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Environmental GRI Performance Indicators

EN26 – Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation, and

EN27 – Percentage of products sold and their packaging materials that are reclaimed by category. Note: Not relevant to Enbridge.

Demand-side Management

Enbridge is committed to helping customers use energy wisely. Enbridge Gas Distribution has more than 40 demand-side management (DSM) programs, covering all market sectors, that encourage customers to adopt energy-saving equipment and reduce consumption of natural gas.

We do this in different ways:

  • we conduct energy audits of commercial and industrial customers’ operations to identify opportunities to improve energy efficiency;
  • we provide financial rebates and incentives to all types of customers – from homeowners to large industrial customers – to encourage them to adopt energy-saving equipment and practices;
  • we work with industry and trade associations in various sectors – such as chemicals, construction, automotive, food and beverage, and pulp and paper – to promote DSM programs and contribute to industry standards and best practices;
  • we partner with governments, suppliers and equipment manufacturers to invest in new energy-efficient technologies that benefit our ratepayers and enhance the competitiveness of our business;
  • we participate in consumer and community events to promote and ensure that program opportunities are well publicized and accessible to all consumers, including low-income earners; and
  • we ensure that all of our incentives and rebate offers are available on our website for fast and easy review and downloading.
Natural Gas Savings Through
Demand-side Management Programs
(cumulative, million cubic metres)
2007723
2006631
2005541
2004459
2003385

Providing energy savings and environmental benefits

In 2007 alone, our DSM programs saved about 70.3 million cubic metres of natural gas, which is enough to supply approximately 23,000 homes with natural gas for a year. Since 1995, our DSM programs have delivered about 3.6 billion cubic metres of natural gas savings (the equivalent of enough gas to supply over one million homes for one year), and net energy savings to our customers of about $1.3 billion. Through these DSM activities, we have helped our customers avoid almost seven million tonnes of carbon dioxide emissions.

Contributing to policy on DSM

As a recognized DSM leader in the natural gas industry, Enbridge Gas Distribution is frequently invited to provide advice on DSM initiatives. In 2006, we participated in an Ontario Energy Board Natural Gas DSM Generic Issues Proceeding, the results of which proved to be positive. Through this proceeding, Enbridge Gas Distribution was able to help establish a new framework for natural gas DSM in Ontario. As a result, Enbridge is now operating our DSM programs under the stability of a multi-year plan (2007 to 2009). This timeframe will enable us to build, expand and maximize the DSM programs we are currently offering.

The framework includes a DSM incentive that provides shareholders with a share of the benefits from every cubic metre of gas saved. The DSM results have positive impacts, not only for our customers participating in the DSM programs, but also for broader conservation efforts in the province of Ontario.

Pipeline and System Integrity

For our liquids transportation business, pipelines have been proven to be the safest and most efficient way to transport petroleum products. Our ongoing monitoring and maintenance programs contribute to that safe operation.

Enbridge endeavours to be a leader in pipeline and system integrity by:

  • implementing rigorous preventive maintenance programs;
  • pursuing and supporting technology research;
  • participating in industry forums to share and exchange knowledge;
  • contributing to the development of national pipeline safety standards and industry-recommended practices;
  • providing technical advisory and training services to pipeline operators around the world; and
  • supporting state and provincial excavation one-call efforts to reduce the risk of third-party damage to pipelines.

By undertaking these initiatives, we identify, share, and use best practices in our operations and contribute to public confidence in our systems.

Our Performance

Broadening System Integrity in Liquids Pipelines

In 2004, Enbridge implemented pipeline and system integrity measures such as leak-reduction teams, small-piping-integrity initiatives, and changes to engineering standards. All of these initiatives have contributed to the improvements we have achieved so far but, as the following table indicates, much remains for us to do.

As we continue in our efforts to reduce and eliminate leaks, we are expanding our initiatives to focus on valves, pumps and other sources of potential leaks – including the facilities that are related to our pipelines. In addition, we have linked our leak-reduction targets and operations performance goals to our corporate and individual performance and compensation.

Enbridge’s goals for advancing pipeline and system integrity are based on technological advances, as well as on understanding the science of how to find, mitigate, and prevent leaks or ruptures on our pipeline systems. To accomplish these goals, we are actively involved with industry research and standards organizations such as the Pipeline Research Council International, the Canadian Standards Association, the National Association of Corrosion Engineers and the American Petroleum Institute. We actively participate in industry forums and workshops aimed at communicating and sharing information on how to manage pipeline systems integrity. For example, in 2007, we presented technical and research papers, participated on industry panels, and participated as workshop-session leaders at the Banff Pipeline Integrity Workshop and at the Pipeline and Hazardous Materials Safety Administration’s R&D Forum.

To aid industry and to advance pipeline safety, Enbridge is also actively involved in supporting and conducting research that will improve our understanding of pipeline hazards and of methods to prevent, monitor, and repair potential defects on the pipeline system. In 2007, we continued to provide financial support for, or initiated research into, advanced understanding of internal corrosion and mitigation techniques for large-diameter transmission pipelines. We also began developing specialized crack inspection equipment, and proposals for advanced pipeline-cleaning tools.

YearFacility Leaks
200750*
200642
200551
200454
*Includes leaks in Enbridge’s gathering systems.

Identifying high-consequence areas

In 2007, Enbridge continued our work to identify high-consequence areas for Liquids Pipelines’ Canadian mainline system. For our 2008 risk assessment, we included high- and medium-populated areas, drinking-water intakes, environmentally sensitive areas, and commercially navigable waterways. We used our knowledge of these high-consequence areas to identify additional risk prevention and mitigation measures that we can implement to provide extra protection.

