Trans Mountain Expansion Project

Transcription

1 Trans Mountain Expansion Project The Rotary Club of Chilliwack Fraser Greg Toth, Project Director October 17, 2012

2 Agenda Overview of Trans Mountain Pipeline Safety and Emergency Response Proposed Expansion Project Routing Engagement Economic and Local Benefits

3 Trans Mountain Pipeline System Safe, efficient operating system for almost 60 years (since 1953) Transports crude oil and refined products to interior and south coast of British Columbia, WA State Length: 1,150 km Diameter: 24 to 36 inch Regulated by National Energy Board Last expansion completed

4 Product Destination 4

5 Pipeline Safety Integrity Management Program Pipeline Protection Corrosion Control - Pipeline coatings Cathodic Protection Inline Inspection Program Inspection and Repair Program Natural Hazards Monitoring Program Pipeline Protection Program damage prevention Monitoring 24-hour Control Centre Automated Leak Detection Systems 20 automated block valves and manual valves Internal inspections Smart Pigs Aerial and ground monitoring

6 Emergency Response Land Responsible for clean-up and remediation of incidents related to its operations along the pipeline corridor Incident Command System (ICS) outlines clear emergency response roles and responsibilities Use local emergency responders and qualified clean-up contractors We can act quickly to protect our employees, the public and the environment (24/7 response) Table Top and Deployment Training for company staff, First Responders, Aboriginal Communities Oil Spill Containment and Recovery Equipment (OSCAR) equipment located at strategic locations along pipeline Marine Product carrier responsible for release/spill on water All deep draft vessels require a contract with Transport Canada certified spill response organization Western Canada Marine Response Corporation Canada s spill response regime includes Transport Canada Canadian Coast Guard Environment Canada Provincial, municipal and First Nations

7 Spill History We are responsible for reporting spills greater than 1.5 cubic metres (approximately 9.5 barrels) to the National Energy Board A total of 78 spills reported to NEB since at KM facilities, containment and early warning systems in place Mainline pipeline since 1961 : 16 petroleum spills reported, 8 exceeded reporting threshold Thorough incident investigation in response to all spills, with recommendations and Corrective Action Plan We have loaded over 900 marine vessels without a single vessel spill 7

8 Trans Mountain Expansion Project Proposed expansion to 750,000 bpd Scheduled in-service 2017 Estimated cost $4.3B Approx. 900 km added pipe (twinned) Pump stations Nine new pump stations at existing locations Two greenfield pump station locations New tanks at existing locations Two new docks 8

9 Trans Mountain Expansion Schedule Open Season Pre Application 1.5 years Commercial Application Decision 1.5 years Facilities Application +/- Construction 2 years

10 Facilities Application - Status Designing our approach to Environmental and Socio- Economic Assessment (ESA) Environmental Field Program Ex: Pipeline route impacts to wildlife, groundwater, soils etc. Socio-Economic Assessment Ex: Employment, Human health, Traditional Land and Resource Use Marine Environmental Assessments Mammals, Fish, Vegetation and Riparian Areas, Marine Birds Routing studies Stakeholder, Public, and Aboriginal Engagement

11 Routing Studies Routing Objective: will follow existing ROW wherever practical Significant changes in land use and urban growth since original pipeline will require identification of new routing options in some locations In locations requiring identification of routing options, our principles are to: Follow established transportation and utility corridors Minimize impact on landowners Minimize impact on environment Minimize constraints on municipal infrastructure Minimize impact on public Minimize impact on Aboriginal communities

12 Chilliwack Pipeline Route

13 Engagement Critical component of our Facilities Application Early engagement now taking place Landowners Three Levels of Government and Aboriginal peoples Sustainability Community Shippers and Marine Industry Initial Community Public Information sessions in approximately 36 locations October and November 2012 Late November in Chilliwack On-going engagement in 2013 and beyond

14 Local Benefits - Chilliwack Municipal Taxes Current 2011 $ 624,000 TOTAL post expansion $ 1,431,000 Employment and Training Estimated increase of 65 full-time employees, 35 in BC Additional FT contractor employment Construction phase employment local/regional trades and other skills during construction skilled workers for long-term Community On-going financial support for community projects Socio-economic studies to define local benefits Construction spending direct and indirect Project Construction - $4.3billion expenditures $2.6 billion in British Columbia (60% of total)

15 Key Local Concerns What We Have Heard in Chilliwack: Aquifers, agricultural resources and air quality Will be included during assessment phase and included in construction planning Build up of urban residential neighbourhoods We are evaluating routing options in area Construction impacts on businesses, recreation, community and environment Will be addressed during construction planning, and in consultation with community

