woodfibre liquefied natural gas staff advisory committee report

WOODFIBRE LIQUEFIED NATURAL GAS STAFF ADVISORY

COMMITTEE REPORT

September 16, 2014

INTERIM COMMITTEE REPORT

• 2013 WLNG initiated a project to export LNG from Woodfibre pulp mill site.

• Project would export 2.1 million tonnes of LNG annually• Natural gas transported to the facility via existing and expanded

FortisBC pipeline• Pipeline from Coquitlam to a new Compressor Station in Squamish• DoS has the opportunity to provide direction to the Province

through the Environmental Assessment (EA) process. • Staff formed an advisory committee of community representatives

to review technical information • This INTERIM report summarizes information to date.

INTERIM COMMITTEE REPORT

• Committee created to objectively assess the project • Provide input to proponent and District.

• Committee’s mandate twofold• Provide input to inform the District’s response to the EA

review phase• Feedback to proponent on technical matters to mitigate

impacts or enhance the project• Information gathered guide the review of the EA report so

Council can provide informed comment and effectively influence the Provincial decision on the EA process at the time of the review.

COMMITTEE MEMBERS

• Antony Blaikie Member at Large• Sean Carron Member at Large• Linda Kelly-Smith Squamish CAN• Karine Le Du Member at Large• Rod MacLeod DOS• Chris Pettingill Squamish Chamber of Commerce• Doug Race, District of Squamish Councillor (ex officio representative)• Jen Reilly Member at Large• Glenn Stainton Member at Large• Donna Wall Tourism Squamish• Sara Van Mulligen Member at Large

TECHNICAL PRESENTATIONSCLEAN ENERGY CANADA

• How does electric LNG in Squamish compare with alternative power supplies?• Electric drives powered by renewable electricity reduce GHG from wellhead to waterline

by 30%

TECHNICAL PRESENTATIONSWFLNG

Estimated annual emissions in tonnes:Electric Drive Gas Drive GHG 80,000 450,000

NOx 20 310 SOx 17 17

Advantages:• Cleaner with less air emissions • Amongst LNG facilities with lowest GHG in the

world• Requires less down time for planned

maintenance• Reduces need for flaring

TECHNICAL PRESENTATIONSKEY FINDINGS

CLEAN ENERGY CANADA• The Cleanest Scenario is Snohvit Facility in Norway & Gorgon

in Australia• Projects use natural gas for power & use carbon capture and

storage• Both close to where gas is produced • Don’t have to pipe gas far & share equipment to process gas.

WFLNG• BC Hydro has a plan for electricity in terms of demand. • Will not require new dams to be built. • BC Hydro have 340 megawatts capacity for LNG projects in

integrated resource plan.• Flare is designed for emergency purposes only [alleviate

pressure] and will not be continuously lit. • Seawater cooling the maximum change in water temperature

is 1 degree.

TECHNICAL PRESENTATIONSFUTURE CONSIDERATIONS

CLEAN ENERGY CANADA• Clean Air references summarized in the World Energy Outlook published by

the International Energy Agency. • Organization models future energy use under different greenhouse gas

emission policiesWFLNG

• BC water quality guidelines are being updated• Federal air quality objectives are being updated to be one of the most

stringent in the world• Federal government moving towards the World Health Standards for air.• WFLNG to use World Health Standards

TECHNICAL PRESENTATIONSHOWARD CANDELET, MARINE SAFETY CONSULTANT

• 40 years + never been a major shipping incident involving loss of LNG• Special tugs designed for this type of operation• Local Pilots trained on Simulators for this specific operation• Passage plan discussed with the Master and the Pilot at the start of each transit• Every LNG ship is checked for correct mooring configuration to match the jetty

design• All loading operations have duplicated automatic safety shut down control

systems• The Society of International Gas Tanker and Terminal Operators (SIGTTO) • issues out recommendations of accepted best practice guidelines• Oil Companies International Marine Forum (OCIMF) • Mission foremost authority on the safe and environmentally responsible

operation of oil tankers, terminals and offshore support vessels• The SIRE Program is a unique tanker risk assessment tool of value to charterers,

ship operators, terminal operators and government bodies concerned with ship safety.

