ResponsestoNationalObserver

TransCanadaInvestigationReport
1. AreyouawareofchangesmadetotheNEBsreportreleasedonOct.30,2015inresponseto
requestsfromTransCanada?

2. Canyouprovideanexplanationforchangesfromthedrafttothefinalreport?

3. Whywerethewordsruptureandblowdownandmitreremovedordownplayedinthe
finalreport?

4. HowdidstatementsaboutablowdownoccurringduringrepairworkonasegmentoftheNCC
pipelineturnintoastatementthatsaidtherewasnoblowdown?

5. AdocumentthatdescribedtheblowdownprocedurethatwasreviewedbytheNEBduringits
investigationdidnothaveanydateonit.HowdoestheNEBknowwhenthisdocumentwas
produced?

6. IsitpossiblethatsomeoneatTransCanadaproduceditaftertheNEBinvestigationbegan?

7. WhatdidtheNEBdotoverifywhenthisdocumentwasproduced?

8. Wouldthishaveanyimplicationsforitsinvestigationifitfailedtoverifythisinformation?

9. CanyouexplainhowtheNEBmadefactualmistakesinitsdraftreportandneededTransCanada
tocorrectthese?

10. Ifthesefactualmistakesweremade,isitpossiblethattheremightbeothermistakes?

11. Forexample,howdoyouexplainthattheNEBdraftreportoriginallyexplainedthat
TransCanadahaddonea360degreeinspectionofalinewithcoatingdamage,priortoburying
it,whenithadnotinfactdonethis?(Thiswascorrectedinthefinalreportafteritwasflagged
byTransCanada).

12. HowcanCanadianstrustthattheNEBisadequatelyinvestigatingserioussafetyallegationsifthe
NEBisleavingkeyevidencebehindatcorporateofficesofthecompanyunderinvestigation?

13. WhydidtheNEBnotkeepacopyofTransCanadasincidentreportofitsJune17,2013incident
report?

14. WhyhastheNEBexcludedkeydetailsfromitsfinalreport,releasedonOct.30,2015,suchas
referencestoTransCanadahavingincorrectinternalrecordsaboutthelocationofaweld,orthe
internalcompanyemailsthatshowthatsomeofitsstaffwantedtopunishthewhistleblowerfor
repeatedlyaskingthemtodigupalinethatwounduphavingsomecoatingdamage?

15. WhydidtheNEBrushtotranslateandreleasethereportonTransCanadabyOct.30?

16. WhydiditcancelabriefingthathadbeenscheduledwithNaturalResourcesCanadapriorto
releasingthereport?

17. Wereyouconsultedonanyoftheeditsthatweremadetothedraftreportinresponseto
recommendationsfromTransCanada?Forexample,didyouparticipateindecisionstoremove
wordssuchasrupture,Blowdown,andmitre,fromthefinalreport?

18. AreyouawareofchangesmadetotheNEBsreportinresponsetorequestsfromTransCanada,
andcanyouprovideanexplanationforthesechanges?

