Canada Gazette, Part I, Volume 148, Number 26: ORDERS IN COUNCIL

June 28, 2014

NATIONAL ENERGY BOARD

NATIONAL ENERGY BOARD ACT

Order — Certificates of Public Convenience and Necessity OC-060 and OC-061 to Northern Gateway Pipelines Inc. for the Northern Gateway Pipelines Project

P.C. 2014-809 June 17, 2014

Whereas, on May 27, 2010, Northern Gateway Pipelines Limited Partnership applied to the National Energy Board (“Board”) pursuant to section 52 (see footnote a) of the National Energy Board Act (see footnote b) for two certificates of public convenience and necessity to be issued in respect of the construction and operation of a terminal at Kitimat, British Columbia and two parallel pipelines between Bruderheim, Alberta and Kitimat (“Project”);

Whereas, on January 20, 2010, a review panel (“Panel”) was jointly established by the Minister of the Environment and the Board to conduct an assessment of the environmental effects of the Project under the Canadian Environmental Assessment Act, chapter 37 of the Statutes of Canada, 1992, and to consider the application for the certificates under the National Energy Board Act (see footnote c) in accordance with the Agreement Between the National Energy Board and the Minister of the Environment Concerning the Joint Review of the Northern Gateway Pipeline Project;

Whereas, pursuant to the Canadian Environmental Assessment Act, 2012 (see footnote d), the assessment by the Panel in respect of the Project is continued under the process established under that Act and the Project is considered to be a designated project for the purposes of that Act and Part 3 of the Jobs, Growth and Long-term Prosperity Act (see footnote e);

Whereas, on December 19, 2013, the Panel submitted its report in two volumes entitled Connections: Report of the Joint Review Panel for the Enbridge Northern Gateway Project, Volume 1 and Considerations: Report of the Joint Review Panel for the Enbridge Northern Gateway Project, Volume 2 (“Panel Report”) to the Minister of Natural Resources;

Whereas the Crown has undertaken a process of consultation and accommodation with Aboriginal groups relying on the work of the Panel and additional consultations with Aboriginal groups;

Whereas the Governor in Council accepts the Panel's finding that the Project, if constructed and operated in full compliance with the conditions set out in Appendix 1 of Volume 2 of the Panel Report, is and will be required by the present and future public convenience and necessity, and accepts the Panel's recommendation;

And whereas the Governor in Council considers that the Project would diversify Canada's energy export markets and would contribute to Canada's long-term economic prosperity;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources,

• (a) pursuant to paragraph 52(1)(a) of the Canadian Environmental Assessment Act, 2012 (see footnote f), decides that, taking into account the implementation of mitigation measures that it considers appropriate, the Project is not likely to cause significant adverse environmental effects referred to in subsection 5(1) (see footnote g) of that Act;
• (b) pursuant to paragraph 52(1)(b) of the Canadian Environmental Assessment Act, 2012 (see footnote h), decides that, taking into account the implementation of mitigation measures that it considers appropriate, the Project is likely to cause significant adverse environmental effects referred to in subsection 5(2) of that Act for certain populations of woodland caribou and grizzly bear;
• (c) pursuant to subsection 52(4) of the Canadian Environmental Assessment Act, 2012 (see footnote i), decides that the significant adverse environmental effects referred to in paragraph (b) are justified in the circumstances;
• (d) pursuant to subsections 53(1) and (2) of the Canadian Environmental Assessment Act, 2012 (see footnote j), establishes the conditions with which Northern Gateway Pipelines Limited Partnership must comply in relation to the environmental effects referred to in paragraphs (a) and (b) to be the conditions contained in Appendix 1 of the volume of the Panel Report entitled Considerations: Report of the Joint Review Panel for the Enbridge Northern Gateway Project, Volume 2; and
• (e) pursuant to section 54 (see footnote k) of the National Energy Board Act (see footnote l), directs the National Energy Board to issue Certificates of Public Convenience and Necessity OC-060 and OC-061 to Northern Gateway Pipelines Inc., on behalf of Northern Gateway Pipelines Limited Partnership, in respect of the construction and operation of a terminal at Kitimat, British Columbia and two parallel pipelines between Bruderheim, Alberta and Kitimat subject to the terms and conditions contained in Appendix 1 of the volume of the Panel Report entitled Considerations: Report of the Joint Review Panel for the Enbridge Northern Gateway Project, Volume 2.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal and objective

The objective of this Order is to seek Governor in Council approval to direct the National Energy Board (the Board) to issue two Certificates of Public Convenience and Necessity (the Certificates) to Northern Gateway Pipelines Inc. on behalf of Northern Gateway Pipelines Limited Partnership (Northern Gateway) for the pipelines applied for by Northern Gateway pursuant to sections 52 and 54 (Part III) of the National Energy Board Act (the NEB Act).

