Trans Mountain Pipeline ULC (Trans Mountain)

Trans Mountain Expansion Project (Project)

File No.: OF-Fac-T260-2013-03 03

The National Energy Board (NEB or the Board) imposed 157 conditions on the Trans
Mountain Expansion Project (the Project) in its recommendation to the Governor in
Council. In particular, Condition 9 requires Trans Mountain to file a Project-specific
Quality Management Plan (QMP) at least 4 months prior to manufacturing any pipe
and major components for the Project.

Trans Mountain submitted its Condition 9 filing to the Board on 1 February 2017
(A81598). Subsequent filings to NEB Information Requests No. 7 and No. 23
were submitted on 15 May 2017 (A83587) and 29 June 2017 (A84717),
respectively. The Board has examined these filings to determine Trans
Mountains compliance to Condition 9, and their acceptability within the context of
regulatory requirements, best practices, professional judgement, and the goals
the condition sought to achieve.

The Board is of the view that the following key processes supporting the QMP
remain under development due to incomplete process documentation:
the Criticality Assessment Process;
the Contractor Qualification Specification;
Vendor and Supplier Qualification;
Non Conformance Management;
Lessons Learned;
Quality Auditing;
Shipping and Storage Preservation Management;
Expediting Management;
Logistics Management;
Vendor Document Management;
Release for Shipment Requirements;
Receiving Program Requirements; and
Factory and Site Acceptance Testing Requirements

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Trans Mountain Pipeline ULC (Trans Mountain)
Request No. 1:
Confirmation that the documentation of the above-noted processes was completed on 15
August 20171 or notification of the date of completion;

Response:
The documentation of the above-noted processes was underway but not complete on 15
August 2017. The Trans Mountain Expansion Project (TMEP) Quality Assurance Team
including Construction Management and Inspection (CM&I) contractors, who Trans
Mountain has now identified to be Stantec and Worley Parsons, are in the process of
finalizing the TMEP Construction Quality Assurance Program (CQAP) which will be
completed by 29 September 2017. The noted items in progress which will be addressed
in the TMEP CQAP include: the Criticality Assessment Process, the Contractor
Qualification Specification, Vendor and Supplier Qualification, Non Conformance
Management, Lessons Learned, Quality Auditing, Vendor Document Management, and
Factory and Site Acceptance Testing Requirements.

Present Status:

Criticality Assessment Process

Not yet complete and in progress; final draft to be completed on 25 September

2017, with final internal approvals by 29 September 2017.

Non Conformance Management

Not yet complete and in progress; final draft to be completed on 25 September

2017, with final internal approvals by 29 September 2017.

Lessons Learned

Not yet complete and in progress; final draft to be completed on 25 September

2017, with final internal approvals by 29 September 2017.

1
Noted as 15 August 2014 in the Boards letter request.

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Trans Mountain Pipeline ULC (Trans Mountain)
Quality Auditing

Not yet complete and in progress; final draft to be completed on 25 September

2017, with final internal approvals by 29 September 2017.

Vendor Document Management

Not yet complete and in progress; final draft to be completed on 25 September

2017, with final internal approvals by 29 September 2017.

Factory and Site Acceptance Testing Requirements

Not yet complete and in progress; final draft to be completed on 25 September

2017, with final internal approvals by 29 September 2017.

Contractor Qualification Specification

Not yet complete and in progress; final draft to be completed on 25 September

2017, with final internal approvals by 29 September 2017.

Vendor and Supplier Qualification

Not yet complete and in progress; final draft to be completed on 25 September

2017, with final internal approvals by 29 September 2017.

Shipping and Storage Preservation Management

Expediting and Logistics Procedure covers shipping, storage preservation

management and is complete.

Expediting Management

Expediting and Logistics Procedure covers expediting management and is

complete.

Logistics Management

Expediting and Logistics Procedure covers logistics management and is complete.

Release for Shipment Requirements

Expediting and Logistics Procedure covers the release of shipment requirements-

and is complete.

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Trans Mountain Pipeline ULC (Trans Mountain)
Receiving Program Requirements

Expediting and Logistics Procedure covers the receiving requirements and is

complete.

Request No. 2:

Confirmation of whether any procurement of pipe, fittings, and major components for the
Project occurred prior to the date of completion identified in Request No. 1; and

Response:
Confirmed. The procurement of materials followed the responsibilities, processes, tools,
metrics and documentation described in the Quality Management Plan (the Plan) filed
with the Board on 1 February 2017 (Filing ID A5I5Z1). The Plan references the list of
specifications to be used by the project TMEP Engineering Standards Specifications
and Procedures List KMC Doc # 01-13283-GG-0000-TEC-EP-0005. All equipment
procurement was based on the TMEP approved specifications.

Attachment 1 to this response is a summary list of specifications used when ordering

materials.

Request No. 3:

If yes to Request No. 2, provide a listing of those pipe, fittings, and major components.

Response:
Attachment 2 to this response is a list of pipe, fittings and major components.

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Trans Mountain Pipeline ULC (Trans Mountain)
 Attachment 2: Procurement List

Receive Date
Project Segment Component Quantity Procured Units RFP Date (Actual) Award Date (Forecast) Award Date (Actual) Manufacturing Start Date Status
(First Shipment)

Bids close on September 12,

Check Valves 65 ea 11-Aug-17 30-Sep-17 See Status To be Confirmed To be Confirmed
2017

Bids received. Clarifications

Gate Valves 79 ea 11-Aug-17 30-Sep-17 See Status To be Confirmed To be Confirmed
sent to bidders.
Pipeline Spread 1 to 7

Line Pipe (Domestic) - 5C 250,000 metric tonnes 12-May-15 N/A 27-Jul-17 5-Oct-17 20-Nov-17 Awarded

Line Pipe (International) - 5 & -

42,000 metric tonnes 12-May-15 N/A 3-May-17 15-Oct-17 10-Feb-18 Awarded
45C Pipe

Line Pipe (International) - HSB

6,460 metric tonnes 12-May-15 N/A 21-Jul-17 15-Oct-17 1-Apr-18 Awarded
Pipe

Induction Bends 980 ea 2-Jun-17 18-Sep-17 See Status 22-Sep-17 To be Confirmed Award Recommendation

Inventory Purchase from

24" Line Pipe 260 mtrs 7-Apr-17 N/A 26-May-17 5-Jul-17 Awarded
(for investigation

distributor
purposes only)
Reactivation

Induction Bends 4 ea 7-Apr-17 N/A 26-May-17 6-Jun-17 5-Jul-17 Awarded

Fitting & Flanges 1,848 ea 7-Apr-17 N/A 26-May-17 8-Jun-17 5-Jul-17 Awarded
ETPS

Contract will be signed in the

Mainline Pumps & Motors 30 ea 19-Jun-17 12-Sep-17 See Status 29-Dec-17 17-Aug-18
week of September 18, 2017
LML

Dolphin & Trestle Piles ** 9,710 metric tonnes 15-Feb-17 N/A 17-Mar-17 4-May-17 17-Jul-17 Awarded

Note: Legend
Edmonton Terminal & Pumping
** Dolphin & Trestle Piles ordered in March 2017 and received in July 2017 in order to maintain a construction start date of Sept ETPS
Station
2017 for Westridge Terminal. Note the Board is of the view that Condition 9 is not applicable to Westridge Marine Terminal.
Reference: see link below for National Energy Board Condition Compliance Letter Report No. 3 (pdf page 6) LML Lower Main Land

( A5T6C2 ) RFP Request for Proposal

AML Approved Manufacturer List

PML Proposed Manufacturers List