February 21, Ferus LNG Inc. Suite 1220, th Avenue SW Calgary, AB T2P 3C5. Mr. Jason Beck, Manager Regulatory Affairs. Dear Mr.

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1 Diane Roy Director, Regulatory Affairs - Gas FortisBC Energy Inc. 0 Fraser Highway Surrey, B.C. VN 0E Tel: (0) - Cell: (0) 0-0 Fax: (0) -0 diane.roy@fortisbc.com Regulatory Affairs Correspondence gas.regulatory.affairs@fortisbc.com Ferus LNG Inc. Suite 0, 0 th Avenue SW Calgary, AB TP C Attention: Mr. Jason Beck, Manager Regulatory Affairs Dear Mr. Beck: Re: FortisBC Energy Inc. ("FEI") Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. On September, 0, FEI filed the Application as referenced above. In accordance with the British Columbia Utilities Commission Order No. G-- setting out the Revised Regulatory Timetable for the review of the Application, FEI respectfully submits the attached response to Ferus IR No.. If there are any questions regarding the attached, please contact the undersigned. Yours very truly, FORTISBC ENERGY INC. Original signed: Diane Roy Attachment cc ( only): Commission Secretary Registered Parties

2 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: INTRODUCTION FORECAST DEMAND FOR LNG TO 0 LNG ACTIVITIES AND PRESCRIBED UNDERTAKINGS Exhibit B-, Section., Table -: LNG Demand Forecast 0-0 Exhibit B--, FortisBC IR No...: FortisBC confirms that the demand projections in the Application only include LNG demand related to vehicles that have received vehicle incentives as part of a prescribed undertaking (Prescribed Undertaking) under the Greenhouse Gas Reduction (Clean Energy) Regulation ("GGRR") enacted by the Province of British Columbia on May, 0. Exhibit B--, FortisBC IR No...: FortisBC advises that the $ million limit on funding in Prescribed Undertaking would be treated as an aggregate limit for all FEU utilities and that, absent further direction from the Ministry, the FortisBC Energy Utilities intend to operate within the overall $ million limit. BCUC Order G-0-, Report on Inquiry (Inquiry) into the Offering of Products and Services in Alternative Energy Solutions and Other New Initiatives (Inquiry Decision): In the Inquiry Decision (pp. -), the Commission strongly recommends that any LNG activities outside the Prescribed Undertaking be undertaken by a separate Non-Regulated Business.. Please confirm that FortisBC refers to the LNG activities described in Section () of the GGRR as "Prescribed Undertaking " and those in Section () as "Prescribed Undertaking ". If not confirmed, please explain why not. Confirmed 0. Please confirm that FortisBC speaks for all regulated companies within the FortisBC family, when it says that " FEU intends to operate within the overall $ million limit.", that is, the $ million limit will apply to the entire group of FortisBC companies in aggregate. If not confirmed, please explain why not.

3 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Confirmed 0. Please confirm that the limits for Prescribed Undertaking are similarly aggregate limits for the entire group of FortisBC companies. While the language of the GGRR applies to public utilities and permits each of the FortisBC Energy Utilities (FEI, FEVI and FEW) to undertake its own expenditures under the GGRR separately, the FEU have indicated that it will apply the limits under each of the three prescribed undertakings to the FEU in aggregate. 0. Please confirm that FortisBC and its affiliated regulated companies do not intend to lobby the Ministry for any changes to the aggregate limits in the GGRR. If not confirmed, please explain why not? Not confirmed. Projects under the GGRR are just beginning to be advanced so whether there is a need to seek any amendments to the limits cannot be assessed at this time. 0. Please list all FortisBC LNG activities (including activities FortisBC is currently engaged in and intends to engage in), that constitute Prescribed Undertaking (Vehicle Grants/Loans; Safety/Maintenance Grants) and Prescribed Undertaking (Tanker Truck Load-Outs; LNG Fueling Stations) for the Year 0, at which time activities under the Prescribed Undertaking will have reached their maximum level. With respect to such activities, please: (i) include the names of

4 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page all customers (to the extent known today); (ii) itemize expenditures to date or estimated; and (iii) indicate the projected LNG demand. Please provide the response in the following format, filling out the remainder of the tables below, using as many rows as necessary: PRESCRIBED UNDERTAKING Activity Customer Expenditures ($) Vehicle Grant Vedder 0,000 Vehicle Grant Westport 0,000 Vehicle Grant BC Ferries 00,000 Please fill in additional rows to yield Total for Prescribed Undertaking LNG Demand (GJ/yr) TOTAL -,00,000,0, PRESCRIBED UNDERTAKING Activity Customer Expenditures ($) Mt. Hayes Truck Load-Out Facility FortisBC,00,000 Please fill in additional rows to yield Total for Prescribed Undertaking TOTAL - 0,00,000 LNG Demand (GJ/d) 0 This information is beyond the scope of this proceeding and will not be made available to the public unless released by the Minister. As set out in sections () and () of the CEA, a utility must report on the prescribed undertakings to the Minister of Energy, Mines and Natural Gas. The Minister establishes the reporting requirements, both in terms of timing and the information required. The timing and form of reporting requirements is still to be determined. The FEU intend to make expenditures up to the prescribed limits in each of the three GGRR prescribed undertakings. All of the FEU s prescribed undertaking programs or expenditures will comply with the provisions of the GGRR. Application, s.., p.. Application, s.., p.. Application, s.., pp. -. Application, s.., Table -: LNG Demand Forecast 0-0, p.. Application, s. 0., p..

5 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page. Please confirm that any LNG related activities pursued by FortisBC beyond those: (i) identified in Ferus LNG FortisBC..; or (ii) elated to excess capacity of existing assets required for utility service; 0 will be pursued using a Non-Regulated Business. If not confirmed, please explain why not. This question is beyond the scope of this proceeding. If FEI pursues any future LNG activities as a regulated business, FEI will file an application to the Commission and the issue can be resolved at that time. 0. Please list all LNG related activities to date that FortisBC is proceeding with on a non Prescribed Undertaking basis. With respect to such activities, please: (i) include the names of all customers; (ii) itemize expenditures; and (iii) indicate the projected LNG demand. For example, this would include the Vedder Transport Ltd. ("Vedder") fueling station applied for as Project No.. Please refer to the response to BCSEA IR Please explain FortisBC's rationale for treating LNG vehicles as part of Prescribed Undertaking while LNG fueling stations required to service such vehicles may be treated as non Prescribed Undertaking activities. For example, vehicles for Vedder fall within Prescribed Undertaking while the associated Vedder fueling station is being applied for as a non Prescribed Undertaking activity.

6 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0 On July, 0 FEI applied for a Certificate of Public Convenience and Necessity for the construction and operation of the LNG refueling station at Vedder. Order C-- approved the CPCN with rates and rate design approved on an interim basis. The fact that a party has received GGRR vehicle grants does not require that the LNG station to serve that party must also be a GGRR (or Prescribed Undertaking ) station. The prescribed undertakings for vehicle grants and stations are independent of each other. Grant recipients are not required to have an FEI station they can also build their own station or contract with a third party to own and operate their station. In the case where the party wishes to contract with FEI for their station FEI has the option to build the station under the GGRR or not. 0. With respect to LNG activities referred to in Ferus FortisBC IR.., please advise whether, in light of the Inquiry Decision, FortisBC intends to transfer such projects to a Non-Regulated Business. If not, please explain why not. FEI is considering the implications of the AES Inquiry Report for its LNG-related activities but the plans have not been finalized.

7 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0.0 Reference: NATURE OF SERVICE PROVIDED BY RS RATE BASE ASSETS RS SERVICE TO USE ONLY EXCESS CAPACITY Inquiry Decision, pp.,. Exhibit B-, Appendix A: Terasen Gas Inc. May, 00 Application for Rate Schedule Interruptible Liquefied Natural Gas Sales and Dispensing Service, p... In the Inquiry Decision (p. ), the Commission states: LNG liquefaction and storage facilities are maintained as part of the traditional gas distribution utility to provide a source of peaking supply for periods of high demand, and to provide emergency gas supplies to a part of the distribution system when a disruption occurs due to maintenance or an unplanned outage. As this supply source is necessary and integral to the ability of the natural gas distribution utility to serve its core customers, these LNG facilities are included in rate base and form part of the utility's regulated function. 0 Does FortisBC agree with the characterization of its LNG liquefaction and storage facilities being in rate base because they are required to serve FortisBC's core customers ("Core Customers")? If not, please explain why not. Yes, and these facilities have also been used to serve LNG customers for many years. 0. Please confirm that Rate Schedule ("RS ") was designed to allow Terasen Gas Inc. ("Terasen Gas") to gain some revenue for the benefit of Core Customers using rate base assets that may from time to time have some capacity excess to what is required to serve Core Customers. If not confirmed, please explain why not. A better characterization of Rate Schedule is as follows: Rate Schedule was developed to facilitate the use of LNG as a transportation fuel, to advance government s commitment to reduce greenhouse gas ( GHG ) emissions from

8 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page the transportation sector, and to create an opportunity to expand the use of the Tilbury Facility to complement the current use of the facility at that time Please confirm that FortisBC will not incur any capital expenditures for facilities to provide RS service (other than the $. million for the Mt. Hayes truck loadout facilities), but that RS service will be restricted to using excess capacity from existing facilities, similar to interruptible gas transportation service, where, as FortisBC noted in BCUC FortisBC.., " interruptible customers do not drive investments in system capacity." If not confirmed, please explain why not. Not confirmed. FEI will continue its programs of sustaining capital at the Tilbury and Mt. Hayes facilities. In addition FEI will comply with the provisions of the GGRR in terms of its expenditures on truck load out facilities. The GGRR permits expenditures of up to $ million during the undertaking period on one or more truck tanker load out facilities and does not limit truck load-out expenditures to a particular location such as the Mt. Hayes facility. The question mischaracterizes the reference to interruptible gas transportation service in the response to BCUC IR... The interruptible analogy was used in BCUC IR.. to raise a principle that is relevant in the prioritization of long term firm service, short term firm service and spot service for Rate Schedule customers. The BCUC IR.. discussion was not saying that the interruptible concept is relevant to Rate Schedule as a whole. The Rate Schedule Amendment Application however is not a facilities application to increase FEI s liquefaction or LNG storage capacity and does not involve capital expenditures for those purposes. 0. To the extent there are market requirements for LNG service beyond that which can be accommodated by excess utility capacity and which would require incremental capital investment, please confirm that in light of the Inquiry Decision, to the extent that FortisBC or its affiliates wish to serve such markets Exhibit B-, page Application for Approval to Amend Rate Schedule on a Permanent Basis ( the Application ) and FEI (formerly Terasen Gas Inc.) Application for Rate Schedule, filed on May, 00 (the Original Rate Schedule Application ), at page

9 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page they will do so using Non-Regulated Businesses. If not confirmed, please explain why not. This issue is under consideration by FEI.

10 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: PROJECTED MARKET GROWTH Application, Appendix A, Terasen Gas Inc. May, 00 Application for Rate Schedule Interruptible Liquefied Natural Gas Sales and Dispensing Service, p. : During the pilot stage, we propose a cap of one LNG tanker load (,00 GJ) per day to be sold from Tilbury.. While the current RS cap of,00 GJ/d was based on one tanker load, the applied-for increase to,000 GJ/d (or,000 GJ per week) does not appear to be based on tanker loads. Please indicate how the applied-for increase was calculated and why it is apparently no longer tied to tanker loads. The,000 GJ per week revised cap is still based on tanker loads. FEI is using,000 GJ/tanker load for this calculation. The slightly lower level is an approximation that incorporates the fact that it is prudent to have some level of liquid remain in the tanker so that the tankers are kept colder and not thermally stressed on each load. The,00 number also implies a level of precision that is not realistic given different logistics systems that may be in place for different customers. Some customers for example may not be able to accommodate full loads in their storage facilities. For the purposes of the application the slightly different number is inconsequential. The important variable in the model is the amount of LNG that is shipped each week and how that affects the amount that is available for core requirements.

11 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: PROJECTED MARKET GROWTH CORE REQUIREMENTS Exhibit B-, Appendix A, Terasen Gas Inc. May, 00 Application for Rate Schedule Interruptible Liquefied Natural Gas Sales and Dispensing Service, p. : Use of Tilbury for the transportation market would not affect the peak send-out capability but would limit the ability to send out as the tank approaches empty (i.e. if TJ of storage capacity were used for this tariff offering, on the final day of sending out from the tank, there would be TJ less to send out). Exhibit B--, BCUC FortisBC.., p. 0: It should be noted that the maximum daily deliverability of vaporized gas from LNG for the core customers is unrelated to the disbursement of LNG in liquefied form to Rate Schedule customers. Delivery of LNG to the truck loadout does not impact the ability to delivery LNG to the vaporization units; therefore, maximum deliverability rates of vaporized gas for core customers is fully preserved.. Please confirm that while the maximum daily deliverability or send-out of vaporized gas from LNG for the core customers may be unrelated to the disbursement of LNG in liquefied form to Rate Schedule customers, the amount of LNG available for vapourization is affected by such disbursement as storage levels are drawn down. Not confirmed. The extensive scenario analysis that was presented in section of the Application shows that under the revised year round operation of the facilities tank levels never fall to a point where maximum daily deliverability is affected. Amounts available in tank storage for send out in all cases exceed the amounts required for send out by a very wide margin. 0. Please confirm that, as noted by Terasen Gas in the above reference, as available LNG amounts are depleted they can, and will as amounts reach full depletion, impact send out ability (or deliverability).

12 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Please refer to the response to Ferus IR...

13 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: CORE REQUIREMENTS PROJECTED RATE SCHEDULE DEMAND Exhibit B--, BCUC FortisBC..: FortisBC confirms that the demand projections in the Application only include LNG demand related to vehicles that are part of Prescribed Undertaking. Exhibit B--, BCUC FortisBC..: FortisBC notes that it has executed RS agreements with Vedder, PSE, Westport, Encana and ATCO. Exhibit B--, BCUC FortisBC..: Vehicles, customers or projects developed outside of the NGT Incentive Program are not excluded from purchasing LNG under Rate Schedule. Rate Schedule is an open tariff. Inquiry Decision, pp. -.. If RS is an open tariff, why has FortisBC not projected any demand for RS service attributable to non Prescribed Undertaking activities? FEI s forecast demand of. PJ associated with LNG vehicles developed through the GGRR is sufficient to utilize the available LNG capacity of Tilbury and Mt. Hayes by the 0-0 timeframe. Additional demand from vehicles and projects outside of the Prescribed Undertaking activities is less certain, and beyond the current supply capacity of FEI. Therefore it is not necessary to project additional LNG demand under Rate Schedule at this time. Please refer to the responses to BCUC IRs... and... As well, FEI s assessment of the LNG market beyond 0 is still in its early stages of development and will be presented in the event that FEI proceeds with an Application for incremental LNG production assets. Please refer to the response to CEC IR Are the vehicles to be served by RS service for Vedder, PSE, Westport, Encana and ATCO all part of Prescribed Undertaking? If not, please identify which service is not.

