NOVA Chemicals Redwater Lateral Upgrade. Project Information Document and Confirmation of Non-objection

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1 NOVA Chemicals Redwater Lateral Upgrade Project Information Document and Confirmation of Non-objection December 20, 2016

2 NOVA Chemicals Redwater Lateral Upgrade 2 Contents Project Necessity... 3 Project Description... 3 Project Specifications... 4 Construction and Operational Safety... 5 Project Schedule... 6 Regulatory Requirements... 6 Contact Information... 7 Further Information... 8 Location of Proposed Redwater Lateral Pipeline Replacement Project... 9 Confirmation of Non-objection NOVA Chemicals logo is a registered trademark of NOVA Brands Ltd.; authorized use/utilisation autorisée. Responsible Care is a registered trademark of the Chemistry Industry Association of Canada (CIAC).

3 NOVA Chemicals Redwater Lateral Upgrade 3 `NOVA Chemicals Corporation Date: October 21, 2016 Red Deer Pipeline Office #6, Street Red Deer, Alberta Canada T4P 3V3 Telephone: (403) Fax: (403) Stakeholder Name. Stakeholder Address Location: NW ¼ W4M RE: NOVA Chemicals Redwater Lateral Upgrade NOVA Chemicals Corporation (NOVA Chemicals) is proposing to upgrade a pipeline segment in the Pembina Redwater Fractionation Site (RFS) plant footprint, within Sturgeon County. The proposed replacement will be approximately 111 metres long, with an 8-inch ( mm) outside diameter. The pipeline wall thickness will be increased from 6.4 mm to 8.2 mm. The old section of pipe will be cut out and the new section installed in the same alignment. We are seeking the input and views of landowners and stakeholders along the route of the Redwater Lateral Upgrade Project prior to submitting project applications in accordance with the requirements of the Alberta Energy Regulator (AER). You have been identified as an impacted party and therefore subject to the notification requirements as specified in Directive 056. Please review the information provided below and if you have any questions or concerns, contact one of the identified NOVA Chemicals representatives. NOVA Chemicals is committed to full disclosure of its planned projects so that landowners, occupants, crown disposition holders, local and urban authorities, aboriginal communities, and other groups or individuals with interests in the area are informed of the activities proposed. The following information summarizes NOVA Chemicals plans regarding the above noted pipeline amendments. Project Necessity The proposed applications for this pipeline are required such that the section of pipe be upgraded to heavy wall pipe to meet the requirements of CSA Z662 for railway crossings to be installed above the line by Pembina NGL Corporation (Pembina). This will protect our infrastructure from damage and meet regulatory requirements. As mandated, AER Directive 056 requires parties whose rights may be directly and adversely impacted by the nature and extent of the proposed project to be consulted and/or notified of the project specific details. Project Description The existing Redwater Lateral will be directly impacted by construction of a new Pembina rail track. The pipeline wall thickness will be increased from 6.4 mm to 8.2 mm, and the old section of pipe cut out and the new section installed in the same alignment. NOVA Chemicals is planning to install the replacement

4 NOVA Chemicals Redwater Lateral Upgrade 4 pipeline segment by open cut methods. This will require hauling, stringing, welding, and hydrotesting of the new pipe section. The new pipe section will then be welded into the existing licensed line. Location: Pembina Redwater Fractionation Site (RFS) plant footprint, Sturgeon County Route: On industrial land, within the existing NOVA Chemicals pipeline right-of-way (ROW) Product to be transported: Ethylene used by our customers to produce a variety of consumer and industrial products. Project Specifications Substance and H 2S concentration Ethylene, HVP 0.00 mol/kmol H2S Pipeline License # Pipeline Location Emergency Protection Zone Outside Diameter Pipeline Wall Thickness Approximate Length Pipe Grade and Category Max. Operating Pressure Minimum Earth Cover Cathodic Protection LSD NW W4M 750 m from the ROW line mm (8 inch) 8.2 mm 111 m Grade 359 Category II, CSA Z245.1, CSA Z662, YJ2K Coating 9930 kpa 1.5 m Yes AER Pipeline Category-Type: D-530 Setbacks Flaring / Venting The project does not affect existing setback or the width of the right-of-way that is already associated with this existing pipeline. There will be no flaring, venting, emissions or source of odors associated with the normal operation of this line.

