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02U 18-Jun-14 Issued for Use D. Trask K. Tonn H. Farrell K. Tonn 01R 16-Jun-14 Issued for Review D. Trask K. Tonn H. Farrell K. Tonn Rev. Date Reason for Issue Prepared Checked Approved Approved

Title:

Removal of Beach Valve Station Isolation Valve

Assembly (P74-SDV-011) Assessment

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Project Originator Location Type Disc. System No. Rev. This document is the property of EnCana Corporation who will safeguard its rights according to the civil and penal

provisions of the law.

TECHNICAL NOTE

Topic:

Removal of Beach Valve Station Isolation Valve Assembly (P74-SDV-011)

Assessment

Background:

The Deep Panuke gas export pipeline is approximately 175km in length and

comprised of an offshore and onshore section. The offshore and onshore

pipeline sections are approximately 172.3km and 2.7km in length respectively.

The onshore pipeline is located from landfall to the interconnection with the

Maritimes and Northeast Pipeline (M&NP). The pipeline has two onshore

facilities referred to as the Beach Valve Station (BVS) and Gas Export Pipeline

Terminus (GEPT). The BVS is located at landfall and contains a valve (i.e.

P74-SDV-011), which can be opened or closed either remotely via the PFC or locally

by an individual on site. The GEPT is located adjacent to the M&NP facility and

contains a pig receiver and a valve (i.e. P74-SDV-021) which can be opened or

closed either remotely via the PFC or locally by an individual on site. The valves

are opened or closed via a gas over hydraulics actuator. Details of the onshore

pipeline and facilities are located in document DMEN-O22-PD-PR-74-0002

“P&ID – Onshore Pipeline, Beach Valve Station and GEP Terminus” which is

located in Appendix A.

A plan view of the onshore facilities and pipeline right of way locations is located

in Appendix B.

An isometric view of the beach valve station assembly above and below grade

piping is located in Appendix C.

On April 23, 2014, an in-line inspection tool was launched from the offshore

Production Field Center (PFC) with an expected arrival at the gas export pipeline

Digitally signed by David Trask DN: cn=David Trask, o=Encana, ou=Deep Panuke, [email protected], c=CA Date: 2014.06.23 10:06:13 -03'00'

Digitally signed by Karl Tonn DN: cn=Karl Tonn, o=Encana Corp, ou=Deep Panuke, [email protected], c=CA Date: 2014.06.23 12:38:07 -03'00'

Digitally signed by Hugh Farrell DN: cn=Hugh Farrell, o=Encana, ou=Deep Panuke, [email protected], c=CA Date: 2014.06.23 10:15:58 -03'00'

Digitally signed by Karl Tonn DN: cn=Karl Tonn, o=Encana Corp, ou=Deep Panuke, [email protected], c=CA Date: 2014.06.23 10:08:29 -03'00'

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terminus onshore receiver of April 24, 2014. At approximately 10:45 am on April

24, 2014, the inline inspection tool arrived at the beach valve station; however,

the tool did not arrive at the onshore receiver and was subsequently confirmed to

have stopped at the beach valve assembly. The approximate tool location was

determined to be upstream of the first 6-inch tee based upon the receiving the

22Hz transmitter signal from the Wavetrack device located on the inline

inspection tool.

On June 11, 2014, digital radiography was performed on the excavated pipe

section which has confirmed that the inline inspection tool is located upstream of

the first 6-inch tee as illustrated in Appendix D.

Discussion – Inspection Tool Removal Plan

Encana has now concluded that it is highly unlikely that the in-line inspection tool

will become dislodged on its own and is now planning to remove the in-line

inspection tool by performing on-line isolation and cut-out.

The proposed removal plan involves performing line isolation both upstream and

downstream of the beach valve assembly, removing the beach valve assembly

(complete with in-line inspection tool) and re-installing a straight section of

linepipe. The planned steps include the following:

Weld on split tee fittings (both upstream and downstream of beach valve

assembly) rated to the approved pipeline maximum operating pressure

(MOP)

Weld on purge and equalization fittings

Perform hot tap through fittings

Insert double isolation (ie. T.D. Williamson - Stopple Train) both upstream

and downstream of the beach valve assembly

Depressurize and gas free isolated section

Cut and remove the beach valve assembly which includes from a location

upstream of the inline inspection tool and downstream of the second

6-inch tee as illustrated in Appendix E.

