B1-19. February 21, British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, B.C. V6Z 2N3

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1 B1-19 Scott A. Thomson VP, Finance & Regulatory Affairs and Chief Financial Officer February 21, 2006 British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, B.C. V6Z 2N Fraser Highway Surrey, B.C. V3S 2X7 Tel: (604) Fax: (604) Attention: Mr. R. J. Pellatt, Commission Secretary Dear Sir: Re: Terasen Gas (Vancouver Island) Inc. ( TGVI ) and Terasen Gas (Whistler) Inc. ( TGW ) TGW 2005 Resource Plan Update, and TGW Application to convert Propane Grid to Natural Gas, and TGVI Application to construct Natural Gas Pipeline from Squamish to Whistler Revision to Response for Ministry of Energy and Mines Information Request ( IR ) No. 1, We refer to our response to Ministry of Energy and Mines IR No. 1, 5.1, and in particular the schedule attached as "Summary of First Nations Meetings and Presentations". It has come to our attention that the last four entries on, identified as "Off the record discussions" should not have been included in the response. It had previously been agreed by Terasen and the Squamish Nation that these discussions would not constitute "consultation" in the formal sense. We therefore enclose a revised, omitting the references to these four meetings. We apologize for any inconvenience this error may have caused. Yours truly, Original signed by Tom Loski For: Scott A. Thomson cc: G. McDade (Counsel for Squamish Nation) Registered Intervenors

2 Terasen Gas's Whistler Pipeline Project SUMMARY MEETINGS AND COMMUNICATIONS Meetings conducted 08-Mar Mar-04 05/04/2004, 16/04/2004, Lil' Wat First Nation Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Creekside Resources, 140 Lonsdale Ave, North Vancouver Art Swenson Property Representative Lil' Wat First Nation to Chief Leonard Andrew & Council from Terasen Gas: Bruce Falstead, Lil' Wat First Nation Justin Wilson, General Manager, Creekside Resources from Phone calls, Presented plans for a proposed Whistler Lateral Pipeline and/or the possibility of propane expansion in Whistler. Protocol was explained and Terasen was instructed to send a letter to Chief Leonard Andrew & Council Request to enter into dialogue on the proposed Whistler Pipeline project as well as instructions on how to proceed with Lil'wat staff. Whistler Lateral Pipeline meeting request 19-Jul Jul Aug Aug-04 Lil' Wat First Nation Justin Wilson, General Manager, Creekside Met Hotel Vancouver Whistler Lateral Pipeline. Justin explained process for ResourcesTerasen Gas: Bruce Falstead Aboriginal Relations consultation. Need to understand each others expectations Manager, David Bodnar, Director Community, Aboriginal and Government Affairs Lil' Wat First Nation to Justin Wilson, General Manager, Creekside ResourcesTerasen from Terasen Gas: Bruce Falstead, Lil' Wat First Nation from Lyle Leo Lil'wat Nation to Terasen Gas: Bruce Falstead, Request for a meeting on the proposed Whistler Pipeline project. Formal process recommended as well as due diligence funding Met Hotel Vancouver Whistler Lateral Pipeline and Multi Utility Opportunities. Planning for due diligence funding 16-Aug-04 Lil' Wat First Nation from Justin Wilson, General Manager, Creekside Resources to Terasen Gas: Bruce Falstead Aboriginal Relations Manager, Due diligence funding outlined and agreeded to. Page 1 of 7

3 22-Jul-04 Lil' Wat First Nation to Justin Wilson, General Manager, Creekside Request for date for a presentation by Doug Stout VP ResourcesTerasen from Terasen Gas: Bruce Falstead Terasen Gas and clarification of invoicing to Terasen Gas., 24-Sep Oct-04 Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Creekside Resources, Suite Park Justin Wilson, Councilor Ruth Dick, Terasen Gas: Bruce Royal West Falstead, Cynthia Des Brisay Vancouver Business Development and Gareth Jones Manager, Project Assessment Presentation of the Whistler Lateral Pipeline by Cynthia Des Brisay and Gareth Jones Met Hotel Vancouver Whistler Lateral Pipeline and Multi Utility Opportunities 20-Oct Oct Jan-05 Terasen Utility Services Inc. John Sainas, P. Eng. Regional Manager, Business Development Lil' Wat First Nation Spoke on the phone with Justin Wilson, General Manager, Creekside Resources Mount Currie The purpose of the meeting was to discuss a proposed Whistler Lateral Pipeline, tour Mount Currie and scope out Multi Utility Opportunities Mount Currie Justin met with Chief and Council and will advise Terasen o next steps. Met Hotel Vancouver Whistler Lateral Pipeline and Multi Utility Opportunities 22-Apr May-05 Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Creekside Resources, Suite Park, Royal West Gareth Jones Manager, Project Assessment Vancouver Met Hotel Vancouver Creekside letter of agreement finished after this meeting. Gareth meet with Lyle Leo and Justin Wilson. Identify team from Terasen, time frame for negotiations with milestones, no cost to the nation. Send a letter to Lyle as lead negotiatior Lil'wat Nation Gareth Jones discussed next steps Page 2 of 7

