MINUTES OF THE FIRST PRESSURE EQUIPMENT SUB-COUNCIL MEETING OF 2016

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1 DATE: January 29, 2016 TIME: LOCATION: PRESENT: REGRETS: GUEST: RECORDER: MINUTES OF THE FIRST PRESSURE EQUIPMENT SUB-COUNCIL MEETING OF :00 a.m. to 1:35 p.m. Radisson Edmonton South, Edmonton Sub-Council Members Izak Roux, Chair Mike Clancy Dr. Magdi Ghobrial (until 12 noon) Brian Grantham Marvin Kossowan Todd Loran David Miller Jacques St-Onge Jim Weiss, Vice Chair John Wolff Alberta Boilers Safety Association (ABSA) Mike Poehlmann, Administrator & Chief Inspector, Djordje Srnic Alberta Municipal Affairs Allan Hantelmann, Harry Li Sidney Manning and Erin Black (until 12 noon) Safety Codes Council Tyler Wightman Brian Lade, Vice Chair Grant Peuramaki John Valens Ward Wagner Terry Wiseman Geoff Kutz, Incoming Member Jason Davio, APPCA Sandi Orr 2016 MEETINGS: Thursday, March 24 (Special Meeting) Thursday, May 26 Possibly a special meeting in June Thursday, September 1 Thursday, October 13 (Special Meeting) Thursday, December 1

2 A. Call to Order The Chair called the meeting to order at 9:02 a.m. B. Introductions A round table introduction was held. C. Adoption of the Agenda The following items were added to the agenda: F Meeting Locations F CSA-Z Liquefied natural gas (LNG) Production, storage and handling F Update of the Province-wide Variance and Legacy Equipment F Joint Gas and Pressure Equipment STANDATAs F Mothballing of Pressure Equipment Mike Clancy / Marvin Kossowan moved to adopt the agenda, as amended; CARRIED D. Adoption of the Minutes The minutes were reviewed and the following corrections were made: F requirement is through the authority of regulation F isolated populated areas John Wolff / Dr. Magdi Ghobrial moved to approve the minutes of December 3, 2015, as corrected; CARRIED E. Business Arising from the Minutes F Municipal Affairs Legislation Plans and Process It was reported that AR , Pressure Equipment Safety Amendment Regulation, was adopted by Cabinet in December It was questioned regarding In-Service Inspectors and reported that this there was no resolution from the sub-council at the time this was not include in this Amendment Regulation. This will move forward through the Working Group for a potential future amendment recommendation. It was also reported that there may not be expiry dates on all future regulations and it is expected that requests would be made to open up the regulation as required. Those regulations that still contain expiry dates are: Power Engineers Regulation April 30, 2018 Pressure Welders Regulation May 31, 2020 MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 2 of 10

3 The two work groups should be reviewing these regulations and making any recommendations for changes. It is believed that with the new structure of the four working groups, this allows for the review of issues and industry feedback on an ongoing basis. A question was raised concerning outstanding items that were not included in the last Power Engineers Regulation amendment. The Technical Advisor and Erin Black will review past notes and bring forward this list. [Hantelmann / Black] It was questioned about the latest date that a regulation needs to move forward to Cabinet before the expiry date and clarified that this could take anywhere from 8 months to a year depending on the extent of the changes. Each working group to determine what might need to be consulted on, in order for Municipal Affairs to coordinate the stakeholder consultation process. [All Working Group Chairs] F Matrix Review request from Alberta Pressure Piping Contractors Association (APPCA) for a seat on Pressure Equipment Sub-council It was reported that the review of the matrix has been completed. There is now a need to review the requests for seats on the PESC. Jason Davio provided an overview of the members of APPCA, which are primarily piping fabrication companies employing a vast number of workers in the province. Several members are very active with ASME committees. Their website address is History was provided on the creation of the Alberta Welders Optimization Committee (AWOC) to address industry issues with welders and their discussions with Alberta Apprenticeship & Industry Training (AIT) for changes to the program. A list of the cross section of members will be circulated with the minutes (Handout 1). This stakeholder group provided significant input on the last amendments to the Pressure Welders Regulation. It is uncertain if there had been a previous formal request from APPCA for a seat on the Sub- Council. A discussion was held regarding the current vacancies and potential vacancies based on the proposed matrix that was accepted in principle at the last meeting. It was noted that this discussion will continue as the sub-council would have to formally request the Council to change the matrix, including both the industry sector and its nominating organization before a change can be made to Council policy. F New Standard CSA-Z767 Public Consultation It was reported that the consultation ended on October 7, It is believed that the subcouncil needs to keep an eye on this draft new Process Safety Management (PSM) Standard, its scope, application and who will enforce it. ABSA reported that this Standard was created under a group at the strategic committee level. It is understood the motivation of the document was to establish a PSM framework for Canadian operators. With a Regulator Authority Committee on Petroleum and Natural Gas meeting scheduled for June 2016, further information will be reported back to the subcouncil. MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 3 of 10

