Energy East Pipeline Ltd. Consolidated Application Volume 7: Construction and Operations. Section 5 Marine Operations 5.0 MARINE OPERATIONS

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1 CA PDF Page 1 of 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 website 1. 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 May 2016 Page 5-1

2 CA PDF Page 2 of 30 oil spill preparedness 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 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 3 Extract from Transport Canada website (see Footnote 1). Extracted from the Canada Shipping Act, Page 5-2 May 2016

3 CA PDF Page 3 of 30 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 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 Pilotage Act The Canadian government (Transport Canada) enacted the Pilotage Act in 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 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 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

4 CA PDF Page 4 of 30 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 Figure 5-1: Limits of the Saint John Port Authority (CA Rev. 0) The SJPA publishes detailed vessel practices and procedures that include: 4 pilot boarding stations heavy weather provisions tugs navigation restrictions Figure 5-1 was extracted from Saint John Port Authority 2011 Land Use Plan. Port Saint John. Page 5-4 May 2016

5 CA PDF Page 5 of 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 Oil-Handling Facility Requirements The Canaport Energy East marine terminal will be an OHF, as defined by Section 2 of the Canada Shipping Act, 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/ Oil-Handling Facilities Standards, 1995 (TP12402) Environmental Response Arrangements Regulations, SOR/ Vessel Pollution and Dangerous Chemicals Regulations SOR/ 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 Terminal Security The Marine Transportation Security Regulations (MTSR) enacted pursuant to the Marine Transportation Security Act, provide a framework to detect security threats and take measures to prevent security incidents that could affect marine vessels, their facilities and associated infrastructure. The regulations apply to Canadian registered vessels within certain limits, foreign flagged vessels and the marine facilities that receive these vessels. Guidance on marine facility personnel, security planning, access controls and monitoring is provided in the MTSR, along with details of the required security assessment and content of the Marine Facility Security Plan (MFSP). May 2016 Page 5-5

6 CA PDF Page 6 of 30 Figure 5-2: Marine Communications and Traffic Services Limits Fundy Traffic (CA Rev. 0) Page 5-6 May 2016

7 CA PDF Page 7 of 30 Transport Canada, under authorization of the Minister of Transport, will conduct a marine facility security assessment before commissioning the terminal. The following elements will be considered: physical security (access controls, fencing, gates) structural integrity (appropriateness of construction for the environment) personnel protection systems (including fire protection) operational procedures (that might affect security) radio and communications systems relevant transportation support infrastructure As an existing security plan is in place for the existing Canaport facilities near the Canaport Energy East marine terminal, the existing security plan will be amended to include coverage of the new marine terminal Transport Canada Standards Transport Canada publishes a number of guidelines, such as: TP 743E: Technical Review Process of Marine Terminal Systems and Transshipment Sites Review Process TP 13617E: A Guide to Canada s Ballast Water Control and Management Regulations TP 14471: Environmental Response Systems: Managing Canada s Marine Oil Spill Preparedness and Response Regime These guidelines were taken into account in the development of the marine terminal design and their proposed operations Consultation on Increased Marine Traffic Energy East has engaged and will continue to engage with users of the waterways, including Aboriginal communities, regarding the increased marine traffic within the Bay of Fundy. Summaries of community engagement that include references to marine traffic associated with the Project can be found in Appendix 9-9A: Provincial Summary New Brunswick, Appendix 9-9B: Issues and Concerns Table New Brunswick, and Appendix 9-10A: Provincial Summary Nova Scotia. 5.2 INDUSTRY GUIDELINES The IMO is responsible for developing various international conventions related to marine transport. The following section discusses the role of the IMO and the international conventions affecting shipping and marine terminals, including significant industry guidelines adopted in the specification, design and operation of a marine oil terminal. May 2016 Page 5-7

