Calgary, Alberta T2R 0A8 Document No. DCEN-X00-RP-RE-00-0006.02U ABBREVIATIONS ANSMC Assembly of Nova Scotia Mi’kmaq Chiefs APC Atlantic Policy Congress of Chiefs CSA Canadian Standards Association CEAA Canadian Environmental Assessment Act CNSOPB Canada-Nova Scotia Offshore Petroleum Board Encana Encana Corporation ESA environmental and socio-economic assessment FAC Fisheries Advisory Committee (CNSOPB) GEPT gas export pipeline terminus km Kilometre LNG liquid natural gas m Metre mm Millimetre M&NP Maritimes & Northeast Pipeline MAPC Maritime Aboriginal Peoples Council Municipality Municipality of District of Guysborough NCNS Native Council of Nova Scotia NEB National Energy Board OPR Onshore Pipeline Regulations (NEB) PFC production field centre RoW right of way SBM Single Buoy Moorings Inc. SSIV subsea isolation valve VC valued components Deep Panuke Application for NEB Leave to Abandon • June 2018 2 TABLE OF CONTENTS ABBREVIATIONS .................................................................................................................... 2 APPLICATION OVERVIEW..................................................................................................... 4 Applicant ...................................................................................................................................... 4 Facilities History .......................................................................................................................... 4 Scope of the Abandonment Activity ............................................................................................ 5 ECONOMICS AND FINANCE ................................................................................................. 6 Abandonment Costs and Funding ............................................................................................... 6 Accounting Treatments, Tolls and Service Impacts .................................................................... 7 INDIGENOUS ENGAGEMENT ............................................................................................... 7 Background and Overview .......................................................................................................... 7 Identification of Indigenous Communities for Engagement ......................................................... 7 Summary of Indigenous Engagement Activities .......................................................................... 9 Ongoing Indigenous Engagement Activities ................................................................................ 9 STAKEHOLDER ENGAGEMENT ......................................................................................... 10 Regulatory and Government Agencies ..................................................................................... 10 Local Government Agencies (Municipal) ................................................................................... 10 Fisheries Groups and Associations ........................................................................................... 10 Other Stakeholders ................................................................................................................... 11 LAND MATTERS ................................................................................................................... 11 Easements to be Surrendered .................................................................................................. 12 ENVIRONMENTAL AND SOCIO-ECONOMIC EFFECTS ASSESSMENT ........................... 12 SUPPORTING MATERIAL .................................................................................................... 13 RELIEF REQUESTED ........................................................................................................... 14 ATTACHMENT 1: GUIDE B AND GUIDE K FILING MANUAL CHECKLIST ATTACHMENT 2: ABANDONMENT PLAN (INCLUDING FACILITY MAPS) ATTACHMENT 3: ABANDONMENT SCHEMATICS ATTACHMENT 4: ENVIRONMENTAL AND SOCIO-ECONOMIC ASSESSMENT Deep Panuke Application for NEB Leave to Abandon • June 2018 3 APPLICATION OVERVIEW Deep Panuke is a natural gas development located offshore Nova Scotia, producing natural gas since 2013. Deep Panuke is owned by Encana Corporation (Encana). Encana hereby applies to the National Energy Board (NEB) for leave to abandon the Deep Panuke pipeline and associated onshore facilities pursuant to Section 74(1)(d) of the National Energy Board Act (NEB Act) and Section 50 of the NEB Onshore Pipeline Regulations (OPR). See Figures A-1 and A-2 in the Deep Panuke pipeline Abandonment Plan (included as Attachment 2 to this application) for maps of the Deep Panuke Development location and of the Deep Panuke onshore pipeline and facilities. Applicant 1. Encana is a “company” as that term is defined in the NEB Act and is the applicant for this Leave to Abandon Application. 2. The Deep Panuke Development is a natural gas development consisting of an offshore platform (production field centre or PFC), subsea wells, infield flowlines/umbilicals, and a gas export pipeline and associated onshore facilities. The NEB regulates the pipeline, which consists of a 560 mm diameter sweet natural gas subsea pipeline, 175 km in length (172 km offshore and 3 km onshore), and the associated onshore facilities. The pipeline begins at the top of the PFC riser and extends to, and includes, the onshore facilities in Goldboro, Nova Scotia (where it ties into the Maritimes & Northeast Pipeline (M&NP) facilities). 3. Encana is the Operator of Record for Deep Panuke. Encana owns the Deep Panuke facilities, with the exception of the PFC, which is owned by Single Buoy Moorings Inc. (SBM). Encana applies corporate policies in Deep Panuke operations; SBM, by terms of its contract with Encana, applies Encana’s corporate policies in PFC operations. Facilities History 4. Encana submitted an application for a Certificate of Public Convenience and Necessity to the NEB for the Deep Panuke pipeline and associated onshore facilities (NEB Pipeline Application) in 2006. Encana also submitted a Development Plan Application for Deep Panuke to the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) in 2006. These applications provided a detailed description of the construction and operation phases of Deep Panuke. Decommissioning and abandonment activities were also described in the applications. 5. Deep Panuke was subject to the Canadian Environmental Assessment Act (CEAA) and submitted an Environmental Assessment Report in 2006 in support of the NEB, CNSOPB and CEAA processes. Decommissioning and abandonment activities were assessed in the approved 2006- 2007 Deep Panuke environmental assessment conducted under CEAA and in support of the NEB and CNSOPB approval processes. 6. The NEB issued a Certificate of Public Convenience and Necessity, GC-111, to Encana in respect of the Deep Panuke pipeline and associated onshore facilities pursuant to section 52 of the NEB Act in 2007. The NEB also issued Order GPLO-E112-007-2013 granting leave to open the Deep Panuke pipeline in 2013. 7. In 2017, Encana was reaching a stage of declining production and began preparing for decommissioning and abandonment activities. Deep Panuke Application for NEB Leave to Abandon • June 2018 4 8. On February 28, 2018, Encana met with NEB staff for a pre-application meeting to provide a status update and outline Encana’s plan to file an application to abandon the Deep Panuke pipeline and associated onshore facilities. 9. Encana submitted a Pre-Application Project Description to the NEB on March 19, 2018, providing preliminary information about Deep Panuke decommissioning and abandonment activities. 10. Encana permanently ceased production from Deep Panuke on May 7, 2018. 11. The Deep Panuke facilities continue to be safely maintained and monitored using the asset integrity plans and the maintenance management system for Deep Panuke. 12. No economically viable alternatives to abandonment have been identified. Scope of the Abandonment Activity 13. Section 74(1)(d) of the NEB Act and Section 50 of the OPR require that a company proposing to abandon the operation of a pipeline must submit an abandonment application to the NEB. Encana seeks NEB approval to abandon a 560 mm diameter pipeline, 175 km in length from the Deep Panuke PFC offshore to where it ties into M&NP facilities in Goldboro, Nova Scotia. It also includes the decommissioning and abandonment of associated onshore facilities, which include a beach valve station and a gas export pipeline terminus (GEPT) site. 14. Refer to Attachment 1 for the completed Guide B (Abandonment) and Guide K (Decommissioning) Filing Manual Checklists detailing concordance of this application. 15. Refer to the Deep Panuke Pipeline Abandonment Plan (Attachment 2) for detailed decommissioning and abandonment activities and methodology rationale. 16. For detailed abandonment schematics, refer to Attachment 3. 17. For the environmental and socio-economic assessment for Deep Panuke decommissioning and abandonment (ESA), refer to Attachment 4. 18. Decommissioning and abandonment
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