16 General Project Concerns We are tracking issues, discussing concerns as we build our Facilities Application Some issues under KMC control and will be addressed as part of our application Others global issues will require innovation, partnerships We have heard, and are responding to, questions re: Benefits vs. Costs Regulatory Oversight Pipeline Integrity Emergency response Spill behaviours of unconventional oil Marine environment

17

18 Trans Mountain Expansion Project Ian Anderson, President August 23, 2012 Chilliwack Chamber of Commerce

19 Topics Proposed Trans Mountain Expansion Project Project Timeline Economic and Local Benefits Safety and Emergency Response 2

20 Trans Mountain Expansion Project 3

21 Overview of Proposed Expansion Project Commitments received from customers during recent Open Season process held from October 2011 to April 2012 Binding support from a diverse group of customers: signed 20-year contracts for additional capacity 510,000 Bpd Current capacity: 300,000 Bpd Proposed expansion to 750,000 Bpd Projected capital cost: $4.1 billion Result: a dual-line operation (approx. 900 km of new pipeline): Existing line for refined products, synthetic crude oils, light crude oils Proposed new line for heavier oils Scheduled in-service

22 Pipeline Terminus Main pipeline from Edmonton ends at Burnaby Terminal Short-term storage of crude oil and refined products Distribution point for refined products to Suncor and Imperial Oil and crude oil to Chevron Refinery and Westridge Marine Terminal Westridge Marine Terminal marine traffic Approximately five tankers per month Less than 3% of marine traffic in Port Metro Vancouver 29% of the product shipped on the pipeline, is transferred at the dock 5

23 Marine Traffic - Expansion Estimated increase from 5 tankers to average of per month Increase to less than 10% of today s marine traffic Proposed expansion based on, and will use, same-sized classes of existing tanker Aframax tankers will continue to be loaded at about 90% of capacity Dredging of Second Narrows not required for project 6

24 PROJECT TIMELINE

25 Trans Mountain Expansion Schedule Open Season Pre Application 1.5 years Commercial Application Decision 1.5 years Facilities Application +/- Construction 2 years

26 Community Level - Implementation Activities to Date Introductory materials sent to all municipal governments along the pipeline and marine corridor Letters, project newsletter, field studies newsletter Initiated discussions with municipal governments along pipeline and marine corridor Asking to identify issues and what works best for their community re engagement and communication What We re Hearing Interests and issues differ greatly along the project route Interest in providing meaningful input into project details including: Routing Environmental assessment Definition of local benefits Sharing information with community 9

27 Landowner Engagement - Implementation Activities to Date Project notice sent to all landowners in June 2012 AB: Land agents have contacted 361 of 435 affected landowners BC: 320 affected landowners identified to date. Land agents have contacted 105 affected landowners What We re Hearing Only 7 refusals for survey consent due mainly to concern about number of pipelines on property Most landowners on Alberta side have positive things to say about KMC Some have questions about compensation, routing and pipeline safety 10

28 TMPL through Chilliwack

29 Routing Assessment Routing principles Twin existing route where practical Minimize impact on landowners Minimize impact on environment Minimize new linear disturbance Corridor and ROW 150m assessment corridor 18m operational ROW within this corridor 12

30 Identification of Routing Options Identification of new routing options required in some areas Goal is to find the route with least impact Comprehensive Field Studies will help identify routing options: Land Uses Environmental Concerns Engineering Factors Preliminary Chilliwack routing considerations - considering during assessment phase Aquifers and agricultural resources Build-up of urban residential neighbourhoods Construction impacts on businesses, recreation, community and environment Public engagement begins in fall 2012 to review options and identify additional concerns 13

31 ECONOMIC AND LOCAL BENEFITS

32 Projected Economic Impact - Summary Construction: socio-economic studies to determine local construction capacity including: Skilled trades e.g. welding, heavy machinery Site management security, flagging, safety Crew hosting and hospitality Community services and supplies Community Financial support for community projects Socio-economic studies to define local benefits Employment Estimated increase of 35 employees in BC Additional contractor employment Construction phase employment 15

33 Economic Benefits - Construction Project construction expenditures: Approximately $4 billion predominantly spent in BC and Alberta on goods and services Over the next five years, this expenditure is estimated to lead to: Increased GDP in Canada of approximately $3.5 billion Labour income of approximately $2.3 billion Approximately 37,000 personyears of employment 16

34 Construction Benefits Direct expenditures are estimated at: $2.6 billion in British Columbia (60% of total) $1.5 billion in Alberta (36% of total) Construction economic activity is estimated to generate increased tax revenues of: $512 million for the Government of Canada $353 million for the provincial and territorial governments (of which BC will see $184 million) 17

