ABOUT PIPELINES OUR ENERGY CONNECTIONS the Facts About Pipelines

ABOUT PIPELINES OUR ENERGY CONNECTIONS the facts about pipelines

This fact book is designed to provide easy access to information about the transmission pipeline industry in Canada. The facts are developed using CEPA member data or sourced from third parties. For more information about pipelines visit aboutpipelines.com.

An electronic version of this fact book is available at aboutpipelines.com, and printed copies can be obtained by contacting [email protected]. The Canadian Energy Pipeline Association (CEPA) CEPA’s members represents Canada’s transmission pipeline companies transport around who operate more than 115,000 kilometres of 97 per cent of pipeline in Canada. CEPA’s mission is to enhance Canada’s daily the operating excellence, business environment and natural gas and recognized responsibility of the Canadian energy transmission pipeline industry through leadership and onshore crude credible engagement between member companies, oil production. governments, the public and stakeholders. TABLE OF CONTENTS

1. Canada’s Pipeline Network...... 1 2. Pipeline Design and Standards...... 6 3. Safety and the Environment...... 7 4. The Regulatory Landscape...... 11 5. Fuelling Strong Economic...... 13 and Community Growth 6. The Future of Canada’s Pipelines...... 13

Unless otherwise indicated, all photos used in this fact book are courtesy of CEPA member companies. CANADA’S PIPELINE % of the energy used for NETWORK transportation in Canada comes 94 from petroleum products.

The Importance of • More than half the homes in Canada are Canada’s Pipelines heated by furnaces that burn natural gas. • Many pharmaceuticals, chemicals, oils, Oil and gas products are an important part lubricants and plastics incorporate of our daily lives. We use them to heat our petroleum products. homes and fuel our cars. In fact, many • Production of many consumer goods including consumer goods we use each day are shoes, telephones and tennis racquets requires made from petroleum products. petroleum products.

1 CEPA Canada’s Pipeline Network % More than two-thirds of Canada’s energy demand is met by natural gas or products made from crude oil. 66 Most of that supply is transmitted by pipeline. Our Energy Highways

Just like highways, railways and electricity This vast network of pipelines, virtually all of which transmission lines, pipelines criss-cross the country is buried underground, transports almost all of to service some of our most important needs. Canada’s crude oil and natural gas from areas of Oil and natural gas resources are typically located production to consumer markets. In fact, Canadians in rural and remote areas, while consumers are safely live, work and travel over pipelines every day located predominantly in urban areas across without even knowing it. Canada. As a result, transportation of oil and Members of CEPA are proud to operate Canada’s natural gas to markets by pipeline is a vital pipeline network with the utmost regard for public component of our energy infrastructure. safety and environmental stewardship.

2 CEPA Canada’s Pipeline Network TIMES If laid end-to-end, there are enough underground natural gas and liquids pipelines in Canada to circle 20 the Earth at the equator 20 times. Did you know? Canada’s transmission pipeline network is more than three times the length of Canada’s national highway system.

Types of Pipelines 3. Transmission Pipelines – these are the major 1. Gathering Pipelines – move crude oil and highways of the pipeline network, transporting natural gas (and combinations of these crude oil and natural gas within a province and products) from wellheads to oil batteries across provincial or international boundaries. and natural gas processing facilities. More There are more than 115,000 kilometres of than 250,000 kilometres of these lines are transmission pipelines in Canada, more than concentrated in the producing provinces of three times the length of Canada’s national western Canada, primarily in Alberta. highway system. 2. Feeder Pipelines – transport crude oil and 4. Distribution Pipelines – local distribution other products such as natural gas liquids companies or provincial cooperatives operate from batteries, processing facilities and natural gas distribution lines that deliver natural storage tanks to the transmission pipelines. gas to homes, businesses and various industries. There are more than 25,000 kilometres of There are approximately 450,000 kilometres feeder pipelines in the producing areas of of these lines in Canada. western Canada.

