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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 115,000 kilometres of pipeline in 97 per cent of Canada. CEPA’s mission is to enhance the operating Canada’s daily excellence, business environment and recognized natural gas and responsibility of the Canadian energy transmission pipeline industry through leadership and credible onshore crude engagement between member companies, oil production. governments, the public and stakeholders. TABLE OF CONTENTS

1. Canada’s Pipeline Network...... 1 2. Types of Pipelines...... 3 3. The Regulatory Landscape...... 5 4. Building and Operating Pipelines...... 6 5. CEPA Integrity First® Program...... 12 6. The History of Our 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 refined 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 petroleum products. our 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 Canada’s crude oil and natural gas from areas of transmission lines, pipelines criss-cross the country production to consumer markets. In fact, Canadians to service some of our most important needs. safely live, work and travel over pipelines every day Oil and natural gas resources are typically located without even knowing it. in rural and remote areas, while consumers are Canada’s pipeline industry has contributed to our located predominantly in urban areas across country’s economic prosperity and overall quality Canada. As a result, transportation of oil and of life. Over the next five years, CEPA members natural gas to markets by pipeline is a vital propose to invest tens of billions of dollars in component of our energy infrastructure. pipeline projects. They are proud to operate This vast network of pipelines, virtually all of which Canada’s pipeline network with the utmost regard is buried underground, transports almost all of for public 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 20 in Canada to circle 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 energy highways of the pipeline network, natural gas (and combinations of these transporting crude oil and natural gas products) from wellheads to oil batteries within a province and across provincial or and natural gas processing facilities. More international boundaries. There are more than than 250,000 kilometres of these lines are 115,000 kilometres of transmission pipelines concentrated in the producing provinces of in Canada, more than three times the length western Canada, primarily in Alberta. of Canada’s national 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 Types of Pipelines Enbridge LIQUIDS PIPELINES

Pembina Plains Midstream Suncor Inter Pipeline ccess

Kinder Morgan

Spectra Energy

Portland Montreal Trans-Northern

TransCanada NATURAL GAS PIPELINES Spectra Energy

TransCanada

Suncor

TransGas TCO

FortisBC

Trans Quebec & Maritimes

Canaport LNG Emera lliance Maritimes & Northeast

Enbridge legend existing proposed existing LNG Terminal proposed LNG Terminal sedimentary basin THE REGULATORY LANDSCAPE

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

5 CEPA The Regulatory Landscape 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 (ENGOs) 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. PIPELINE DESIGN AND STANDARDS

Designing and constructing a pipeline is a lengthy Prior to construction, a detailed route analysis must and complex process that considers a number be performed to adequately assess the specific of factors and requires a number of steps and topographical, environmental and social factors commitments before product begins to flow. This along the proposed right-of-way (a strip of land includes extensive stakeholder engagement and a where a pipeline is located). thorough review of the social and environmental factors.

6 CEPA Building and Operating Pipelines

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 welding process connecting the pipe. guided by a set of comprehensive standards issued CSA standards cover the design, construction, by the Canadian Standards Association (CSA). operation and maintenance of oil and gas pipeline systems and underground storage of petroleum In 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. Visit and coating of pipe walls and the integrity of the http://shop.csa.ca for more information.

7 CEPA Building and Operating Pipelines 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

LAND USE E FORESTED FORESTED CULTIVATED Township/Range Road B KP 3

O T ROUTING NEW 8 OWNERSHIP/DISPOSITION PATENTED C CROWN 2 M

O 6

Resource Road W : 0 Y 15 m PIPELINES -1 RIGHT-OF-WAY WIDTH R KP 2 69 TEMPORARY WORKSPACE Municipal Boundary E TEMPORARY WORKSPACE TEMPORARY WORKSPACE TEMPORARY WORKSPACE

G KP 4

MERCHANTABLE M

I SEE NOTE 9 TIMBER SALVAGE F

E KP 4.6

T When planning a pipeline, the industry makes every

A FENCE AND AVOID

effort to manage the unique environmental and

/ KP 1

SEE DWG. 3 F

S D

0 socio-cultural aspects of the proposed pipeline

O O 0

0 N

5 A route. Pipeline proponents conduct a thorough T 1 SEE DWG. 4 AND NOTE 7 A 1 6 ENVIRONMENTAL : C

I 1

F C 1 I PROTECTION R . E KP 0 assessment of the proposed right-of-way and I

C L .

