INTEGRITY DIGS AND STORAGE CAVERNS

Why do we need Asset Integrity Public and Employee Safety Protection of the Environment Asset Life Maximization Comply with Regulatory Requirements

Regulatory Requirements

National Energy Board Regulates pipelines that cross international or

provincial borders The NEB’s “Onshore Pipeline Regulations” is the

controlling document that defines the program requirements. CSA-Z662-11 is the prescribed Standard applicable

to all NEB regulated pipelines

Regulatory Requirements

Alberta Energy Regulator (AER) Regulates pipelines solely within Alberta provincial boundaries The “Pipeline Act” and “Pipeline Rules” are the governing legislation The AER’s “Directive 077 – Pipelines – Requirements & Reference

Tools” defines the program requirements CSA-Z662-11 is the prescribed Standard applicable to all AER regulated

pipelines

Saskatchewan – Ministry of Economy (MoE) Regulates pipelines solely within Saskatchewan provincial boundaries The “Pipelines Act, 1998” and “Pipeline Regulations, 2000” are the

governing legislation CSA-Z662-11 is the prescribed Standard applicable to all MoE

regulated pipelines

Regulatory Requirements

CSA-Z662-11 – Oil and Gas Pipeline Systems Clause 3.2 – Pipeline System Integrity Management Program

Defines the requirement for Operating Companies to develop and implement integrity management programs

Annex “N” – Guidelines for Pipeline System Integrity Management Programs Compliance to Annex “N” is mandatory for all NEB, AER and MoE

regulated pipelines

Key Activities Dig Programs

ILI Inspection Result investigations / repairs

Pipeline Cut-outs Primarily to address internal corrosion metal loss

Depth-of-Cover Remediation

Line Lowering Crowning

Watercourse Depth of Cover Mitigations HDD Program Line Lowering Bank Erosion Mitigation

• Criteria assessed includes: – Current Depth of Cover – 100 Year Flood Scour Depth – Potential for pipeline exposure and free-spanning – Hydrological conditions (flow rate, flood return periods etc.) – Watercourse geomorphological conditions (bank width, stream bed, etc.)

Suspension & Abandonment

Integrity Pipeline Integrity is a Risk Based Inspection (RBI) Program Inspection activities are forecast based on review and analysis of

inspection and operations data RBI programs are utilized to interpret inspection data and to predict

asset lifecycle Completed risk assessments of – results reported in formal Risk

Matrix (5 x 5) in the Dynamic Risk IRAS Database

Pipeline Inspection / Repair ILI (metal loss, dents, crack detection) ~ 60 ILI’s completed per year

• ILI (MFL) are conducted on a maximum five year frequency for mainline pipelines; laterals are currently on a maximum seven year inspection frequency

What is Pigging?

Types of Pigs and Launchers

Pig Locator

Battery

Data Acquisition system Magnetic module

Pipeline Integrity

Pipeline Integrity

Pipeline Integrity

Caverns and Well Operations

What is a “Cavern

Caverns are classified as either “salt caverns” or “hard rock mined caverns” Caverns are essentially large voids deep

underground that work like storage tanks The large volume provided by Mother Nature

and the (sometimes) minimum surface impact make cavern storage attractive Caverns require the right geology in the right

place

Salt Caverns – How They are Made

Salt Bed Formation

Salt Bed Formation

Salt Bed Formation

Salt Bed Formation

Where are the Salt Beds In Canada?

Salt Cavern Stratigraphy in Alberta

Building a Salt Cavern - Drilling

Building a Salt Cavern - Drilling

Washing out process

New “Washing” Wellhead

The Salt Cavern - Complete and ready for Storage

Salt Cavern

Salt Cavern Storage: Brine Pond

Brine is required for Product Displacement

Hard Rock Cavern Storage

Cavern is mechanically mined out of rock. Normally a “room and pillar” type of mine. Rock is normally other than salt because the

salt does not exist in the necessary location (ie. Along the pipeline right-of-way) or other factors. Rock types are usually non-porous (ex. Chalk,

shale, limestone, dolomite, granite)

Hard Rock Mined Caverns

Granite Cavern

Hard Rock Mined Caverns – The Dome

Minerals

Falls under the Mines and Minerals Act • Special Mineral Leases from the Crown • Freehold Mineral Leases from Freehold owners

Regulatory Requirement - Workover

Every 10 years (or sooner), all storage wells need a workover (CSA Z.341.2): • Pull hanging string (brine tubing) • Run casing inspection logs (corrosion, damage)

Cavern Assets - Definitions • Workover: Process of bringing a

service rig (like a drilling rig) to the well, pulling the hanging casing, running casing and cavern inspection logs and refurbishing wellhead components and putting the well system back together again.

• MIT: Mechanical Integrity Test. Essentially a pressure test to ensure the cavern system can operate to MAOP.

• All Canadian provinces refer to CSA Z341, Storage of Hydrocarbons in Underground Formations

– CSA mandates a workover every 10 years, and a mechanical integrity test (MIT) every 5 years

Maintenance

Ultimate Goal of Maintenance – Release Prevention

Questions?????