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Informational Letter  IL98-1

6 February 1998

TO: All Oil, Gas, Oil Sands, and Pipeline Operators

A MEMORANDUM OF UNDERSTANDING BETWEEN ALBERTA ENVIRONMENTAL PROTECTION AND THE ALBERTA ENERGY AND UTILITIES BOARD REGARDING COORDINATION OF RELEASE NOTIFICATION REQUIREMENTS AND SUBSEQUENT REGULATORY RESPONSE

This document supersedes Informational Letter (IL) 96-10, which is hereby rescinded.

IL 94-5 and IL 96-10 introduced and clarified a Memorandum of Understanding (MOU) which described the process to be used by the upstream oil and gas industry to notify either Alberta Environmental Protection (AEP) or the Alberta Energy and Utilities Board (EUB) whenever a spill or other form of release has occurred. The MOU described a reporting process that integrated the needs of both agencies, providing the upstream oil and gas industry with a single call process to report various types of releases.

The attached updated MOU further clarifies and streamlines the release notification requirements for any release that may cause, is causing, or has caused an adverse effect as defined in the Alberta Environmental Protection and Enhancement Act.

Questions regarding the MOU can be directed to the EUB's Field Surveillance Group at (403) 297-8132 or AEP's Pollution Control Division at (403) 427-6209.

[Original signed by]

Attachment

MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN AEP AND THE EUB ON RELEASE NOTIFICATION REQUIREMENTS FOR THE UPSTREAM OIL AND GAS INDUSTRY AND SUBSEQUENT REGULATORY RESPONSE

6 FEBRUARY 1998

1 INTRODUCTION

Regulation of the oil and gas industry release notification requirements (oil, in-situ oil sands, natural gas, pipelines, and all other associated facilities) in the province is the joint responsibility of Alberta Environmental Protection (AEP) and the Alberta Energy and Utilities Board (EUB). Both agencies have release notification requirements of the upstream oil and gas industry, including pipelines, and each has a role to play in the regulatory response to such release incidents.

2 PURPOSE OF THE AGREEMENT

This agreement updates the previous MOU (IL 96-10). It maintains the previous approach and roles of each organization with regard to release notification, complaint and emergency response. It also continues a framework for separate and joint inspections and investigations in the upstream oil and gas sector. Its purpose remains to:

provide an integrated and streamlined notification and reporting procedure for industry and the public through a "one-window" approach, to the greatest degree possible,

ensure consistent notification and reporting requirements are in place for industry,

optimize the efficient use of resources available to both organizations,

ensure a coordinated and integrated response to complaints or emergencies between the regulatory agencies, and

provide for improved inter-agency communication.

This agreement does not override any existing acts, regulations or approvals of either organization.

3 JURISDICTION

3.1 AEP/EUB Approved Facilities

For the purpose of this agreement, all upstream oil and gas facilities that require approval from AEP and the EUB are considered "AEP/EUB Approved Facilities". These facilities are defined in regulations pursuant to the Alberta Environmental Protection and Enhancement Act (EPEA) and typically include certain gas processing plants, some compressor stations, designated and regulated (Class I) pipelines, waste disposal wells, and heavy oil and oil sands projects.

3.2 EUB Approved Facilities

For a variety of other upstream energy-related facilities, only EUB approvals are required. These include such facilities as oil and gas wells, most injection and disposal wells, various production facilities, Class II pipelines, lines and oilfield waste management facilities.

4 NOTIFICATION REQUIREMENTS

In an effort to streamline the industry reporting requirements of the EUB and AEP, which are somewhat different, a "one window" approach is desirable for those requirements that overlap.

Upon becoming aware of a reportable release whether immediate/current or cumulative, industry operators are required to orally notify the appropriate regulatory authority. This initial notification of a release, spill or pipeline break should be to the primary contact agency identified in Attachment 1. Cumulative releases are generally small spills that individually may not have an adverse effect but combined over a period of time may accumulate and likely will have an adverse effect on the environment.

