CA PDF Page 1 of 30 Energy East Pipeline Ltd. Consolidated Application Section 5 Volume 7: Construction and Operations Marine Operations 5.0 MARINE OPERATIONS This section provides an overview of marine-based operations of the Canaport Energy East marine terminal located near Saint John, NB. It also includes: a brief review of the regulatory framework and industry standards related to navigation and marine operations in Canadian waters, including a description of the Technical Review Process of Marine Terminal Systems and Transshipment Sites (TERMPOL) that Energy East is undertaking for the marine terminal a description of the site-specific marine shipping elements associated with the navigation of tankers to and from the marine terminal an overview of the marine terminal operations, including the loading of tankers and spill prevention The Canaport Energy East marine terminal will involve facilities for loading crude oil from the onshore tank terminal onto crude oil tankers. It will be constructed at the terminus of the Project near Saint John, NB, and will be operated by a subsidiary of Irving Oil Company, Limited (Irving Oil) on behalf of Energy East. Safety and environmental protection measures have been incorporated in the design of the marine terminal to reduce the potential for, and risk of incidents. 5.1 REGULATORY FRAMEWORK FOR SHIPPING The design and operation of the Canaport Energy East marine terminal is in accordance with the regulatory framework outlined in the following paragraphs. Marine transportation in Canadian waters is authorized and regulated through the Canada Shipping Act, 2001 and related legislation and regulations administered by Transport Canada and the Canadian Coast Guard. The Canada Shipping Act, 2001 is the umbrella act for marine activities in Canadian waters and includes numerous regulations. For all of the regulations and orders pursuant to the Canada Shipping Act, 2001, and related acts and regulations, see the Transport Canada website1. In conjunction with the Arctic Waters Pollution Prevention Act and the international conventions and standards established by the International Maritime Organization (IMO), these regulations and standards provide the framework for: marine safety pollution prevention enforcement 1 http://www.tc.gc.ca/eng/acts-regulations/acts-2001c26.htm May 2016 Page 5-1 CA PDF Page 2 of 30 Energy East Pipeline Ltd. Section 5 Consolidated Application Marine Operations Volume 7: Construction and Operations oil spill preparedness 5.1.1 Canada Shipping Act The Canada Shipping Act, 2001 is the principal legislation governing safety in marine transportation and recreational boating, as well as protection of the marine environment. It applies to Canadian vessels operating in all waters and to all vessels operating in Canadian waters. The Canada Shipping Act, 2001 “promotes the sustainable growth of the marine shipping industry without compromising safety.”2 The objectives of the Canada Shipping Act, 2001 are to:3 protect the health and well-being of individuals, including the crews of vessels, who participate in marine transportation and commerce promote safety in marine transportation and recreational boating protect the marine environment from damage due to navigation and shipping activities develop a regulatory scheme that encourages viable, effective and economical marine transportation and commerce promote an efficient marine transportation system develop a regulatory scheme that encourages the viable, effective and economical use of Canadian waters by recreational boaters ensure that Canada can meet its international obligations under bilateral and multilateral agreements with respect to navigation and shipping encourage the harmonization of marine practices establish an effective inspection and enforcement program for marine transportation 5.1.2 Vessel Regulation In addition to the Canada Shipping Act, 2001, marine transportation is also subject to international conventions, including the: International Convention for the Prevention of Pollution from Ships (MARPOL), which was designed to minimize pollution of the marine environment by ships from both operational and accidental causes, and which sets the regulations for ballast water discharge International Safety Management (ISM) Code, which was developed by the IMO and became mandatory in 1994 with the adoption of Safety of Life at Sea (SOLAS), Chapter IX. 2 Extract from Transport Canada website (see Footnote 1). 