3 CEPA Canada’s Pipeline Network History of Canada’s KEY DATES Pipeline Network 1912 Canada has a proud history of pipeline construction and operation Canadian Western Natural Gas builds dating back to 1853 when a 25 kilometre cast-iron pipe moving a natural gas pipeline from Bow Island, AB to Calgary, AB (275 km). natural gas to Trois Rivières, QC was completed. In 1862, Canada would complete one of the world’s first oil pipelines, from the Petrolia oilfield in Petrolia, ON to Sarnia, ON. 1923 By 1947, only three oil pipelines moved products to market in Canada, including one that transported oil from Turner Valley, AB to Calgary, AB. Northwestern Utilities Company Limited completes construction of a A second pipeline moved imported crude from coastal Maine to 124 kilometre natural gas pipeline and Montreal, QC, while a third brought American mid-continent oil 129 kilometres of distribution pipelines to Ontario. from Viking, AB to Edmonton, AB. With the discovery of an abundant supply of crude oil and natural gas in the west, Canada’s oil and gas industry began expanding its vast pipeline network in the 1950s. This expansion contributed significantly 1941 to the development of domestic and international markets, while © Canada Post 2008 | Portland-Montreal Pipe Line completes propelling the Canadian economy forward. Re-printed with permission its 380 kilometre oil pipeline from South Portland, Maine, USA to As Canada’s energy infrastructure matured, the country witnessed Montreal, QC. broad-based economic growth, industrial diversification, and rising living standards. 1944 1955 1976 1997 The Canadian Oil Pipeline, otherwise Westcoast Transmission Company Interprovincial Pipe Line Inc. Kinder Morgan Canada begins known as Canol, completes a crude Ltd. (now Spectra Energy Inc.) begins extends to Montreal, QC. operation of its Express Pipeline, oil pipeline from Norman Wells, NT construction on a 24-inch pipeline which transports crude oil from to Whitehorse, YK. from Taylor, BC to the USA. Hardisty, AB to markets in Montana, 1977 Utah, Wyoming and Colorado, USA. Alyeska Pipeline completes 1950 1957 construction of its Trans Alaska Interprovincial Pipe Line Inc. TransCanada PipeLines Ltd. begins Pipeline System, known as TAPS, 2000 construction on a natural gas pipeline which moves crude oil from Prudhoe (now Enbridge Pipelines Inc.) Alliance Pipeline starts transporting across Canada. Bay on Alaska’s North Slope to transports crude oil from Edmonton, natural gas from northeastern British Valdez, Alaska, USA. AB to Superior, Wisconsin, USA. Westcoast Transmission Company Ltd. Columbia and northwestern Alberta begins transporting natural gas from to Illinois, USA. northeastern British Columbia to the 1953 BC/US border. 1981 TransCanada Pipelines Ltd.’s Alberta Trans Mountain Pipeline system (now Foothills Pipe Lines Ltd. begins system, known as NOVA Gas 2011 transporting natural gas from Kinder Morgan Canada) transports Transmission Ltd. or NGTL, TransCanada PipeLines Ltd. begins crude oil from Edmonton, AB to central Alberta to the US border. begins operations. transporting crude oil on its Keystone Vancouver, BC. Interprovincial Pipe pipeline from Hardisty, AB to Cushing, Line Inc. extends to Sarnia, ON. Oklahoma, USA. 1985 The Mackenzie Valley Pipeline Project, 1974 Interprovincial Pipe Line Inc. completes owned by a consortium, receives 1954 Foothills Pipe Lines Ltd., a subsidiary construction of its Norman Wells, NT federal Cabinet approval to construct The Pembina Pipeline system is of Westcoast Transmission Company to Zama, AB pipeline, which is the first a 1,200 kilometre natural gas pipeline constructed to transport crude oil Ltd, now TransCanada Pipe Lines buried pipeline through permafrost from the Mackenzie Delta, NT to from the Pembina field near Drayton Ltd., was created for the purpose in Canada. Fort Simpson, NT and on to existing Valley, AB to Edmonton, AB. The of constructing and operating the pipeline infrastructures in Alberta. Pembina system serves one of the Canadian portion of the Alaska oldest oil producing areas in Alberta. Natural Gas Transportation System.

4 CEPA Canada’s Pipeline Network Enbridge LIQUIDS PIPELINES

Pembina Plains Midstream Suncor Inter Pipeline ccess

Kinder Morgan

Spectra Energy

Portland Montreal Trans-Northern

TransCanada

Spectra Energy

TransCanada

Suncor

TransGas TCO

FortisBC

Trans Quebec & Maritimes

Canaport LNG Emera lliance Maritimes & Northeast

Enbridge NATURAL GAS PIPELINES Spectra Energy

TransCanada

Suncor

TransGas TCO

FortisBC

Trans Quebec & Maritimes

Canaport LNG Emera lliance Maritimes & Northeast

Enbridge legend existing proposed non-member pipelines existing LNG Terminal proposed LNG Terminal sedimentary basin PIPELINE DESIGN and STANDARDS

Designing and constructing a pipeline is a lengthy and complex process that considers a number of factors and requires a number of steps and To find out more commitments before product begins to flow. This includes extensive about the CSA stakeholder engagement and a thorough review of the social and Oil and Gas environmental factors. Pipeline System Standard visit: Prior to construction, a detailed route analysis must be performed to http://shop.csa.ca adequately assess the specific topographical, environmental and social factors along the proposed right-of-way. Canadian pipeline operators are subject to very specific regulatory and technical requirements ensuring that pipelines are built and operated with the utmost regard for public safety and environmental integrity.

The Canadian Standards Association Pipeline design and construction decisions are CSA standards cover the design, construction, guided by a set of comprehensive standards issued operation and maintenance of oil and gas pipeline by the Canadian Standards Association (CSA). In systems and underground storage of petroleum addition to federal, provincial, territorial and, in products and liquefied natural gas. some cases, municipal regulations, CSA standards CSA pipeline standards are world renowned set out specific design criteria, including the depth for their valuable guidance on issues of safety, at which pipeline is laid in the ground, the thickness performance, and pipeline integrity. and coating of pipe walls and the integrity of the welding process connecting the pipe.

