[All] NEB correspondence re: Hydrostatic testing of Line 9

Mon Feb 23 23:29:26 EST 2015

Hi folks
Here's the lastest response I got from the National Energy Board regarding the hydrostatic testing of line 9.  The Leave to Open (LTO) is the permissions that must be granted before the oil starts to flow. 

Lulu 
    ----- Forwarded Message -----
  From: Katherine L. Murphy - Communications <KatherineL.Murphy at neb-one.gc.ca>
 To: Louisette Lanteigne <butterflybluelu at rogers.com> 
 Sent: Monday, February 23, 2015 4:47 PM
 Subject: RE: Questions regarding line 9

#yiv5730359605 #yiv5730359605 -- _filtered #yiv5730359605 {font-family:Helvetica;panose-1:2 11 6 4 2 2 2 2 2 4;} _filtered #yiv5730359605 {font-family:Helvetica;panose-1:2 11 6 4 2 2 2 2 2 4;} _filtered #yiv5730359605 {font-family:Calibri;panose-1:2 15 5 2 2 2 4 3 2 4;} _filtered #yiv5730359605 {font-family:Tahoma;panose-1:2 11 6 4 3 5 4 4 2 4;}#yiv5730359605 #yiv5730359605 p.yiv5730359605MsoNormal, #yiv5730359605 li.yiv5730359605MsoNormal, #yiv5730359605 div.yiv5730359605MsoNormal {margin:0in;margin-bottom:.0001pt;font-size:12.0pt;}#yiv5730359605 a:link, #yiv5730359605 span.yiv5730359605MsoHyperlink {color:blue;text-decoration:underline;}#yiv5730359605 a:visited, #yiv5730359605 span.yiv5730359605MsoHyperlinkFollowed {color:purple;text-decoration:underline;}#yiv5730359605 span.yiv5730359605EmailStyle17 {color:#1F497D;}#yiv5730359605 p.yiv5730359605Default, #yiv5730359605 li.yiv5730359605Default, #yiv5730359605 div.yiv5730359605Default {margin:0in;margin-bottom:.0001pt;font-size:12.0pt;color:black;}#yiv5730359605 .yiv5730359605MsoChpDefault {font-size:10.0pt;} _filtered #yiv5730359605 {margin:1.0in 1.0in 1.0in 1.0in;}#yiv5730359605 div.yiv5730359605WordSection1 {}#yiv5730359605 Ms. Lanteigne,    Apologies for the delay in my response to you.  To respond to your questions regarding Enbridge’s Line 9Line 9B Reversal and Line 9 Capacity Expansion Project, and specifically hydrotesting, I would direct you to theReasons for Decision issued by the Board in 2014.  I would highlight (from page 49):    Hydrotesting   The Board notes the recommendation of Équiterre, based on the Accufacts Report, and of other Participants to require Enbridge to conduct hydrotesting of Line 9 prior to bringing the Project into service. However, the Board acknowledges Enbridge’s statement that there may be potential detrimental effects of hydrotesting the existing pipeline, including the potential to induce pressure reversal and cracks, or to grow cracks that do not fail during the test but may continue to grow in-service after and potentially as a result of hydrotesting. In addition, in its Table 3, the Accufacts Report notes that when ILI technology is proven it can reveal more about the condition of pipe than hydrotesting would, and that hydrotesting may not effectively identify some features, such as girth welds defects.   For these reasons, the Board elects to make no order at this time regarding hydrotesting of the pre-existing portions of Line 9. However, the Board has imposed Condition 11 which requires Enbridge to provide its overall hydrotesting program in order for the Board to further understand Enbridge’s corporate approach to hydrotesting. After receiving the Updated EA and Enbridge’s filings in respect of completed repairs and ILI tool reliability, and after considering Enbridge’s corporate policies and approach with respect to hydrotesting, the Board may revisit the issue of requiring hydrotesting prior to granting LTO.   The Board denies Enbridge’s request for an exemption from section 47 of the NEB Act. Enbridge must apply for LTO with hydrotesting results for new facilities before it can bring the Project into service. As explained above, the Board will consider Enbridge’s response to Conditions 9, 10 and 11, to determine whether it ought to require Enbridge to perform hydrotesting on existing portions of Line 9. The Board has also imposed a number of additional conditions with which Enbridge must comply prior to applying for LTO.   I would also direct you toSchedule A of theOrder XO-E101-003-2014 provides all applicable pressures for the Project.    On 6 February 2015 Enbridge submitted their Leave to Open Application for the Project.  You can find it through the NEB’s website:https://docs.neb-one.gc.ca/ll-eng/llisapi.dll?func=ll&objId=2679604&objAction=browse&viewType=1 andhttps://docs.neb-one.gc.ca/ll-eng/llisapi.dll?func=ll&objId=2679716&objAction=browse&viewType=1. It includes the results of the pressure tests that Enbridge has done.    In response to your final question, the Board approved the project in March 2014.  At this point the economic feasibility of continuing with the project would rest with company.      Best, Katherine       Katherine Murphy    Communications Officer | Agente des communications National Energy Board |517 Tenth Avenue SW, Calgary, Alberta
Office national de l'énergie | 517, Dixième Avenue S.-O. Calgary (Alberta)
Government of Canada | Gouvernement du Canada telephone / téléphone : 587-538-2120 KatherineL.Murphy at neb-one.gc.ca www.neb-one.gc.ca    Follow us on Twitter:@NEBCanada Suivez-nous sur Twitter :@ONE_NEBCanada          

From: Louisette Lanteigne [mailto:butterflybluelu at rogers.com]
Sent: February 09, 2015 1:37 PM
To: Katherine L. Murphy - Communications
Subject: Questions regarding line 9    Hello Ms. Murphy    In regards to Line 9, has there been hydrostatic testing completed on the line to show it can withstand the proposed pressure of 1000 psi? As a delegate of both hearings I was concerned about this because the data of Enbridge's integrity digs as featured in Equiterre's affidavit which includes the Accufact report indicated a 90% probability of rupture if the line were to run at the proposed pressures.    My father has over 40 years expertise with fuel systems and he too is wondering if the line will be appropriately tested at 1.5 times the recommended psi to assure the integrity of the pipe for the lifespan of the system. Will this be completed?     Where can the public review the findings of the hydro-static testing to assure compliance?    Also I am concerned with the impact that oil prices have had on the market thus far. In the final fourth quarter reports we saw oil prices reduce from 50-60%. Enbridge's final fourth quarter report is due to go public on Feb. 22nd. Imperial oil who wants this line saw their shares drop 36% and now they intend to sell off approx. 500 Esso Stations.     The economic predictions for this line was based on $100 per barrel oil prices. What if economically the prices stay below the cost of production?  Is there any mechanism we can use to foster further dialogue on this issue at some point? If so to whom do we address our concerns to?    Thank you kindly for your time.     Louisette Lanteige 700 Star Flower Ave. Waterloo Ont. N2V 2L2 

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