Pipeline Application

Transcription

1 Pipeline Application Sales Gas Pipeline From W1M to W1M Southwestern Manitoba Manitoba Innovation, Energy and Mines Petroleum Branch Date: June 5, 2013

2 Table of Contents 1. Introduction Applicant Information Technical Qualifications Financial Qualifications Pipeline Need/Intended Use General Project Description Design Specifications Safety Systems Corrosion Mitigation Construction Specifications of Vessels Air Dispersion Model Consultations with Landowners and Occupants Initial Aboriginal Consultation Assessment Environmental Environmental Assessment and Environmental Protection Plan Emergency Response Plan (ERP) Other Approvals Municipalities Department of Municipal Affairs, Culture and Housing (Heritage Branch) Department of Fisheries and Oceans (Canada) Manitoba Infrastructure and Transportation Railway Crossings Utility or Right of Way Crossings... 5 List of Appendices Appendix A Survey Plans Appendix B Drawings/Specifications Appendix C Proof of Consultation and Access Appendix D Initial Aboriginal Consultation Assessment

3 1. Introduction Penn West Petroleum Ltd. is submitting this application to the Manitoba Innovation, Energy and Mines Petroleum Branch, as required by Section 149 (2) of the Oil and Gas Act, to seek approval for the construction of the proposed Sales Gas Pipeline from the Penn West W1M Gas Plant to the new pipeline riser at W1M. 2. Applicant Information Penn West Petroleum Ltd., based in Calgary, Alberta, converted from an income trust into an exploration and production company in January, 2011 and operates under the registered trade name of Penn West Exploration. Penn West is one of the largest independent (nonintegrated) oil and gas producers in Canada with over six million acres of land base, including a significant portfolio of opportunities in light oil. 2.1 Technical Qualifications One of the key resource plays in the company s portfolio is located in the Waskada area. In addition to numerous well sites, gathering systems and facilities in the area, Penn West has a main processing facility at W1M and an existing sales pipeline in the area. Penn West has the technical expertise to construct, operate and maintain the proposed new pipeline. 2.2 Financial Qualifications Penn West is a publicly traded company, listed on both the TSX and NYSE, and has the financial capacity to fund the proposed project. 3. Pipeline Need/Intended Use The proposed 114.3mm OD pipeline is required to conserve gas at the W1M Gas Plant and transport sales gas from W1M to the new pipeline riser at W1M, where it will be tied into an existing EOG sales gas pipeline. Currently produced gas at the Gas Plant is continuously flared. Gas conservation will help reduce greenhouse gas emission and environmental impact to the surrounding area. 4. General Project Description The 1,000 meters long, 114.3mm OD, 900# ANSI steel pipeline will be constructed from the Penn West W1M Gas Plant to the new pipeline riser at W1M where it will be tied into an existing EOG sales gas pipeline. The riser will be located within the existing facility lease boundary. The riser will be constructed on a new surface lease. 1

4 A sales gas meter and a gas buy back meter will be installed at Pigging facilities will be installed at both ends for cleanout, maintenance and inspections. Emergency shutdown valves (ESDV s) and check valves will also be installed at both ends. The ESDV s will allow the pipeline to be isolated in case of an emergency. They will also prevent off-spec gas from entering the pipeline. Refer to Appendix A for survey plans of the right-of-way and riser site. 4.1 Design Specifications The pipelines will be constructed to applicable CSA Z Standard. Refer to Table 1 for pipeline specifications. Table 1- Pipeline Specifications H 2 S (mol/ kmol) OD (mm) WT (mm) Material Type Grade Joint Type External Coating MOP/ DP (kpa) Test (kpa) Design Flow Rate (10 3 m 3 /d) Steel Z Cat.II Welded YJ1 12,135 15, All piping for this project will be constructed in accordance to the Penn West ME.S.008, ASME and CSA piping specifications. The above ground piping at the Gas Plant will be Class DL, 900# ANSI, sweet service and low temp. The pig sender, pipeline risers and the riser site piping will be Class DLC, 900# ANSI (PN 150), sweet service and low temp. Refer to Appendix B for the two piping specifications. 4.2 Safety Systems The following systems are in place to maintain a high level of pipeline safety: Emergency shutdown valves will be installed at the facility and riser site. Pressure switches will be installed to serve as overpressure protection. PSV s on upstream equipment at will be set at or below the pipeline MOP. Design pressure of the pipeline exceeds normal operating pressure of 8273kPag (after installation of the sales gas compressor). Pigging facilities to allow for future inline inspections to monitor integrity 4.3 Corrosion Mitigation The pipeline will be externally coated with YJ1 (60 o C) and all girth welds will be coated using K-60 or equivalent shrink sleeves. In addition, a cathodic protection system will be installed. 2

