Enbridge ORR 2013 Operational Reliability Report For more information about Enbridge’s safety and operational reliability performance, please visit: enbridge.com/safety

“Our role comes with tremendous responsibility. That’s why safety and operational reliability is our Number 1 priority.”

Al Monaco, President and CEO “ThisOperationalReliabilityReportshowcases ourperformanceaswestrivefor100percent safety and zero incidents.”

Enbridge generates, transports and delivers the energy that powers the lives ofpeoplerightacrossNorthAmerica.Themillionsofbarrelsofoil,billionsof cubic feet of natural gas and nearly two gigawatts of renewable power that we safely deliver every day enable modern life and economic growth. Society has entrusted us with the responsibility to make sure the energy we all need—fuel for transportation, energy to heat and cool our homes, the flowofelectricitythatchargesourmobiledevicesandilluminatesthenight— istherewheneverit’srequired,reliableandsafe. Our role comes with tremendous responsibility. That’s why safety and operationalreliabilityisourNumber1priority.Ithastobe,anditalwayswill be. Because safely and reliably delivering the energy you count on means identifying and addressing problems before they occur, and being vigilant, disciplined and prepared. That’s why we continue to invest billions of dollars andwhyourteamdevoteshundredsofthousandsofhoursofeffortevery year to keep our systems running smoothly and without incident. As well as being a safe and reliable operator, we need to be a good neighbour. That means being transparent about our performance, and also helping you understand our business and the efforts we’re making, all the time, to do a better and safer job delivering your energy. That’s why we publish the Enbridge Operational Reliability Report. It’s a chance for you to seehowwemeasureup,readaboutwhatwe’redoingtoachieveourgoalof industry-leading safety performance, and witness our commitment to safety. It’s about accountability to you. We know that the safety of our operations is critically important to you— and that our role is about more than getting the energy we all rely on where itneedstogo,butalsodeliveringitwithoutincident,whileprotectingthe public, our workers, and the environment along the way. In recent years, we’ve made tremendous progress in safety and operational reliability. We’ve implemented a comprehensive Operational Risk Management Plan, to help us identify, manage and reduce key operational risks, and achieve industry leadership in six areas that will have the greatest impact on our safety performance and operational reliability. Ultimately,ourapproachtosafetyisbuiltonthefirmbeliefthatevery incident can be prevented. It’s a mindset that we strive to build in every memberoftheEnbridgeteam,andwhichdrivesourdecisionsandactions every day. This Operational Reliability Report showcases our performance as we strive for 100 per cent safety and zero incidents. It highlights where our efforts are succeeding, where we need to improve and how we compare to past years and others in the industry.

Sincerely,

Al Monaco, President and CEO

Enbridge’s Operational Risk Management Plan will help us achieve industry leadership in six key performance areas that will have the greatest impact on reducing risk.

Pipeline and Third-party facility (asset) damage avoidance integrity and detection management

Worker and Leak detection contractor Industry and control occupational Leadership systems safety

Incident Public safety and response environmental capacity protection

Enbridge also produces an annual Corporate Social Responsibility report which provides information on our performance, including our environmental impact, innovation, and economic and community benefits. Please view our CSR Summary online at csr.enbridge.com 3ta Glance / 3At At a Glance

Investment Performance Training Teamwork $4 Billion Since 2012 Safe and Reliable Investing in Safety Training Focused on Safety