4 Members were also reminded that CSA is in the business of developing Standards but it is up to each jurisdiction to determine which Standards to use and enforce. Being no further action and this time, this item will be removed from the agenda. [Paches] F Code Development & Adoption Process It was reported that the presentation is included in the portal. Sub-council members may provide any additional comments. A summary document will be developed which will include feedback from all sub-councils. As new Regulations are adopted, the language that allows for automatic code adoption is being built into those Regulations. A report will be provided for the May 26, 2016 meeting. [Wightman] Concern was expressed regarding how industry will know which code is in force if it is not specified in the Regulation. It was suggested that AMA will need a documented process (e.g. to issue Safety Bulletins or STANDATAs) that will clarify each of the current codes in force. At the present time, it was suggested that the Pressure Equipment discipline will allow the use of the ASME code upon publication and likely make recommendation to follow their process of having the ASME code in force 6 months after publication. This can be done through a recommendation to the Minister through Ministerial Order. It was further noted that the Working Groups will need to be diligent in keep up with the proposed code changes in order to be well prepared before they are published. F. New Business F Reappointment of Izak Roux for a term to January 31, 2019 Vice Chair Jim Weiss chaired the meeting. Izak Roux and David Miller left the meeting during the discussion of both reappointments. Todd Loran / Mike Clancy moved to recommend to the Board the reappointment of Izak Roux to the Pressure Equipment Sub-Council for a term until January 31, 2019, effect February 1, 2016; CARRIED F Reappointment of David Miller to Jan 31, 2019 Mike Clancy / Dr. Magdi Ghobrial moved to recommend to the Board the reappointment of David Miller to the Pressure Equipment Sub-Council for a term until January 31, 2019, effect February 1, 2016; CARRIED F Meeting Locations It was questioned whether to consider moving the sub-council meetings between Edmonton and Calgary. It was recognized that the vast majority of the members reside in either Edmonton or Central Alberta and that it was rare for guests to attend. Considering MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 4 of 10

5 cost efficiencies and risk assessment of less traveling, consensus was reached to keep the meeting in Edmonton for the time being. F CSA-Z Liquefied natural gas (LNG) Production, storage and handling The Chief Gas Administrator was welcomed to the meeting, it was reported that the recent Gas Regulation has been adopted. The CSA LNG Standard was considered for adoption, but decided to done under complex projects. Since then, Alberta Energy Regulator (AER) confirmed that they will now be regulating LNG plants and has taken over this jurisdiction. There are still some areas that remain under the Safety Codes Act some in Gas and some in Pressure Equipment disciplines. It was suggested that the Pressure Equipment discipline work with the working group in the Gas discipline regarding clarifying jurisdiction. It was agreed that it will be helpful to industry to have documentation that clearly lays out jurisdictional boundaries for permitting and inspections. F Update of the Province-wide Variance and Legacy Equipment An update was provided on the expiry of the Province-Wide Variance on July 1, This will be supported by Certification Bodies (CB) and Inspections Bodies (IB) and it is believed they have sufficient resources to manage this. The STANDATA is being updated to include new bodies recently certification. An overview was provided of the Legacy Equipment Program for owners to manage their non-compliant inventory until they either comply or retire this equipment by An in depth discussion was held regarding whether this make sense in this economy. This led to a discussion regarding why manufacturers are allowed to sell uncertified equipment. With the number of heaters in use, certified equipment should be available. However, without enforcing the requirement to be either certified by a CB or inspected by an IB, this provides no motivation for manufacturers to get their equipment certified in the plant if the variance is allowed to continue. It was noted that CSA is in the process of drafting a standard and it is hoped this will take care of the majority of the issues. However, there will continue to be the one-of pieces of equipment that will never be approved until installed in the field. It was clarified that if field approved, this is site specific and approval is no longer valid once the equipment is moved. However, work is being done with the CBs to confidently certify products on wheels that might move from location to location, through a contractual agreement. CBs and IBs manage their own documentation and this is made available to the Chief Gas Administrator. It was clarified that for maintenance, if the piece of equipment is not a replacement in kind, then it is considered an alteration. F Joint Gas and Pressure Equipment STANDATAs All STANDATAs are being reviewed based on the adoption of new codes and standards. Feedback was sought on the following three joint STANDATAs: MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 5 of 10