Background

On May 27, 2010, Northern Gateway applied to the Board for authorization to construct and operate the Northern Gateway Pipelines Project (the Project). The Project would be a new transportation route for Canadian oil products to reach world markets, primarily in Asia and the United States west coast, and would have three major components:

• a 914-millimetre (36-inch) outside diameter pipeline, approximately 1 178 kilometres in length, to carry an average of 83 400 cubic metres (525 000 barrels) of oil per day west from Bruderheim, Alberta, to Kitimat, British Columbia;
• a parallel pipeline with an outside diameter of 508 millimetres (20 inches), to carry an average of 30 700 cubic metres (193 000 barrels) of condensate per day east from Kitimat to Bruderheim; and
• a terminal at Kitimat with 2 marine tanker berths, 3 condensate storage tanks, and 16 oil storage tanks.

The Board and the Minister of the Environment agreed to establish a joint review panel (the Panel) pursuant to section 40 of the Canadian Environmental Assessment Act to conduct an environmental assessment of the Project and to consider the application for the Certificates.

On December 19, 2013, the Panel recommended that the Governor in Council direct the Board to issue two Certificates (Certificate OC-060 and Certificate OC-061) for the Project applied for by Northern Gateway.

Implications

The Panel found that, overall, the Enbridge Northern Gateway Pipelines Project, constructed and operated in full compliance with the 209 conditions required in Appendix 1 of “Considerations: Report of the Joint Review Panel for the Enbridge Northern Gateway Project, Volume 2,” is in the present and future public convenience and necessity. To arrive at this recommendation, the Panel assessed the Project from the perspective of its effects on the industry, the wider economy, social and environmental effects, as well as the soundness of the design.

The Panel found that opening Pacific Basin markets for Canadian oil products is important to the Canadian economy and society. Societal and economic benefits can be expected from the Project.

Given the 209 conditions imposed by the Panel, the environmental burdens associated with project construction and operation can generally be effectively mitigated. The Panel found that, after mitigation, the likelihood of significant adverse environmental effects resulting from project malfunctions or accidents is very low.

The Panel recommended that the Governor in Council find that cases of significant adverse environmental effects be justified in the circumstances for certain populations of woodland caribou (see footnote 1) and grizzly bear.

Consultation

Pursuant to Hearing Order OH-4-2011, a hearing took place over 173 days between January 10, 2012, and June 24, 2013, at various locations in Alberta and British Columbia, at which time the Panel heard from Northern Gateway and interested parties to the proceeding.

During the hearing, the Panel heard from 218 intervenors and government participants, oral evidence was heard from a total of 393 witnesses representing 60 intervenors, 1 179 people presented oral statements and more than 9 000 letters of comment were received. Federal departments submitted specialist expert information and knowledge to the Panel.

The Panel considered evidence provided by Aboriginal groups, Northern Gateway and other participants as to the nature and extent of the activities, uses and practices that are carried out by Aboriginal groups within the project area, and the potential impacts of the Project on those activities, uses and practices. The Panel also considered all the measures committed to by Northern Gateway to avoid or mitigate such impacts.

The Panel was presented with written evidence and heard during oral evidence that Aboriginal groups continue to use lands, waters and resources within the project area for traditional purposes. The Panel concluded that this evidence demonstrates that there is current compatibility for multiple uses within this area.

The Panel accepted that, during construction and routine operations, there would not be significant adverse effects to biophysical resources used by Aboriginal groups nor to the ecosystems that support these and that the Project would not result in significant adverse effects on the ability of Aboriginal people to continue to use the lands, waters, or resources for traditional purposes.

Contact

For more information, please contact Terry Hubbard, Director General, Petroleum Resources Branch, Natural Resources Canada, at 613-992-8609.

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