Presentation to the NEB Modernization Expert Panel March

Presentation to the NEB Modernization Expert Panel March 7, 2017 Edmonton, Alberta

Agenda • Overview of CSA Group • Relationship with the NEB • Key issues • Recommendations 2

Overview of CSA Group • Established in 1919 • Headquartered in Canada • Accredited in Canada & U. S. • Private, not-for-profit • Membership-based • 1, 900 employees • 39 offices in 15 countries • 35, 000 customers Standards Development - Petroleum & Natural Gas - Electrical & Gas - Construction & Infrastructure - Power Generation & Delivery - Public & Workplace Safety - Health Care - Environment - Business Excellence Testing, Inspection & Certification - Home & Commercial - Industrial - Health Care - Specialized Markets & Technologies 3

CSA Group Strategic Steering Committee (Petroleum & Natural Gas Industry Pipeline Systems & Materials) NEW in 2017! Pipeline Safety Metrics (with NEB representation) Responsible for: • • • 10 Technical Committees 10 Technical Sub-Committees Suite of 18 standards with two (2) under development 4

CSA Group’s relationship with the NEB • Two (2) NEB officials are members of the Strategic Steering Committee • CSA Group standard Z 662 -15 Oil & Gas Pipeline Systems: - One (1) official is a member of the Technical Committee and Executive Committee - A number of NEB officials sit on the following Technical Sub-Committees: Coatings Construction Design Materials Operations & Systems Integrity Management Systems 5

CSA Group’s relationship with the NEB (cont’d) • NEB officials also sit on the Technical Committees and Technical Sub Committees for the following standards: - Security Management for Petroleum & Natural Gas Industry Systems (Chair) - Damage Prevention for the Protection of Underground Infrastructure - Flaring, Venting & Fugitive Emissions (Vice-Chair) - Land Use Planning for Pipelines - Emergency Preparedness & Response for Petroleum & Natural Gas Industry Systems (Vice-Chair) - Reduction of Fugitive Emissions for Upstream Petroleum & Natural Gas Industry Systems (Vice-Chair) - Design, Construction & Installation of Offshore Structures - SMC/TC Materials, Equipment & Offshore Structures for Petroleum, Petrochemical & Natural Gas Industry Systems - Occupational Diving & Hyperbaric Environments - Boilers & Pressure Vessels - Mechanical Refrigeration Code • NEB officials also sit on the Strategic Steering Committees for Offshore Structures and Natural Resources 6

CSA Group standards referenced by the NEB • Z 246. 1 Security Management for the Petroleum & Natural Gas Industry Systems • Z 276 Liquefied Natural Gas (LNG) -- Production, Storage & Handling • Z 341 Storage of Hydrocarbons in Underground Formations • Z 662 Oil & Gas Pipeline Systems. This standard also references the following: i. Z 245. 1 Steel Pipe ii. Z 245. 6 Coiled Aluminum Line Pipe & Accessories iii. Z 245. 11 Steel Fittings iv. Z 245. 12 Steel Flanges v. Z 245. 15 Steel Valves vi. Z 245. 20 Series which comprises: a. Z 245. 20 Plant-Applied External Fusion Bond Epoxy Coating for Steel Pipe b. Z 245. 21 Plant-Applied External Polyethylene Coating for Steel Pipe c. Z 245. 22 Plant-Applied External Polyurethane Foam Insulating Coating for Steel Pipe vii. Z 245. 30 Field-Applied External Coatings for Steel Pipeline Systems 7

CSA Group standards under consideration by NEB • Z 246. 2 Emergency Preparedness & Response (considering for adoption) • Z 247 Damage Prevention for the Protection of Underground Infrastructure (being considered for guideline) • Z 620. 1 Reduction of Fugitive Emissions for Upstream Petroleum & Natural Gas Industry Systems • Z 663 Land Use Planning for Pipelines • Z 260 Pipeline Safety Metrics 8

Key issues “Canada’s pipeline sector has entered a period of increased activity and scrutiny…” “…public attention to pipeline projects has increased…” “There has also been an increase interest on issues such as climate change, greenhouse gas emissions, cumulative environmental effects, and the effects of pipelines on Aboriginal groups. ” “Pipelines require ongoing surveillance and maintenance to ensure that they continue to operate safely…” Source: “Report 2: Oversight of Federally Regulated Pipelines” Fall 2015 Reports of the Commissioner of the Environment and Sustainable Development Office of the Auditor General of Canada Public Trust Safety Environmental Protection Engagement with Indigenous Peoples 9

Benefits of standards in regulation • Efficiency & compliance (industry use same tools to meet regulatory requirements; standards represent knowledge of broad expert pool) • Cost effectiveness (referencing standards vs. developing new regulations) • Increased public confidence (accredited approach to standards development takes into account needs of balanced stakeholders; drive consensus) • Facilitate harmonization across jurisdictions 10

Recommendations to the NEB 1) Increasingly leverage and champion the development of standards that support its regulatory objectives with respect to enhancing public safety and environmental protection, for example: - Land Use Planning for Pipelines - Pipeline Safety Metrics - Emissions for Upstream - Emergency Preparedness & Response 2) Promote public transparency of CSA Group standards referenced by the NEB, by having the government support making them available on a ‘View Access’ basis. 3) Ensure the highest degree of public safety by harmonizing all standards and regulations related to pipelines with the provinces and territories. 11

Recommendations (cont’d) 4) Leverage its unique position to facilitate increased CSA Group collaboration with industry, regulators, local and Indigenous communities, to achieve the development of effective solutions that support policy objectives, for example: - Support CSA Group’s Public Safety Advisory Committee that will give a voice to Indigenous people, landowners, environmentalists, academics, NGOs and consumers in the development of oil and gas standards. - Support CSA Group’s research efforts looking at ways of meaningfully engaging Indigenous people in the development of standards and other tools that impact them (pre- and post-project). - Support and leverage existing CSA Group committees and membership to develop a standards roadmap to address NEB key issues and objectives. 5) Provide ongoing support for the continued development of pipeline-related standards, including the participation of NEB experts and overall program funding, to continue CSA Group’s decades long support of this sector. 12

Thank You! Doug Morton Director, Government Relations, Canada CSA Group doug. morton@csagroup. org (416) 747 -2728