6 CEPA Pipeline Design and Standards

SAFETY AND THE ENVIRONMENT

Nothing is more important to CEPA members than the safe operations of their pipelines. As an industry, pipeline operators understand that a good track record in safety and environmental performance is expected by Canadians. CEPA members spend more than one billion dollars annually on monitoring and maintenance activities to ensure the safety of their pipelines

7 CEPA Safety and the Environment LAND USE CULTIVATED FORESTED FORESTED

OWNERSHIP/DISPOSITION PATENTED CROWN 15 m RIGHT-OF-WAY WIDTH TEMPORARY WORKSPACE TEMPORARY WORKSPACE TEMPORARY WORKSPACE TEMPORARY WORKSPACE MERCHANTABLE TIMBER SALVAGE SEE NOTE 9

FENCE AND AVOID SEE DWG. 3

T A ENVIRONMENTAL SEE DWG. 4 AND NOTE 7 C

I PROTECTION

E MEASURES

L SEE DWG. 1 AND NOTES 1, 2, 3, 5 SEE DWG. 2 AND NOTES 1, 2, 3, 4, 6

O RESTRICTED ACTIVITY PERIOD JANUARY 15 TO APRIL 30

N RARE PLANT

E ENVIRONMENTAL MODERATE SLOPE WAPITI RIVER CONCERN KEY WILDLIFE AND BIODIVERSITY ZONE

SEED MIX SEE NOTE 8

LEGEND

Kilometre Post

100 metre interval

Proposed Pipeline

Existing Pipeline 0

Township/Range Road B KP 3 LAND USE O CULTIVATED T EFOnvironmentalRESTED FORESTED 8 C 2 M

O 6

Resource Road W OWNERSHIP/DISPOSITION PATENTED : CROWN 0 Y Assessment of -1 R KP 2 69 Municipal Boundary E

G 15 m KP 4 RIGHT-OF-WAY WIDTH TEMPORARY WORKSPACE A PropTEoMPOsedRARY WORK SPACrE ojects TEMPORARY WORKSPACE TEMPORARY WORKSPACE

MERCHANTABLE F

O SEE NOTE 9

TIMBER SALVAGE E KP 4.6

FENCE AND AVOID

/ KP 1

When planning a pipeline, the industry makes every

0 SEE DWG. 3 O 0 S effort to manage the unique environmental and 0 N

I T 1 A 1 6

: T socio-cultural aspects of the proposed pipeline 1

A SEE DWG. 4 AND NOTE 7 R . C 1 ENVIRONMENTAL E C KP 0 I

F route. Pipeline proponents conduct a thorough . A I PROTECTION G O R

C C

S E O MEASURES N T P assessment of the proposed right-of-way and F

S N A L I SEE DWG. 1 AND NOTES 1, 2, 3, 5 S SEE DWG. 2 AND NOTES 1, 2, 3, 4, 6 O E A its surrounding natural environment to identify 9 I

O T 2 6M D

M N W Y R E W O the unique features that must be protected 0 I T 1 M 9- T L E

O N 6 I

H A O REthroughoutSTRICTED ACT ItheVITY fullPER IlifecycleOD JANUA RofY 1the5 TO pipeline.APRIL 30 This A

P N

R I R V

V P detailed review helps pipeline companies develop U I N RARE PLANT P

E N O C ENVIRONMENTAL MODERATEappropriate SLOPE mitigation strategiesWAPITI RtoIV EprotectR the m I E C E CONCERN 0 100 200 300 400 N local environment. R KEY WILDLIFE AND BIODIVERSITY ZONE U G SEED MIX SEE NOTE 8 M

LEGEND

Kilometre Post BEAVER LODGE PLAIN DISTRICT - WAPITI RIVER PLAINS SECTION - SOUTHERN ALBERTA PHYSIOGRAPHIC REGION

100 metre interval

Proposed Pipeline

1 (cm) ~25 cm ~10 cm

Existing Pipeline 0

E ND WATER WAPITI RIVER Township/Range Road B KP 3

E T 8

M C 2 M

O N 6

Resource Road RARE PLANT W

: O 0

Y VEGETATION 1

R -

I R KP 2 69

E Municipal Boundary V CENTRAL MIXEDWOOD SUBREGION - BOREAL FOREST NATURAL REGION

N KP 4

F WAPITI RIVER

O FISH AND WILDLIFE

E KP 4.6

A KEY WILDLIFE AND BIODIVERSITY ZONE

/ KP 1

HERITAGE RESOURCES D

0 O 0

0 N , ENVIRONMENTAL NOTES REFERENCE DRAWINGS REVISIONS 5 T 1 A 1 6 : 1. Site specific environmental concerns and the corresponding environmental protection measures are positioned above the respective location of the photomosaic. NO. DATE DESCRIPTION BY CKCD APPD 1 NO TITLE R . C 1 E KP 0 Additional environmental protection measures are outlined in the Environmental Protection Plan. I L . 1 Stripping: full right-of-way 0 MM/YY Report Title JONES LATERAL A G O R C 2. Avoid constructing during excessively wet or thawed conditions. Install prefabricated matting or corduroy along the travel lane, if warranted, to minimize any rutting that may result from construction.