19. Whywerethewordsruptureandblowdownandmitreremovedordownplayedinthe
finalreport?
20. Howwerethosestatementsinthedraftconsistentwithastatementinthefinalreportthatsaid
therewasnoblowdown?
21. HowdoestheNEBknowwhenthisdocumentwasproduced?
22. IsitpossiblethatsomeoneatTransCanadaproduceditaftertheNEBinvestigationbegan?
23. WhatdidtheNEBdotoverifywhenthisdocumentwasproduced,andwouldthishaveany
implicationsforitsinvestigationifitfailedtoverifythisinformation?
24. CanyouexplainhowtheNEBmadefactualmistakesinitsdraftreportandneededTransCanada
tocorrectthese?
25. Ifthesefactualmistakesweremade,isitpossiblethattheremightbeothermistakes?
26. Forexample,howdoyouexplainthattheNEBdraftreportoriginallyexplainedthat
TransCanadahaddonea360degreeinspectionofalinewithcoatingdamage,priortoburying
it,whenithadnotinfactdonethis?
27. WhydidtheNEBnotkeepacopyofTransCanadasincidentreportofitsJune17,2013incident
report?HowcanCanadianstrustthattheNEBisadequatelyinvestigatingserioussafety
allegationsiftheNEBisleavingevidencebehindatcorporateofficesofthecompanyunder
investigation?
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28. WhyhastheNEBexcludedkeydetailsfromitsfinalreport,suchasreferencestoTransCanada
havingincorrectinternalrecordsaboutthelocationofaweld,ortheinternalcompanyemails
thatshowthatsomeofthecompanystaffwantedtopunishthewhistleblowerforrepeatedly
askingthemtodigupalinethatwounduphavingsomecoatingdamage?
29. Asgeneralcounsel,didyoumakeanyrecommendationsthatledtoeditsorchangestothe
NEBsOct.30reportfollowingitsinvestigationintosafetyallegationsbyTransCanada?
30. Didyoumakeanyrecommendationsdirectlyasaresultofchangesthatwererecommendedby
TransCanada?

Responses
SafetyandenvironmentalprotectionaretheBoardstoppriorities.
TheBoardthoroughlyinvestigated16allegationsprovidedbyathirdpartywhistleblowerin2014
and2015,regardingregulatorycompliancebyTransCanada.
TheBoardsinvestigationwasfair,rigorousandimpartial.TheBoardsinvestigationreportwas
releasedpubliclyon30October2015.
Theinvestigationreportconcludedthatnoimmediatepublicsafetyorenvironmentalriskswere
associatedwithanyofthewhistleblowersallegations.
Sixofsixteenallegationswerepartiallysubstantiatedandtencouldnotbesubstantiated.
TheBoardevaluatedTransCanadasresponse,throughcorrectiveandpreventativeactions,tothe
sixallegationsthatwerepartiallysubstantiatedthroughthecourseoftheinvestigation.TheBoard
alsoconcludedthatTransCanadahasimplementedappropriatecorrectiveandpreventativeactions
tomitigateall16allegations.
TheNEBdoesnothesitatetotakeactionifsafetyorenvironmentalprotectionareatrisk.

WhistleblowerQuestions
OnApril24,youandanotherstaffmemberattheNEBsentinformationaboutaninvestigation
andawhistleblowerinemailstoAlanMurray,theformerchiefengineeroftheNationalEnergy
Board.
1. DoyoubelievetheseemailswereabreachofconfidentialinformationcontrolledbytheNEB?

2. Doyoubelievethatthisleakviolatedtheprivacyofthewhistleblower?

3. DidyouordidanyoneelseattheNEBcontactthewhistleblowertoinformhimofthisbreachofhis
privateinformation?

4. WhatactionsdidyouordidothersattheNEBtaketoaddressthisbreach?Ifnoactionsweretaken,
canyouexplainwhy?

5. WhywastheformerchiefengineerattheNEBinvolvedinthisdiscussion?

6. ThewhistleblowerallegesthatstaffencouragedhiminSeptember2014toacceptaseverance
packageofferedbyTransCanadaandtonottakelegalactionagainstthecompany.Wereyou
presentforanydiscussionsaboutthisissueordidyouofferthisadvicetohim?

7. Ifsuchadvicewasgiven,wouldithavebeenappropriateforstafftomakethesesuggestions?

8. Canyouconfirmthatyoumadethefollowingcommentstoawhistleblowerinaphoneconversation
onOct.30anddoyouwishtoexplainanyofthecontext?Itsnotlikeweareactuallygooutthere
andcrossexaminestaffatTransCanada.Ifyouhavenames,Idon'tknowwhatthosenameswould
helpusaccomplish.

Wedon'tputthemunderoathoranythinglikethat.Werelookingfordocumentation.Thisisnota
criminalcase.Thekindofstuffwerelookingforisrecords,pictures,thatkindofstuff.Thatsthe
kindofstuffthathelps.