Install new straight section of linepipe and oxygen free

Remove isolations (i.e. TDW Stopple Train)

Install completion plugs and blind flange assembly on hot tap locations

The target date for the removal of the beach valve assembly (complete with

in-line inspection tool) is September 2014. Once removed, surplus certified in-linepipe

will be used to reinstate the gas export pipeline.

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Due to required procurement lead times, new valve and extruded headers (tee

section) would be unable to be procured in time to re-install in the line during the

anticipated September 2014 line isolation program.

Since the Deep Panuke gas export pipeline is currently considered “Class 1” in

accordance with CSA Z662-11, the isolation valve at the beach valve station is

not required. A detailed discussion on the requirement of the beach isolation

valve is contained in the next section.

In the event that future development adjacent to the onshore pipeline occurs,

which requires the class of pipeline to be changed to Class 2, the isolation valve

will be reinstated with a similar line isolation methodology. The line isolation

would not require a new hot tap but rather a re-entry would be performed via the

existing hot tap locations.

Discussion – Requirement for Beach Isolation Valve (P74-SDV-011)

The onshore pipeline is located within an industrial park and CSA Z662 (Section

4.3.3, Table 4.1, Note 2) requires that “If it is likely that there will be future

development in the class location assessment area sufficient to increase the

class location designation, consideration shall be given to designing, pressure

testing, operating, and maintaining the pipeline in accordance with the

requirements applicable to the higher class location”.

During the design phase of the onshore pipeline, both a petrochemical and a

LNG import terminal were proposed to be located adjacent to the onshore

pipeline route by Keltic Petrochemical and Maple LNG. As a result, if these

developments were built, the Deep Panuke pipeline would be a Class 2

designation. Thus as these proposed developments were under consideration at

the time of the development application and possibly could be approved, it was

decided to design the onshore pipeline for Class 2 requirements. This would

require a maximum valve spacing of 25km for the onshore pipeline section in

accordance with Table 4.7. As a result, valve P74-SDV-011 was installed at the

landfall location on the assumption that these projects would proceed.

Subsequent to the onshore pipeline design phase, both the Keltic Petrochemical

and Maple LNG import facility projects have been cancelled and no development

has occurred.

As a result, the Deep Panuke pipeline is currently “Class 1” in accordance with

CSA Z662-11, and the isolation valve at the beach valve station is not required

as described in the following sections.

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Regulatory Requirement:

The onshore pipeline section is regulated by the National Energy Board (NEB) in

accordance with the Onshore Pipeline Regulations. The Onshore Pipeline

Regulations (OPR) have no specified requirement for valve locations and

spacing; however, Section 4(1) states that the pipeline is required to be

designed, constructed, operated or abandoned in accordance with CSA Z662.

Section 42 of the NEB Onshore Pipeline Regulations state: “If the class location

of a section of a pipeline changes to a higher designation that has a more

stringent location factor, the company shall, within six months after the change,

submit the proposed plan to deal with the change to the Board.”

(See Appendix F for OPR Section 4(1) and 42).

In addition, a variance of Certificate GC-111 in accordance with Section 21 of the

NEB Act is required in order to remove this valve.

CSA Z662 Requirement:

The Deep Panuke onshore pipeline has been designed, constructed and

installed in accordance with CSA Z662 as per the OPR.

Section 4.4 of CSA Z662 (See Appendix G) provides requirements for isolation

valve location and spacing and states that “Isolating valves shall be installed for

the purpose of isolating the pipeline for maintenance and for response to

operating emergencies”.

The number and spacing of these valves must comply with Table 4.7 or

otherwise can be determined by an engineering assessment. Table 4.7 specifies

the maximum valve spacing based upon the type of pipeline and class location.

The class location is specified in Section 4.3.2; in particular, Table 4.1.