S O PIPELINE PROJECT F N T 2 Stripping: trench only

I 3. Temporary workspace will be shared with the adjacent right-of-way where feasible. Additional temporary workspace will be required aSt sharp Nsidebends, tie-ins, crossings of road and for the directional drill of the Wapiti River. A I S O E 3 Install cross ditches and diversion berms 9 I O 4. Minimize grubbing throughout the route. Grub tree roots (where required) with a brush rake attachment on the dozer to preserve surface soils. 2 6M D REFERENCE M ENVIRONMENTAL ALIGNMENT SHEET 1 of 1 W Y R W 4 Watercourse crossing: Directional drill O 5. Salvag0e strippings from the full right-of-way to depth indicated. I T 1 9- T L E Route Revision 0. Date of Imagery: October 2011. 2011 SPOT5 ©2012 CNES, O 6 I H 6. Salvage strippings from the trench only to depth indicated. A A Licensed by BlackBridge Geomatics Corp, www.blackbridge.com. Existing P N DATE: APPR.: R P V Pipelines & Roads: IHS Inc. 2012; Hydrography: IHS Inc. 2004 & Natural 7. Directional drill the Wapiti River. U I Resources Canada 2007; Geopolitical Boundaries: AltaLIS, 2012. August 2012 P N 8. Seed disturbed portions of the right-of-way with appropriate seed mix or as directed by landowner. C SCALE: REF: REV. O I E Although there is no reason to believe that there are any errors associated with the data used to generate (All Locations Approximate) C E 1:15,000 xxxx 0 9. Salvage all merchantable timber as per the Timber Salvage Plan. N this product or in the product itself, users of these data are advised that errors in the data may be present. R U G M

BEAVER LODGE PLAIN DISTRICT - WAPITI RIVER PLAINS SECTION - SOUTHERN ALBERTA PHYSIOGRAPHIC REGION

(cm) ~25 cm ~10 cm

ND WATER WAPITI RIVER

N RARE PLANT

O VEGETATION

V CENTRAL MIXEDWOOD SUBREGION - BOREAL FOREST NATURAL REGION

FISH AND WILDLIFE WAPITI RIVER KEY WILDLIFE AND BIODIVERSITY ZONE

HERITAGE RESOURCES

ENVIRONMENTAL NOTES REFERENCE DRAWINGS REVISIONS 1. Site specific environmental concerns and the corresponding environmental protection measures are positioned above the respective location of the photomosaic. NO TITLE NO. DATE DESCRIPTION BY CKCD APPD Additional environmental protection measures are outlined in the Environmental Protection Plan. 1 Stripping: full right-of-way 0 MM/YY Report Title JONES LATERAL 2. Avoid constructing during excessively wet or thawed conditions. Install prefabricated matting or corduroy along the travel lane, if warranted, to minimize any rutting that may result from construction. 2 Stripping: trench only PIPELINE PROJECT 3. Temporary workspace will be shared with the adjacent right-of-way where feasible. Additional temporary workspace will be required at sharp sidebends, tie-ins, crossings of road and for the directional drill of the Wapiti River. 3 Install cross ditches and diversion berms 4. Minimize grubbing throughout the route. Grub tree roots (where required) with a brush rake attachment on the dozer to preserve surface soils. REFERENCE 4 Watercourse crossing: Directional drill ENVIRONMENTAL ALIGNMENT SHEET 1 of 1 5. Salvage strippings from the full right-of-way to depth indicated. Route Revision 0. Date of Imagery: October 2011. 2011 SPOT5 ©2012 CNES, 6. Salvage strippings from the trench only to depth indicated. Licensed by BlackBridge Geomatics Corp, www.blackbridge.com. Existing Pipelines & Roads: IHS Inc. 2012; Hydrography: IHS Inc. 2004 & Natural DATE: APPR.: 7. Directional drill the Wapiti River. Resources Canada 2007; Geopolitical Boundaries: AltaLIS, 2012. August 2012 8. Seed disturbed portions of the right-of-way with appropriate seed mix or as directed by landowner. SCALE: REF: REV. Although there is no reason to believe that there are any errors associated with the data used to generate (All Locations Approximate) 9. Salvage all merchantable timber as per the Timber Salvage Plan. this product or in the product itself, users of these data are advised that errors in the data may be present. 1:15,000 xxxx 0 LAND USE CULTIVATED FORESTED FORESTED

OWNERSHIP/DISPOSITION PATENTED CROWN 15 m RIGHT-OF-WAY WIDTH TEMPORARY WORKSPACE TEMPORARY WORKSPACE TEMPORARY WORKSPACE TEMPORARY WORKSPACE MERCHANTABLE TIMBER SALVAGE SEE NOTE 9