5 NOVA Chemicals Redwater Lateral Upgrade 5 Construction and Operational Safety At NOVA Chemicals we care about the safety of our neighbours, the landowners, communities and the environment along the pipeline systems we operate and at all of our petrochemical facilities. As in all of our operations, proposed construction activity will be conducted with the utmost consideration for public safety, landowners adjacent to our facilities, and environmental integrity. Strict guidelines will be in place to make sure construction is carried out safely and with minimal inconvenience to landowners and others in the area including the following: Comprehensive measures will be taken to minimize construction noise impacts, in compliance with the AER Directive Noise Control. No significant noise is expected from the operation of the proposed pipeline and associated pipeline installations During construction, traffic may increase for a short period of time at the Pembina RFS site location All necessary measures will be taken to mitigate any noise impacts in the area Comprehensive dust control mitigation measures will be incorporated in the construction procedures Coordination with local authorities will take place throughout construction, to ensure effective equipment transportation control and pipeline construction safety During construction, we will work with landowners to minimize disturbance, and topsoil will be salvaged and replaced to maintain soil capability Following construction, in consultation with landowners, we will ensure disturbed lands are appropriately reclaimed as quickly as possible. Once the project enters the operational phase, system monitoring and control including leak detection capabilities will be accomplished through the Supervisory Control and Data Acquisition (SCADA) equipment and the ROW will be routinely inspected by operations staff. NOVA Chemicals personnel are training to recognize hazards and deal with emergency situations so that any abnormal situations that might arise can be quickly detected and corrected. A Pipeline Emergency Response Plan is in place for this pipeline to address public safety during pipeline operations. It allows everyone to be prepared to promptly respond to the unlikely event of a problem before it escalates into an emergency.

6 NOVA Chemicals Redwater Lateral Upgrade 6 Project Schedule Pipeline Project planning: design, routing, environmental reviews, 4 th Quarter, 2016 and engineering Regulatory licensing 4 th Quarter, 2016 Construction 1 st Quarter, 2017 Completion and commissioning 1 st Quarter, 2017 Project consultation and communication will be ongoing through all development phases of the project Regulatory Requirements Once stakeholder input is received and the public consultation and notification process is completed, NOVA Chemicals plans to submit regulatory applications for the proposed Redwater Lateral Upgrade project including: An Energy Development application to the AER for the pipeline lateral for a license to replace and operate the proposed pipeline segment, in compliance with Part 4 of the Alberta Pipeline Act and AER Directive 056; and County Development Permit(s) and any other permits required.

7 NOVA Chemicals Redwater Lateral Upgrade 7 Contact Information Thank you for taking the time to review this project information. We are seeking the input and views of landowners and stakeholders along the route of the proposed Redwater Lateral Upgrade Project prior to submitting project applications to regulatory agencies. We encourage open, two-way communication with all our project stakeholders. We are committed to incorporating your suggestions where possible and ensuring the safe and environmentally sound construction and operation of this project. For additional information about this project or for any clarification you require, please contact us and we will be happy to provide you with all the help we can, at: NOVA Chemicals Pipeline Office #6, Street Red Deer, AB T2P 3V3 Telephone: Project Contacts: Mel Gray, Project Manager mel.gray@novachem.com Andrea Brack, Pipeline Environmental Regulatory Specialist Andrea.Brack@novachem.com NOVA Chemicals Corporation Emergency Toll Free Line:

8 NOVA Chemicals Redwater Lateral Upgrade 8 Further Information The following information is enclosed with this project description document: A detailed description of the proposed project A letter from the CEO of the Alberta Energy Regulator (AER) AER Brochure Understanding Oil and Gas Development in Alberta AER Publication Proposed Oil and Gas Wells, Pipelines and Facilities: A Landowners Guide AER Publication The AER and You: Agreements Commitments and Conditions AER Publication Expressing your Concerns How to File a Statement of Concern about an Energy Resource Project Our brochure: Taking Care along the pipelines we operate which is a guide providing you with information on our approach to very high standards for pipeline safety and integrity, our emergency preparedness plans, and landowner rights and responsibilities Other AER publications are available upon request and online at EnerFAQs (Q&As) What is the AER? Having Your Say at an AER Hearing Inspections and Enforcement of Energy Developments in Alberta Explaining AER Setbacks Flaring and Incineration All About Alternative Dispute Resolution (ADR) How to Register a Private Surface Agreement Fact Sheets Alberta Energy Regulator Governance Assurance, Compliance, and Enforcement Closure Abandonment, Reclamation, and Remediation Emergency Planning, Preparedness, and Response Environmental Protection and Enhancement Act Mines and Minerals Act Public Lands Act Water Act Reclamation and Remediation Responding to an energy incident

9 NOVA Chemicals Redwater Lateral Upgrade 9 Location of Proposed Redwater Lateral Pipeline Upgrade Project NW ¼ W4M Segment to upgrade

10 NOVA Chemicals Redwater Lateral Upgrade 10 Confirmation of Non-objection I/We of Stakeholder Name., understand the project as described in this PROJECT INFORMATION DOCUMENT and have NO OBJECTIONS to the AER issuing a license for this project. Dated:, 2016 Stakeholder Name Per: Delivered by, this day of, Comments or Concerns Regards, NOVA Chemicals Corporation By its representative: Scott Mackenzie Land Consultant