Open Season Guidelines

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Vivien Patience Baker
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1 C04-ANA 2.4 (a) Attachment Maritimes & Northeast Pipeline Expansion Project Open Season Guidelines February 15 to March 31, 2005

2 Maritimes & Northeast Pipeline is ideally situated to expand in order to connect emerging international and east coast natural gas supply sources to some of the most dynamic markets in Eastern Canada and the Northeastern United States. VT Quebec City Westbrook NH MA Quebec Boston Bangor Portland Maine Advantages of the Maritimes System: Connected to premium Northeast U.S. & New England Markets Connected to growing Eastern Canadian markets Economically expandable for any supply increment Building onto the existing pipeline means minimal impact to land owners & the environment Timing advantage to access markets New Brunswick Fredericton Saint John Open Season The Open Season provides an opportunity for both suppliers and consumers of natural gas to confirm their interest in transporting new volumes Moncton Nova Scotia Prince Edward Island Halifax Goldboro Point Tupper Maritimes & Northeast Pipeline - Canada Maritimes & Northeast Pipeline - US Joint Facilities - M&NP / PNGTS Algonquin Gas Transmission Tennessee Gas Pipeline Portland Natural Gas Transmission System Existing Compressor Station Current System Delivery Point of natural gas that may become available through proposed LNG projects and other supply projects that could connect to the Maritimes & Northeast Pipeline ( Maritimes ) system. This Open Season is open to all prospective shippers, both in Canada and the U.S., who may provide natural gas supplies or take natural gas deliveries through the extensive receipt & delivery alternatives the Maritimes system and this expansion project provide. The System The Maritimes system, a 1365 km (850 mile) pipeline network stretching from Nova Scotia to Massachusetts, began flowing gas from the Sable Offshore Energy Project in December Maritimes interconnects with the North American transmission grid at three points: the Portland Natural Gas Transmission System at Westbrook, Maine; the Tennessee Gas Pipeline system at Dracut, Massachusetts; and the Sable Island Algonquin Gas Transmission system at Beverly, Massachusetts. Through its mainline, lateral pipelines, and interconnections, Maritimes provides customers with unparalleled access to growing Eastern Canadian and Northeastern U.S. markets. The Maritimes system was designed with expansion in mind. With an established pipeline system in place, Maritimes is well-positioned to capture market growth opportunities as new supplies become available. Through the addition of compression and pipeline looping, Maritimes can economically increase its capacity to accommodate supply increments of any size. In addition, by expanding

within its existing pipeline corridor, Maritimes provides a timing advantage to market, and is environmentally superior to greenfield pipeline projects.

The targeted in-service date for new capacity is in the 2007-2008 timeframe.

development activities, leading to regulatory filings in late 2005.

3 within its existing pipeline corridor, Maritimes provides a timing advantage to market, and is environmentally superior to greenfield pipeline projects. The Expansion Project Maritimes is planning to increase its capacity in both Canada and the U.S. to meet new market demand for transportation services ( Expansion Project ). The targeted in-service date for new capacity is in the timeframe. Through this Open Season, Maritimes objective is to determine the magnitude of demand for new transportation capacity in order to optimize the design of its Expansion Project and proceed with project development activities, leading to regulatory filings in late Process During the February 15, 2005 to March 31, 2005 Open Season, any party desiring transportation capacity ( Customer ) must submit a detailed request for service by completing the enclosed Service Request Form(s) (Attachments A-1 and A-2), as applicable. Additional forms can be found on the Maritimes website at Any questions should be directed to Rob Whitwham at All requests will be subject to the following requirements to ensure inclusion in the Expansion Project: (i) Customer must proceed with diligence in negotiating and executing definitive, long-term precedent agreement(s) for firm transportation capacity (the Definitive Agreements(s) ) by June 1, 2005, on the Maritimes Canada pipeline system and/or the Maritimes U.S. pipeline system. (ii) The minimum primary term of service governed by the Definitive Agreements is 20 years. (iii) Maritimes anticipates that it will need to finalize its design for the Expansion Project on or about September 1, In light of that, conditions precedent in the Definitive Agreement(s) will include, without limitation, a demonstration by Customer that it has adequate supply commitments, as well as environmental permits and other authorizations, for any project that Customer proposes to construct, by a date consistent with the deadline for Maritimes to finalize the Expansion Project design. (iv) Customer will be expected to execute an agreement with Maritimes such that, in the event the Definitive Agreement(s) is/are terminated prior to the date on which the Expansion Project is placed into service, Customer will reimburse Maritimes for a portion of the costs incurred, allocated to, or irrevocably committed to by Maritimes in connection with the furtherance of the Expansion Project, plus interest. Final service agreement(s) that result from the Definitive Agreement(s) will be subject to the General Terms and Conditions of Maritimes Canada s NEB Gas Tariff and Maritimes U.S. FERC Gas Tariff. Rates The charge for transportation service on the Maritimes Canada system will be the NEB-approved 100% load factor, fully rolled-in toll, calculated on a cost-of-service basis as applicable from time to time, or such other NEBapproved toll as may be appropriate for the requested service. Retainage for fuel and lost and unaccounted for gas will be based on actual usage. The charge for transportation service on the Maritimes U.S. mainline system will be the FERC-approved maximum applicable recourse rate, unless the parties can mutually agree on a negotiated rate by June 1, Retainage for fuel and lost and unaccounted for gas will be based on actual usage.

4 Service Request Form Maritimes U.S. System - Attachment A-2 Customer Information Company Contact Title Address Telephone Fax Contract Requirements (please attach additional sheets if required) Maximum Daily Transportation Quantity (Dth/d) Point of Receipt Points of Delivery / Quantity (Dth/d) Service Commencement Date Contract Term Please send and/or fax completed Service Request Forms to: Rob Whitwham, Director Marketing & Business Development Maritimes & Northeast Pipeline 1801 Hollis Street, Suite 1600 Halifax, NS, Canada B3J 3N4 (902) fax (902) phone rwhitwham@duke-energy.com Signature of Requestor/Customer Date

5 Service Request Form Maritimes Canada System - Attachment A-1 Customer Information Company Contact Title Address Telephone Fax Contract Requirements (please attach additional sheets if required) Maximum Daily Transportation Quantity (MMBtu/d) Point of Receipt Points of Delivery / Quantity (MMBtu/d) Service Commencement Date Contract Term Please send and/or fax completed Service Request Forms to: Rob Whitwham, Director Marketing & Business Development Maritimes & Northeast Pipeline 1801 Hollis Street, Suite 1600 Halifax, NS, Canada B3J 3N4 (902) fax (902) phone rwhitwham@duke-energy.com Signature of Requestor/Customer Date

6 For more information on the Maritimes Expansion Project Open Season, please contact: Rob Whitwham, Director, Marketing & Business Development (902) phone

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