4.1 Unrefined Product Releases

Release of substances regulated by the EUB (e.g., unrefined products such as conventional crude oil, LPG, diluent, condensate, synthetic crude, sour gas, produced water, and other produced fluids), pipeline breaks and incidents involving oilfield wastes are to be immediately reported orally to the appropriate EUB Field Centre if:

the release is in excess of 2 m³on lease or any release off lease,

there is any release from a pipeline,

any release, on or off lease, of any size that may cause, is causing or has caused an adverse effect.

Figure 1 provides a flow chart for industry operators to follow in determining whether to report the release of an unrefined product.

For the purpose of reporting, the industry operator shall use the following guidelines to assess whether the release may cause, is causing or has caused an adverse effect for the assessment process outlined in the Figure 1.

Any third party impact (off lease), e.g., crop damage, vegetation damage, and livestock impact,

unrecovered spilled substance likely to contaminate surface or ground water,

groundwater and/or surface water is contaminated,

release or spill has potential for offsite odour complaints, or

toxic or flammable release to air going offsite.

The EUB will maintain a mutually satisfactory system for capturing release notification data for unrefined releases and provide this information to AEP's Pollution Control Division (PCD) in an appropriate time period mindful of the severity of the release (see Figure 2: EUB Field Centre reporting interface with Pollution Control Division of AEP). To provide the required notification to AEP and provide industry with a "one window" contact for unrefined product releases, the EUB's Field Surveillance Group will notify PCD of all reported releases of unrefined product or pipeline breaks. PCD will notify AEP's Land and Forest Service, or Agriculture, Food and Rural Development's Public Land Management Branch of all reported releases or pipeline breaks on public lands in the "Green Area" or the "White Area" respectively. In addition, PCD will notify the AEP's Natural Resources Service, Environment Canada and Alberta Transportation and Utilities Dangerous Goods Control, as required.

For National Energy Board (NEB) regulated pipelines and facilities, the industry operator is obligated to notify the NEB regarding releases or breaks. The EUB may act as first responder to the incident, if required by the NEB. The EUB will notify the NEB of any releases or pipeline break incidents that EUB staff become aware of in the course of their work or via a public complaint, pursuant to the NEB/EUB Memorandum of Understanding dated 26 May 1995.

Once an unrefined product release has occurred, it is the industry operators responsibility to manage contaminated soils, sludge and waters generated as a result of the spill, and to decontaminate all on-lease and off-lease adverse impacts to the satisfaction of AEP¹. The EUB is the regulatory agency charged with the responsibility for ensuring that the spill is adequately contained and any free product is recovered. AEP is responsible for ensuring that operators properly decontaminate their sites. The industry operators are required to decontaminate the spill site in accordance with the AEP remediation objectives¹.

¹ AEP and the EUB are currently preparing a Memorandum of Understanding regarding the Suspension and Reclamation of Upstream Oil and Gas facilities which will be issued later this year.

4.2 Refined Product Releases

For releases of refined product (e.g., diesel, gasoline, sulphur, and solvents) the operator is required to orally notify PCD immediately upon becoming aware of such a release as stipulated in the Release Reporting Regulation (AR 117/93) of the EPEA. Any release that "has caused, is causing or may cause an adverse effect" must be reported under this Act. Refer to Appendix A: Alberta Environmental Protection Release Reporting Guideline, for more details.

4.3 Written Reports to PCD

The industry operator is responsible to provide a written report directly to PCD within seven (7) days of any oral report of an unrefined or refined product release only if it has caused, is causing, or may cause an adverse effect on the environment.

If the release is fully contained on site or there are no adverse effects, then a written report is not required.

Under the Release Reporting Regulation of AEP, the written report must include the following information, where reasonably available:

the date and time of the release, or the time period over which the release occurred, if known,

the location of the release,

the duration, frequency and rate of release, if known,

the composition of the material released (e.g., crude oil, produced water, sour gas condensate, etc.) including concentration of key components and amount released, if known,

a detailed description of the circumstances leading to the release (e.g., leaking tank, dripping valve, etc.),

the steps or procedures which were taken to minimize, control or stop the release,

the steps or procedures which will be taken to prevent a similar release from occurring,

the status of the remediation program (e.g., remediated, under active remediation or to be remediated),

the remediation plan and schedule of implementation, if required, and

where appropriate, information regarding landowner notification.

