Canadian regulator asks TransCanada to stop drilling at McDermott Extension project

TransCanada’s wholly-owned subsidiary Nova Gas Transmission (NGTL) has received an order from the National Energy Board (NEB) of Canada to stop all further drilling activities at its McDermott Extension natural gas pipeline project in Alberta.

The company will immediately halt all horizontal and directional drilling activity under the Athabasca River about 75km north of Fort McMurray.

The suspension order was issued after detecting the release of a clay-based fluid that is used to aid drilling into the river during a period from 23 October to 9 November.

NEB said that it will continue to investigate the incidents and also evaluate the drilling mud composition and volumes that were released.

According to the regulator, NGTL is currently in non-compliance with its regulations for its failure to adhere to the NEB-approved Environmental Protection Plan.

Under Section 48 of the onshore pipeline regulations, the company is required to ‘develop, implement and maintain an environmental protection programme that anticipates, prevents, manages and mitigates conditions that could adversely affect the environment.’

NEB inspection officer said that NGTL experienced and reported four incidents that are related to drilling fluid releases into the river.

One release was detected along the western channel on 23 October and three releases along the eastern channel on 1, 7 and 9 November at the same location.

Following the 9 November incident, NGTL halted drilling operations and the NEB Inspection Officer requested Material Safety Data Sheets (MSDS) for the released drilling fluid additives on 12 November.

After receiving the MSDS information on 13 November, the officer reviewed and said that the toxicity of the drilling fluid has not been clearly established.