Project Specific Information Package Kakwa Expansion Pipeline Project

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1 3800, 525 8th Avenue S.W. Calgary, Alberta T2P 1G1 Project Specific Information Package Kakwa Expansion Pipeline Project Pembina Pipeline Corporation ( Pembina ) plans to make an application to the Alberta Energy Regulator ( AER ) for approval to construct and operate the Kakwa Expansion Pipeline Project ( the Project ). The Project consists of the construction of approximately 69 km of 16-inch diameter pipeline from a tie-in point located at LSD W6M at the existing Kakwa Pump Station to a tie-in point located at LSD W5M. The Project is needed to connect existing and future supply of high vapour pressure ( HVP ) and low vapour pressure ( LVP ) hydrocarbon liquids from the Kakwa and Lator areas of Alberta into the 16 inch Simonette Expansion (currently under construction) that terminates at the Pembina Fox Creek facility. The Project will be under the jurisdiction of the Alberta Energy Regulator ( AER ). As per AER Directive 056 Energy Development Applications and Schedules requires that parties whose rights may be directly and/or adversely affected by the nature and extent of the proposed Project be consulted and/or notified of the Project-specific details. Project Description Pembina is committed to full disclosure of its planned projects so landowners, occupants, Crown disposition holders, local and urban authorities, Aboriginal communities and other groups or individuals with interests in the area are informed of the activities proposed. The following table summarizes Pembina s plans regarding the above noted Project. If you require any additional information or would like to talk with a Pembina representative regarding this Project, please do not hesitate to call the contacts listed at the end of this information package. AER Category and Type The Kakwa Expansion Pipeline Project is classified by the AER as a Category D, Type 530 pipeline. Location The Project will originate at a tie-in point located at LSD W6M at the existing Kakwa Pump Station and will terminate at a tie-in point located at LSD W5M. A map showing the Project location is attached. Page 1 of 6

2 Project Description The Project consists of the construction of approximately 69 km of 16-inch diameter pipeline from a tie-in point located at LSD W6M at the existing Kakwa Pump Station to a tie-in point located at LSD W5M. The pipeline will be designed to transport High Vapor Pressure liquids ( HVP ) and Low Vapour Pressure ( LVP ) liquids. HVP hydrocarbon liquids are a mix of ethane, propane, butane and pentanes plus. The LVP, liquids include condensate and crude oil. Pembina is currently completing its pipeline engineering design. Watercourses along the pipeline route are being assessed for the presence of fish and fish habitat by a Qualified Aquatic Environment Specialist. In consultation with Fisheries and Oceans Canada and Alberta Environment and Sustainable Resource Development, Pembina will determine the most appropriate crossing methods to minimize disturbance, which may include horizontal directional drilling and isolation techniques when water is flowing. Project Need The Project is needed to connect a growing supply of HVP and LVP hydrocarbon liquids in the Kakwa and Lator area of Alberta to existing processing facilities in the Edmonton/Fort Saskatchewan/Redwater area of Alberta. Currently, Pembina has incremental capacity available on the existing Peace Pipeline System from Fox Creek to the Edmonton/Fort Saskatchewan/Redwater area but does not have capacity on the pipelines between Kakwa and Fox Creek to deliver product beyond Fox Creek. Pembina previously consulted on and is currently constructing a project that will increase capacity between the Simonette area and Fox Creek. This Project will provide producers in the Kakwa and Lator/Karr areas with pipeline connectivity to transport volumes to the Simonette area and then ultimately to Edmonton/Fort Saskatchewan/Redwater on the existing Pembina pipeline system instead of trucking volumes to terminals in and around the Fox Creek area. The Project will ultimately reduce the number of trucks carrying hydrocarbon product on the local roads and will provide producers with a more efficient and safer means of transporting volumes to markets. In the future, the Project will be required to transport new volumes of HVP and LVP liquid hydrocarbons, that will be developed in the immediate area and the area west/northwest of the Kakwa river. Substance Type The product transported in the pipeline will include HVP and LVP hydrocarbon liquids. H 2 S There will be no hydrogen sulphide (H 2 S) in the product transported on the pipeline. Page 2 of 6