FENCE AND AVOID SEE DWG. 3

T A ENVIRONMENTAL SEE DWG. 4 AND NOTE 7 C

I PROTECTION

E MEASURES

L SEE DWG. 1 AND NOTES 1, 2, 3, 5 SEE DWG. 2 AND NOTES 1, 2, 3, 4, 6

O RESTRICTED ACTIVITY PERIOD JANUARY 15 TO APRIL 30

N RARE PLANT

E ENVIRONMENTAL MODERATE SLOPE WAPITI RIVER CONCERN KEY WILDLIFE AND BIODIVERSITY ZONE

SEED MIX SEE NOTE 8

LEGEND

Kilometre Post

100 metre interval

Proposed Pipeline

Existing Pipeline 0

Township/Range Road B KP 3 LAND USE O CULTIVATED T FORESTED FORESTED 8 C 2 M

O 6

Resource Road W OWNERSHIP/DISPOSITION PATENTED : CROWN 0 Y -1 R KP 2 69 Municipal Boundary E

G 15 m KP 4

RIGHT-OF-WAY WIDTH TEMPORARY WORKSPACE A TEMPORARY WORKSPACE TEMPORARY WORKSPACE TEMPORARY WORKSPACE

MERCHANTABLE F

O SEE NOTE 9

TIMBER SALVAGE E KP 4.6

FENCE AND AVOID

/ KP 1

0 SEE DWG. 3 O 0

0 N

I T 1 A 1 6

: T 1

A SEE DWG. 4 AND NOTE 7 R . C 1 ENVIRONMENTAL E C KP 0 I

F .

A I PROTECTION G O R

C C

S E O MEASURES N T P F

S N A L I SEE DWG. 1 AND NOTES 1, 2, 3, 5 S SEE DWG. 2 AND NOTES 1, 2, 3, 4, 6 O E A 9 I

O T 2 6M D

M N W Y R E W O 0 I T 1 M 9- T L E

O N 6 I

H A O RESTRICTED ACTIVITY PERIOD JANUARY 15 TO APRIL 30 A

P N

R I R V

V P U I N RARE PLANT P

E N O C ENVIRONMENTAL MODERATE SLOPE WAPITI RIVER I E C E CONCERN N R KEY WILDLIFE AND BIODIVERSITY ZONE U G SEED MIX SEE NOTE 8 M

LEGEND

Kilometre Post BEAVER LODGE PLAIN DISTRICT - WAPITI RIVER PLAINS SECTION - SOUTHERN ALBERTA PHYSIOGRAPHIC REGION

100 metre interval

Proposed Pipeline

1 (cm) ~25 cm ~10 cm

Existing Pipeline 0

E ND WATER WAPITI RIVER Township/Range Road B KP 3

E T 8

M C 2 M

O N 6

Resource Road RARE PLANT W

: O 0

Y VEGETATION 1

R -

I R KP 2 69

E Municipal Boundary V CENTRAL MIXEDWOOD SUBREGION - BOREAL FOREST NATURAL REGION

N KP 4

F WAPITI RIVER

O FISH AND WILDLIFE

E KP 4.6

A KEY WILDLIFE AND BIODIVERSITY ZONE

/ KP 1

HERITAGE RESOURCES D

0 O 0

S O PIPELINE PROJECT Identifies what F N IdentifiesT what type of 2 Stripping: trench only C Identifies fish and

I 3. Temporary workspace will be shared with the adjacent right-of-way where feasible. Additional temporary workspace will be required aSt sharp Nsidebends, tie-ins, crossings of road and for the directional drill of the Wapiti River. A I S O E 3 Install cross ditches and diversion berms 9 types of soil are I vegetation is located wildlife species that O 4. Minimize grubbing throughout the route. Grub tree roots (where required) with a brush rake attachment on the dozer to preserve surface soils. 2 6M D REFERENCE M ENVIRONMENTAL ALIGNMENT SHEET 1 of 1 W Y R W 4 Watercourse crossing: Directional drill O 5. Salvag0e strippings from the full right-of-way to depth indicated. encountered along I along the right-of- Identifies the require specific T 1 9- T L E Route Revision 0. Date of Imagery: October 2011. 2011 SPOT5 ©2012 CNES, O 6 I H 6. Salvage strippings from the trench only to depth indicated. the pipeline route A way,A as well as any current use of the environmental Licensed by BlackBridge Geomatics Corp, www.blackbridge.com. Existing P N DATE: APPR.: R P V Pipelines & Roads: IHS Inc. 2012; Hydrography: IHS Inc. 2004 & Natural 7. Directional drill the Wapiti River. which helps determineU specificI vegetation that land (e.g. forested, Resources Canada 2007; Geopolitical Boundaries: AltaLIS, 2012. August 2012 P N protection, mitigation 8. Seed disturbed portions of the right-of-way with appropriate seed mix or as directed by landowner. C SCALE: REF: REV. O I E specific construction requires protection cultivated, cleared, and compensation Although there is no reason to believe that there are any errors associated with the data used to generate (All Locations Approximate) C E 1:15,000 xxxx 0 9. Salvage all merchantable timber as per the Timber Salvage Plan. N this product or in the product itself, users of these data are advised that errors in the data may be present. techniques. (e.g.R rare plants). burn area, etc.). measures. U G M