14 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page No. Of the Rate Schedule customers listed, only Vedder is potentially part of Prescribed Undertaking. To the best of FEI s knowledge, the following end-uses for each customer are accurate: Vedder 0 LNG tractors; PSE emergency relief (no LNG sales to date); Westport research and development, product demonstrations; Encana rail demonstration and product testing; and 0 ATCO power generation (no LNG sales to date) Therefore the only vehicles served by Rate Schedule are Vedder s 0 tractors. There is no vehicle demand associated with the non-prescribed Undertaking customers listed above If the response to Ferus LNG FortisBC.. is "No", please provide the estimated demand associated with the vehicles that are not part of Prescribed Undertaking. The estimated demand for the customers outside of the Prescribed Undertaking is described below. ) PSE No LNG sales are forecast. PSE has not purchased any LNG to date and would likely only purchase for emergency relief and backup. ) Westport Approximately 0,000 to 0,000 GJ are forecast for 0. In 0, Westport purchased, GJ, but has recently indicated additional spot volumes may be required for product testing. ) Encana In 0 Encana purchased, GJ of LNG. It is FEI s understanding that Encana has commissioned its own LNG facility, so FEI does not forecast any LNG purchases in 0. FEI is awaiting a BCUC decision on Part of the FEI s Application for Rate Treatment of Expenditures under the GGRR. In its Application, FEI submits that 00-0 incentive expenditures are consistent with the provision of the GGRR and a similar financial treatment is appropriate.

15 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0 ) ATCO FEI expects ATCO to purchase approximately,000 GJ in 0, depending upon when their project commences operation.. If the response to Ferus LNG FortisBC.. is "No", please explain why the demand associated with vehicles that are not part of Prescribed Undertaking is not included in FortisBC's demand projections for RS service. As explained in the response to Ferus IR.., there is no demand from vehicles associated with these non-prescribed Undertaking customers. In 0, FEI expects approximately,000 to,000 GJ of LNG may be associated with non- Prescribed Undertaking customers (as explained in Ferus IR..). This volume is highly variable as the majority of these purchases would be on a spot basis. These volumes calculate to load additions equivalent to to 0 LNG tractors per year. The overall impact of this load on the proposed Rate Schedule sales limits is minimal. As well, this load is on a spot basis and is less uncertain. For these reasons FEI has chosen not to include this in its demand projections for Rate Schedule service Does FortisBC anticipate it will sign any further RS agreements associated with vehicles that are not part of Prescribed Undertaking? Yes, FEI expects to sign further Rate Schedule agreements with non-prescribed Undertaking customers. However FEI does not expect to execute any Rate Schedule agreements for Firm Contract Demand until the current proceeding has closed. FEI has no assurances on whether this LNG will be used in vehicles or for power generation and heating activities. FEI cannot disclose the projected demand associated with these projects as this information is commercially confidential.

16 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page. If the response to Ferus LNG FortisBC.. is "Yes", please provide an estimate of the demand associated with such vehicles. Please refer to the response to Ferus IR...

17 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: CORE REQUIREMENTS STORAGE ALLOCATION Exhibit B-, Section.., p. : It is important to note that the proposed storage allocation at either facility will not impact the ability of the facility to provide peaking and emergency backup service The primary reason for the requested allocation of storage capacity is thus to provide confidence to the market that LNG shipments will not be interrupted in the highly unlikely event of a winter send-out scenario that would empty both facilities entirely.. Please reconcile the above two statements. That is, in the event that both facilities are emptied entirely, would not the allocation of storage capacity (allowing the commercial LNG market to "not be interrupted") impact the ability of the facility to provide peaking and emergency backup service in that stored LNG otherwise available for this purpose will not be available due to its dedication to the commercial LNG market? Please refer to the responses to Ferus IRs..,.., and BCUC IRs..,..,..,.. and...

18 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: CORE REQUIREMENTS PRIORITY OF CORE VERSUS COMMERCIAL LNG MARKET Exhibit B-, Section.., p. : Commercial LNG market customers, like FEI's core market customers, also have supply security concerns. Exhibit B-, Section.., p.. Use of FEI's LNG tankers for delivery to Vedder is subject to FEI having priority use of the LNG tankers for scheduled as well as emergency disruptions to its system. Exhibit B--, BCUC FortisBC.., p. : The LNG transportation service to Vedder using the existing tanker is provided on an interruptible basis. Priority use of the tankers is reserved to serve core gas customers if emergency outages occur. Exhibit B-, Appendix A, Terasen Gas Inc. May, 00 Application for Rate Schedule Interruptible Liquefied Natural Gas Sales and Dispensing Service, p. : By utilizing up to TJ of storage at Tilbury for the Rate Schedule, storage capacity could be unavailable to the sales customers for peaking supply. In order to further mitigate the risk to the sales customers, Terasen Gas would monitor the impact on LNG storage and seek to secure incremental gas supply resources to those identified in the Annual Contracting Plan. Exhibit B-, Appendix A, Terasen Gas Inc. May, 00 Application for Rate Schedule Interruptible Liquefied Natural Gas Sales and Dispensing Service, p. : The Rate Schedule has been designed as an interruptible service to provide Terasen Gas with the flexibility to curtail the service in the event that is necessary to avoid negatively impacting core customers.. Please confirm that in allocating storage to the commercial LNG market, FortisBC is providing that market with priority to any such stored LNG, to the extent of the allocation. That is, the stored LNG is "dedicated" to the commercial LNG market to the extent of the allocation. If not confirmed, please explain why not.

19 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Response Please refer to the responses to CEC IRs.. and Please confirm that if LNG for the core market is completely depleted (drawn down) and there remains LNG in storage allocated to the commercial LNG market, the core has no "call" or right to such stored LNG. If not confirmed, please explain why not. Please refer to the responses to CEC IRs.. and Please confirm that if: (i) LNG to serve Core Customers is completely depleted (drawn down); and (ii) there is still unmet Core Customer demand; then Core Customers would not consider any remaining LNG in storage allocated to the commercial LNG market to be "excess" to the Core Customer's needs. Please refer to the responses to CEC IRs..,.. and BCUC IRs.. and Please confirm that providing the commercial LNG market with priority to LNG stored in rate base facilities represents a departure from the approach of Terasen Gas in the initial RS application, where Terasen Gas preserved the priority of Core Customers to LNG services being provided with rate base facilities, specifically stating: "The Rate Schedule has been designed as an interruptible service to provide Terasen Gas with the flexibility to curtail the service in the event that is necessary to avoid negatively impacting core customers." If not confirmed, please explain why not.

20 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0 The interruptible nature of the original Rate Schedule program was based on the fact that it was a pilot program. The current Application seeks to make Rate Schedule permanent and is not proposed to be interruptible service any longer. The applied-for Rate Schedule will generate material throughput benefits for FEI s ratepayers. The conditions leading to a need to interrupt or curtail Rate Schedule quoted in the question have been shown through scenario modeling to be very unlikely to occur. Please refer to section of the Application and the responses to CEC IRs.. and... The approach taken in this Application with respect to storage allocations is consistent with a change in Rate Schedule service from Interruptible to Firm.. Please confirm that FortisBC intends to preserve the Core Customers' priority to use of the two tankers currently owned by FortisBC and in rate base. Confirmed. 0

21 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: CORE REQUIREMENTS REVELSTOKE Exhibit B--, BCUC FortisBC.., p. : FEI does not believe that the capacity allocated to Rate Schedule customers will need to be reduced in future years due to increases in forecasted core loads. Exhibit B--, BCUC FortisBC.0., p.. Exhibit B--, BCUC FortisBC.0./., pp. -: FEI has done an internal pre-feasibility study on the use of LNG from Tilbury for the purpose of a possible conversion from the use of propane to natural gas through the use of a satellite LNG station at Revelstoke The results of the analysis indicated that there could be a benefit to customers if a conversion is made to natural gas. Exhibit B-, Section.., Table -: "Design" Scenario LNG Capacity for Commercial LNG Market. Is the community of Revelstoke considered to be a Core Customer? If not, what type of customer is Revelstoke? The customers in Revelstoke are core customers comprised of Residential, Small Commercial, and Large Commercial who receive firm sales service. 0. Are the facilities required to serve Revelstoke included in FortisBC's regulated rate base? Yes. Revelstoke is a propane distribution system and does not receive the peaking and backup supply capacity of the Tilbury or Mt. Hayes facilities. There is potential to convert the existing propane system to natural gas by trucking LNG to Revelstoke and vaporizing it into the distribution system. In the event that FEI proceeded with the conversion of Revelstoke from propane to LNG, it would need to evaluate the optimal method of supplying LNG to Revelstoke. At present, propane supplied to Revelstoke is

22 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page primarily sourced from Alberta, and local propane storage is used to manage peak requirements. In the event a conversion is made to LNG, it is likely that a similar operational approach would be established. Local Revelstoke LNG storage would be utilized to manage customer peak requirements and transportation interruptions as opposed to Tilbury providing this service. The investment in Revelstoke LNG storage would be part of the CPCN application and would represent an incremental addition to FEI rate base. LNG supply could potentially be provided by one of the proposed Alberta facilities or from Tilbury. 0. Are the facilities required to serve Revelstoke and the facilities required to serve Core Customers considered to form part of the same rate base for purposes of calculating FortisBC's revenue requirement? Yes. Please also refer to the response to Ferus IR.. for further comments on the Revelstoke propane system. 0. In BCUC FortisBC.0., a satellite station for Revelstoke is indicated to require 00,000 GJ. Please confirm that this is 00,000 GJ/yr or about 0 GJ/d. If not confirmed, please provide the estimated quantity of LNG, on a GJ/d basis, required for such a satellite station. The requirement for the satellite station is about 00,000 GJ/yr, or about 0 GJ/d.

23 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0.0 Reference: CORE REQUIREMENTS LNG TANKERS Inquiry Decision (pp. -): The Commission strongly recommends that any LNG activities outside the Prescribed Undertaking be undertaken by a separate Non-Regulated Business. Exhibit B-, Section..., p. : Based on forecast volumes from Table -, FEI assumes that a new tanker will be required and fully utilized in 0 Exhibit B--, BCUC FortisBC..: FortisBC confirms that the new tanker will be dedicated to the sole use of LNG NGT customers. Exhibit B--, BCUC FortisBC..: At this time, FEI does not anticipate that the core gas market will require additional LNG tankers.. Please confirm that LNG tankers are not Prescribed Undertakings. Confirmed. 0. Please confirm that Core Customers do not require LNG tankers beyond the two tankers currently owned by FortisBC and in rate base. Confirmed. 0. In light of the Inquiry Decision, and its strong recommendation that LNG activities outside Prescribed Undertakings be undertaken by a separate Non-Regulated Business, please confirm that FortisBC will cancel its plans to purchase a new LNG tanker for dedicated use to LNG NGT customers and, to the extent that FortisBC still wishes to supply that service, will do so through a Non-Regulated Business? If not confirmed, please explain why not.

24 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page FEI has considered the recommendation in the AES Inquiry Report and notes that the AES Inquiry Report recognizes that the FEU may still wish to undertake LNG activities within the utility (page ). For the reasons described below, FEI s considered view is that it is most appropriate to continue to provide transportation services within the regulated utility. First, the transportation of LNG for wholesale distribution falls within the definition of public utility in the Utilities Commission Act and is an activity that is regulated regardless of the party undertaking it. Second, FEI has two tankers for its regulated natural gas service with excess capacity. It is efficient and beneficial to ratepayers for FEI to use this excess capacity for transportation service under Rate Schedule. However, these two tankers alone do not have sufficient extra capacity to support a transportation service available to all Rate Schedule customers. Therefore, if FEI is required to offer the transportation service under a non-regulated entity and establish a separate non-regulated fleet and service, the two tankers currently used for core customers would not be able to be used. This would result in foregone revenues to core customers. Third, the proposed transportation service is required to ensure that LNG can be transported to FEI s incentive customers under the GGRR. There are no other tanker fleets based in BC to provide this service. LNG tankers are in short supply due to growth in the LNG market and new tankers have a to month lead time. In addition, providing reliable LNG transport service requires more than just relocating tankers to this market. A reliable base of operations must also be established, including proper training of drivers to standards required for LNG transport, establishment of maintenance capabilities and establishment of emergency response capabilities. Without a reliable, safe and available transportation service, FEI s incentive customers could not be assured that they will receive the LNG they require to fuel the vehicles that they purchased with incentives under the GGRR. As such, the tanker service is a required element of the prescribed undertaking activity. FEI submits that it is therefore more appropriate to group additional tankers and the service under the prescribed undertaking activity than a separate non-regulated activity. To sum up the above two points, the proposed transportation service is supplementary and complementary to FEI s existing regulated assets and FEI s prescribed undertaking activity. As such, the transportation service does not belong in a non-regulated business, but as part and parcel of the FEI s other regulated activities. Fourth, requiring FEI to set up a separate non-regulated entity for the purpose of the transportation service would be inefficient and a waste of resources. The transportation service is a small part of the Rate Schedule service, with small amounts of capital. FEI contracts with a third party, Trimarc, to transport the tankers, so there is a small operational component as well. It simply is not a cost-effective option to set up a separate non-regulated business for this

25 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page service. Use of FEI tankers in Rate Schedule service, on the other hand, is a prudent way to increase the utilization of core rate base assets to the benefit of all customers. In addition, FEI believes that the tanker service should be regulated for the following reasons: 0 Use of the tankers is optional and open to all. All customers have access to use of the tankers for transport of Rate Schedule LNG. For example if Ferus LNG wishes to purchase Rate Schedule from FEI for delivery to their customers in BC, they could arrange for use of the FEI tankers at this fee. The transportation service is completely optional, so Rate Schedule customers are free to take service from another service provider if available. This Application has requested approval of a daily rental rate of $/day which represents a large increase from the previous rate levels. The proposed rate has been increased substantially to the point where there can be no serious arguments that the cost of the service is cross-subsidized. Also see the response to BCUC IR... This goes to eliminate the argument that FEI s provision of the service undermines the ability of others to provide such service. The transport of the tankers is already done using resources outside the regulated utility using a market based charge that FEI simply adds an administration fee to. (FEI presently contracts with Trimac, a major experienced transportation company, to provide trained drivers and tractors to pull the FEI trailers). 0 0 As such, the transportation service would not disrupt any competitive market that may develop in BC for tanker service. In the meantime, however, it provides assurance that customers taking incentives will in fact have a reliable transportation service available. If the Commission rejects continued access to FEI s LNG tankers at the proposed rate, FEI would still need to ensure reasonable access to transportation for its Rate Schedule customers. This may mean establishing a separate fleet of LNG tankers under a non-regulated entity and returning to the previous situation where FEI s two tankers sit idle waiting for sporadic use for core service. It would also mean higher costs to core customers as the core would not continue to receive revenue from the Rate Schedule deliveries. Such an outcome would clearly be detrimental to core customers and Rate Schedule customers and may delay growth in the Rate Schedule market as a result of delays in securing replacement tankers.

