Transcript Operating Pipeline Services - Canadian Common Ground Alliance

Crossing
Agreements
Canadian Best
Practice
Crossing Agreements
A Canadian Best Practice
Brad Watson
TransCanada Pipelines and Alberta Common Ground Alliance
Warren Loper
Enbridge Pipelines Inc.
Moderated by Mike Sullivan
Chair, CCGA
President, Alberta One-Call Corporation
Ground Disturbance in Canada
Crossing
Agreements
Canadian Best
Practice
One Call legislation doesn’t exist BUT buried utilities
must be located prior to ground disturbance (various
legislation)
Buried utilities further protected by Crossing
Agreement
Crossing
Agreements
Canadian Best
Practice
The voice of Canada's upstream oil,
oil sands and natural gas industry
Crossing Agreements
Crossing agreements date back to the 1970s
Crossing
Agreements
Canadian Best
Practice
An Alberta initiative
Requires “written permission” to cross various buried
utilities
Based on various legislation
Crossing
Agreements
Canadian Best
Practice
Crossing Agreement
Sections
PART 1 – MASTER AGREEMENT
Crossing
Agreements
Canadian Best
Practice
Contains:
 Agreement
 Schedule B (location Plan and Profile)
 Schedule C (specific Terms and Conditions)
This document should be used to develop corporate-specific master
crossing agreement.
PART 2 – TERMS AND CONDITIONS
Agreement provides for terms and conditions of crossing.
Crossing Agreement
Sections
COMPONENTS OF THE AGREEMENT ARE:
Crossing
Agreements
Canadian Best
Practice
 Agreement – Facility Crossing Agreement
 Schedule A – Mutually Agreed to Terms and Conditions (CAPP letterhead)
 Schedule B – Location Plan and Profile (Company letterhead)
 Schedule C – Specific Terms and Conditions (Company letterhead)
MASTER CROSSING AGREEMENT
 Develop two Agreements, one to be executed by grantor and one by
grantee; complete page 1 of Schedule A;
 Provide each party with a copy of Master Crossing Agreement and
Schedule A.
 Exchange Schedules B and C only when specific crossing approvals are
 Required between the two parties involved.
Crossing Agreement
Schedule A
INTERPRETATION
Contains words, terms and definitions of same
Crossing
Agreements
Canadian Best
Practice
CONSENT
Grantor agrees that the Grantee may perform the Work on Grantee’s Facility
in the Crossing Area in accordance with the terms and conditions of the
Agreement.
COMPLIANCE WITH STATUTES AND REGULATIONS
Compliance and conformance with any and all applicable codes, statutes,
laws, regulations, permits, licenses, orders and directions of any
governmental authority.
Crossing Agreement
Schedule A
POSITION OF FACILITY
Crossing
Agreements
Canadian Best
Practice
Provides stipulations for position of Grantee’s facility relative to the position
of the Grantor’s facility.
CONDITIONS
Establishes the terms and conditions imposed on a particular crossing.
REMEDY ON DEFAULT
Language capturing issues of default
Crossing Agreement
Schedule A
FURTHER WORK
Crossing
Agreements
Canadian Best
Practice
Any future work related to the initial crossing by either party in the crossing
area will be consented and the provisions of the initial agreement shall
apply.
Installation of any Facility, other than those shown in Schedule “B”, shall
require a separate Facility Crossing Agreement
Emergency Work in the Crossing Area requires verbal notice and must be
followed by written notice.
Crossing Agreement
Schedule A
LIABILITY
Language capturing issues of liability.
Crossing
Agreements
Canadian Best
Practice
INDEMNITY
Language capturing indemnity clauses.
INSURANCE
Each party shall obtain and keep in force during the term of the Agreement
comprehensive general liability insurance covering liability for bodily injury
and property damage arising from Work contemplated by this Agreement.
The limit of this insurance shall not be less than five million dollars,
inclusive, for any one occurrence unless otherwise agreed by the parties in
writing.
Crossing Agreement
Schedule A
Crossing
Agreements
Canadian Best
Practice
CHANGES TO AGREEMENT
No change, modification or alteration of this Agreement shall be valid
unless it is in writing and signed by both parties.
ASSIGNMENT
Neither party to this Agreement shall assign or transfer this Agreement nor
the rights and privileges hereby granted without the written consent of the
other party, and such consent shall not be unreasonably withheld.
Crossing Agreement
Schedule A
GOVERNING LAW
Crossing
Agreements
Canadian Best
Practice
This Agreement and the rights and obligations of the parties herein shall be
governed and construed according to the laws of the province in which the
Work is to occur.
TERM
The rights and obligations of the parties under this Agreement shall
terminate two years from the date hereof if construction of Grantee’s
Facility has not commenced, or upon proper abandonment or removal of all
of Grantor’s or Grantee’s Facilities from the Crossing Area and the
completion of any reclamation Work.
Crossing Agreement
Process
Crossing
Agreements
Canadian Best
Practice
1
2
3
• Party requests to cross buried facility (via a
One Call or direct request to facility owner)
• Facility owner will locate and mark utility
within 48 to 72hrs
• If the ground disturbance will cross right of
way, triggers crossing agreement process
Crossing Agreement
On-site Tailgate meeting
Crossing
Agreements
Canadian Best
Practice
1
• Review locate markings, hazards,
emergency response protocol
2
• Review documentation and
backfilling requirements
3
• Confirm authority of Company
Inspector
Crossing Agreement
Benefits
Clear and concise contract between two parties
Crossing
Agreements
Canadian Best
Practice
Terms and conditions relative to construction
Covers the excavator, facility owner for liability
Plan the work and work the plan
Crossing Agreement
Challenges to implementation in U.S.
Crossing
Agreements
Canadian Best
Practice
• The lack of statutory requirements
• Difficulty getting parties to apply, submit drawings (little
time or incentive to sign)
• If something goes wrong, both parties are in trouble
HOWEVER, the Crossing Agreement is being recognized…
• Unsigned agreement remains valuable as an Engineering
Assessment
• Tremendously valuable as a damage prevention tool but also
for employee safety
• Requirements will be inspected
Crossing
Agreements
Canadian Best
Practice
This presentation and the CAPP Crossing Agreement can
be downloaded from the CCGA’s website:
www.canadiancga.com