Revoking its right to operate a pipeline
Pipeline company Plains Midstream Canada, having escaped the provincial regulator’s penalty box in August, faces a federal regulator process that could potentially lead to a shutdown of operations.
The National Energy Board confirmed Tuesday it is investigating the company because of its failure to undertake a corrective action plan required after a 2010 audit turned up non-compliance with certain NEB regulations.
The subsidiary of Plains All American Pipeline, L.P., of Houston could face penalties including revoking its right to operate a pipeline, imposing safety orders and the initiation of show-cause proceedings in which it would be required to demonstrate why the NEB should not shut its pipeline system down, said NEB spokeswoman Rebecca Taylor.
A board member, engineer Bob Vergette, has been asked to meet with the company and report back to the board, she said.
“When the board conducts an audit, almost invariably in an audit, the board will find different items that are not compliant with board regulations. Then the company is required to submit a corrective action plan,” she said.
“In this case, the board found that Plains had not properly implemented their corrective action plan and remained in non-compliance with the board’s findings so Mr. Vergette is tasked with meeting with them, seeing how they intend to address this and, if necessary, recommending additional actions by the board.”