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Final Argument of Trans Mountain

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Final Argument of Trans Mountain Hearing Order OH-001-2014 Board File: OF-Fac-Oil-T260-2013-0302 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., c. 19, s. 52, 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 (“CPCN”) and other related approvals pursuant to Part III of the NEB Act. FINAL ARGUMENT OF TRANS MOUNTAIN August 20, 2015 To: The Secretary National Energy Board 517 – 10th Avenue S.W. Calgary, AB T2R 0A8 TABLE OF CONTENTS 1. INTRODUCTION............................................................................................................ 6 1.1 Overview ................................................................................................................ 6 1.2 The NEB Process ................................................................................................. 11 1.3 Issues Outside of the NEB’s Jurisdiction............................................................. 17 1.4 Emergency Response ........................................................................................... 19 1.5 Trans Mountain’s Proposed Routing Will Minimize Environmental Impacts ................................................................................................................. 22 1.6 The Project Will Result in Significant Economic Benefits for Canada ............... 24 1.7 Meaningful Aboriginal Engagement and Participation ....................................... 26 1.8 Reasonable Mitigation of Stakeholder Concerns ................................................. 27 1.9 Draft Conditions................................................................................................... 31 1.10 Organization of Final Argument .......................................................................... 36 2. LEGAL FRAMEWORK ............................................................................................... 39 2.1 Overview .............................................................................................................. 39 2.2 Determining the Canadian Public Interest ........................................................... 39 2.2.1 Environmental Benefits and Burdens ...................................................... 47 2.2.2 Social Benefits and Burdens .................................................................... 66 2.2.3 Economic Benefits and Burdens .............................................................. 68 2.2.4 Aboriginal Engagement ........................................................................... 76 2.3 TERMPOL Review .............................................................................................. 81 2.4 Provincial Considerations .................................................................................... 84 2.5 Legal Framework Conclusion .............................................................................. 89 3. PROJECT DESIGN....................................................................................................... 91 3.1 Overview .............................................................................................................. 91 3.2 The Project ........................................................................................................... 94 3.3 Project Alternatives .............................................................................................. 96 3.4 Routing ............................................................................................................... 101 3.4.1 Routing Criteria and Engagement .......................................................... 103 3.4.2 Landowner Engagement ........................................................................ 109 3.5 Potential Municipal Infrastructure Impacts and Mitigation ............................... 110 3.6 Construction ....................................................................................................... 116 3.7 Watercourse Crossings....................................................................................... 119 - 3 - 3.8 Existing Pipeline Segments................................................................................ 122 3.9 Pump Stations .................................................................................................... 127 3.10 Terminals Design and Location ......................................................................... 129 3.11 Terminals Fire Protection .................................................................................. 134 3.12 Westridge Marine Terminal Design and Location ............................................. 140 3.13 Operations and Maintenance.............................................................................. 142 3.14 Routine Inspection and Leak Detection ............................................................. 144 3.15 Seismic and Natural Hazards ............................................................................. 146 3.16 Geotechnical Considerations ............................................................................. 150 3.17 Risk Assessment ................................................................................................ 153 3.18 Environmental Protection Plans ......................................................................... 159 3.19 Reclamation Management Plan ......................................................................... 161 3.20 Project Design Conclusion ................................................................................. 162 4. EMERGENCY RESPONSE ....................................................................................... 165 4.1 Overview ............................................................................................................ 165 4.2 NEB Emergency Management Program Requirements .................................... 166 4.3 Consultation Regarding the Emergency Management Program Documents .... 167 4.4 Pipeline and Facilities Spill Response ............................................................... 169 4.5 Marine Spill Response ....................................................................................... 170 4.6 Emergency Response Conclusion ...................................................................... 173 5. PUBLIC PARTICIPATION ....................................................................................... 174 5.1 Overview ............................................................................................................ 174 5.2 Trans Mountain’s Public Consultation Program................................................ 174 5.3 Public Information and Outreach Tools ............................................................. 176 5.3.1 Public Consultation Activities ............................................................... 177 5.4 Landowner Consultation .................................................................................... 180 5.4.1 Government Consultation ...................................................................... 182 5.5 Future and Ongoing Consultation ...................................................................... 183 5.6 Conclusion ......................................................................................................... 186 6. ABORIGINAL ............................................................................................................. 188 6.1 Aboriginal Interests and Consultation with Aboriginal Groups ........................ 188 6.1.2 Identification Method............................................................................. 192 6.1.3 Aboriginal Engagement Program Design .............................................. 194 - 4 - 6.1.4 Engagement Tools ................................................................................. 196 6.1.5 Modifications to the Project as a Result of Engagement ....................... 198 6.1.6 Government of Canada’s Consultation Process with Aboriginal Groups .................................................................................................... 199 6.1.7 Aboriginal Oral Traditional Evidence Hearings .................................... 201 6.1.8 Interests, Concerns and Mitigations ....................................................... 203 6.2 Aboriginal Procurement, Employment and Training ......................................... 211 6.3 Future and Ongoing Consultation ...................................................................... 215 7. ENVIRONMENT ......................................................................................................... 217 7.1 Overview ............................................................................................................ 217 7.1.2 Purpose of EA ........................................................................................ 217 7.1.3 Methodology .......................................................................................... 219 7.2 Findings of Trans Mountain’s ESA ................................................................... 231 7.2.1 Pipeline and Facilities ............................................................................ 231 7.2.2 Increased Marine Shipping to and from the
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