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Trans Mountain Expansion Project Pacific States/British Columbia Oil Spill Task Force Annual Meeting September 25, 2013 Michael Davies, Senior Director.

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Presentation on theme: "Trans Mountain Expansion Project Pacific States/British Columbia Oil Spill Task Force Annual Meeting September 25, 2013 Michael Davies, Senior Director."— Presentation transcript:

1 Trans Mountain Expansion Project Pacific States/British Columbia Oil Spill Task Force Annual Meeting September 25, 2013 Michael Davies, Senior Director Marine Development

2 Proposed Expansion Expand capacity to 890,000 bpd Customer contracts for ~ 700,000 bpd on 15 and 20 year terms Twin remaining 980 km (620 miles) of pipeline Increase pumping capability Increase storage capacity Increase Puget Sound pipeline capacity Add 2 tanker berths Increase in tanker traffic - not tanker size No dredging of 2 nd Narrows as a requirement of this project Trans Mountain Pipeline Current Operations Operating since 1953 Capacity: 300,000 bpd 1150 km (715 miles) between Edmonton and Burnaby Ferndale and Anacortes Transports refined products, heavy and light crude oils including dilbit Last expanded in 2008 2

3 Proposed Expansion Project Scope Three tanker berth faces Partially (85%) laden Aframax –Up to 34 tankers /month –2 crude oil barges /month –1 jet fuel barge (receiving) /month ~14% of current PMV traffic One tanker berth face Partially (85%) laden Aframax –Typically 5 tankers /month –2 crude oil barges /month –1 jet fuel barge (receiving) /month ~3% of PMV traffic 3

4 Trans Mountain Expansion Schedule Regulatory Approvals 2 years Regulatory Approvals 2 years Construction 2 years Construction 2 years 2012201420152016 20132017 Application Preparation 1.5 years Application Preparation 1.5 years Commercial (Tolling) Approvals Start of Operations

5 Project Application Requirements NEB Application must describe effect of the project on the environment including those from normal operations and from accidents and malfunctions: –The potential environmental and socio-economic effects of marine shipping activities that would result from the proposed Project, including the potential effects of accidents or malfunctions that may occur. TERMPOL is a voluntary multi-agency review of the navigation infrastructure and regulation led by Transport Canada. 5


7 Vessel Traffic Analysis Based on 2011 AIS information from Marine Exchange ~ 60 calls to WRMT ~ addn 350 calls at WRMT (Y 2011) 7

8 Established Marine Corridor Transit follows established traffic separation scheme (CCG and USCG) Traffic is monitored by vessel traffic services (CCG and USGC) Aids to navigation maintained by CCG and USCG PMV and Transport Canada rules and regulations in place BC Coast Pilots (certified by Pacific Pilotage Authority) onboard between Victoria and Terminal –2 pilots during loaded transit Tug escort arrangements using tethered tugs during harbor transit (loaded and ballast) –Up to 4 tugs during departure Tethered purpose built escort tug through Haro Straits and Boundary Pass (loaded) 8

9 Product Quality We transport a wide range of products and the terms and conditions for this service are defined in our Tariff 88.Tariff 88 These conditions include product quality limits typical of major pipelines: (a) Reid vapour pressure:103 kPa (b) Sand, dust, gums, sediment, water or other impurities (total in aggregate): 0.5% (c) Receipt Point a temperature: 38ºC (d) Density: 940 kg/m³ (e) Kinematic Viscosity: 350cSt (f) Having any organic chlorides or other compounds with physical or chemical characteristics that may render such Petroleum not readily transportable by the Carrier… Trans Mountain has been transporting diluted bitumen since late 1980s without incident or operational problems due to dilbit properties. 9

10 Recent Dilbit Experiments and Results 10

11 Federal Tanker Safety Expert Panel Panel Three person panel led by Captain Gordon Houston, the former President and CEO of the Port Metro Vancouver. Scope of the Review Evidence-based review and assessment of Canada's Marine Oil Spill Preparedness and Response Regime, as it applies to oil handling facilities and ship-source oil spill preparedness and response. –Regime's current regulated preparedness capacity of 10,000 tonnes –Regime's structure and key components –Regime's coverage 11

12 BCs Five Conditions 1.Successful completion of the environmental review process; 2.World-leading marine oil spill response, prevention and recovery systems; 3.World-leading practices for land oil spill prevention and response; 4.Legal requirements regarding Aboriginal and treaty rights are addressed, and First Nations are provided with the opportunities, information and resources necessary to participate in and benefit from a project; and 5.British Columbia receives a fair share of the fiscal and economic benefits. BC proposing joint plan of action with the federal government that would address: –Limits to liability that ensure sufficient financial resources to properly address any spills; –Increased federal response capacity; –Full adoption of the Unified Command model; –Strengthened federal requirements for the provision and placement of marine response equipment; –Industry-funded terrestrial (land-based) spill co-operative; –Increased capacity within the provincial emergency response program to ensure adequate oversight of industry; and –A Natural Resources Damage Assessment process to provide certainty that a responsible party will address all costs associated with a spill. 12

13 What is changing? Same products Same vessels Same route Increased frequency Expect: Navigation safety enhancements –TERMPOL review Spill response enhancements –TMEP work with WCRMC –Federal tanker safety review –BCs five conditions 13

14 We want to hear from you

15 Celebrating 60 Years

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