• Provides for the independent inspection of all LNG ships• The detailed inspections take place at least every 12 months in many cases every

6 months• The results of the inspections are posted on a members webpage

http://www.ocimf.com/SIRE/Introduction

TECHNICAL PRESENTATIONSHOWARD CANDELET, MARINE SAFETY CONSULTANT

Sandia Studyhttp://energy.gov/sites/prod/files/2013/03/f0/DOE_LNG_Safety_Research_Report_To_Congre.pdf• Commissioned by the US government about public concerns about the location of

proposed new LNG terminals• One of the tests was to confirm how LNG behaves when spilt onto water.

Spadeadam vapor cloud testinghttp://www.dnv.com/industry/oil_gas/services_and_solutions/technical_advisory/

technology_qualification/spadeadam_test_site/http://www.gl-group.com/pdf/Large_Scale_Hazards_Testing.pdf• To undertake vapor cloud experiments to determine if it is possible to get Natural Gas

to explode in a vapor cloud.• The results were as expected. It is not possible for natural gas in an unconfined space

to explode

http://energy.gov/sites/prod/files/2013/03/f0/DOE_LNG_Safety_Research_Report_To_Congre.pdf

http://energy.gov/sites/prod/files/2013/03/f0/DOE_LNG_Safety_Research_Report_To_Congre.pdf

http://www.gl-group.com/pdf/Large_Scale_Hazards_Testing.pdf

TECHNICAL PRESENTATIONSWoodfibre LNG

International regulations for LNG carriers• International Maritime Organization (IMO) specialized agency with responsibility for: • Safety and security of shipping: SOLAS • Prevention of marine pollution: MARPOL • International Gas Code (IGC) for Ships Carrying Liquefied Gases in Bulk• Classification Society rules and requirements cover Design, Construction, and Operation against SOLAS

and MARPOL • Port State control through Transport Canada

Canadian shipping regulations • Canada Shipping Act regulates domestic and international vessels operating in Canadian waters

– The regulator for shipping in Canada is Transport Canada– All vessels transiting will meet the Canada Shipping Act requirements

Transport Canada - TERMPOL Process• Woodfibre LNG will complete a voluntary Transport Canada Technical Review Process of Marine

Terminal Systems and Transshipment Sites (TERMPOL) for the project• Program managed by Transport Canada and a committee of select government agencies and interested

bodies e.g., BC Coast Pilots • Process takes approximately 6 – 12 months to complete• Recommendations to improve safety and minimize risk are adopted into the project• Detailed safety procedures and emergency response plans are developed

TECHNICAL PRESENTATIONSWoodfibre LNG

LNG carrier design – features• Capacity is about 160,000m3 - highly sophisticated cost excess of $200M • High levels of redundancy : Propulsion, Electrical, Cargo handling systems• Transfer of cargo - highly specialized loading arms - completed in about 20 hrs.• Ship to shore link – three (3) independent systems integrate safety systems -

Quick shutoff• Quick disconnect to enable the vessel to depart the berth in an emergency• Integrated Automation System ensures extensive alarm & monitoring systems • Firefighting capability onboard the vessel and on the terminal • Natural gas will be the primary fuel of LNG carriers in Howe Sound• Using natural gas instead of diesel to fuel LNG carriers reduces GHG emissions

by about 25%


• No such thing as a 3 km exclusion zone. • Tethered means tug has a line on the ship for safety if loss of power• # tugs analysis done on wind, conditions, vessel size, how they

maneuver and tugs available. • Procedure is vessels come into unload or load, the connect cables have

shutdown systems and on every occasion the valves are checked electronically.

• Isolated shutdown valves operate on either side of a hydraulic coupling in case of emergency - valve can separate in about two seconds.


• Characteristic of LNG spill is that it freezes and creates an ice layer in the area that it spills on.

• On water it would create an ice layer that would isolate LNG from the water below.

• Sandia Report found that the size of fireball would be limited by the amount of gas that can be vaporized and the amount of oxygen it can draw in.

• Sandia confirmed there is a natural limit to vaporization fireball would be 4x the size of the fire diameter.

• This means that a 100 feet flame diameter would have a 400-foot fireball.


• Cold ironing technology not currently part of LNG shipping at this time would need to be tested before implementation.

• TERMPOL is voluntary process some of these voluntary processes could be built into the environmental assessment conditions via EAO or Transport Canada.

• International regulations do not cover local wildlife and acoustics local standards look at these issues and internationally they vary from country to country. These are looked at in the environmental assessment process and the Transport Canada TERMPOL process.