Wewanttoavoidhavingthosekindofoneoffconversationswherewehavecoffeeandthingslike
that.
SeveralindependentexpertsIcontactedhavereviewedsomeoftheevidencereferencedinthe
previousquestions.TheyhavesaidthatitshowsthattheNEBisdoingsloppyworkthatputspublic
safetyatrisk.

9. Canyouprovidearesponsetothis?

10. WasitappropriateforstaffmembersoftheNEBtoparticipateinthismeetingatthecoffeeshop?

11. Didyouprepareanagendaandtakeminutesforthismeeting?

12. Ifnot,howdoyoujustifynotdoingsoformattersthatwerebeforetheNEBormattersthatwould
bebeforetheNEB?

13. Doyoubelieveitsappropriateforaregulatortodiscussserioussafetyissueswiththecompaniesit
ispolicingincoffeeshops?

14. WasMr.YeomanspresentatthecoffeemeetinginDecember?

15. OnDecember12,2014,youwrotethefollowinginanemailtosomeoneatTransCanada:Asarule,
Imreallyhappytohavetheseinformaldiscussionsandtheyalmostalwaysturnouttobeuseful.
However,sincethesubjectisaLTOandthereforeamattertobebroughtbeforetheBoard,Ineed
tobealittlecarefulIdontderailtheprocess.Havingsaidthat,IllseeifIcangetbacktoyouthis
afternoon.Canyouexplainthecontextofthisemail?

16. Howcaninformaldiscussionsaboutsafetyrelatedissuesbemorehelpfulthanformalandonthe
recordcommunicationsbetweentheregulatorandthecompaniesitissupposedtobepolicing?

17. OnApril10,2015,youexchangedemailswithyourpredecessor,AlanMurray,aboutissuesrelated
tothewhistleblowersallegations.Doyoubelieveitwasappropriatetoshareinformationaboutan
ongoinginvestigationandtosharepersonalinformationaboutawhistleblowerwithathirdparty?

18. Wasitappropriateforyoutouseapersonalcellphonetopursueaninvestigationintosafety
allegations?

19. IhaveviewedatextmessagethatyousentonMay2,2014toawhistleblowerthatsaid:Justto
clarify,Iwillnotdoanythingtojeopardizeyourjob.Ifthereisnowaytodothis,thenIguesswewill
havetodropituntilanopportunityarisesinthefuture.Didyoudiscussthismatterwithanyone
outsidetheNEB?

20. IhaveviewedatextmessagethatyousentonMay2,2014toawhistleblowerthatsaid:Justto
clarify,Iwillnotdoanythingtojeopardizeyourjob.Ifthereisnowaytodothis,thenIguesswewill
havetodropituntilanopportunityarisesinthefuture.Didyoudiscussthismatterwithanyone
outsidetheNEB?

21. ThewhistleblowerallegesthatyoudiscusseditwithaformerchiefengineeroftheNEBandthathe
encouragedyoutonotpursuethematterimmediately.Isthisaccurateorcanyouexplainwhatwas
discussedwithanythirdparty?

22. Wasitappropriateforyoutouseapersonalcellphonetopursueaninvestigationintosafety
allegations?

Responses
SafetyandenvironmentalprotectionaretheBoardstoppriorities.
Afair,rigorousandimpartialinvestigationofallegationsagainstTransCanadawasconducted,and
theBoardsinvestigationreportpublished.
TheNEBtakesdiscussionsaboutpipelinesafetyseriouslyregardlessofwheretheyoccur.Wewill
continuetotalkaboutpipelinesafetywithCanadiansinoffices,coffeeshops,landownershomes,
farmersfields,smalltowns,andbigcities.
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FurthertocomplaintsreceivedregardingtheconductofBoardstaff,aninternalreviewwas
conductedofstaffsresponsetowhistleblowerreporting,includinginteractionsofstaffwiththe
whistleblowerandindustryrepresentatives.Furthertothereview,itwasdeterminedthat
improvedguidancetostaffregardingwhistleblowerreportsandassociatedcommunications,and
improvementstotheBoardsproceduresforprocessingwhistleblowercomplaintswasrequired.
TheNEBhasrecentlydevelopedadetailedwhistleblowerproceduretoclarifyexpectationsofstaff
inrespondingtowhistleblowerallegations,andinteractionsbetweenstaff,whistleblowersand
industryrepresentatives.Thoseprocedureswillsoonbereleasedpublicly.
NEBstaffdonotofferlegaladvicetopeopleoutsideoftheNEB.

