Alaska Pipeline Project Resource Report No. 1 Preliminary Draft USAG-UR-SGREG-000002 ALASKA PIPELINE PROJECT USAG-UR-SGREG-000002 PRELIMINARY DRAFT RESOURCE REPORT 1 APRIL 2011 PAGE 1-I Introduction TransCanada Alaska Company, LLC and Foothills Pipe Lines, Ltd., working cooperatively with ExxonMobil, are collectively progressing the Alaska Pipeline Project1. The goal of APP is to treat, transport, and deliver gas from the North Slope of Alaska to markets in North America. This preliminary draft resource report pertains only to that portion of the Project in Alaska. Unless the context otherwise requires, references in the resource reports to APP refer only to the Alaska portion of the project. The pipelines, Gas Treatment Plant, and associated facilities described in this document are based on the estimated volumes of gas from projected customer commitments. If final volumes are significantly different, the design will be adjusted as needed. The location information, facility descriptions, resource impact data, construction methods, and mitigation measures presented in this report are preliminary and subject to change. APP is currently conducting engineering studies, environmental resource surveys, agency consultations, and stakeholder outreach efforts to further refine and define the details of the project. In particular, the route through the following areas is being more closely analyzed: • Alaska’s North Slope, including the Prudhoe Bay Unit Area; • The AtigunPass through the Brooks Range; • The Yukon River crossing; • The City of Fairbanks, including residential and commercial development, and proximity to Eielson Air Force Base; • The Delta Junction area, including waterbody crossings and residential development; • Multiple locations between Delta Junction and the Alaska-Yukon border, including fault crossings; and • The Upper Tanana region near Tetlin. Yellow highlighting is used throughout this preliminary draft Resource Report to highlight selected information that is pending or subject to change. 1 The Alaska Pipeline Project is referred to herein as either APP or the Project. ALASKA PIPELINE PROJECT USAG-UR-SGREG-000002 PRELIMINARY DRAFT RESOURCE REPORT 1 APRIL 2011 PAGE 1-II TABLE OF CONTENTS 1.0 RESOURCE REPORT 1 – GENERAL PROJECT DESCRIPTION ..............................1-1 1.1 PROJECT OVERVIEW .....................................................................................1-1 1.2 PROJECT PURPOSE AND NEED ...................................................................1-4 1.3 LOCATION AND DESCRIPTION OF FACILITIES ............................................1-4 1.3.1 Pipeline Facilities ...................................................................................1-5 1.3.1.1 Point Thomson Gas Transmission Pipeline .............................1-5 1.3.1.2 Alaska Mainline .......................................................................1-7 1.3.2 Aboveground Facilities ........................................................................1 -10 1.3.2.1 Gas Treatment Plant .............................................................1 -10 1.3.2.2 Pipeline Aboveground Facilities .............................................1 -11 1.3.3 Associated Infrastructure .....................................................................1 -16 1.3.3.1 Gas Treatment Plant .............................................................1 -16 1.3.3.2 Pipeline Facilities ...................................................................1 -17 1.4 LAND REQUIREMENTS .................................................................................1 -25 1.4.1 Pipeline Facilities .................................................................................1 -27 1.4.2 Aboveground Facilities ........................................................................1 -28 1.4.2.1 Gas Treatment Plant .............................................................1 -28 1.4.2.2 Pipeline Aboveground Facilities .............................................1 -29 1.4.3 Associated Infrastructure .....................................................................1 -32 1.4.3.1 Gas Treatment Plant .............................................................1 -32 1.4.3.2 Pipeline Facilities ...................................................................1 -33 1.5 CONSTRUCTION SCHEDULE .......................................................................1 -37 1.5.1 GTP Site Preparation ..........................................................................1 -38 1.5.2 GTP Site Construction .........................................................................1 -38 1.5.3 Pipeline Construction...........................................................................1 -40 1.6 CONSTRUCTION ACTIVITIES .......................................................................1 -40 1.6.1 Logistics ..............................................................................................1 -40 1.6.1.1 Seasonal Ice-Window Open and Close Dates ....................... 1-42 1.6.1.2 Haul Road Truck Traffic .........................................................1 -42 1.6.1.3 Barge Traffic and Whaling .....................................................1 -42 1.6.2 Typical Pipeline Construction Procedures ...........................................1 -42 1.6.2.1 Surveying ..............................................................................1 -42 1.6.2.2 Clearing .................................................................................1 -44 1.6.2.3 Grading .................................................................................1 -44 1.6.2.4 Ice and Snow Work Pads and Access Roads ........................ 1-45 1.6.2.5 Erosion Control on the Right-of-Way During Construction ..... 1-46 1.6.2.6 Stringing ................................................................................1 -47 1.6.2.7 Bending .................................................................................1 -47 1.6.2.8 Production Welding ............................................................... 1-47 1.6.2.9 Joint Coating .........................................................................1 -47 1.6.2.10 Trenching ..............................................................................1 -48 1.6.2.11 Lowering In, Tie-ins, and Backfilling.......................................1 -48 1.6.2.12 Testing and Final Tie-Ins .......................................................1 -48 1.6.2.13 Cleanup and Rehabilitation ....................................................1 -49 1.6.3 Special Pipeline Construction Procedures ...........................................1 -49 1.6.3.1 Wetland Crossings ................................................................1 -49 ALASKA PIPELINE PROJECT USAG-UR-SGREG-000002 PRELIMINARY DRAFT RESOURCE REPORT 1 APRIL 2011 PAGE 1-III 1.6.3.2 Waterbody Crossings ............................................................1 -50 1.6.3.3 Road and Highway Crossings................................................1 -57 1.6.3.4 Trans Alaska Pipeline System, Utility and Other Pipeline Crossings ..............................................................................1 -58 1.6.3.5 Proximity to Highways, Major Roads, TAPS, and Other Pipelines and Parallel Utilities ................................................1 -59 1.6.3.6 Longitudinal and Cross Slopes ..............................................1 -59 1.6.3.7 Geologic Faults .....................................................................1 -60 1.6.3.8 Agricultural Land....................................................................1 -61 1.6.3.9 Residential, Commercial, and Industrial Areas ...................... 1-61 1.6.3.10 Pipeline Construction in Permafrost .......................................1 -62 1.6.3.11 Blasting .................................................................................1 -63 1.6.3.12 Contaminated Soils ............................................................... 1-63 1.6.4 Aboveground Facility Construction Procedures ...................................1 -63 1.6.4.1 Gas Treatment Plant .............................................................1 -63 1.6.4.2 Compressor Stations .............................................................1 -64 1.6.4.3 Custody Transfer Meter Stations ...........................................1 -64 1.6.4.4 Mainline Block Valves and Launchers and Receivers ............ 1-65 1.6.5 Infrastructure Construction ..................................................................1 -65 1.6.5.1 Gravel Pads ...........................................................................1 -65 1.6.5.2 Borrow Sites ..........................................................................1 -66 1.6.5.3 Access Roads .......................................................................1 -66 1.6.6 Construction Workforce .......................................................................1 -66 1.7 ENVIRONMENTAL COMPLIANCE, TRAINING, AND INSPECTION .............. 1-67 1.7.1 Environmental Compliance ..................................................................1 -67 1.7.2 Environmental Training ........................................................................1 -67 1.7.3 Environmental Inspection ....................................................................1 -67 1.8 OPERATION AND MAINTENANCE PROCEDURES ......................................1 -68 1.8.1 Pipeline and Aboveground Facility Operations ....................................1 -68 1.8.1.1 Pipelines, Meter Stations,