Montréal, Quebec Community Panel Session. National Energy Board August 29, 2016

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1 Mntréal, Quebec Cmmunity Panel Sessin Natinal Energy Bard August 29,

2 TransCanada: 65 years f experience in the respnsible and safe delivery f energy Owns ne f the largest natural gas pipeline netwrk in Nrth America 90,300 km f pipelines 664 Bcf/d f strage capacity 23 Bcf/d, apprximately 27% f cntinental demand And an imprtant liquid pipeline netwrk 4,300 km f pipelines 545,000 bbl/d (20 % f western Canadian exprts) Leading private sectr pwer prducer in Canada 17 pwer plants prducing 10,500 MW $5 billin invested in lw emissin GHG technlgies, including the six Cartier Énergie wind farms Ttal assets: $78 billin (June 2016) 2

3 Energy East Pipeline Prject: a $15.7 billin privately financed prject* 4,516 km f pipelines 3,002 km f repurpsed natural gas pipelines 1,514 km f new pipelines 1.1 millin il barrels per day (light crude, synthetic crude, diluted bitumen, etc.) frm Western Canada t refineries in Eastern Canada and fr exprt 71 pump statins, 3 tank terminals, 1 marine terminal A buried cm (42-inch) diameter steel pipeline Permanent right-f-way between 20 and 25 meters dcument number dcument sensitivity * estimated cst is befre AFUDC and the gas asset transfer csts 3

4 Why Energy East? Safest and mst envirnmentally respnsible mde f crude il transprtatin Will reduce crude il imprts and imprve access t internatinal markets fr Canadian il Mre than 50% f il prcessed by Eastern Canadian refineries cmes frm utside Canada Substantial ecnmic benefits fr Quebec and acrss Canada Eurpe 12.1 millin bpd U.S. 9.7 millin bpd India 4.7 millin bpd Asia 20.9 millin bpd Surce: CAPP 2016, IHS, EIA, Statistics Canada 4

5 Energy East Pipeline in Quebec: +/- 649 km f new pipeline New pipeline 625 km Pipeline laterals 16 km + 8 km N. f meter statins 2 N. f pump statins 10 N. f pipeline valves 107 5

6 Meetings and cnsultatin frm prject inceptin Several meetings with landwners, municipalities, MRCs, the UPA, Indigenus cmmunities and ther stakehlders Mre than 300 km ut f 649 have been mdified fllwing these cnsultatins: 29 pen huses and 8 safety and emergency respnse days mre than 170 meetings with representatives f municipalities, MRCs and the UPA 34 grup meetings and 7,000 individual meetings with landwners lcated n the prjected rute Funded engagement prgrams with 23 Indigenus cmmunities and rganizatins: cmmunicatins and Engagement Funding Agreements with 4 cmmunities nging r cmpleted studies n the use f territry fr traditinal purpses by 5 cmmunities Mre than 250 prject-related meetings with first natin cmmunities and rganizatins 6

7 Envirnmental and Sci-ecnmic Assessment (ESA) Takes int accunt the effects related t cnstructin and peratin Cmplies with the NEB Filing Manual (2014) and the Canadian Envirnmental Assessment Act, 2012 Multidisciplinary exercise invlving lcal specialized cnsultants while taking int accunt envirnmental, sci-ecnmic, technical and safety aspects Prepared n the basis f a significant cllectin f existing data; n specific infrmatin requests; and n a large-scale inventry and cnsultatin with Indigenus cmmunities and ther stakehlders Prpses a range f measures t mitigate the ptential negative effects 7

8 Main issues and cncerns Effects, cnsequences and interventin resulting frm accidents r malfunctins Water crssings Rivière des Outauais Effects n agricultural land use Integrity f frested areas and wetlands Maximizatin f lcal ecnmic benefits Challenges related t the engagement with Indigenus cmmunities and rganizatins 8

9 Rute passing thrugh the MMC s territry 9

10 MMC s main cncerns Prject rute Water crssings: Rivière des Mille-Îles and Rivière des Prairies are bth crssed by HDD Prximity t prtected areas: l Archipel-du-Mitan recgnized nature reserve Rivière des Mille-Îles plant habitat is crssed by HDD Lss f frested areas and wetlands Land-use planning Effects f a spill n the envirnment and drinking water supply Emergency respnse plan and public safety Ecnmic and tax benefits 10

