1. National Energy Board Office national de l’énergie Pipeline Approvals in the Mackenzie Valley Jann Atkinson Environmental Specialist Applications Unit, National Energy Board 16 October 2001 Calgary

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3. National Energy Board Office national de l’énergie Introduction  The purpose of this presentation is to provide an overview of the National Energy Board pipeline approvals process in the Mackenzie Valley

4. National Energy Board Office national de l’énergie Who are We?  Independent regulatory tribunal - formed 40 years ago under NEB Act to regulate:  construction and operation of inter-provincial and international oil and natural gas pipelines (e.g., Alliance, Foothills pre-build, Norman Wells, TransCanada)  development of oil and gas resources in non-accord frontier areas (Mackenzie Delta, Fort Liard)  some international power lines  the import and export of energy commodities

5. National Energy Board Office national de l’énergie Who are we really?  8 permanent board members, appointed by Cabinet for 7-year terms  Chair - Ken Vollman; Vice Chair - Judith Snider  275 staff, one office  35 economists and financial experts  30 environmental specialists  30 engineers  regulatory officers, project managers, library etc.

6. National Energy Board Office national de l’énergie National Energy Board Act u The NEB regulates the construction and operation of the oil and gas facilities

7. National Energy Board Office national de l’énergie Role in the North  Three aspects to NEB’s job in the North 1) Canada Oil and Gas Operations Act (COGOA) regulation of upstream oil and gas activity in the NWT 2) regulation under the National Energy Board Act (NEB Act) of inter-provincial and international pipelines 3) provision of technical and advisory services upon request in the Yukon

8. National Energy Board Office national de l’énergie COGOA vs. NEB Act Alberta or British Columbia } NEB Act NWT COGOA

11. National Energy Board Office national de l’énergie COGOA authorizations  Geological/Geophysical Operations Authorizations  Authority to Drill a Well  Significant Discovery Declaration  Commercial Discovery Declaration  Development Plan  Construction Authorizations  Production Operations Authorization

12. National Energy Board Office national de l’énergie Help!  Regulatory Roadmaps Project - regulatory approvals processes for oil and gas exploration and production - CAPP  Southern Mackenzie Valley (October 2000)  Inuvialuit Settlement Region (June 2001)  others are in preparation: Gwich’in, Sahtu

13. National Energy Board Office national de l’énergie NEB Act  Order (pipelines < 40 km in length)  Certificate of Public Convenience and Necessity (pipelines 40 + km in length)

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15. National Energy Board Office national de l’énergie Certificate General Phases:  Application  Environmental Assessment Process  Public Hearing Process  Environmental Assessment Decision  Regulatory Decision and Recommendation  Governor-in-Council  Certificate of Public Convenience and Necessity  Detailed Route Hearings  Condition Compliance (pre-construction)  Leave to Open

16. National Energy Board Office national de l’énergie Regulatory Process EA Process

17. National Energy Board Office national de l’énergie Panel Assigned 3 Board Members Guidelines for filing Requirements Application is Filed Project Working Group environment socio-economic engineering financial, etc Is application Complete? No Yes

18. National Energy Board Office national de l’énergie Public Hearings  all proposed pipelines > 40 km in length are subject to a public hearing process  Flexible process

19. National Energy Board Office national de l’énergie Public Hearing Consider a wide range of issues  design and operation  safety  environmental and socio-economic issues  supply, markets, economic feasibility  pipeline tolls and tariffs  effectiveness of public consultation  landowner matters  NEB Act aspects involve consideration of anything in the ‘public interest’ - allows the NEB to focus on issues of key local importance

20. National Energy Board Office national de l’énergie Panel Assigned Public Hearing Process NEB Act Regulatory Decision & Recommendation GIC Certificate Issued by NEB EA Process

21. National Energy Board Office national de l’énergie Public Hearing Hearing Process is Initiated  Notice is Published in the Newspapers, Press Release, Internet  Directions on Procedure -what, when, how to participate etc.  timelines established to identify participants  evidentiary record is ‘built’ - information is filed - information requests and responses

22. National Energy Board Office national de l’énergie Public Hearing Oral Hearings  additional information  questioning  final argument  -----------------------------------------  Held in centres directly affected by a project at times convenient for the public  Flexibility

23. National Energy Board Office national de l’énergie Oral Hearing Concludes and is Adjourned Reasons for Decision Recommendation to GIC ApprovalNot to approve Certificate AcceptReject

24. National Energy Board Office national de l’énergie Construction? Now that you have the certificate, can you construct?  Not quite yet………….  Detailed Route Hearings  Condition Compliance

25. National Energy Board Office national de l’énergie Detailed Route Hearings Opportunity for landowners or other affected parties to comment on:  the detailed route of the pipeline and/or  the method and timing of construction  held in the vicinity of the subject lands  similar hearing procedures apply  different panel of Board Members

26. National Energy Board Office national de l’énergie Condition Compliance Conditions on the Certificate  environmental  manuals (e.g. Environmental Protection Plan, Safety Manual)  detailed mitigation and follow-up plans  design  supply  sunset clause  some must be met prior to construction, others prior to operation etc.

27. National Energy Board Office national de l’énergie Construction Construction Inspection  Environment  Safety  Engineering  Canada Labour Code

28. National Energy Board Office national de l’énergie Leave to Open Prior to placing the pipeline in service  design  safety (including pressure testing)  conditions complied with  environmental commitments

29. National Energy Board Office national de l’énergie Environmental Assessment NEB has EA responsibilities under MVRMA, CEAA and NEB Act  MVRMA - Designated Regulatory Agency - MOU signed with MVEIRB in Dec 2000 to cooperate on EAs - Cameron Hills  CEAA - Responsible Authority - projects south of 60  and in the ISR  NEB Act - matters in the public interest

30. National Energy Board Office national de l’énergie Status - Northern Coordination Preparations  participant in discussions on regulatory and EA coordination in the NWT and Yukon  purpose of coordination is to minimize duplication while respecting land claims legislation, institutions created therein, need for northern participation, and industry’s need for certainty and clarity of process

31. National Energy Board Office national de l’énergie Key Messages - Review Process  NEB is only one of many key organizations with authority to examine impacts and influence conditions around energy development proposals in the North  Coordination with and contributions from Northern agencies will be essential in producing the best decisions  the agencies with a role in energy development in the North will work in partnership to ensure that the process meets local needs and encourages local participation  these agencies will be prepared to deal with the application in a fair and impartial manner in the public interest

32. National Energy Board Office national de l’énergie Questions?