ENBRIDGE PIPELINES (VIRDEN) INC. Proposed NGL Injection Station and Connecting Pipeline W1M to W1M Near Cromer, Manitoba

Transcription

1 ENBRIDGE PIPELINES (VIRDEN) INC. Proposed NGL Injection Station and Connecting Pipeline W1M to W1M Near Cromer, Manitoba Manitoba Innovation, Energy and Mines Project Application Date: June 29 th, 2011

2 Table of Contents 1. Background Applicant Information Technical Qualifications Financial Qualifications Project Need Facility Description Facility Survey Plan Plot Plans Process Flow Diagrams (PFDs) Pipeline Description Physical Description Survey and Legal Description Substance Description Proposed Pipeline Construction Pipeline Operation Pipeline Safety Systems Corrosion Control Leak Detection and Emergency Shutdowns Landowner and Occupant Consultations Environment, Health and Safety Air Emissions Summary Environmental Plan Emergency Response Plan (ERP) Other Approvals List of Appendices Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Preliminary Facility and Pipeline Right of Way Survey Plan Proposed Facility Plot Plan Proposed Facility Process Flow Diagrams (PFDs) Summary of Vessel Manufacturer, Design and Registration Information Typical Natural Gas Liquid (NGL) Laboratory Analysis Pipeline Schematic and Typical Profile and Cross-Sections of Road, Stream and Utility Crossings

3 Page 1 of Background Enbridge Pipeline (Virden) Inc. (EPVI) is proposing to build, own and operate the following facilities: A natural gas liquids (NGL) injection station at a new site located at W1M, approximately 3 km north of the Village of Cromer along Hwy. #256; and, A 6 diameter pipeline that is approximately 700 m in length originating at the Facility in W1M and terminating at the existing Enbridge Westspur Cromer NGL lease W1M. This document will serve as an application to the Manitoba Innovation, Energy and Mines Petroleum Branch to seek approval for the above noted facilities. The application was prepared in accordance with the following acts and regulations: Section 75(1) of the Drilling and Production Regulations and Section 111 of the Oil and Gas Act (applicable to the proposed pump station facility); and, Section 149 (2) of the Oil and Gas Act (applicable to the proposed pipeline). This document provides detailed information regarding the applicant, Enbridge Pipeline (Virden) Inc.; detailed plans and information regarding the proposed Facility and pipeline; a summary of landowner and occupant correspondence and approvals; and, a summary of other approvals and permits being applied for concurrently. 2. Applicant Information Enbridge Pipeline (Virden) Inc. (EPVI) is a subsidiary of Enbridge Pipeline (Saskatchewan) Inc. (EPSI). EPSI owns and operates crude oil and liquids pipeline systems in Southeastern Saskatchewan and Southwestern Manitoba, comprised of approximately 356 km of trunk line and approximately 1,900 km of crude oil and liquids gathering system pipeline and related terminals and storage facilities. The crude oil and natural gas liquids are transported to Cromer, Manitoba and from there to Eastern Canada and the United States via connecting pipeline systems. 2.1 Technical Qualifications The EPSI Gathering System was built in 1955 to transport Crude Oil and Natural Gas Liquids to Eastern markets. EPSI has many years of experience designing and operating pipeline facilities in a safe and efficient manner. 2.2 Financial Qualifications Enbridge Saskatchewan is part of Enbridge Income Fund Holding Inc. (EIFH). EIFH is underpinned by a 50% interest in the Alliance Canada Pipeline (Alliance Canada), a 100%

