Section 58 Streamlining Order XG/XO-100-2005

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Section 58 Streamlining Order XG/XO-100-2005 [Folder 255376]

File 3600-A000-15
7 July 2005

To: All Oil and Gas Pipeline Companies Under the National Energy Board's Jurisdiction
All Interested Parties

Section 58 Streamlining Order

The National Energy Board has revoked Streamlining Order XG/XO-100-2002, dated 18 December 2002, and replaced it with XG/XO-100-2005 attached.

The Streamlining Order (the Order) permits projects meeting the criteria listed in Schedule A on Board-regulated oil and gas pipelines to proceed without an application pursuant to section 58 of the National Energy Board Act (the NEB Act).

The revisions to the Streamlining Order include the following changes:

• An update of the list of projects eligible for streamlining, removing those projects defined as operations and maintenance;
• Formatting changes to Schedule A to include a flowchart [PDF 114 KB] and explanation of the criteria that companies must meet in order for an eligible project to be streamlined.

Projects meeting the criteria set out in Schedule A do not require an environmental assessment under the Canadian Environmental Assessment Act. Projects undertaken pursuant to this Order are subject to the requirements of the Onshore Pipeline Regulations (OPR) and to Board audits.

The Board is also satisfied that streamlined projects would not present concerns with respect to safety, security and the environment. Such projects would be located on lands where there is an agreement in place to allow Companies to undertake streamlined activities and are not likely to adversely affect the rights of shippers or the public.

Reporting requirements are set out in the attached Order. The issuance of Streamlining Order XG/XO-100-2005 does not imply that expenditures have been approved for inclusion in the rate base. Companies and persons wishing to include such expenditures in rate base are required to justify the expenditures under Part IV of the Act.

Limits on Streamlined Activities under the Canadian Environmental Assessment Act Exclusion List Regulations

The previous draft of this Order which was circulated for comment has been revised to more accurately reflect that a project cannot be excluded under the Canadian Environmental Assessment Act, Exclusion List Regulations if the addition or installation of the component would "result in the extension of the pipeline beyond the existing limits of the right-of-way or of other property on which the pipeline is located." (Exclusion List Regulations, Part III.1, 30.1(2)(a), October 1994, SOR/94-639).

If the Exclusion List Regulations do not apply to the eligible project, the project requires an environmental assessment under the Canadian Environmental Assessment Act and cannot be streamlined under the section 58 Streamlining Order. Therefore, if a company requires additional permanent land rights to carry out an activity on the eligible projects list of the section 58 Streamlining Order, the eligible project cannot be streamlined.

The Board continues to work with the Canadian Environmental Assessment Agency to explore ways to improve the federal environmental assessment process.

If you have any questions related to the Streamlining Order please contact the Applications Business Unit at 403-299-3904 or 403-299-2796 or toll-free at 1-800-899-1265.

Yours Truly,

Michel L. Mantha
Secretary

Attachment

BEFORE the Board on (7 July, 2005).

WHEREAS the Board issued Order XG/XO-100-2002 with respect to streamlining the section 58 process;

AND WHEREAS the Board is satisfied the projects that can be streamlined according to the criteria set out in Schedule A are routine in nature for oil or gas pipelines for which an order or certificate has been issued by the Board and are not related to commodity pipelines or to pipelines transporting sulphur or sulphur compounds for sale or disposal beyond the property limits of a gas plant;

AND WHEREAS the projects streamlined according to the criteria set out in Schedule A are not subject to environmental assessment pursuant to the Canadian Environmental Assessment Act;

AND WHEREAS the Board has considered environmental matters related to the projects streamlined according to the criteria set out in Schedule A pursuant to Part III of the National Energy Board Act;

AND WHEREAS the projects streamlined according to the criteria set out in Schedule A are designed, constructed, and operated in accordance with applicable regulations made pursuant to the National Energy Board Act;

AND WHEREAS the Board is satisfied that the projects streamlined according to the criteria set out in Schedule A would not likely affect the interests of persons other than those to which the respective order or certificate was issued;

AND WHEREAS the Board has determined that certain eligible projects listed in Step 1 to the previous section 58 Streamlining Order XG/XO-100-2002 are defined as operations and maintenance activities for which no application is required pursuant to section 58 of the National Energy Board Act;

AND WHEREAS the Board considers it to be in the public interest to grant an exemption order in respect of the projects streamlined according to the criteria set out in Schedule A;

IT IS ORDERED that Order XG/XO-100-2002 is hereby revoked;

IT IS FURTHER ORDERED pursuant to sections 18 and 58 of the National Energy Board Act that the projects listed and streamlined according to the criteria set out in Schedule A, attached to and forming part of this Order, are exempt from the provisions of sections 30, 31 and 47 of the National Energy Board Act, upon the following conditions:

NATIONAL ENERGY BOARD

Michel L. Mantha
Secretary

Schedule A:
Process for Identifying and Reporting on Projects Subject to
Streamlining Order XG/XO-100-2005

Schedule A is to be used to determine whether a project under the National Energy Board Act is subject to Streamlining Order XG/XO-100-2005 (the Order).

However, Companies and persons may be required, either upon request of the Board or during a Board inspection or Board audit, to demonstrate that projects undertaken pursuant to the Order were properly subject to this Order. Companies and persons are also reminded of the reporting requirements pursuant to condition 1 of this Order.

It is important to note the following:

• In determining whether a project under the National Energy Board Act is subject to the Order, Companies shall ensure that the project is within the list of eligible projects listed in Step 1.
• The Order only applies to projects on an existing oil or gas pipeline for which a Board Certificate or Order¹ is in place and does not apply to commodity pipelines or to pipelines transporting sulphur or sulphur compounds for sale or disposal beyond the property limits of a gas plant.
• Projects subject to the Order shall be designed, constructed, and operated in accordance with regulations made pursuant to the National Energy Board Act.
• The Order applies only to projects and associated ancillary facilities which satisfy ALL the criteria set out in Schedule A.
• Operations and maintenance activities are defined within the National Energy Board's Regulation of Operations and Maintenance Activities on Pipelines Under the National Energy Board Act and Guidance Notes" (2005). Operations and maintenance activities are not included under the Streamlining Order as they do not require an application under section 58 of the National Energy Board Act. The Board recommends that Companies review the requirements and guidance notes for operations and maintenance activities to determine if notification of these activities is required.

1. The Company proposing the project eligible for streamlining must hold in its name the Order or Certificate issued by the Board.

Schedule A Flowchart [PDF 114 KB]