Line 3 Replacement Project Summary “Our role comes with tremendous responsibility. That’s why safety and operational reliability is our number 1 priority.” Al Monaco, President and CEO Table of Contents About Enbridge………………………………………………………… 4 Line 3 Pipeline History……………………………………………… 5 Line 3 Serves as a Vital Energy Link………………………. 6 Line 3 Replacement Program……………………………….. 8 Line 3 Maintenance and Integrity Program…………… 12 Line 3 Preferred Route……………………………………………. 14 Potential Environmental Impacts of Line 3 Preferred Route………………………………………….. 16 Right-Of-Way Preparation and Construction Sequence………………………………………… 18 Line 3 Deactivation………………………………………………….. 22 Commitment to Safety…………………………………………… 24 Public Participation…………………………………………………. 27 3 About Enbridge Norman Wells Enbridge’s Assets 1 Enbridge Inc. Headquarters Enbridge Pipelines Inc. Headquarters Calgary, Alberta, Canada 2 Enbridge Energy Partners, L.P. Headquarters Houston, Texas, USA CANADA 3 Enbridge Gas Distribution Headquarters Toronto, Ontario, Canada Zama Liquids Systems and Joint Ventures Natural Gas Systems and Joint Ventures Power Transmission Fort McMurray Gas Distribution Fort St John Cheecham Bruderheim Wind Assets Solar Assets Kitimat Edmonton Storage Waste Heat Recovery Geothermal Fuel Cell Hardisty 1 Calgary Regina Rowatt Cromer Lethbridge Gretna Blaine Minot Clearbrook Seattle Great Falls Superior Portland Ottawa Montreal OF UNITED STATES AMERICA Toronto Boise 3 Casper Sarnia Bualo Chicago Toledo Salt Lake City Flanagan Denver Patoka Wood River Las Vegas Tulsa Cushing Houston 2 New Orleans M E X I C • We transport energy; operating the O transport supplies of crude oil to North world’s longest, most sophisticated liquid American refineries, helping support North petroleum transportation system. American energy independence. • We have provided safe and reliable • Our corporate headquarters are in Calgary, energy transportation in North Alberta and Houston, Texas with offices America for more than 65 years. in Superior, Wisconsin; Duluth and Edina, • We deliver more than 2 million Minnesota; Griffith, Indiana; Minot, North barrels of crude oil daily. Dakota; and Cushing, Oklahoma, along with regional offices along the system route. • We continue to invest billions of dollars to enhance Enbridge’s ability to • We employ 11,000 people, of which 6,500 are employed in the U.S. 4 Enbridge Inc. Headquarters Enbridge Pipelines Inc. Headquarters Calgary, Alberta, Canada Enbridge Energy Partners, L.P. Headquarters Houston, Texas, USA Enbridge Gas Distribution Headquarters Toronto, Ontario, Canada Line 3 Pipeline History Edmonton Enbridge Line 3 Hardisty Regina Cromer Gretna Clearbrook Superior Line 3 was constructed in the 1960s and put into Historically, Line 3 has played and continues service in 1968. The existing Line 3 is a 34-inch to play an important and integral role in diameter, 1,097 mile long pipeline, which extends delivering crude oil to Minnesota, Wisconsin, from Alberta, Canada to Superior, Wisconsin. Line and other North American refineries. 3 has transported a variety of crude oil based on shipper demand. Minnesota relies on the extensive Enbridge Mainline System pipeline network to provide crude oil to its two large refineries located in and around Minneapolis and St. Paul. Since it began operating in the late 1960s, the annual average capacity of Line 3 has varied between a low of 390,000 barrels per day (bpd), which is the current operating capacity of the line, and a much higher capacity, in the range of 760,000 bpd. Enbridge Mainline pipeline construction from the 1960s. 5 Line 3 serves as a vital link from North American production regions to Minnesota, Wisconsin, and other North American refinery markets and on to North American consumers. In 2014, Enbridge’s pipelines transported over 53 percent of total U.S.-bound Canadian crude oil. Enbridge meets nearly 80 percent of refining demand in Minnesota. 6 Line 3 Serves as a Vital Energy Link Our goal is to invest wisely in infrastructure Minnesota refineries including Flint Hills and to support the needs of shipping and refining Northern Tier St. Paul rely on Canadian crude oil. customers so they can in turn meet North The Enbridge Mainline System has been serving Americans’ needs for fuels, asphalt and the raw the needs of Minnesota refineries for decades. materials used to make fertilizers, solvents, plastic Line 3 is a vital component of this System. The materials, and other products we all use every day. Line 3 Replacement Project will help ensure that Enbridge continues to meet the needs of U.S. demand for Canadian crude oil transported our shippers, regional refineries, and beyond. on the Enbridge Mainline System has increased significantly in recent decades. As a result, 2012 Minnesota Petroleum demand for capacity to ship crude oil on the Consumption by Customer Sector* Enbridge Mainline System continues to exceed available pipeline capacity, even after Enbridge’s Electric Power – 0% recent projects have improved efficiency and 200 barrels per day added capacity to transport additional oil. Commercial – 2% For example, in the first few months of 2015, 6,400 barrels per day Minnesota refineries’ demand exceeded supply Residential – 5% by 5.5 percent for light Canadian crude and 35 14,500 barrels per day percent for heavy Canadian crude. A viable, reliable pipeline network must exist to satisfy the Industrial – 19% refiners’ demand for Western Canadian supply. 