The current type of pipeline and Class location for Deep Panuke is as follows:

Type of Pipeline = Gas

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Note:

The basis for Class 1 is that currently no dwellings, building, outside

occupied areas or industrial installation are located along the onshore pipeline

route.

The onshore pipeline is located within an industrial park and the only nearby

structures present are three (3) wind turbines for which with no persons are

present during normal use.

Thus in accordance with Table 4.7, for a gas pipeline with Class 1 designation,

there is no code requirement with regards to isolation valve locations and

spacing based upon the current development status near the onshore pipeline

route.

Safety Considerations:

Encana has requested that PSRM Services perform a technical review of the

Onshore Safety Concept Analysis and other relevant project documentation to

determine the potential impact to the Project Target Levels of Safety (TLS) from

continued operations based upon current land use in the Goldboro area on the

basis that the beach isolation valve (P74-SDV-011) is removed.

The review concluded that the project remains within acceptable limits for the

Deep Panuke Target Level of Safety, applicable land use risk acceptability

criteria for Goldboro and the industry accepted ALARP range; therefore, no risk

reduction recommendations have been deemed necessary. This technical review

is located in Appendix H.

Discussion – Future Requirement for Isolation Valve (P74-SDV-011)

Since the onshore pipeline is located in an industrial park, there is a potential for

a change to “Class 2” if an industrial installation or building occupied by 20 or

more persons during normal use is situated next to the onshore pipeline as per

CSA Z662 Table 4.1.

Currently, an LNG import terminal is being proposed for the Goldboro industrial

park with the earliest in-service date of 2020. In the event that the LNG export

facility (or any other future facilities) are approved for construction and is situated

next to the onshore pipeline such that it would increase the class location

designation, then the beach isolation valve will be necessary. The existing

isolation valve assembly will be reinstated, with a similar line isolation

methodology. The line isolation would not require a new hot tap but rather a

re-entry via the existing hot tap locations.

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Encana will continue to monitor future developments in the industrial park to

determine if they will result in a class location designation change. In the event

that a change occurs and a beach isolation valve is required, the required

components will be procured and installed.

Conclusions and Recommendations

The Deep Panuke gas export pipeline is currently considered as “Class 1” in

accordance with CSA Z662-11, and thus no beach isolation valve is required. In

addition, a technical review of the onshore Concept Safety Analysis was

performed and concluded that Deep Panuke remains within acceptable limits for

the Target Levels of Safety if the beach isolation valve is removed.

As a result, the plan to remove the beach isolation valve assembly (complete

with inline inspection tool) and replace with an existing certified linepipe section is

considered acceptable. However, a variance of Certificate GC-111 in

accordance with Section 21 of the NEB Act is required in order to remove this

valve.

Encana will continue to monitor the future developments in the industrial park to

determine if they will result in a class location designation change. In the event

that a class location change occurs and a beach isolation valve is required, the

required components will be procured and installed. The isolation valve assembly

would be reinstated with a similar line isolation methodology. The line isolation

would not require a new hot tap but rather a re-entry via the existing hot tap

locations.

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DEEP PANUKE ONSHORE PIPELINE R.O.W. BEACH VALVE STATION GOLDBORO INDUSTRIAL PARK WINDFARM Betty’s Cove Brook SOEP GAS PLANT M&NP METERING FACILITY Encana GAS EXPORT

