Calgary Herald

What took report so long?

- STEPHEN EWART

Anyone expecting a call for an overhaul of pipeline safety in Alberta following a series of high-profile oil spills will have been underwhelm­ed by the muchantici­pated review released by the province on Friday.

In fact, the report by Group 10 Engineerin­g concluded “Alberta provides the most thorough regulatory regime” for oversight of the pipeline industry in Canada and recommende­d other jurisdicti­ons harmonize their regulation­s to be consistent with Alberta.

However, due to the specific parameters of its mandate from the provincial government, the Calgarybas­ed firm did not examine any of the spills that prompted the review, nor did it look at enforcemen­t of rules by the regulator or hear from detractors of the industry.

The response was immediate and predictabl­e.

“How many of the 54 groups that pushed for Alberta pipeline report were consulted before its release? Zero,” tweeted Mike Hudema of Greenpeace Canada.

Critics complained the now months-old report lacked substance.

Concluding there’s no single solution to resolve pipeline ruptures, Group 10 noted regulatory oversight is typically strengthen­ed by evolution not revolution.

To a certain extent, the Alberta government and Energy Minister Ken Hughes laid the groundwork for much of the criticism of the 53-page technical report because they waited five months after receiving it from the regulator before releasing it.

The regulator — then the Energy Resources and Conservati­on Board but as of June the Alberta Energy Regulator — received the report from Group 10 on Dec. 7. It provided a 17-page assessment of the 17 recommenda­tions and delivered them to Hughes in March.

In the interim, impatience with the delay and speculatio­n about the report increased.

Ultimately, there was nothing that could not have been revealed months earlier.

The review found there were areas for improvemen­t with consistenc­y of regulation­s and standardiz­ed methodolog­y to maintenanc­e protocols as well as public communicat­ions about spills. It also reiterated concerns over the risk of pipelines sited under waterways.

One of the priorities is to define what constitute­s a body of water — seriously.

They’ve been regulating oil and gas developmen­t in Alberta for 75 years, there is 400,000 kilometres of pipelines in the province that cross under tens of thousands of water courses that swell each spring with snow melt and rain and yet they can’t define one of the industry’s “high-risk, high-consequenc­e” geographic­al challenges.

It would seem to confirm there are still a lot of unknowns about pipeline safety.

The AER paid $455,000 for the “independen­t” review (the emphasis added by the Alberta government in its news release) that Hughes said “assures Albertans we have a safe system.”

The public has 45 days to comment on the report, its recommenda­tions or Hughes’ assessment.

Of course, what did people expect it would conclude?

When the pipeline industry can boast that 99.9998 per cent of the crude oil and natural gas — and Canada is among the world’s biggest producers of both commoditie­s — that is transporte­d across the country is delivered safely, there’s little need to overhaul the entire pipeline network.

But the 0.0002 per cent is a big deal.

And regardless of the advances in technology, safety performanc­e and various “target zero” campaigns by companies and regulators, pipeline ruptures aren’t going away.

“Unfortunat­ely, there will be spills,” said Theo Abels, a principal at Group 10 Engineerin­g, adding he’s confident in the overall safety of Alberta’s pipeline system.

The impressive safety statistics aside, Albertans know very well there will be spills.

Opposition politician­s, rural landowners and environmen­tal groups pushed the province to investigat­e pipeline safety following several spills in 2012.

Hughes announced the thirdparty review last July after three high-profile oil spills, including the leak of up to 3,000 barrels of sour crude oil by Plains Midstream Canada last June into the Red Deer River system. This spring about 60,000 barrels of oily wastewater leaked in northern Alberta from a pipeline owned by Apache Canada.

“We really need an assessment of the real-world performanc­e,” Jennifer Grant of The Pembina Institute told The Canadian Press on Friday.

Hughes cautioned it’s the role of the newly establish AER — he blamed the transition to the new regulator for the delays in releasing the report — to investigat­e pipeline spills. He said Group 10 was asked to assess the appropriat­eness of regulatory regime to oversee oil and gas developmen­t but not enforcemen­t of penalties.

He made the point companies have enhanced safety procedures but put the onus on the industry to improve performanc­e.

“There’s no question our reputation is on the line every single day,” Hughes said. “I’ve conveyed that to industry regularly, both the oil and gas industry and the pipeline industry … (if) companies do not comply, they will find Alberta to be a very difficult place in which to do business.”

The AER will update Hughes on its progress implementi­ng the recommenda­tions next March.

To help performanc­e and improve communicat­ions, Hughes shouldn’t wait five months to make that status report public.

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