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December 22, 2022
Today the Commission of the Canada Energy Regulator (the Commission) released a decision upholding an Administrative Money Penalty (AMP) issued to Trans Mountain Pipeline ULC (Trans Mountain) earlier this year. The Commission’s decision also corrected the penalty amount.
In February 2022, the Canada Energy Regulator (CER) issued an AMP to Trans Mountain for violating paragraphs 6.5(1)(k) and 6.5(1)(q) of the Canadian Energy Regulator Onshore Pipeline Regulations (OPR), relating to multiple spreads of the Trans Mountain Expansion Project (TMEP).
In March 2022, Trans Mountain requested that the Commission review the AMP. The Commission had to decide whether Trans Mountain did commit the violation and whether the penalty amount was correct. The Commission determined that Trans Mountain did commit the violation. The Commission also determined that the amount of the penalty was not calculated in accordance with the CER’s AMP Regulations and was required to change it to $4,000 from $88,000. Trans Mountain has 30 days to pay the fine.
Trans Mountain failed to implement management system processes for:
Some of the goals of issuing an AMP to companies are to promote compliance with the Canadian Energy Regulator Act and regulations and to prevent similar incidents from happening again. An AMP is only one tool in the CER’s enforcement toolkit. Other enforcement tools available to the CER include Notices of Non-Compliance, Inspection Officer Orders, Safety Orders, and revocation or suspension of a company’s authorization to construct and operate a project. In addition to enforcement actions, we share what we learn with regulated industry so we can work together to find solutions and prevent a similar event in the future.
The Canada Energy Regulator (CER) works to keep energy moving safely across the country. We review energy development projects and share energy information, all while enforcing some of the strictest safety and environmental standards in the world. To find out how the CER is working for you visit us online or connect on social media
Canada Energy Regulator
Email: [email protected]
Telephone (toll free): 1-800-899-1265
Facsimile (toll free): 1-877-288-8803
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