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National Energy Board Office National De L’Énergie NATIONAL ENERGY BOARD OFFICE NATIONAL DE L’ÉNERGIE Hearing Order OH-002-2015 Ordonnance d’audience OH-002-2015 Enbridge Pipelines Inc. Line 3 Replacement Program Pipelines Enbridge Inc. Programme de remplacement de la canalisation 3 VOLUME 9 Hearing held at L’audience tenue à National Energy Board 2nd Floor, 517 Tenth Avenue S.W. Calgary, Alberta December 14, 2015 Le 14 décembre 2015 International Reporting Inc. Ottawa, Ontario (613) 748-6043 © Her Majesty the Queen in Right of Canada 2015 © Sa Majesté du Chef du Canada 2015 as represented by the National Energy Board représentée par l’Office national de l’énergie This publication is the recorded verbatim transcript Cette publication est un compte rendu textuel des and, as such, is taped and transcribed in either of the délibérations et, en tant que tel, est enregistrée et official languages, depending on the languages transcrite dans l’une ou l’autre des deux langues spoken by the participant at the public hearing. officielles, compte tenu de la langue utilisée par le participant à l’audience publique. Printed in Canada Imprimé au Canada HEARING ORDER/ORDONNANCE D’AUDIENCE OH-002-2015 IN THE MATTER OF Enbridge Pipelines Inc. Line 3 Replacement Program (L3RP) Application pursuant to sections 52 and 58 of the National Energy Board Act and section 45(1) of the Onshore Pipeline Regulations HEARING LOCATION/LIEU DE L'AUDIENCE Hearing held in Calgary, Alberta, Monday, December 14, 2015 Audience tenue à Calgary (Alberta), lundi, le 14 décembre 2015 BOARD PANEL/COMITÉ D'AUDIENCE DE L'OFFICE J. Ballem Chairman/Président P. Watson Member/Membre M. Richmond Member/Membre Transcript Hearing Order OH-002-2015 APPEARANCES/COMPARUTIONS Applicant/Demandeur Enbridge Pipelines Inc. - Mr. Don Davies - Mr. Robert Bourne Intervenors/Intervenants Assembly of Manitoba Chiefs - Ms. Allison Fenske - Ms. Joëlle Pastora Sala Mr. Stewart Crone - Mr. Stewart Crone George Gordon First Nation - Mr. Scott Barnes Michel First Nation - Ms. Tracy Campbell Pasqua First Nation - Chief M. Todd Peigan Peguis First Nation - Mr. Jesse McCormick White Bear First Nations - Mr. Jeff Howe National Energy Board/Office national de l’énergie - Ms. Katherine Murphy - Ms. Diana Audino Transcript Hearing Order OH-002-2015 TABLE OF CONTENTS/TABLE DES MATIÈRES (i) Description Paragraph No./No. de paragraphe Opening remarks 3643 Final argument presented by Mr. Davies 3664 - Questions by the Board 3826 Final argument presented by Ms. Pastora Sala 3953 Final argument presented by Ms. Fenske 3996 - Questions by the Board 4067 Final argument presented by Mr. Crone 4085 - Questions by the Board 4103 Final argument presented by Mr. Barnes 4151 - Questions by the Board 4167 Final argument presented by Ms. Campbell 4183 - Questions by the Board 4220 Final argument presented by Chief Peigan 4255 - Questions by the Board 4314 Final argument presented by Mr. McCormick 4375 - Questions by the Board 4469 Final argument presented by Mr. Howe 4509 Reply by Mr. Davies 4544 - Questions by the Board 4599 Transcript Hearing Order OH-002-2015 LIST OF EXHIBITS/LISTE DES PIÈCES No. Description Paragraph No./No. de paragraphe C12-03 Aid to final argument - Maps - Stewart Crone 4135 Transcript Hearing Order OH-002-2015 Opening remarks --- Upon commencing at 8:31 a.m./L’audience débute à 8h31 3643. THE CHAIRMAN: Good morning, everyone. Welcome to the continuation of the oral portion of the oral portion of the National Energy Board's OH-002-2015 hearing regarding the proposed Enbridge Pipelines Line 3 Replacement Program. 3644. My name is Jamie Ballem; I'm the Chair of this Panel. My Panel Members, to my left, Mr. Mike Richmond; to my right, Mr. Peter Watson. 3645. In addition the Panel, we have Board staff with us today who can be identified by their name tags. Should you require assistance with process during the day, please speak to one of our legal counsel, Diana Audino and Katherine Murphy. They're sitting to my right. 3646. You can speak with Shannon Britton, who is Hearing Manager today, for any other general inquiries or administrative. 3647. Once again, safety is an important priority and if, in the unlikely event we have to -- the evacuate the building order, there are two exits. Go out the exit that you came in, and there are two stairwells, one just as you go out in the hallway to the right and in the elevator lobby. 3648. The gathering area is in Central Memorial Park, which is two blocks south of this building. 3649. If you have any questions regarding safety, please check with any one of our staff. 3650. As well, for those of you who were here last week and we were in a separate -- the meeting room, the men's and women's washrooms past the elevator lobby are down that hallway. 