The Canada Energy Regulator (CER) has released full details of an Administrative Monetary Penalty (AMP) issued to Minell Pipeline Ltd. The amount of the penalty is $52,000.
The penalty stems from an investigation into a pipeline rupture on October 5, 2021, near McAuley, Manitoba. A farmer ruptured a natural gas pipeline while operating a tractor to conduct activities in an agricultural field. The pipeline did not have adequate soil coverage, creating a serious safety hazard.
The investigation revealed that Minell Pipeline Ltd. failed to do the following, including on the day of the pipeline rupture:
- identify locations where the operation of vehicles or mobile equipment across the Minell Pipeline for agricultural purposes could impair the pipeline’s safety or security (section 7 of the Canadian Energy Regulator Damage Prevention Regulations, Obligations of Pipeline Companies (DPR-O); and
- notify landowners of these specific locations (section 7 of the Canadian Energy Regulator Damage Prevention Regulations, Obligations of Pipeline Companies (DPR-O);
Background Information
- CER Inspection Officers were deployed to the site immediately following the pipeline rupture and issued Inspection Officer Order No. MEL-001-2021 to Minell Pipeline Ltd.
- This order required the company to immediately conduct a depth of cover survey along the entire pipeline right-of-way. They were also required to notify any landowners or other affected parties of either adequate or inadequate depth of cover after the survey was completed.
- The CER also conducted several compliance oversight activities following the incident.
- The CER required Minell Pipeline to review its process for managing depth of cover surveys, landowner notification and safety material provided to landowners.
- The company will also conduct more frequent depth of cover surveys, revise their current survey processes, update their public awareness materials for landowners and develop an annual right-of-way monitoring program.
- The CER issued a Safety Advisory on the depth of cover in agricultural areas in April 2022 to remind regulated companies of the importance of having sufficient soil coverage over pipelines.
Quick Facts
- Safety is always our top priority, including the safety of the public, Indigenous Peoples, workers and CER staff. Protection of the environment is also part of our commitment to safety.
- The CER’s job is to ensure companies follow the rules and address issues before they become a problem. This is done through inspections, audits and other compliance verification activities.
- The CER can issue a penalty when a company or person does not follow the rules meant to protect people or the environment.
- Penalties may be used when harm is caused and/or likely to occur because of the violation, and/or to prevent similar events from happening again.
- The CER is transparent when it issues a penalty, so Canadians are confident that action is taken when needed, and so all regulated companies can benefit from the learnings and experiences of others.
- The CER’s AMP regulations outline how penalty amounts are calculated.
- An AMP is only one tool in the CER’s enforcement toolkit. Other enforcement tools the CER can use include: o notices of non-compliance
- inspection officer orders
- warning letters
- taking away a company’s authorization to build and operate a pipeline.
Link to the Administrative Monetary Penalty details: AMP-001-2023