26 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: STATE OF LNG SUPPLY MARKET AND LNG FUELING MARKET Inquiry Decision, p. 0: Based on the evidence in the Inquiry, the Commission Panel considers that LNG production, transportation, and retail distribution are, or are anticipated to become, competitive markets. Exhibit B--, BCUC FortisBC..: FEI agrees that there is a high likelihood that additional LNG supply will be added in Western Canada prior to 0. Permitting and constructing a new LNG facility is a complex undertaking. FEI's experience with the Mt. Hayes facility indicates that it can take two to three years to complete a facility from the time of the final investment decision. It is possible that new facilities may be available as early as late 0. Exhibit B-, Section., p. : The next closest LNG supply source for the commercial market is in Wyoming. Facilities are presently being constructed in Alberta but are approximately,000 kilometres from the Tilbury Facility location. Thus, particularly for current and potential BC customers, the Alberta facilities would not present a convenient or operationally practical solution if the LNG service at Tilbury is interrupted. Exhibit B--, BCUC FortisBC..-: FortisBC discusses Northwest Natural supply for Interfor's Adams Lake operations from January 0, 00 until September, 00. Exhibit B--, BCUC FortisBC..: Other parties interested in purchasing LNG for markets in Alberta have approached FEI with expressions of interest to purchase LNG for their interim needs until their plants can be built. 0. Is FortisBC aware of the December, 0 announcement by Ferus LNG and Encana Corporation of their joint venture plans to build: (i) a 0,000 litre per day (approximately,00 GJ/d) LNG production facility near Grande Prairie, Alberta, which facility is expected to be operational by the end of 0; and (ii) specialized mobile LNG storage and dispensing equipment?

27 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0 This response addresses the Ferus IR.0 series. FEI is aware of Ferus recent announcement and that of Encana. (We note that the Encana facility has experienced a variety of problems and delays since originally announced and that product was purchased from FEI to provided service during this period.) The announcements have no bearing on the present Application. FEI has acknowledged the need for growth in LNG production to serve the market and expects that several additional plants will be required as the market continues to grow. FEI, in its 00 LTRP has projected growth in the LNG market for transportation applications. At % market share of the BC Motor Fuels Market, 0 PJ of supply will be required. Additional capacity beyond this amount will likely be required for other market applications. With respect to Ferus IR.0., no parties have announced plans for BC based facilities designed to service the BC market. FEI believes such facilities are required to properly service the BC based market on a permanent basis. With respect to Ferus IR.0., Adam s Lake LNG demand was serviced from the Northwest Natural plant for a temporary period when the Tilbury facility was undergoing tank repairs. The Ferus Grand Prairie facility would be, km from Vancouver. The Encana Cavalier facility is about,00 km from Vancouver Is FortisBC aware of Encana Corporation's January, 0 announcement of the commissioning of its Cavalier LNG facility near Strathmore, Alberta? Please refer to the response to Ferus IR Is FortisBC aware of any other relevant announcements or developments in the fast moving LNG sector?

28 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Please refer to the response to Ferus IR Please confirm that Northwest Natural, with plants located some 0 km and,00 km from Interfor's Adams Lake operations, successfully supplied such operations for a period of seven months while the FortisBC Tilbury plant was undergoing repairs. Please refer to the response to Ferus IR With respect to the Alberta parties referenced above who have approached FortisBC with expressions of interest to purchase LNG, how far are their proposed plants from FortisBC's plants (i.e. Tilbury and Mt. Hayes)? Please refer to the response to Ferus IR.0..

29 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0.0 Reference: STATE OF LNG TANKER MARKET Exhibit B-, Section.., p. : Transport of LNG to the end user by LNG tanker truck is necessary in order to serve this market because there is no piped delivery infrastructure for LNG, and at present there are no common carriers with LNG tankers in the BC marketplace.. What does FortisBC mean when it refers to "common carriers?" Would this include private LNG tanker operators, such as Ferus LNG and Clean Energy? If not, please explain why not. Common carriers refer to a public service provider typically transporting people or goods. In this context, FEI did not intend to draw any difference between public and private carriers. Therefore, the paragraph in section.. of the Application also includes companies such as Ferus LNG and Clean Energy In reaching the conclusion that at present there are no common carriers with LNG tankers in the BC marketplace, did FortisBC contact Ferus LNG? If so, please describe all such contacts. If not, please explain why not after FortisBC had the benefit of reviewing Ferus LNG's submissions in the proceeding dealing with Project (FortisBC Application for Approval of a Temporary LNG Services Agreement and Daily Charges for the Use of an LNG Tanker and Mobile LNG Refueling Station), where Ferus LNG wondered why FortisBC did not canvass the market, even to the extent of a simple phone call, to confirm FortisBC's assumption that there were no other parties capable of providing tanker services in BC. No, FEI did not contact Ferus LNG regarding their current tanker offerings in the BC marketplace for the reasons described by FEI in the proceeding dealing with Project below. During the proceeding, Ferus asked FEI the following question: Prior to concluding that Trimac is the only carrier in BC FortisBC knows that currently has LNG transportation experience, with existing trained drivers on staff, did FortisBC Ferus IR..

30 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page contact Ferus LNG to determine whether Ferus LNG could provide LNG tanker services? 0 0 FEI provided the following response in its July, 0 filing to the BCUC: FEI has two existing LNG tankers that have capacity to take on additional deliveries, and has an existing, relationship with Trimac to provide safe and reliable transportation services, dating back for over seven years. FEI did not contact Ferus as FEI does not regard Ferus as a company that has demonstrated its capability to provide LNG transport services. FEI notes that Ferus does not have LNG tankers, has only recently established a business unit to try to develop LNG business and that its closest base of operations to FEI s Tilbury plant is Dawson Creek. FEI notes the following quote from the FERUS LNG website which demonstrates lack of experience with respect to LNG operations. In fact, in March 0, we took the first step and launched our first LNG tractor, and will gradually replace our fleet across North America. It would have been imprudent for FEI to drop its existing proven relationship to test out a potential service provider. This is especially true given the emerging nature of the market where it is critical to provide reliable service to Rate Schedule customers. FEI believes that a party who uses diesel fuel will not likely change fuels if there is service failure for delivery. The market for diesel is well proven and a delivery failure would be seen to be just an isolated occurrence. For an emerging market like LNG for transportation, the situation is quite different. The LNG customer is taking a step out of ordinary practice to move to a new fuel. A delivery problem for the LNG customer may likely cause that customer to question whether the supply chain for the new fuel was reliable enough to take the risk of moving to a new fuel. FEI also notes that the service to Vedder began in 0 before Ferus took its first step towards participating in the LNG market noted in the quote. It is also worth noting that the LNG tractor referenced in the quote, as FEI understands it, is a tractor that uses LNG for fuel rather than a tanker that delivers LNG to customers. 0 Ferus and other parties may indeed be capable of providing this service in the BC marketplace however FEI has confirmed that no other BC-based LNG tankers are presently deployed and/or operational in the BC marketplace.

31 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0 0. In reaching the conclusion that at present there are no common carriers with LNG tankers in the BC marketplace, did FortisBC contact Clean Energy, which has previously employed tankers in BC and would seem capable of redeploying tankers to BC in the appropriate circumstances? If so, please describe all such contacts. If not, please explain why not. FEI has held ongoing discussions with Clean Energy regarding a variety of LNG activities prior to reaching the conclusion on page of the Application. FEI confirms that Clean Energy does not presently own and/or operate a BC-based LNG tanker in the BC marketplace. 0. In reaching the conclusion that at present there are no common carriers with LNG tankers in the BC marketplace, did FortisBC contact any other potential operators? If so, please describe all such contacts. If not, please explain why not. Yes, FEI has been in contact with two other carriers regarding LNG tanker service in the BC marketplace prior to reaching the conclusion on page of the Application, and in recent months. FEI has held discussions regarding hauling service with Trimac Transportation prior to reaching the conclusion on page of the Application. These discussions are ongoing. On February, 0 FEI received a quotation from Trimac for hauling service including the use of an LNG tanker. However Trimac does not presently own an LNG tanker in BC. Please see the response to BCUC IR.. for additional details. FEI has also held ongoing discussions with Liquiline regarding various cryogenic services. FEI has confirmed Liquiline does not presently own an LNG tanker in BC. 0

32 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: NATURE OF RS SERVICE CONTRACT DEMAND Exhibit B-, Section., p. : The applied-for total quantity of LNG available for sale is capped at,000 GJ/week (,000 GJ/mth). Exhibit B-, Appendix E, Proforma Rate Schedule Tariff Effective January, 0, Section (c): The definition of "Contract Demand" refers to amounts allocated equally over Weeks. Exhibit B-, Appendix E, Proforma Rate Schedule Tariff Effective January, 0, Section.: Stipulates that the Customer " must purchase the Contract Demand allocated equally over the Weeks of the year." Exhibit B-, Appendix E, Proforma Rate Schedule Tariff Effective January, 0, Section.: This section provides that purchases in excess of the allocated weekly Contract Demand are subject to availability but also provides that the rate payable for such excess purchases (Spot Load Price) is based on purchases in excess of the yearly Contract Demand apportioned on a monthly basis. Exhibit B-, Appendix E, Proforma Rate Schedule Tariff Effective January, 0, Liquefied Natural Gas Sales and Dispensing Agreement ("LNGDSA"): "Firm Contract Demand" is shown in both "Gigajoules per Year" and "Gigajoules allocated Monthly". Ferus LNG wishes to gain a better understanding of the proposed Firm service conditions of service and contract levels. For the following requests, please assume for Shipper A: RS Firm Contract Demand:,000 GJ per Year, GJ allocated Monthly,000 GJ per Week equivalent. Assume Shipper A purchases,00 GJ in a Week,,000 GJ for that Month and 0,000 GJ for that Year. (a) Is Shipper A subject to payment of the Spot Load Price for the 00 GJ purchased above its weekly Contract Demand for the Week? If not, please explain why not. Shipper A could only take the additional 00 GJ subject to spot availability and, if there was availability, would pay the spot price.

33 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page (b) Is the 00 GJ purchased above the Shipper's weekly Contract Demand subject to availability? If not, please explain why not. Please refer to the response to Ferus IR..(a). 0. While Section. of the LNGDSA stipulates that a Customer "must" purchase the Contract Demand, please confirm that there should be no purchase obligation but only a payment obligation as per Section. that is, as long as a Customer makes its take-or-pay payments, it is not in breach of the LNGDSA by virtue of not having purchased any LNG. If not confirmed, please explain why not. Confirmed If the core purchase obligation is established on a weekly basis as per Section., please explain why the Firm Contract Demand in the LNGDSA is not expressed as a weekly demand, but rather in yearly and monthly terms. The Firm Contract Demand is expressed on a monthly basis because billing under Rate Sschedule is done on a monthly basis. The take or pay obligation is a financial obligation that ties into the monthly billing calculations. Shipments and availably capacity rules are monitored on a weekly basis.

34 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page. Please confirm that FortisBC will not sign up Firm Contract Demand contracts (Long-Term and Short-Term collectively) for RS service that in aggregate exceed,,000 GJ/yr or,000 GJ/mth. If not confirmed, please explain why not. Confirmed. 0

35 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: NATURE OF RS SERVICE INTERRUPTIBLE VERSUS FIRM Exhibit B-, Section., p. : there will always be sufficient capacity and operational flexibility within the LNG storage facilities to ensure that the needs of the core market are met in the winter months during extreme weather conditions and during system emergencies. Exhibit B-, Appendix A, Terasen Gas Inc. May, 00 Application for Rate Schedule Interruptible Liquefied Natural Gas Sales and Dispensing Service, pp. and. Exhibit B--, BCUC FortisBC..-: FortisBC discusses its current RS contracts. Exhibit B--, BCUC FortisBC.., p. 0: It is important to clarify that the use of the Tilbury and Mt. Hayes facilities to support Rate Schedule customers, as proposed in this Application, will not impact the expected availability or use of these facilities as part of FEI and FEVI's gas supply portfolios to meet peaking requirements. Most importantly, as dispensing LNG in liquid form is distinct from the vapourization process, the full deliverability (or sendout capacity) remains available to meet on-system requirements on a design day. Exhibit B--, BCUC FortisBC.., p. : The LNG transportation service to Vedder using the existing tanker is provided on an interruptible service basis. Priority use of the tankers is reserved to serve core gas customers if emergency outages occur. Exhibit B-, Section., p. : Interruptible service is problematic for Rate Schedule customers as it creates a risk to their business if LNG supply is not available. For example, Vedder requires reliable deliveries of LNG to keep its fleet on the road. If LNG deliveries were to be interrupted, Vedder's ability to pick up raw milk from local farmers would be interrupted. This would be unacceptable to Vedder's customers because the milk is perishable. The requirement to provide an uninterruptible service is necessary to support FEI customers' needs.

36 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0 Exhibit B-0, Table : LNG Sales under Rate Schedule during 0.. Please confirm that under the existing RS, parties can contract for "Firm Contract Demand" although such "Firm" demand is still subject to possible interruption if required to serve Core Customer demands? If not confirmed, please explain why not. FEI believes that the question relates to the Interruptible Liquefies Natural Gas Sales and Dispensing Service Agreement which is a two page agreement that is executed by current Rate Schedule customers who wish to take service under Rate Schedule. This document has a line to be filled out by customers that is labeled Firm Contract Demand. This label is not consistent with the terms and conditions of the tariff nor is it consistent with the title of the tariff and title of the Service Agreement which clearly indicates that service is Interruptible. 0. Has FortisBC ever interrupted a customer under RS "Firm Contract Demand" service? If so, please describe each such instance, describing the amount and duration of each interruption. FEI has not interrupted service under Rate Schedule since it was introduced in Given the evidence of FortisBC that RS service will not impact its ability to serve Core Customer demand, please confirm that FortisBC would not expect any interruption to RS service even without an allocation of capacity to RS customers or without a change in the designation of the type of service from interruptible to firm? If not confirmed, please explain why not? Confirmed, however, the designation of the tariff as Interruptible creates a high degree of customer concern. Hence it needs to be changed to reflect the real situation as described in the question.

37 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page As explained in section of the Application (page ) interruptible service does not meet customer needs. In addition, if this situation is not rectified, it would be possible for competitors of FEI to gain an advantage by emphasizing the Interruptible nature of the FEI offering while offering firm service from their operations as they are developed. This would put FEI at a serious competitive disadvantage, which may limit sales and reduce benefits to the detriment of nonbypass customers. 0. Please confirm that at the time of originally applying for RS, dispensing LNG in liquid form was distinct from the vapourization process and as such, the full deliverability (or sendout capacity) remained available to meet on-system requirements on a design day. Confirmed. 0. Please confirm that in originally applying for RS at a lower cap than that being applied-for in the current Application, Terasen Gas advised that it " does not believe that these volumes would have a significant impact on core customers and the availability of LNG on peak days." Confirmed. 0. Please confirm that despite: (i) the fact that dispensing LNG in liquid form was distinct from the vapourization process and as such, the full deliverability (or sendout capacity remained available to meet on-system requirements on a design day;

38 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page (ii) the lower cap; and (iii) Terasen Gas' belief that the original RS service would not significantly impact core customers; Terasen Gas nevertheless still designed RS as an interruptible service to provide itself with the flexibility to curtail the service in the event that it was necessary to avoid negatively impacting Core Customers. 0 Confirmed. The Pilot Tariff was designed using extremely conservative assumptions as an initial step into serving this market. FEI has subsequently conducted more analysis and scenario simulations as part of this Application that shows that the Tilbury and Mt. Hayes facilities can be more fully utilized to the benefit of customers Please confirm that despite the interruptible nature of the existing RS service, and the interruptible nature of the current tanker transportation service, Vedder was able to and did commit to LNG for its fleet on the basis of the existing RS sales and tanker service. Confirmed. FEI was able to land a single customer who was prepared to overlook the Interruptible title on the tariff after consideration of the overall supply system capabilities and the low probability that supply would be interrupted. Other potential customers, notably BC Ferries have indicated that Interruptible service is not acceptable to them. Rather than carry on a situation where the expectation is for no interruptions under a tariff that is labeled Interuptible, FEI believes it is more appropriate to adjust the description of service to better reflect the utilities intentions and the customer s requirements.

