Pipeline ‘ incidents’ rose 15 per cent in 2014: report

The number of pipeline “incidents” in Alberta rose 15 per cent in 2014 despite the Alberta Energy Regulator’s goal of reducing ruptures and spills.

In its 2014- 15 annual report released Wednesday, the AER said the number of pipeline incidents increased to 1.6 per 1,000 kilometres of pipeline in 2014, from 1.4 in the previous year. Alberta, which produces almost 80 per cent of the crude oil and natural gas in Canada, has more than 421,000 kilometres of pipelines regulated by the AER.

That failure rate works out to 773 incidents in 2014 compared with 658 in 2013; when there was 6,000 fewer kilometres of pipelines in the province. The AER has targeted a four per cent decrease in pipeline “incidents” from 2014 to 2017.

The regulator defines “incidents” as reportable releases of hydrogen sulphide, reportable releases of hydrocarbons or produced water and any release that affects a body of water.

The report didn’t list the volume of hydrocarbons spilled.

“This increase is in large part due to both the AER focusing more attention on the pipeline sector through inspections and education, and operators doing a better job of checking their lines and reporting any problems,” AER spokesman Peter Murchland said. “While the overall incident rate was up, most of that increase were smaller incidents with limited environmental impacts; there were fewer large pipeline releases.”

Meanwhile, the transition to funding of the AER entirely by the oil and gas industry continues. The annual report said the industry levy increased 42 per cent in 2015 — almost $ 77 million — to $ 258 million this year as a provincial grant fell 45 per cent to $ 36.3 million. The AER’s budget is $ 287.9 million in 2015.

The government grant will be eliminated in 2016 and the AER forecasts the bill to industry increasing five per cent to $ 270 million. A series of reforms to improve efficiency will offset higher costs for industry, the AER said.

“By reducing duplication and finding new approaches to regulatory oversight, we have generated more than $ 270 million in verified annual savings for industry — making the AER a ‘ levy- neutral’ regulator,” the annual report said.

The report cited the progress integrating parts of the provincial Environment Ministry into the regulator, but new NDP Premier Rachel Notley has raised the possibility of moving those functions back under direct government oversight.