60,500 barrels per day Transportation – 74% 235,500 barrels per day *U.S. Energy Information Administration ND MN WI SD MI IA NE OH IL IN KS MO KY TN OK In 2014, Enbridge transported over 74 percent of the crude oil imported from Canada and consumed in the Midwest, in states including North Dakota, South Dakota, Nebraska, Missouri, Minnesota, Iowa, Oklahoma, Kansas, Illinois, Tennessee, Wisconsin, Michigan, Ohio, Indiana, and Kentucky. 7 Line 3 Replacement Program Edmonton HardistyHardisty Enbridge Line 3 Enbridge Line 3 Regina Replacement Regina Replacement complete Cromer Replacement complete Gretna Clearbrook Superior Enbridge Energy, Limited Partnership’s (“Enbridge”) The Program’s Background: maintenance driven Line 3 replacement will reduce future repair activities and resulting disruptions to • Line 3 is a 1,097-mile crude oil pipeline extending landowners and the environment, as well as restore from Edmonton, Alberta to Superior, Wisconsin, the historical operating capabilities of Line 3, and and is an integral part of Enbridge’s Mainline promote energy efficiency of Enbridge’s Mainline System. Line 3 was installed in the 1960s. System. A new 36-inch diameter pipeline will • Line 3 Replacement Program consists of 1,031 replace the existing 34-inch diameter pipeline along miles of 36-inch diameter pipeline that begins in most of the Line 3 route. Hardisty, Alberta and ends in Superior, Wisconsin. • The U.S. portion includes about 13 miles in North Dakota, 337 miles in Minnesota, and 14 miles in Wisconsin. • The Program is an approximate $7.5 billion private investment ($2.6 billion for the U.S. portion), making This is an integrity and it one of North America’s largest infrastructure programs, which supports North American energy maintenance driven Program. independence. 8 Line 3 Replacement Project Kittson Pembina Marshall Pennington Clearbrook Terminal Red Lake Beltrami Polk Itasca Saint Louis Clearwater Hubbard Line 3 Replacement Preferred Route Cass Superior Terminal Existing Line 3 (Enbridge Mainline Corridor) Line 3 Proposed Pump Stations Existing Enbridge Terminals Wadena Crow Wing Existing Pipeline Right-of-Way Aitkin Carlton Existing Electric Transmission Right-of-Way Douglas The U.S. portion of the Program Enbridge is • $2.1 billion investment for the Minnesota portion of proposing, is referred to as the Line 3 the design, permit and construction of Line 3. Replacement “Project.” • In Minnesota, the replacement pipeline will follow Project Description in Minnesota existing utility corridors for more than 98 percent of the route west of Clearbrook and 75 percent east • 337 miles of 36-inch diameter pipeline in of Clearbrook. Minnesota to replace existing 282 miles of 34-inch diameter pipeline. • Project applications are being reviewed by the Minnesota Public Utilities Commission (MPUC), • Construction of eight pump stations. and upon receipt of all applicable regulatory • Includes 27 strategically placed valves. approvals, construction can begin. • Restore historical operating capabilities and move Anticipated Project Timeline in Minnesota 760,000 barrels per day (bpd). (pending regulatory approval) • Enable Enbridge to better respond to variable 2016 Construction begins refinery needs, now and in the future, as well as unplanned disturbances to North American crude Late The replacement pipeline is placed oil network. 2017 into service in late fall or winter The existing pipeline is taken out • Reduce power requirements on a per barrel basis. of service and restoration of land 2018 • Minimize the impact of planned maintenance on the disturbed during construction Enbridge Mainline System to shippers and refiners. continues 9 Petroleum Transportation Line 3 Replacement pipeline = 760,000 bpd. This is the equivalent of more than: 10,000 rail cars per day 24,000 tanker trucks per day Project Benefits Jobs: Create thousands of family-sustaining construction jobs, and provide new business opportunities for contractors for design, survey, environmental assessment, and project planning. Economic Activity: Significant boost