Calgary-based Plains Midstream Canada is being investigated by the National Energy Board (NEB) for failing to comply with a corrective action plan the NEB requested after a 2010 audit.
The NEB has been monitoring Plains since two oil spills occurred at pipelines owned by the company during the last three years.
In April 2011, the company’s Rainbow pipeline near Peace River in Alberta spilled about 37,000 barrels of oil.
In June 2012, a Plains Midstream line spilled about 3,800 barrels of oil into the Red Deer River.
The audit took place before the spills.
NEB released a letter sent to Plains president David Duckett Monday requesting his presence at a meeting with the regulator.
“The purpose of the meeting is for you to account for Plains’ failure to implement the [corrective action plan] and how you, as the Accountable Officer, will ensure compliance with the [Onshore Pipeline Regulations] in the future,” the letter said.
The letter also said that “the majority of the [NEB’s] Non-Compliant findings had not been addressed.”
The meeting was held on September 4.
Plains was found to be in violation of regulations concerning the its action plan for taking corrective and preventative measures to reduce spills and improving the company’s safety management program.
Depending on the outcome of the investigation Plains could be subject to more enforcement from NEB.
The NEB could place pressure restrictions on the company’s pipelines or even demand that the company convince the board that they should be allowed to continue operating.
Alberta Energy Regulator (AER), a regulatory agency, said that Plains has only met half of the 113 demands made by the regulators.
However, the AER said Plains has been taken off the highest level of regulatory oversight.
AER will continue to follow up with the company to ensure Plains addresses and complies with the unsatisfied requirements.