PIPELINE TERMINUS FACILITY EXXON MOBILE ONSHORE PIPELINE R.O.W. INDUSTRIAL PARK BOUNDARY

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 Page 1 of 7  The below text provides the technical review and support, for the continued operation of the onshore  Deep Panuke facility with the removal of beach valve P74‐SDV‐011. The below review confirms that the  Deep Panuke onshore facility will remain within both the Project Target Levels of Safety and the  applicable land use risk acceptability criteria for Goldboro and the industry accepted ALARP range if the  beach valve is removed and that no risk reduction recommendations have been deemed necessary.   A previous technical review was conducted to confirm that the Deep Panuke facility could operate safely  without a functioning beach valve; that review confirmed that in effect the Projects Target Levels of  Safety were not affected by the functionality of the valve given the occupancy of the surrounding areas.  Introduction  On April 23rd, 2014, an in‐line inspection tool was launched from the PFC and the expected arrival at the  gas export pipeline terminus onshore receiver was April 24th, 2014. The tool did not arrive at the  onshore receiver and was subsequently confirmed to have stopped at the beach valve assembly. Digital  radiography was performed on the excavated pipe section which confirmed that the inline inspection  tool was located just upstream of the first 6” tee.  Previous problems with beach valve P74‐SDV‐011 had already prompted a review of the Deep Panuke  onshore pipeline and functionality of the beach valve actuator and concluded that the function (and  hence presence) of the valve did not affect the Project Target Levels of Safety.   Further it has been proposed that since the Deep Panuke gas export pipeline is currently considered  “Class 1” in accordance with CSA Z662‐11, the isolation valve at the beach valve station is not required  per regulation. As the Class 1 designation is contingent on the absence of adjacent industry, it is  acknowledged that in the event that future development adjacent to the onshore pipeline occurs which  could result in a change in the class of the pipeline, the isolation valve could be reinstated with a similar  line isolation methodology to the removal.  From a safety perspective the prior review which considered the impact on the Project Target Levels of  Safety from an inoperable beach valve P74‐SDV‐011 is very similar to the proposed removal case. As  such, this review will look at the Concept Safety Analysis (DMAE‐X00‐RP‐LC‐90.0001.07R ‐ completed by  ESR Technology, July 2011) and other relevant project documentation to determine the potential impact  to the Project Target Levels of Safety (TLS) from continued operation without the ability to isolate the  gas export pipeline at the beach.  The approach to this technical review is to take a high level look at the data (typical input parameters  which ESR would have used in developing their QRA – leak frequency, isolation, ignition frequency and  type, population/occupancy, hazard range/effect, etc…) which form the basis for the individual risk for  the onshore project to confirm the relative impact which would be seen from removing the isolation  valve and associated assembly at the beach valve location. Note that within the current QRA (Concept 

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 Page 2 of 7  Safety Analysis Section 5 ‐ QUANTITATIVE RISK ASSESSMENT OF ONSHORE RELEASES) there are  numerous conservative assumptions which have now been eliminated (due to other adjacent projects  being cancelled) and a factor of failure (9%) was already placed on this beach valve.  The focus of this review will be the risk to personnel in line with the Concept Safety Analysis identified  hazards and in accordance with the Project TLS and land use criteria. Note that the Concept Safety  Analysis did look at environmental risk as well but during the hazard identification process no high risks  to the environment were identified. Given the noted CSA evaluation of environmental risk and that this  is a natural gas pipeline system with no liquids nor hazardous levels of H2S we have not considered  environmental risk further in this review.   Acceptance Criteria  The Target Levels of Safety (TLS) for the Deep Panuke facilities are defined in the Design Memorandum,  and are summarized in Table 1.      

No.  Description  Target Level of Safety (freq./year) 

  Individual Risk  <1 x 10‐3  Group Risk†† (based on 68 POB)  <1.36 x 10‐3 (≥ 10 fatalities per year)  <2.72 x 10‐4 (≥ 50 fatalities per year)  Environmental Risk   ALARP  Production Facility Impairment  (includes TLS for PFC primary structure, TR  impairment frequency, escape route and  evacuation system)  <1 x 10‐3 Loss of integrity to the installation’s key  safety functions from all major accident events.    <1 x 10‐4 Loss of integrity to the installation’s key  safety functions from any single major accident  events. 

Table 1: Target Levels of Safety 

The onshore facilities at Goldboro are also subject to the Major Industrial Accident Council of Canada  risk acceptability criteria summarized below in Table 2. 

  Individual Specific Risk (ISR) 

Intolerable   > 10‐4 pa 

Grey   10‐6 < ISR < 10‐4 pa 

Insignificant   < 10‐6 pa 

Table 2: Land Use Criteria  Technical Sensitivity Review 

The approach taken in this review is to consider the key components which go into defining the Location  Specific Individual Risk (LSIR) and Individual Risk (IR) values and for each one to consider whether the  beach valve has any bearing on the assessment and if it does to determine to what extent its removal  would affect the contributing risk value. 