3 Extracted from the Canada Shipping Act, 2001. Page 5-2 May 2016 CA PDF Page 3 of 30 Energy East Pipeline Ltd. Consolidated Application Section 5 Volume 7: Construction and Operations Marine Operations Implementation of the ISM Code became mandatory for all tankers and chemical carriers (and gas and bulk carriers over 500 gross tons) on 1 July 1998. A key element of the code stipulates that companies must develop, implement and maintain a verifiable safety management system with the objective of obtaining a Safety Management Certificate for the vessel. 5.1.3 Pilotage Act The Canadian government (Transport Canada) enacted the Pilotage Act in 1972. The mandate of pilotage authorities is to establish, operate, maintain and administer, in the interest of safety, an efficient pilotage service in their region. Pursuant to the Pilotage Act, each authority: establishes compulsory pilotage areas prescribes the class of ship requiring pilotage administers and regulates pilot’s licences and certificates controls tariffs The Pilotage Act establishes four authorities, each with regulations and responsibility for the following regions: Atlantic Pacific Great Lakes Laurentian The Atlantic Pilotage Authority’s area of operation is all Canadian waters in and around the provinces of NB, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador. Located in NB, Saint John is one of the compulsory pilotage areas under the Atlantic Pilotage Authority. 5.1.4 Canada Marine Act The Canadian port authorities were created under the Canada Marine Act to operate particular ports on behalf of the Government of Canada. In 1999, the Minister of Transport incorporated the Saint John Port Authority (SJPA), making it one of the designated port authorities under the Canada Marine Act. The Canaport Energy East marine terminal will be located within the designated jurisdiction of the SJPA. 5.1.5 Saint John Port Authority The Canaport Energy East marine terminal will be located in the jurisdiction of the Port of Saint John, which is New Brunswick’s largest port, handling primarily bulk and break-bulk cargo such as petroleum products and liquefied natural gas (LNG), May 2016 Page 5-3 CA PDF Page 4 of 30 Energy East Pipeline Ltd. Section 5 Consolidated Application Marine Operations Volume 7: Construction and Operations potash and salt and other bulk cargos. The Port of Saint John also has the only container terminal in NB and a growing cruise ship industry. The Port of Saint John harbour limits (i.e., regulatory limits) extend into the Bay of Fundy, from Partridge Island west to Musquash Harbour, and due south to Cape Spencer at 45 08' 03"N, 65 54' 37"W. The harbour includes the Irving Canaport Single Buoy Mooring (SBM) and Canaport LNG Terminal. The Port of Saint John’s designated anchorages and pilot boarding areas are also contained within the limits of the outer harbour. For the limits of the SJPA, see Figure 5-1. 4 Figure 5-1: Limits of the Saint John Port Authority (CA Rev. 0) The SJPA publishes detailed vessel practices and procedures that include: pilot boarding stations heavy weather provisions tugs navigation restrictions 4 Figure 5-1 was extracted from Saint John Port Authority 2011 Land Use Plan. Port Saint John. Page 5-4 May 2016 CA PDF Page 5 of 30 Energy East Pipeline Ltd. Consolidated Application Section 5 Volume 7: Construction and Operations Marine Operations 5.1.6 Vessel Traffic Services Regulations Under the Canada Shipping Act, 2001, the Vessel Traffic Services Zones Regulations define the Vessel Traffic Services (VTS) provided by the Canadian Coast Guard MCTS, which includes marine safety communications and management of vessel traffic movement. Local Marine Communication and Traffic Services (MCTS) centres monitor distress frequencies, broadcast weather information and notices to shipping, and coordinate the movement of vessel traffic within VTS zones. The Bay of Fundy region is covered by the VTS Zone Fundy. The local MCTS office is located at Shannon Hill in Dartmouth, Nova Scotia at the time of this filing. For the VTS Zone Fundy, see Figure 5-2. 5.1.7 Oil-Handling Facility Requirements The Canaport Energy East marine terminal will be an OHF, as defined by Section 2 of the Canada Shipping Act, 2001. As such, there are oil spill planning and prevention requirements that the terminal must comply with. The following regulations and standards apply to oil spill response requirements at OHFs: Response Organizations and Oil-Handling Facilities Regulations, SOR/95-405 Oil-Handling Facilities Standards, 1995 (TP12402) Environmental Response Arrangements Regulations, SOR/2008-275 Vessel Pollution and Dangerous Chemicals Regulations’ SOR/2012-69 OHF requirements will be assessed as part of TERMPOL. This study details the planning and prevention measures that the marine terminal, as an OHF, will implement. For emergency planning procedures, see Section 6, Emergency Preparedness and Response. 5.1.8 Terminal Security The Marine Transportation Security Regulations (MTSR) enacted pursuant to