BEAVER LODGE PLAIN DISTRICT - WAPITI RIVER PLAINS SECTION - SOUTHERN ALBERTA PHYSIOGRAPHIC REGION 8 CEPA Safety and the Environment

(cm) ~25 cm ~10 cm

ND WATER WAPITI RIVER

N RARE PLANT

O VEGETATION

V CENTRAL MIXEDWOOD SUBREGION - BOREAL FOREST NATURAL REGION

FISH AND WILDLIFE WAPITI RIVER KEY WILDLIFE AND BIODIVERSITY ZONE

HERITAGE RESOURCES

Monitoring and Check the folded insert for an in-depth look into Maintenance CEPA members’ pipeline integrity performance.

The excellent safety record of CEPA members This information is then transmitted back to the is due in large part to the management systems control centre. In the control room, technicians and pipeline integrity programs now in place that trained in pipeline operations and emergency have evolved and improved over the past 60 years. response evaluate the information and determine Pipeline operators monitor their lines 24-hours- what action is required to keep the pipeline running a-day, seven-days-a-week from remote control smoothly and safely. Pipeline operators also centres across the country. These control centres conduct regular visual surveys of the pipeline and use devices, such as Supervisory Control and Data deploy in-line inspection tools. Visual surveys are Acquisition (SCADA) systems, to collect information completed using aerial and ground patrols. from sensors installed along the pipeline route. In-line inspection tools can inspect pipelines from the inside to identify changes such as dents or wall thinning that could threaten the integrity of a pipeline.

9 CEPA Safety and the Environment Emergency Response

Despite the industry’s best efforts, no pipeline is An ERP outlines the necessary steps and completely risk-free. Unfortunately, incidents do decisions required to manage an emergency occur and, when they do, pipeline operators are situation. It contains specific steps the pipeline equipped and trained to manage the emergency operator must take in order to control the situation. With an emergency response plan (ERP) incident. These plans include manuals on how in place, the chance of a long-term impact on the to proceed with the deployment of emergency community or the environment is greatly reduced. personnel, evacuation plans, and guidance on how to best manage information, communication and resource coordination. Stakeholder Engagement

Ongoing dialogue with stakeholders is an integral Common stakeholders include: part of the pipeline industry. One of the most • Regulators important steps in the pipeline application process • Landowners involves communicating effectively with various • Environmental Nongovernmental stakeholders. CEPA member companies engage Organizations (ENGO) in cooperative and collaborative dialogue during the application process and continue this approach • Media throughout the project lifecycle. • Aboriginal, Local, Provincial, Territorial and Maintaining communication throughout the life Federal Government representatives of a project keeps stakeholders informed and the pipeline operators aware of community issues and concerns. Outreach tools to share information include town hall meetings, websites, and collateral materials.

10 CEPA Safety and the Environment THE REGULATORY LANDSCAPE

Canada has a world-renowned regulatory system in If a pipeline crosses provincial or international place to oversee the construction and operation of boundaries, the pipeline is regulated by the pipelines. If a pipeline is contained within a province, National Energy Board (NEB). The majority of the pipeline would fall under the jurisdiction of a pipelines operated by CEPA’s member companies provincial regulator. For example, in Alberta, these are regulated under the NEB. The NEB is an pipelines are regulated by the Alberta Energy independent federal agency established in 1959 Regulator. In British Columbia, such pipelines by the Parliament of Canada. The purpose of the are regulated by the British Columbia Oil and NEB is to regulate international and interprovincial Gas Commission. aspects of the oil, gas and electric utility industries. The NEB regulates pipelines, energy development and trade in the best interest of Canadians. THE APPLICATION PROCESS

In Canada, the regulatory process is thorough feasibility, and the environmental and socio- and complex. Before a pipeline can be built, the economic impact of the project. To ensure pipeline operator must file an application with a that engineering, safety and environmental regulator for approval. An application contains requirements are met, the NEB audits and inspects important information detailing consultation, the construction and operation of the pipeline. environment, safety, commercial, and engineering If a project is approved, the regulator may attach elements related to the proposed project. Pipeline conditions to the approval to ensure that the operators also consult with various provincial and pipeline is operated safely and the surrounding federal agencies, depending on the pipeline route, environment is protected. These conditions are to obtain specific permits relating to the pipeline monitored and enforced throughout the life of application. In determining whether a pipeline the project. project should proceed, the NEB reviews among other things, its economic, technical and financial

