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ARCHIVED – Administrative Monetary Penalty – Westcoast Energy Inc. carrying on business as Spectra Energy Transmission - AMP-008-2015
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NOTICE OF VIOLATION
REFERENCE NUMBER: AMP-008-2015
Information for Pipeline Company / Third Party / Individual:
|Name:||Westcoast Energy Inc. (Spectra Energy Transmission)|
|Address:||Fifth Avenue Place, East Tower
425 - 1st Street SW
|Province / State:||Alberta|
TOTAL PENALTY AMOUNT:
Date of Notice:
17 April 2015
Regulatory Instrument #:
On 20 March 2015 Westcoast Energy Inc. carrying on business as Spectra Energy Transmission was observed to be in violation of a NEB regulatory requirement. This violation is subject to an administrative monetary penalty, as outlined below.
1. VIOLATION DETAILS
Date of Violation:
from: 20 March 2015 to: 20 March 2015
Total Number of Days: 1
Has compliance been achieved?
If no, a subsequent NoV may be issued.
Location of Violation:
Short Form Description of Violation
(Refer to Schedule 1 of the AMP Regulations)
Provision and Short-form Description
NEB Processing Plant Regulations
49(1.1) Failure to notify as prescribed (Type A) / Omission d’aviser tel qu’exigé (Type A)
Failure to comply with a term or condition of any certificate, licence, permit, leave or exemption granted under the Act (ss. 2(3) of the AMP Regulations)
2. RELEVANT FACTS
Briefly describe reasonable grounds to believe a violation has occurred
- The National Energy Board Processing Plant Regulations (PPR) 49 1.1)(b) states: (1.1) A company shall, as soon as practicable, notify the Board and the appropriate authorities of the province in which its processing plant is located of any decision made by the company to suspend the operation of any portion of the plant for a period exceeding seven days.
- On 9 March, Westcoast Energy Inc., carrying on business as Spectra Energy Transmission (Westcoast) began a scheduled partial suspension of the Pine River Gas Plant to complete a maintenance repair of Condenser Number 4 associated with Train 3 (854532). Westcoast indicated the initial planned suspension of Train 3 was six days.
- On 20 March 2015, the NEB received a phone call from Westcoast to enquire about a suspension of operations at the Pine River Gas Plant (RDIMS 854404). Westcoast indicated the suspension of operations had extended beyond the original six day window and inquired whether Westcoast was required to file a notification through the NEB's Event Reporting System (ERS) system. The NEB advised Westcoast of the reporting requirement outlined in PPR 49(1.1)(b).
- On 20 March 2015 at approximately 18:00 Mountain Time, Westcoast filed a report of the ongoing suspension in the ERS (RDIMS 854532). In this report, Westcoast indicated the suspension was expected to last for approximately 17 /days.
- On 25 March 2015, the NEB requested Westcoast provide written confirmation once Train 3 was fully returned to service (RDIMS 858124).
- On 9 April 2015, the NEB confirmed Train 3 was restarted on 3 April 2015 (RDIMS 858124).
- Based on requirements outlines in PPR 49(1.1)(b), the NEB should have been notified of the work exceeding the seven day period on 16 March 2015. The NEB did not receive notification the shutdown was ongoing until 20 March 2015, four full working days after notification of the partial shutdown should have been received. The NEB expects regulated companies to be aware of and trained in mandatory reporting requirements intended to ensure the safety of people and environment such as the one outlined above.
3. PENALTY CALCULATION
(a) BASELINE PENALTY (Gravity Value = 0)
|Category||Individual||Any Other Person|
|(Type A)||$1,365||X $5,025|
[Refer to AMP Regulations, Subsection 4(1)]
(b) APPLICABLE GRAVITY VALUE
[Refer to AMP Regulations, Subsection 4(2)]
|X||Other violations in previous seven (7) years||--||--||X||--|
|On 22 January 2015, Westcoast received a Notice of Violation totalling $88,000 for failure to ensure that the company's processing plant is designed, constructed, operated or abandoned as prescribed, as outlined in the PPR 4(1). On 18 February 2015, Westcoast paid the penalty in full.|
|Any competitive or economic benefit from violation||--||--||--|
|Reasonable efforts to mitigate / reverse violation’s effect||--|
|X||Negligence on part of person who committed violation||--||--||X||--|
|Westcoast did not take all reasonable steps to prevent the violation. This included not having a thorough knowledge of mandatory reporting requirements under the Processing Plant Regulations.|
|X||Reasonable assistance to Board with respect to violation||X||--|
|Once Westcoast was reminded of the mandatory reporting requirements under the PPR, a notification was promptly submitted through the ERS.|
|Promptly reported violation to Board||--|
|Steps taken to prevent reoccurrence of violation||--|
|Violation was primarily reporting / record-keeping failure||--||--||--|
|Any aggravating factors in relation to risk of harm to people or environment||--||--|
(d) DAILY PENALTY
(The baseline penalty, adjusted for the final gravity level)
(e) NUMBER OF DAYS OF VIOLATION
(If more than one day, then the justification must be provided.)
Notes to explain decision to apply multiple daily penalties, or "Not Applicable"
4. TOTAL PENALTY AMOUNT
Note: The total penalty amount shown is based on the period described in Step 1 above. If compliance has not been achieved, a subsequent Notice of Violation may be issued.
5. DUE DATE
You have the right to make a request for a review of the amount of the penalty or the facts of the violation, or both, within 30 days after the Notice of Violation was received.
If you do not pay the penalty nor request a review within the prescribed period, you are considered to have committed the violation and you are liable for the penalty set out in the Notice of Violation. The penalty is due on the date indicated above.
The unpaid penalty amount is a debt due to the Crown and may be recovered by collection procedures stipulated in the Financial Administration Act.
The information regarding the violation may be posted on the NEB website:
- 30 days from the date this Notice of Violation was received or;
- upon issuing a decision following a Request for Review.
To Make Payment:
You may remit your fee payment by Electronic Funds Transfer (EFT) or by cheque payable to the order of Receiver General for Canada.
EFT payments can be arranged by contacting the Director of Financial Services, Monday to Friday, from 09:00 to 16:00 Mountain Time:
Telephone: 403-606-0779 / 800-899-1265
Fax: 403-292-5503 / 877-288-8803
Cheques should be made out to the "Receiver General for Canada" and mailed to:
National Energy Board
Centre 10, 517 - 10th Avenue SW
Your completed Payment form should be enclosed with your payment.
To Request a Review
Pursuant to the NEB Act, Section 144, you may file a request for a review of this Notice of Violation by the Board.
The date of filing is the date on which the document is received, as indicated by the date on an e-mail submission or the stamped on the document by a NEB employee.
If you elect to make a request for a review, complete and submit the attached Request for Review form to:
Administrative Monetary Penalty - Reviews
National Energy Board
Centre 10, 517 - 10th Avenue SW
For more information on reviews, please see the Administrative Monetary Penalties Process Guide available on the NEB's website.
Administrative Monetary Penalties
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