39 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page. Notwithstanding FortisBC's belief that RS service will not impact its ability to serve Core Customer demand, if FortisBC is faced with an LNG shortage such that it did not have enough LNG to satisfy RS demand and the demand from its Core Customers, under the proposed amended RS would it be FortisBC's intention to interrupt its Core Customers while maintaining service to RS customers to the extent LNG allocated to RS service was still available? Please refer to the response to CEC IR Under the existing RS, do the customers contracting for Spot Load Service do so by contracting with a 0 Firm Contract Demand and relying on Section. of RS. If not, please explain how such customers contract for Spot Load Service under RS. Confirmed. 0

40 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: NATURE OF RS SERVICE TERM RE NGT VEHICLE LNG SUPPLY Exhibit B-, Section., p. : Vehicles that receive incentive funding from FEI are required to purchase LNG from FEI. Exhibit B--, BCUC FortisBC.., p. : FEI has designed its NGT Incentive Program with a requirement to link LNG supply to FEU LNG facilities In the short term, LNG supply for vehicle purchases under the Incentive Program will be provided through FEU facilities. Exhibit B--, BCUC FortisBC.., p. : FEI expects that NGT fleets will execute Long Term Firm Service agreements under Rate Schedule to match the expected life of their LNG vehicles. Exhibit B--, BCUC FortisBC..: The demand shown in Table. reflects the demand that was projected from the vehicles to be purchased under the NGT Incentive Program. This peaks at. PJ in 0 and would remain at that level for the life of the vehicles.. Please confirm that FortisBC's projected RS demand in Table. assumes that the owners of vehicles purchased under the NGT Incentive Program will purchase LNG for such vehicles exclusively from FortisBC over the full lives of such vehicles. If not confirmed, please explain why not. Confirmed. 0. Please define "short term" in the above reference (BCUC FortisBC..). Please be specific, i.e. x months or years. In this context, short term refers to the GGRR Prescribed Undertaking period which extends until 0. Beyond the GGRR period (and over the long term ), FEI expects additional LNG

41 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0 facilities may develop and fleets may choose to fuel from suppliers other than FEI. This would be considered a successful outcome of the GGRR in the form of increased demand for NGT Please confirm that the method by which FortisBC intends to "link LNG supply to FEU LNG facilities" for NGT Incentive Program fleets is to have such fleet owners execute FortisBC's Natural Gas Vehicle Contribution Agreement ("NGVCA")? If not confirmed, please explain why not. Confirmed.. Please provide a current copy (draft or otherwise) of the NGVCA. The current copy of the draft contribution agreement is available on the FortisBC website at the following URL: butionagreement.pdf 0. Has the NGVCA been approved by the Commission? The subject matter of this question falls outside of the scope of this proceeding. FEI is providing the following response in an effort to be helpful. No, the NGVCA has not been approved by the Commission. The Greenhouse Gas Reduction Regulation (GGRR) and BCUC Order No. G-- for rate treatment of expenditures under GGRR allows FEI to manage and administer the program. The NGCVA is an agreement between FEI and the applicant that outlines the terms and conditions for accepting the vehicle grant and designed to meet the interest of ratepayers paying for the incentives and does not

42 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page need any Commission review and approval as such. This is no different than the agreements that are signed between the participating customers and beneficiaries of energy efficiency and conversation incentives from FEU without any approval from BCUC. 0. If the response to Ferus LNG FortisBC... is "No", does FortisBC intend to seek Commission approval for the NGVCA? If not, please explain why not. Please refer to the response to Ferus IR Please provide copies of any NGVCAs executed by customers to date. To date FEI has executed NGVCA s with only CNG customers and will start the process with LNG customers after receiving an approval in this proceeding satisfactory to FEI and potential customers of Rate Schedule. FEI is not able to share any of the agreements as they are confidential in nature. FEI will publicly disclose the award details of the CNG and LNG applicants upon successful execution of the contribution agreements. 0. Please indicate the term of any and all executed NGVCAs, whether based on Service Life Term or otherwise. FEI is unable to provide any term as NGVCA s as the agreements are confidential in nature. Further, as there is no certainty regarding LNG supply, no LNG NGVCA s have been executed to date.

43 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0. Please confirm that under the draft version of the NGVCA (specifically, Sections.,.(a)(ii) and.), as posted on FortisBC's website, customers are required to exclusively procure their LNG from FortisBC for the "Service Life Term" of their NGT vehicles. If not confirmed, please explain. Not Confirmed. The NGCVA sets out the terms and conditions one of which is to exclusively procure their LNG supply from FEU for accepting the grant towards the purchase price of a qualifying natural gas vehicle. Although FEI includes an LNG supply provision in both its NGVCA and its FSIOA, it is the Rate Schedule agreement that dictates the term and contract demand of their LNG supply. The specific term is the subject of commercial negotiations with each customer and depends upon their specific situation. In some cases the term is set based on the customer s expected vehicle service life. In other cases it based upon another contractual commitment (i.e. BFI s hauling contract with City of Surrey). Please refer to the response to Ferus IR.. for additional discussion Is the "Service Life Term" under the draft NGVCA intended to reflect, as the wording implies, the full service life of a vehicle? While this is out of scope of this proceeding, yes, full service life of a vehicle commences upon the completion of Vehicle registration and insurance in the name of the Recipient.. If the response to Ferus LNG FortisBC..0 is "Yes", why does FortisBC propose to require fleet owners to procure their LNG supply exclusively from FortisBC for the entire service life of their vehicles? FEI needs to ensure that the incentive costs borne by the non-bypass customers are fully recovered by way of generating revenue from LNG sales from the participating applicants. The service life term of a vehicle has been used to trigger a repayment to FEI in the event the applicant stops purchasing natural gas from the FEI system including other conditions as set out in section. of the agreement. As stated in response to Ferus IR.., the NGVCA only sets

44 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page out the terms and conditions for accepting the grant but the actual term of the contract demand and LNG supply is governed by the Rate Schedule agreement. The specific term is the subject of commercial negotiations with each customer and depends upon their specific situation and is independent of the service life of the vehicles. Please also refer to the responses to Ferus IRs.. and Is FortisBC's expectation that fleets will execute agreements with terms to match the expected life of their LNG vehicles (BCUC FortisBC..) based on the fact that such customers will already be obligated to exclusively purchase LNG from FortisBC over the service life of their vehicles under NGVCAs (in other words, the RS agreement merely serves as the mechanism for complying with the core obligation, which obligation is set forth in the NGVCA)? If not, please explain why not. Applicants are not obligated to take advantage of the NGT incentive program but if they choose to do so are required to sign the NGVCA and accept all the terms and conditions as set out in the agreement including the service life of the vehicle. Additionally applicants have to sign the take-or-pay commitment under Rate Schedule based on the customer s desired level of demand within the limits of the tariff. The two agreements are separate components and serve as a mechanism to ensure that FEI is the exclusive provider of LNG fuel supply for customers who seek incentives, and as such the terms on expected vehicle life are not required to match on the two agreements. Additionally not every party that signs a NGVCA will also sign a fueling station agreement (FSIOA). Customers have no obligation to select FEI as their fueling station service provider. Thus executing two stand-alone agreements is necessary and are not tied to each other. Also refer to the responses to Ferus IRs..,.. and BCUC IR Has FortisBC considered tying the required term of the NGVCA to the revenue projected to be obtained from an NGV fleet over the life of the agreement (for example, calculated so as to ensure a revenue return that would cover the amount of the incentives provided to the fleet owner)? If not, would FortisBC

45 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page consider this be a reasonable method of setting the term for such an agreement? If not, please explain why not. 0 The subject matter of this question falls outside of the scope of this proceeding; however FEI is providing the following response in an effort to be helpful. The Commission approved rate treatment of GGRR vehicle incentives is delivery rate recovery from all non-bypass natural gas customers (Order No. G--). FEI is not required to recover vehicle expenditures from NGT customers as it is not an interest free loan and hence there is no requirement for FEI to tie the term of the vehicle to the projected revenue. The term of the vehicle and the projected revenue are two different components and executed through two different agreements and as such there is no requirement to match. Please also refer to the responses to Ferus IR.. and BCUC IR Utilizing FortisBC's average per truck estimate of LNG consumption and FortisBC's proposed rates, please indicate what term would result in a revenue return equal to a vehicle grant in: (i) 0; and (ii) 0, recognizing that FortisBC intends to decrease the amount of per vehicle grants over the term of the program? As stated in response to Ferus IR.., FEI would not consider tying the term of the vehicle to the projected revenue and as such is unable to provide this analysis. 0. Has FortisBC considered revising the term requirements of the NGVCA in light of the Inquiry Decision? No. Applicants that choose to accept the grant for buying qualified Natural Gas Vehicles are required to sign the NGVCA and accept all the terms and conditions as set out in the

46 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page agreement. The AES inquiry Decision has no impact on the NGVCA and as such no changes are necessary.

47 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0.0 Reference: NATURE OF RS SERVICE TERM RE FUELING STATION LNG SUPPLY Exhibit B-, Section., Table -: LNG Demand Forecast 0-0, p.. FortisBC Vedder LNG Fueling Station CPCN Application (Project No. ) Commission Order C--.. Please confirm that FortisBC's projected RS demand in Table. includes LNG purchased and to be purchased by Vedder for its fleet of NGT vehicles. If not confirmed, please explain why not. Confirmed. However FEI has recently amended the expected demand associated with Vedder from 0,000 GJ to 0,000 GJ per year. Please refer to Exhibit B-0 for additional discussion. 0. Please confirm that in conjunction with the LNG Fueling Station FortisBC is building for Vedder (Project No. ), FortisBC requires Vedder to purchase LNG exclusively from FortisBC for use at that LNG Fueling Station, which commitment is detailed in the LNG Fueling Station Installation and Operation Agreement ("FSIOA") dated March, 0 between the parties. If not confirmed, please explain why not. Confirmed. This requirement is explained in paragraph. of the FSIOA. 0. Please provide a copy of the FSIOA. Please refer to Attachment. for a copy of the FSIOA.

48 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0. While Ferus LNG understands that in Order C-- the Commission approved, on an interim basis, rates based on the FSIOA, has the FSIOA itself or any of its terms and conditions been approved by the Commission? This response also addresses the response to Ferus IR... No, the FSIOA with Vedder has not yet been approved by the Commission. FEI expects to file for permanent rates once the following items are complete: BCUC issues on decision on the overhead and marketing charge applicable to CNG/LNG fueling stations (currently under review in BFI Reconsideration); and Final construction costs for Vedder s permanent station are determined. Both of these items impact Vedder s fueling charge. FEI expects once both are completed it will amend the FSIOA with Vedder and file for permanent rate approval. 0. If the response to Ferus LNG FortisBC... is "No", does FortisBC intend to seek Commission approval for the FSIOA? If not, please explain why not. Please refer to the response to Ferus IR Please confirm that LNG required to be purchased by Vedder under the FSIOA is and will be purchased under RS? If not confirmed, please explain why not. Confirmed. Vedder has also contracted for LNG supply under Rate Schedule.

49 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0 0. How was the required term of the FSIOA determined? The term of the FSIOA is negotiated with each CNG/LNG customer on case-by-case basis and is determined by a few factors. First, FEI has determined that major CNG and LNG equipment has a useful life of 0 years. The Commission has accepted this depreciation period in BCUC Order No. G--. Therefore twenty years is the maximum term FEI expects to contract for with typical CNG and LNG trucking companies. Whether a fleet selects a term of, 0, and 0 years (or anywhere in between) is the subject of commercial negations with the customer. In general, FEI seeks to match the initial term of the contract to the expected useful life of the customers natural gas vehicles, however varying terms may exist depending upon the customer s preferences. Under FEI s CNG fueling station agreement with BFI, both parties agreed upon a term of seven years (with a three year renewal) which reflects BFI s contractual commitment with the City of Surrey. In the case Vedder, the customer expects it will be operating LNG vehicles for at least 0 years. This assumes Vedder will replace some of their initial LNG tractors after their useful life. Based on GT&Cs B and their FSIOA Vedder is also responsible for the undepreciated station capital after the expiry of the initial term. 0. Did FortisBC consider tying the required term of the FSIOA to the revenue projected to be obtained from use of the Fueling Station over the life of the agreement (for example, calculated so as to ensure a revenue return that would cover the cost of the station)? If not, would FortisBC consider this be a reasonable method of setting the term for this agreement? If not, please explain why not. In responding to this question, FEI interprets revenue return as referring to fueling station revenues. To clarify, FEI s cost of service model recovers capital and O&M over the asset life by charging the customer a volumetric rate for fueling station service.

50 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Yes, this concept was considered by FEI and was discussed in the CNG/LNG Application proceeding. FEI was of the position that setting the term of the agreement to match the capital cost of the station was not an acceptable term for fleets. This meant that customers who operate vehicles for a period of years would be responsible for 0 years of capital. FEI previously argued that submitting this condition under GT&Cs B would limit FEI s ability to attract fueling station customers. However the final Commission-approved GT&Cs B contains the buyout/renewal provision (B.). 0. Has FortisBC considered revising the term requirements of the FSIOA in light of the Inquiry Decision? No.