E MEASURES A G O

P R C

S its surrounding natural environment to identify

S O T L F N SEE DWG. 1 AND NOTES 1, 2, 3, 5 C SEE DWG. 2 AND NOTES 1, 2, 3, 4, 6

I A S

T N A the unique features that must be protected I

S E N O 9 E I O 2 M D M 6 D M throughout the full lifecycle of the pipeline. This W Y R N W O 0 I

O 1 RESTRICTED ACTIVITY PERIOD JANUARY 15 TO APRIL 30 9- T L E

O R detailed review helps pipeline companies develop I 6 I

H A V A

P N N RARE PLANT R V E appropriate mitigation strategies to protect the P U I ENVIRONMENTAL MODERATE SLOPE WAPITI RIVER P N local environment. O C CONCERN m I E C E KEY WILDLIFE AND BIODIVERSITY ZONE 0 100 200 300 400 N R U SEED MIX SEE NOTE 8 G M LEGEND

Kilometre Post BEAVER LODGE PLAIN DISTRICT - WAPIT I RIVER PLAINS SECTION - SOUTHERN ALBERTA PHYSIOGRAPHIC REGION 100 metre interval

Proposed Pipeline

Existing Pipeline 0

(cm) ~25 cm ~10 cm

Township/Range Road B KP 3 O ND WATER WAPITI RIVER T 8 C 2 M

O 6

Resource Road

M W : 0

Y 1 N - RARE PLANT

R 9

O KP 2 6 Municipal Boundary E VEGETATION

G I KP 4

A V CENTRAL MIXEDWOOD SUBREGION - BOREAL FOREST NATURAL REGION

E KP 4.6 WAPITI RIVER

T FISH AND WILDLIFE

E KEY WILDLIFE AND BIODIVERSITY ZONE

/ KP 1

0 O 0 HERITAGE RESOURCES

0 N

5 T 1 A 1 6 : ENVIRONMENTAL NOTES REFERENCE DRAWINGS REVISIONS 1 R . C 1 E KP 0 1. Site specific environmental concerns and the corresponding environmental protection measures are positioned above the respective locIation of the photomosaic. NO. DATE DESCRIPTION BY CKCD APPD L . NO TITLE A G O R C Additional environmental protection measures are outlined in the Environmental Protection Plan. 0 MM/YY Report Title JONES LATERAL S O 1 Stripping: full right-of-way F N T

I 2. Avoid constructing during excessively wet or thawed conditions. Install prefabricated matting or corduroy along the trave l lane, if warranted, to minimize any rutting that may result from construction. S N A PIPELINE PROJECT I 2 Stripping: trench only S O E 3. Temp9orary workspace will be shared with the adjacent right-of-way where feasible. Additional temporary works pace wiIll be required at sharp sidebends, tie-ins, crossings of road and for the directional drill of the Wapiti River. O 2 6M D M 3 Install cross ditches and diversion berms W Y R W O 4. Minim0ize grubbing throughout the route. Grub tree roots (where required) with a brush rake attachment on the dozer Ito preserve surface soils. REFERENCE T 1 9- T L E ENVIRONMENTAL ALIGNMENT SHEET 1 of 1 O 4 Watercourse crossing: Directional drill 5. 6Salvage strippings from the full right-of-way to depth indicated. I H A A Route Revision 0. Date of Imagery: October 2011. 2011 SPOT5 ©2012 CNES, P N 6. Salvage strippings from the trench only to depth indicated. R P V Licensed by BlackBridge Geomatics Corp, www.blackbridge.com. Existing U I DATE: APPR.: P N Pipelines & Roads: IHS Inc. 2012; Hydrography: IHS Inc. 2004 & Natural 7. Directional drill the Wapiti River. C Resources Canada 2007; Geopolitical Boundaries: AltaLIS, 2012. August 2012 O I E 8. Seed disturbed portions of the right-of-way with appropriate seed mix or as directed by landowner. C E SCALE: REF: REV. N 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. R 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 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

LAND USE E FORESTED FORESTED CULTIVATED Township/Range Road B KP 3

O T 8 OWNERSHIP/DISPOSITION PATENTED C CROWN 2 M

O 6

Resource Road W : 0 Y 15 m -1 RIGHT-OF-WAY WIDTH R KP 2 69 TEMPORARY WORKSPACE Municipal Boundary E TEMPORARY WORKSPACE TEMPORARY WORKSPACE TEMPORARY WORKSPACE

G KP 4

MERCHANTABLE M

I SEE NOTE 9 TIMBER SALVAGE F

E KP 4.6

A FENCE AND AVOID

/ KP 1

SEE DWG. 3 F

S D

O O 0

0 N

5 A T 1 SEE DWG. 4 AND NOTE 7 A 1 6 ENVIRONMENTAL : C

I 1

F C 1 I PROTECTION R . E KP 0 I

C L .

