Renee Lukasser

From: Coastal Gaslink Sent: Thursday, May 19, 2016 4:00 PM To: Renee Lukasser Subject: Coastal Gaslink Project Activity Update #41: May-June 2016 Attachments: Coastal Gaslink Project Activity Update 41 (May-June 2016).pdf; 2016 05 Coastal Gaslink Potential Sun House Alternate Route.pdf; Coastal Gaslink 2013-2015 Field Program Summary May 2016.pdf; footer

Good Afternoon,

Please find attached the Coastal Gaslink Project Activity Update #41 for May- June 2016. This update is being sent to keep you informed on project milestones and planning progress. As always, your feedback is appreciated.

This month's report contains information about the Sun House Alternate Route, in response to feedback from Wet'suwet'en leaders who identified a possible alternate route that will be further away from important cultural areas. We are conducting the work to prepare for potential applications to the Environmental Assessment Office and the BC Oil and Gas Commission later in 2016 to add the Sun House alternate route as an option for routing. The alternate route is on average 3.5 km south of the approved Environmental Assessment Certificate corridor, beginning approximately 21 km southwest of Burns Lake, and running 41 km west, to a point approximately 25 km south of Houston. We will conduct field work on the Sun House alternate route through the 2016 season that will be used to inform regulatory applications which may be filed later this year. A map of the Sun House Alternate Route is attached to this email.

Also included is our 2013-2015 Field Program Summary. It includes an overview of environmental and engineering field programs completed for the Coastal GasLink Project from 2013 through 2015, inCluding the Morice River North Alternate (MRNA) Route, to collect data in support of regulatory approvals, permitting and detailed engineering design. This report also provides a summary of field programs planned for the Project during 2016.

Please let us know if you would like to be removed from the distribution list, or if you would like the update sent to anyone else in your organization.

If you have any questions or comments, please don't hesitate to get in touch.

Jaimie Harding Community Relations Lead Coastal GasLink Pipeline Project Ltd. ~~ ~:!~~!~!da Toll Free: (855) 633-2011 e-mail: co astal gaslink@ transcan a da~ om website: www.coastalgaslink.com

1 Coastal Gaslink Pipeline Project

Project Activity Update #41 May - June 2016

Coastal Gaslink's project team is continuing with construction planning, working to be ready to begin construction pending a positive Final Investment Decision (FID) by the joint venture partners of LNG (our customers), expected in late 2016. If the LNG Canada partners elect to proceed with the project at that time, pipeline construction would begin in 2017. Our in-service date will be designed to coincide with the operational requirements for the LNG Canada facility. Our construction planning entails ongoing field work, as well as continued engagement with regional districts, municipalities, other public agencies, landowners and Aboriginal groups.

1. Environmental Field Programs Since early 2013, Coastal GasLink has conducted field programs to collect information related to permitting applications, compliance with regulatory requirements and construction planning.

The following field work is scheduled for the coming months:

Wildlife Surveys This program includes both aerial and ground-based surveys. Information gathered in 2016 will help us to build on work done in 2013, 2014 and 2016 to support construction planning and mitigation strategies for valued wildlife features, such as raptor nests, wildlife dens and mineral licks. Qualified professional wildlife biologists are preparing to initiate a four-day aerial survey program to assess the status of known raptor nests and general wildlife habitat potential across the project area, from the Peace region to . Studies are scheduled to commence in late May and early June. Ground-based wildlife surveys are expected to resume in mid-June.

Vegetation and Wetland Surveys Vegetation and wetland surveys are anticipated to begin in mid-June. This program is intended to identify the location and assess the seasonal condition of rare plant populations. Wetland surveys gather further information on species presence, surface water characteristics, soil moisture and nutrient content, soil texture and wetland classification. Information from vegetation and wetland surveys supports the refinement of the project construction footprint and the identification of site-specific mitigation and construction techniques.

Archaeological Field Program The purpose of the Project's archaeological field program is to identify and evaluate archaeological resources within the Project footprint, assess potential Project effects on archaeological resources, and recommend viable alternatives for avoiding or minimizing adverse effects to support project permitting. Archaeological crew sizes range to as many as 14 participants, and the program is planned to consist of an equal balance of professional archaeologists and participating members of the local First Nation community. Our 2016 program resumes in early June, focusing on sites along the project corridor in the Peace River region near Chetwynd and near the community of Vanderhoof in the Regional District of Bulkley-Nechako.