11 Prtectin f the envirnment and safety at every stage Onging Regulatry Oversight Cnceptin Cnstructin Operatin Rute selectin Water crssings Lcatin f pipeline valves Specificatins fr materials and equipment Crrsin preventin Identificatin f avidance and mitigatin measures External inspectin f the pipeline Hydrstatic testing Internal pipeline inspectin Envirnmental mnitring 24/7 mnitring Internal inspectins Leak detectin Aerial surveillance and grund patrls Integrity prgram Emergency respnse planning Fllw-up prgram 11

12 Water intake and municipal well data cllectin Data cllectin frm MRCs/Cities/Municipalities Mre than 120 specific requests submitted fr the purpse f identifying: municipal and cmmunity surface water intakes municipal and cmmunity artesian wells municipal well supply areas filtratin plant Pre-cnstructin inventry f private wells (within a 200 meter strip n bth side f the rute) lcatin f the wells gathering f water samples and pumping tests cmmunicatin f data t the landwners Data integrated int the emergency respnse plan 12

13 Water crssings 860 watercurses crssed by the pipeline 21 watercurses lcated in the pump statins PDA 23 watercurses lcated in the permanent access rads PDA 82% f the watercurses are classified perennial, intermittent r permanent small watercurses Adapted water crssing methds tunnel crssing belw the Saint Lawrence River trenchless crssing methds used fr several significant watercurses trench crssing (pen cut r islated) 25% f the water crssings have Restricted Activity Perids Envirnmental mnitring 13

14 Hrizntal Directinal Drilling (HDD) Entry and exit pints varying frm 102 t 529 m frm the tp f the slpe Minimum depth varying frm 18 t 82 m belw the watercurse bed 14

15 Effects n agricultural land use Agricultural lands alng the rute (219 km r 34%) Agricultural lands arund the pump statins (26.9 ha r 27%) Predminance f field crps (crn, sybean and cereal) With respect t the pipeline temprary effects cmpensatin fr lss f crps prir use is pssible fllwing land rehabilitatin changes brught t undergrund drainage system flw-up prgram With respect t pump statins land will be acquired by Energy East 15

16 Integrity f frested areas Frested areas alng the rute (317 km r 49%) Juxtapsitin t existing facilities (54% f the rute lcated in frested areas) Frested areas arund pump statins (43.0 ha r 44%) With respect t the pipeline temprary effects in wrk areas peridic mnitring f wdy vegetatin With respect t pump statins land will be acquired by Energy East Less than 0.5% f the native vegetatin cver lcated in the RAA affected by the Prject 16

17 Integrity f wetlands Wetlands alng the rute (91 km r 14 %) Juxtapsitin t existing facilities (64% f the rute lcated in wetlands) Wetlands arund pump statins (29.1 ha r 29 %) With respect t the pipeline temprary effects prir use is pssible fllwing land rehabilitatin envirnmental fllw-up prgram With respect t pump statins land will be acquired by Energy East Less than 0.3% f wetlands lcated in the RAA affected by the Prject 17

18 Effects f accidents r malfunctins, cnsequences and respnse Impact analysis (histrical ccurrence and frequency f accidents) Assessment f the cnsequences (scenaris and varius receptrs) Emergency respnse planning Strategic planning f resurces (staff and equipment) Respnse time respecting, at a minimum, the guideline develped by the Canadian Energy Pipeline Assciatin (CEPA) Financial respnsibility 18

19 Ecnmic benefits fr Quebec 3,168 jbs annually (direct and indirect) during the 9 year develpment phase 324 jbs annually (direct and indirect) during the first 20 years f peratins Cntributin f $9.26 billin t Quebec s GDP, between 2013 and 2040 $2.12 billin increase in gvernmental revenues during cnstructin and the first 20 years f peratins $100 millin f annual perating expenses, which include purchase f electricity fr pump statins, municipal and schl taxes and varius ther csts 19

20 Cnclusin Energy East: the safest and mst envirnmentally respnsible mde f crude il transprtatin The pipeline culd displace the equivalent f ver 1,500 rail cars per day and reduce imprts frm ther cuntries Since prject inceptin, we have engaged extensively with Indigenus cmmunities and we will cntinue t d s Energy East : a prject which is in the best interest f the cuntry, and Quebec 20

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