11 CEPA The Regulatory Landscape Monitoring Compliance

Regulators are extremely vigilant in monitoring Regulators have a number of tools at their a pipeline company’s level of compliance with disposal to monitor compliance, including: all established requirements, from the project • Project audits application stage through to the construction, • On-site inspections operation and potential abandonment of a pipeline. They verify that what was committed to during • Compliance meetings the application stage, and set out as the terms • Emergency response and conditions of approval, is being honoured exercise evaluations throughout the life of the project. • Incident investigations R.S.C., 1985, c. N-7 L.R.C., 1985, ch. N-7

What happens when An Act to establish a National Energy Board Loi constituant l’Office national de l’énergie the rules are broken? SHORT TITLE TITRE ABRÉGÉ Short title 1. This Act may be cited as the National En- 1. Loi sur l’Office national de l’énergie. Titre abrégé

ergy Board Act. S.R., ch. N-6, art. 1. R.S., c. N-6, s. 1. In cases of non-compliance, regulators can employ several different enforcement tactics INTERPRETATION DÉFINITIONS ET INTERPRÉTATION Definitions 2. In this Act, 2. Les définitions qui suivent s’appliquent à Définitions to bring regulated companies into compliance CANADA la présente loi. and deter repeat offences. Tools include non- “Arbitration “Arbitration Committee” means an Arbitration CANADA Committee” « certificat » « comité Committee appointed pursuant to section 91; « certificat » Certificat d’utilité publique délivré compliance notices, financial penalties, and “certificate” d’arbitrage » aux termes des parties III ou III.1, mais visant potential prosecution by the Office of the respectivement aux parties III et III.1 un certifi- “Board” “Board” means the National Energy Board es- Attorney General of Canada. « Office » tablished by section 3; cat délivré pour un pipeline et une ligne inter- CONSOLIDATION CODIFICATION nationale ou interprovinciale. “certificate” “certificate” means a certificate of public con- CANADA « certificat » venience and necessity issued under Part III or « comité d’arbitrage » Comité d’arbitrage nom- « comité CONSOLIDATION CODIFICATION mé conformément à l’article 91. d’arbitrage » III.1 except that “certificate” means “Arbitration Committee” (a) in Part III, a certificate issued in respect «compagnie» Vise également toute personne « compagnie » of a pipeline, and autorisée aux termes d’une loi spéciale à “company” CONSOLIDATION (b) in Part III.1, aCODIFICATION certificate issued in re- construire ou à exploiter un pipeline et toute National Energy Board Loispect of ansur international l’Office or interprovincial nationalpersonne morale régie par la Loi canadienne power line; sur les sociétés par actions. National Energy Board12 CEPA The RegulatoryLoi Landscape sur l’Office national “company” “company” includes « directeur de l’Enregistrement » Le directeur « directeur de « compagnie » Act de l’énergielui-même ou tout autre fonctionnaire auprès de l’Enregistre- (a) a person having authority under a Spe- ment » Act decial Act l’énergie to construct or operate a pipeline, qui peut se faire l’enregistrement de titres fon- “registrar of deeds” and ciers. National Energy Board Loi(b) a body sur corporate l’Office incorporated or contin- national« droit » Sont compris parmi les droits les « droit » “toll” ued under the Canada Business Corpora- droits, taux, prix ou frais exigés : R.S.C., 1985,Act c. N-7 tions Act and denotL.R.C., discontinued l’énergie 1985, under ch. that N-7 a) au titre notamment de l’expédition, du Act; transport, de la préservation, de la manuten- R.S.C., 1985, c. N-7 L.R.C., 1985, ch. N-7 “export” “export” means, with reference to tion, du stockage ou de la livraison des hy- « exportation » drocarbures ou d’un autre produit transporté (a) electricity, to send from Canada by a line par pipeline, ou des surestaries; of wire or other conductor electricity pro- R.S.C., 1985, c. N-7 duced in Canada,L.R.C., 1985, ch. N-7 b) pour l’usage du pipeline, une fois celui-ci terminé et en mesure d’acheminer du pétrole (b) oil, ou du gaz; (i) to export within the meaning of any provision of the Energy Administration

Current to September 19, 2012 À jour au 19 septembre 2012 Current to September 19, 2012 À jour au 19 septembre 2012

LastCurrent amended to September on July 6,19, 2012 2012 DernièreÀ jour modificationau 19 septembre le 62012 juillet 2012 Last amended on July 6, 2012 Dernière modification le 6 juillet 2012

Last amended on July 6, 2012 Dernière modification le 6 juillet 2012

Published by the Minister of Justice at the following address: Publié par le ministre de la Justice à l’adresse suivante : Published by the Minister of Justicehttp://laws-lois.justice.gc.ca at the following address: Publié par le ministre de la Justicehttp://lois-laws.justice.gc.ca à l’adresse suivante : http://laws-lois.justice.gc.ca http://lois-laws.justice.gc.ca Published by the Minister of Justice at the following address: Publié par le ministre de la Justice à l’adresse suivante : http://laws-lois.justice.gc.ca http://lois-laws.justice.gc.ca FUELLING STRONG Check the folded insert for an in-depth look into ECONOMIC AND how pipelines are enablers of prosperity. COMMUNITY GROWTH