51 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: RS - BENEFITS TO RATEPAYERS Exhibit B-, Section., pp. -. Exhibit B--, BCUC FortisBC.., p. : It is also a Contribution Agreement requirement that LNG be sourced from the FEI system as a means of paying back the cost of the grants. FortisBC Vedder LNG Fueling Station CPCN Application (Project No. ), s.., p. : capital costs [of the fueling station] are fully recovered through the take-or-pay commitment. Please confirm that the minimum delivery quantity of 0,000 GJ per year in the FSIOA (Section.) represents the same 0,000 GJ per year of LNG that FortisBC is forecasting to be used by Vedder vehicles receiving incentives under Prescribed Undertaking (i.e. the 0,000 GJ per year attributed to Vedder trucks in the Application, s.., p. ). If not confirmed, please explain why not. The delivery quantity of 0,000 GJ per year in the Fueling Station Installation and Operating Agreement (FSIOA) (section.) represents the same 0,000 GJ per year of LNG that FEI is forecasting to be used by Vedder vehicles that received grants in 00/0 under FEI s Commercial NGV Demonstration Program. (i.e., the 0,000 GJ per year attributed to Vedder trucks in the Application, section., p. ). FEI has proposed in its August, 0 GGRR rate treatment application to include these within the spending limit for Prescribed Undertaking. The Commission s decision with respect to the grants provided under the Commercial NGV Demonstration Program has not been received as yet. 0. Please confirm that FortisBC claims delivery margin benefits to its ratepayers pursuant to the NGVCA (see, for example, BCUC FortisBC.., p. ). If not confirmed, please explain why not. Confirmed. The Natural Gas Vehicle Contribution Agreement (NGVCA) is a contract for FEI funding assistance for the purchase of LNG trucks. FEI has agreed to contribute funds for the purchase

52 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page price of vehicles on the terms and conditions as set out in the NGVCA. Vehicles that receive incentive funding from FEI are required to purchase LNG from FEI. Therefore there is a high degree of certainty that additional LNG vehicles will increase demand for LNG from FEI s system resulting in delivery margin benefits for FEI s ratepayers. 0. Please confirm that FortisBC claims a positive impact on its ratepayers pursuant to the FSIOA (see, for example, s... of the Vedder LNG Fueling Station CPCN Application). If not confirmed, please explain why not. Confirmed The Fueling Station Installation and Operating Agreement (FSIOA) sets out the terms and conditions for operation of a permanent refueling station. The margin benefits as a result of increased demand for LNG through LNG stations positively impact ratepayers. Having the Vedder station in place and operating expands the available LNG fueling infrastructure that in turn supports continued growth in sales of LNG for transportation 0 0. Please confirm that the benefits discussed in Ferus LNG FortisBC.. and the positive impact discussed in Ferus LNG FortisBC.. are based on the same LNG quantities. If not confirmed, please explain why not. Not confirmed. The response to Ferus IR.. refers to Vedder s 0 consumption volume of 0,000 GJ/year for the 0 LNG trucks that were brought into service by Vedder in late 0 and early 0. Both the vehicle grants for the 0 LNG tractors and the LNG fueling station at Vedder s site play a role in achieving the benefit from 0,000 GJ of Rate Schedule throughput. However, the fueling station agreement discussed in Ferus IR.. also creates the opportunity for additional Rate Schedule throughput benefits through additional sales to Vedder or through sales to third parties at the Vedder station. Additional throughput benefits are occurring or may occur in each of these areas.

53 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: RS TERM OF NGVCA VERSUS TERM OF FSIOA Exhibit, B-, Section., pp. -. Exhibit B--, BCUC FortisBC.., p. : It is also a Contribution Agreement requirement that LNG be sourced from the FEI system as a means of paying back the cost of the grants. FortisBC Vedder LNG Fueling Station CPCN Application (Project No. ), s.., p. : capital costs [of the fueling station] are fully recovered through the take-or-pay commitment. For a party that arranges for FortisBC to construct an LNG fueling station for its fleet (e.g. Vedder), would the term of the commitment to purchase LNG from FortisBC under the NGVCA differ from the term under the FSIOA? If so, please explain why. Yes, the term of these two contracts may differ and are dictated by each customer s specific project. These agreements are executed separately and are often negotiated on different timelines. Not every party that signs a NGVCA will also sign a FSIOA. Customers have no obligation to select FEI as their fueling station service provider. Thus executing two stand-alone agreements is necessary. Although FEI includes an LNG supply provision in both its NGVCA and its FSIOA, it is the Rate Schedule agreement that dictates the term and contract demand of their LNG supply. As previously noted, the term of the contribution agreement (NGVCA) is generally set based on the anticipated useful life of the CNG/LNG vehicles that are purchased using incentives. The term of the fueling station agreement (FSIOA) will be set at a maximum of 0 years (based on the useful life of the CNG/LNG equipment) and generally within the range of to 0 years. The specific term is the subject of commercial negotiations with each customer and depends upon their specific situation. In some cases the term is set based on the customer s expected vehicle service life. In other cases it based upon another contractual commitment (i.e. BFI s hauling contract with City of Surrey). Please refer to the response to Ferus IR.. for additional discussion. In general FEI expects the term of the FSIOA will be longer, however exceptions may apply. Although the term of these agreements may differ, even the shorter term agreements are relevant as they include terms and conditions not limited to LNG supply.

54 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page. If the response to Ferus LNG FortisBC.. is "Yes", which agreement, NGVCA or FSIOA, would contain the longer term commitment? Please explain why. Please refer to the response to Ferus IR If the response to Ferus LNG FortisBC.. is "Yes", please confirm that the longer term commitment would apply, that is, the shorter term commitment would essentially be irrelevant. Please refer to the response to Ferus IR... 0

55 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: NATURE OF RS SERVICE - PRIORITY OF SERVICE Exhibit B-, Section...:, p. : Customers electing the long term service option will have access to available supply of LNG under Rate Schedule on a first-come, first-served basis, in the chronological sequence in which each long term customer has executed the service agreement for the Rate Schedule Service. Exhibit B-, Appendix E, Proforma Rate Schedule Tariff Effective January, 0, Section.: Stipulates that the Customer provide notice by :00 a.m. on each day of the Customer's requested quantity of LNG for that day. Exhibit B--, BCUC FortisBC..: Under the proposed approach, all customers will have access to the limited available LNG supply under the same terms and conditions. The first come, first served approach is a simple and fair mechanism to allocate the limited supply of LNG.. Please explain how FortisBC will determine, or schedule, available LNG on a daily basis. For example: (a) Does the hour advance notice provision in Section. effectively mean the scheduling request placed by :00 a.m. on any given day will be met within the hour period commencing on :00 a.m. of the following day? The provisions of Section. provide that customers must provide a minimum hours notice. The clock on the hour notice starts at am. So if notice is provided at pm on the 0 th of a month, the hour period begins at am on the th and the requested load time would need to fall after am on the th. The date of loading can also be adjusted forward or backward by FEI for convenience under Section.. In practice Section. sets the expectation and minimum requirements regarding providing notice, but the actual loading time will be discussed and agreed between FEI and the customer to meet scheduling requirements.

56 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page (b) How will FortisBC advise whether or not Spot Service is available? Will a Shipper simply place a request per Section. and wait to hear from FortisBC as to whether that quantity will be scheduled per Section.? Yes, the customer will make the purchase and shipment request. FEI will determine if it can be supplied and will notify the customer accordingly. 0 (c) Will all Firm Contract Demand requests under Section. be treated equally, that is, will they have the same priority, or will priority be established based on the date of execution of the underlying contract? 0 All firm shipments governed by firm contracts will be given equal priority in the establishment of loading schedules. FEI has the load out capacity to load up to trucks per day at Tilbury and will have at least the equivalent capacity at Mt. Hayes. This compares to the maximum contract load of,000 GJ/wk which would be trucks per day if shipped on a rateable basis. Given this situation FEI sees no difficulty in ensuring that all firm customer shipments are accommodated. 0. When FortisBC says that limited available LNG service will be allocated under a first come, first served approach, does this mean that FortisBC anticipates signing Firm contracts that in aggregate exceed its available supply of,000 GJ/wk? If not, and Firm contracts are limited to the available supply of,000 GJ/wk, why would there be a need to impose a first come, first served priority procedure? The first come first served approach is in relation to contracting firm service. FEI will not be contracting in excess of this amount. There is a need to have an allocation approach as FEI expects that customer demand will exceed,000 GJ/wk. In this event shipments would be limited to,000 GJ/wk, and

57 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page customers that wanted to sign up for service will not be able to. It will be the last customers that will not be served. 0. If the intent is to determine scheduling priority amongst similarly situated Firm customers (i.e. customers who have signed for the same type and term of service), on the basis of when they signed their contracts, please provide any precedents for such an approach and explain why such an approach is not unduly discriminatory. The intent is not related to determining scheduling priority Please confirm that a Long-Term Firm Service customer will have priority over a Short-Term Firm Service customer regardless of the date the Long-Term customer executed its contract (i.e. earlier Short-Term contracts will have a lower priority of service, notwithstanding their earlier execution dates). If not confirmed, please explain why not. As discussed in the responses to Ferus IRs.. and.., the priority relates to the contracting for Rate Schedule service, not to the scheduling of deliveries. If FEI has,000 GJ/wk available and two customers wish to contract for that capacity the party willing to execute the longer contract is the one that would be given priority and the shorter term contract would not be executed. Regarding actual shipments, FEI would in the aggregate be limited to,000 GJ/wk and has the capability to meet all shipment requests under this limit. Scheduling of shipments is determined under sections. through. of the Tariff.

58 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page 0.0 Reference: NATURE OF RS SERVICE - PRIORITY OF LONG-TERM FIRM SERVICE: FIRST COME, FIRST SERVED Exhibit B-, Section..., p. : Customers electing the long term service option will have access to available supply of LNG under Rate Schedule on a first-come, first-served basis, in the chronological sequence in which each long term customer has executed the service agreement for the Rate Schedule Service.. Please confirm that all customers electing Long-Term Firm Service will be paying the same charge for such service on a per unit contract demand basis? If not confirmed, please explain why not. Confirmed. 0. Please provide the rationale for providing Long-Term Firm Service on a firstcome, first-served basis according to the date of contract execution. Please refer to the response to Ferus IR... FEI expects customer demand will exceed,000 GJ/wk therefore it was determined that priority of service allocation rules were required. The first-come, first-served basis for Long-Term Firm Service customers relates to contracting for Rate Schedule service, not the priority of scheduling deliveries. 0. Would FortisBC reconsider its proposed priority for Long-Term Firm Service to prioritize such service on the basis of when specific requests, or "nominations", for service are received? If not, please explain why not and specifically why such an approach would not be consistent with avoiding undue discrimination amongst Long-Term Firm Service customers.

59 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page The proposed priority described in the question is not the intention of FEI. Please refer to the response to Ferus IRs.. through...

60 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: NATURE OF RS SERVICE - PRIORITY OF SHORT-TERM FIRM SERVICE: FIRST COME, FIRST SERVED Exhibit B-, Section..., p. : Customers electing the Short-Term Firm Service option will be able to purchase available supply of LNG under Rate Schedule, after long-term commitments have been met, on a first-come, first-served basis, in the chronological sequence in which each short-term customer has executed the service agreement for the Rate Schedule Service. 0. Please identify the provisions of the proposed RS that implement the firstcome, first-served feature of the proposed Short-Term Firm Service. Section of the proposed Rate Schedule tariff provides conditions of service, including Long Term Firm Service (section.) and Short Term Firm Service (section.) Please confirm that all customers electing Short-Term Firm Service will be paying the same charge for such service on a per unit contract demand basis? If not confirmed, please explain why not. Confirmed Please provide the rationale for providing Short-Term Firm Service on a firstcome, first-served basis according to the date of contract execution. FEI expects customer demand will exceed,000 GJ/wk. Therefore it was determined that priority of service allocation rules were required.

61 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Would FortisBC reconsider its proposed priority for Short-Term Firm Service to prioritize such service on the basis of when specific scheduling requests, or "nominations", for service are received? If not, please explain why not and specifically why such an approach would not be consistent with avoiding undue discrimination amongst Short-Term Firm Service customers. No. The priority rules apply to the ability to contract for Rate Schedule service, not to the scheduling of service. The priority rules allow for customers to sign up for supply for fixed periods and to have a contractual commitment that FEI will provide such supply over the term. If the proposed priority was established for the scheduling of loads, the customers that sign up to firm agreements may or may not receive their allotted supply as scheduling requests could bump the priority that was established when the firm contracts were executed.

62 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: NATURE OF RS SERVICE - PRIORITY OF SPOT SERVICE: FIRST COME, FIRST SERVED Exhibit B-, Appendix E, Proforma Rate Schedule Tariff Effective January, 0, Section.: A Firm agreement will transition to a Spot Load Service agreement upon termination of the Initial Term. Exhibit B--, BCUC FortisBC.., p. 0: FEI's understanding of the current Rate Schedule is that the priority of service for Spot Load is on a first-come, firstserved basis. Thus, if LNG sales capacity is available after Firm Contract Demand is satisfied, Spot Load customers will have access based on the chronological order their contracts were executed.. Please confirm that a Firm agreement that transitions into a Spot Load Service agreement upon termination of its Initial Term will have priority over other Spot Load Service agreements based on the date the original Firm Contract Demand agreement is executed. If not confirmed, please explain why not. No, the priority does not apply to scheduling. As stated in Section., Spot Load Service will be conditional based on the availability of sufficient capacity remaining after deducting the Contract Demand from all LNG Agreements for Long-Term Firm LNG Service and Short Term Firm LNG Service from the Available LNG Capacity. Under the spot agreement the customer contacts FEI to see if capacity is available. If it is, a shipment is confirmed. If not, no shipment is confirmed. 0. Please identify the provisions of the current RS that support FortisBC's "understanding" as per the referenced IR response (BCUC FortisBC..). The understanding of Spot Load service described in the response to BCUC IR.. is incorrect: Spot load agreements do not guarantee access to supply, so it is therefore not necessary to have any first-come, first served priority of service rule for Spot Load agreements. In addition, Spot Load customers do not have access based on the chronological order their contracts were executed. Rather, Section. of the current Rate Schedule states that Spot Load Service is available if capacity exists. Therefore, spot load service is conditional on

63 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page available supply after deducting firm contracted supply and in practice is conditional on supply being available at the time service is requested. As a practical matter the timing of requests for scheduling spot loads determines who gets any available spot capacity. It is not possible to reserve capacity in advance under a spot load agreement. 0. Does FortisBC intend to provide Spot Load Service under the proposed RS on a first-come, first-served basis, based on the chronological order in which contracts are executed? No, please refer to the response to Ferus IR... Under the new proposed tariff please see the Section - Conditions of Service. Scheduling of shipments to spot customers is subject to availability of capacity as set out in Section.. It is not possible to reserve capacity under spot agreements. 0. If the response to Ferus LNG FortisBC.. is "Yes", please identify the provisions of the proposed RS that implement this first-come, first-served feature of the proposed Spot Load Service. Please refer to the response to Ferus IR Please confirm that Spot Load customers make the same financial commitment (zero) for the right to access Spot Service from time to time (that is, unlike Firm Service, there is no take-or-pay or other financial commitment to the system unless service is actually taken)? If not confirmed, please explain why not. Confirmed.

64 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page. If the response to Ferus LNG FortisBC.. is "Yes", please provide the rationale for providing Spot Load Service on a first-come, first-served basis according to the date of contract execution. Please refer to the response to Ferus IR If the response to Ferus LNG FortisBC.. is "Yes", would a customer ("First Customer") that signs an agreement for Spot Load Service but never uses it have priority over another customer ("Second Customer") that signs an agreement a year later, but actively uses this agreement? In other words, would First Customer always and forever have priority over Second Customer, regardless of how much LNG First Customer actually purchases? No. Please refer to the response to Ferus IR If the response to Ferus LNG FortisBC.. is "Yes", would FortisBC reconsider its proposed priority for Spot Load Service to prioritize such service on the basis of when specific scheduling requests, or "nominations", for service are received? If not, please explain why not and specifically why such an approach would not be consistent with avoiding undue discrimination amongst Spot Load Service customers. The response to Ferus IR.. was no. Please refer to the response to Ferus IR...

