CANADA INC.

KINDER MORGAN CANADA OVERVIEW

Over 50 Years of Pipeline Operation Experience •

Transports liquid petroleum products from oil •producing areas to markets (e.g., conventional and oil sands crude, gasoline, diesel, etc.)

Operates two major pipeline systems•

Headquartered in Calgary•

Offices throughout B.C. & Alberta x

Over 400 employees x

www.kindermorgan.com/business/canada

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Gainford

Edmonton

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Suffield

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Chip Lake

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Kingsvale

Wildhorse

Finn Creek

Stump Lake

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Fish Creek

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Express PipelineTrans Mountain Oil Pipe Line CorporationTrans Mountain Pipe Line Company

KMC PIPELINE SYSTEMS

0 75 150 22537.5Kms

1:6,000,000

CANADA INC.

TRANS MOUNTAIN PIPELINE SYSTEM OVERVIEW

Safely and efficiently transports petroleum products •from Alberta’s oil fields through some of the most rugged and mountainous terrain in the world to the interior British Columbia and West Coast markets

Supplies over 90% of the petroleum products used •in B.C.’s Lower Mainland

1• ,150 km pipeline

20 pump stations•

Capacity - 260,000 barrels per day (bpd)•

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Swift Current

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0 40 80 12020Kilometers

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Corridor Pipe Line

Express Pipe Line

Jet Fuel Pipe Line

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Provincial Park

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Kamloops

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McMurphy

Blue River

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Gainford Edmonton

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Cranbrook

Salmon Arm

Kelowna

Squamish

Powell River

Nanaimo

Williams Lake

Prince George

Calgary

Jasper

Albreda

Stony Plain

Chip Lake

Hinton

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Blackpool

Stump Lake

WahleachPort Kells

Finn Creek

Jackman HillValemount

CANADA INC.

TMX - ANCHOR LOOP PROJECT OVERVIEW

158 km looping (twinning) of existing system•

Using both 30-inch and 36-inch diameter pipeline•

Building two new pump stations•

Approximate project cost $443M•

Adding 40,000 barrels per day (bpd) incremental •capacity by November 2008 for a total capacity of 300,000 bpd

Environmental reclamation & restoration through •2009

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Crow Lake

Muskeg River

Hangingstone

Kitimat

Saskatoon

Campbell River

Cold Lake

Prince Albert

Grande Prairie

Terrace

Brooks

North Battleford

Swift Current

Fort St. John

Dawson Creek

Lloydminster (Part)

Saskatoon

0 40 80 12020Kilometers

1:2,000,000

KMI/KMC Pipeline SystemsLegend

Trans Mountain Pipe Line

Corridor Pipe Line

Express Pipe Line

Jet Fuel Pipe Line

Expressway

Primary Highway

b Pump Stations

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!\ Provincial Capital

National Parks

Provincial Park

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BurnabyWestridge

Cranbrook

Salmon Arm

Kelowna

Squamish

Powell River

Nanaimo

Williams Lake

Prince George

Calgary

Chappel

Jasper

Port Kells

CANADA INC.

STAKEHOLDER & ABORIGINAL ENGAGEMENT

One of Kinder Morgan Canada’s project goals is to commit to consulting with stakeholders and aboriginal communities in an open, informative, and interactive manner that allows us to identify and consider stakeholder and aboriginal views during project planning and development activities.

For the Anchor Loop project, Kinder Morgan Canada conducted a comprehensive and intensive public consultation program with all interested parties (e.g, environmental non-government groups, local aboriginal communities, etc.), which began in the spring of 2004 and continues today.

The engagement program was established to provide stakeholders and aboriginal communities with an opportunity to become informed about and engaged with the Anchor Loop project, and was closely intertwined with the Environmental Assessment process.

Local aboriginal communities participated in environmental field studies, sharing of traditional land use knowledge, and will participate in economic opportunities, such as clearing of the right-of-way.

Kinder Morgan Canada continues to work with individuals, environmental organizations, and local aboriginal communities to manage ongoing issues and concerns.