8 CA PDF Page 8 of International Marine Organization The IMO is the United Nations specialized agency responsible for the safety and security of shipping and prevention of marine pollution by ships. The international conventions and standards developed by the IMO, in conjunction with its members, aim to promote cooperation in reducing pollution and the risk of major incidents worldwide. Canada is a signatory to the IMO and as such, has agreed to comply with the requirements of particular conventions by integrating them in its domestic legislation (Canada Shipping Act, 2001). Among the international conventions, three are particularly important for marine transport: MARPOL designed to minimize pollution of the marine environment by ships from both operational and accidental causes SOLAS provides requirements on minimum safety standards for equipment and operation of ships (e.g., fire detection and extinguishment, life-saving appliances, radio communications and personnel staffing) International Convention on Civil Liability for Oil Pollution Damage provides a framework to ensure that adequate compensation is available when oil pollution damage is caused by maritime incidents involving oil tankers Oil Companies International Marine Forum The Oil Companies International Marine Forum (OCIMF) is a voluntary association of oil companies with an interest in the shipment and terminalling of oil and gas products. Formed in 1970 and granted consultation status by the IMO in 1971, OCIMF has authored or coauthored a number of guidelines concerned with safety, including: International Safety Guide for Oil Tankers and Terminals (ISGOTT) in conjunction with the International Charter of Shipping and International Association of Ports and Harbours Design and Construction Specification for Marine Loading Arms, Third Edition Mooring Equipment Guidelines, Third Edition Ship Inspection Report Program (SIRE) 5.3 TERMPOL In the 1970s, a Transport Canada committee reviewing marine pollution issues recognized the need for a standardized means of measuring the navigational risks associated with the location and operation of marine terminals for large oil tankers. The objectives set by that committee led to the publication of the first edition of the Page 5-8 May 2016

9 CA PDF Page 9 of 30 TERMPOL Code in Energy East relied on TERMPOL 2001 to complete the required studies and where possible ensured it was consistent with TERMPOL The purpose of TERMPOL is to objectively appraise operational vessel safety, route safety and cargo transfer operations associated with a proposed oil terminal project where there might be a risk of an oil spill, and where possible, allow the implementation of either design or operational safety measures to remove or reduce site-specific risks. TERMPOL involves numerous studies that should be undertaken to provide a comprehensive examination of marine navigation safety concerns and operational procedures. Therefore, the TERMPOL review process complements the NEB process by providing a forum for a detailed expert review of navigational issues and vessel operations. Whereas potential for adverse effects on the environment in the unlikely event of an accident are assessed as part of the consolidated ESA that has been developed for this. Energy East has initiated a TERMPOL review processes for the Canaport Energy East marine terminal. Energy East will submit the TERMPOL Review Committee s reports to the Board, abide by their recommendations, and incorporate them into the operational procedures and manuals that will be developed before marine terminal operations begin Scope of Studies The TERMPOL review process as defined by Transport Canada consists of five stages (see Table 5-1). The first two stages involve constituting the TERMPOL Review Committee, defining the scope of the studies required, and defining how and when the proponent and the TERMPOL Review Committee should interact. Table 5-1: Schedule of TERMPOL Review Activities (CA Rev. 0) Stage No. Desccription Activity 1 TERMPOL (Technical Review Process of Marine Terminal Systems and Transshipment Sites) Review Committee constituted 2 TERMPOL Review Committee meets with proponent/ representative Initial review of proposed project outline Initial discussion of surveys and studies required Identify departmental resources available Agree on scope and depth of surveys Inform proponent/proponent s representatives of departmental information resources available Agree on format of proponent s TERMPOL Studies Establish administrative lines of communication Agree on schedule of progress meetings (if necessary) May 2016 Page 5-9

10 CA PDF Page 10 of 30 Table 5-1: Schedule of TERMOL Activities (CA Rev. 0) (cont d) Stage No. Description Activity 3 TERMPOL Review Committee chairperson receives proponent s TERMPOL studies 4 TERMPOL Review Committee begins review process 5 TERMPOL Review Committee submits report to Transport Canada Marine Safety (TCMS) Proponent s TERMPOL studies distributed to TERMPOL Review Committee TERMPOL Review Committee identifies need for additional information or amplification of information provided (if needed) TERMPOL Review Committee meets with proponent/representative (if necessary) TERMPOL Review Committee may seek expert advice on matters raised in proponent s TERMPOL studies TCMS approves TERMPOL Review Committee report with authorities from other departments Stage 3 and subsequent stages represent the TERMPOL Review Committee s review of the proponent s submission. Stage 1 and Stage 2 have been completed for the marine terminal. As a result of design modifications and feedback from the TERMPOL Review Committee s review of draft material, Stage 3 continues to be progressed and is scheduled for completion by the end of the second quarter of TERMPOL requires consideration of a range of subjects broadly categorized into technical/engineering of shipping and navigation, including risk mitigation. The Canaport Energy East marine terminal TERMPOL submission will document only the technical/engineering aspects, including risk, of the marine terminal. The detailed socio-environmental consequences of the shipping and navigation aspects of the Project are being considered in this through the ESA. The proposed format for TERMPOL has been discussed with and confirmed by the TERMPOL Review Committee the marine terminal. For the TERMPOL studies to be performed for the Canaport Energy East marine terminal, see Table 5-2. Study No. Table 5-2: Energy East TERMPOL Studies (CA Rev. 0) Canaport Energy East Marine Terminal Description 3.1 Introduction Y 3.2 Origin, Destination and Marine Traffic Volume Survey Y 3.3 Fishing Resources Survey 1 Y 3.4 Offshore Exercise / Exploration/ Exploitation Surveys 2 Y Page 5-10 May 2016

