Canadian Natural Resources Limited

Transcription

1 Decision D Margie 1034S Substation May 28, 2018

2 Alberta Utilities Commission Decision D Margie 1034S Substation Proceeding Application A001 May 28, 2018 Published by the: Alberta Utilities Commission Eau Claire Tower, 1400, 600 Third Avenue S.W. Calgary, Alberta T2P 0G5 Telephone: Fax: Website:

3 Alberta Utilities Commission Calgary, Alberta Decision D Proceeding Margie 1034S Substation Application A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission decides whether to approve an application from to construct and operate the Margie 1034S Substation. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of s application is in the public interest having regard to the social, economic, and other effects of the proposed substation, including its effect on the environment. 2 Introduction and background 2. (CNRL) filed an application with the Commission seeking approval to construct and operate a substation designated as the Margie 1034S Substation (the Margie 1034S Substation or the proposed substation) pursuant to Section 16 of the Hydro and Electric Energy Act. The application was registered on April 1, 2018, as Application A On May 1, 2018, the Commission issued a notice of application for Proceeding with a deadline of May 22, 2018, for submissions to express objections, concerns, or support for the application. The notice was sent directly to all occupants, residents and landowners within 800 metres of the proposed substation, as well as to other stakeholders who were contacted as part of the participant involvement program as identified by CNRL. The notice was also published on the AUC website and notification was automatically ed to efiling System users who had chosen to be notified of notices of application issued by the Commission. No submissions were received. 4. On May 1, 2018, the Commission issued information requests to CNRL to clarify certain application details. CNRL responded to the information requests on May 7, Discussion 5. In this application CNRL has applied to construct and operate the Margie 1034S Substation which would be located in the northwest and northeast quarters of Section 31, Township 74, Range 8, west of the Fourth Meridian, adjacent to CNRL s Kirby North Central Processing Facility. The Margie 1034S Substation would feed the Kirby North Central Processing Facility distribution system. Decision D (May 28, 2018) 1

4 6. The Margie 1034S Substation would include the following major equipment: two 138/13.8-kilovolt (kv), 30/40/50-megavolt-ampere load tap changer transformers three 138-kV circuit breakers one control building associated substation equipment 7. The Margie 1034S Substation would not be located within 800 metres of any occupant, resident, or private landowner. The proposed substation site would have a fenced area of 80 metres by 80 metres. 8. CNRL stated that the Margie 1034S Substation would be integral to the efficient and effective commercial operation of the Kirby North Central Processing Facility. CNRL asserted that owning its own substation would have several advantages including: The control of the initial capital cost and construction schedule The control of maintenance and schedules for outages The control of the operation of the substation by CNRL such as: o The switching and isolation of circuits maintenance or expansion as required o The grounding of the circuits for safety when working on downstream equipment o The resetting of circuit trips, including the main 138-kV circuit breaker o Troubleshooting within the substation The collection and utilization of supervisory control and data acquisition (SCADA) and power monitoring information for 13.8-kV feeders The ability to add or remove 13.8-kV distribution circuits and modify the distribution line as required by CNRL at its own schedule and cost The ability to utilize the protection and control schemes and protective devices which would allow for more flexibility and control 9. Additional transmission facilities required to interconnect the Kirby North Central Processing Facility to the Alberta Interconnected Electric System include approximately 13.2 kilometres of new 138-kV transmission line that would connect AltaLink Management Ltd. s (AltaLink) existing transmission line 789L to the Margie 1034S Substation. CNRL indicated that this new transmission line and interconnection would be the subject of a future application to the AUC. CNRL has discussed the proposed development with AltaLink and the Alberta Electric System Operator and no concerns have been raised with respect to the proposal. 10. CNRL anticipated that the project s in-service date would be March 1, Decision D (May 28, 2018)