4 28-Jun-05 Lil' Wat First Nation Chief Leonard Andrew and Council Mount Currie Indian Mount Currie Signing of of Intent Band, Terasen Gas: Gareth Jones Manager, Project Assessment Bruce Falstead, Dietz Kellmann, Director, Corporate Development, Terasen Inc., a subsidiary of Kinder Morgan Inc 25-Jul-05 Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Creekside Resources, Mount Currie Meeting to discuss next steps, Gareth Jones Manager, Project Assessment 03-Aug Aug-05 Greg Mount Currie Tour Mount Currie lands Biladi, President Lil' Wat Business Corporations, Troy Biladi Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Maxine Bruce 1111 West Georgia Whistler Lateral Pipeline and Multi Utility Opportunities. Planning Dept. Gary Yabsley Ratchiff & Company, Terasen Measurable opputnites with a timeline, build a plan, build a Gas: Bruce Falstead schedule. What is Terasen seeking in an MOU. 08-Dec-05 Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Gary Yabsley Ratchiff & Company, Justin Wilson, General Manager, Creekside Resources, Greg Biladi, President Lil' Wat Business Corporations. Terasen Gas: Gareth Jones Manager, Project Assessment Bruce Falstead Aboriginal Relations Manager, Dietz Kellmann, Director, Corporate Development, Terasen Inc., a subsidiary of Kinder Morgan Inc 13-Dec-05 Lil' Wat First Nation Terasen Gas Whistler Resource Plan mailed 1111 West Georgia Whistler Lateral Pipeline and Multi Utility Opportunities Page 3 of 7

5 18-Jan-06 Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Gary Yabsley 1111 West Georgia Whistler Lateral Pipeline and Multi Utility Opportunities Ratchiff & Company, Justin Wilson, General Manager, Creekside Resources, Terasen Gas: Gareth Jones Manager, Project Assessment Bruce Falstead Aboriginal Relations Manager, Dietz Kellmann, Director, Corporate Development, Terasen Inc., a subsidiary of Kinder Morgan Inc 02-Feb-06 Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Justin Wilson, North Vancouver Whistler Lateral Pipeline and Multi Utility Opportunities General Manager, Creekside Resources, Greg Biladi, President Lil' Wat Business Corporations Terasen Gas: Gareth Jones Manager, Project Assessment Bruce Falstead, Dietz Kellmann, Director, Corporate Development, Terasen Inc., a subsidiary of Kinder Morgan Inc 08-Feb-06 Lil' Wat First Nation Lyle J.R. Leo Chief Executive Officer, Justin Wilson, Mount Currie Whistler Lateral Pipeline and Multi Utility Opportunities General Manager, Creekside Resources, Greg Biladi, President Lil' Wat Business Corporations Terasen: Terasen Gas: Gareth Jones Manager, Project Assessment Bruce Falstead, Dietz Kellmann, Director, Corporate Development, Terasen Inc., a subsidiary of Kinder Morgan Inc Page 4 of 7

6 Terasen Gas's Whistler Pipeline Project SUMMARY MEETINGS AND COMMUNICATIONS Squamish Nation Meetings conducted Date 17-Dec-03 Squamish Nation to Chief Gibby Jacob from Bruce Falstead Aboriginal Intoducing Terasen's proposed Squamish Compressor Relations Manager Station 28-Jan-04 Squamish Nation Squamish Nation: Chief Bill Williams, Councillor Dale Harry Terasen Gas: Bruce Falstead Aboriginal Relations Manager, Art Swenson Property Representative 03-Feb-04 Squamish Nation to Chief Gibby Jacob from Bruce Falstead Aboriginal Relations Manager 140 Lonsdale Ave North Vancouver, BC. Presented plans for a proposed compressor station in Squamish as well as a proposed Whistler Lateral Pipeline and/or the possibility of propane expansion in Whistler. Protocol was explained and Terasen was instructed to send a letter to Chief Gibby Jacob Formal request to meeting to discuss Terasen Gas projects as recommended by Chief Bill Williams in January 28th, 2004 meeting 19-Feb-04 Squamish Nation Spoke on the phone with Chief Gibby Jacob Phone call Returned phone call following up Feb letter. Recommended a letter with a request to proceed in the consultation around the two Terasen Gas's proposed projects 09-Mar-04 Squamish Nation to Chief Gibby Jacob from Bruce Falstead Aboriginal Relations Manager 09-Mar-04 Squamish Nation Squamish Nation Councillors: Ann (Syexwaliya/See Qwalia) Squamish Nation 320 Whonnock, Byron Joseph, Dennis Joseph, Randall Lewis Seymour Blvd. North, Vancouver Art Swenson Property Representative Formal request for direction as how to proceed in the consultation around the two Terasen Gas's proposed projects: Compressor Station and Whistler pipeline project. Offer to negotiate compensation for Squamish Nation staff time. Discussed a proposed compressor station in Squamish as well as a proposed Whistler Lateral Pipeline and the possibility of propane expansion in Whistler. Page 5 of 7

