IMPERIAL OIL - Approval for variance from the Liquid Fuels Handling Code

Liquid Fuels Handling Code (LFHC) Requirements that Would Not be Met:

5.6.1.3. Bulk plant tanks receiving product shall be equipped with an overfill protection

device for each storage tank that will automatically shut off the flow to the tank.

Why the Code Would Not be Met

Imperial needs to bypass the overfill protection automatic shut off valve in order to complete the offload of the vessel.

Safety Assessment

Information provided by Amer Dib, P.Eng:

Vessel receipts are staffed with two operators at the terminal and one operator at the dock. One terminal operator is an Imperial employee acting as the “Imperial person-in-charge” responsible for the checks below:

• Planning prior to vessel arrival:
  • Automatic tank gauges are verified to be accurate against a physical dip of the tanks prior to every receipt
• Space available is calculated to confirm adequate room in advance of scheduled delivery

• Pre-discharge meeting includes Imperial Operations and Vessel Crew discussing:
  • Planned discharge sequence, including volume to be discharged into each tank which is endorsed by the Vessel Chief Mate and Vessel Captain/Master
  • Emergency shutdown signals are confirmed with vessel crew prior to discharge (stop, stop, stop)
  • Establish and test radio for constant communication between Imperial Operators and Vessel Crew during product receipts
  • Establish plan for back-up communications by intrinsically safe cell phone
• During product receipt:
  • Tanks have a safe-fill level that Imperial operations use as the maximum level of the

tank for any planned product receipt including calculation of “space available”

• Beyond the safe-fill level, the tanks have a high-level alarm (audible alarm and visible strobe activates both at the site and at the dock), and a high-high level alarm (audible alarm and visible strobe activates at the site and at the dock, plus activation of the automatic motor operated valve being discussed)
  • High-level and high-high level alarms are function tested quarterly
  • Product receipts are monitored in-person by site operators who are stationed at the dock and at the terminal
  • Hourly field checks are performed by IOL person-in-charge, including tank gauges (vs expected final level), receipt rate (vs max receipt rate and current vessel discharge rate), and volume remaining to be discharged (for the receiving tank)

In summary, there is one product receipt line included in this variance request for both distillate and gasoline products which runs from the dock to the tanks. The line has an automatic MOV that is activated to close if the high-high level alarm system on the tank is activated. If the automatic valve fails, it will be required to bypass the valve in order to unload the vessel and maintain critical fuel supply to Northern Ontario. Imperial is requesting a variance to section 5.6.1.3 of the Ontario Liquid Fuels Handling Code to allow us to implement a permanent emergency procedure to operate and receive product to our tanks while the automatic action is bypassed on these valves.

The Imperial Sault Sainte Marie Terminal receives about 2 vessels per month, with some fluctuation depending on seasonal demand for some products. It is an important source of motor and furnace fuels for the population in Northern Ontario. We are requesting permanent approval for this emergency variance procedure to be used only in case of a failure of the MOV. In case of use of this procedure, Imperial will notify TSSA prior to use of the procedure and when the automatic tank overfill protection is restored. Please note, Imperial intends to operate and receive/unload vessels with the required automatic tank overfill protection in place, the procedure in this variance request is intended to be used only by exception and not as a “standard operating procedure”.