6 G ABSA G ABSA [Rev1] G ABSA Liquefied Petroleum Gas Storage Vessel Installations Fuel Gas Pressure Piping in Plants Propane Storage Tanks Designed for 200 PSIG It was suggested that for G-03-11, drawings that industry is used to would be more helpful. It was asked if there are any suggestions for improvement to get these in writing and forwarded to the Chief Gas and Pressure Equipment Administrators. [All] Members were reminded that the Gas Sub-Council meetings are open to the public and anyone is welcome to attend one of their meetings. F Mothballing of Pressure Equipment A brief overview was provided on a process that was developed in the 1970 s on mothballing power plants but with the ability to quickly put these plants back into service if needed. G. Standing Agenda Items (a) Pressure Welders Working Group The Welding Examiner Syllabus was reviewed by some of the Working Group but not all of the sub-council has seen this. The Syllabus will be placed in the portal for Sub-Council s review and acceptance by letter ballot. It was reported that exam questions need to be developed and reviewed. ABSA has a process in place for examination question development and validation that will be used to make questions for examinations under the new syllabus. Industry volunteers will be needed for the validation. Jacques St-Onge will be added as a member of the Working Group. (b) Power Engineers Working Group It was reported that the 6th meeting of the working group was held on January 8, The working group has good active participation and is reviewing 4 th and 5 th class certification requirements and clarification of reduced supervision under the Power Engineers Regulation. The current regulation is also being reviewed in general. It was questioned regarding the path forward regarding Thermal Liquid Heating Systems. It was suggested that Power Engineers Working Group and the Codes and Standards Working Group review the ABSA presentation and bring forward recommendations or actions to the sub-council. The presentation and a working draft of a document that shows how thermal liquid heating systems could be handled are both on the portal. (c) PESR Codes & Standards, Design Survey/Registration and New Equipment Inspection Working Group It was reported that there have been no meetings since the last sub-council meeting. MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 6 of 10

7 (d) PESR In-Service Inspections, Repairs & Alterations and PEIM Working Group It was reported that the working group met recently and are discussing the differences between a Safety Codes Officer and an In-Service Inspector. The following was reported: An SCO s powers and duties are defined in the SCA An In-Service Inspector is authorized to perform integrity assessments as designated by their employer under the employer s owner-user or inspection company Certificate of Authorization Permit. 1) The Safety Codes Act and the Pressure Equipment Safety Regulation contains specific duties and powers for Safety Codes Officers. The Safety Codes Act establishes liability exemption for powers exercised and duties performed by a Safety Codes Officer in good faith. 2) In-service Inspectors do not have powers or duties specified in the Safety Codes Act. The liability exemption under the Safety Codes Act associated with exercising powers or performing duties does not apply to In-service Inspectors. It was recommended by the working group that the following be undertaken: Develop a position paper to articulate the difference between the ABSA SCO versus an Electrical SCO versus an In-service Inspector; Include a 3 column style like document to identify the above three duties. Include a gap analysis to identify the safety gaps, liability, authority, if any, between ABSA SCO and In-service inspectors. Present our position from the above to Brian Alford at the Safety Codes Council. Once the above is understood and resolved undertake to update the PESR or SCA to address the findings. It was further suggested that Elevator Inspectors also be included as they are also under a Designated Administrative Organization (DAO). It was suggested that the document be developed by the working group, but concern was expressed regarding the resources or expertise. It was requested that the Council look into whether resources could be available to develop a high level document to put together regarding the roles and responsibilities of the other disciplines. [Wightman] Jacques St-Onge will be added as a member of the Working Group. It was questioned regarding NDE Personnel Certification and Qualification Requirements and reported that no feedback has been received. ASME is implementing this and there is a need to look how this might impact Alberta. It was suggested the presentation at the upcoming IPEA Conference might provide some clarity. (e) Brief of Liability Protection of In-Service Inspectors It was reported that this will be addressed by the Working Group. H. Correspondence There was no significant correspondence to report on. MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 7 of 10