11 CA PDF Page 11 of 30 Study No. Table 5-2: Energy East Termpol Studies (CA Rev. 0) (cont d) Canaport Energy East Marine Terminal Description 3.5 Route Analysis, Approach Characteristics and Navigability Survey Y 3.6 Special Underkeel Clearance Survey Y 3.7 Transit Time and Delay Survey Y 3.8 Casualty Data Survey Y 3.9 Ship Specifications Y 3.10 Site Plans and Technical Data Y 3.11 Cargo Transfer and Transhipment Systems Y 3.12 Channel Manoeuvring and Anchorage Elements Y 3.13 Berth Procedures and Provisions Y 3.14 Single Point Mooring Provisions and Procedures N/A 3.15 General Risk Analysis 1 Y 3.16 Port Information Book 3 Y 3.17 Terminal Operations Manual 3 Y 3.18 Contingency Plans 3 Y 3.19 OHF Requirements Y 3.20 Hazardous and Noxious Liquid Substances N/A Note: 1. Studies are found in the ESA. 2. Information from a previous study can be used. 3. Outline only to be provided. The 18 studies to be completed (excluding Study No and No in Table 5-2) will be grouped into five volumes: Volume 1: Introduction and Engineering Volume 2: Navigation, Berthing and Mooring Assessments Volume 3: Marine Traffic and Fishing Resources Impacts Volume 4: Risk and Casualty Analyses Volume 5: Operations Manuals To involve the TERMPOL Review Committee in the development of the studies required for the TERMPOL process and to gain the benefit of the Committee s experience and advice, it was agreed at the beginning of the TERMPOL process to submit the above-noted volumes in draft form throughout the development of the studies. May 2016 Page 5-11

12 CA PDF Page 12 of 30 Energy East intends to file revised volumes to the TERMPOL Review Committee by the end of the second quarter of 2016 that takes into account initial feedback from the TERMPOL Review Committee and design elements that have changed since the initial filing Study Execution and Completion Much of the information in the TERMPOL submissions have already been evaluated and determined, and are reflected in this and the associated consolidated ESA. For the relationships and overlaps between the processes, see Figure 5-3. For a summary of the major elements of the TERMPOL studies for the marine terminal, see Appendix 7-6, Overview of TERMPOL Submissions. The design of the marine terminal and operational systems/procedures will incorporate all applicable international, Transport Canada and TERMPOL Review Committee recommendations, and OCIMF conventions, standards, guidelines and requirements. Figure 5-3: TERMPOL Front-End Engineering and Design Overlap (CA Rev. 0) Page 5-12 May 2016

13 CA PDF Page 13 of MARINE SHIPPING OPERATIONS The following section describes the routine marine shipping operations and navigation procedures that will occur at the Canaport Energy East marine terminal. Based on preliminary estimates, the anticipated number of tanker calls at the Canaport Energy East marine terminal, is 281 per year. The anticipated fleet composition is expected to be comprised of 70 Aframax, 175 Suezmax class tankers, and 36 VLCC class tankers, leading to one tanker arriving every 1.3 days. The Canaport Energy East marine terminal is neither unique nor unusual. Other marine terminals handling crude oil, LNG, and petroleum products currently operate within the Bay of Fundy. VLCC class tankers have been operating in this region since the 1970s. As a result of this ongoing marine traffic, shipping operations for these types of vessels and marine terminals are well understood by the ship masters, local pilots, tug operators and other support organizations who will contribute to the ongoing safe navigation and operation of crude oil handling marine terminals and vessels. This section will first describe the types of tankers that will visit the marine terminal, then will describe the navigation route to the marine terminal from the point of pilotage, and will then describe arrival and departure activities, including heavy weather operations Tankers There will not be a dedicated tanker fleet for the marine terminal. Individual ship owners are responsible at all times for the maintenance and performance of their vessels. Energy East will support Transport Canada in ensuring that all tankers visiting the Canaport Energy East marine terminal will meet world-class safety standards and operate in an environmentally responsible manner. The particular dimensional characteristics of tankers can vary within a particular class. However, representative metrics have been defined based on class requirements and the likely fleet that would call on the marine terminal. The Canaport Energy East marine terminal has been designed to safely handle Aframax class up to Suezmax class vessels at Berth 2 and from Aframax class up to a maximum VLCC class design vessels at Berth 1. For typical tanker specifications, see Table 5-3. May 2016 Page 5-13