3651. Live audio stream of the oral portion of this hearing is being broadcast on the Board's website, and we'd like to welcome all those who are listening in. An electronic transcript of the day's proceedings will be made available at the end of the day. 3652. It is important to the Board that we provide a safe and respectful environment for everyone attending our hearings. This orderly conduct will allow Transcript Hearing Order OH-002-2015 Opening remarks us to hear from all those scheduled to appear, while allowing other persons or media to observe or listen to the live broadcast. 3653. Today we will hear final argument. Final argument is an opportunity for Enbridge and intervenors to provide their views of the recommendation and decisions the Board should or should not make, and the reasons why the evidence supports those recommendations and decisions. 3654. Final argument is also an opportunity to provide comments on possible conditions, which some of you have done in your written arguments filed on December 11th. In presenting your views, you can only use the evidence on the record to support your position. You cannot present new evidence when making your final argument. 3655. The Panel encourages all panels to make -- all parties to make efficient use of their time in providing their argument and to avoid unnecessary repetition. The Panel can advise that it has read all of the written argument that parties have filed in advance. 3656. This morning, we will sit until approximately noon, or at a natural break around that time between presenters, at which time we'll take an hour for lunch. The Panel will take a break mid-morning and mid-afternoon at a convenient time between or during presentations. 3657. We plan to sit till approximately 4:30, but we'll see where we go by the end of the day. As the Panel indicated in Ruling Number 19, we may consider sitting into the evening if necessary so we may complete oral argument today, if possible. 3658. We'll hear first this morning from Enbridge, followed by intervenors in alphabetical order, then again from Enbridge in Reply. Based on information provided by parties to our staff, the Board has issued an order of appearances, copies of which are at the back of the room. 3659. If there are any intervenors in attendance who may wish to present oral argument but do not appear in the order of appearances, please speak to one of our Board counsel as soon as possible. 3660. Parties will be expected to monitor the proceedings to ensure that they Transcript Hearing Order OH-002-2015 Final argument Mr. Davies are available when called upon to present their argument. The Panel may have questions of the presenters during or upon complete of their argument. 3661. Before we begin, are there any preliminary matters we need to address? --- (No response/Aucune réponse) 3662. THE CHAIRMAN: Seeing none, we will start with the oral argument on behalf of Enbridge. 3663. Mr. Davies. --- FINAL ARGUMENT BY/ARGUMENTATION FINALE PAR MR. DAVIES: 3664. MR. DAVIES: Thank you, Mr. Chairman and Members. Good morning. I’m pleased to present to you the final argument of Enbridge. 3665. I’ve provided a copy of my argument to the reporter, and I’d ask that the evidentiary references that are in square brackets be included in the transcript, please. That way, Mr. Chairman, you will be able to confirm that what I am about to tell you is grounded in the evidence. 3666. As you said, Mr. Chairman, the purpose of final argument is to persuade the Board to make certain decisions based on the evidence that has been presented. So let me start by telling you what decisions Enbridge would like the Board to make in this case. There are three main ones. 3667. First, Enbridge requests the Board recommend that a Certificate of Public Convenience and Necessity be issued under Section 52 of the National Energy Board Act for the construction and operation of the Line 3 Replacement Pipeline. 3668. Second, Enbridge requests that the Board approve the new Line 3 tanks, pump stations, and associated facilities under Section 58 of the National Energy Board Act and, in doing so, provide the exemptions permitted by Section 58. 3669. And third, Enbridge requests that the Board approve the decommissioning of segments of the existing Line 3 pipeline pursuant to Section Transcript Hearing Order OH-002-2015 Final argument Mr. Davies 45.1 of the Onshore Pipeline Regulations. 3670. These three requests are supported by the extensive evidence that is on the record in this proceeding. That evidence, in my submission, demonstrates that it would be in the Canadian public interest for the Board to grant the requests. 3671. The Line 3 Replacement Program is a maintenance project.
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