E MEASURES A G O

P R C

S O T L F N SEE DWG. 1 AND NOTES 1, 2, 3, 5 C SEE DWG. 2 AND NOTES 1, 2, 3, 4, 6

I A S

T N A I

S E N O 9 E I O 2 M D M 6 D M W Y R N W O 0 I

O 1 RESTRICTED ACTIVITY PERIOD JANUARY 15 TO APRIL 30 9- T L E

R O I 6 I

H A V A

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

Kilometre Post BEAVER LODGE PLAIN DISTRICT - WAPIT I RIVER PLAINS SECTION - SOUTHERN ALBERTA PHYSIOGRAPHIC REGION 100 metre interval

Proposed Pipeline

Existing Pipeline 0

(cm) ~25 cm ~10 cm

Township/Range Road B KP 3 O ND WATER WAPITI RIVER T 8 C 2 M

O 6

Resource Road

M W : 0

Y 1 N - RARE PLANT

R 9

O KP 2 6 Municipal Boundary E VEGETATION

G I KP 4

A V CENTRAL MIXEDWOOD SUBREGION - BOREAL FOREST NATURAL REGION

E KP 4.6 WAPITI RIVER

T FISH AND WILDLIFE

E KEY WILDLIFE AND BIODIVERSITY ZONE

/ KP 1

0 O 0 HERITAGE RESOURCES

0 N

I 2. Avoid constructing during excessively wet or thawed conditions. Install prefabricated matting or corduroy along the trave l lane, if warranted, to minimize any rutting that may result from construction. S N A PIPELINE PROJECT I 2 Stripping: trench only S O E 3. Temp9orary workspace will be shared with the adjacent right-of-way where feasible. AIdentifiesdditional tempo rawhatry wor ks pace wiIll be requIdentifiesired at sharp sid efishbends , tiande-in s, crossings of road and for the directional drill of the Wapiti River. O 2 6M D Identifies what type of M 3 Install cross ditches and diversion berms W Y R W O 4. Minim0ize grubbing throughout the route. Grub tree roots (where required) with a brutypessh rake a toftac hsoilment oaren the dozer Ito preservwildlifee surface so speciesils. that REFERENCE T 1 9- T L E vegetation is located ENVIRONMENTAL ALIGNMENT SHEET 1 of 1 O 4 Watercourse crossing: Directional drill 5. 6Salvage strippings from the full right-of-way to depth indicated. I H A encountered along requireA specific Identifies the Route Revision 0. Date of Imagery: October 2011. 2011 SPOT5 ©2012 CNES, P N along the right-of- 6. Salvage strippings from the trench only to depth indicated. R P V Licensed by BlackBridge Geomatics Corp, www.blackbridge.com. Existing U I DATE: APPR.: the pipeline routeP environmentalN current use of the way, as well as any Pipelines & Roads: IHS Inc. 2012; Hydrography: IHS Inc. 2004 & Natural 7. Directional drill the Wapiti River. C Resources Canada 2007; Geopolitical Boundaries: AltaLIS, 2012. August 2012 which helps determineO I protection,E mitigation land (e.g. forested, 8. Seed disturbed portions of the right-of-way with appropriate seed mix or as directed by landowner. C E specific vegetation SCALE: REF: REV. N 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. specific construction andR compensation cultivated, cleared, 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 U that requires techniques. measures.G burn area, etc.). protection (e.g. rare M plants).

Building and Operating Pipelines BEAVER LODGE PLAIN DISTRICT - WAPITI RIVER PLAINS SECTION - SOUTHERN ALBERTA PHYSIOGRAPHIC REGION 8 CEPA

(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

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. MONITORING AND Check the folded insert for an in-depth MAINTENANCE look into 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 Building and Operating Pipelines 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. Construction and excavation activities can cause damage to pipelines. But this risk is highly preventable.

PREVENTING PIPELINE DAMAGE Click Before You Dig Click Before You Dig is a resource for Canadians Pipeline companies work with the public and third- to help them learn about any buried utilities that party construction and excavation companies to might be present on a property. Before landscaping, educate them about how they can help reduce the building a new fence or planting a garden, visit chance of damaging a pipeline when digging. www.clickbeforeyoudig.com to obtain written

approval and ensure your project won’t impact a

pipeline or other buried utility.

