Friday, June 15, 2012

Editorial: No more Mr. Nice Guy

 This is a photograph supplied by Plains Midstream Canada showing oil in a marsh caused by a major pipeline leak in northwestern Alberta. About 28,000 barrels of oil were spilled in the Rainbow pipeline, which was discovered April 29, 2011. Crews are hoping to contain oil from another pipeline spill in west-central Alberta at a dam upstream from the City of Red Deer.
Photograph by: Courtesy, Plains Midstream Canada


No more Mr. Nice Guy

Regulators need to be more demanding of pipeline operators

Editorial
Calgary Herald
Published: Thursday, June 14, 2012

In the typical Alberta fashion of voluntary compliance, the province's energy regulator asked pipeline operators this week to monitor pipes that cross flood-prone rivers and streams. The Energy Resources Conservation Board, in its June 12 bulletin, said that "all licensees with pipelines crossing water bodies are expected to immediately apply extra operational diligence by inspecting pipeline water crossings in areas currently experiencing, or that have experienced, high flows." Operators were also "encouraged to isolate and purge pipelines where they may be at risk."

The directive came almost a week after thousands of barrels of sour crude oil spilled into the flood-swollen Red Deer River system. According to the ERCB, high stream flows and flooding have the potential to rapidly scour and wash out pipeline crossings of creeks, streams and rivers.

The ERCB bulletin was firm, but not everyone was impressed by the regulator merely encouraging pipeline operators to be diligent.

"They're begging industry to do what they are supposed to be doing, and the ERCB is not showing any leadership whatsoever," said Joe Anglin, energy critic and Wildrose MLA for Rimbey-Rocky Mountain House-Sundre, where the recent pipeline leak occurred. "What they should be doing is . . . giving companies directives to inspect water crossings and report back."

With nearly 400,000 kilometres of oil and gas pipelines in Alberta, it's understandable that inspecting every stream crossing is a herculean task. But with Alberta's oilsands and energy development increasingly under attack, and opposition mounting to the Northern Gateway and Keystone XL pipelines, the province's image and reputation are not helped by merely "encouraging" operators to be more diligent.

Premier Alison Redford deserves kudos for promptly holding a press conference at the site of last week's spill, but her remarks were a bit puzzling. "We are fortunate in this province that they don't happen very often," Redford said of pipeline spills.

Actually, they happen at a rate that may be unacceptable. In its 2010 field surveillance report, the ERCB recorded 668 pipeline failures across the province. Discounting the 137 that were water pipelines, that still leaves 531 leaks of oil, natural gas and sour gas. The good news, if one can call it that, was that this amounted to a record-low pipeline failure rate of 1.7 per 1,000 kilometres of pipeline.

Alberta has a strong regulatory framework and a first-class cleanup response system. In 2009, ERCB staff carried out a record 25,373 field inspections and audits. Yet last week's spill affects Gleniffer Lake, a popular fishing and boating spot and a water reservoir for nearby residents. At the very least, Alberta regulators must flex more muscle and mandate - not simply encourage - regular inspections around key water systems, especially during high water flow runoff periods.

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