The ability to transport large quantities of crude CEPA member companies provide employment oil and natural gas over long distances has been opportunities for Canadians. Transmission a contributor to Canada’s economic prosperity. pipelines generate hundreds of millions of dollars Canada’s crude oil and natural gas exports are in property tax revenue that is reinvested in the community and help fund important services. valued at more than $80 billion annually, the Local procurement, such as goods and services, majority of which are transported by pipeline. and community investments by CEPA members provide an economic boost and improved quality of life to the local and regional municipalities in which they operate. THE FUTURE OF CANADA’S PIPELINES

Canada’s pipeline industry has contributed to our For more information, please visit us at country’s economic prosperity and overall quality www.aboutpipelines.com or join the conversation of life. Over the next five years, CEPA members on Twitter (@aboutpipelines) or Facebook propose to invest tens of billions of dollars in (http://facebook.com/aboutpipelines). CEPA would pipeline projects. This would include expanding also like to hear your feedback on this fact book. existing networks and new pipeline infrastructure Please send an email to [email protected]. to access Asian markets. Looking ahead, CEPA will continue to play a key role in providing factual, science-based information to Canadians about the pipeline industry.

13 CEPA The Future of Canada’s Pipelines Growth Glossary of terms

Barrel (Bbl) – a unit of measurement of oil equal MB – thousand barrels to approximately 159 litres MB/d – thousand barrels per day BCF – billion cubic feet Right-of-Way – a pipeline right-of-way (ROW) BCF/d – billion cubic feet per day is the strip of land in which a pipeline is located BOE – barrels of oil equivalent TCF – trillion cubic feet Cubic Foot – unit of measurement of natural gas Liquids – crude oil, natural gas liquids (NGLs) and refined petroleum products such as gasoline or diesel Contact Us Canadian Energy Pipeline Association Suite 200, 505 - 3rd Street SW Calgary, Alberta T2P 3E6 Tel: 403.221.8777 Fax: 403.221.8760 [email protected] aboutpipelines.com 2012 Updated statistics

The Canadian Energy Pipeline Association (CEPA) represents Canada’s transmission pipeline companies who operate more than 115,000 kilometres of pipeline in Canada. CEPA’s mission is to enhance the operating excellence, business environment and recognized responsibility of the Canadian energy transmission pipeline industry through leadership and credible engagement between member companies, governments, the public and stakeholders.

These statistics are developed using CEPA member data. For more information about pipelines visit aboutpipelines.com. aboutpipelines

CANADA BC AB SK MN ON QC NB NS YK NWT CANADA

PIPELINE LENGTH - KILOMETRES IN 2012 Natural Gas 6,485 34,997 19,043 2,472 12,821 912 597 422 - - 77,750 KM Liquids 2,917 20,746 7,753 2,787 2,080 354 - - - 751 37,388 115,000 Total 9,403 55,743 26,796 5,259 14,901 1,266 597 422 - 751 115,138

PROPERTY AND CORPORATE TAXES IN 2012 (MILLIONS $) Property Taxes 106 224 61 34 150 7 7 6 - 2 597 $ M Corporate Taxes 10 73 19 10 55 4 - 1 - - 424 1,020 Total 116 297 80 44 205 11 7 6 - 2 1,022

LOCAL PROCUREMENTS IN 2012 (MILLIONS $) Field Offices 32 233 104 49 48 10 - - - 7 483 $ M Aboriginal 27 34 5 44 40 - - - - 1 150 630 Total 59 266 110 93 88 10 - - - 8 634

COMMUNITY INVESTMENT IN 2012 (MILLIONS $) Head Office 0.5 7.6 0.5 - 2.4 0.2 - - - - 11.2 $ M Field Offices 0.6 3.6 0.7 0.5 1.8 0.6 - - - - 7.8 20 Aboriginal 0.2 0.5 0.2 0.1 0.2 - - - - - 1.2 Total 1.3 11.7 1.4 0.6 4.4 0.8 - - - - 20.2

FULL-TIME EQUIVALENT EMPLOYEES IN 2012 Head Office 317 5,918 219 53 353 37 2 12 - - 6,911

Field Offices 310 1,397 304 61 302 19 13 9 - 16 2,432 9,000 Total 627 7,315 524 114 655 56 15 21 - 16 9,343

Safety Record 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Number of % Failure Incidents 0.088 0.075 0.089 0.077 0.210 0.150 0.130 0.219 0.196 0.170 0.274 99.999 (per 1,000 km) Number of Significant Failure 0.076 0.050 0 0.038 0.023 0.032 0.030 0.050 0.059 0.054 0.018 Incidents (per 1,000 km)

Liquid Released 64 25 2 210 8 2,402 58 605 333 4,961 492 (000s litres)

Natural Gas 7,200 5,779 370 895 8 4 4,078 7,760 21 2,793 3 Released (103m3)