14 CA PDF Page 14 of 30 Table 5-3: Typical Tanker Specifications (CA Rev. 0) Vessel Class Parameter Aframax 1 Suezmax 1 VLCC 2 Deadweight (tonnes) 100, , ,000 Length Overall (m) Length Between Perpendiculars (m) Width/Beam (m) Moulded Depth (m) Loaded Draft (m) Ballast Draft (m) Hull Type Double Double Double Capacity (m 3 ) (bbl) (113,300)(700,000) 173,700 (1.1 Million) 348,000 (2.2 Million) Note: 1. Values are representative of an average size of this vessel class. 2. Values are representative of the maximum size of this vessel class Tanker Safety and Environmental Management The IMO-developed ISM code, SOLAS and MARPOL, described in.2.1, International Marine Organization, stipulate various requirements for tankers that have a particular impact on safety and the environment. All tankers calling at the marine terminal will be required to have the following systems: Inert Gas Systems To protect the cargo tanks from explosion by reducing the oxygen content to below the range that allows combustion. Double Hulls Under MARPOL, since 2010, all tankers in international trade must have double hulls. The cargo is carried inside the inner hull and the space between the inner and outer hulls is used for segregated ballast. The cargo space is protected on both the sides and the bottom by the double hulls. If an accident such as a collision or grounding should occur, the outer hull and space between the hulls absorbs the energy of the collision and assists in preventing a release of product from the inner hull. In addition, tankers must have at least one longitudinal bulkhead. Segregated Ballast All empty tankers must load ballast to maintain safety and stability while at sea. The ballast is typically loaded into the segregated space between the inner and outer hulls of a double-hulled tanker, and is thus kept separate from any liquids in the cargo tanks. Redundancy Tankers are required to have redundancy (meaning an additional backup power source) in essential components of the steering system to prevent accidents caused by primary steering system failure. This requirement also applies Page 5-14 May 2016

15 CA PDF Page 15 of 30 to crucial navigation equipment. Tankers will also have their own water-making, sewage treatment and trash compacting systems onboard. Electronics Shipboard navigational equipment includes electronic technology such as radio detection and ranging (RADAR), global positioning systems (GPS) and other navigation systems for safe passage across the ocean and into ports worldwide. Electronic chart display and information systems (ECDIS) allow navigational overview. Automatic identification systems (AIS) and computer collision avoidance systems (such as automatic radar plotting aids [ARPAs]) allow navigation officers to identify approaching vessels accurately, and quickly determine the heading and speed necessary for collision avoidance. AIS Automatic identification systems electronically identify a ship using data transmitted to shore stations by VHF radio. IMO made adoption of the AIS for ships over 300 gross tonnes mandatory by the year AIS is required to automatically exchange information (including the ship s identity, type, position, course, speed, navigational status and other safety-related information) with other ships, shore stations and aircraft. Firefighting Systems All tankers must have firefighting systems (i.e., water, foam and other chemical systems) that are approved by classification societies and regulatory authorities. Tankers must have a fire plan, and all personnel must be trained for firefighting. Emergency Equipment All tankers will be equipped with life-saving equipment such as, lifeboats, life rafts and personal life-saving vests and devices. Every tanker is required to carry an emergency towage system that can be deployed in the event the tanker has to be towed. Emergency/Escort Tug Towing IMO regulations (SOLAS II-1/3-4 on emergency towing arrangements on tankers) stipulated in 1996 that all new tankers of 20,000 deadweight (tonnage) and greater had to be fitted with an emergency towing arrangement (existing tankers had to be fitted with such an arrangement by January 1999). Exchange and discharge of ballast water at the marine terminal and in Canadian waters is regulated through the Ballast Water Control and Management Regulations (pursuant to Canada Shipping Act, 2001). These requirements will be enforced through the tanker vetting process that will be implemented at the marine terminal Tanker Vetting A Tanker Acceptance Program (TAP) will be implemented by Energy East at the marine terminal to ensure tankers scheduled to berth meet the industry standards for safety and environmental protection, conform to the design limits of the terminal and meet the requirements identified in.4.1.1, Tanker Safety and Environmental May 2016 Page 5-15