StaffSurveyQuestions
1. WhyistheNEBtryingtohideresponsesandcommentsthatemployeeshavemadeabouttheir
workplaceormanagementinitsresponsetoaccesstoinformationrequests?

2. WouldyoubeabletoexplainhowtheNEBcanjustifykeepingthesetypesofcommentssecretwhen
CSIS,arguablyoneofthemostsecretiveorganizationsingovernment,hasreleaseddetailed
commentsandfeedbackfromstaffaboutitsworkplace?

3. DoyoubelievethatstaffattheNEBtrustmanagementandmembersoftheBoard?

4. Ifnot,whatisNEBdoingtoreestablishtrust?Doesitbelievethata$500KcontractwithErnst&
Youngcansolvetheproblems?

Responses
TheNEBdoesnotmakeinternalstaffsurveysavailablepublicly.
AllredactionsofrecordsthroughATIPrequestsaremadebyATIPstaff,withintheparametersofthe
AccesstoInformationAct.
Athirdpartyconsultant(Ernst&Young)wasretainedbytheBoardtoprovideexpertiseinthe
Boardsreviewofgovernanceandoperationalframeworks,aswellaschangemanagementatthe
Board.ThecompanyisaleaderinthefieldandhasfulfilledasimilarfunctionattheAlbertaEnergy
Regulator(AER).
Ernst&YoungassistedtheBoardindevelopingabestinclassgovernanceframework,referredtoas
theBoardMemberOperatingModel;acomprehensiveChangeManagementPlan;andisassisting
withthedevelopmentofaManagementOperatingModel.
AcopyoftheBoardMemberOperatingModelwillbereleasedpublicly.
Obtainingexternal,expertreviewandindependentinputongovernanceandoperational
frameworksisabestpractice.
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ReviewingandupdatingthesesframeworksensuresthattheNEBsadministrationremainseffective
tosupportitsworkasCanadasnationalenergyregulator.

DeletedEmail
1. AreyouawareofacaselastAugustwhenmembersofseniormanagementcollectivelydecidedto
deleteacorporaterecordinordertohideamistakemadebythegroupleaderofsecurityand
preventitfrombeingreleasedthroughanaccesstoinformationrequest?

2. Ifyouareawareofthiscase,whatdidyoudoaboutitwhenyoufoundout?

3. WereyoucontactedbyanyNEBstaffmemberswhoexpressedconcernsaboutthedecisionto
deleteacorporaterecord?

4. WereyouorwereanyofyourcolleaguesinlegalservicesconsultedinAugust2015whenanNEB
vicepresidentorderedthedeletionofanemailintheinboxofLeeWilliams?

5. Iflegalserviceswasconsulted,whyistherenopaperrecordoftheseconsultationsintheNEBs
responsetoanaccesstoinformationrequestwiththefilenumberA201525?

6. AreyoufamiliarwithCanadasAccesstoInformationActandareyouawareofwhetheranyoneat
theNEBviolatedthislegislationbyattemptingtohideordeleterecords?

7. WhatwasintheemailthatwasdeletedbytheNEBinAugust2015?

8. Whattheurgencyindeletingtheemailfromtheinboxofanemployeewhowasnotintheoffice?

9. Whydidyouorderthedeletionofanemail?

10. Didyouconsultlegalservicespriortoissuingtheinstructionstodeletetheemail?

11. Ifyoudidconsultlegalservicespriortoissuingtheinstructionstodeletetheemail,didyoukeepany
recordsorevidencethatyouhaddonethisconsultationwiththemandwhatdidtheytellyou?