2013 Our liquids pipelines systems Our team spent more than 160,000 hours Every member of the Enbridge team—more Over the past two transported approximately two billion in 2013 building their safety knowledge than 11,000 employees and contractors barrels of crude oil and liquids in Canada and skills. Over the past seven years, across North America—knows that you are years, we’ve invested and the U.S., with a safe delivery record we’ve quadrupled the average number of counting on us to make sure our operations more than $4 billion of 99.9997 per cent. environment, health and safety training are safe and reliable. We each have an hours per employee and increased the total active role to play to reach our goal of 100 2012 We delivered approximately in the ongoing number of environment, health and safety per cent safety where all incidents are 1.8 billion barrels and had a safe delivery training hours by more than six times. prevented. Our team includes hundreds of maintenance and record of 99.9994 per cent. experts who support our progress in the Total EH&S EH&S Training enhancement of our Over the past 10 years, we’ve Year Hours Hours/Employee areasofhealth,safety,environmentand transported 14 billion barrels, with a safe the integrity of our systems, and whose pipelines and facilities, 2007 25,015 4.9 delivery record of 99.9993 per cent. soleprofessionalfocusistodriveexcellent right across our 2008 30,418 5.4 safety and reliability performance. operations. 2009 38,007 6.5 That includes $2.4billionin2013alone. 2010 31,620 5.2 Currently, we have Our investment—combined with the 2011 36,567 5.6 commitment of each member of the 212 employees and Enbridgeteamtomakethesafetyand Our goal 2012 101,503 13.7 contractors focused on reliability of our operations our top 2013 161,960 19.9 priority—and our firm belief that every is always system integrity across incident can be prevented, helps us to 100 per cent our business. safely deliver the energy that we all count on. safety

Being a Good and Safe Neighbour Health, Safety & Environment Professionals over Time Public awareness of our operations is a key part of being a good neighbour and helping to maintain public safety and protect the environment. We talk to our neighbours, customers and key stakeholders about our projects, existing facilities, ongoing operations and 250 maintenance work so that they know what we’re doing, where and when. We also educate Since 2005, our team of our stakeholders about pipeline and natural gas safety, so they understand the critical role health, safety and environment they play in preventing incidents and keeping themselves and our operations safe. professionals has increased by In addition to providing extensive training to first responders along our rights-of-way, over 400%. and providing grants to first response organizations (totaling $7 million in Canada and the U.S. since 2002), we engaged extensively with our neighbours in 2013. For example, in the U.S. alone we sent more than 800,000 brochures in 2013 providing key stakeholders with information about pipeline safety, how to recognize and respond to a pipeline emergency and ensuring they have the necessary contact information. 173

Since 2002, we have provided $7 million 123 104 103 in grants to first response organizations in 94 87 CanadaandtheU.S.tohelpmaintainpublic 71 safety and protect the environment. 58

20092008200720062005 2010 2011 2012 2013 4 / ORR 2013 Safety

For more information on safety, visit enbridge.com/safety

Looking Out for Safety We're Ready Keeping Our Systems in Top Shape

Safety drives how we do business at When it comes to safety and operational Because our pipelines and distribution systems deliver a significant amount of energy Enbridge. Each member of our team reliability, the prevention of incidents to people that need it every day, we work hard to keep them in top condition. We send contributes to our safe and reliable before they happen is our primary sophisticated tools incorporating cutting-edge imaging and sensor technology through our operations by keeping safety as their objective. But we know that prevention pipelines to scan for features that could indicate a potential problem. Over the course of 2013 primary consideration in all actions and must be supported by strong emergency we performed 250 in-line inspections on our Liquids Pipelines, Gas Pipelines & Processing decisions. Employees also contribute by preparedness. For Enbridge this means and Gas Distribution systems. makingproactiveformalsafetyobservations investment to ensure we’ve got the Wherever we detected something that needed a closer look, we undertook an integrity toidentifyandaddressunsafeconditionsor resources and equipment in place to dig to expose the pipeline, physically inspect it and make any required repairs. actions, or to recognize and acknowledge support our incident response, and also In 2013, we completed more than 2,600 integrity digs as preventative maintenance safe behaviours and situations. that our people are trained and well- acrossourliquidsandnaturalgassystems. prepared to act safely and effectively in In our Gas Distribution business, over the course of 2013 we conducted natural gas leak the event of trouble. surveyson10,269kilometres(6,380miles)of distribution mains in its franchise area—which Lastyear,Enbridge In 2013, thousands of employees from equals about a quarter of its system. Wealsosurveyedcloseto448,000‘services’—the lines across our organization participated in used to carry gas from the mains to customers’ residences—this represented approximately a employees +contractors 478 drills, exercises and equipment quarter of all our natural gas services. made 59,449 safety deployments to test and hone our readiness in the event of an incident. Over 2012 observations, and 2013 we also invested $50 million in Over the course of 2013 we performed 250 in-line helping to make our equipment and training to improve our overall response capacity. inspectionson our Liquids Pipelines,GasPipelines operations safer. &ProcessingandGasDistributionsystems.