4 Page 2 of 20 interest in Enbridge Pipelines (Saskatchewan) Inc. (EPSI) and Green Power assets which include a 50% interest in NRGreen and interests in three wind power projects in Western Canada. 3. Project Need The proposed Facility and associated Pipeline allows EPVI to collect NGLs from Provident and other producers or midstream companies in the area around Cromer, Manitoba and deliver them to existing Enbridge Pipelines Inc. (EPI) pipeline systems to fractionation facilities in Ontario and eventually on to markets in Canada and the US. The proposed injection facility located at W1M was chosen so that it was in close proximity to Provincial Hwy #256 and the existing EPI Cromer Terminal. 4. Facility Description A summary of the overall function of the Facility and the major equipment that will be required at the proposed Facility is outlined below. The purpose of this facility is to boost the pressure for NGL liquids from third parties and then tie into the existing Enbridge pipeline systems. Major equipment at the Facility will include two booster pumps, one flare knockout drum and flare stack. Other smaller equipment will include NGL volume measurement instruments, back pressure control valves and an MCC/Control Building. The facility will be fenced and secured at all times with access granted only to authorized personnel by way of a key-lock access system. Detailed information regarding the Facility and associated equipment are provided in the following sections. Note that the information provided below may be refined through the course of detailed engineering and regulatory reviews. 4.1 Facility Survey Plan A survey plan outlining the proposed Facility area and other facilities and infrastructure in the surrounding area is provided in Appendix A. 4.2 Plot Plans A proposed Facility plot plan is provided in Appendix B. Key features of the proposed Facility layout include: Utilization of an existing approach from Hwy. #256 and existing access road.

5 Page 3 of 20 A fenced lease approximately 215m x 135m in size. Two booster pumps will be installed in an open air skid. One MCC building will house the MCC and control equipment. Flare system including flare knockout drum and flare stack will be installed to handle PSV relief and maintenance activities. Equipment spacing will meet the minimum distance requirements outlined in the Table of Minimum Distance Requirements from the Drilling and Production Regulations of the Oil and Gas Act within the fenced area. In addition, Enbridge equipment spacing requirements will be met and addressed. One pig launching facility to allow for pigging of the proposed pipeline outlined in Section 5 below. One pig receiving facility to allow for pigging of third party pipeline. The entire site will be secured with a fence and a sliding main gate accessible by authorized personnel only using a key-lock system. Three man gates c/w panic hardware will also be installed. 4.3 Process Flow Diagrams (PFDs) A copy of the proposed Process Flow Diagrams (PFDs) is provided in Appendix C. Key pieces of equipment outlined on the PFDs include: Vessel Flare Knockout Drum A horizontal flare knockout drum will be installed in the flare header and will be 0.6m in diameter and 1.8m in length. A summary of detailed vessel information is provided in Appendix D. Pumps NGL Booster Pumps 2 x 100% redundant pumps, designed to boost the NGL pressure from the third party pipeline and then inject through the proposed 700m pipeline at a rate of between 200 and 300 m3/hr. Meter A mass flow meter will be installed at this pump station to measure the flow rate resulting from the pump control systems and to balance the pipelines for leak detection purposes. Pressure Relief Valves (PSVs) and ESDVs Necessary PSVs and ESDVs and the relief pressure set points required for safe operation of the facility are identified on the PFDs

6 Page 4 of 20 Piping and Valves Aboveground piping is designed as per the most stringent of ASME B31.3 piping, CSA Z662 and Enbridge piping specification. Miscellaneous Facilities Flare Stack Flare stack will be approximately 3 inches in diameter and 40 feet high and will be equipped with a continuous spark ignition system. Pigging Facilities One pig launcher and subsequent receiver barrel/trap will be equipped to allow pigging operation of new 700 m pipeline. One pig receiver barrel will be equipped to allow pigging operation of the third party (Provident) pipeline. 5. Pipeline Description 5.1 Physical Description EPVI is proposing to construct an NPS 6 inch pipeline to transport the NGL from the proposed injection station to the existing NGL custody transfer point for Enbridge Pipelines Inc. (EPI) Cromer Terminal. For the purpose of this application the proposed pipeline would originate at the proposed injection station in W1M and would terminate at the Enbridge Westspur NGL lease in W1M. The pipeline will be approximately 700m in total length. Additional details regarding the pipeline construction and operation are provided below Survey and Legal Description The proposed pipeline will originate at the proposed EPVI pump station W1M and will terminate at the existing Enbridge Westspur NGL lease located at W1M. The survey of the proposed pipeline route is provided in Appendix A and includes the location of all roads and plans in proximity to the pipeline right of way Substance Description The proposed pipeline will carry natural gas liquids (NGLs). Natural gas liquids (NGLs) are the hydrocarbon liquids contained within natural gas. NGLs are extracted from the natural gas stream at extraction plants and have a higher value when they have been separated out from the natural gas stream. Raw NGL is processed at fractionation facilities into the following primary components:

7 Page 5 of 20 Ethane (C2), is used by the petrochemical industry to produce ethylene and polyethylene, which are the building blocks for plastics and other materials. Propane (C3), is primarily used for residential heating and agricultural crop drying. Butane (C4), is either blended with condensate for use as a diluent in Alberta, or sold into U.S. markets. Condensate (C5), is used by heavy oil producers as diluents to decrease the viscosity of bitumen and heavy oil, to enable them to flow through pipelines. A typical analysis for the NGL that will be transported in the pipeline is provided in Appendix E. It is worth noting that the percentage of individual hydrocarbon constituents (i.e., ethane, propane, butane, etc.) can vary seasonally and by customer Proposed Pipeline Construction The total length of the pipeline will be approximately 700 m and will include two Enbridge mainline (EPI) crossings. In addition, a pig launcher will be installed at the proposed injection station W1M and a pig receiver will be installed at the existing Enbridge Westspur NGL lease located at W1M. A schematic of the pipe configuration as well as a typical profile and cross-section of the pipeline installation for pipeline crossings is provided in Appendix F. Where possible, the pipeline will be trenched using generally accepted installation practices with the pipeline having a minimum depth of cover of 1.5 m, while at pipeline crossings, the pipeline will be bored. EPVI will acquire the necessary crossing agreements and ensure that there is a minimum of 0.3 m cover between the crossing utilities. The pipeline is proposed to be constructed of NPS 6 inch diameter steel pipe. Specifically, the pipe will be mm (outside diameter) x 4.8 mm Wall Thickness (W.T.) and will be constructed of Grade 359 Category II, YJ-1 coated steel pipe per CSA Regulation Z245.1 Steel Line Pipe. The pipeline will be designed for 4,960 kpag maximum operating pressure. The pipeline will be hydro-tested at 6,200 kpag (1.25 x MOP) for a duration of 4 hours of strength test and 4 hours of leak test as outlined in CSA Guideline Z Oil & Gas Pipeline Systems Pipeline Operation The proposed pipeline is expected to operate at a rate between 200 m 3 /hr and 300 m 3 /hr. The pipeline will be continuously flooded with product, but will only operate when the NGL shipping window is available at the EPI Cromer Terminal. The pipeline is expected to operate once every 4 to 5 days and will typically be flowing for a period of 4 to 8 hours at a time.

8 Page 6 of Pipeline Safety Systems Corrosion Control The pipeline will be externally coated with Shaw Yellow Jacket (YJ-1) and all girth welds will be coated using cold applied bituminous tape. In addition, cathodic protection will be provided by the rectifier system currently installed at the Enbridge Westspur NGL lease located at W1M. The proposed corrosion control system will comply with Clause 9.0 of CSA Guideline Z Oil & Gas Pipeline Systems Leak Detection and Emergency Shutdowns EPVI intends to have a robust leak prevention and detection system in place along with an Emergency Shutdown plan for the pipeline. The proposed plan will include the following: Pigging of the pipeline at regular intervals to remove any build up of potentially corrosive material on the pipeline Smart pigging of the pipeline at regular intervals to identify any potential weaknesses in the pipeline Mass flow meters at either end of the pipeline along with leak detection software (ATMOS license) to monitor for any loss of product in the pipeline, as per the requirements of CSA Z662 Pressure Indicating Transmitters (PITs) to track any unexpected pressure loss in the pipeline This information will be used to plan maintenance, automatically shutdown the pipeline and/or alert the Control Room operators of abnormal situations. 6. Landowner and Occupant Consultations The consultation program for this Project was designed and implemented to ensure all potentially affected parties were engaged and provided with detailed and timely information respecting the Project. In addition, the consultation program was designed to ensure that impacted stakeholders had an opportunity to meet in person with an Enbridge Virden representative to discuss the Project details, answer their questions, and address any potential concerns. DESIGN & IMPLEMENTATION OF THE CONSULTATION PROGRAM Through experience gained from other projects in the area, the anticipated impacts on stakeholders were identified and assessed to determine expected levels and areas of public

