Offsetting in Caribou Range:

The NGTL Experience

22 February 2017

2

Introduction

• NGTL has several pipeline projects conditioned by NEB to implement caribou

habitat restoration measures and provide offsets

• To our knowledge, NGTL is the only company that has been through the

implementation process

• Restoration measures are implemented after construction and are required to

be monitored for 15+ years.

3

Pipeline Planning Process

Caribou Offset Development Timeline

NEB Certificate

Conditions

Preliminary

CHRP

Approved

Preliminary

OMP

Approved

NEB InspectionFinal CHRP

Approved

Final OMP

ApprovedCHROMMP

Approved

Submit

Preliminary

CHRP

Begin Construction

Submit

Preliminary

OMP

Complete Construction

Implement

RestorationSubmit

Final CHRP

Submit Final

OMP

Implement Offsets

Submit

CHROMMP

Begin Monitoring

5

Background – Projects requiring offsets

Project Construction Restoration Offsets Monitoring

Northwest

Mainline 2012 to 2013 2014 2014 2016

Leismer 2012 to 2013 2014 2014 2016

Chinchaga 2014 to 2015 2015 2015 2016

Liege-Thornbury 2015 to 2016 2017 2017 2018

System Expansion 2017 2018 2017 and 2018 2019

6

Background – Documentation

• Issues with condition compliance timing and

logistics of implementation

• Unsure of restoration expectations until filings

were approved or rejected

• Received conditions in 2012, whereby

construction was planned, provincial permits

received

• Multiple projects overlapping with filings –

leapfrog effect

• Monitoring plan rejected, resubmitted and

then approved with an condition of 15 years

of monitoring (costs had not been captured by

the project in planning stages)

7

Background – Initial Timing

• Conditions received after construction

planning and budgeting (no minimal

disturbance used)

• Too late to apply for a timber salvage

waiver for rollback

• Too late to order appropriate seedlings

once plan was approved

• Too late to negotiate protected areas

for offsets so they were established on

other existing ROW in caribou range

• Too late to collect baseline remote

camera data collected for access

control monitoring

8

Background - Learnings

• Planning and budgeting occurs upfront

for restoration materials, future offsets

and monitoring

• Filings are generated in-house for

consistency

• Remote cameras are installed one year

prior to construction

• Streamlined filing schedule developed to

reduce overlapping filings

• Collaboration agreement in place with

the Province for protected offset areas

• Sharing lessons learned with the NEB

9

Offset Measures Plan – Process

1. Restore habitat on the pipeline right of way

2. Quantify remaining disturbance after restoration (direct, indirect)

3. Apply risk multiplier (temporal, delivery)

4. Calculate the Initial Offset Value

∑ (residual direct disturbance + indirect disturbance + risk

multipliers)

5. Select offset location and measures off right of way

in priority range, limited 3rd party managed access, afforded long-

term protection, synergies for monitoring or partnering opportunities

6. Apply risk multipliers (temporal, delivery, spatial)

7. Schedule implementation outside of timing restrictions

10

Offset Measures Plan – Multipliers

Delivery

Effectiveness and achievability of each restoration measure

• certainty that the technique will work

• Greater uncertainty – higher multiplier

11

Offset Measures Plan – Multipliers

Temporal

Time it takes each measure to be fully effective

• immediate, short-term, long-term

• Greater lag – higher multiplier

12

Offset Measures Plan – Multipliers

Spatial

Proximity of offset measures to the affected caribou habitat

• location of offsets in relation to the project

• Greater distance to offset area – higher multiplier

13

Collaboration with AEP

• Offsets must be protected in

perpetuity therefore must be

prioritized by the Alberta

Environment and Parks (AEP)

• Under a formal agreement with

TransCanada

• Support a seasonal ecologist

program

• ALPac completes restoration in

designated offset areas

• Monitoring is coordinated with

other provincial programs

14

Consultation with Environment Canada

• Supportive of NGTL plans as submitted to the NEB

• At times differed from the direction of AEP

• Prefers offsets in the range that the disturbance took place however

this does not always coincide with priority areas

• Has stated a 4 to 1 ratio being preferable to maintain no net loss

instead of the NGTL multiplier model

15

Offset Areas

• Dillon Wildlands 54 ha (high priority)

• Legacy seismic line restoration

• Planting, mounding, rollback, tree-felling

• Reducing access (low access in this park)

16

Dillon Monitoring Results

• One instance of human access on an untreated line (over 1 year)

• Shrub layer developed up to 2 m

• Dense regrowth

• No invasive plant species or weeds

• High survival of planted seedlings

• Wildlife observations through remote camera

17

Current Offset Plans

Future estimated offsets:

Liege -Thornbury (40 ha)

Liege - Pelican (70 ha)

Boundary (40 ha)

Agreement with AEP:

• Complete restoration in the Dillon

Wildlands

• Planning for offsets in Stony

Mountain Park

ALPac completes restoration in offset

areas that fall within their FMA

• Conducts planting and access

control

18

Future Offset Areas

Stony Mountain

Dillon Wildlands (Area 5)

19

20

Monitoring Program

• A Monitoring Program is required following the implementation of

restoration measures

• Years 1, 3, 5, 10 and 15

• The program will continue with monitoring and reporting to the regulator on

years 3, 5, 10 and 15.

• Year 5, 10, and 15 there will be a comprehensive review of the restoration

results (to ensure we are on track for success)

• Includes permanent vegetation monitoring plots

• Remote cameras (measuring access controls)

• Fly-over

• Imagery

21

Challenges and Lessons Learned

External

• Recreational access in wildlands is not ideal

• Few opportunities to collaborate with industrial players as business needs

are not aligned

• Open communication with our regulators and resource managers (NEB

and AEP) is essential

22

Challenges and Lessons Learned

Internal

• Capital costs, “for real” factor

• Planning and coordination work in-house to maintain

consistency in approach and methods

• Internal data sharing with operations

23

24

Jennifer Barker

Environmental Advisor

Environment, Land and Indigenous Relations

jennifer_barker@transcanada.com