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NEB audit on TransCanada pipeline safety practices finds room for improvement

CALGARY - A National Energy Board audit of TransCanada Corp. (TSX:TRP) pipeline safety practices says the company has addressed its most serious issues, but it's still breaking the rules in some areas.

The watchdog's report, released Monday, says the Calgary-based pipeline operator was found to be meeting legal requirements in five of nine so-called "sub-elements" of the audit.

It says TransCanada has identified the majority, and most significant, of its hazards and risks.

But there are four other areas in which the company was found to be non-compliant: hazard identification, risk assessment and control; operational control in upset or abnormal operating conditions; inspection, measurement and monitoring, and management review.

TransCanada must file a corrective action plan to the NEB within 30 days detailing how it intends to fix the problems.

The NEB announced its audit in the fall of 2012 after a then-employee of TransCanada came forward with allegations of safety lapses.

The report notes that TransCanada only made changes after the whistleblower complained, rather than dealing with them proactively with its management system.

The Canadian Press


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