10 CEPA Building and Operating Pipelines 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, retirement or abandonment of a pipeline. They verify that what was committed to • Compliance meetings during the application stage, and set out as the • Emergency response terms 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 Energy11 CEPA Building Board and Operating PipelinesLoi spect of ansur international l’Office or interprovincial nationalpersonne morale régie par la Loi canadienne National Energy Board Loi surpower l’Office line; nationalsur les sociétés par actions. “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 CEPA INTEGRITY FIRST® PROGRAM

The industry carefully follows a strict set of safety It’s a significant program because safety requires a standards and government regulations to ensure high level of cooperation and particular attention to pipelines are operating safely and effectively. And safety culture across the industry. since 2012, CEPA and its 12 member companies have been taking these standards to a new level, CEPA’s role is to enhance industry collaboration and striving for zero pipeline incidents through CEPA enable companies to respectfully challenge each Integrity First. other to operate safely. CEPA Integrity First helps us to speed up our efforts to continuously improve to Similar to other sector programs, such as get to our publicly stated goal of zero incidents. Responsible Care® in the chemicals industry, CEPA Integrity First is about the pipeline industry working together to define and apply best practices that will strengthen our performance. CEPA INTEGRITY FIRST GUIDING PRINCIPLES

we are committed to: The members of CEPA are dedicated to continuing the development of a safe, socially Safety – Ensuring safe communities and and environmentally sustainable energy pipeline workplaces industry for Canadians. We commit ourselves to advancing a safety culture aimed at protecting The Environment – Minimizing the impact of our the health and safety of our communities, our operations on the environment and biodiversity workplaces and the environment everywhere we throughout every phase of pipeline operations operate. (design, construction, operations and retirement)

Socio-Economic Benefits – Creating lasting social and economic benefits to communities, regions and countries where we operate

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

13 CEPA History of Our Pipelines FUELLING STRONG

ECONOMIC AND COMMUNITY GROWTH

CEPA member companies provide employment The ability to transport large quantities of crude opportunities for Canadians. Transmission oil and natural gas over long distances has been pipelines generate hundreds of millions of dollars a contributor to Canada’s economic prosperity. in property tax revenue that is reinvested in the Canada’s crude oil and natural gas exports are community and help fund important services. Local valued at more than $80 billion annually, the procurement, such as goods and services, and majority of which are transported by pipeline. community investments by CEPA members provide an economic boost and improved quality of life to the local and regional municipalities in which they operate. 2013 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 CANADA

PIPELINE LENGTH - KILOMETRES IN 2013 Natural Gas 6,539 35,359 18,972 2,553 12,848 897 597 422 - - 78,187 KM Liquids 2,642 20,532 7,505 2,878 2,398 241 - - - 751 36,947 115,000 Total 9,181 55,891 26,477 5,431 15,246 1,138 597 422 - 751 115,134

PROPERTY AND CORPORATE TAXES IN 2013 (MILLIONS $) Property Taxes 112 250 77 35 155 6 7 6 - 2 650 $ M Corporate Taxes 9 94 15 7 37 2 - - - - 458 1,100 Total 121 344 92 42 192 8 7 6 - 2 1,108

LOCAL PROCUREMENTS IN 2013 (MILLIONS $) Field Offices 11 1,099 185 24 58 1 - - - 2 1,381 $ M Aboriginal 19 86 - - 7 - - - - - 112 1,490 Total 30 1,185 185 24 65 1 - - - 2 1,493

COMMUNITY INVESTMENT IN 2013 (MILLIONS $) Head Office 1.5 8.3 0.4 0.1 1.4 0.3 - - - - 12.0 $ M Field Offices 0.2 4.3 0.7 0.2 0.8 0.4 - - - - 6.5 25 Aboriginal 1.5 3.7 0.6 0.2 0.4 0.1 - - - 0.1 6.7 Total 3.1 16.3 1.7 0.5 2.6 0.8 - - - 0.1 25.2

FULL-TIME EQUIVALENT EMPLOYEES IN 2013 Head Office 106 8,470 172 - 37 - - - - - 8,785

Field Offices 318 2,159 338 116 556 56 2 - - 19 3,565 13,600 Total 424 11,881 510 116 593 56 2 - - 19 13,601

SAFETY RECORD 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Number of % Failure Incidents 0.088 0.075 0.089 0.077 0.210 0.150 0.130 0.219 0.196 0.170 0.267 0.402 (per 1,000 km) 99.999 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 0.050 Incidents (per 1,000 km)

Liquid Released 64 25 2 210 8 2,402 58 605 333 4,961 492 349 (000s litres) Natural Gas Released 7,200 5,779 370 895 8 4 4,078 7,760 21 2,793 3 9 (000 000s litres) THE FACTS ABOUT PIPELINES

An electronic version of this fact book is available at aboutpipelines.com, and printed copies can be obtained by contacting [email protected]. IMPORTANT

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