Alberta Transportation Rail Safety April 28, 2015 Dangerous Goods, Rail Safety and 511

Partnership Outcome is linked to input by the parties involved, Alberta Transportation believes in a collaborative approach – partnerships are invaluable, some examples are; Industry – we value our good relationships! Keyera – Railway Safety Video Kinder Morgan – Transload Committee CHTR and SAIT Transport Canada

Rail Safety Program Railway Administrator / Director Dangerous Goods, Rail Safety and 511 Alberta 1 Chief of Dangerous Goods and 7 Inspectors located in various parts of Alberta, may inspect rail facilities 1 Rail Manager and 2 Rail Safety Officers will inspect provincial railways and conduct audit reviews

Regulatory Jurisdiction CN and CP are federally regulated Railways that do not cross provincial borders are provincially regulated Alberta shortlines follow federal regulations adopted by Alberta, other provincial railways follow provincial legislation which is based on federal regulations

Scope In Alberta there are: 326 Industrial Railways – 135 transload dangerous goods, this includes 3 crude unit train facilities 5 Heritage Railways – historic passenger operations 2 Shortline Railways – 1 that transports crude oil 1 more shortline to be added in 2015

Recent Policy Changes All railways that transport dangerous goods must now have $25 million insurance as the result of Lac Megantic (Coverage will be reviewed) All new dangerous goods transload sites must abide by: Circular 1 - Guideline for the transfer of dangerous goods to or from a railway vehicle Circular 2 -Guideline for the development of security management program for dangerous goods transfers sites Circulars noted were specifically developed for Alberta however, they maybe utilized by other provinces

Enforcement Administrative Penalties We prefer conversation not confrontation; however, there may come a time when enforcement action is required Who – The railway responsible for the contravention What – Any contravention of the Railway (Alberta) Act and Regulations Where – Any railway under Provincial jurisdiction When – Progressive in nature Why – To ensure safe railway operations Administrative Penalty of up to $10,000 per infraction

Directives Issued To Railways Alberta reviews all Federal directives and implements them with modification where required to suit operational considerations for Alberta railways Example – In part, a Federal directive to railways was to “Ensure the directional controls, commonly known as reversers, are removed from any unattended locomotives, preventing them from moving forward or backward, on a main track or sidings” Alberta directed the same when on provincial main track, however, in a secure yard it is not required

Safety Management Systems Are Working Conversations with industry indicates they have a better understanding of what is required to run a safe railway operation (forced to develop) Is considered to be a legacy document Makes good business sense, SMS implement in other company locations outside Alberta No major derailments or injuries since the SMS requirement came into force Measurable by annual audits

SMS Audits A SMS self audit must be performed on the railway operation 6 months after the issuance of the operating approval Self audits must be conducted by an auditor trained to perform railway audits Self audits must be conducted annually Every three years a third party audit must be submitted with the operating renewal application Audits must be conducted utilizing Alberta Transportations audit protocols

What's Ahead The following is being proposed for 2015 Circular 3 – Long term storage guidelines for residue last contained dangerous goods cars Circular 4 – Fugitive emissions and product containment guidelines when transloading dangerous goods to or from a railway vehicle Webinar sessions with stakeholders Insurance coverage review – special provision for small scale operations

Crude Activity

Basic Trans-loader Garden Hose Method – Susceptible to Overfilling – Product Vapors – Employee Exposure – Minimal Spill Containment Weak Point - Relies On Human Shut Down of Pump on Super B

Better Trans-loader Product Metered – Scully Warning / Shut Off System – Vapor Capture Week Point – Relies On Human Shut Down of Pump on Super B

Best Trans-Loader Auto Shut Off – Spill Catchment – Enhanced Grounding – Vapor Capture – Long Term Facility Usually In An Industrial Area

Kinder Morgan - Edmonton