12. Didaseniormanageraboveyourecommendthatyouissuetheorderstodeletetheemail?

13. Ihavereceivedallegationsfromseveralsourcesthatthereisevidenceinthedeletedemailthatan
NEBemployeesaidofdidsomethinginappropriateinadiscussionorcommunicationwithLion's
GateRiskManagement.Wouldyoubeabletocommentonthatallegation?

14. IhavealsoreceivedanallegationthatseniormanagersattheNEBdecidedtohavetheseemails
deletedinordertohideevidenceofamistakethatwasmadebyNEBemployee.Wouldyoubeable
toprovidemewithacommentonthatallegation?
15. AreyoufamiliarwithCanadasinformationlegislationandareyouawareofwhetheranyoneatthe
NEBhasviolatedthislegislationand/orcommittedanindictableoffense?

Responses
AnNEBstaffmember,CraigLoewen,providedyouwiththefollowingresponseonthistopic:

ANEBstaffmemberprovidedpersonalinformation(anemployeename)toapotentialcontractor
withoutvalidatingthepotentialcontractorheldavalidsecurityclearance.

ThepotentialcontractorusedthepersonalinformationinanemailtheysentbacktotheNEB.As
thisemailwasdeterminedtoonlybenecessaryforalimitedtimeinamatterthattheBoardchose
nottopursue,andbecausetheNEBwantedtomitigatetheriskofharmrelatedtotheemployee
whoseinformationwasinadvertentlyreleased,NEBstaffmadethedecisiontodeletetheincoming
emailfromtherecipientsemailinbox.TheNEBemployeewhoreceivedtheemailisawarethatit
wasdeleted.

InafilebeforetheInformationCommissionerofCanada(ref:3215001675)theNEBhasoutlined
whytheemailwastreatedasatransitorydocumentanddeleted.Therequestedemailhadno
enduringbusinessvalueanddidnotsupportthecarryingoutoftheNEBsfunctions.TheNEBfirmly
believesthisemailwasdeletedincompliancewiththeAccesstoInformationAct.

StaffSurvey
1. WhyistheNEBtryingtohideresponsesandcommentsthatemployeeshavemadeabouttheir
workplaceormanagementinitsresponsetoaccesstoinformationrequests?

2. WouldyoubeabletoexplainhowtheNEBcanjustifykeepingthesetypesofcommentssecretwhen
CSIS,arguablyoneofthemostsecretiveorganizationsingovernment,hasreleaseddetailed
commentsandfeedbackfromstaffaboutitsworkplace?

3. DoyoubelievethatstaffattheNEBtrustmanagementandmembersoftheBoard?

4. Ifnot,whatisNEBdoingtoreestablishtrust?Doesitbelievethata$500KcontractwithErnst&
Youngcansolvetheproblems?

Responses
TheNEBdoesnotmakeinternalstaffsurveyresultsavailablepublicly.
AllredactionsofrecordsthroughATIPrequestsaremadebyATIPstaffwithintheparametersofthe
AccesstoInformationAct.
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PersonalQuestions
1. WhydidtheNEBnotmakeanyeffortstoinformthepubliclastsummerthatoneofitsown

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employeeshadbeenchargedinconnectionwithamurder?

WouldyoubeabletoconfirmwhetherthediscussionbetweenyouandtheEFAPcounsellorfrom
HomewoodalsotookplaceontheSunday,July5,rightbeforeyousentoutyouremail?

Wasthediscussioninpersonoroverthephone?

Whatwasyourjobtitleatthetimethisemailwassentout?

Currently,areyoustillanactingleaderofhumanresources?

WouldyoubeabletocommentonthecurrentemploymentstatusofJoshuaBurgess?

IshestillanemployeeoftheNEB?

DoesMr.BurgesshavearelativewhoisstillanemployeeoftheNEB?

Responses:
ItisinappropriatefortheNEBtocommentonpersonalmatters,includingthosesubjecttopolice
investigationorprosecution.TheNEBdoesnotcommentonmattersbeforethecourts.