4.4 Flaring

PCD is the primary contact for flaring at joint AEP/EUB approved facilities. Operators are required to report to PCD when an AEP/EUB approved facility exceeds an approval condition or when flaring has occurred that has the potential to cause an adverse effect. PCD will, in turn, notify the EUB's Field Surveillance Group.

Operators of EUB approved facilities are required to report to the appropriate EUB Field Centre when flared volumes exceed approved limits or when flaring occurs that results in smoke or odours, or that extends over a long duration (24 hours).

5 COMPLAINT AND EMERGENCY RESPONSE

To ensure an appropriate response, both the EUB and AEP have emergency response personnel and resources based throughout the province. In addition, both organizations use 24-hour response systems with telephone numbers published on the front pages of all Alberta telephone directories.

The Government of Alberta Emergency Response Support Plan for an Upstream Petroleum Industry Incident (EUB Information Letter IL 96-11) is designed to protect the public and minimize hazards by ensuring a coordinated effective response to an incident. This document details the roles of various government agencies in responding to an emergency situation.

Recognizing the distribution of personnel throughout the province, upon request and by mutual agreement, PCD and the EUB Field Surveillance Group will assist each other by responding to non-routine situations. This will most likely occur in cases of releases of unknown material (for example hydrocarbon material that has not yet been identified to be either unrefined or refined). It is not intended that the responding organization will assume the responsibilities of the other organization, but rather to assist each other where possible. If specific problems are noted, the organization with jurisdiction must be contacted and the responsible party is expected to respond.

6 INVESTIGATIONS/INSPECTIONS

The difference in the focus of PCD and the EUB's Facilities Division is the distinction between "investigations" and "inspections". The primary focus of PCD is investigations; for the EUB's Facilities Division, it is inspections.

An investigation performed by PCD is conducted to gather evidence which substantiates or disclaims alleged contravention of EPEA or Regulations made under that Act. It is initiated on reasonable beliefs that a contravention has occurred.

An inspection, performed by the EUB's Facilities Division, is an on-site review of a facility for the purpose of:

reviewing information, checking equipment and procedures,

identifying problems and plans for resolution, and

ensuring compliance with EUB regulations and approvals.

Inspections are usually performed in cooperation with the facility operator during which time any deficiencies and appropriate remedial actions noted are discussed.

7 ENFORCEMENT

AEP's PCD and the EUB's Facilities Division place priority on facilities located in sensitive areas, facilities or operators with a poor operating history, and situations with the potential to adversely affect the environment.

8 EDUCATION

AEP and the EUB are committed to promote and enhance their relationship with industry, the public, and all interested and concerned parties by providing relevant information about their organizations and their respective regulatory roles and requirements.

9 LEGISLATION AND REVIEW

This agreement between AEP and the EUB may require modification or review depending on changes in legislation or other factors. Should modifications be required, the EUB and AEP will review their proposed modifications with any affected parties prior to instituting the changes. The regulatory requirements and processes described in this document will be periodically reviewed to ensure that they continue to meet the needs of the regulatory agencies, the industry and any other affected parties.

10 CONTACTS

Requests for further information may be directed to either:

ATTACHMENT I: INDUSTRY NOTIFICATION REQUIREMENTS
JOINT AEP/EUB APPROVED FACILITY OR PIPELINE

EUB ONLY APPROVED FACILITY OR PIPELINE

ALBERTA ENERGY AND UTILITIES BOARD
FIELD SURVEILLANCE - FIELD CENTRES

Figure 1 Release Reporting Requirements for Unrefined Products

Figure 2 EUB Field Centre Reporting Interface with Pollution Control Division of AEP

APPENDIX A:
ALBERTA ENVIRONMENTAL PROTECTION
RELEASE REPORTING GUIDELINE

June 1995

Pollution Control Division
Environmental Regulatory Service
Alberta Environmental Protection

More information regarding the Release Reporting Guideline may be obtained by contacting:

Pollution Control Division
Alberta Environmental Protection
11th Floor, 9820 - 106 Street
Edmonton, Alberta T5K 2J6
Phone:(403) 427-6225

Additional copies of the Release Reporting Guideline may be obtained by contacting:

Regulatory Approvals Centre
Alberta Environmental Protection
Main Floor, 9820 - 106 Street
Edmonton, Alberta T5K 2J6
Phone: (403) 427-6311

Contents

Background

Definitions

Who Must Report

What Must Be Reported

When to Report the Release

How to Report and to Whom

References

RELEASE REPORTING GUIDELINE

The Environmental Protection and Enhancement Act as amended (EPEA) and the Release Reporting Regulation, Alberta Regulation 117/93 as amended ('The Regulation') deal with the release of substances into the environment and set out requirements for the reporting of such releases to the Director of the Pollution Control Division of Alberta Environmental Protection (AEP).

