Pipeline Performance: Raising the Bar

Jim Donihee, OMM CD

March 27th, 2014

Outline

About CEPA

Pipeline Performance – Done & Doing

CEPA Integrity First - Cornerstone for the Future

CEPA Members

legend CEPA member pipelines proposed pipelines non-member pipelines sedimentary basin

Liquids Pipelines

Canadian Crude Oil Facts* Production: 3.2 million barrels/day Exports: 2.3 million barrels/day Value of Exports: $73.0 billion *2012

Natural Gas Pipelines

legend CEPA member pipelines non-member pipelines existing LNG Terminal sedimentary basin

Canadian Natural Gas Facts* Production: 13.9 billion cubic feet/day

Exports: 8.4 billion cubic feet/day Value of Exports: $8.7 billion *2012

CEPA Strategic Framework

Vision A Safe, Socially and Environmentally Sustainable Energy Pipeline

Industry for Canadians.

CEPA Strategic Framework

Vision A Safe, Socially and Environmentally Sustainable Energy Pipeline Industry for

Canadians.

Mission

Continually enhance the operating excellence, business environment and recognized responsibility of the Canadian energy transmission pipeline industry

through leadership and credible engagement between member companies, governments, the public and stakeholders

Value Proposition: What CEPA Does

PERFORMANCE: • Industry-wide initiatives • CEPA Integrity First

• Develop & Implement Best Practices

• Focused research • Enhance industry expertise • Develop industry standards • Develop, promote and implement

policies

Performance X (Communications & Engagement) = Privilege to Operate

COMMUNICATIONS: • Communication campaign • Partnership and stakeholder

engagement • Government Relations (fed, prov, munc)

• International reach (AOPL, API, INGAA)

• Catalyst to lead & intercede • Trusted, credible source

Pipeline Performance Done & Doing

CEPA Board / Governance Structure

CEPA Board (12 Member Companies)

Empowered Decision Makers

Exec Committee (Past, Current, Incoming, CEO)

Audit Committee

Integrity First Steering Committee

(Exec Committee, +3)

Exec Operations Standing Committee

(SVP / VPs)

Exec Business Environment Standing Committee

(SVP / VPs)

Leaders’ Forum

External Advisory Panel

Damage Prevention

Health and Safety

Emergency Security

Management Environment

Pipeline Integrity

Aboriginal Affairs

Climate Change

Land Issues Property

Tax Regulatory

Policy

Complete rework of Governance Structures

Increased Accountability

Focused on Performance & Execution

CEPA Board / Governance Structure

CEPA Board (12 Member Companies)

Empowered Decision Makers

Exec Committee (Past, Current, Incoming, CEO)

Audit Committee

Integrity First Steering Committee

(Exec Committee, +4)

Exec Operations Standing Committee

(SVP / VPs)

Exec Business Environment Standing Committee

(SVP / VPs)

Leaders’ Forum

External Advisory Panel

Damage Prevention

Health and Safety

Emergency Security

Management Environment

Pipeline Integrity

Aboriginal Affairs

Climate Change

Land Issues Property

Tax Regulatory

Policy

Key Changes in Governance Structures

Leaders’ Forum;

External Advisory Panel; and

Integrity First Steering Committee

CEPA Board Task Forces

Emergency Management – Task Force

Mutual Emergency Aid Agreement

ICS Confirmation – Interoperability

BC Land Based Spill Response

Prevention Technology – Task Force

Technology Roadmap – now positioned to focus

CEPA Integrity First

CEPA Integrity First

The CEPA Board is committed to advance CEPA Integrity First® as a strategic association-level program to:

Drive performance improvement;

Demonstrate accountability for Performance Improvement;

Directly engage interested stakeholders; and

Reinforce our Privilege to Operate.

Priority Issues

Safety Ensuring safe communities and workplaces

PRIORITY ISSUES • Employee

safety • Damage

prevention • Emergency

management • Pipeline

integrity • Control room

management

The Environment Minimizing the impact of our operations on the environment and biodiversity throughout every phase of pipeline operations (design, construction, operations and shutdown)

PRIORITY ISSUES • Land

management • Air emissions • Climate change • Water impacts • Wildlife • Noise

Socio-Economic Benefits Creating lasting social and economic benefits to communities, regions and countries where we operate

PRIORITY ISSUES • Land use and

access • Economic

benefits • Aboriginal

relations • Workforce

Pipeline performance: Ensure pipelines are designed, constructed and operated reliably; well-maintained; and closely monitored.

Essential Factors

CEPA Integrity First

Materiality Analysis – focused priority areas

Industry Recommended Practices (IRPs)

Management Systems, Self-Assessment, and 3rd Parties

Transparency and Reporting

Current Progress

Practices completed / underway:

Pipeline Integrity & Emergency Management

Control Room Management

Pipeline Watercourse Management

Land Agent Code of Conduct

Major decisions in 2014:

Performance Measurement & Reporting

Follow-on Guidelines

ex. Water Course Crossing

Initial Success & Traction

BC / AB Deputy Ministers Working Group Report

Prepared for Premiers Christy Clark and Alison Redford December 2013

Examples of Ongoing Initiatives of Responsible Development and Public Engagement: CEPA Integrity First - a Canadian Energy Pipeline Association initiative to improve pipeline safety and environmental and social performance by sharing best practices and applying advanced technology throughout industry.

Excerpt from Report -

Fulfilling Our Value to Our Members

Full Members: Access Pipeline Inc. Alliance Pipeline Ltd. ATCO Pipelines Enbridge Pipelines Inc. Inter Pipeline Ltd. Kinder Morgan Canada Pembina Pipeline Corporation Plains Midstream Canada Spectra Energy Transmission TransCanada PipeLines Ltd. TransGas Limited Trans-Northern Pipelines Inc.

Technical Members: Emera Brunswick Pipeline FortisBC Inc. Maritimes & Northeast

Pipeline Portland-Montreal Pipe Line Suncor Energy Logistics

Corporation

CEPA Foundation

Our Mission: To bring together the entire Canadian energy

pipeline industry to ensure excellence in our performance.

Focused on suppliers and service providers

80+ Companies engaged in moving forward

CEPA Members Commitment – Safety Culture

We are committed to advancing a safety culture throughout our industry based on a strong foundation of leadership and continual improvement leading to zero incidents.

Pipeline Performance: Raising the Bar

Questions

Jim Donihee, OMM, CD