16 CA PDF Page 16 of 30 Management. This tanker evaluation and inspection program is referred to as vetting. The purpose of a vetting program is to increase marine safety and to reduce the possibility of pollution incidents. OCIMF publishes SIRE, which provides guidance on the content and application of the tanker inspection program. Under SIRE there is a cascading division of responsibility for ensuring compliance with the applicable regulations. It is the responsibility of the shipper to vet the ship-owner before nomination. The nominated tankers will subsequently be vetted by Energy East to ensure compatibility with the terminal layout, facilities and equipment. A detailed TAP will be developed before the marine terminal is commissioned. The objective of TAP is to ensure that tanker operations do not endanger personnel, the public or the environment. To meet this objective, the TAP will require that tankers: are compatible with terminal infrastructure (i.e., size, mooring lines, and draft) are configured appropriately for safe cargo transfers have no outstanding inspection deficiencies that would affect safety meet ISM requirements have an agreement with a Certified Response Organization have met the standards of the International Convention on Standards of Training, Certification and Watch-keeping for Seafarers (STCW), 1978 These requirements are referred to as pre-screening. Every time a tanker is scheduled at the marine terminal, a physical tanker inspection will also be done as part of the TAP. In addition, a pre-arrival checklist will be completed jointly by the ship s master and the terminal mooring or loading master. Non-compliance with the pre-arrival checklist will result in delay or refusal of cargo transfer. The loading master will board the tanker and conduct a physical inspection to check that the ISGOTT requirements are being met. Tankers will not be accepted at the marine terminal without TAP clearance from Energy East Vessel Pollution Liability and Compensation As noted in.1, Regulatory Framework for Shipping and.2, Industry Guidelines, a comprehensive regulatory framework regulates marine activities within Canadian waters. Marine activities associated with vessel traffic destined to or from the Project s marine terminal is the responsibility of the tanker owner and operator, including responsibility for accidents or malfunctions. In the event of an accident or malfunction involving a vessel that leads to persistent oil being released into the marine environment, financial liability for marine spill response activities, cleanup and remediation costs, and third-party compensation for Page 5-16 May 2016

17 CA PDF Page 17 of 30 sustained and reasonable damages are borne by the tanker owners as per the Marine Liability Act (MLA). The MLA establishes the framework for handling marine liability and compensation in Canada, and also reflects Canada s implementation of international conventions administered by the International Oil Pollution Compensation (IOPC) Funds and the Civil Liability Convention. The overriding principle of these conventions is the polluter pays principle, which ensures that oil tanker owners remain liable for reasonable costs associated with mitigating oil pollution and compensation for substantiated and proven third-party claims for an incident that involves the release of persistent oil to the environment. A number of funds exist to provide compensation to parties for the response and cleanup activities and third-party compensation for damages incurred as a result of an incident. The first level of funding for marine spill response, cleanup, and third-party compensation is through the vessel owner s protection and indemnity insurance. This insurance is typically provided through the International Group of P&I Clubs, which are groups of vessel owners and operators that make insurance available to other ship owners and charterers for coverage against third-party liabilities encountered in their commercial operations. Liability coverage through these clubs is typically limited and based on the size of the vessel. The current maximum available coverage is approximately $140 million. 5 The second level of funding is available through the International Oil Pollution Compensation Fund (IOPC) ($173 million) and the Supplementary Fund Protocol ($830 million) should the vessel owner s insurance be inadequate to fund a response effort. The IOPC Fund is financed by levies paid by entities that receive certain types of oil in the ports of member states and is available to all vessel incidents involving persistent oil. The third level of funding that is available, should the first two levels of funding be inadequate, is the Ship-source Oil Pollution Fund (SOPF) that provides funding for spills within Canadian water for vessels 6. Approximately $160 million is available to fund response efforts. Based on the above funding sources, approximately $1.3 billion is available to finance response and cleanup activities, along with third-party compensation for damages in the event of the release of oil into the marine environment from a vessel. 5 6 Transport Canada Compensating for Response Costs. Website: Accessed: May 2014 Transport Canada Ship-source Compensation Funds. Website: Accessed: May 2014 May 2016 Page 5-17