9 Page 7 of 20 interest in the Project. Enbridge Virden also took into account the nature and type of work to be undertaken as part of the construction and operation of the Project. An appropriate consultation program was then designed. The following is a list of the drivers that influenced the design of the consultation program: As the Project work and new pipeline construction proposed are modest in scope and will occur adjacent to the existing Cromer Terminal, the nature, magnitude and potential impacts associated with the Project are not expected to be extensive or long-lasting. The Project s impacts with respect to construction noise, dust, traffic, and disruptions due to equipment movement are expected to be low. There will be an increase in noise arising from construction activities but it will cease immediately upon construction completion. The operation of the injection station will not result in a noticeable increase in noise above that which is currently being generated by the Cromer Terminal operations. At any given time, the work force on site will not exceed fifteen people and there is on-site parking within the Cromer Terminal to accommodate all constructionrelated vehicles. The Project will have a negligible impact on local infrastructure (such as roads, power utilities, water, and solid waste facilities) and on local services (such as accommodation, recreation, emergency and health care). The construction crews would be working no more than six days a week, during daylight hours; the construction window would be between six and eight weeks. Enbridge has typically had positive relationships with local landowners and regional stakeholders. There is a significant amount of oil and gas development taking place in this area, which means the landowners are sensitized to development of this nature. STAKEHOLDER GROUPS CONSULTED & METHOD OF CONSULTATION The following stakeholders have been identified by Enbridge Virden as being potentially affected by the Project: DIRECTLY IMPACTED LANDOWNER There is one landowner on whose property the Project is to be constructed. Enbridge Virden has and will continue to consult personally with this landowner and will obtain an Easement Agreement. PRIMARY STAKEHOLDER GROUPS

10 Page 8 of 20 Landowners and Tenants within a 1.5 km radius of the injection station construction activities Project information packages were hand delivered to landowners and tenants within the 1.5 km radius of the injection station. Note: Because the length of the proposed pipeline is only 0.7 km, there were no new stakeholders identified within a 0.5 km radius of the length of the pipeline who were not already included in the 1.5 km radius of the injection station. In addition, the Chief Petroleum Engineer of the Manitoba Petroleum Branch confirmed that Enbridge Virden was not required to consult with stakeholders within a 1.5 km radius of the end point of the 0.7 km pipeline, as this is the point at which the pipeline will be connected into an existing Enbridge Westspur NGL Facility. OTHER STAKEHOLDERS GROUPS RM of Pipestone Mailed copies of the Project information packages (same packages that were sent to landowners and tenants). The RM has also signed a letter of non-objection to the Project on May 24, Enbridge representatives briefly acknowledged the Project during a presentation made to the RM Council members during their June 9 Council meeting. The scope and location of the work associated with the project is not anticipated to affect any Aboriginal groups, nor to affect the exercising of Aboriginal or Treaty rights. Although not required for this project, Enbridge carries out Aboriginal consultation programs for its proposed projects where applicable to facilitate a shared understanding of mutual interests and potential project effects, and to develop appropriate courses of action. Appropriate notification and consultation also support achievement of our corporate policies and principles as set out in Enbridge s Aboriginal and Native American Peoples Policy and the company s Corporate Social Responsibility Policy, as well as helps to ensure our compliance with regulatory requirements and expectations.

11 Page 9 of 20 SUMMARY OF COMPLETED ACTIVITIES & RESULTS ACTIVITY TIMING 2011 DETAILS ISSUES AND/OR CONCERNS RAISED ENBRIDGE VIRDEN RESPONSE Telephone conversation with Directly Impacted Landowner Completed May 24, 2011 Completed with Project location details June 1, 2011 Enbridge Virden Land Agent had a phone conversation with the landowner regarding the proposed Project (the landowner currently lives out of province). During the phone conversation the Land Agent provided details regarding the location of Project work and followed-up with an containing a map with location details. The landowner has no issues with Project Compensation was also discussed and agreed upon. Mid-July The Easement Agreement is expected to be signed in mid-july when the landowner will be in

12 Page 10 of 20 ACTIVITY TIMING 2011 DETAILS ISSUES AND/OR CONCERNS RAISED ENBRIDGE VIRDEN RESPONSE Manitoba. Received Written Project approval from the RM of Pipestone Competed May 24, 2011 On May 17 a Project information package was sent to the RM of Pipestone for their approval. The RM signed-off on the Project at their May 24 Council meeting. No issues were identified Face-To-Face Visit with all landowners and tenants within a 1.5 km radius of the Project injection station Completed Week of June 13 Land agents hand delivered Project information packages to discuss the Project details, answer questions, and address any potential concerns. There was one landowner that Enbridge Virden was unable to meet face-to-face. Land agents left two telephone messages, and attempted to meet the landowner at his home. A Project information package was left at the door step of this landowner s home. Enbridge Virden has made all reasonable attempts to meet with this landowner in person, but has not had any success. As Enbridge Virden has left a Project information package at this landowner s residence, we believe this landowner has been adequately notified regarding the Project. Should this landowner contact Enbridge Virden, we are committed to responding in a