• Questions from other processes are: • How much noise will the plant make?• Will I hear this plant at night?• What is lighting level going to be at night?• How long will the ships remain in station? • How many people are going to be employed ? • How many people are going to be imported in and take the jobs?

TECHNICAL PRESENTATIONSTRANSPORT CANADA

Regulating Marine Shipping International frameworkThe International Maritime Organization establishes conventions for:

• Safety (SOLAS) – how a vessel is built & its equipment• Pollution (MARPOL) – pollution equipment and limits on discharges• Mariner qualifications (STCW) – how a vessel’s crew is trained• Port State Control – Foreign vessel inspections and information-sharing conducted

under international MOUs

Domestic framework In Canada, marine shipping is the exclusive jurisdiction of the federal government.• Canada Shipping Act, 2001 (CSA, 2001) legislation governing safety of marine

transportation and protection of the marine environment applies to all vessels operating in Canadian waters and to Canadian vessels worldwide.

• No permits or approvals are required under the CSA, 2001 for ships to transit in Canadian waters, provided they comply with the Act.


LNG Spills: Current and Future• Emergency Management Act brings - Coast Guard, Environment

Canada, Public Safety Canada & RCMP• Measures include evacuation, fire response and air quality

monitoring• Transport Canada appointed panel making recommendations for

a Hazardous and Noxious Substances (HNS) preparedness and response regime in Canada. HNS includes LNG. Report due Fall 2014.

• Under proposed legislation, polluters pay based on a two-tier model from the HNS Convention


LIABILITY

Tier 1 – Ship owners' LiabilityShip-owner is first strictly liable for all costs, which is backed by

compulsory insurance.Tier 2 – International Fund

Pays compensation post-incident by cargo owners once ship owners' liability is exhausted - Contributions by industry


Technical Review Process of Marine Terminal Systems and Transshipment Sites (TERMPOL)• Established 1977 by Transport CND, Fisheries & Oceans CND, Environment CND and Public

Works. Updated in 2001 currently being updated• For bulk oil, chemical, LNG and others identified by Transport Canada.

Purpose of TERMPOL• Focuses on technical aspects of marine safety• Vessel characteristics• Routes in Canadian waters to the berth• Cargo transfer operations• Examines how marine transportation project proposals can be carried out safely• Identifies opportunities for improvement of a project proposal enhance marine safety.• Voluntary, initiated by proponent• Proponent conducts studies for review by federal departments with regulatory responsibilities,

typically TC, CCG, PPA, EC• The final TERMPOL report provides feedback to a proponent and regulatory authorities• No approvals or permits are issued; recommendations are not mandatory or binding• Canada Shipping Act 2001 requirements continue to apply


• Exclusion zones are in very narrow channels or harbors.• Exclusion zones are nota huge area rest of the world usually 50 meters either

side of the vessel and 500 meters in front.

• TC use Collision regulations, if there is enough room for the tanker to maneuver safely then that is what the preference is.

• Howe Sound and Georgia Strait are open areas. • Speed limits will be determined through TERMPOL. • Best practice in terms of speed is that wash and wake must not

cause damage anywhere. • In the event of an LNG crash Coast Guard is the Federal On-Scene

Commander


• Vessels must meet International Maritime Organization’s (IMO) International Ship and Port Facility Security Code (ISPS Code)

• Comprehensive measures to enhance the security of ships and port facilities• Response to perceived threats in the wake of the 9/11 attacks in the United

States• TC targets all foreign vessels arriving in Canadian waters for a security

inspection.• All vessels over 350 gross tons by law must have a pilot

and all vessels foreign flagged and foreign crews must have a pilot by law.


• No plans to conduct a Marine Aids Review in the Howe Sound Area• Reviews triggered by request for services or volume of traffic or size of vessel

transiting the area changes. • Major projects subject to environmental reviews & studied through TERMPOL

process have trigged reviews.• TERMPOL only looks at the transfer of cargo, and how that can be done safely. • Siting alternatives would be considered under the environmental assessment.• There is not a preparedness and response regime yet for an LNG spill• Three-member panel was appointed to make recommendations for establishing

such a regime.