18 CA PDF Page 18 of Canaport Energy East Marine Terminal Route Description The following sections describe the main components of the navigation approach and procedures for the Canaport Energy East marine terminal. For a navigation component summary, see Table 5-4. Table 5-4: Canaport Energy East Marine Terminal Navigation Components (CA Rev. 0) Parameter Description Route See Figure 5-2 and Appendix 7-7. MCTS Station Bay of Fundy VTS Pilot Station Atlantic Pilotage Authority (APA) at Saint John Compulsory pilotage is required for: Canadian registered ships over 1,500 tons any ship that is not registered in Canada, including floating cranes any combination of tug and tow if more than one unit is being towed Pilot boarding N, W N, W Anchorages Areas A, B and D located inside the SJPA limits, see Figure 5-4. Navigation hazards/ Existing marine operations at Canaport SBM and Canaport LNG depth limitations Winter navigation Snow, rain and strong winds, low visibility Navigation Route The Canaport Energy East marine terminal will be located on the western shore of the Bay of Fundy, to the southeast of Saint John Port (SJP) and south of Mispec Point. The marine terminal location will be to the west of the existing Irving Canaport SBM and Canaport LNG facility. For the navigation route for tankers calling at the Canaport Energy East marine terminal, see Figure 5-2 and Appendix 7-7. For the detailed route from the pilot boarding station to the terminal, including the anchorage areas and port authority jurisdiction, see Figure 5-4. Inbound vessels use the southeast channel and outbound use the northwest channel. Water depth in the Bay of Fundy through the traffic-separation scheme is consistently deep until the coastal area east of Saint John. The 30 m contour is approximately 1 km offshore in the vicinity of the Canaport Energy East marine terminal. Existing depths at the berths are between 20 m and 30 m. Depending on final design, dredging will be necessary in the berth pocket to provide sufficient underkeel clearance for VLCC class ships. Page 5-18 May 2016

19 CA PDF Page 19 of 30 Figure 5-4: Detailed Navigation Route from Pilot Station to Canaport Energy East Marine Terminal (CA Rev. 0) Navigation Hazards Due to the relatively deep draft and wide navigation corridor of the Bay of Fundy, combined with the traffic-separation scheme and pilot services for large vessels, bathymetric navigation hazards are minimal. Significant tidal range and generated currents in the Bay of Fundy can be considered a navigation hazard as water depths can vary by up to nine metres over one tide. May 2016 Page 5-19

20 CA PDF Page 20 of 30 There is also a seasonal hazard from freshet conditions (April to June) where snow melt causes high fluvial flows in the Saint John River. However the impact of this occurrence on safe navigation is largely limited to the Port of Saint John itself. Precautionary measures will be taken to ensure the safety of existing marine traffic to the existing Canaport LNG terminal and Irving Oil Single Buoy Mooring (SBM). Both are located at Mispec Point and an exclusion zone is defined for both facilities (see.4.2.5, Existing ). Tankers transiting the waters in this area must be aware of these existing operations to avoid interference or risk of collision Aids to Navigation Vessels visiting the Canaport Energy East marine terminal will be required to follow the established network of aids to navigation in the Bay of Fundy, as marked on navigation/nautical charts, Lists of Lights, Buoys and Fog Signals Atlantic Coast 2009, 7 and Radio Aids to Marine Navigation (RAMN) Handbook Floating devices can change depending on the season (summer to winter), so reference to the latest Notice to Mariners from the Canadian Coast Guard will be made throughout the development of this Project. Improvements and additions to the existing aids to navigation for the Canaport Energy East marine terminal will follow the conclusions of the real-time navigation simulations and advice from the APA and MCTS. An example of potential additions that Energy East may undertake includes installation of the appropriate navigation lighting on the marine terminal Winter Navigation Winter is typically defined as the months December to March in the Saint John area. In addition to normal winter weather of snow, rain and strong winds, the Bay of Fundy experiences Sea Smoke, a cold vapour that can extend up from the sea surface to about 30 m obscuring visibility at sea level. During these periods of intense cold weather, tankers must be prepared to maintain their equipment to protect against freezeup (mooring winches, cargo hose lifting gear, gangway hoists, water lines and firefighting systems). The waters in the Bay of Fundy do not freeze and there are no sea ice issues Existing The Port of Saint John is eastern Canada s largest port, handling over 31 million tonnes of cargo annually. In 2012, 26.5 million tonnes of liquid bulk (petroleum, LNG, and molasses) was transited through the port. 8 Tankers similar to those required 7 8 Published by Canadian Coast Guard NOTMAR (Notice to Mariners) The Gulf and River St. Lawrence to Montreal. Information from Port Saint John website. Page 5-20 May 2016

