Date of Handout: 3800, 525 8th Avenue S.W. Calgary, Alberta T2P 1G1 File #: Project Specific Information Package Simonette Expansion Pipeline Project Pembina Pipeline Corporation ( Pembina ) plans to make an application for approval to construct and operate the Simonette Expansion Pipeline Project ( the Project ). The Project consists of the construction of approximately 60 km of up to 20-inch diameter pipeline to loop the existing Pembina Simonette to Fox Creek Pipeline from a tie-in point located approximately at LSD 14-05-63-25 W5M to a tie-in point located at LSD 08-36-62-20 W5M at the existing Pembina Fox Creek Pump Station. The Project is needed to connect an existing and future supply of high vapour pressure ( HVP ) and low vapour pressure ( LVP ) hydrocarbon liquids in the Simonette area of Alberta to existing processing facilities. The Project will be under the jurisdiction of the Alberta Energy Regulator ( AER ). As mandated, AER Directive 056 Energy Development Applications and Schedules requires parties whose rights may be directly and/or adversely affected by the nature and extent of the proposed Project are 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 contact listed at the end of this information package. AER Category and Type The Simonette 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 in LSD 14-05-63-25 W5M and will terminate at a tie-in point in LSD 08-36-62-20 W5M at the existing Pembina Fox Creek Pump Station. A map showing the Project location is attached. Page 1 of 6
Project Description The Project consists of the addition of approximately 60 km of up to 20-inch diameter pipeline to loop the existing Simonette Pipeline from a tie-in point located at LSD 14-05-63-25 W5M to a tie-in point in LSD 08-36-62-20 W5M at the existing Pembina Fox Creek Pump Station. The Project will also require a number of abovegrade pipeline risers within the existing right-of-way. The pipeline will be designed to transport HVP and LVP hydrocarbon liquids. HVP and LVP hydrocarbon liquids are a mix of ethane/ethylene, propane/propylene, butane/butylene, condensate and crude oil, which are the feedstock to numerous value-added products in Alberta and in the North American market. An HVP pipeline transports hydrocarbons or hydrocarbon mixtures in the liquid or quasi-liquid state with a vapour pressure greater than 110 kilopascals ( kpa ) absolute at 38 C. An LVP pipeline transports hydrocarbons or hydrocarbon mixtures in the liquid or quasi-liquid state with a vapour pressure of less than 110 kpa absolute at 38 C. Pembina is currently in the final stages of 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 an existing supply of HVP and LVP hydrocarbon liquids in the Simonette/Kaybob area of Alberta to existing processing facilities. Currently, Pembina has only incremental capacity available on the existing Peace Pipeline System from Fox Creek to the Edmonton/Fort Saskatchewan/Redwater area. The Project will provide producers in the Simonette/Kaybob area with pipeline connectivity to transport volumes to Fox Creek and 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 safer means of transporting volumes to markets. In the future, the Project will be needed to transport new volumes of HVP and LVP liquid hydrocarbons, as the supply in the Simonette area will likely expand. Substance Type The product transported in the pipeline will include HVP and LVP hydrocarbon liquids containing a mix of ethane/ethylene, propane/propylene, butane/butylene, condensate and crude oil. H 2 S There will be no H 2 S in the product transported on the pipeline. Page 2 of 6
Project Schedule and Duration After receipt of all applicable regulatory approvals, Pembina plans to initiate clearing and construction of the Project sometime between Q4 2013 and Q1 2014. Pembina estimates the Project will be in operation starting Q3/Q4 2014. 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 and is 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 at an early stage 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, British Columbia and Ontario One-Call systems. Pembina continues to enhance its public awareness program by regularly meeting with local first-responders and visiting with landowners. Page 3 of 6
Emergency Response Plan 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 site-specific Emergency Response Plan ( ERP ) 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 Planning and Management. Emergency Response Planning Zone Pembina will adopt an Emergency Planning Zone ( EPZ ) of 2100 m for this Project measured from either side of the centre line of the pipeline based on the results of a dispersion model for a 20-inch diameter pipeline. If Pembina decides to reduce the diameter of the pipeline as a result of the engineering design, the EPZ will also be reduced. 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. With respect to the Project, the setback distance is the pipeline right-of-way. 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 Simonette to Fox Creek Pipeline. 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
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 1-800-360-4706. 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 contact one of the Pembina representatives listed in the Contacts section below. In addition, the AER has developed additional information about energy development in Alberta. As per AER Directive 056 please find enclosed a copy of the Letter from the Chief Executive Officer of the AER. Upon request, Pembina would be pleased to provide copies of: AER brochure Understanding Oil and Gas Development in Alberta Proposed Oil and Gas Development: A Landowner guide Expressing Your Concerns How to File a Statement of Concern About 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. AER CALGARY MAIN OFFICE To call toll-free, dial 310-0000, and then the Calgary number, with area code 403-297-8311 Alberta Energy Regulator Suite 1000, 250-5 th Street SW Calgary Alberta, T2P 0R4 Toll-free1-855-297-8311 E-mail: inquiries@aer.ca Website: www.aer.ca Page 5 of 6
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 1-800-360-4706. Please note this number is for emergencies only. Surface Landman, Chad Dalke directly at (403) 817-7146 Aboriginal Relations, Ray Lenstra directly at (403) 231-7422 Pembina 24-Hour Emergency Number: 1-800-360-4706 Page 6 of 6