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 Page 3 of 7  QRA as being:   Immediate ignition leading to a jet fire   Delayed ignition leading to either a flash fire or a vapour cloud explosion, burning back to a jet  fire.  Our focus is the risk to individuals; as such we are looking at the events which would lead to personnel  being within the hazard envelope of a flash fire or jet fire heat flux with lethal doses (Note: vapor cloud  explosion was considered in the original FEED QRA, this is discounted now and explained below).  When considering the event potential from a QRA perspective we would have three starting cases.  1. Event failure (release frequency) with NO ignition.  2. Event failure (release frequency) with immediate ignition.  3. Event failure (release frequency) with delayed ignition. 

Note that the distance from surrounding facilities to the beach valve is not the main factor with  regards to the risk contours. It is the leak source proximity to the SOEP Gas Plant and M&NP Metering  Facility that dictates the risk contour arrangement. The leak source is considered as the base input to 

the QRA as being an assumed frequency per unit length for the pipeline section and based on part 

counts for the beach valve location and the Terminus (next to the M&NP Metering Facility). As such, 

worst case scenarios (rupture) have been assumed at all points along the onshore pipeline section 

from the beach valve to the Terminus. The greatest risk to the SOEP Gas Plant facility from the Gas 

Export Pipeline (GEP) system would come from the points closest to the SOEP, based on their assumed 

likelihood of failure with consequence radii that could impact the SOEP for small, large and rupture 

cases. This defines the location specific individual risk and the group risk would then need to account  for likelihood of occupancy in that area reaching the levels required to exceed the set group risk  criteria. 

The QRA risk contours are based on small, large and rupture case events. The risk contours take these  entire event cases combined to form the individual risk contours provided within the CSA. If we were  to focus on worst case alone, breaking out the individual risk contour for just the rupture case, this  would mean we consider only a small portion of the contributing risk to personnel and the risk contour 

would reduce. For example, if we look at the risk contours corresponding to the individual risk 

considering just the worst case scenario (rupture), they do not cross the existing SOEP Gas Plant 

boundary at the levels dictated by our Target Levels of Safety for Individual Risk (<1 x 10‐3), and will 

remain compliant with the Land Use Criteria of < 10‐6 pa (per annum) for Individual Specific Risk. 

Group risk has not been considered in the original QRA and ESR CSA update as the pipeline and 

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 Page 4 of 7  As mentioned the area is predominantly unmanned and hence detection and action would normally rely  on the pipeline leak detection system. The CSA assumed that the pipeline leak detection system was  capable of detecting leaks of 2% normal steady flow and greater. Based on the pipeline leak detection  system in place the design QRA also assumed that full ruptures would be detected in 5 minutes, 10%  leaks in 10 minutes, 5% leaks in 25 minutes and 2% leaks in 50 minutes.  As immediate ignition is assumed to occur within 5 minutes and all delayed ignition occurs after 5  minutes, and given that it is considered unlikely that any leak from our system would be detected within  5 minutes, it is assumed that all immediate ignition cases will occur before there would be any remote  or manual attempt to close the beach valve if present. The isolated nature of the location and lack of  human presence in the immediate surrounding areas further supports this assumption. As such, all  immediate ignition cases will happen regardless of whether the beach valve is installed and functioning  or not installed and therefore has no impact on whether the beach valve is provided or not.   In support of the above statement, it has been considered that without isolation the inventory of the  subsea pipeline is greater than the isolated onshore pipeline section and therefore the leak release  conditions will decay much slower than a smaller isolated inventory. However, in our assessment we  consider all factors of risk including likelihood which addresses the occupancy of the area and the 

reaction of personnel, not just the consequence envelope. Additionally for immediate ignition the 

impacted area will be at it’s greatest with the highest pressure, at the start of the release. This is the 

same for both cases whether isolation is achieved or not – in fact this is the same for a period of 5 

minutes in the case of a full rupture which is the time considered by the QRA and CSA for action to be  taken to remotely close the beach valve (10 minutes for leaks of 10% volume and 25 minutes for leaks 

of 5% volume). As we have immediate ignition we are dealing with jet fire cases only and as per the 

