Inspection Officer Order No. DRP-001-2025

Inspection Officer Order No. DRP-001-2025 [PDF 213 KB]

INSPECTION OFFICER ORDER NO. DRP-001-2025

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

NGTL GP Ltd. is a Company conducting work located near Rocky Mountain House, Alberta.

On or about 16 July 2025 at 10:00 AM the undersigned Canada Energy Regulator Inspection Officer conducted a compliance verification activity (CV2526-306) at WAS-180 (GPS 52.46819400, -114.86902800), located on the NGTL Western Alberta System (WAS) Mainline. This inspection was initiated in response to a flash fire incident reported to the CER on 13 July 2025 at this location (CER Incident INC2025-047).

On 16 July 2025, at approximately 3:39 PM, a verbal stop work order was issued to NGTL GP Ltd. by the undersigned Inspection Officer.

RELEVANT FACTS

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

1. NGTL GP Ltd. (referred to as "the Company") is conducting valve and piping replacement activities under the isolation and pipe handling plan associated with Project No. E.036750.
2. On 13 July 2025, the Company notified the CER of a flash fire that occurred during torch cutting operations. The suspected fuel source was the leaking block valve WAS180-0-BV. No injuries were reported.
3. On 16 July 2025, the CER Inspection Officer observed work being performed inside an excavation where a single block valve (WAS-180-0-BV) - known to be leaking - was being used to isolate workers from a NPS 36 high-pressure natural gas mainline.
4. To manage the risks associated with a single, leaking block valve, the Company applied an alternative isolation method permitted under its procedures - specifically, inflatable gas bags installed inside the pipe between the valve and the work area. This approach aligned with “Method F – Isolation Alternatives” in Appendix A of the Pipeline Isolation and Gas Handling Process (CAN) (Item ID: 003672508). Continuous gas monitoring was conducted downstream of the bags, and the space between the leaking valve and the bag was vented using NPS 2 piping.
5. Although the inflatable bag was deployed as part of the isolation strategy, its primary intended use is a vapour barrier, and it was not rated to hold pressure. Given the uncertainties related to the leaking valve, and the occurrence of the flash fire reported to the CER earlier in the week - the Inspection Officer was not satisfied that this isolation method provided effective protection for workers.
6. During the inspection, the Company was unable to provide sufficient data regarding:
   • The reliability of the leaking valve.
   • The effectiveness of the inflatable bags in preventing gas from reaching the work area.
   • The leak rate or whether it could worsen over time.
7. Despite these uncertainties, hot work was scheduled to continue downstream of the valve for six additional days, including tasks that required removal of the inflatable bags. Nitrogen was planned as a mitigation measure during those periods.
8. At the time of inspection, the Company had not provided sufficient evidence to demonstrate that workers were adequately protected from fire and explosion risks associated with the single block isolation and the known leaking valve.

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.

NGTL GP Ltd. is ORDERED pursuant to subsections 109(1) and 109(2) of the CER Act to:

SPECIFIED MEASURES

1. Immediately stop all work activities within the WAS-180 station until such time as Specified Measure 2 has been met and approved by the Inspection Officer. This measure does not apply to:
   • essential tasks that do not involve ignition sources, provided they are necessary to maintain site safety and security or to protect the environment; or
   • activities that are protected by a verified double block and bleed or a greater level of isolation.
2. Before resuming any work at the site not excluded under Measure 1(a) or 1(b), the Company must submit a documented risk assessment and isolation plan to the Inspection Officer for review and approval. This submission must:
   • Demonstrate that the piping is adequately isolated to ensure worker safety.
   • Include specific controls to protect workers from fire and explosion risks associated with the passing block valve.
   • Describe how the isolation will be monitored and verified throughout the duration of the work.

EFFECTIVE DATE OF THE ORDER

This Inspection Officer Order takes effect immediately on 16 July 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	16 July 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 #: INC2025-047 and CV2526-306

Date modified:

2025-07-28