65 Response to Ferus LNG Inc. ( Ferus ) Information Request ( IR ) No. Page Reference: NATURE OF RS SERVICE TRANSPORTATION SERVICE Exhibit B-, Appendix E, Proforma Rate Schedule Tariff Effective January, 0, Liquefied Natural Gas Sales and Dispensing Agreement ("LNGDSA"): Specifies that the term of LNG Transportation Service, if elected, shall equal the length of Firm Service. Exhibit B-, Appendix E, Proforma Rate Schedule Tariff Effective January, 0, LNG Transportation Service Agreement ("LNGTSA"), Section.: Specifies the term of the LNGTSA is equal to the term of the LNGDSA.. Notwithstanding FortisBC's stipulation that the term of the LNGTSA equal the term of the LNGDSA, may a party that elects transportation service choose to have FortisBC provide transportation for only a portion of the LNG quantities it purchases from FortisBC (and transport the remainder with tankers it supplies)? If the response is "No", please explain why not. The transportation service is optional. FEI would provide service for only a portion of the requirement if so requested by the customer. FEI believes such a situation is quite likely to occur as others develop their logistics systems and capabilities and need support from FEI s existing service.

66 Attachment.

67 LNG FUELING STATION INSTALLATION AND OPERATION AGREEMENT THIS AGREEMENT is made effective as of \'l\at'l\o\ '.,0 (the "Effective Date") BElWEEN: AND: WHEREAS: VEDDER TRANSPORT LTD: 00 Riverside Road, Abbotsford, Be VS P FORTISC ENERGY INC, 0 Fraser Highway, Surrey, British Columbia VN OEB ("Vedder") {"FEI") A. Vedder operates a fleet of class-eight liquid natural gas ("LNG" ) fuelled tractors (the "Tractors", or individually, a "Tractor") that will be fueled from Vedder's operations yard located at 00 Riverside Road, Abbotsford, BC (the "Yard Site"). B. In order to fuel the Tractors, Vedder purchases LNG from FEl's LNG plant located on Tilbury Island, Delta, BC (the "Tilbury Facility") pursuant to the terms and conditions of the FortisBC Rate Schedule, Interruptible Liquefied Natural Gas Sales and Dispensing Services, effective June, 00, as may be amended, replaced or substituted from time to time (the "Rate Schedule") and obtains transportation services from FEI to transport the LNG from the Tilbury Facility to the Yard Site pursuant to a Transportation Services Agreement entered into between the parties and dated effective May, 0 (the "Transportation Agreement"). C. A temporary fueling station has been insta lled at the Yard Site pursuant to a Temporary LNG Station Installation and Operation Agreement (the "Temporary Agreement"). The Parties now wish to replace to temporary fuelling station with a permanent fueling station (the "Fueling Station") upon the terms and conditions set out herein. NOW THEREFORE, in consideration of the mutual promises set out herein and other good and valua ble consideration (the receipt and sufficiency of which is hereby acknowledged) the parties agree as follows:. Term.. Term. The term of this Agreement shall commence on the Effective Date and shall expire on the 0 th anniversary of the in-service date of the Fueling Station (the "Initial Term"), which term may be extended or renewed or terminated earlier in accordance with this Agreement (the Initial Term and any extensions or renewals are collectively referred to as the "Term").. Renewal, Subject to Section, this Agreement will renew automatically for an additional ten (0) years..0 - Vedder - LNG Fueling Station Installation and Operation Agreement

68 .. License and Access to the Fueling Station.. Fueling Station Area. Vedder shall provide lands at the Yard Site, as more particularly shown in Schedule B, upon which FEI shall install the Fueling Station (the "Fueling Station Area").. License. Vedder grants a non-exclusive irrevocable license to FEI and its authorized employees, contractors and agents, during the Term, to excavate for, install, place, construct, renew, alter, repair, maintain, use, abandon, remove or replace the Fueling Station, in whole or in part, on the Fueling Station Area and to enter and cross over the Yard Site and have continual access to the Fueling Station Area over the Yard Site, and Vedder agrees to allow FEI and its authorized employees, contractors and agents, to bring such materials, supplies, equipment, machinery and vehicles into the Fueling Station Area as required by FEI and have unimpeded access to the Fueling Station on a continuous basis for the purposes set out in this Agreement. Vedder agrees not to do or knowingly permit to be done anything which may, in the reasonable opinion of FEI, interfere with FEI's license rights hereunder or injure the Fueling Station or damage the operating efficiency of the Fueling Station or create any hazard.. Change In Ownership of Fueling Station Area. Vedder may sell the Fueling Station Area subject to the following conditions: (al (b) (e) Vedder causes the purchaser to enter into an assumption agreement with FEI, in a form reasonably satisfactory to FE I, causing the purchaser to assume all of Vedder's obligations under this Agreement and acknowledging FEl's right, title and interest in and to the Fueling Station; such purchaser continues to grant FEI the license rights set forth in Section. of this Agreement; and Vedder obtains the prior written consent of FE I to the sale ofthe Fueling Station Area to the purchaser, such consent not to be unreasonably withheld. In the event of any change in ownership of the Fueling Station Area, all of Vedder's obligations under this Agreement, including without limitation, payment of the Fueling Charges (as defined herein) and purchase of the Minimum Quantity (as defined herein) as set out herein still apply. Nothing herein shall preclude or prevent Vedder from selling or disposing of any business assets, which sale or disposal does not include a change in ownership of the Fueling Station Area and does not interfere with the operation of the FuelingStation or FEI's rights under this Agreement.. Information Required for Consent. For the purposes of providing consent under Section.(c), Vedder shall cause the purchaser to provide FEI with the following information with respect to the purchaser: (a) (b) (c) (d) (e) nature of the business; number of years in business; number of employees; base of operations; bank certification of financial resources; and.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

69 (f) audited profit and loss statements and balance sheets or consolidated financial statements for the preceding three years.. Permits and Approvals.. Approvals. For the purposes of this Agreement, "Approvals' means those consents, permits, filings, orders or other approvals necessary in connection with the ownership, installation, operation and maintenance of the Fueling Station. The tenn Approval is intended to be broad and not restrictive and sufficient to cover those governmental consents and approvals, building and construction permits, environmental pennits, zoning changes or variances affecting, or necessary for, the ownership, installation, operation and maintenance of the Fueling Station.. FEI Approvals. Except as otherwise specified herein, FEI sha ll be responsible for obtaining and maintaining the necessary Approvals with respect to the ownership, installation, maintenance and repair of the Fueling Station, Including the necessary approvals of the British Columbia Utilities Commission (the "BCUC") and shall ensure such Approvals are duly transferred or provided to Vedder where appropriate. Vedder shall use its commercially reasonable efforts to assist FEI in obtaining such Approvals where necessary.. Vedder Approvals. Vedder shall be responsible for obtaining and maintaining the necessary Approvals required for the use of the Fueling Station and shall ensure such Approvals are duly transferred or provided to FEI where appropriate. FEI shall use its commercially reasonable efforts to assist Vedder in obtaining such Approvals where necessary.. Installation of the Fueling Station.. Preparation of Fueling Station Area and Yard Site. Prior to installation of the Fueling Station by FEI or its contractors or agents, Vedder shall ensure that: (a) the Fueling Station Area is capable of supporting the Fueling Station and traffic of 0 Tractors or equivalent vehicles, at minimum; and (b) the Yard Site is properly prepared to allow FEI to have unimpeded access over and across the Yard Site for the purposes of installing and maintaining the Fueling Station on the Fueling Station Area.. Electrical Supply. Vedder shall provide the electrical supply necessary for the Fueling Station, which electrical supply shall be brought to the battery limits of the Fueling Station, provided however, that neither party shall be liable to the other for any loss or damage arising from delay or loss of service which is caused by. any interruptions or losses of power due to BC Hydro interruptions, interruptions caused by Vedder's Yard Site operations or any other cause.. Specifications. FEI and Vedder have agreed upon the specifications of the Fueling Station as set out at Schedule A (the "Specifications") and Vedder consents to the Fueling Station being built upon the Fueling Station Area which is consistent with the Specifications and compliant with all applicable Approvals, laws and regulations.. Installation Work. Each party shall be responsible to undertake the work Identified as their responsibility in the scope of work attached as Schedule C (the ' Scope of Work"), in a good and.0 - Vedder LNG Fueling Station Installation and Operation Agreement

70 workmanlike manner, using qualified subcontractors and consistent with industry standards and in compliance with all applicable Approvals, laws and regulations.. Ownership of the Fueling Station.. Ownership of the Fueling Station. Except in the event the Customer purchases the Fueling Station pursuant to sections.(b),.(c) or, or with respect to such portions of the Fueling Station not removed from the Yard Site upon expiry or early termination of this Agreement in accordance with section., FEI shall retain all right, title and interest in and to the Fueling Station whether or not the Fueling Station (or any part thereof) is affixed to the Yard Site and Vedder acknowledges and agrees that notwithstanding any rule of law or equity to the contrary, the Fueling Station shall not be considered a fixture. Vedder shall have no right, title or interest in the Fueling Station other than the right to use the Fueling Station In accordance with the terms and conditions of this Agreement, unless or until such time as Vedder acquires ownership of the Fueling Station as contemplated in this Agreement. FEI shall be entitled to install sign age within the Fueling Station Area and notices on the Fueling Station identifying FEI's ownership of the Fueling Station.. Removal of the Fueling Station. Removal of the Fueling Station. If remova I of the Fueling Station is required pursuant to this Agreement or otherwise upon expiry of this Agreement, FEI will be obligated to remove only those portions of the Fueling Station to surface level, excluding any concrete pad, and any portion of the Fueling Station not removed by FEI will become the property of Vedder and FEI will have no further liability with respect to such unremoved portions of the Fueling Station.. Maintenance. Operation. Security and Safety of the Fueling Station.. Maintenance of the Fueling Station. Subject to Section., FEI shall, on a commercially reasonable basis, maintain at its expense, the Fueling Station in good and safe working order in accordance with the Specifications and all applicable Approvals, laws and regulations, provided that FEI shall not be liable or responsible for any loss or damage arising from delay or loss of service hereunder and further provided that Vedder shall be responsible for all costs and expenses incurred by FEI to repair any da mage to the Fueling Station resulting from: (a) (b) any and all damage to the Fueling Station arising directly or indirectly from the acts or omissions of Vedder or its agents or other persons for whom at law Vedder is responsible; and any and all damage to the Fueling Station arising directly or indirectly from the acts or omissions of a third party.. Use of the Fueling Station. (a) Vedder shall be responsible for providing all labour with respect to the use of the Fueling Station and shall dispense LNG in accordance with the Fueling Station manufacturer's dispensing instructions, all applicable Approvals, laws and regulations, and any reasonable requirements of FE I, as amended from time to time..0 - Vedder - LNG Fueling StatIon Installation and Operation Agreement

71 (b) FEI shall provide, at intervals to be determined by the parties, acting reasonably, all appl icable training to Vedder for the use of the Fueling Station and Vedder sha ll permit only its employees, contractors and agents who have received such training to use the Fueling Station.. Safety Requirements. (a) (b) (c) (d) Vedder shall be responsible for the safety and protection of any individuals operating Tractors or dispensing LNG at the Fueling Station and shall comply with all applicable safety laws and regulations. Vedder shall develop, implement and comply with safety plans for the Yard Site, induding its operations on and ownership of the Yard Site. FEI shall provide, at intervals to be determined by the parties acting reasonably, all applicable LNG safety training to Vedder and Vedder shall permit only its employees, contractors and agents who have received LNG safety training from FEI to use the Fueling Station. Vedder shall comply with all safety procedures required by FEI with respect to the Fueling Station and use of the Fueling Station and all applicable Approvals, laws and regulations. FEI shall comply with all safety procedures required by Vedder and all applicable Approvals, laws and regulations related to the Fueling Station Area.. Security of the Fueling Station. Vedder shall be responsible for ensuring the Fueling Station is provided with security satisfactory to FEI in the form of locked fencing, video surveillance and periodic patrol outside of regular business hours.. Supply of LNG and Fueling Charges.. Exduslvity. During the Term, Vedder shall permit only LNG supplied by FEI to be dispensed from the Fueling Station, provided however, in the event FEI is not able to supply LNG for use at the Fueling Station, Vedder may utilize a temporary supplier of LNG at the Fueling Station until FEI is able to resume such supply.. Fueling Charges. Subject to sections.,. and., in addition to any fees or charges payable to FEI related to the supply and transportation of LNG, Vedder agrees to pay the following amounts for the use of the Fueling Station (the "Fueling Charges"), plus applicable taxes thereon, to FEI monthly: (al (b) $. per GJ of LNG dispensed from the Tilbury Facility per month during the first year of the Term, increased by % each year thereafter, (the "Capital Rate"), plus $0. per GJ of LNG dispensed from the Tilbury Facility per month during the first year of the Term, adjusted each year by the percentage increase, if any, in the Consumer Price Index (published by Statistics Canada for the City of Vancouver, all items, not seasonally adjusted) from the previous twelve month period (the "O&M Rate");.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

72 (the "Capital Rate" plus the "O&M Rate" collectively referred to as the "Base Rate") subject to a minimum annual Fueling Charge (the "Minimum Guarantee") calculated by multiplying the Base Rate for such year by the Minimum Quantity identified in section... Amendment to the Fueling Charges. Vedder acknowledges and agrees that the Fueling Charges incorporate FEI's charge-out rate for use of the Fueling Station, the installation costs of the Fueling Station, FEI's agreed upon overhead rate of 0% with respect to such installation costs and a projected capital expenditure by FEI of approximately $ABO,BOS. Should the actual capital expenditures differ by +/- %, subject to the necessary BCUC approvals, FEI may amend the Fueling Charges accordingly.. Minimum Guarantee. Vedder acknowledges the Fueling Charges are based on the delivery of at least 0,000 GJ of LNG to Vedder per year. Vedder agrees to purchase a minimum of, GJ of LNG per month (the "Minimum Quantity"), provided that: <a) (b) if FEI is not able to supply LNG, Vedder may utilize a temporary supplier until FEI is able to resume supply and the Minimum Quantity shall be adjusted by the amount of LNG obtained from such temporary supplier; and payment based on the Minimum Quantity will be waived for any month if Vedder's average monthly purchase of LNG for the preceding months in that year is equal to or greater than the Minimum Guarantee.. Additional Usage. If more than the Minimum Quantity is delivered to the Fueling Station in any month, the rate payable for such LNG in excess of the Minimum Quantity shall be the O&M Rate plus fifty percent (0%) of the Capital Rate.. Statements and payments of Fueling Charges.. The Fueling Charges shall be determined according to the LNG dispensed from the Tilbury Facility as calculated by scale tickets at the TIlbury Facility and appropriate conversion factors. Such calculation and conversions shall be conducted by FEI.. FEI shall, on or about the th day of each month, deliver to Vedder, a statement for the preceding month showing the Fueling Charges and the amount due. Any errors in any statement shall be promptly reported to FEI as provided hereunder, and statements shall be fina l and binding unless questioned within one year after the date of the statement.. Payment for the full amount of the statement, including federal, provincial and municipal taxes or fees applicable thereon, shall be made to FEI at its Surrey, British Columbia office, or such other place in Canada as it shall designate, on or before the st business day after the 0th calendar day following the billing date. If Vedder fails or neglects to make any payment required under this Agreement, or any portion thereof, to FEI when due, FEI shall include in the next bill to Vedder a late payment charge of.% per month (.% per annum) on the outstanding amount.. Vedder shall have the right to review the scale tickets and conversion factors in respect of the LNG delivered to the Fueling Station and other records directly related to the performance of.0-vedder - LNG Fueling Station Installation and Operation Agreement