QRA and CSA all immediate ignition cases are assumed to occur within 5 minutes. As isolation was not 

considered by the QRA to occur within 5 minutes and considering that all immediate ignition cases 

occur within 5 minutes, the immediate event would be the same regardless of whether the beach 

valve is functional and present or not.  The QRA and CSA assume that jet fire cases will result in 100% 

fatality at 37.5 kW/m2, 50% fatality at 25 kW/m2, 10% fatality at 12.5 kW/m2 and 1% fatality at 9.5 

kW/m2. The only differences in consequence from having an isolating beach valve compared to no 

isolation are that the jet fire exposure area will not reduce as quickly. However, it is important to note  that the consequence envelope will not increase, we do not consider that people will walk into the jet  fire envelope, we have no temporary refuge buildings where we the jet fire could become an issue for  trapped personnel, all areas provide relatively free access for escape of any individual that is in the  area and not affected by the initial immediate ignition jet fire event.   Also note that the QRA and CSA show that immediate ignition events dominate the risk accounting for  78% of the risk profile. As such and as noted the functionality of the beach valve therefore can only have  an impact on the remaining 22% of the risk profile (discussed in the next few paragraphs).  Following on from the above reasoning if there is no ignition, then there is no consequence and no risk.  As such, the only cases where the function of the beach valve could have an impact on our risk levels are  the delayed ignition events. 

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 Page 5 of 7  Explosion events were considered in the FEED and design QRA, these were predominantly associated  with the potential congestion of the Maple LNG Facility.  As neither the Maple LNG Facility nor the Keltic  Petrochemical Facility materialized, the explosion events associated with the locations have no  relevance to the beach valve removal or not. The CSA did consider within the consequence section that  there were potential noted congested areas within the SOEP Gas Plant. The area considered is located at  480 m from the gas export pipeline. The maximum LFL range considered was 550 m for LFL and 834 m  for ½ LFL. The QRA considers that these levels are achieved at a leak flow rate of 5240 kg/s which is the  maximum instantaneous rupture release case seen. This release rate decays rapidly and the predicted  release rate after 2 minutes (un‐isolated as no isolation is assumed to occur before 5 minutes) would  have dropped to 63 kg/s as referenced in the QRA. At this flow rate the release case produces a  maximum LFL range of 78 m and a maximum ½ LFL range of 137 m. The CSA goes on to state in section  5.3.2 that “Since the initial rupture release rate of 5240 kg/s decays very rapidly and would lead to very  pessimistic hazard ranges, it is more reasonable to use the average release rate over the first 2 minutes  (879 kg/s in the case of ruptures) when assessing the “immediate” ignition jet fires, whether isolated or  not. For the delayed ignition cases, the release rate will depend on whether or not the release is isolated.  It is reasonable to consider delayed ignition as taking place after 5 minutes, corresponding to an isolated  rupture release rate of 0.7 kg/s. Later ignition would result in even smaller isolated release rates. In the  case of un‐isolated, delayed ignition rupture releases, we conservatively use the normal operational flow  rate of 74 kg/s, although it is unlikely that normal flow rate could in reality be sustained following a  rupture. For unisolated, delayed ignition large and small leaks, we use the release rate after 2 minutes,  as compared to after 5 minutes for the isolated, delayed ignition leaks.” Based on the above the CSA and  the QRA did not consider the consequence envelope associated with the instantaneous release rate of  5240 kg/s due to the rapid decay and, we assume, inability to sustain the cloud volume. They considered  instead a conservative basis for the consequence modelling input to the risk calculation of un‐isolated  delayed ignition cases as being based on the continuous volumetric flow rate from the platform. This  case would produce an LFL and ½ LFL radii similar to the 63 kg/s case previously noted and are well  outside of the 480 m spacing between the GEP and the SOEP congested areas. As such the CSA and QRA  did not consider within the risk calculations delayed ignition cases which could have reached the SOEP  congested areas.  Given that the Maple LNG Facility along with the Keltic Petrochemical Facility did not materialize and as  the SOEP facility was considered within the QRA as having no potential for vapour cloud explosion (blast  overpressure effects) there are no other congested areas left within the LFL range for the structures  present today (tree’s in the area are routinely cleared). This further reduces the events that could be  affected by the beach valve removal. This also removes the vast majority of the risk associated with the  pipeline failure cases and essentially all of the risks from the beach valve removal as the areas within the  range of hazard envelopes predicted by the consequence modelling are now unmanned and restricted  access. 

