PEMBINA PIPELINE CORPORATION ANNUAL INFORMATION FORM For the Year Ended December 31, 2017 February 22, 2018 TABLE OF CONTENTS Page GLOSSARY OF TERMS ........................................................................................................................................ - 1 - ABBREVIATIONS AND CONVERSIONS .............................................................................................................. - 12 - NON–GAAP MEASURES .................................................................................................................................. - 13 - FORWARD–LOOKING STATEMENTS AND INFORMATION ................................................................................ - 14 - CORPORATE STRUCTURE ................................................................................................................................ - 17 - Name, Address and Formation ................................................................................................................ - 17 - Pembina's Subsidiaries ............................................................................................................................ - 17 - Amended Articles .................................................................................................................................... - 18 - GENERAL DEVELOPMENTS OF PEMBINA ......................................................................................................... - 18 - Developments in 2015 ............................................................................................................................ - 19 - Developments in 2016 ............................................................................................................................ - 20 - Developments in 2017 ............................................................................................................................ - 21 - 2018 Year to Date Developments ........................................................................................................... - 23 - Significant Acquisitions ............................................................................................................................ - 24 - DESCRIPTION OF PEMBINA'S BUSINESS AND OPERATIONS ............................................................................. - 24 - Pembina's Business Objective and Strategy ............................................................................................ - 24 - Overview of Pembina's Business ............................................................................................................. - 24 - Operations Overview............................................................................................................................... - 26 - Conventional Pipelines Business ............................................................................................................. - 27 - Oil Sands & Heavy Oil Business ............................................................................................................... - 29 - Gas Services Business .............................................................................................................................. - 30 - Midstream Business ................................................................................................................................ - 32 - Veresen Business ..................................................................................................................................... - 35 - OTHER INFORMATION RELATING TO PEMBINA'S BUSINESS ........................................................................... - 38 - Information and Communication Systems .............................................................................................. - 38 - Integrity Management ............................................................................................................................ - 38 - Industry Regulation ................................................................................................................................. - 39 - Environmental Matters ........................................................................................................................... - 41 - Safety Management Systems .................................................................................................................. - 41 - Pipeline Rights-of-Way and Land Tenure ................................................................................................ - 42 - Indemnification and Insurance ................................................................................................................ - 42 - Employees ............................................................................................................................................... - 42 - Corporate Governance and Corporate Social Responsibility .................................................................. - 42 - CANADIAN OIL AND GAS INDUSTRY ................................................................................................................ - 44 - General .................................................................................................................................................. - 44 - Canadian Crude and Heavy Oil Overview ................................................................................................ - 45 - NGL Overview .......................................................................................................................................... - 46 - Natural Gas Transportation ..................................................................................................................... - 48 - Midstream Services for Crude Oil, Synthetic Crude Oil & NGL ............................................................... - 48 - DESCRIPTION OF THE CAPITAL STRUCTURE OF PEMBINA ............................................................................... - 49 - Common Shares ...................................................................................................................................... - 49 - Class A Preferred Shares.......................................................................................................................... - 49 - Class B Preferred Shares .......................................................................................................................... - 51 - TABLE OF CONTENTS (continued) Page Premium Dividend™ and Dividend Reinvestment Plan ........................................................................... - 52 - Series F Convertible Debentures ............................................................................................................. - 52 - Credit Facilities ........................................................................................................................................ - 52 - Medium Term Notes ............................................................................................................................... - 53 - Other Debt............................................................................................................................................... - 55 - Credit Ratings .......................................................................................................................................... - 55 - DIVIDENDS AND DISTRIBUTIONS .................................................................................................................... - 56 - Cash Dividends ........................................................................................................................................ - 56 - MARKET FOR SECURITIES ................................................................................................................................ - 59 - Trading Price and Volume ....................................................................................................................... - 59 - Prior Sales ................................................................................................................................................ - 61 - DIRECTORS AND OFFICERS .............................................................................................................................. - 61 - Directors of Pembina ............................................................................................................................... - 61 - Executive Officers of Pembina................................................................................................................. - 64 - Conflicts of Interest ................................................................................................................................. - 65 - AUDIT COMMITTEE INFORMATION ................................................................................................................ - 65 - The Audit Committee's Charter ............................................................................................................... - 65 - Composition of the Audit Committee and Relevant Education and Experience ..................................... - 66 - Pre-Approval Policies and Procedures for Audit and Non-Audit Services ............................................... - 67 - External Auditor Service Fees .................................................................................................................