Rail Safety April 7, 2015 Knut Ohm Rail Safety Officer Dangerous Goods, Rail Safety and 511

2

3 326 Industrial Railways 132 Industrial Railways DG transload sites 2 Short Line Railways and 4 Heritage Railways Railway Scene In Alberta

Definition “Industrial railway” means a railway that transports only goods or commodities that are manufactured, refined or otherwise produced, processed or handled by the person who operates the railway or on whose behalf the railway is operated, And is operated wholly or in part within the confines of the industrial site on which goods or commodities are manufactured, refined or otherwise produced, processed or handled, and is not operated for the purpose of transporting goods or commodities for a toll or a fee or of being a common carrier 4

5 Federal or Provincial? A railway is regulated by either a province or federally, not both with the exception when considered to be a local railway company. A railway that crosses a provincial or territorial border is regulated by Transport Canada. Industrial railways, with a siding agreement or that own track, that operate within the borders of the province are regulated by Alberta Transportation by way of the Railway (Alberta) Act.

6 Provincially Regulated Transload Sites 22 crude oil transload sites in operation; 3 loop train in operation Remainder vary in size More may be added in current short line & 1 more planned to be added in 2015 to haul crude Federal Sites – Service Agreements

7 Transportation Safety Services Dangerous Goods 7 Dangerous Goods Inspectors Can inspect transload sites for rail compliance Will inspect for dangerous goods compliance Rail Safety 2 Rail Safety Officers Will inspect all sites for regulatory compliance Will review / verify railway audits

8 Regulatory Requirements Railway (Alberta) Act and Regulations Federal Transportation of Dangerous Goods Act & Regulations Provincial Dangerous Goods Transportation & Handling Act CAN/CGSB – Railway Car Tank Standards Alberta Industrial Railway Regulations – Jan. 01/10

Making Railways Operations Safer In Alberta Railway (Alberta) Act came into force 2003 Training Programs – CHTR & SAIT – 2004 &2005 Contractors Utilized to 2012 Clear Language Regulations – Jan 01, 2010 Safety Management System – Apr 01, 2011 Railway Audit Program - Jun 30, 2013 Circulars and Circular 2 – 2013 Webinars planned for

Circulars Circular 1 Guideline for the transfer of dangerous goods to or from a railway vehicle. (section 7) Circular 2 Guideline for the development of security management program for the transfer of dangerous goods. 10

General Operating Instructions (GOI) Every company is required to submit a GOI for their rail operation as part of the safety management system. The GOI will vary by complexity of the railway operation but must accurately give rail employees proper instruction to allow for a safe railway operations. The GOI must contain railway instructions only; Product transfer and OH&S are not to be included in the GOI. 11

Insurance The Alberta Railway Regulations require The operator of a railway must maintain third party liability insurance of at least $25 million for each occurrence Currently the highest provincial insurance requirement in Canada Saskatchewan proposing $50 million for industrial railways transloading ERAP products, $25 million for non EARP sites but transload a dangerous goods and $10 million for railways that do not transload dangerous goods 12

What Are the Risks? The Director General Transport Canada for Rail once said you can have a 100% safe railway, however, you could never turn a wheel Risks vary by the scope of the railway operation and the commodity being transloaded There is no railway operation that does not have an associated risk Railways must have a risk mitigation strategy 13

Reactive Safety Management Dependent on Corporate culture - Dupont Resources of the company Regulatory knowledge Risk management 14

15

Safety Management System Safety management implies a systematic approach to managing safety, including the necessary organizational structure, accountabilities, policies and procedures. 16

17 Safety Management System All railways under provincial jurisdiction must have a safety management system accepted by Alberta Transportation Operating approvals will not be issued before the safety management system is accepted

Introducing Railway Safety Management System in Alberta No need to add SMS requirement to the Act as it was already in place SMS development – stakeholder consultation Existing SMS reviewed included:  Federal rail & aviation Other provinces rail SMS Prescriptive – over 300 submission expected All railway must have submitted their SMS by April 01, 2011 Must audit their SMS annually 18

19 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

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 is other company locations outside Alberta No major derailments or injuries since the SMS requirement came into force Measurable by annual audits 20

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 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 21

Partnership Outcome is linked to input by the parties involved, Alberta Transportation believes in a collaborative approach – partnerships are invaluable, some examples are; Keyera – Railway Safety Video Kinder Morgan – Transload Committee CHTR and SAIT 22

Leading In Canada Alberta leads the way in Canada and in North America. No Cost Operating Approvals $25 Million Dollars Third Party Liability Insurance Required Regulatory Development Collaboration Safety Management System & GOI Circulars Annual Self Audits and External Every 3 Years 23

24

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

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

27 Best Transloader Auto Shut Off – Spill Catchment – Enhanced Grounding – Vapor Capture – Long Term Facility Usually In An Industrial Area

28 QUESTIONS?