Inspection Officer Order No. DRP-002-2025

Inspection Officer Order No. DRP-002-2025 [PDF 239 KB]

INSPECTION OFFICER ORDER NO. DRP-002-2025

IN THE MATTER OF THE CANADIAN ENERGY REGULATOR ACT,
AN ORDER UNDER SECTION 109

Westcoast Energy Inc. (Westcoast) is a Company with pipeline facilities subject to the CER’s jurisdiction.

On or about 23 September 2025 at 08:30 AM, the undersigned Canada Energy Regulator Inspection Officer (IO) initiated a compliance verification activity (CVA) at Westcoast’s Compressor Station 8A (CS8A) near Merritt, BC, in response to a damage-to-pipe incident (DPR2025-258) that occurred on 19 September 2025 and was reported by Westcoast to the CER on 20 September 2025.

The incident involved contract workers, under Westcoast’s supervision, performing mechanical excavation within the station. During this work, a 2-inch power gas line running parallel to a 42-inch transmission line was damaged. No release of gas or injuries were reported.

The IO’s observations during this CVA, in conjunction with the review of historical incidents, identified material deficiencies in Westcoast’s supervision of contractors, adherence to established company procedures, and ground disturbance practices. These deficiencies are of heightened concern, as ground disturbance has been expressly designated by Westcoast as a Life Saving Rule, thereby constituting a critical element of its safety management framework.

RELEVANT FACTS

The following are the relevant facts relating to the issuance of this Order:

1. On 19 September 2025, contract workers under the supervision of Westcoast were engaged in the mechanical removal of fillcrete using pneumatic jackhammers and chisels at CS8A. During this activity, the workers struck a 2-inch power gas line operating at approximately 3,450 kPa (PG line). The incident did not result in the release of gas and no injuries were reported.
2. During the CVA, the IO observed a 2.5‑metre section of the damaged PG line that exhibited multiple gouges consistent with chisel and jackhammer impacts.
3. Documents provided by Westcoast confirm that a locate request was made and locates were performed. The buried facilities sketch identified the PG line that was later damaged.
4. Despite the completed locates, neither Westcoast’s Ground Disturbance Inspector nor the contract workers performing the mechanical excavation were aware of the PG line’s location.
   1. Contract workers told the IO that, while using jackhammers and chisels, care was taken to avoid damaging the 42-inch line but that workers were unaware of the PG line.
   2. Contract workers told the IO that the PG line was not discussed at the morning meeting attended by both the contractor and Westcoast.
   3. During the CVA, the IO observed the exposed 42-inch line and the repaired PG line, as well as surface markings that appeared to accurately reflect the PG line’s location. However, during interviews, the IO determined that the surface markings for the PG line were not visible on the day of the incident.
5. Based on discussions with Westcoast representatives and its contractor, and review of company documents, the IO determined that several elements of Westcoast’s Ground Disturbance Standard were not followed:
   1. No evidence was provided that Westcoast and the contractor discussed how to conduct mechanical excavation safely near the PG line.
   2. Mechanical excavation was permitted near the PG line without first exposing it by hand.
   3. Jackhammers were used directly over the PG line.
   4. Mechanical excavation continued even though surface markings were no longer visible.
   5. Contractor responsibilities under the Ground Disturbance Standard were not met, despite Westcoast’s presence at the site.
6. Based on the above, the IO alleges that:
   1. Westcoast’s processes for supervising workers during ground disturbance work and communicating safety information were not effectively implemented at this site, contrary to Canadian Energy Regulator Onshore Pipeline Regulations (OPR) paragraphs 6.5(1)(k) and (m).
   2. Reasonable steps were not taken to ensure that ground disturbance work was conducted safely and in accordance with company procedures, in contravention of OPR subsection 4(2) and paragraph 29(1)(c).
7. Historical evidence obtained by the CER through compliance verification activities and incident follow-up demonstrates instances of prior non-compliance by Westcoast, including damage-to-pipe incidents that occurred while Westcoast representatives were present at the worksite (CV2122-277 and DPR2022-059).

MEASURES TO BE TAKEN

Based on the facts referenced herein, where the Inspection Officer has reasonable grounds to believe that there is or is likely to be a contravention of Parts 2 to 5 or section 335 of the CER Act, or for a purpose referred to in subsection 102(2) CER Act, the Inspection Officer may, by Order, direct a person to

1. stop doing something that is in contravention of Parts 2 to 5 or section 335 or cause it to be stopped;
2. take any measure that is necessary in order to comply with Parts 2 to 5 or section 335 or mitigate the effects of non-compliance;
3. stop doing something that may cause a hazard to the safety or security of persons, or damage to property or the environment or cause it to be stopped; or
4. take any measure that is necessary to prevent or mitigate the hazard to the safety or security of persons or damage to property or the environment.

Westcoast is ORDERED pursuant to subsections 109(1) and 109(2) of the CER Act to:

SPECIFIED MEASURES

1. Conduct a comprehensive investigation into the damage-to-pipe incident that occurred at CS8A on 19 September 2025. The investigation must consider:   
   1. a review of ground disturbance practices, including the provision of safety information related to locate markings and monitoring ongoing compliance with company procedures,
   2. Westcoast’s processes for supervising contractors during ground disturbance activities, including field implementation,
   3. work authorization when both operations and projects are involved,
   4. historical damage-to-pipe incidents that have occurred under Westcoast’s supervision,
   5. the process for assigning and overseeing supervisors,
   6. the methods to verify supervisory effectiveness in the field, and
   7. the processes to evaluate and confirm ongoing supervisory performance.
2. On or before 31 October 2025, submit to the Inspection Officer, for approval, the investigation report and an implementation plan for identified corrective and preventive actions under Measure 1.
3. Provide to the Inspection Officer, for review, quarterly progress reports on the implementation of the actions under Measure 1, until all such actions have been fully implemented, unless the IO directs otherwise.

EFFECTIVE DATE OF THE ORDER

This Inspection Officer Order takes effect immediately on 29 September 2025 at the time of delivery of this Order to the Company to whom it is directed. Nothing in this Order shall be construed as reducing, increasing, or otherwise affecting what may be required of the Company to whom it is directed to comply with all applicable legislative or legal requirements.

COMPLIANCE WITH THIS INSPECTION OFFICER ORDER IS MANDATORY

Failure to comply with an Inspection Officer Order issued under section 109 of the CER Act is an offence under section 112 of the CER Act.

Inspection Officer

Inspection Officer	29 September 2025
	Date
	IO Designation Number	Signature
	210-517 10 Ave SW, Calgary AB  T2R 0A8

Please note that:

1. In compliance with the CER’s Enforcement Policy, this Order will be posted on the CER’s website.
2. All submissions to the CER in response to the Order are to be provided within the CER Operations Regulatory Compliance Application (ORCA) quoting the associated CVA #, Inspection Officer Order #, and any specific measure with which the submission is associated. In addition, the Company is requested to send a copy of any response provided in the ORCA to the Inspection Officer via email.

CVA or incident #: DTP2025-258 and CV2526-323

Date modified:

2025-10-09