21 CA PDF Page 21 of 30 for the Canaport Energy East marine terminal are currently navigating the approaches to Saint John. The total number of vessel movements (reporting marine traffic only) in 2013 was approximately 2,600 at the entrance/exit to the outer port limits (as reported by AIS, APA, and MCTS). Of those movements, over 1,000 were tankers up to and including VLCC class destined for Canaport and Saint John Port. Tug boats are not included in the vessel movements reported above. Looking at piloted vessel movements only, tankers made up over 60% of all piloted transits in the Saint John compulsory pilotage area; containers destined for the inner Port are the next most frequent vessel type; with cruise ships totalling 8% of the traffic numbers. It should however be noted that the Saint John-Digby ferry is not reflected in the APA statistics as the vessel master is a licensed pilot. This ferry transited the Saint John Harbour more than 950 times in 2013, which equates to 36% of the total traffic in the area. Canaport LNG is a liquefied natural gas receiving and regasification terminal located just east of Mispec Point, southeast of Saint John and has been in operation since It is identified in the latest APA Regulations. Canaport LNG is designed to receive up to a Qmax LNG carrier, the largest class LNG carrier in the world. The typical size of a vessel of this type is similar to a VLCC class tanker in length (around 340 m), although a Qmax usually draws 12 m draft as compared to 23 m for a VLCC oil tanker. At completion of the Canaport LNG terminal, between 80 and 120 carriers were planned; in 2012 there were 15 ships and in the first six months of 2013, seven ships. The Canaport LNG marine terminal has a permanent navigation exclusion zone in effect, extending 90 m seaward from the centre point of the berth, when there are no LNG carriers alongside. When there is a vessel alongside the terminal the exclusion zone extends 620 m from the centre of the terminal and remains in effect until the vessel has departed. Irving Oil has a SBM located approximately 1.3 km immediately south of Mispec Point. A SBM is a loading buoy anchored offshore. It serves as a mooring device and as a subsea connection for tankers to load or offload liquid products. The Irving Oil SBM is used to import crude oil feedstock to support the refinery operations of Irving Oil. Information from the APA indicate 23 VLCC class tankers called at the SBM in 2012; nine in the first six months of The SBM has an exclusion zone in effect whenever a crude oil carrier or similar vessel is involved in operations at the buoy, defined by a swing circle with a radius of 925 m centred on the buoy, taking into account the swing of the maximum tanker length including a tug and towline. All tankers navigating within the exclusion zone must remain clear of the operation and no fishing gear, nets or buoys are to be in the exclusion zone during operations. May 2016 Page 5-21

22 CA PDF Page 22 of 30 Based on current estimates of the anticipated tanker traffic to the Canaport Energy East marine terminal and future tanker traffic within the Saint John port limits, the marine activities associated with the Canaport Energy East marine terminal will represent approximately 30% of the tanker traffic Metrological/Oceanographic Conditions The following section provides data on the existing environmental conditions in the Bay of Fundy and Saint John area, specifically in relation to navigation of oil tankers and operation of the Canaport Energy East marine terminal. For further details on the metrological and oceanographic conditions, see Volume 17 of the ESA. Tides within the Bay of Fundy are some of the largest in the world, occurring on a semi-diurnal basis (i.e., two high tides and two low tides per day). The normal tide range in the vicinity of the Canaport Energy East marine terminal is 7.7 m, increasing to nearly 9 m under large tides. The probability of storm surge, which is an abnormal rise in water level caused by storm conditions, occurring at the same time as a large high tide is very low. Therefore storm surge is not considered to contribute significantly to extreme water levels. Due to the large tides, current speed and direction is of particular interest around the Canaport Energy East marine terminal site. A numerical hydrodynamic model was developed to gain an understanding on the current flow patterns in the vicinity of Saint John. Numerical modelling gives a spatial understanding of current patterns which is not possible to obtain just from the data gathering instruments previously deployed in the Bay of Fundy. The model predicted maximum current speeds in the range of 2 knots with direction being predominantly controlled by the local bathymetry and the tide. To verify the current speed and direction predicted by the numerical model further data were collected in the immediate vicinity of the Canaport Energy East marine terminal. Several current meters were deployed during 2014 and 2015, and the readings confirmed the accuracy of the numerical model and therefore the correct orientation of the Canaport Energy East marine terminal berths. Wind can have a significant impact on berthing and mooring of tankers and particularly on the loads exerted on a ship s mooring lines. Due to its sheltered location within the Bay of Fundy, winds in Saint John are predominantly out of the west. There is, however, some seasonality to the conditions. During the winter months (December to March) winds are predominantly out of the northwest blowing up to 35 knots. During the summer months (June to August), there is a shift in the direction as winds blow from the mouth of the Bay of Fundy. During this time, winds are out of the southwest blowing up to about 25 knots. The extreme (100-year) wind event was calculated to be approximately 56 knots, which is a violent storm with very high seas in terms of the Beaufort scale. Page 5-22 May 2016

