Office national
de Pénergie
National Energy
Board
MEMORANDUM
Security: Protected B
Document: 841901
Date: 12 Nov, 2015
To: Board Members
From: Chris Loewen, Vice-President, Operations
Subject: ‘The NEB and Transportation Safety Board (TSB) Relationship
For Information
PURPOSE.
Background information requested at 12 November 2015 Board Meeting.
BACKGROUND
Overview of the TSB Mandate
The mandate of the TSB is to advance transportation safety in the marine, pipeline, rail and
modes of transportation by
+ conducting independent investigations, including public inquiries when necessary, into
selected transportation occurrences in order to make findings as to their causes and
contributing factors;
+ identifying safety deficiencies, as evidenced by transportation occurrences;
+ making recommendations designed to eliminate or reduce any such safety deficiencies; and
+ reporting publicly on its investigations and on the findings in relation thereto,
‘As part of its ongoing investigations, the TSB also reviews developments in transportation safety
and identifies safety risks that it believes government and the transportation industry should
address to reduce injury and loss. As part of its investigation into an event, the TSB may also
investigate the regulator and the application of regulatory oversight.
Incident Reporting
In 1999, the NEB and TSB informed their regulated companies to report all
incidents/occurrences to the TSB who would then relay the information to the NEB. ‘This was
referred to as the “one-window” approach to reporting. In December 2014 both the NEB and the
TSB issued letters directing their regulated companies to report events to the newly developed
online Event Reporting System (ERS) developed by the NEB; this maintains the “one-window”
approach to incident reporting between the two organizations. As of Jan 1, 2015 companies are
now using ERS to report various events required by the regulations of both the TSB and the
NEB.
‘A0010777_23-000089‘The NEB and TSB Relationship
Relationship between the TSB and NEB during and after an incident
‘The NEB is the lead regulatory agency in emergency response, environmental protection and
safety concerns during an incident on an NEB-regulated facility or operation. The TSB will
conduct an investigation into incidents if doing so will advance transportation safety. In the event
the TSB conducts and investigation, they are the sole agency to determine cause and contributing
factors leading to an accident/incident for those investigations. To maintain the investigative
independence of the two organizations, in these situations the NEB is precluded from determining
cause and contributing factors. However the NEB will conduct a concurrent and co-operative
investigation with the TSB focused on factors relating to regulatory compliance, trends within
industry, and what actions are necessary to prevent similar occurrences in the future, Where the
‘TSB does not investigate, the NEB becomes the lead investigator to determine cause and
contributing factors,
Memorandum of Understanding (MOU) between the TSB and NEB
In 1994, the NEB and TSB signed the first MOU between the two organizations. In August 2011,
the most recent MOU between the two organizations was signed. Over the term of the first MOU,
the NEB and TSB developed a working relationship of sharing and where possible, mutual
support. That working relationship has grown and matured. The 2011 MOU solidified the
sharing of information while maintaining investigative independence of each organization. Both
organizations actively work toward keeping this relationship open, cordial and professional so
that we can work toward common goals in the event of a pipeline incident
‘TSB Organizational Structure
Under the COO, Jean Laporte (bio attached), there are 7 Directors, 3 of which correspond to the
‘main transportation modes of Marine, Rail/Pipeline and Air. The remaining directorates are of a
‘corporate or multi-modal testing nature. Kirby Jang is the Director of the Investigations
Rail/Pipeline, with 3 regional rail managers and one pipeline investigation manager, Our
information is that the pipeline group is extremely small, with only 1 —2 full-time staffed
investigators.