Safety Leadership AlwaysLookingfor a Safer Way Safety permeates how we operate. Our EnsuringLiquidsPipelinesIntegrity(2010 – 2013) senior leaders demonstrate their personal We’re constantly seeking ways to improve Dollars Spent on Number of Number of commitment to safe and reliable operations the safety and reliability of our systems Liquids Pipeline Liquids Pipelines Liquids Pipelines through field visits. Over the course and operations. That is why we are Integrity Maintenance Inspections Integrity Digs of 2013, 56 of our executive leaders, currently leading or participating in nearly including those outside of the operational 200researchprojectsfocused on leak business units, participated in 89 field detection and pipeline integrity right across visits across the organization, connecting our businesses, with related investments with hundreds of employees. of nearly $10 million.We’veinvestedour During the visits they travel to field resources in these projects to help advance locations and meet with employees to thescienceandtechnologythatwillmake betterunderstandtheworkthey’redoing, notjustEnbridgebutthewholeenergy to hear about challenges they face in their transportation industry safer. daily activities, to talk about safety, and to identify areas where Enbridge can better M

support the improvement of our safety B M M $150 practices and performance. $400 $870 $1.135 94 150 170 211 1,500 1,900 2,800 2,548 Likesafetyobservations,effectivefield visits by senior leaders are a proactive 1110 12 13 111013 111012 12 13 measure of our safety culture.

Integrity from the Inside

For all parts of our pipeline operations where in-line inspection technology can be employed, we regularly and continually inspect our liquids, gas distribution and gas transportation systems using these in-line inspection tools.

Liquids Pipelines Gas Distribution Gas Pipelines & Processing1

Total km we are able to inspect: 23,254km Total km we are able to inspect: 415.8 km Total miles we are able to inspect: 1,963 miles

Totalkminspectedsince2011:21,973 km Totalkminspectedsince2011:377.2 km Total miles inspected since 2011: 841 miles

Totalkminspectedsince2009:22,897 km Totalkminspectedsince2009:415.8 km Total miles inspected since 2009: 1,070 miles

1Over the past two years, Gas Pipelines & Processing has increased the length of pipeline mileage in which we are able to perform in-line inspections. In the years ahead, we will modify more pipelines to extend in-line inspection capability to even more of our system. As with all of our assets, we will inspect and assess these lines on an interval equal to or better than that required by regulation. Integrity 24/7/365 Peoplerelyontheenergywedeliversafelyandreliably24hoursaday, sevendaysaweek,year-round.That’swhyweinvestbillionsofdollarsin the safe operation, integrity and maintenance of our pipelines. Here are some of the ways we keep communities and the environment safe:

Constant monitoring of pressure, Regular calculations to confirm that the Continually feeding real-time data Input from our aerial and ground surveys temperature and other key data from volumes we receive into our pipelines into sophisticated computer models of and reports from the public to our hotline thousands of points along our pipelines precisely match the volumes we deliver our systems to double check system performance

EyesintheSky Talking to Our Neighbours Weregularlyflyallofour 25,000 km (15,000 miles) of Public awareness is key liquids pipeline rights-of-way to safe operations, so we looking for potential issues regularly communicate including excavation or Eyes on the Ground with our neighbours and third-party activity near customers about our work our lines that might pose All along our well-maintained Our ground-based surveys and make sure the public arisktosafety. rights-of-way, Enbridge staff use GPS and advanced knows how to stay safe watch for, report and respond imaging technology, to around our facilities and to any potential problems checkthedepthand pipelines. with our systems. position of our pipelines and identify ground movement.