5 11. In its application, CNRL applied for an order or orders granting an exemption from sections 14 and 15 of the Hydro and Electric Energy Act pursuant to Section 16 of the Hydro and Electric Energy Act to allow CNRL to construct, own and operate the Margie 1034S Substation. 12. Section 16 of the Hydro and Electric Energy Act states: Exemption 16(1) Unless the Commission otherwise directs, sections 14 and 15 do not apply (a) to a person transmitting or proposing to transmit electric energy over the person s own land solely for the person s own use by means of a line that does not cross a public highway, or (b) to the owner of an industrial system transmitting or proposing to transmit electric energy (i) over land of which the owner of the industrial system is the owner or tenant, or (ii) across a public highway dividing land that is owned or leased by the owner of the industrial system for use solely by that industrial system. (2) Notwithstanding subsection (1), a person transmitting or proposing to transmit electric energy solely for the person s own use shall, where required by regulation to do so, immediately notify the Commission of the use or proposed use and provide any details of the transmission and use that the Commission requires. 13. The reasons that CNRL stated that the Margie 1034S Substation would meet Section 16 of the Hydro and Electric Energy Act are discussed further below. 14. CNRL is a tenant of the Crown lands where the proposed substation is located. With respect to the land ownership requirement contained in Section 16 of the Hydro and Electric Energy Act, CNRL stated that its application is consistent with Subsection 16(1)(a) because CNRL has the right to construct and operate a Power Station/Substation pursuant to the Department Miscellaneous Lease No issued by Alberta Environment and Parks (AEP) on behalf of the owner of the land, the Government of Alberta. 15. CNRL stated that that the proposed substation would only serve the Kirby North Central Processing Facility load, which is anticipated to be 29 megawatts and that the Margie 1034S Substation would not cross any public highways. 16. Although CNRL applied for an exemption from Section 16 of the Hydro and Electric Energy Act, CNRL explained that it would also be receptive to the Commission granting CNRL a permit and licence for the construction and operation of the substation. In the alternative, CNRL submitted that it was applying for a permit and license for the construction and operation of the Margie 1034S Substation, should the Commission determine that this option is in the public interest. CNRL filed the informational requirements contained in Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments in support of its alternative application. Decision D (May 28, 2018) 3

6 17. CNRL submitted that it completed extensive public consultation for the Kirby North Central Processing Facility. In February 2018, CNRL undertook a formal consultation program in accordance with Rule 007 for the proposed substation. A mailing list was developed which included landowners, residents, occupants, Indigenous communities, agencies and industrial interest holders within 800 metres of the proposed substation. 18. CNRL obtained direction from the Alberta Aboriginal Consultation Office regarding the Indigenous communities that were to be consulted with for the proposed substation. CNRL consulted with Beaver Lake Cree Nation, Buffalo Lake Métis Settlement, Chipewyan Prairie First Nation, Fort McMurray #468 First Nation, Heart Lake First Nation, Kikino Métis Settlement and Saddle Lake Cree Nation. 19. CNRL stated that a notification package which contained information regarding the Margie 1034S Substation was mailed and ed to stakeholders on February 22, 2018 and February 23, CNRL further stated that notification and consultation were completed at the same time for the Margie 1034S Substation and the proposed transmission line that is the subject of a future application. CNRL did not receive any concerns related to the construction or operation of the proposed substation. 21. CNRL retained RWDI Consulting Engineers and Scientists to complete a noise impact assessment for the proposed substation. The noise impact assessment predicted that the proposed substation would comply with the requirements of Rule 012: Noise Control. 22. CNRL also retained Carson Integrated to review any potential environment impacts from the construction and operation of the proposed substation. Carson Integrated was of the opinion that the proposed substation does not pose an undue risk to the surrounding environment and that the proposed substation is consistent with existing land use in the area. CNRL stated that the construction plan would minimize the impact of the proposed substation on local wildlife and sensitive environmental features. CNRL further stated that the proposed substation would be contained within the footprint of several existing energy developments which would minimize the additive effects of development in the region. 23. CNRL stated that the development of this location as a substation was approved by AEP for that purpose with the issuance of Department Miscellaneous Lease No on October 22, CNRL stated that it would observe the conditions associated with the issuance of the disposition including any prescribed mitigations for wildlife. 24. The Margie 1034S Substation would be subject to CNRL s end-of-life steam assisted gravity drainage (SAGD) facility reclamation obligations. 25. The proposed substation site has received Historical Resources Act approval. 4 Findings 26. Given that CNRL has met the application requirements to construct and operate a substation prescribed in Rule 007, and does not require an exemption from Section 16, the Commission has decided to assess the application under sections 14 and 15 of the Hydro and 4 Decision D (May 28, 2018)

7 Electric Energy Act. The Commission considers that it does not need to make any findings about whether to grant an exemption under Section 16 of the Hydro and Electric Energy Act or whether Section 16 may apply to leases on Crown land. 27. The Commission finds that the participant involvement program undertaken by CNRL meets the requirements of Rule 007 and notes that there are no outstanding objections or concerns. 28. The Commission finds that the noise impact assessment submitted by CNRL for the Margie 1034S Substation meets the informational requirements of Rule 012 and indicates that the proposed substation, if approved, will comply with the permissible sound limits specified in that rule. 29. The Commission is satisfied that there are no outstanding technical or environmental concerns associated with the construction and operation of the proposed substation. 30. Based on the foregoing, the Commission considers the application to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. 5 Decision 31. Pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, the Commission approves the application and grants CNRL the approval set out in Appendix 1 Permit and Licence D May 28, 2018, to construct and operate the Margie 1034S Substation. Appendix 1 will be distributed separately. Dated on May 28, Alberta Utilities Commission (original signed by) Tracee Collins Commission Member Decision D (May 28, 2018) 5