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2020 Annual Information Form (AIF)

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2020 Annual Information Form (AIF) ALLIANCE PIPELINE LIMITED PARTNERSHIP ANNUAL INFORMATION FORM For the Year Ended December 31, 2020 April 30, 2021 TABLE OF CONTENTS GLOSSARY OF TERMS .........................................................................................................................2 ABBREVIATIONS .................................................................................................................................7 FORWARD-LOOKING INFORMATION ..................................................................................................8 CORPORATE STRUCTURE .................................................................................................................. 10 GENERAL DEVELOPMENT OF THE BUSINESS ...................................................................................... 10 General ................................................................................................................................................. 10 Recent Developments .......................................................................................................................... 12 DESCRIPTION OF THE BUSINESS ........................................................................................................ 13 The Alliance Pipeline System ................................................................................................................ 13 RISK FACTORS .................................................................................................................................. 25 DESCRIPTION OF CAPITAL STRUCTURE .............................................................................................. 38 Units ..................................................................................................................................................... 38 Senior Notes ......................................................................................................................................... 40 Ratings .................................................................................................................................................. 41 Credit Facilities ..................................................................................................................................... 42 Liquidity ................................................................................................................................................ 42 DISTRIBUTIONS ................................................................................................................................ 42 Cash Distributions ................................................................................................................................. 42 Distribution Policy ................................................................................................................................ 44 Distribution Limitations ........................................................................................................................ 44 MARKET FOR SECURITIES ................................................................................................................. 44 SECURITIES SUBJECT TO CONTRACTUAL RESTRICTIONS ON TRANSFER ............................................... 44 DIRECTORS AND OFFICERS ............................................................................................................... 45 Name, Occupation and Security Holdings ............................................................................................ 45 Conflicts of Interest .............................................................................................................................. 47 AUDIT COMMITTEE .......................................................................................................................... 47 Audit Committee Charter ..................................................................................................................... 47 Composition of the Audit Committee .................................................................................................. 48 Relevant Education and Experience ..................................................................................................... 48 CORPORATE GOVERNANCE DISCLOSURE .......................................................................................... 50 Board of Directors ................................................................................................................................ 50 Directorships ........................................................................................................................................ 50 Orientation and Continuing Education ................................................................................................. 50 Ethical Business Conduct ...................................................................................................................... 50 Nomination of Directors ....................................................................................................................... 51 Assessments ......................................................................................................................................... 51 INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS ................................................................. 51 INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ........................................ 51 AUDITORS, REGISTRAR AND TRANSFER AGENT ................................................................................. 51 MANAGEMENT CONTRACTS ............................................................................................................. 51 - i - MATERIAL CONTRACTS .................................................................................................................... 52 Common Agreement ............................................................................................................................ 52 INTERESTS OF EXPERTS .................................................................................................................... 58 ADDITIONAL INFORMATION ............................................................................................................. 58 APPENDIX A AUDIT COMMITTEE CHARTER .........................................................................................1 APPENDIX B ADDITIONAL DEFINITIONS USED IN MATERIAL CONTRACTS SECTION ...............................1 - ii - GLOSSARY OF TERMS The following terms, when used in this Annual Information Form, have the meanings set forth below, unless otherwise indicated. "Acceptable Credit Status" has the meaning ascribed thereto under the heading "Description of the Business – Credit". "ACE Hub" means the Alliance Chicago Exchange at the delivery header of the Alliance USA Pipeline where services are offered by Alliance USA. "Administrative Services Agreement" means the executive, managerial and administrative services agreement dated January 1, 2016 between Alliance Canada and Alliance USA. "affiliate(s)" means, with respect to any person, any other person which, directly or indirectly, is in control of, is controlled by or is under common control with such person. For purposes of this definition, "control" of a person means the power, directly or indirectly, to either (i) vote securities having a majority of the ordinary voting power for the election of directors of such person or (ii) direct or cause the direction of the management and policies of such person, whether by contract or otherwise. "Alliance" means, together, Alliance Canada and Alliance USA. "Alliance Canada" means Alliance Pipeline Limited Partnership, an Alberta limited partnership. "Alliance Canada Pipeline" means the Canadian portion of the System. "Alliance USA" means Alliance Pipeline L.P., a Delaware limited partnership. "Alliance USA Pipeline" means the U.S. portion of the System. "Annual Information Form" means this annual information form. "ATP" means the Alliance Trading Pool. "Audit Committee" has the meaning ascribed thereto under the heading "Audit Committee". "Aux Sable" means Aux Sable Extraction, the Aux Sable Extraction Facility and Aux Sable Liquid Products, or any one or more of them, as the context may require. "Aux Sable Extraction" means Aux Sable Extraction L.P., a Delaware Limited Partnership. "Aux Sable Extraction Facility" has the meaning ascribed thereto under the heading "Description of the Business – The Alliance Pipeline System". "Aux Sable Liquid Products" means Aux Sable Liquid Products L.P., a Delaware Limited Partnership. "Bakken" means the Bakken shale formation, which includes much of the Williston Basin, primarily located in Montana, North Dakota, Saskatchewan and Manitoba. "Canadian General Partner" means Alliance Pipeline Ltd., the general partner of Alliance Canada. - 2 - "CER" means the Canada Energy Regulator or any successor or analogous Canadian governmental authority. "CER Act" means the Canadian Energy Regulator Act (Canada), as amended from time to time. "Class A Units" means Units designated in the Limited Partnership Agreement as Class A Units in Alliance Canada. "Class B Units" means Units designated in the Limited Partnership Agreement as Class B Units in Alliance Canada. "Commercial Operations Services Agreement" means the commercial operations services agreement dated effective June 25, 2018 between Alliance Canada and the Pipeline Commercial Operator. "Common
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