Integrity Digs of the digs, our investigation shows that no repair is Ensuring Pipeline Health When our in-line inspections required. However, whether reveal a pipeline feature that a repair is required or not, • Each of our pipelines begins with requires a closer look, we every dig allows us to examine precisely manufactured pipe that is undertake an integrity dig to the entire length of pipeline rigorously inspected and tested. expose the pipe so we can exposed, which adds to our • Our routes are carefully selected examine it and make any overall knowledge and data and adhere to stringent engineering, necessary repairs. At some about the line’s integrity. design and environmental standards and regulations. • We protect our pipelines’ integrity, carefully managing pressures and monitoring key factors such as temperature, pipe movement and vibration. • We employ cathodic protection in addition to coatings to inhibit corrosion.

In-line Inspection Exploring innovative leak protection technologies

In-line inspection tools allow us to 1. SMARTBALL 2. VAPOUR-SENSING TUBES 3. FIBRE-OPTIC CABLES 4. HYDROCARBON- monitor the health of our pipeline systems Weusebowling-ball- We’re testing air-filled Two potential leak SENSING CABLES from the inside out. These sophisticated sized sensors inside our tubes laid alongside detection technologies We’re testing another tools use imaging technology adapted liquidslinestodetect pipelines that would usefibreopticsto technology involving from cutting-edge medical science such tiny leaks and mark their absorb and allow us to detect temperature cables that react as ultrasound and magnetics to scan location, and we’re testing detect minute amounts changes or sounds to the presence of our mainline systems, major natural gas smaller versions in our of hydrocarbon vapours associated with leaks or hydrocarbonstosignal mains and transmission pipelines on a natural gas systems. fromaleak. unauthorized excavation apotentialleak. millimetre-by-millimetre basis. along our pipelines. 6 / ORR 2013 How We Measure Up

WorkingwithRegulatorsandMeeting Reporting on Spills and Releases from Our Systems their Requirements In every aspect of our work right across our operations, we strive to meet or exceed all Our goal is 100 per cent safe operations and regulatory requirements to protect the safety of the public, our employees and contractors and the environment. Our objective is to comply with all regulations and in the instances zero incidents and we continually strive towards whereregulatorsnotifyusthatwearenotincompliance,wereviewandworkhardto that objective. quickly address all issues to bring our operations back into alignment with regulations. In 2013, we had 32 regulatory notifications across our operations in Canada and the U.S. When we do have spills and releases, we respond safely and effectively to maintain public safety, limit impact to the environment and thoroughly clean up. We also work to understand Company-Wide Regulatory Notifications the root causes and act upon them to prevent similar occurrences from happening in the future. We also publish our spill and release data so that you can see for yourself just how we are doing and the progress we’re making towards safety and operational reliability.

↳ Release History–Gases

In 2013, Gas Distribution had one significant event where a release of natural gas ledtoanexplosionresultinginpropertydamage.Noonewasinjuredintheincident. With each Gas Pipelines & Processing had one onsite gas release totaling 0.128 million standard regulatory notice, cubic feet, which met the reportable incident criteria for appropriate regulatory agencies. we review and ↳ Spill History–Liquids (2009 – 2013) work hard to quickly address In2013,ourliquidspipelinessystemstransportedapproximatelytwobillionbarrelsofcrude oilandliquidsinCanadaandtheU.S.,withasafe delivery record of 99.9997 per cent. all issues. Our company-wide reportable commodity spills, leaks and releases over the last five years have been: 35 32 #ofspills totalling # 1 The volume reported includes 4,246 barrels of crude Date and leaks of barrels oilproductreleasedtoatankroofthatdidnotresultin 25 25 24 2009 103 8,441 any environmental damage. However, since the release wasreportedtotheregulator,wehaveincludeditinthe 2010 91 34,258 total volume.