For more information: 1.855.633.2011 (toll free) [email protected] vw.tw.CoastaiGaslink.com Page 1 of 4

Trans Cana d a Coastal Gaslink Pipeline Project ((~ Project Activity Update #41, May- June 2016 In b usmess t o d e I/V el Coastal Gas ink Pipeline Project

2. Engineering· Field Programs

Borrow Pit Investigation Coastal Gaslink is building an inventory of rock and gravel resources to be available for potential use during construction. Since October 2014, we have conducted a program of geotechnical investigations at selected sites ranging from the Peace River Regional District in the east to the central part of the Regional District of Bulkley-Nechako in the west. During these investigations, boreholes are drilled and test pit's excavated to assess the quantity and quality of resources and the potential for future development. Crews are typically set up for four or five days at each location. Work conducted in the first half of May focused on a location northwest of Vanderhoof and on locations north and west of Tchesinkut Lake, all within the Regional District of Bulkley-Nechako. Work is planned to continue into early June, northwest of Vanderhoof.

Rock Investigation Program Coastal GasLink's engineering team is conducting a program to determine depth to bedrock and rock characteristics along the project right-of-way (RoW) in support of construction planning. Small test holes (approximately two inches in diameter) are drilled to average depths of 2.5 metres with the use of lightweight gas-powered hand augers and coring drills. Samples are then sent for laboratory testing. No tree clearing is required for this activity. Access is mainly by truck or ATV, with potential for limited helicopter use where there is no road access. Recent and upcoming work is as follows: • In the Peace River region, work has recently concluded over a 76-kilometre section from south of Groundbirch to the Sukunka Falls area; • In Bulkley-Nechako, at locations in the vicinities of Tchesinkut Lake, Bald Hill and Goosly Lake, recently concluded; • In Fraser-Fort George, over a 70-kilometre section from the upper Anzac River to the Racoon Lake vicinity, through May; • In Bulkley-Nechako, directly north of Vanderhoof, in early June; and, • In Bulkley-Nechako, over a 19-kilometre section starting at Endako and running west, in early June.

Glaciomarine Clay Investigation Program at Kitimat Coastal Gaslink's engineering team is conducting a geotechnical assessment and investigation of possible glaciomarine clays which may be present in the westernmost 10 kilometres of the proposed pipeline alignment- that is, on the approach to the District of Kitimat, and within the District. The scope of work includes a desktop review of existing data, site reconnaissance, and investigation with the use of hand augers and a Cone Penetration Test (CPT) rig. Hand augering will require a 2-inch diameter auger head, with holes drilled to a depth of between 2 and 4 metres, depending on soil conditions. The CPT rig will be stationed on existing trails through Rio Tinto and Horizon North land parcels. The rig will push an instrumented cone into the soil surface at a controlled rate. As the cone penetrates the soil, various soil parameters and data will be recorded. No tree clearing is required .for these activities.

For more information: 1 855.633 2011 (toll free) [email protected] www.CoastaiGaslink.com Page 2 of 4

Trans Cana d a Coastal Gaslink Pipeline Project ((~ Project Activity Update #41, May- June 2016 In b us mess t o d e IJVCI' Coastal Gaslink Pipeline Project

3. Coastal Gaslink receives Pipeline and Facilities Permits from OGC The Coastal GasLink Pipeline Project has received the last of its pipeline and facilities permits from the BC Oil and Gas Commission (OGC), pursuant to Section 25 of the Oil and Gas Activities Act. Coastal Gaslink now has all of the major provincial regulatory approvals required for the construction and operation of the proposed pipeline and related facilities. The OGC permits provide Coastal GasLink with the authority to begin construction and operation of the proposed Coastal Gaslink pipeline and related facilities. Once built, our pipeline will safely deliver gas from west of Dawson Creek to the proposed LNG Canada natural gas liquefaction facility at Kitimat. The OGC has issued eight pipeline permits pertaining to pipeline construction and operation, and two for related facilities: a natural gas compressor station and meter station near Ground birch, and a natural gas metering station at Kitimat. The receipt of these permits is a key regulatory milestone for the project, and follows receipt of our Environmental Assessment Certificate from the BC Environmental Assessment Office in October 2014.

4. Morice River North Alternate Route After consultation with Aboriginal groups in the Project area near the Morice River, we applied in November 2015 to add an alternate route to our Environmental Assessment Certificate and our BC Oil and Gas Commission permit. Since the launch of the Coastal GasLink project in 2012, we've been seeking feedback on our plans; this is an example of how we listen and respond to that feedback. The proposed alternate route is about 5 km north of our approved route and approximately 56 km long. Both the approved route and the proposed alternate route have been previously exposed to logging. We collected environmental, archaeological and engineering information on the alternate route during 2015. This work will allow us to ensure that cultural and historical resources are identified, respected and protected, and the project is designed, constructed and operated safely while respecting the environment. We are confident both routes could be built successfully, and both options reflect TransCanada's high standards and commitment to safety and environmental protection. The EAO has reviewed the application with assistance from a working group comprising representatives from , local government and government agencies. The OGC has also consulted w ith affected First Nations as their review of our application proceeds. We'll decide on the final route once we have regulatory approval for the alternate route and have fully considered both options. This includes more detailed design work on construction planning, taking into account commercial, cultural and environmental considerations, as well as cost and schedule.