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 Page 6 of 7 

The main remaining difference is from an un‐isolated delayed ignition event around the SDV and pig  receiver location where a failure to isolate the beach valve will result in a prolonged release rate higher  than for the isolated case. Hence the hazard envelope will be slightly larger and when we consider the  probability of being exposed to the hazard effect we have a slightly increased area to consider. 

Isolation  Hole Category  Hole Size (m)  Release Rate at Ignition 

(kg/s)  Isolated  Small  0.02  0.0352  Un‐isolated  Small  0.02  0.39  Isolated  Large  0.1  16.2  Un‐isolated  Large  0.1  25.2  Isolated  Rupture  0.541  0.72  Un‐isolated  Rupture  0.541  74.1 

Table 3: Onshore Export Pipeline Release Rates for Delayed Ignition Case 

Based on the above and the QRA assessment consequence data, jet fire hazard ranges to critical heat  flux levels for flow rates of 0.7 kg/s and lower do not generate a lethal heat dose. As such isolation of  the beach valve or no isolation of the beach valve will have no impact to the individual risk from small  release cases and jet fire hazard events. The same applies to the LFL cases and flash fire events for small  leaks. As small leak cases contribute 80% of the leak frequencies overall and 90% for the main SDV and  pig receiver location this finding further reduces the impact that the beach valve has on the target levels  of safety for the onshore facility. Additionally the hazard envelopes for the large hole categories that  equate to the difference in release rate amount to an approximate 20% increase in hazard envelope  size. To be conservative we have factored a 100% increase into our assessment over the contributing  risk from the large cases. Given the significant difference between flow rates for the rupture case we  have considered 100% fatality from the delayed ignition cases – this area is the most noticeable impact  from removal of the beach valve but contributes only a small amount to the overall risk for the facility.  It should also be mentioned now that there are a very small percentage of leaks which would go  undetected and still contribute to the hazard events which would determine the risk for the facility. For  these undetected leaks the provision of a beach valve or not has no impact on the event outcomes (as  with no detection there is no action to close the valve) and hence would not factor into this comparison.  As mentioned above, now that the Maple LNG Facility along with the Keltic Petrochemical Facility have  been cancelled the beach valve area and onshore piping section upto the SDV and pig receiver location  adjacent to the M&NP Custody Transfer Station has effectively no normal personnel activity or presence  and no public exposure (other than intruders for which signage has been posted). As such these two  areas contribute very little to the overall individual risk for the Onshore facility which makes the main  focus the SDV and pig receiver location where personnel attendance may be required and where the  Terminus has its closest proximity to the adjacent M&NP custody transfer station. Further it should be  considered that as a result of removing the beach valve and all associated instrument tubing we would  be decreasing the overall risk associated with leak sources from that location. 

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 Page 7 of 7  would pessimistically change the LSIR (Location Specific Individual Risk) from 6.1 X 10‐6 per year to  approximately 9 X 10‐6 per year. This is an increase in overall location specific individual risk at this  location of over 150% and contains a number of conservative assumptions.   Such a conservative basis would result in an equivalent IR of 1.8 X 10‐7 per year. This level of individual  risk is still well below the widely accepted ALARP level of 1 X 10‐6 per year and would be classified as  “insignificant” in accordance with the Major Industrial Accident Council of Canada land use risk  acceptability criteria. This level also falls well below the Encana Project Individual Risk (IR) Target Level  of safety of <1 x 10‐3.  This sensitivity study is based on very conservative assumptions; a more detailed assessment would  further reduce the difference between the IR levels seen when comparing the effect of removing the  beach valve from the gas export pipeline. This technical review indicates that the removal of the beach  valve will not impact the Project Target Levels of Safety or the more stringent land use criteria.  Yours Sincerely,    Colin Sewell  Managing Director  19th June 2014 

References

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