35 Economic Benefits TMEP Operations Annual Project operation expenditures are estimated at $77 million per year (excluding municipal taxes) 100% will be spent on Canadian goods and services This expenditure is estimated to lead, over the 30 year life of the Project, to: Increased GDP of approximately $2.2 billion Labour income of approximately $650 million Approximately 10,000 person-years of employment Direct expenditures (excluding taxes) are estimated at: $55 million per year for 30 years in British Columbia (70% of total expenditures) $22 million per year for 30 years in Alberta (30% of total expenditure) 18

36 Economic Benefit Municipal Taxes Existing taxes (2011) : $ 24 million BC $ 21 million Alberta $ 2.7 million Pipeline municipality tax increases: $ 22.4 million BC $ 19.9 million Alberta $ 2.4 million Total municipal taxes post-expansion: $ 46.4 million BC $ 41.3 million Alberta $ 5.1 million Economic Benefit Chilliwack: $ 1.4 million Annual Municipal Tax (2011) $ 613,000 TMEP Projected Increase $ 818,000 19

37 SAFETY AND EMERGENCY RESPONSE

38 Pipeline Safety - Summary Pipeline Integrity Natural Hazards Pipeline Protection Monitoring and Control System NEB Oversight Emergency response land KMC responsible for response to land-based pipeline incidents related to its facilities Safety of public, employees and environmental protection are of primary importance Oil Spill Containment and Recovery Equipment (OSCAR) equipment located along pipeline Standing arrangements with response contractors and cooperatives Coordination with First Responders along pipeline 21

39 Spill History 78 spills reported to NEB since 1961 Five in Fraser Valley region None in Chilliwack Mainline pipeline 16 petroleum spills reported, 8 exceed 9.4 bbls reporting threshold Thorough incident investigation in response to all spills, with recommendations and Corrective Action Plan 22

40 Emergency Response Marine Product carrier responsible for release/spill on water All deep draft vessels require a contract with Transport Canada certified spill response organization Western Canada Marine Response Corporation (WCMRC) Canada s spill response regime Transport Canada Canadian Coast Guard Environment Canada Provincial, municipal and First Nations roles Federal announcement expected in fall 2012 regarding funding for enhanced marine spill response 23

41 Marine - Tanker Safety High standards tankers are subject to the most stringent regulatory requirements Pilotage two qualified Canadian pilots on board Tethered escort tugs are capable of controlling the ship in the event of systems failure Double hull construction KMC inspection before allowing Westridge berth 24

42 Questions Ian Anderson

43 CHILLIWACK Trans Mountain Information Pipeline Length 2011 Municipal Taxes Annual Municipal Taxes after Proposed Expansion 25.5 km $613,000 $1,431, '0"W 49 12'0"N 122 4'0"W 122 0'0"W '0"W '0"W '0"W '0"W SCOWLITZ 1 Scowlitz Þ 49 14'0"N K KE EN N TT HOLACHTEN 8 FRASE ER R VALLEY Y R RD D TSEATAH 2 Cheam POPKUM 1 Popkum SKUMALASPH 16 LAKAHAHMEN 11 Leg'a: mel First Nation Fairfield SKWALI 3 Skwah SKWEAHM 10 Leg'a: mel First Nation 49 10'0"N SCHELOWAT 1 Skwah SKWAHLA 2 Skwah SKWAH 4 Skwah Gibson Rd KWAWKWAWAPILT 6 Kwaw-kwaw-Apilt YAALSTRICK1 Leq'a: mel First Nation Chilliwack Central Rd SQUIAALA 8 Squiala First Nation SQUIAALA 7 Squiala First Nation ) 49 8'0"N South Sumas Boundary Rd A AB B B O TT S S FF O R D D Bailey Rd WAHLEACH STATION u McGuirre Rd 49 8'0"N CHILLIWACK Vedder Crossing Keith Wilson Rd 49 6'0"N u Prest Rd Greendale Prairie Central Rd YAKWEAKWIOOSE 12 Yakweakwioose Banford Rd Lickman Rd AYLECHOOTLOOK 5 Leq'a: mel First Nation SKOWKALE 10 Skowkale SKOWKALE 11 Skowkale LACKAWAY 2 Leq'a: mel First Nation Vedder Rd SUMAS CEMETERY 12 Leq'a: mel First Nation 49 12'0"N $ '0"N GRASS 15 AITCHELITCH 9 Aitchelitz Annis Rd LAKWAY CEMETERY 3 Leq'a: mel First Nation CHEAM 1 Cheam Rosedale Upper Prairie Rd SKWAY 5 Shxwha:y Village PAPEKWATCHIN 4 Leq'a: mel First Nation C H I L LL II W WA ACK K TZEACHTEN 13 Tzeachten Start KP: km End KP: km Length: km Trans Mountain Pipeline Hope Municipal District SOOWAHLIE 14 Soowahlie 49 6'0"N Trans Mountain Pipeline Chilliwack Municipal District 49 4'0"N Legend Cultus Lake Trans Mountain Pipeline FF R RA ASER R V VA A LL LL E Y R D $ '0"N Pipeline Facilities First Nations u 49 2'0"N '0"W Km Golf Courses within 3 km of Pipeline Date: July 23, '0"W 122 0'0"W '0"W '0"W '0"W Chilliwack.mxd Hope.mxd '0"W CANADA