2011 94 2,366

2012 85 10,2241 2009 2010 2011 2012 2013 2013 117 4,325

Understanding Our 117 Company-Wide Reportable* Commodity (Liquids) Spills and Leaks

Segmented by system: Additional Facts:

Liquids Pipelines 114 of the 117 spills and leaks in 2013 were from Liquids Pipelines, totaling 4,298 barrels 90% 86% 14% Gas Pipelines & Processing Hadavolumeof Occurred at Enbridge Occurred on Enbridge Three of the 117 spills and leaks in 2013 10 barrels or less facilities (onsite) totaling rights-of-way or were 2,681 barrels notlocatedonEnbridge were from Gas Pipelines & Processing, property (offsite) totaling totaling 27 barrels 1,644 barrels

*“Reportable” refers to a spill, leak or release that is large or significant enough to require Enbridge to formally notify a regulatory agency. “Commodity” refers to a marketable hydrocarbon product transported in a pipeline, such as crude oil or natural gas. The reportable commodity spills and leaks we report here do not include spills or leaks of non-commodities such as brine, hydraulic fluid, drilling fluid, lube oil, etc. While we do report spills and leaks of non-commodities to regulatory authorities, beginning in 2013, we are reporting only commodity spills and leaks in our CSR Reports, which can be accessed at csr.enbridge.com. We strive to lead the industry in safety and operational reliability performance and the statistics show that our efforts are working. The frequency and volumeofspillsonourLiquidsPipelinessystemsaresignificantlylower than the rest of the industry, in both Canada and the United States, and we continuetodrivetowardsevenbetterperformance.

How Enbridge’s Liquids Pipelines Operations Compare with the Rest of the Industry

Frequency of Spills

Canada U.S.

From2004to2013,weoperated According to data from the U.S. Frequency of Spills– Canada 2008 – 20121 Frequency of Spills–U.S. 2004 – 20132 approximately 64 per cent of the NEB- Department of Transportation’s Pipeline Number of spills per 1,000 kilometres of pipeline Number of spills per billion barrel miles. regulated pipelines in Canada. and Hazardous Materials Safety From2008to2012,weexperienced Administration,between2011and2013, 0.39spillsper1,000kilometresof 0.60 weoperatedapproximately11.5 0.03 pipeline, compared with 0.58 spills per 0.55 per cent of the pipelines in the U.S. 1,000 kilometres of pipeline for the rest 3 From 2004 to 2013, we experienced 3% of the liquids pipeline industry in Canada 0.50 0.007 spills per billion barrel-miles, 0.025 (i.e. the rest of the industry not including 0.45 comparedwithanaverage0.026spills Enbridge). Our spill frequency was perbillionbarrel-milesfortherestof 0.40 0.02 approximately 33 per cent better than U.S. industry. Our spill frequency was 0.35 7 thatoftherestofindustry. about75percentbetterthanthatof 5% 0.30 therestoftheU.S.industry. 0.015 0.25

Our performance 0.20 0.01 Enbridge performed was 33 per cent better 0.15 75 per cent better than industry 0.10 0.005 0.05 than industry 0.58 0.39 0.007 0.026 0.00 0.0

Rest of Industry Enbridge Rest of Industry Enbridge

Volume of Spills

Canada U.S.

1 2 From 2008 to 2012, we spilled 16.9 cubic Volume Spilled–Canada 2008 – 2012 From 2004 to 2013, including the Volume Spilled–U.S. 2004 – 2013 metres of liquids per 1,000 kilometres Cubic metres spilled per 1,000 kilometres of pipeline volumes spilled due to our 2010 Marshall Number of barrels spilled per billion barrel miles of pipeline, compared with an average incident, we spilled 9.1 barrels per billion 30.0 12.0 of 22.2 cubic metres of liquids per 1,000 barrel miles in the U.S., compared with 11.0 2 kilometres of pipeline for the rest of the 11.9 barrels per billion barrel miles for the 4% Canadian liquids pipeline industry. Our spill 25.0 rest of the industry. Our spill volume was 10.0 volume was about 24 per cent lower than about 24 per cent lower than that of the 9.0 that of the rest of the industry. rest of the industry. 2 20.0 4% 8.0 7.0 Enbridge’s volume of 15.0 Our performance was 6.0 spills was 24 per cent better than that of the 5.0 lower than industry 10.0 rest of the industry by 4.0 24 per cent 3.0 5.0 2.0 1.0 22.2 16.9 11.9 9.1 0.0 0

