SCHEDULE 1

Written Evidence of SEMI and Imperial RH-2-2010

ACCESS TO GROWTH MARKETS

TAB 3

TABLE OF CONTENTS – Southern Access Upstream Expansion, Stages 1A and 1B

I. Application Overview/Executive Summary

II. Project Description Overview & Engineering A. Engineering Design Details – Stage 1A B. Engineering Design Details – Stage 1B C. Engineering Design Philosophy and Onshore Pipeline Regulations D. OPR s.43 Requirements E. OPR s.44 Requirements F. Alternatives

III. Environmental and Socio-Economic Assessment – Stage 1A (Deactivation of NPS 48 Loops from KP 37 to Hardisty Terminal) A. Description of the Environmental and Socio-Economic Setting B. Effects Assessment i. Method of Predicting Potential Effects ii. Spatial & Temporal Boundaries iii. Mitigation Measures and Environmental Protection Plan iv. Identification and Analysis of Effects C. Cumulative Effects Assessment D. Inspection, Monitoring and Follow Up

IV. Environmental and Socio-Economic Assessment – Stage 1B (Hydrostatic Test of Line 3 from Hardisty Terminal to KP 207.83) A. Description of the Environmental and Socio-Economic Setting B. Effects Assessment i. Method of Predicting Potential Effects ii. Spatial & Temporal Boundaries iii. Mitigation Measures and Environmental Protection Plan iv. Identification and Analysis of Effects C. Cumulative Effects Assessment D. Inspection, Monitoring and Follow Up

V. Economics A. Supply B. Transportation Matters C. Markets D. Financing

VI. Public Interest/Consultation A. Principles and Goals of the Public Consultation Program i. corporate policy – public notification and consultation principles ii. Goals of the Early Public Notification program B. Design of the Public Consultation Program i. Early Public Notification Program for Purposes of Stakeholder Communications and Consultation ii. EPN Program Description C. Implementing the Public Consultation Program i. Details of the Early Public Notification Program ii. EPN Outcomes

VII. Attachments Tab 1 Environmental and Socio-Economic Assessment References Tab 2 Vascular Plant Species of Concern in the Natural Subregion of the Proposed Project Tab 3 Vertebrate Species of Concern in the Natural Subregion of the Proposed Project Tab 4 CAPP Letter of Support and Appendix 2 Tab 5 Enbridge Stakeholder Consultation Policy Tab 6 Area Resident’s Letters Tab 7 Drawings Tab 8 Capacity Definitions

B. TRANSPORTATION MATTERS

The “Enbridge Pipeline system” originates in with connections to further receive or deliver Canadian crude oil and products at Hardisty; Kerrobert and Regina, ; and Cromer and Gretna, . In the U.S., Enbridge Pipeline system connects with the Enbridge Energy Partner’s Lakehead system. Crude oil is delivered to the Northern Tier refineries in and Wisconsin. Enbridge Pipeline also serves the and Midwest markets of , Toledo/Detroit and Warren, Pennsylvania. Through a connection to the newly reversed Spearhead Pipeline at Chicago, Canadian crude oil can access the southern PADD II Cushing, Oklahoma market. Via a connection to the Mustang Pipeline, connecting Chicago with Patoka, , crude oil can be transported to the refinery in Wood River, Illinois, east of Patoka, as well as the U.S. Gulf Coast through the recently reversed ExxonMobil pipeline.

Increased supply entering the market in the next few years is expected to constrain pipeline capacity, particularly heavy crude oil capacity, in the 2007-2008 timeframe. The proposed Southern Access capacity expansion in western is for an additional 19,000 m 3/d (0.120 Mbpd). Table V.1 demonstrates the increased capacities of Lines 3 and 4.

Table V.1 – Annual Capacities

Line No. Pipe Size Commodity Pre- Stage 1A Capacity Post- Stage 1B Capacity

2 NPS 24 Light Crude 54,000 m 3/d 54,000 m 3/d

3 NPS 34 Heavy Crude 71,000 m 3/d 80,000 m 3/d

4 NPS 36/48 Heavy Crude 106,500 m 3/d 116,500 m 3/d

C. MARKETS

Increased capacity on the Canadian Mainline is proposed to maintain a balanced system in combination with the Southern Access Pipeline expansion project in the U.S. This would allow for greater volumes of Canadian oil to satisfy growing demand in northern PADD II and to penetrate markets further south of the traditional Northern Tier and Midwest markets. The US PADD II has traditionally been the major outlet for Canadian oil. Recently, Canadian crude oil has been able to penetrate further into PADD II through the newly reversed Spearhead Pipeline from Chicago, Illinois to Cushing, Oklahoma. This vast refining market of 120,000 m 3/d (0.755 Mbpd) provides Canadian light and heavy oil producers an opportunity to move beyond existing markets. In the NEB’s Energy Market Assessment, Canada’s Oilsands: Opportunities and Challenges to 2015, a potential scenario to deal with the growth in oilsands is outlined.

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Aside from filling up existing markets, it proposes that crude oil will need to penetrate further east and south of PADD II. A further step could see Canadian crude oil make major in roads in the US Gulf Coast market. As previously discussed, western Canadian crude oil will begin to be delivered to the Gulf Coast through pipeline connections at Patoka, Illinois.

Figure V.3

thousand m 3/d PADD II and PADD III Disposition 500 450 400 350 300 250 200 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 PADD II (Minn, Wisc, ND) PADD II (Chicago Area) PADD II (Mich, Ohio) PADD II (Wood River, E Patoka) PADD II (Cushing) PADD III (Gulf Coast)

In 2005, Canadian oil imports represented 30 percent of PADD II refining capacity. Figure V.3 represents Enbridge’s forecast for the growth potential into PADD II and III. Through the newly reversed pipelines and proposed refinery modifications, the PADD II and III markets will have the capability of absorbing the incremental 19,000 m 3/d (0.120 Mbpd) of Canadian oil over the next few years.

D. FINANCING

The estimated total reference capital cost of the Project is CDN $6,560,000. The Project will be financed through the use of internally generated funds.

The estimated cost of Stage 1A is $2,970,000, while the estimated cost of Stage 1B is $3,590,000. An estimated breakdown of the main elements of the capital cost of the Project is as follows:

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