44 Technical Working Group Meetings

45 Technical Working Group Meeting with City of Chilliwack Wednesday, February 15, :00-11:00am Municipal Hall, 8550 Young Road, Chilliwack Agenda Time Topics Lead 10:00am Review Letter from City (dated January 23, 2017) Kristjana Hawthorne Review measures proposed by Trans Mountain to protect municipal water sources Steve Foley Action: Identify any outstanding concerns identified in the letter and timeline for resolution 10:30am 10:40am Update on Construction Methodology through Sardis community Recap previous discussion and provide update on construction methodology Provide geotech information gathered Action: Confirm any outstanding concerns identified by City and identify a timeline for resolution Brown Creek and Vedder River Construction Methodology Provide update on construction methodology Action: Obtain feedback from City and address any concerns raised Greg Toth Peter Poos Greg Toth 10:50m Highway 1 Routing Action: Provide history of routing and justification for why Highway 1 Routing is not feasible Greg Toth 10:55am Closing and Next Steps Action: Confirm any outstanding information required in advance of staff report to Council on February 21, 2017 Action: Determine date for next TWG meeting Kristjana Hawthorne

46 Technical Working Group Meeting with City of Chilliwack Wednesday, December 14, :00-2:15pm Municipal Hall, 8550 Young Road, Chilliwack Agenda Time Topics Lead 1:00pm Welcome and Introductions Kristjana Hawthorne 1:10pm 1:15pm 1:30pm 1. Technical Working Group Meetings 2. Draft Terms of Reference 3. Confirm Draft List of Outstanding Concerns: Municipal Costs Community Liaison at City Hall Construction Timing for Vedder River Crossing Commitments Tracking Table Engineering Update BC Hydro Routing Input to Environment Plans: Watercourse Crossings Protection of Municipal Water Sources and Groundwater Management Plan Kristjana Hawthorne Peter Poos Calum Bonnington David van Everdingen 2:05pm Project Team remarks David Safari 2:10pm Closing; including next steps and timing Kristjana Hawthorne

47 City of Chilliwack Routing Update December 14, 2016

48 ENGINEERING 2

49 OVERVIEW ROUTE ALTERNATIVES 3

50 P1 Alternate 4

51 P1 Alternate 5

52 P2 Alternate 6

53 P2 Alternate 7

54 Stakeholder Engagement BC Hydro Engagement with BC Hydro began mid-2014 BC Hydro initiated Field Resistivity testing to support modeling between their two 500kV circuits First draft report issued May 27, 2015 (4 months delay) Report indicated the preference for P2 Alternate Routing between the 500kV and 230kV is unacceptable BC Hydro modelled the routing south of their 230kV conductors July ; revision to report demonstrated the route could occur with adequate mitigation BC Hydro modelled routing closer their infrastructure with unlimited mitigation September ; BC Hydro responds with closest possible distance (due to safety concerns) is 14.5m from the 3 rd conductor 8

55 Stakeholder Engagement Continued Ongoing engagement with BC Hydro focused on reducing the minimum separation distance between the centerline and the 3 rd conductor to 8m P1 Alternate November 10, 2016: BC Hydro letter stipulated a minimum offset requirement of 12m This would result in the pipeline being outside the approved corridor and into neighboring streets and properties Go-forward plan is P2 Alternate 9

56 Construction General P1 Alternate (8.0m offset from BC Hydro 230kV conductor) and the P2 Alternate (utilizes existing Trans Mountain easement) are both feasible using open cut methodologies with restricted work space Landowner concerns with proximity to homes would possibly drive to trenchless solution (HDD, Direct Pipe) Both alternatives involve using fencing placed within 3m of homes Trenchless P2 Alternate currently has two Horizontal Directional Drills (HDDs) being explored. Further geotechnical investigation required to determine feasibility HDD for the P1 Alternate would also require HDD investigation and feasibility assessment Ongoing engagement required 10

57 LANDS 11

58 Landowner Engagement Update P1 Alternate: Landowners received NEB Notice to Participate (Oct-Nov 2012) Survey consent requested Requests for survey were based upon TMEP inside the BC Hydro right-of-way Expect opposition to increase with new alignment closer to homes P2 Alternate: Landowners received NEB Notice to Participate (Oct-Dec 2012) Survey consent requested Ongoing engagement required 12