Rest of Industry Enbridge Rest of Industry Enbridge

1 These data pertain to NEB-reportable spills of liquid hydrocarbons greater than 1.5 cubic metres or of any volume that could have a significant adverse effect on the environment, regardless of size, such as a spill of hydrocarbons into a water body. All data have been gathered from the NEB report entitled, Pipeline Incidents: Spills of Hydrocarbon Liquids, which was last modified September 13, 2013. In Enbridge’s case, the data pertain to our Enbridge Pipelines Inc., Westpur, and Norman Wells pipelines.

2 Spills from onshore pipelines, including valve sites. Spills that took place within stations or terminals on company property are excluded from the data. The data includes spills of five barrels or more, or those involving a spill to water, death, injury, fire explosion or damages exceeding US $50,000; for smaller spills, operators were not required to specify the part of the system, such as onshore pipelines, including valve sites until 2010. “Volume Spilled” is the number of barrels spilled. The resulting bar graph shows the relationship between Enbridge’s spill ratio and that of the industry. This comparison is based on the data available through U.S. Department of Transportation databases for its mandatory accident and mileage reports from operators (Forms 7000-1 and 7000-1.1). Designed and produced by Leo Burnett Canada. Printed in British Columbia, Canada, by Blanchette Press. Blanchette by Canada, Columbia, British in Printed Canada. Burnett Leo by produced and Designed

Enbridge’s Current Assets

Enbridge Inc. Headquarters 1 Enbridge Pipelines Inc. Headquarters Calgary, Alberta, Canada Enbridge Energy Partners, L.P. Headquarters 2 Houston, Texas, USA Enbridge Gas Distribution Headquarters 3 Toronto, Ontario, Canada

Liquids Systems and Joint Ventures Natural Gas Systems and Joint Ventures Power Transmission Gas Distribution

Wind Assets Storage Norman Wells

Solar Assets Waste Heat Recovery

Geothermal Assets Fuel Cell

Zama

Fort St. John

Fort McMurray Cheecham Kitimat

Edmonton Hardisty

Blaine Calgary 1 Seattle Regina Lethbridge Rowatt Cromer Portland Gretna Great Falls Minot Clearbrook Montreal

Superior Ottawa

Toronto Casper 3 Bu alo Salt Lake City Sarnia

Toledo Denver Chicago Flanagan Las Vegas Patoka Wood River

Cushing Tulsa

Houston 2 New Orleans

Enbridge Operations

EnbridgeInc.isaleaderinenergytransportationanddistributioninNorthAmerica. We are Canada's largest producer of solar power and second largest producer of We also have a significant and growing involvement in natural gas gathering, transmission windpower.Intotal,wehaveinterestsinmorethan1,800megawattsofrenewableand and gas processing businesses, and an increasing involvement in electricity transmission alternative energy generating capacity. and renewable energy. As a transporter of energy, we operate the world’s longest crude oil and liquids transportation system. In 2013, we delivered more than two billion barrels of crude oil We are proud to have more than 11,000 employees and liquids through our systems to customers in Canada and the U.S. Asadistributorofenergy,weownandoperateCanada’slargestnaturalgas and contractors working with Enbridge across distribution company and provide distribution services in Ontario, Quebec, Canada and the U.S. New Brunswick and New York State.

Enbridgeiscommittedtoreducingitsimpactontheenvironmentineveryway,including the production of this publication. This report was printed entirely on FSC® Certified paper, which is manufactured entirely with wind energy and contains 100% post-consumer recycled fibre.