73 this Agreement in order to verify invoices and compliance with this Agreement. Such review shall be conducted at Vedder's expense, unless such review shows errors in either amounts invoiced to Vedder or the quantities of LNG dispensed by the Fueling Station which exceed two percent (%). 0. Use of the Fueling Station by Other Users. 0. Third Party Use of Fueling Station. FEI a nd Vedder intend to make the Fueling Station available to third party commercial users who shall be mutually agreed to by the parties ("Other Users"). The terms and conditions for providing service to Other Users and the related revenue sharing arrangements will be defined in a separate agreement to be negotiated by the parties, and subject to BCUC Approval.. Representations and Warranties.. Representations and Warranties of Vedder. Vedder represents and warrants to FEI that as of the Effective Date: (a) (b) (c) (d) (e) Vedder has the full right, power and authority to enter into this Agreement; all necessary corporate action on the part of Vedder has been taken to authorize and approve the execution and delivery of this Agreement and the performance by Vedder of its obligations hereunder; to the best of Vedder's knowledge, this Agreement and the performance of Its obligations under this Agreement does not breach any provisions of any other agreement or law that is binding on or applicable to Vedder as of the date of this Agreement; Vedder is not party to any action, suit or legal proceeding, actual or threatened, and there are no circumstances, matters or things known to Vedder which might give rise to any such action, suit or legal proceeding, and there are no actions, suits or proceedings pending or threatened against Vedder before or by any governmental authority, which could affect Vedder's ability to perform its obligations under this Agreement; and Vedder is the owner of the Fueling Station Area and the Yard Site and has power, capacity and authority to provide the license rights to FEI as contemplated in this Agreement.. Representations and Warranties of FEI. FEI represents and warrants to Vedder that as of the Effective Date: (a) (b) subject to the necessary approvals of this Agreement by the BCUC, FEI has the full right, power and authority to enter into this Agreement; all necessary corporate action on the part of FEI has been taken to authorize and approve the execution and delivery of this Agreement and the performance by FEI of its obligations hereunder;.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

74 (c) (d) subject to the necessary approvals of this Agreement by the BCUC and subject to the best of FEI's knowledge, this Agreement and the performance of its obligations under this Agreement does not breach any provisions of any other agreement or law that is binding on or applicable to FEI as of the date of this Agreement; and FEI is not party to any action, suit or legal proceeding, actual or threatened, and there are no circumstances, matters or things known to FEI which might give rise to any such action, suit or legal proceeding, and there are no actions, suits or proceedings pending or threatened against FEI before or by any governmental authority, which could affect FEI's ability to perform its obligations under this Agreement.. BCUC Approval. BCUC Approval. Vedder acknowledges that FEI is a public utility as defined in the Utilities Commission Act (British Columbia) and that this Agreement and the terms and conditions contained herein are subject to approval by the BCUC. In the event that this Agreement and/or the terms and conditions contained herein do not receive the necessary approvals of the BCUC on terms and conditions which are satisfactory to FEI acting reasonably having regard to its bona fide business interests, the parties agree to negotiate in good faith to mitigate each other's costs.. Termlnatjon by Vedder for Cause.. Subject to Section, FEI shall be in default under this Agreement if FEI is in breach of a material term, covenant, agreement, condition or obligation imposed on it under this Agreement, including without limitation, failure to comply with applicable Approvals, laws and regulations as provided in this Agreement, provided: (a) (b) Vedder provides FEI with a written notice of such default and a 0-day period within which to cure such a default (the "Cure Period"); and FEI fails to cure such default by the expiry of the Cure Period, or if such default is not capable of being cured within the Cure Period, fails to commence in good faith the curing of such default upon receipt of written notice from Vedder and to continue to diligently pursue the curing of such default thereafter until cured.. If FEI Is in default of this Agreement, Vedder may at its option and without liability therefore or prejudice to any other right or remedy it may have: (a) (b) suspend or refuse to make any payments due hereunder until the default has been fully remedied, and no such suspension or refusal shall relieve FEI from any of its obligations under this Agreement and Vedder may undertake the necessary steps to remedy FEl's default at FEI's sole expense, which reasonable costs shall be deducted from the Fueling Charges, and such actions shall not relieve FEI from ally of its obligations under this Agreement; or terminate this Agreement and purchase the Fueling Station for a price equivalent to the then existing un-depreciated capital cost of the Fueling Station at the date of.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

75 termination, which purchase price shall be payable to FEI within 0 days of Vedder providing FEI written notice of its intention to terminate the Agreement.. Termination by FEI for Cause.. Subject to Section, Vedder shall be in default under this Agreement if Vedder is in breach of a material term, covenant, agreement, condition or obligation imposed on it under this Agreement, includ ing without limitation, failure to comply with applicable Approvals, laws and regulations as provided in this Agreement, failure to provide access to and use of the Fueling Station Area in accordance with Section., sa le of the Yard Site or Fueling Station Area except in accordance with Section., failure to purchase the Minimum Quantity as provided in Section. and failure to make payment to FEI when due, provided: (a) (b) FEI provides Vedder with a written notice of such default and the Cure Period; and Vedder fails to cure such default by the expiry of the Cure Period, or if such default is not capable of being cured within the Cure Period, fails to commence in good faith the curing of such default upon receipt of written notice from FEI and to continue to diligently pursue t he curing of such default thereafter until cured.. If Vedder is in default of this Agreement, FEI may at its option and without liability therefore or prejudice to any other right or remedy it may have: (a) (b) (c) cease performing the its obligations under this Agreement and no such actions shall relieve Vedder from any of its obligations under this Agreement and FEI may undertake the necessary steps to remedy Vedder's default at Vedder's sole expense and such actions shall not relieve FEI from any of its obligations under this Agreement; remove the Fueling Station in whole or in part and terminate this Agreement; and/or require Vedder to purchase the Fueling Station and terminate this Agreement and Vedder shall pay to FEI, within 0 days of FEI providing Vedder written notice of its intention to terminate the Agreement, the following amounts: i. the then-existing un-depreciated capital cost of the Fueling Station; plus ii. an amount equal to present value of the earnings foregone by FEI to the end of the Term as reasonably calculated by FEI in good faith based upon FEI's regulated return on invested capital.. Termination at Expiry of Initial Term.. If Vedder wishes to terminate this Agreement at the expiry of the Initial Term, it must provide FEI with written notice of its intention to terminate this Agreement at least six () months prior to the expiry of the Initial Term and purchase the Fueling Station from FEI at a price to be calculated as follows, which purchase price shall be payable to FEI within fourteen () days prior to the expiry of the Initial Term :.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

76 (a) (b) the un-depreciated capital cost of the Fueling Station at the expiry of the Initial Term, which the parties agree is $,, CDN; plus an amount equal to present value of the earnings foregone by FEI to the end of the Initial Term as reasonably calculated by FEI in good faith based upon FEI' s regulated return on invested capital.. If FEI wishes to terminate this Agreement at the expiry of the Initial Term, it must provide Vedder with written notice of its intention to terminate this Agreement at least six () months prior to the expiry of the Initial Term and shall offer to sell the Fueling Station to Vedder for a purchase price no greater than the un-depreciated capital cost of the Fueling Station at the expiry of t he Initial Term, which the parties agree is, subsection to section., $,, CDN, which purchase price shall be payable to FEI within 0 days of Vedder providing FEI written notice of its intention to purchase the Fueling Station.. When calculating the un-depreciated capital cost of the Fueling Station, FEI will apply the payments received with respect to the Capital Rate for the additional usage pursuant to section., if any, to the capital cost of the Fueling Station.. Insurance Requirements_. Insurance Requirements of Vedder. Vedder shall obtain at its own expense, maintain during the Term, and provide proof to FEI, the following insurance coverage: (a) (b) (e) Workers' Compensation Insurance in accordance with the statutory requirements in British Columbia for all its employees engaged in any of the work or services underthis Agreement; with respect to any Tractors owned or operated by Vedder, Automobile liability Insurance with a limit of not less than $,000,000 per occurrence in respect of bodily injury, death and property damage, which policy shall extend to damage caused to the Fueling Station by such Tractors; and.general Commercial liability Insurance for bodily injury, death and property damage In the amount of $,000,000 per occurrence naming FEI as an additional insured with respect to the Agreement. FEI may, by written notice, require Vedder to obtain additional Insurance or to alter or amend the insurance policies required under this section at FEI's expense. Vedder shall be responsible for the full amount of all deductibles of ali insurance policies required under this section, except those additionally requested by Vedder as contemplated above. All insurance policies required herein shall provide that the insurance shall not be cancelled or changed In any way without the insurer giving at least 0 calendar days written notice to FEI and shall be purchased from insurers registered in and licensed to underwrite insurance in British Columbia. Where Vedder fails to comply with the requirements of this sectio n, FEI may take all necessary steps to affect and maintain the required insurance coverage at Vedder's expense.,0 - Vedder -LNG Fueling Station Installation and Operation Agreement 0

77 . Insurance Requirements of FEI. FEI shall obtain at its own expense, maintain during the Term, and provide proof to Vedder, the following insurance coverage: (a) (b) Workers' Compensation Insurance in accordance with the statutory requirements in British Columbia for all its employees engaged in any of the work or services under this Agreement; and General Commercial liability Insurance for bodily injury, death and property damage in the amount of $,000,000 per occurrence naming Vedder as an additional insured with respect to this Agreement. Vedder may, by written notice, require FEI to obtain additional insurance or to alter or amend the insurance policies required under this section at Vedder's expense. FEI shall be responsible for the full amount of all deductibles of all insurance policies required under this section, except those additionally requested by Vedder as contemplated above. All insurance policies required herein shall provide that the insurance shall not be cancelled or changed in any way without the insurer giving at least 0 calendar days written notice to Vedder and shall be purchased from insurers registered in and licensed to underwrite insurance in British Columbia. Where FEI fails to comply with the requirements of this section, Vedder may take all necessary steps to affect and maintain the required insurance coverage at FEI' s expense.. Environmentallndemnjtv.. HContaminants n means collectively, any contaminant, toxic substances, dangerous goods, or pollutant or any other substance which when released to the natural environment is likely to cause, at some immediate or future time, material harm or degradation to the natural environment or material risk to human health, and includes any radioactive materials, asbestos materials, urea formaldehyde, underground or aboveground tanks, pollutants, contaminants, deleterious substances, dangerous substances or goods, hazardous, corrosive or toxic substances, hazardous waste or waste of any kind, pesticides, defoliants, or any other solid, liquid, gas, vapour, odour or any other substance the storage, manufacture, disposal, handling, treatment, generation, use, transport, remediation or release into the environment of which is now or hereafter prohibited, controlled or regulated by law.. Notwithstanding any other provision of this Agreement, Vedder shall release and indemnify FEI and its directors, officers, employees, successors and permitted assigns, from any and all liabilities, actions, damages, claims (Including remediation cost recovery claims), losses, costs, orders, fines, penalties and expenses whatsoever (including all consulting and legal fees and expenses on a solicitor-client basis and the cost of remediation of the Fueling Station Area) arising from or in connection with: (a) (b) any release or alleged release of any Contaminants at or from the Yard Site including without limitation the Fueling Station Area except to the extent that such release was a direct result of the negligent acts of FEI or any person for whom it is in law responsible in carrying out its obligations under this Agreement; or the presence of any Contaminants on or off the Yard Site before or after the Effective Date of this Agreement except to the extent that the presence of such Contaminants is a.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

78 direct result of the negligent acts of FEI or any person for whom it is in law responsible in carrying out its obligations under this Agreement.. Notwithstanding any other provision of this Agreement, FEI shall re lease and indemnify Vedder and its directors, officers} employees, successors and permitted assigns} from any and all liabilities, actions, damages, claims (including remediation cost recovery claims), losses, costs, orders, fines, penalties and expenses whatsoever (including all consulting and legal fees and expenses on a solicitor-client basis and the cost of remediation of the Fueling Station Area) arising from or in connection with any release or alleged release of any Contaminants related to any negligent act or omission of FEI or person for whom it is in law responsible in carrying out its obligations under this Agreement. Environmental representations and warrant ies. Vedder represents and warrants to FEI that to the best of its knowledge there are no actions, proceedings, investigations, claims (including remediation cost recovery claims) pending. or threatened, that would interfere with FE!'s use or access to the Fueling Station or the Fueling Station Area or the Yard Site or that relate to t he presence of Contaminants in, under or migrating to or from the Fueling Station Area or the Yard Site.. Environmental covenants.. Vedder acknowledges and agrees that FEI is not responsible and shalf not be responsible for any Contaminants now present, or present in the future, in, on or under the Yard Site. or that mayor may have migrated on or off the Yard Site except to the extent that the presence of such Contaminants is a direct result of the negligent acts or om issions of FEI or person for whom it is in law responsible in carrying out its obligations under this Agreement.. Vedder and FEI shall not use or permit the Fueling Station Area to be used for the sale, storage, manufacture, disposal, handling, treatment, use or any other dealing with any Contaminants, except in compliance with applicable law. 0. Indemnification and limitation of liabilitv. 0. Vedder shall indemnify and hold harmless each of FEI and its employees, directors and officers from and against any and all adverse claims, losses, suits, actions, judgments, demands, debts, accounts, damages, costs, penalties and expenses (including all legal fees and disbursements) arising from or out of: (aj (bj the negligence or wilful misconduct of Vedder, its employees, directors, officers or contractors; or the breach by Vedder of any of the provisions contained in t his Agreement including those related to the payment bv Vedder of alf federal, provincial, and municipal taxes (or payments made in lieu thereof) and Workers' Compensation premiums. 0. FEI shall indemnify and hold harmless each of Vedder and its employees, directors and officers from and against any and alf adverse claims, losses, suits, actions, judgments, demands, debts,.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

