Trans Mountain Pipeline ULC
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Trans Mountain Pipeline ULC Trans Mountain Expansion Project An Application Pursuant to Section 52 of the National Energy Board Act December 2013 Project Overview, Economics Volume 2 & General Information CANADA NATIONAL ENERGY BOARD IN THE MATTER OF the National Energy Board Act, R.S.C. 1985, c. N-7, as amended, (“NEB Act”) and the Regulations made thereunder; AND IN THE MATTER OF the Canadian Environmental Assessment Act, 2012, S.C. 2012, c. 37, as amended, and the Regulations made thereunder; AND IN THE MATTER OF an application by Trans Mountain Pipeline ULC as General Partner of Trans Mountain Pipeline L.P. (collectively “Trans Mountain”) for a Certificate of Public Convenience and Necessity and other related approvals pursuant to Part III of the NEB Act APPLICATION BY TRANS MOUNTAIN FOR APPROVAL OF THE TRANS MOUNTAIN EXPANSION PROJECT December 2013 To: The Secretary The National Energy Board 444 — 7th Avenue SW Calgary, AB T2P 0X8 Trans Mountain Expansion Project Application Pursuant to Section 52 of the National Energy Board Act Guide to the Application Application Transmittal ‐ Letter to the National Energy Board Volume 1 Summary Volume 2 Project Overview, Economics and General Information Volume 3A Public Consultation Volume 3B Aboriginal Engagement Volume 3C Landowner Relations Volume 4A Project Design and Execution – Engineering Volume 4B Project Design and Execution – Construction Volume 4C Project Design and Execution – Operations and Maintenance Volume 5A Environmental and Socio‐Economic Assessment – Biophysical Volume 5B Environmental and Socio‐Economic Assessment – Socio‐Economic Volume 5C Environmental and Socio‐Economic Assessment – Biophysical Technical Reports Volume 5D Environmental and Socio‐Economic Assessment – Socio‐Economic Technical Reports Volume 6A Environmental Compliance Volume 6B Pipeline Environmental Protection Plan Volume 6C Facilities Environmental Protection Plan Volume 6D Westridge Marine Terminal Environmental Protection Plan Volume 6E Environmental Alignment Sheets Volume 7 Risk Assessment and Management of Pipeline and Facility Spills Volume 8A Marine Transportation Volume 8B Marine Environmental and Socio‐Economic Technical Reports Volume 8C TERMPOL Reports This volume contains: Volume 2 Section 1.0 Introduction Direct Written Evidence of Steven J. Kelly, Appendix A Section 2.0 Project Description IHS Global Canada Limited Section 3.0 Project Need and Economic Feasibility The Trans Mountain Expansion Project: Section 4.0 Pipeline Route and Facility Siting Appendix B Understanding the Economic Benefits for Section 5.0 Land Relations, Rights and Acquisition Canada and its Regions Section 6.0 References Direct Evidence of John J. Reid of Section 7.0 Appendices Appendix C Concentric Energy Advisors, Inc., to the National Energy Board Notice Pursuant to Section 87(1) of the Appendix D National Energy Board Act For Easement – British Columbia and Alberta Agreement for Easement, Province of Appendix E Alberta Land Title Act Form C and Statutory Right Appendix F of Way Agreement, Province of British Columbia Agreement for Temporary Working Space, Appendix G Province of Alberta Agreement for Temporary Working Space, Appendix H Province of British Columbia Option to Purchase Agreements for British Appendix I Columbia and Alberta Trans Mountain Pipeline (ULC) Trans Mountain Expansion Project Volume 2 Volume 2 – Project Overview, Economics and General Information Page 2–i TABLE OF CONTENTS Page 1.0 INTRODUCTION ............................................................................................................... 1 1.1 Project Overview ................................................................................................... 1 1.2 The Trans Mountain Pipeline................................................................................. 2 1.2.1 About the Applicant.................................................................................... 2 1.3 Regulatory Framework .......................................................................................... 5 1.3.1 Federal Regulatory Framework ................................................................. 6 1.3.2 Other Federal Requirements ..................................................................... 7 1.4 TERMPOL Review Process .................................................................................. 9 1.5 Non-NEB Regulatory Approvals .......................................................................... 10 1.5.1 Provincial Permitting Requirements ......................................................... 10 2.0 PROJECT DESCRIPTION .............................................................................................. 12 2.1 Pipeline ................................................................................................................ 16 2.2 Pump Stations ..................................................................................................... 20 2.2.1 Pump Station Operations......................................................................... 22 2.3 Terminals ............................................................................................................. 22 2.3.1 Edmonton, Sumas, and Burnaby Terminals ............................................ 22 2.3.2 Westridge Marine Terminal ...................................................................... 22 2.3.3 Terminal Operations ................................................................................ 22 2.4 Mainline Block Valves and Sending/Receiving Traps ......................................... 26 2.5 Power Lines and Permanent Access Roads ....................................................... 27 2.6 Marine Shipping Activities Associated with the Project ....................................... 27 2.7 Stakeholder Consultation, Aboriginal Engagement and Landowner Relations ............................................................................................................. 30 2.8 Project Execution and Schedule.......................................................................... 32 2.9 Project Cost Estimate .......................................................................................... 34 2.9.1 Capital Cost Estimate .............................................................................. 34 2.9.2 Abandonment Cost Estimate ................................................................... 34 3.0 PROJECT NEED AND ECONOMIC FEASIBILITY ......................................................... 36 3.1 Introduction .......................................................................................................... 36 3.1.1 Purpose ................................................................................................... 36 3.1.2 Need ........................................................................................................ 36 3.2 Commercial Arrangements .................................................................................. 37 3.2.1 Transportation Agreements ..................................................................... 37 3.2.2 Financial Capability of the Applicant ........................................................ 38 3.3 Market Supply and Demand Outlook................................................................... 40 3.3.1 Supply and Demand ................................................................................ 40 3.3.2 Crude Oil Supplies from Contracting Shippers ........................................ 41 3.4 Project Benefits ................................................................................................... 41 3.4.1 Macroeconomic and Fiscal Benefits ........................................................ 41 3.4.2 Energy Industry Benefits.......................................................................... 42 3.5 Economic Feasibility ............................................................................................ 43 4.0 PIPELINE ROUTE AND FACILITY SITING .................................................................... 46 Trans Mountain Pipeline (ULC) Trans Mountain Expansion Project Volume 2 Volume 2 – Project Overview, Economics and General Information Page 2–ii 4.1 Alternatives .......................................................................................................... 46 4.2 Pipeline Corridor Selection .................................................................................. 46 4.2.1 Environmental Setting .............................................................................. 46 4.2.2 General Routing Objectives and Criteria ................................................. 49 4.2.3 Proposed Pipeline Corridor ...................................................................... 50 4.3 Facility Siting ....................................................................................................... 58 5.0 LAND RELATIONS, RIGHTS AND ACQUISITION ......................................................... 59 5.1 Introduction .......................................................................................................... 59 5.1.1 Purpose of this Section ............................................................................ 59 5.1.2 Project Overview...................................................................................... 59 5.2 Land Requirements ............................................................................................. 59 5.2.1 Right-of-Way ...........................................................................................