23 CA PDF Page 23 of 30 Waves in Saint John predominantly come out of the southwest propagating up the Bay of Fundy toward Saint John. Waves can impede safe navigation and/or berthing, particularly in an open Bay. In an extreme (100-year) storm event, wave heights of up to 6.4 m are predicted in the vicinity of Saint John. The marine terminal will have operational limits for wind speed and wave heights, and conditions where tankers will not be permitted to approach the terminal (see.4.3.4, Terminal Operable Limits). Predictions of wave crest height are also used in the design of the marine structures to ensure the Canaport Energy East marine terminal can withstand extreme storm events. The Saint John area experiences a significant amount of fog, especially during the summer months when the difference in temperature between the sea and the air is at its greatest. On average, low visibility (less than one nautical mile) conditions occur 12.5% of the time in Saint John. Fog is more common during the night and early morning, dissipating most days by 2:00 p.m. The effect of fog on safe navigation must therefore be considered in the operations associated with the Canaport Energy East marine terminal. The Canaport Energy East marine terminal will have operational limits for visibility conditions, as detailed in.4.3.4, Terminal Operable Limits. The operational visibility limit will be refined once the marine terminal is in operation, experience is gained and navigational aids have been sufficiently tested Arrivals and Departures The following provides a high level description of assistance vessels, operational procedures, berthing and mooring in general terms. During arrival and departure maneuvers at the marine terminal, tankers will be under the control of a local pilot, with extensive experience of local conditions and tanker handling in the specific conditions. The tankers will be under tug assist. A docking assist system (DAS) will be utilized to assist in the safe berthing of vessels. At the Canaport Energy East marine terminal, the tanker will berth with tug assistance with bow facing the direction of the current (stemming the current). Departure operations will also require tug assistance. During normal berthing maneuvers, only a single tanker will be allowed to approach or depart the marine terminal at a time. However, in an emergency situation if both tankers are required to leave their respective berths, sufficient space and resources will be available for both tankers to depart safely with tug assistance. May 2016 Page 5-23

24 CA PDF Page 24 of Berthing and Mooring Tankers will approach the berth in a controlled manner under tug assist as described above with a local pilot. All personnel associated with berthing, mooring and unmooring will be trained and experienced and will have clearly defined roles and responsibilities. Each of the systems that form part of the marine terminal are designed with safety as a priority and there are numerous safety features in place to minimize risks, in addition to clearly defined safety procedures. Operational requirements, that will be confirmed though the TERMPOL review process, will be put into place that will only allow tankers to berth or transfer products within certain environmental conditions. If those parameters are exceeded, then the berth operator will shut down operations, require the tanker to leave the berth or not allow a tanker to approach the berth. For additional details on the weather monitoring system, see Volume 6, Section , Berth Monitoring Systems. Specifically, the marine terminal will be equipped with a docking assistant system DAS to assist in the berthing of the tankers. The purpose of the DAS is to measure in real time, the speed of approach, distance to structure, and angle of approach for a tanker up to 300 m from the berth. This information is provided in real-time back to the pilot on board the tanker and the berth operator, and will be displayed on a board clearly visible on the berth, to assist in the safe navigation and manoeuvring of the tanker to the berth. A messenger line will be connected to each of the tanker s mooring lines; a line-handler will then operate a capstan reeling the line into the quick release mooring hook. When the mooring line is secure, a winch on the tanker s deck takes out the slack on the line. Once the mooring line is placed on the hook, the ship s personnel are responsible for maintaining the lines while at the berth. A mooring hook load monitoring system provides a real-time display of the tension of the mooring lines while it is at berth. The system provides data on the mooring loads as soon as the lines are attached to each hook and allows the berth operator and ship s mooring crew to take appropriate measures in the event that an overload condition is detected. The system will also trigger an alarm at local facility building if the line loads exceed a threshold. The use of docking assist and mooring hook load monitoring systems greatly reduces the risk of damage to the berth and tanker and minimizes the risk of a safety incident such as vessel collision or breaking mooring lines. The tidal ranges in the Bay of Fundy are large enough that the mooring lines will have to be tended regularly during the loading operations as the tide ebbs or floods. Depending on whether a tanker arrived on an incoming or outgoing tide, the mooring lines could either become slack, as the tide rises or the maximum line load could be exceeded as the tide recedes. Both scenarios are undesirable. Page 5-24 May 2016