8 I. ABSA/Administrator Report December Incidents: Ammonia leak - small bore pipe damaged by lift equipment - 1 dead, 1 injured Instrument on a compressor failed at startup, worker injured by debris. Aerial cooler header cracked and leaked due to freeze damage. Compressor engine fire damaged some process pipe. Gasket failure in HP steam line - unsuitable replacement. Leak in process unit cause small fire following maintenance shutdown January Incidents: Heavy Oil Facility - explosion of unknown origin, 2 fatalities Fabrication shop - welder fell - 1 fatality Sight glass failed hot process fluid leaked and burned the operator s hands Propane tank - modified to produce steam, burst, 1 dead Leak from cracked weld in hydrocarbon process line - same line, 2 cases A moment of silence was held for the 5 families that lost loved ones in our industry. Information Bulletins Issued: AB-529 Pressure Equipment Exemption Order User Guide IB Overview of Amendments to the PESR There were no Code Activities to report on. J. Technical Coordinating Committee Update There was nothing new to report. K. Next Meeting The 2016 meeting schedule was reconfirmed as follows: Thursday, March 24 (Special Meeting) Thursday, May 26 SCC AGM and Conference - June 1-3, Banff Possibly a special meeting in June Thursday, September 1 Thursday, October 13 (Special Meeting) Thursday, December 1 Mike Clancy / Marvin Kossowan moved that the meeting be adjourned; CARRIED The meeting was adjourned at 1:35 p.m. MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 8 of 10

9 --- A C T I O N I T E M S --- F Municipal Affairs Legislation Plans and Process The Technical Advisor and Erin Black will review past notes and bring forward this list. [Hantelmann / Black] Each working group to determine what might need to be consulted on, in order for AMA to coordinate the stakeholder consultation process. [All Working Group Chairs] F New Standard CSA-Z767 Public Consultation Being no further action and this time, this item will be removed from the agenda. [Paches] F Code Development & Adoption Process A report will be provided for the May 26, 2016 meeting. [Wightman] F Joint Gas and Pressure Equipment STANDATAs It was asked if there are any suggestions for improvement to get these in writing and forwarded to the Chief Gas and Pressure Equipment Administrators. [All] G. (d) PESR In-Service Inspections, Repairs & Alterations and PEIM Working Group It was requested that the Council look into whether resources could be available to develop a high level document to put together regarding the roles and responsibilities of the other disciplines. [Wightman] MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 9 of 10

10 C. Adoption of the Agenda --- M O T I O N S --- Mike Clancy / Marvin Kossowan moved to adopt the agenda, as amended; CARRIED D. Adoption of the Minutes John Wolff / Dr. Magdi Ghobrial moved to approve the minutes of December 3, 2015, as corrected; CARRIED F Reappointment of Izak Roux for a term to January 31, 2019 Todd Loran / Mike Clancy moved to recommend to the Board the reappointment of Izak Roux to the Pressure Equipment Sub-Council for a term until January 31, 2019, effect February 1, 2016; CARRIED F Reappointment of David Miller to Jan 31, 2019 Mike Clancy / Dr. Magdi Ghobrial moved to recommend to the Board the reappointment of David Miller to the Pressure Equipment Sub-Council for a term until January 31, 2019, effect February 1, 2016; CARRIED K. Next Meeting Mike Clancy / Marvin Kossowan moved that the meeting be adjourned; CARRIED MINUTES: Pressure Equipment Sub-Council Meeting January 29, 2016 Page 10 of 10

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