3 Project Schedule and Duration After receipt of all applicable regulatory approvals, Pembina plans to initiate clearing and construction of the Project sometime in Q Pembina estimates the Project will be in operation starting Q Safety / Environment Pembina is committed to health, safety and environmental stewardship throughout the life of this and all its projects. Pembina has a strong reputation for constructing and operating facilities designed to meet or exceed AER safety and environmental protection regulations and guidelines. Pembina commits to continue to meet or exceed these guidelines and regulations. Pembina encourages a workplace that places a high priority on the health and safety of employees, contractors and the public at large, and ensures its pipelines and facilities meet the highest standards. Pipeline Integrity Pembina s integrity management program is founded on quality management principles, technical programs and system-specific analysis. It incorporates industry best practices that are designed to meet or exceed regulatory requirements. A strict focus on safe and reliable operations lessens the likelihood of pipeline incidents, sustains Pembina s license to operate, and ultimately reduces the cost of operations. The cornerstone of Pembina s pipeline integrity management program is the use of in-line inspection technologies to detect corrosion and ultrasonic devices to detect cracks. Pembina also employs customized Supervisory Control and Data Acquisition (SCADA) technology to monitor pipeline flow and operating conditions. Operators oversee the SCADA system and associated leak detection software 24-hours a day, 365 days per year. Pembina maintains a geotechnical database designed to help minimize integrity hazards associated with ground movement and watercourse channelling. Such technologies allow Pembina to proactively identify potential pipeline threats and prevent spills from occurring. To further protect the integrity of Pembina s pipelines against possible damage by third-party excavators or construction activity, Pembina maintains routine aerial patrols and is a long-standing member of the Alberta One-Call system. Pembina continues to enhance its public awareness program by regularly meeting with local first-responders and visiting with landowners. Page 3 of 6

4 Emergency Response Plan Emergency Response Planning Zone Pembina is dedicated to protecting the health and safety of the public as well as its employees and contractors. Operations will be conducted in strict accordance with industry best practices and in compliance with all applicable technical and safety standards and regulations. Pembina personnel are trained to recognize hazards and deal with emergency situations so that any abnormal situation that might arise can be quickly detected and corrected. A Emergency Response Plan ( ERP ) covering this Project will be developed, approved and implemented prior to the commencement of operation of the Project. The ERP will meet the requirements of the AER s Directive 071 Emergency Preparedness and Response Planning for the Petroleum Industry. Pembina will adopt an Emergency Planning Zone ( EPZ ) of 1600 metres for this Project measured from either side of the centre line of the pipeline based on the CAPP Guide Companion Planning Guide to ERCB Directive 071 for a 16-inch diameter pipeline. Setbacks As with all pipelines and facilities, there are minimum setback distances required between an energy facility or pipeline and a dwelling, public facility, rural housing project or urban centre. Simply put, setbacks prevent populated areas from developing too close to energy facilities or pipelines and prevent energy facilities and pipelines from getting too close to people. The setback distance for this Project is the pipeline right-of-way which will be 25 meters. Traffic As with any construction project, there will be a temporary increase in intermittent noise and traffic due to the movement of equipment and construction personnel to and from the construction site. If there are any concerns regarding excessive traffic during construction they should be reported to one of the contacts listed at the end of this information package. There will be no increase in traffic during the operation of the Project as the pipeline will be operated and maintained by the personnel who currently work on the existing Pembina Pipeline system. The Project will ultimately reduce the number of trucks carrying hydrocarbon product on the local roads and will provide producers with a safer means of transporting volumes to markets. Page 4 of 6

5 Noise During construction, there will be a temporary increase in noise due to the movement of traffic and equipment to and from the right-of-way. Pembina will work with its neighbours to address noise-related concerns during construction, should they arise. If there are concerns regarding excessive noise during construction, please contact one of the Pembina representatives listed at the end of this information package. There will be no new sources of noise during the operation of the Project. Noise levels will comply with the AER requirements of Directive 038 Noise Control. Odours/Emissions Pembina does not expect any odours from the operation of the Project. Pembina asks that any unusual odours be reported immediately to its local operations representative or call its 24-hour emergency number Pembina will promptly investigate and ensure any problems are corrected. Continuous Venting/Flaring There will be no continuous permanent flaring associated with the Project. Additional Information Thank you for taking the time to read this handout. If you have questions or concerns, please do not hesitate to the Pembina representative listed in the Contacts section below. In addition, the Alberta Energy Regulator ( AER ) has developed additional information about energy development in Alberta. As per AER Directive 56 please find enclosed a copy of the Letter from the Chairman of the AER. Upon request, Pembina would be pleased to provide copies of: AER brochure Understanding Oil and Gas Development in Alberta EnerFAQ No. 7 Proposed Oil and Gas Development: A Landowner guide EnerFAQ No. 15 Objecting to an Energy Resource Project, and form Objecting to an Energy Resource Project. You are encouraged to contact Pembina or the AER directly through their website, by telephone, or fax, to obtain additional AER EnerFAQs, Information Directives or General Bulletins pertaining to oil and gas operations. Page 5 of 6

6 ALBERTA ENERGY REGULATOR - CALGARY MAIN OFFICE To call toll-free, dial or , and then the Calgary number, with area code Alberta Energy Regulator Suite 1000, th Street SW Calgary Alberta, T2P 0R4 Toll-free inquiries@aer.ca Website: Contacts If you have questions or concerns, please do not hesitate to call any of the Pembina representatives listed below. If you are calling outside of business hours, please leave a message with one of the representatives and your call will be returned the next business day. If this is an emergency please contact the Pembina 24 Hour Emergency Number at Please note this number is for emergencies only. Surface Landman, Chad Dalke directly at (587) Aboriginal Relations, Wolf Schroeder directly at (403) Pembina 24 Hour Emergency Number: Page 6 of 6

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