In the U.S., Enbridge identified high-consequence areas along our natural gas and petroleum pipelines, as part of an extensive Integrity Management Program.

Upgrading containment features

Since 2002 in Canada and 2004 in the U.S., Enbridge has been upgrading our containment features at facilities to minimize the potential for off-property releases. This work continued into 2007 and is expected to carry forward through at least 2009.

Carrying out pipeline integrity “digs”

Our ongoing program of maintenance “digs” involves excavating sections of pipeline to inspect and repair pipe to maintain high levels of system integrity. In 2007, we completed 66 in-line inspections and completed over 625 digs along our mainline Liquids Pipelines system in Canada and the U.S.

We conduct all maintenance digs to the highest environmental standards. Before beginning work, we complete screening tests to identify environmental issues and measures needed to minimize our impacts to land, vegetation and wildlife. We conduct similar environmental reviews for other small engineering and operation and maintenance projects. We also train inspectors and contractors on safety and environmental best management practices, and provide specifications for these projects.

Integrity management at Enbridge Gas Distribution

Annex N in CSA Z662 – the Canadian Standards Association’s oil and gas pipelines systems standard – came into force on 30 June 2007, requiring natural gas distribution system operators to complete direct assessment of all piping that operates at or greater than 30 per cent of the specified minimum yield strength (SMYS) of the pipe material. Collectively these pipelines are called the Integrity Mains.

Enbridge Gas Distribution had been preparing for this requirement through its ongoing 10-Year Baseline Plan to complete direct assessment of the condition of its Integrity Mains. The program began in 2003 and has been reviewed and revised annually since then.

We modified our Pipeline Integrity Management Program Manual in 2007 to include the requirements of Annex N. In addition, we began work on the 2008 edition of the manual to include the requirements of Annex M, which will require an Integrity Management Program for the rest of the system and which will come into effect on 30 April 2008.

The direct assessment of the Integrity Mains is by in-line inspection (ILI) of the pipelines. In-line inspection is a key part of our Integrity Management Program (IMP), which provides a proactive means to ensure a safe and reliable distribution system.

In 2007, Enbridge Gas Distribution’s Integrity Management Department:

  • Reviewed and revised the 10-Year Baseline Inspection Plan, which prioritizes inspection of pipelines by risk. We altered the plan to complete the retrofitting of the eastern section of the Nominal Pipe Size (NPS) 12 Ottawa South and the NPS 26 Network 182 lines in 2008 due to delays in ordering long lead-time items for the 2007 construction season. This in turn required the ILI of the lines to be rescheduled to 2009.
  • Completed the ILI and data verification for the western section of the NPS 12 Ottawa South and the NPS 30 Don Valley pipelines.
  • Completed the mitigation of the Scheduled Indications on the NPS 8 Collingwood and NPS 36 Parkway North lines.
  • Completed, as far as possible, retrofitting of the eastern section of the NPS 12 Ottawa South and the NPS 26 Network 182 lines.

In addition to pipelines, the IMP includes managing the condition of the inlet piping to gate stations. Inspection of four of the five station inlets scheduled for 2007 was not necessary because detailed records searches revealed that the piping was of a higher grade or thicker wall than originally thought and therefore the operating stress was less than 30 per cent SMYS. Inspection of the fifth station was suspended because the station is scheduled to be rebuilt in 2008 and the inlet piping will be designed to operate at less than 30 per cent SMYS.

In 2007, we increased to an acceptable level the depth of cover of the one section of pipe that was identified in the 2006 Depth of Cover Survey as having insufficient cover. This completed all of the requirements of the survey.

In 2008, the Integrity Management Department will retrofit four pipelines for ILI in 2009. No pipelines will be ready for ILI in 2008.

Integrity management in Enbridge’s U.S. natural gas operations

Our Gas Transportation business introduced an Integrity Management Program (IMP) in 2005 to comply with federal regulations requiring gas transmission pipeline operators to develop such programs for pipelines located where a leak or rupture could do the most harm. Under the regulations, operators are required to: perform ongoing assessments of pipeline integrity; improve data collection, integration, and analysis; repair and remediate pipelines as necessary; and implement preventive and mitigative actions.

Our comprehensive IMP initiatives in 2007 included:

  • identifying high-consequence areas near pipeline routes;
  • assessing and selecting preventive and mitigative measures for pipeline segments that are located in high-consequence areas;
  • further improving upon relative risk models through the development of more accurate geospatial data sets and mathematical algorithms;
  • updating existing processes and procedures to improve the efficiency of remaining in compliance; and
  • expanding our Systems Integrity Department to manage the ever increasing workload stemming from the regulations.

In the first quarter of 2006, the U.S. Pipeline Hazardous Materials and Safety Administration (PHMSA) conducted an audit of the business unit’s IMP. The audit was a joint effort between federal and state inspectors to help ensure compliance with federal safety regulations. In mid-2008 PHMSA provided their report. Based on the recommendations provided, updates to the IMP are currently under way to further improve the effectiveness of our IMP.

Enbridge Pipeline Data Management System

In 2007, our Gas Transmission business continued work on developing an information system for pipeline data management. The system will help us comply with federal pipeline safety regulations that require operators to improve data integration and analysis. Integration across business units will speed information to critical functional areas to provide further improvement of our IMP.

Integrity Compliance Activity Management

In 2007, our Gas Transportation business continued implanting a tool to link its IMP framework to actual functional processes, procedures, and tasks. The tool will help us manage internal processes, and make it easier for us to ensure that we comply with all inspection protocol requirements.