TECHNICAL PRESENTATIONSPACIFIC PILOTAGE AUTHORITY

Federal Crown Corporation established in 1972 Pursuant to the Pilotage Act Mandate

• Operate an efficient pilotage service in the interest of safety Mission

• The PP Authority dedicated to providing safe, efficient pilotage to protect the interests of CND Pilots provide captain, bridge with expert local knowledge responsible to the master for safe navigation of the vessel. Every ship over 350 gross tons that is not a pleasure craft & pleasure craft over 500 gross tons is subject to compulsory pilotage. This service is legislated and provides the following benefits:

• A country’s insurance against marine disaster • Expert local knowledge + Enhances the bridge team + Adds another level of safety on the bridge • Risk Managers + knowledgeable resource when the unexpected occurs • Excellent safety record at 99.96% • There has never been an oil spill from a tanker under pilotage on the West Coast • Simulations, both fast time and real time • Tethered tugs • Standard Operational Procedures for energy vessels LNG vessels and VLCCs will require senior

(unrestricted) pilots + Takes 6 to 7 years before a pilot is unrestricted

TECHNICAL PRESENTATIONSCANADIAN COAST GUARD

The CCG’s legislated mandate is set out in the Oceans Act and the Canada Shipping Act. In addition, there are specific responsibilities for pollution response in the Arctic set out in the Arctic Waters Pollution Protection Act. Specific program activities include: • Marine Navigation (Aids to Navigation Services, Icebreaking Services, and Waterways

Management Services) • Marine Communications and Traffic Services (MCTS) • Search and Rescue (SAR) • Environmental Response (ER) • Provide vessels and helicopters to enable fisheries enforcement activities, and the on-water

science research for Fisheries and Oceans and other science departments; and • Support maritime security activities • Support the mandate of other government departments: EC, CBSA, RCMP, NRCan, etc. • Aids to Navigation

TECHNICAL PRESENTATIONSCANADIAN COAST GUARD

Environmental Response:• CCG lead federal agency to ensure response to ship sourced pollution in Canadian

waters• Objectives of the Environmental Response Program are to minimize the environmental,

economic, and public safety impacts of marine pollution incidents, including ship-source oil and chemical spills.

• 15 trained responders with specialized training in spill management• International agreements for mutual aid (US, Denmark, and Arctic Council states)• Marine Communications and Traffic Services provides distress and safety

communications, conducts vessel screenings, regulates vessel traffic movement and provides information systems and public correspondence on a 24/7 basis

• Delivered through a network of 5 centers and supporting remote sites (radio towers, radar sites, etc.) including the Cooperative Vessel Traffic Services (CVTS) providing efficient traffic management between Canada and the US

TECHNICAL PRESENTATIONSBC ENVIRONMENTAL ASSESSMENT

Purpose of Environmental Assessment• Identify & evaluate potential effects of a project, including cumulative effects• Identify ways to avoid or mitigate adverse effects


• Pre-Application Stage Understanding Project, Identifying & Collecting Information

• Project description and scope of the EA• Working Group initiated• Valued components identified• Application Information Requirements developed• Public consultation and First Nations consultation initiated


Application Review Stage Analyses, Conclusions & Recommendations• Proponent submits Application, including:• Baseline information• Expected impacts of proposed project• Commitments to avoid or minimize impacts• Public comment period• Technical review by government agencies and First Nations• Assessment Report prepared by EAO• Recommendations to provincial and federal Ministers

Decision by MinistersTwo Provincial Ministers make decisions:

• Minister of Environment• Minister of Natural Gas Development

Federal Minister of Environment makes decisionProject requires approval from BOTH provincial and federal Ministers to proceed


• BCEAO 900 pages of public comments . • EAO consider every comment . • The proponent must consider each comment. • EAO review’s the proponent’s responses.

• Disagreement between government agency in EA working group and an expert working on behalf of the public. • A difference raises a flag the EAO follows up may bring in other experts to evaluate the

information. • EAO included cumulative effects in assessment methodology based on the Canadian

Environmental Assessment guidelines• The LNG Facility Regulation requires that applicant use the Canadian Standard (CSA Z276) for

siting an LNG facility. • If an applicant wishes to apply an alternative standard, regulations requires that a quantitative

risk assessment demonstrate that the proposed design is as safe as or safer than one designed using CSA Z276.