BACKGROUND

The Release Reporting Guideline is designed to clarify how AEP will interpret the Regulation, in view of the broad range of interpretation and potential reporting obligations. The reporting requirements, set out in sections 99 to 101 of EPEA and the Regulation, are in place to ensure that AEP is aware of releases that may have an adverse effect on the environment public health or safety, and to confirm that proper remedial actions are taken in a timely manner.

This guideline and the legislative requirement to report apply to releases of all substances which cause an adverse effect. In reference to substances listed in the Transportation of Dangerous Goods Regulations (TDGR) under the Transportation of Dangerous Goods Act (Canada) and the Canadian Environmental Protection Act (CEPA), releases which have caused, are causing, or may cause an adverse effect, AND either:

i) exceed the minimum reportable quantifies referenced in TDGR, OR

ii) are listed as toxic, prohibited, or restricted substances under CEPA are to be reported to the Director of the Pollution Control Division immediately.

The person who causes or permits the release or the person having control of the released substance is responsible for determining whether there was adverse effect and for reporting the release.

DEFINITIONS

Adverse Effect

Adverse effect is defined in EPEA as "impairment of or damage to theenvironment, human health or safety or property".

Containment

Containment means the use of a building, structure or thing designed to prevent the released substance from causing an adverse effect. If the release is fully contained with no adverse effect, then the Release Reporting Regulations do not apply.

Immediate Reporting

An individual shall report the release of the substance and potential adverse effect and the information listed in S.100 of EPEA at the first available opportunity. This is not to be interpreted to mean the convenience of a person.

Written Report

A written report shall be received by the Director of the Pollution Control Division within seven calendar days of the oral report. The report must include the information required by s. 4(3) of the Regulation. A waiver of the written report may be requested as stipulated in s. 4(2) of the Regulation.

WHO MUST REPORT

The oral reporting obligation is on:

a) the person who releaseses or causes or permits the release of the substance,

b) the person having control of a substance that is released (unless they have reasonable grounds to believe that the release has already been reported), and

c) a police officer or employee of a local authority or other public authority who is informed of or who investigates a release of a substance (unless they have reasonable grounds to believe it has already been reported).

The reporting duty on police officers, and local or public authorities is consistent with their existing obligations relating to environmental and public safety emergency response. Although it is not an offence under the Act for them to fail to report it is expected that the local authorities will establish appropriate training and response systems and that they will immediately notify the Director of a release. This will assist in ensuring potential and existing adverse impacts are addressed properly and directly affected parties are notified of the release.

WHAT MUST BE REPORTED

The following section provides information on: (a) the interpretation of adverse effects; (b) the reporting of releases that have and may have adverse effects, and are at or in excess of the minimum reportable quantity; (c) the reporting of releases causing adverse effect through cumulative effects; and (d) the requests for waiver of a written report.

a) Release of substances to the environment that have caused, are causing, or may cause an adverse effect

Adverse effect, may be determined by a number of factors, including but not limited to the following:

• the chemical and physical characteristics of the substance released,
• the receiving media,
• the location of the release, and
• the risk to the environment.

The onus is on the person who causes or permits the release or has control of the released substance to determine whether there is an adverse effect.

Table 1 of this Guideline provides examples of some releases and the associated reporting obligations.

b) Release of substances in quantities required to be reported by the Regulations

The Regulation (S.3) states that the release of substances into the environment must be reported if the release has caused, is causing or may cause an adverse effect and

• the release is at or in excess of the amount listed in Table 1 in Part IX of the TDGR or
• the substance failing within the classes set out in Table 1 in Part IX of TDGR is released into a watercourse, groundwater, or surface water in any quantity; or
• the substance released is classified as Class 2 dangerous goods under TDGR (compressed gases) and released to the environment in any quantity, or
• the substance released is listed as a toxic, prohibited or restricted substance in CEPA and released to the environment in any quantity.