5 Although corrosion is not a major concern because the gas is sweet and dry, Penn West will still run smart pigs annually to analyze pipeline integrity. Furthermore, a chemical program will be implemented to prevent corrosion. 4.4 Construction The total length of the pipeline will be approximately 1000m. Based on survey information, there will be nine crossings such as other pipelines, power cables, overhead lines and roads. Field verification will be required prior to construction. Cover depth will be minimum 1.5m along the right-of-way and minimum 2.0m on lease. A pipeline corridor exists along the south edge of the lease and therefore a bore will be required to cross the existing pipelines. Penn West proposes to bore a low wet area located south of the 3-30 lease to minimize disturbance from construction. With the exception of the two bores mentioned above, all remaining crossings will be open cut unless otherwise stated in the crossing agreements. Pending approval from the Petroleum Branch, construction of the new pipeline is proposed to commence in early Q3, Construction is expected to take approximately 4 weeks, depending on weather and field condition. 4.5 Specifications of Vessels Not applicable, there will not be any pressure vessel associated with this project. 4.6 Air Dispersion Model Not applicable, there will not be any continuous venting associated with this project. 5. Consultations with Landowners and Occupants As per the requirements in the Oil and Gas Act, Drilling and Production Regulations, it is required that all parties who are or may be affected by any new energy developments are made aware of any new development and be given the opportunity to voice any concerns they may have. Notification of all landowners and occupants within the following distances is completed: 1.5 km radius of the end points of the pipeline, and 0.5 km radius along the length of the proposed pipeline The following information has been provided to the Petroleum Branch under a separate cover due to privacy reasons: Names and addresses of all landowners, occupants and residents within the specified radiuses. 3

6 A summary of consultations with all landowners, occupants and residents, including any concerns raised during the consultation process. A summary of any actions taken or proposed to be taken by Penn West to address any concerns. Proof of entry and signed right-of-way agreements. 5.1 Initial Aboriginal Consultation Assessment An Initial Aboriginal Consultation Assessment was conducted. Due to the distance of the nearest Aboriginal Land to this pipeline, it was concluded that no consultation would be necessary. Appendix D contains the Initial Aboriginal Consultation Assessment. 6. Environmental 6.1 Environmental Assessment and Environmental Protection Plan The proposed pipeline is less than 10 km in length and will not be located in an area sensitive to environmental disturbance. The right-of-way is located on cultivated farmland. Therefore an Environmental Protection Plan has not been prepared for this pipeline project. 6.2 Emergency Response Plan (ERP) Penn West maintains a corporate level Emergency Response Plan (ERP) which is intended to handle any emergency situations that may arise. Penn West s emergency number is This number is attended 24 hours a day, 7 days a week. The area specific ERP will be amended to include the new proposed pipeline. 7. Other Approvals 7.1 Municipalities The proposed pipeline is not located within 1.5 km of any urban municipality; however Penn West has notified the RM of Brenda and the RM of Arthur of the project. 7.2 Department of Municipal Affairs, Culture and Housing (Heritage Branch) Penn West has received confirmation from Historic Resources Branch that they have no concerns with the project. A copy of the letter is included in Appendix C. 4

7 7.3 Department of Fisheries and Oceans (Canada) The proposed pipeline routing does not impact a waterway; therefore no approval is required from the Department of Fisheries and Oceans (DFO). 7.4 Manitoba Infrastructure and Transportation The proposed pipeline routing does not cross under a provincial road or highway, therefore no approval is required. 7.5 Railway Crossings The proposed pipeline routing does not cross under a railway therefore no approval is required. 7.6 Utility or Right of Way Crossings The proposed pipeline crosses third party pipelines and utilities. All crossing agreements have been acquired. Refer to the Crossing/Third Party Line List included in Appendix C. 5

8 Appendix A Survey Plans

9 Appendix B Drawings/Specifications

10 Appendix C Proof of Consultation and Access

11 Appendix D Initial Aboriginal Consultation Assessment