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National Energy Board Report Enbridge Pipelines Inc. OH-002-2015 Volume II: Our Detailed Assessment April 2016 Facilities National Energy Board National Energy Board Report In the Matter of Enbridge Pipelines Inc. Application dated 5 November 2014 for the Line 3 Replacement Program OH-002-2015 Volume II: Our Detailed Assessment April 2016 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. 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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 2016 as © Sa Majesté la Reine du Chef du Canada 2016 represented by the National Energy Board représentée par l’Office national de l’énergie Cat No. NE4-4/2016-2E No de cat. NE4-4/2016-2F ISBN 978-0-660-04894-9 ISBN 978-0-660-04895-6 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 517 Tenth Avenue S.W. 517, Dixième Avenue S.-O. Calgary, Alberta, T2R 0A8 Calgary (Alberta) T2R 0A8 E-Mail: [email protected] Courrier électronique : [email protected] Fax: 403-292-5503 Fax : 403-292-5576 Phone: 1-800-899-1265 Téléphone : 1-800-899-1265 For pick-up at the NEB office: Des exemplaires sont également disponibles à la Library bibliothèque de l’Office 2nd Floor Deuxième étage Printed in Canada Imprimé au Canada Volume II Table of Contents List of Figures ..................................................................................................................................... iii List of Tables ...................................................................................................................................... iv List of Appendices .............................................................................................................................. iv Glossary of Terms, Abbreviations and Units ....................................................................................v Recital and Appearances .....................................................................................................................x 1. Purpose and Overview ........................................................................................................... 1 1.1 The Application and Description of Project ................................................................ 1 1.1.1 The Line 3 Replacement Pipeline .................................................................... 2 1.1.2 Decommissioning of the Existing Line 3 Pipeline .......................................... 3 1.2 OH-002-2015 Hearing ................................................................................................. 3 1.2.1 NEB Hearing Order ......................................................................................... 3 1.2.2 Hearing Participation ....................................................................................... 3 1.2.3 Written Hearing Process .................................................................................. 5 1.2.4 Oral Hearing Process ....................................................................................... 5 1.2.5 Participant Funding .......................................................................................... 6 1.3 Life Cycle Approach .................................................................................................... 7 2. Economic Feasibility .............................................................................................................. 8 2.1 Introduction .................................................................................................................. 8 2.2 Need for Facilities ........................................................................................................ 8 2.2.1 Oil Supply ........................................................................................................ 8 2.2.2 Markets .......................................................................................................... 10 2.2.3 Ability to Finance .......................................................................................... 12 2.2.4 Economic Feasibility ..................................................................................... 12 2.3 Financial Capacity ..................................................................................................... 13 3. Design, Construction and Operation of the Line 3 Replacement Pipeline ..................... 18 3.1 Engineering Matters ................................................................................................... 18 3.1.1 Description of Facilities ................................................................................. 18 3.1.2 Design and Construction ................................................................................ 19 3.1.2.1 Geotechnical Matters ...................................................................... 19 3.1.2.2 Valves ............................................................................................. 22 3.1.2.3 Pipe Toughness ............................................................................... 24 3.1.3 Quality Assurance .......................................................................................... 25 3.1.3.1 Joining Program .............................................................................. 25 3.1.3.2 Weld Inspection .............................................................................. 25 3.1.3.3 Pressure Testing .............................................................................. 27 3.1.3.4 Baseline In-Line Inspection ............................................................ 27 3.1.4 Integrity Management .................................................................................... 28 3.1.4.1 Corrosion and Cracking .................................................................. 28 3.1.4.2 In-Line Inspection ........................................................................... 30 3.1.4.3 Repair Criteria ................................................................................. 31 i 3.1.5 Operations ...................................................................................................... 32 3.1.5.1 Back up Power ................................................................................ 32 3.1.5.2 Over Pressure Protection System .................................................... 33 3.1.5.3 Leak Detection System ................................................................... 34 3.1.5.4 Emergency Shutdown System ........................................................ 37 3.2 Emergency Response Matters .................................................................................... 38 3.2.1 Enbridge’s Emergency Preparedness and Response Planning ...................... 38 3.2.2 Safety and Security ........................................................................................ 43 3.3 Land Matters .............................................................................................................. 45 3.3.1 Route Selection .............................................................................................. 45 3.3.2 Land Requirements ........................................................................................ 47 3.3.3 Land Acquisition Process .............................................................................. 48 4. Decommissioning of the Existing Line 3 Pipeline ............................................................. 50 4.1 Decommissioning In-Place Versus Pipeline Removal .............................................. 51 4.2 Engineering Matters ................................................................................................... 57 4.2.1 Decommissioning Activities .......................................................................... 57 4.2.2 Corrosion,