Table 2 of the Guideline summarizes the TDGR quantities or levels of substance release which are reportable in the event an adverse effect or potential adverse effect occurs. In situations where there may be difficulty in determining whether an adverse effect does exist, it is recommended that the release be reported if the quantities or levels listed in TDGR are exceeded. (Note: TDGR regulated substances, their class and division, and reportable quantities or levels may be obtained through TDG Bulletin Board Service at (613)998-9247 or (613)998-9470.)

Table 3 of this Guideline provides additional clarification for the reporting of particular substances referenced in S.3 of the Regulation where TDGR and CEPA describe different limits. The Table lists the types of substances and under what circumstances reporting of releases of these substances is required.

c) Cumulative releases and adverse effect

It is recognized that the cumulative effect of numerous small releases could result in a potential adverse effect even if the individual release itself may not have caused an adverse effect For example, a number of small releases may not be of sufficient quantity individually to harm groundwater. However, if they continue at the same location over a prolonged time period, there is a potential for an adverse effect to the groundwater. The person who causes or caused the release or has control of the released substance should report the adverse effect immediately upon discovery of the adverse effect.

d) Waiver of the written report

S.4(2) of the Regulation allows the Director of the Pollution Control Division to waive the requirement to submit a written report in circumstances where no adverse effects are likely to occur or the adverse effects of the release have been adequately controlled. A request for a waiver of the written report should be made by the person responsible (This request should be made at the time of the oral report). The granting of a waiver is conditional upon a satisfactory oral report. (ie. all necessary information has been submitted through the oral report and no additional information is required.)

WHEN TO REPORT THE RELEASE

The release should be reported as soon as a person knows or ought to have known of the release. This means at the first available opportunity not when it is convenient and the emergency is over. A person "ought to have known" a release has occurred when based on the information available, it is possible a release has occurred. That person should then confirm whether a release has occurred and report accordingly.

HOW TO REPORT AND TO WHOM

Reports should be made to the Director of the Pollution Control Division.

Verbal reports can be phoned to the Director at:
(403) 422-4505 or 1-800-222-6514 on a 24 hour basis

A reference number will be provided at the time of the oral report to confirm that the report of the release was made.

Written reports can be faxed to:
(403) 427-3178; or

mailed to:
Director, Pollution Control Division
Alberta Environmental Protection
11th Floor, 9820 - 106 Street
Edmonton, Alberta T5K 2J6

Releases related to motor vehicle accidents must verbally be reported to the local authority. The local authority will forward the oral report to the Pollution Control Division. A written report is not required unless specifically requested by the Pollution Control Division. For other types of transportation spills and releases related to transportation of dangerous goods, verbal reporting is required to be made to both the Pollution Control Division as per the Regulation and this Guideline, and the local authority.

FOR MORE INFORMATION CONTACT

Pollution Control Division (403) 427-6225

REFERENCES

Sections 99 to 101 of the Environmental Protection and Enhancement Act as amended

Release Reporting Regulation, Alberta Regulation 117/93 with amendments up to and including Alberta Regulation 247/93.

Transportation of Dangerous Goods Regulations (SOR 85-77 under the Transportation of Dangerous Goods Act, 1992 (Canada).

Canadian Environmental Protection Act.

* All other non-compliance with Approval limits or conditions are to be reported according to the requirements of the specific facility Approval.

** See D - The discharge that caused the excessive ambient reading is reportable immediately as an unauthorized airborne discharge under D; the ambient air quality reading is reportable according to the requirements of the specific facility Approval.

* TDGR (Table 1 in Part IX)

** Container capacity (liquid volume prior to release)

* Oil & Gas Industry refers to oil, in-situ oil sands, sweet gas and sour gas production facilities and pipelines in Alberta

Separate Attachments to IL 98-1

Figure 1: Release Reporting Requirements for Unrefined Products

Figure 2: EUB Field Centre Reporting Interface with Pollution Control Division of AEP