5. Sun House Alternate Route Coastal GasLink is responding to feedback from Wet'suwet'en leaders who identified a possible alternate route that will be further away from important cultural areas. We have several examples like this where we've identified alternate routing at other locations along the pipeline route that resulted from feedback. We are conducting the work to prepare for potential applications to the Environmental Assessment Office and the BC Oil and Gas Commission later in 2016 to add the Sun House alternate route as an option for ro uting our pipeline. The alternate route is on average 3.5 km south of the approved Environmental Assessment Certificate corridor. It begins approximately 21 km southwest of Burns Lake, and runs 41 km west (to a point approximately 25 km south of Houston). We will conduct field work on the Sun House alternate route through the 2016 season that will be used to inform regulatory applications which may be filed later this year. Our field work includes archaeology, engineering investigations and pre­ construction surveys that will mark wildlife features, site specific vegetation, etc. If Coastal GasLink decides to submit the applications, the intent would be to amend two items- our approved Environmental Assessment Certificate (EAC) from the BC Environmental Assessment Office (EAO), and our BC Oil and Gas Commission permit. We'll decide on the final route when we have fully considered all options. This includes field work, more detailed design work on construction planning, taking into account commercial, .cultural and environmental considerations, as well as cost and schedule.

For more information:

1.855.633.2011 (toll free)

[email protected]

www.CoastaiGaslink.com Page 3 of 4

I Trans Cana d a Coastal Gaslink Pipeline Project Project Activity Update #41, May- June 2016 ((~ I n b us mess t o d e I1ver Coastal Gaslink Pipeline Project

6. · Management Plans Through 2013, Coastal Gaslink developed a comprehensive assessment of potential adverse effects of the Project in accordance with the Application Information Requirements issued by the BC EAO. An Application for an Environmental Assessment Certificate was filed with the EAO in January 2014. After detailed public review, the EAO issued an Environmental Assessment Certificate in October 2014. Conditions attached to the EAC require the development of several management plans prior to construction. Coastal GasLink's Environmental Management Plan (EMP) is a primary management plan, and was included in our EAC Application. It was submitted in revised form to the EAO in October 2015 for further review and approval. The EMP provides a toolbox of recommended environmental protection measures and commitments to avoid or reduce potential adverse effects from construction- measures and commitments which are to be carried out by Coastal Gaslink and its contractors. The environmental management measures set out in the EMP are based on past project experience, TransCanada standards (adopted by Coastal GasLink), industry-accepted best management practices and additional measures identified during the environmental assessment and regulatory review process and during management plan consultation. Appendices to the EMP include various contingency plans and management plans such as a Caribou Mitigation and Monitoring Plan, a Heritage Resource Discovery Contingency Plan, an Invasive Plant Management Plan, a Traditional Land Use Sites Discovery Contingency Plan, a Traffic Control Management Plan, a Water Quality Monitoring Plan, and a Wildlife and Wildlife Habitat Management Plan. Comments were received from Aboriginal groups and regulatory agencies on the draft versions of these management plans during 2015. The conditions attached to the EAC also require development and implementation of a Socio-economic Effects Management Plan (SEEMP), describing the approach to monitor and report on mitigation implementation specific to social and economic infrastructure and services during construction. After extensive discussions with and comment from local governments, provincial agencies and Aboriginal groups, Coastal Gaslink submitted a SEEMP to the EAO in October 2015 for review. Coastal GasLink obtained approval of the SEEMP on May 13, 2016 to satisfy condition 24 of our Environmental Assessment Certificate. The EAO has completed their review of the management plans and the approvals are in place. If Coastal GasLink decides to proceed with construction of the proposed Morice River North Alternate (MRNA) Route, management plans will be updated as appropriate before construction begins.

7. In the Community Coastal Gaslink and TransCanada were proud to be a Gold Sponsor of the North Central Local Government Association (NCLGA) AGM and Convention in Dawson Creek from May 4 to 6. The NCLGA AGM gave project representatives a chance to discuss project plans and get the latest news from community leaders across our project area . Coastal Gaslink and TransCanada's Prince Rupert Gas Transmission project teams are excited to be a Silver sponsor of the BC Chamber of Commerce Annual General Meeting, taking place in Kelowna from May 29 to May 31. The conference· provides an opportunity for business people from around the province to gather and discuss the issues that affect local communities. TransCanada is pleased to sponsor the Canadian Federation of Municipalities convention in from June 2 to June 4. We will be greeting delegates at two booths in the convention hall, and hosting a reception at the Delta Hotel on June 4 from 7:00 p.m. onwards. As our project progresses, we continue to gather input, share information and answer questions from potentially affected landowners, local governments, Aboriginal groups and the public.

For more information: 1.855.633.2011 (toll free) coastalgaslink@transcanada .com

WWIN.CoastaiGaslink.com Page 4 of 4

Trans Cana d a Coastal Gaslink Pipeline Project Project Activity Update #41, May- June 2016 ~~ I n b usmess t o d e I 1ver