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NEB Reasons for Decision, Emera Brunswick Pipeline Company Ltd Reasons for Decision Emera Brunswick Pipeline Company Ltd. GH-1-2006 May 2007 Facilities and Tolls and Tariffs National Energy Board Reasons for Decision In the Matter of Emera Brunswick Pipeline Company Ltd. Application dated 23 May 2006 for a Certificate of Public Convenience and Necessity under section 52 of the National Energy Board Act authorizing Emera Brunswick Pipeline Company Ltd. (EBPC) to construct and operate the Brunswick Pipeline, an Order under Part IV of the NEB Act approving the tolls for the Brunswick Pipeline and an Order designating EBPC a Group 2 company. GH-1-2006 May 2007 Permission to Reproduce Materials may be reproduced for personal, educational and/or non-profit activities, in part or in whole and by any means, without charge or further permission from the National Energy Board, provided that due diligence is exercised in ensuring the accuracy of the information reproduced; that the National Energy Board is identified as the source institution; and that the reproduction is not represented as an official version of the information reproduced, nor as having been made in affiliation with, or with the endorsement of the National Energy Board. For permission to reproduce the information in this publication for commercial redistribution, please e-mail: [email protected] Autorisation de reproduction Le contenu de cette publication peut être reproduit à des fins personnelles, éducatives et(ou) sans but lucratif, en tout ou en partie et par quelque moyen que ce soit, sans frais et sans autre permission de l’Office national de l’énergie, pourvu qu’une diligence raisonnable soit exercée afin d’assurer l’exactitude de l’information reproduite, que l’Office national de l’énergie soit mentionné comme organisme source et que la reproduction ne soit présentée ni comme une version officielle ni comme une copie ayant été faite en collaboration avec l’Office national de l’énergie ou avec son consentement. Pour obtenir l’autorisation de reproduire l’information contenue dans cette publication à des fins commerciales, faire parvenir un courriel à : [email protected] © Her Majesty the Queen in Right of Canada 2007 as © Sa Majesté la Reine du Chef du Canada 2007 represented by the National Energy Board représentée par l’Office national de l’énergie Cat No. NE22-1/2007-2E No de cat. NE22-1/2007-2F ISBN 978-0-662-45735-0 ISBN 978-0-662-09065-6 This report is published separately in both official Ce rapport est publié séparément dans les deux languages. This publication is available upon request langues officielles. On peut obtenir cette publication in multiple formats. sur supports multiples, sur demande. Copies are available on request from: Demandes d’exemplaires : The Publications Office Bureau des publications National Energy Board Office national de l’énergie 444 Seventh Avenue S.W. 444, Septième Avenue S.-O. Calgary, Alberta, T2P 0X8 Calgary (Alberta) T2P 0X8 E-Mail: [email protected] Courrier électronique : [email protected] Fax: 403-292-5576 Télécopieur : 403-292-5576 Phone: 403-299-3562 Téléphone : 403-299-3562 1-800-899-1265 1-800-899-1265 For pick-up at the NEB office: Des exemplaires sont également disponibles à la Library bibliothèque de l’Office Ground Floor (rez-de-chaussée) Printed in Canada Imprimé au Canada Table of Contents List of Figures............................................................................................................................... iii List of Tables ................................................................................................................................ iii List of Appendices........................................................................................................................ iii Approximate Conversions........................................................................................................... iv Abbreviations .................................................................................................................................v Glossary of Terms...................................................................................................................... viii Recital and Appearances............................................................................................................ xii 1. Introduction........................................................................................................................1 1.1 Project Overview .....................................................................................................1 1.2 Environmental Assessment Process.........................................................................3 2. Role of the Board ...............................................................................................................4 2.1 Public Participation..................................................................................................4 2.2 Mandate of the National Energy Board ...................................................................5 2.3 Principles of Natural Justice ....................................................................................7 2.4 Assessing a Facilities Application under Part III, section 52 of the NEB Act ........8 2.5 Public Interest and the Public Convenience and Necessity Test under Part III of the NEB Act.......................................................................................................10 2.6 Applying the Test in the GH-1-2006 Hearing to EBPC’s Part III Application.....12 2.7 Conclusion .............................................................................................................13 3. Facilities and Safety of Operation ..................................................................................14 3.1 Facilities Description .............................................................................................14 3.2 Pipeline Design ......................................................................................................14 3.2.1 Codes and Standards............................................................................14 3.2.2 Materials and Line Pipe .......................................................................15 3.3 Pipeline Construction.............................................................................................15 3.3.1 Blasting ................................................................................................15 3.3.2 Horizontal Directional Drilling (HDD) ...............................................16 3.4 Pipeline Safety .......................................................................................................17 3.4.1 Risk Assessment..................................................................................17 3.4.2 Quality Assurance and Integrity Programs..........................................19 3.4.2.1 Quality Assurance Program .............................................. 19 3.4.2.2 Pipeline Integrity Management Program.......................... 19 3.4.3 Operation..............................................................................................19 3.4.3.1 Control, Monitoring, and Leak Detection......................... 20 3.4.3.2 Emergency Preparedness and Response ........................... 20 i 4. Supply and Markets.........................................................................................................26 4.1 Justification for the Project ....................................................................................26 4.2 Gas Supply.............................................................................................................28 4.2.1 Supply to the Project............................................................................28 4.2.2 Regional State of Supply .....................................................................30 4.2.3 Maritime Canada Access to Supply.....................................................31 4.3 Markets and Need for the Proposed Pipeline.........................................................34 4.3.1 Demand for Gas...................................................................................34 4.3.2 Price of Natural Gas.............................................................................36 4.4 Competition............................................................................................................37 5. Consultation......................................................................................................................39 5.1 Public Consultation Program.................................................................................39 5.2 Aboriginal Consultation.........................................................................................43 6. Environment, Socio-Economic, Routing and Land Matters........................................48 6.1 Environmental Assessment under the CEA Act ....................................................48 6.2 Socio-Economic Matters........................................................................................49 6.2.1 Employment and Economy..................................................................50 6.2.2 Services................................................................................................53 6.2.3 Infrastructure........................................................................................54 6.2.4 Property Values....................................................................................57 6.3 Routing and Land Matters
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