EMERA BRUNSWICK PIPELINE COMPANY LTD. NATIONAL ENERGY BOARD BRUNSWICK PIPELINE APPLICATION HEARING ORDER GH-1-2006 EMERA BRUNSWICK ARGUMENT-IN-CHIEF DECEMBER 1, 2006 TABLE OF CONTENTS 1. INTRODUCTION ........................................................................................................1 2. BACKGROUND .........................................................................................................3 3. PURPOSE, NEED AND JUSTIFICATION OF THE PROJECT .................................4 3.1 "C ANADA NEEDS THE BRUNSWICK PIPELINE "........................................................4 3.1.1 Replacement Supply.............................................................................5 3.1.2 Demand Growth....................................................................................6 3.2 IMPACT ON OTHER PIPELINES AND SHIPPERS –COMMERCIAL STAKEHOLDERS .........7 3.3 ECONOMIC FEASIBILITY - MARKETS & SUPPLY - ALTERNATIVES .............................8 3.4 TIMING ............................................................................................................15 3.5 THE PROJECT MAKES GAS AVAILABLE TO THE MARITIME CANADA MARKET .........15 3.6 OTHER PROJECT BENEFITS ...............................................................................16 4. SAFETY ...................................................................................................................17 4.1 THE BRUNSWICK PIPELINE IS STATE -OF -THE -ART AND MEETS OR EXCEEDS CODE ..............................................................................................................17 4.2 RISK – PROBABILITY & CONSEQUENCE ..............................................................17 4.3 COMPARABLE PIPELINES ...................................................................................22 4.4 CONCLUSION ...................................................................................................23 5. CONSULTATION .....................................................................................................23 5.1 INTRODUCTION .................................................................................................23 5.2 LANDOWNERS ..................................................................................................24 5.3 THE GENERAL PUBLIC ......................................................................................25 5.4 GOVERNMENTS ................................................................................................26 5.5 ABORIGINAL GROUPS .......................................................................................26 5.6 REGULATORY AGENCIES ...................................................................................27 5.7 OTHER INTERESTED PARTIES ............................................................................28 5.8 CONCLUSION ...................................................................................................28 6. ENGINEERING AND CONSTRUCTION..................................................................30 6.1 IMPACTS ON CITY OF SAINT JOHN INFRASTRUCTURE ...........................................30 6.2 BLASTING DISTURBANCES AND DAMAGE ............................................................30 6.3 CONCLUSION ...................................................................................................30 7. OPERATIONS..........................................................................................................31 7.1 EMERGENCY RESPONSE ...................................................................................31 7.1.1 General ...............................................................................................31 7.1.2 Areas with Limited Access Points .......................................................32 7.2 CLOSURE OF LINE BLOCK VALVES .....................................................................32 7.3 SECURITY MANAGEMENT ..................................................................................32 7.4 SYSTEM INTEGRITY – IN-LINE INSPECTION FREQUENCY .......................................33 7.5 ATV ACCESS CONTROL MEASURES ..................................................................34 7.6 GAS QUALITY ...................................................................................................35 7.7 CONCLUSION ...................................................................................................35 8. ENVIRONMENT.......................................................................................................35 8.1 CONSIDERATION OF ALTERNATIVES ...................................................................35 8.1.1 "Alternatives To"..................................................................................35 8.1.2 "Alternative Means".............................................................................36 8.2 ENVIRONMENTAL ASSESSMENT .........................................................................40 8.3 ENVIRONMENTAL MITIGATION ............................................................................42 8.3.1 Introduction .........................................................................................42 8.3.2 Archaeology ........................................................................................42 8.3.3 Air Quality ...........................................................................................42 8.3.4 Blasting ...............................................................................................42 8.3.5 Contaminated Sites.............................................................................43 8.3.6 Noise...................................................................................................43 8.3.7 Watercourse Crossings.......................................................................44 8.3.8 Wetlands and Rare Species................................................................44 8.4 CONCLUSION ...................................................................................................45 9. ROCKWOOD PARK ................................................................................................45 10. CORRIDOR SELECTION ........................................................................................46 11. PART IV MATTERS .................................................................................................47 11.1 GROUP 2 STATUS .............................................................................................48 11.2 PRECEDENT AND TOLL AGREEMENTS .................................................................48 11.3 ACCESS – INTERCONNECTION POLICY ................................................................49 11.4 CONCLUSION ...................................................................................................50 12. LANDS ISSUES.......................................................................................................50 13. IRRELEVANCE AND LACK OF PROBATIVE VALUE OF ANADARKO’S EVIDENCE ...............................................................................................................51 14. COMMENTS ON DRAFT CERTIFICATE CONDITIONS (EXHIBIT A-40)...............54 14.1 DRAFT CONDITION 1 – GENERAL .......................................................................54 14.2 DRAFT CONDITION 2 – GENERAL .......................................................................54 14.3 DRAFT CONDITION 3 – ENVIRONMENTAL PROTECTION PLAN ................................54 14.4 DRAFT CONDITION 4 – ENVIRONMENTAL FOLLOW -UP PROGRAMS ........................54 14.5 DRAFT CONDITION 5 – TRADITIONAL ECOLOGICAL STUDY RECOMMENDATIONS .....54 14.6 DRAFT CONDITION 6 – CONSTRUCTION SCHEDULE .............................................54 14.7 DRAFT CONDITION 7 – CONSTRUCTION INSPECTION PROGRAM ............................54 14.8 DRAFT CONDITION 8 – ARCHAEOLOGICAL STUDIES AND MONITORING PLANS ........55 14.9 DRAFT CONDITION 9 – ACCESS MANAGEMENT PLANS .........................................55 14.10 DRAFT CONDITION 10 – CONSTRUCTION MANUALS .............................................55 14.11 DRAFT CONDITION 11 – INFRASTRUCTURE FACILITIES .........................................55 14.12 DRAFT CONDITION 12 – CONSTRUCTION PROGRESS REPORTS ............................55 14.13 DRAFT CONDITION 13 – HDD NOISE MANAGEMENT PLAN ...................................55 14.14 DRAFT CONDITION 14 – SAINT JOHN RIVER CROSSING .......................................55 14.15 DRAFT CONDITION 15 – ARCHAEOLOGICAL OR HERITAGE RESOURCE DISCOVERY .....................................................................................................55 14.16 DRAFT CONDITION 16 – EMERGENCY PROCEDURES MANUAL ..............................55 14.17 DRAFT CONDITION 17 – CONSULTATION ON EMERGENCY PROCEDURES MANUAL ..56 14.18 DRAFT CONDITION 18 – CONDITION COMPLIANCE BY A COMPANY OFFICER ..........56 14.19 DRAFT CONDITION 19 – EMERGENCY RESPONSE EXERCISE ................................56 14.20 DRAFT CONDITION 20 – EMERGENCY RESPONSE EXERCISE PROGRAM ................56 14.21 DRAFT CONDITION 21 – POST -CONSTRUCTION ENVIRONMENTAL REPORTS ..........56 14.22 DRAFT CONDITION 22 – ENVIRONMENTAL FOLLOW -UP PROGRAM REPORTS .........56 14.23 DRAFT CONDITION 23 – CERTIFICATE EXPIRATION ..............................................56 15. CONCLUSION .........................................................................................................56 Emera Brunswick Pipeline Company Ltd. December 1, 2006 GH-1-2006