79 accounts, damages, costs, penalties and expenses (including all legal fees and disbursements) arising from or out of: (a) (b) the negligence or wilful misconduct of FEI, its employees, or contractors; or the breach by FEI of a ny of the provisions contained in this Agreement. 0. FEI's liability to Vedder and Vedder's liability to FEI under this Section 0 for damages from any cause whatsoever including but not limited to a cause in the nature of a breach of a material term, covenant, agreement, condition or obligation imposed under this Agreement regardless of the form(s) of action, whether in contract or tort, including negligence or strict liability or otherwise, shall be limited to the payment of direct damages and such damages shall in no event in the aggregate exceed $,00,000 over the Term including any renewal periods or extensions. Each party has a duty to mitigate the damages that would otherwise be recoverable from the other party pursuant to this Agreement by taking appropriate and commercially reasonable actions to reduce or limit the amount of such damages or amounts. 0. Notwithstanding the foregoing, in no event shall either party be responsible or liable under Section or this Section 0 for any indirect, consequential, punitive, exemplary or incidental damages of the other or any third party arising out of or related to the Agreement, including but not limited to loss of profit, loss of revenues, or other special damages, even if the loss is directly attributable to the gross negligence or wilful misconduct of such party, its employees, or contractors.. Reporting and Compliance. Vedder acknowledges it has obligations, responsibilities and regulatory requirements relating to the development and implementation of personal safety and emergency response plans with respect to its operations on, and the ownership of and use of, the Yard Site and the storage and dispensing of LNG. FEI acknowledges it has obligations, responsibilities and regulatory requirements relating to the development of transportation and environmental emergency response plans with respect to the transportation and storage of LNG and the maintenance and operation of the Fuelling Station. The parties agree to cooperate with each other in preparing, testing and implementing their respective safety and emergency response plans and preparing and submitting reports to the applicable regulatory agencies from time to time. In no way limiting the generality of the foregoing, Vedder agrees to: (a) (b) (e) (d) comply with its personal safety and emergency response plans and all regulatory reporting requirements; provide information as required by FEI from time to time for inclusion in respect of FEI's reporting to regulatory requirements; cooperate with FEI to ensure consistency with and coordination between its personal safety and environmental emergency response plans and FEI's transportation and environmental emergency response plans;; implement and comply with FEI's transportation and environmental emergency response plans;.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

80 (e) incorporate provisions in Vedder's environmental emergency plans with respect to incidents involving fuel delivery tankers at the Yard Site and incidents occurring at the Fueling Station or the Fueling Station Area into its personal safety and environmental emergency response plans.. Force Majeure.. Except with regard to a party's obligation to make payment due under the Agreement, if either party is unable or fails by reason of Force Majeure to perform in whole or in part any obligation or covenant set forth in this Agreement, such inability or failure shall be deemed not to be a breach of such obligation or covenant and the obligations of both parties under this Agreement shall be suspended to the extent necessary during the continuation of any inability or failure so caused by such Force Majeure.. The parties intend that the term "Force Majeure" shall be restricted to mean an event or circumstance which directly prevents or restricts one party from performing its obligations under this Agreement, which event or circumstance was not anticipated as of the date the Agreement was agreed to, which is not within the reasonable control of the party providing notification of the Force Majeure to the other party, and which, by the exercise of due diligence, the party providing notification of the Force Majeure to the other party is unable to overcome or avoid or cause to be avoided. For greater certainty, "Force Majeure" includes: (a) (b) (c) (d) (e) (f) physical events such as acts of God, landslides, lightning, earthquakes, fires, storrrs or storrr warnings that result in evacuation of the affected area, floods, washouts, explosions; weather related events affecting an entire geographic region, such as low temperatures which cause freezing or failure of wells or lines of pipe; acts of others such as riots, sabotage, terrorist acts, insurrections or wars; strike or lock-out or other industrial action; governmental actions such as necessity for compliance with any court order, law, statute, ordinance, or regulation promulgated by a governmental authority having jurisdiction; and interruption of supply of LNG under the Rate Schedule; provided, however, that any such event shall be considered a Force Majeure Event if such event is a major disabling event or circumstance in relation to the normal operations of the party concerned as a whole which is beyond the reasonable control of the party directly affected and results in a material delay, interruption or failure by such party In carrying out is duties, covenants or obligations under the Agreement.. The party whose performance is prevented by Force Majeure must provide notification to the other party. Initial notification may be given orally; however, notice with reasonably full particulars of the event or occurrence is required as soon as reasonably possible.. Dispute resolution.. Where any dispute arises out of or in connection with this Agreement, including failure of the parties to reach agreement hereunder, the parties agree to try to resolve the dispute by.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

81 participating in a structured mediation conference with a mediator under the National Arbitration Rules of the ADR Institute of Canada Inc. for Dispute Resolution.. If the parties fail to resolve the dispute through mediation within thirty (~} days of the dispute arising, the unresolved dispute shall be referred to, and finally resolved or determined by arbitration under the National Arbitration Rules of the ADR Institute of Canada Inc. for Dispute Resolution. Unless the parties agree otherwise the arbitration shall be conducted by a single arbitrator.. The arbitrator shall issue a written award that sets forth the essential findings and conclusions on which the award is based.. lithe arbitratorlails to render a decision within thirty (0) days following the final hearing of the arbitration, any party to the arbitration may terminate the appointment of the arbitrator and either party shall be entitled to apply to a judge of the British Columbia Supreme Court to appoint an arbitrator and the arbitrator so appointed shall proceed to determine the matter mutatis mutandis in accordance with the provisions of this section.. The arbitrator shall have the authority to award: (a) (b) (c) (d) money damages; interest on unpaid amounts from the date due; specific performance; and permanent relief.. The costs and expenses of the arbitration, but not those incurred by the parties, shall be shared equally, unless the arbitrator determines that a specific party prevailed. In such a case, the nonprevailing party shall pay all costs and expenses of the arbitration, but not those of the prevailing party.. The parties shall continue to fulfill their respective obligations pursuant to this Agreement during the resolution of any dispute in accordance with this section.. Confidentialilv.. All information or documentation received by a party (the "Receiving Party") which has been specifically identified by other party (the "Disclosing Party") as confidential shall be deemed to be confidential and proprietary to the Disclosing Party. Except as otherwise provided herein, the Receiving Party shall not directly or indirectly disclose any such confidential information or documentation to any third party without the prior written consent of the Disclosing Party. Such consent is not required where the third party is another contractor or consultant retained by the Receiving Party for the purposes contemplated in th'ls Agreement and to the extent that such disclosure is necessary for the proper performance of this Agreement or to the extent that such disclosure is required by law.. Notwithstanding the foregoing, the Receiving Party may use such confidential information in the preparation of and submissions to regulatory agencies..0 - Vedder - LNG Fueling Station Installation and Operation Agreement

82 . The obligation of confidentiality set out above shall not apply to material, data or information which is known to either party prior to their receipt thereof, which is generally available to the public or which has been obtained from a third party which has the right to disclose the same.. Without limiting the generality of the foregoing, neither party shall issue a press release or public announcement respecting any aspect of this Agreement nor the agreements contemplated herein without the consent of the other party, such consent not to be unreasonably withheld or delayed.. Survival.. The following sections shall survive the termination or expiration of this Agreement;,, 0,,,,. and... General.. Costs. Except as otherwise set out in this Agreement, each party will be responsible for the payment of its own costs related to performing its obligations under this Agreement.. Governing law. The parties agree that the Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada and the parties shall attorn to the jurisdiction of the courts of British Columbia and all courts competent to hear appeals therefrom.. Assignment. Neither party shall assign its rights and obligations under the Agreement without the prior written consent of the other party, such consent not to be unreasonably withheld or delayed. Without limiting the generality of the foregoing, FEI may assign the Agreement, or parts thereof, to any of its affiliates.. No joint venture or partnership. Nothing contained in this letter or the Agreement shall be construed to place the parties in the role of partners or joint venturers or agents and no party shall have the power to obligate or bind any other party in any manner whatsoever.. Notice. Any notices or other communication which may be or is required to be given or made pursuant to the Agreement shall, unless otherwise expressly provided herein, shall be in writing and shall be personally delivered to or sent by facsimile to either party at its address set forth below:.0 - Vedder - LNG Fueling Station Installation and Operation Agreement

83 If to: FORTlSBC ENERGY INC. 0 Fraser Highwav Surrev, BC VN OEB Attention: Doug Stout Vice President, Energy Solutions & External Relations Fax: 0-0 If to: VEDDER TRANSPORT ltd. 00 Riverside Road Abbotsford, Be VS P Attention: Copy to: Vito Triggiano Manager, Natural Gas for Transportation Solutions Fax: 0-. Schedules. The following schedules are incorporated into and form part of this Agreement: Schedule A - Fueling Station Specifications Schedule - Fueling Station Area Schedule C - Scope of Work. Interpretation. In and for the purposes of this Agreement, la) Ib) Ie) Id) Ie) this "Agreement" means this agreement as the same mav from to time be modified, supplemented or amended in effect; any reference in this Agreement to a designated "Article", "section" or any other subdivision is to the designated Article, section or other subdivision of this Agreement; the headings are for convenience onlv and do not form part of this Agreement and are not intended to interpret, define or limit the scope, extent or intent of this Agreement; the singular of anv term includes the plural, and vice versa, the use of anv term is generallv applicable to anv gender and, where applicable, a corporation, the word "or" is not exclusive and the word "including" is not limited (whether or not non-limiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto); and unless otherwise specified herein, all capitalized terms used herein shall bear the meanings as defined, and each word and phrase used herein and not otherwise defined herein, but which has accepted meaning in the custom and usage of the Western Canadian oil and gas transportation industry, shall have such accepted meaning.. Amendments to be in writing. Except as set out in this Agreement, no amendment or variation of the Agreement shall be effective or binding upon the parties unless such amendment or variation Is set forth in writing and duly executed by the parties..0 - Vedder - LNG Fueling Station Installation and Operation Agreement

84 . Waiver. No party is bound by any waiver of any provision of this Agreement unless such waiver Is consented to in writing by that party. No waiver of any provisions of this Agreement constitutes a waiver of any other provision, nor does any waiver constitute a continuing waiver unless otherwise provided..0 Enurement. This Agreement enures to the benefit of and is binding on the parties and their respective successors and permitted assigns.. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such determination does not impair or affect the validity, legality or enforceability of any other provision of this Agreement.. Further Assurances. The parties shall sign such further and other documents and do and perform and cause to be done and performed such further and other acts and things as may be necessary or desirable in order to give full effect to this Agreement.. Remedies Cumulative. All rights and remedies of each party under this Agreement are cumulative and may be exercised at any time and from time to time, independently and in combination.. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written. There are no cond itions, covenants, representations, warranties or other provisions, whether express or implied, collateral, statutory or otherwise, relating to the subject matter of this Agreement except as provided in this Agreement.. Time is of the essence. Time is of the essence in this Agreement.. Execution. This letter may be executed in counterparts, each of which shall be deemed as an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of this letter by facsimile or electronic transmission hereof shall be as effective as delivery of an originally executed counterpart hereof. IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. FORTlSBC ENERGY INC. v.0 - Vedder LNG Fueling Station Installation and Dperation Agreement

85 SCHEOULEA FUElING STATION SPECIFICATIONS [see attached]

86 Vedder Pf tmarwnt LNQ FoCility MaterIal and Certifications List P..,...t tiy. s..~ensl n Mrin lined on informstionfmm ~t ar Ft...u.iG n, A. hbnjioiy n, 0 ""'" '''' OZ-...sJ _ u.,.ldtntiflh OtIIh""', Q -ooo.0 and tou COMPONENT S'ZE O-.serlptlon SpcHlcatlcnlRatlng LNG_... ~in{,~usg} netujpaci~ UlZIh (,llq USG)!rJSS capacif crn.t ~ VS 000SC-CS LNG Vedcal mragb w.;.siji, vacuu""'ul~:ayer ns.ja0n Compete foill ~io!i ~, I&I-el and li"~e gwge:s, JMCDri! ~bu. m~{~ll$' CMn;~, b:t!al disk, and ji'us!i'e teltlyanes ().ni Vll!It" - LNG centifugal PJmp System CG~ ' tng oflwo OuallNG TC KA h/giiprusute ~&pul<l\! ~nd UJlPl re!t.jnft!*t) D~PInp ~~CmbngX I.rlIWdilX CQI!IIete~PlDadclPoIIoad_m.iso~artdcllect;.....!tIigh(l!''x) ~Mldchil.s, ~ a<!d!eo;ierat;.'litill~» : pres;urerel i@f~. Singe Ltro TC-KA. hiwi presslfe GJfo<:diJlg pmnp (mcw;lti iftnal ~- ~li O_ m('ii'z) IIlIM ng~~!sIa.rI(COI'U!f(!IoM._':I,~ ~b~pumpsy... fsdafon Mdchdt~ ~msn.ilm aropol('liwe rc&!f~ ""'" UIG... ~II.i:e ~ O,m leng K.n ~~h "x') Cty~"!no system ooosisting of Sc~ 0 ~ I'PII \I'l'I 00"",.. -JZ' ~;rd'.lmete' p\:lillg IIlCUIlm jatklll' ~ do\)r IIIIllti!;Jyer ioij ld Q ~. Pipe rmrting IIIJn lrnge vessel 0 pumps and ~s Pt nlltri per profiti:t dra-~-o S. :::- ~.::..ml.m('jf),qcomp~.ern0wfal~lid. faii.cioss]lym va!ve. ~ -..ii!.. woief, drler, IIb"lii, IRis. and!lll!lrlr IOIenoN vane Sirlg!e ejecn:ai cootol cablll.ei hoo in; Siemens ~bjul PlC CJId Coo.o:NIneJ: ~bngj.m ~ gh (' x a 0" Siemens MuHPMelModeI MP to~ Sl'fOOn LWeI tlti:tface.., and OOs/aticll pcftt cfswru00 QUiJllllt Tetlphooe.akJlt.. arm Cipatill\' nd ~i~ ffiioie IIlOIIItOOng I alnl ~~Secbl VII. V!;ss~lIa. BCQU<l MaiIUn ~~PIeSI!WIIIbag{'~ CUV. r~ F 0.oC (.a(if '0 0Fl ~k~ttwn ern ruqlwe nk!ll ~ prt!llsoozell JIIIIP P<Jl ~~BC ~~~PresSI.ft barg (Zpsg) WNamDe~Tl!llprraarv -IC(-n lbniab>r;mjortrlll~sl0ii~~owm)\'iijj!, Iipanl'I'IlI b_...tq,or l0ltttsfnlilulv gpmj~ l) MoychiC!, T~ ~tlose, callirtetnol.mled LNG d,~peners~ l'i; actuafon valvn ano' M Icro:IIo ~oo flow me!er (US ~ lind ~ ;ls ~'I\iS Cfriied), prusure ~ nd tlmperep-" iii:ltcaoo I ~ noula ki ilec:oomdb,onorlhsiar ~ ~sun rrilfvam&. IId Mal::roEl\!&pense rmz!& Milh m (0') dlspet"fllme ASNE.-, &:qe """"""'... """",.",,... SP: Ge!IersI MollllDra M:)deI ~OOC meti_letr.cim - Silo GlIOOfal ~o.'!a's MJdel FL (00 Uh.'J!o~Dred FIaIII r alarm """"" Sovt'fI CI!I~stopbu~ AlOOII System consist'g 0 all alarm horn and Mo _ S egeftnl~

87 SCHEPUlE B FUELING STATION AREA [see attached]

88 J, \ \ \, \