• Ministers must consider the EAO Assessment Report. • Key factor ministers consider is if Province has satisfied its legal duty to consult with and, to the

extent appropriate, accommodate First Nations. • When they make their decision they provide a rationale for that decision. • The Oil and Gas Activities Act (OGAA) Section 41 specifies a permit holder of a well site, test hole,

or production facility may apply for a Certificate of Restoration (CoR) upon cancellation or termination of the permit.

• In order for an operator to obtain a CoR, all equipment must be removed from the site and all land affected by any oil and gas activities must be restored.

• Section 7 of the Liquefied Natural Gas Facility Regulation specifies site restoration after construction.

• Section 21 Liquefied Natural Gas Facility Regulation specifies site restoration after operations cease at LNG Facility.

• Section 23 of the Liquefied Natural Gas Facility Regulation section 23 An LNG facility permit holder must maintain records of any spillage and any damage or malfunction likely to cause spillage that could be a risk to public safety or the environment.

TECHNICAL PRESENTATION BC OIL & GAS COMMISSION

Pure regulator of oil and gas activities Primary authority through the Oil and Gas Activities Act

Key Features• Prohibits the carrying out of an oil and gas activity unless a permit issued• Applies to Crown and private land does not deal with compensation• Authorizes the OGC instead of the usual agency to issue authorizations under

specified enactments for “related activities”• Oil and Gas activities include all obligations through the life of the activity

including final reclamation and remediation


OIL & GAS COMMISSION ADMINISTERS OVER A DOZEN ACTS OR REGULATIONS1. Oil and Gas Activities Act2. Petroleum and Natural Gas Act3. Environmental Management Act4. Consultation and Notification Regulation5. Oil and Gas Road Regulation6. Drilling and Production Regulation7. Geophysical Exploration Regulation8. Fee, Levy and Security Regulation9. Prescribed Roads Regulation10. Oil and Gas Waste Regulation11. Service Regulation12. Pipeline Crossings Regulation13. Environmental Protection and Management Regulation


Liquefied Natural Gas Facility Regulation (LNGFR) enacted under the authority of Section 111(2) of the Oil and Gas Activities Act

Technical regulation with requirements relating to:• Permit application process• Engineering design• Hazard analysis• Safety & loss management• Risk assessment• Emergency response• Flaring & venting limits• Noise & light control


Regulating LNG Facility Safety BC Oil & Gas Commission

• Facility permitting• Design, construction, operation, & decommissioning of LNG facilities to

protect public safety and conserve the environmentBC Safety Authority

• Design, construction and operation of certain individual components of the facility (e.g. pressure vessels, electrical installations)

• Defines certain worker qualifications (e.g. power steam engineers, electrical, pressure welders)

WorkSafe BC• Worker safety

Transport Canada• Transport of LNG, including LNG carriers

TECHNICAL PRESENTATION KEY FINDINGS

• OGC work with the BCEAO is reconciling the different responsibilities. • BCEAO has the final say on compliance in proponents certificate and OGC have say on compliances to permits. • Guidelines require flaring be minimized. • Requirements for lighting focus on reduce impact of lighting while ensuring safety through the use of shielding

and directed lighting. • In terms of noise they apply at the receiving part of the noise. The decibel level requirements vary between day

and night. OGC looks at DBA and Environmental Assessment looks at noise impacts for marine life etc. • Any natural gas could create a vapor cloud. There are two pieces, there are risks associated with natural gas

coming into the facility and LNG loading. • There are mitigation and safety measures that deal with risk. In the case of a spill some will evaporate, but

there is a risk of ignition, if LNG pools and there is an ignition source. It is relatively appropriate to say there is minimal risk.

TECHNICAL PRESENTATION FUTURE CONCIDERATIONS

OGC• Third party validation is during construction for components or facilities being

constructed offshore . • Many of the floating LNG facilities are built in shipyards in Korea. Understand standards

but not CSA so there is a need for provisions to bring in alternative standards. Class standard organizations like Lloyds are used.

• Substitution is an objective process that is numbers based. The criteria they use to guide substitution are standard or better.

• We have an FN curve (frequency of fatality versus probability) that we use in the regulations.

• OGC authority does not extend to greenhouse gas emissions authority under the Act to deal with emissions that are pollution or waste discharges.

WFLNG• Set up noise receptors at Darrell Bay and Britannia as they are closest residences. • Climate action secretariat requires anyone that produces more than 10,000 tons of

greenhouse gas emissions a year to report.

Thank you!

woodfibre liquefied natural gas staff advisory committee report

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