7 14-Jun-04 Squamish Nation Chief Ian Campbell, Lands Claims Officer Squamish Nation, Squamish Nation 320 Whistler Lateral Pipeline as well as a proposed compressor Gregory J. McDade, Q.C. Managing Partner Ratcliff & Seymour Blvd. North station in Squamish. ed Terasen's presentation to Company Terasen Gas: Bruce Falstead Aboriginal Relations Vancouver RMOW Manager, Art Swenson Property Representative 10-Jun-04 Squamish Nation Message to Councilor Randall Lewis from Bruce Falstead 26-Jul-04 Squamish Nation Chief Gibby Jacob, Calvin Helin Business Consultant, Terasen Utility Services Inc. John Sainas, P. Eng. Regional Manager, Business Development voice message Requesting some informaton about meeting with the Squamish Nation Resource Committee. Cannery Restaurant Whistler Lateral Pipeline as well as Terasen Utility Services's interest in Britannia Mines and Multi Utility Opportunities. 18-Oct-04 Squamish Nation to Chief Ian Campbell from Bruce Falstead 16-Nov-04 Squamish Nation Squamish Nation: Chief Ian Campbell, Lands Claims Officer, Alan DeLisle Land Consultant, Art Swenson Property Representative 12-Dec-04 Squamish Nation from Chief Ian Campbell to Bruce Falstead 23-Mar-05 Squamish Nation Squamish Nation: Chief Bill Williams, Chief Ian Campbell, Melanie Rapada,Tom Butler, Accountant Squamish Nation 320 Seymour Blvd. North Vancouver Squamish Nation 320 Seymour Blvd. North Vancouver 25-Apr-05 Squamish Nation ed message to Chief Ian Campbell from Bruce Falstead message with attachment was an offer of funding to the Squamish Nation to assist with the staff and legal expense to engage in discussions and a review of Terasens project. Whistler Lateral Pipeline as well as a Squamish Nations proposed Mamquam Valley Squamish. Gave Chief Campbell a copy of Resource Plan Acknowledgement of Terasen's letter of Oct 18, 2004 with an offer of funding, and that Squamish Nation will engage in discussions and a review of the project. Notification that Chief Campbell is primary contact for Terasen. Squamish Nation will require that the capacity funding of $36, 500 offered by Terasen in the October 18th 2004 letter be deposited with Squamish Nation and as the funds are expended monthly statements will be provided. Notification of an agreement with the Resort Municipality of Whistler. Request for a meeting. Page 6 of 7

8 03-May-05 Squamish Nation ed message to Chief Ian Campbell from Bruce Falstead message with Resent the April 25th 2005 notification of an agreement attachment with the Resort Municipality of Whistler. Request for a meeting. 14-Jun-05 Squamish Nation ed message to Chief Ian Campbell from Bruce Falstead message Requesting some informaton about any progress at Squamish Nation toward taking some next steps with Terasen 02-Aug-05 Squamish Nation ed message to Chief Ian Campbell from Bruce Falstead and voice mail Informing Squamish Nation about Kinder Morgan proposed message purchase. 21-Sep-05 Squamish Nation Message to Chief Ian Campbell from Bruce Falstead Voice message 28-Sep-05 Squamish Nation Message to Chief Ian Campbell from Bruce Falstead Voice message 24-Oct-05 Squamish Nation Squamish Nation: Chief Ian Campbell 4567 Lougheed Highway, Burnaby 07-Nov-05 Squamish Nation to Chief Ian Campbell from Bruce Falstead 18-Nov-05 Squamish Nation Squamish Nation: Chief Bill Williams, Alan DeLisle Land Consultant, Amy Hennessy Community Relations Manager Squamish Nation 320 Seymour Blvd. North Vancouver Requesting some informaton about any progress at Squamish Nation toward taking some next steps with Terasen Inquiry if there was any progress at Squamish Nation toward taking some next steps with Terasen Whistler Pipeline Project s proposed aerial crossings and next steps to move forward. Discussed work that needed to be done and by whom. Next meeting with Squamish Nation to be after Dec 2005 band elections. Recapped October 24th meeting outlined next steps Whistler Lateral Pipeline as well as a Squamish Nations proposed Mamquam Valley Squamish. Page 7 of 7

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