Status of Implementation of Management Systems within industry
‘The NEB regularly monitors the implementation of management systems in industry through its
compliance planning and compliance verification processes. This can include both inspections
that provide a “snapshot” of how the company is implementing its safety management system as
well as audits that provide a much more in depth and broad view of how the companies are
designing, tracking and implementing that system,
Industry oversight and enforcement — Comparison with recent findings from another jurisdiction
Earlier this year, the TSB identified issues with Transport Canada (TC) oversight in the Rail
transportation mode. The findings regarding TC from the Lac Megantic report fall into two
primary categories below. Under each of the categories, staff has placed a summary of how the
‘NEB approaches these issues:
Recurring Inspection Deficiencies
ROIS HAIIOT Sy Faghnr72t0008"The NEB and TSB Relationship
‘The NEB’s Compliance Verification Planning risk model accounts for repeat non-compliances
observed through our inspection program. ‘These repeat findings are indicators that raise the risk
score of a regulated company and helps staff identify appropriate compliance activities to address
reourring problems,
‘With the most recent amendments to the OPR', management system requirements have been
clarified including the requirement to have a process to manage the resolution of corrective
actions. As a result, staff has formally included an assessment of the corrective action process as
part of our updated audit protocol.
Weak Internal Audits, Risk and Change Management
Risk assessment, change management, and internal auditing are critical elements within a
company’s management system. Inadequate or absent processes and procedures prevent the
effective management of safety, Board staff has identified similar weaknesses in these elements
during recent management system audits and are conducting follow-up in accordance with our
current procedures
With the recent amendments to the OPR, each of these elements requires a process which the
company must demonstrate in order for the corrective action plan to be resolved. For example, in
order to resolve a finding of deficiency related to internal audit, the company now must
demonstrate that it has a process for conducting internal audits in addition to demonstrating that it
has conducted audits. The process must include the development of protocols, a method of
prioritization, and identification of how the company will manage and verify the implementation
of all corrective actions.
TSB investigations into Pipeline Incidents
Over the past 5 years, the TSB has investigated 6 pipeline-related incidents. Over the 5 years
prior, it investigated 9 additional pipeline incidents. The TSB’s investigation reports are posted
on its website http://www. bst-tsb.gc.ca/eng/rapports-reports/pipeline/index.asp. Links to TSB
reports into pipeline ruptures can also be found on the Board’s website https://www.neb-
one.ge.ca/sfinvenmnt/sft/pplnrptr/index-eng.html, Over the past 5 years, the TSB has issued two
safety advisories (or recommendations) to the NEB.
"The OPR was amended in 2013 to include a general duty clause and explicit management system requirements
designed to support improved safety, security, and environmental outcomes. The amendment included: a requirement
for the appointment of an Accountable Officer (AO); a detailed list of required processes with clear outcomes designed
to effectively manage risk; and a requirement to complete an annual performance report with submission of an annual
statement signed by the AO to the Board confirming completion
RDIMS 841901 3[re eer zeenenesThe NEB and TSB Relationship
Appendix I - Bio for Jean L. Laporte
Appointed Chief Operating Officer on 24 August 2009
Jean Laporte was born and raised in Ottawa, He is a recognized leader in public service
management and is actively engaged in various professional networks both inside and outside
government,
‘He sits on various federal interdepartmental working groups and advisory committees at the
Assistant Deputy Minister and senior executive levels. He is a frequent speaker and organizer of
professional development activities. He is actively involved in promoting strong management and
accountability within the federal Public Service.
Mr. Laporte’s public service career began at the Treasury Board Secretariat, followed by a stay at
Revenue Canada, Customs and Excise, In 1985, he joined the Canadian Aviation Safety Board
and subsequently the Transportation Safety Board of Canada (TSB), occupying a variety of
progressively more senior positions, including those of the Chief Financial Officer and Director
General of Corporate Services.
Mr. Laporte graduated from the University of Ottawa with an Honours Bachelor of Commerce
degree in 1984, In 1989, he received his Certified General Accountant (CGA) designation, and
became a Chartered Professional Accountant (CPA) in 2013. In 2002, Mr. Laporte was awarded
the Queen’s Jubilee Medal in recognition for his contribution to the federal public service, and in
2007 was awarded a Fellowship by the Certified General Accountants Association of Canada for
his contribution to the accounting profession.
RDIMS 841907 FT Pageh0010777_28-000008