13 Page 11 of 20 ACTIVITY TIMING 2011 DETAILS ISSUES AND/OR CONCERNS RAISED ENBRIDGE VIRDEN RESPONSE timely manner. It should also be noted that while this landowner farms the quarter section that falls within the 1.5 km radius, he does not reside on this parcel of land.

14 Page 12 of Environment, Health and Safety 7.1 Air Emissions Summary The NGL processed at the proposed Facility is expected to be sweet; therefore, air dispersion modeling was not required for the proposed Facility or associated pipeline. As hydrogen sulfide (H 2 S) will not be present, odorous vapours are not expected to be emitted during normal operations. In order to prevent releases of hydrocarbon vapours, EPVI is proposing to install a flare stack at the facility. EPVI is committed to reducing emergency flaring events through sound engineering design practices, process safety management and prudent operating practices. However, flaring events may still be required in certain circumstances as outlined below: During maintenance activities to ensure workers are not exposed to hazardous conditions Emergency pressure relief flaring in the event of high pressure in the piping systems resulting from a blocked valve or other non-routine event 7.2 Environmental Plan EPVI will utilize company manuals (Environmental Guidelines for Construction, Waste Management Plan, and Vegetation Management Plan) and procedures (Operating and Maintenance Procedures) to develop this project in an environmentally responsible manner. Relevant topics included in our documents include, but not are limited to: Site and right of way access Erosion and silt control Topsoil salvage Pipeline installation techniques Trench water management Vegetation, habitat, and wildlife protection measures Environmental inspection Reclamation Spill reporting Emergency mitigation procedures 7.3 Emergency Response Plan (ERP) A site-specific Emergency Response Plan (ERP) will be developed for the operation of the facility and will address spills and other emergencies in accordance with the Drilling

15 Page 13 of 20 and Production Regulation (Section 104). The ERP will include the following key pieces of information: A description of the emergency response, including notification procedures; Map highlighting water-covered areas, spill control points, access roads, municipal and industrial water supply intakes, pipelines, wells and other oil and gas facilities; Equipment available for containing spills and recovering any lost fluid including the location of such equipment; Procedure respecting any spill that could occur on the site, including containment, recovery, and clean-up of the spill; Policies respecting the safety of workers at the site of the spill; and, The duties of personnel in an emergency response or a training exercise. 8. Other Approvals In addition to the Petroleum Branch approval, EPVI is either concurrently seeking or intends to seek the additional approvals and permits outlined below. Manitoba Conservation Manitoba Conservation has indicated that an Environmental License will be included for the entire project, including the provident portion. However, they have also indicated that no additional information from EPVI. Manitoba Infrastructure and Transportation EPVI intends to notify Manitoba County roads and obtain approval if required. Other Utilities and Right of Ways EPVI intends to notify and obtain crossing agreements for all registered utilities and existing rights of way. Affected Municipalities Although the pipeline and proposed Facility are not located within 1.5 kilometers of any urban municipality, EPVI intends to notify the RM of Pipestone where the proposed facilities will be located. Department of Municipal Affairs, Culture and Housing (Heritage Branch)

16 Page 14 of 20 Should any archeological sites along the pipeline right of way be identified through desktop reviews of available information, EPVI will seek the necessary approvals to install the proposed pipeline.

17 Page 15 of 20 Appendix A Preliminary Facility and Pipeline Right of Way Survey Plan

18

19 Page 16 of 20 Appendix B Proposed Facility Plot Plan

20

21 Page 17 of 20 Appendix C Proposed Facility Process Flow Diagrams (PFDs)

22

23

24 Page 18 of 20 Appendix D Summary of Vessel Information

25

26 Page 19 of 20 Appendix E Typical Natural Gas Liquid (NGL) Laboratory Analysis

27

28 Page 20 of 20 Appendix F Pipeline Schematic and Typical Profile and Cross-Sections of Pipeline and Utility Crossings

29

30