CANADA INC.

CANADA INC.

COMMITTMENT TO SAFETY & THE ENVIRONMENT

Our Policy

Kinder Morgan Canada is committed to conducting its business in a safe and environmentally responsible manner. We comply with all applicable laws and regulations, company policies and industry codes of practice and require the same of our contractors.

Mandatory Site Orientations•

Each worker must complete a x

Safety Orientation Training and Environmental Orientation prior to commencing work on the project

Other Safety & Environmental •Measures

All workers require personal protective equipment (PPE) x

Daily toolbox meetings and weekly safety meetings x

Job Specific Hazard Analysis, as required x

Regular inspections and program audits x

Project specific Emergency Response Program will be in place x

CANADA INC.

CANADA INC.

ENVIRONMENTAL PROTECTION & RESTORATION PLANNING I

Special construction and environmental mitigation measures in recognition of crossing Jasper National Park and Mount Robson Provincial Park

Planning Completed: Jan 2004 to Jun 2007Comprehensive, multi-seasonal environmental resource studies.•

Extensive recording of cultural resources within the Yellowhead Pass •National Historic Site.

Complete record and understanding of the location and extent of •environmental and cultural resources along the Anchor Loop corridor.

“State of Art” Environmental Protection and Restoration Plan.•

Native seed, forbs and shrubs have been collected. Propagation •of these seeds is currently being undertaken in nurseries and greenhouses.

Pre-Construction: Jun 2007 to Jul 2007All environmental and cultural resource sites along the Anchor Loop •corridor will be staked, flagged and/or fenced to avoid impacts to these sites.

Where environmental and cultural sites cannot be avoided, mitigative •strategies outlined in the Environmental Protection Plan will be implemented to minimize impacts to these resources.

All workers and visitors on the Anchor Loop will be required to •participate in Environmental Awareness Training.

CANADA INC.

CANADA INC.

ENVIRONMENTAL PROTECTION & RESTORATION PLANNING II

Construction: Aug 2007 to Mar 2008 Jun 2008 to Nov 2008

Comprehensive commitment tracking tool developed to track over •1,500 commitments made to regulators. Tracking tool will be kept onsite during construction and readily available to all key project personnel responsible for compliance.

Four Environmental Inspectors will be onsite during construction to •ensure all the environmental protection measures, permit conditions, standards and procedures are followed.

Aboriginal monitors, third party inspectors and government inspectors •will also be onsite to ensure compliance with these environmental protection measures and all conditions of approval.

Restoration: Apr 2008 to Nov 2009Restoration of the right-of-way will commence immediately following •construction.

Topsoil will be replaced and disturbed areas will be revegetated with •native grasses, forbs and trees that have been propagated and or sought from suppliers throughout North America to ensure the highest quality seed, with little to no potential for weed contamination.

Watercourses and unique landscapes will be restored using a •combination of bio-engineering techniques specifically designed for site-specific areas.

CANADA INC.

CANADA INC.

SPECIAL ENVIRONMENTAL CONSIDERATIONS

Kinder Morgan Canada has agreed to implement a number of special measures in recognition of crossing Jasper National Park and Mount Robson Provincial Park, such as:

Construction of a larger than needed pipeline to anticipate any •future volumes.

Five-year post construction monitoring plans.•

Restore previously disturbed areas (e.g., gravel pits) with the •addition of soil amendments, native grasses and shrubs and trees to set these areas on a trajectory towards a natural range of variability.

Support Collaborative Agreements on Non-Native Plant •Control in the Parks.

Replace several road culverts that are potential barriers to •fish and/or other aquatic animals with single span bridges at waterbodies.

Repair riparian vegetation, by installing step pool structures, •cribwalls, and boulder clusters to improve fish habitat.

Assist in developing an interpretation program for the •Yellowhead Pass National Historic Site.

CANADA INC.

CANADA INC.

ROAD & BRIDGE CLOSURES

Jasper National ParkClosures:

Celestine Road from July 2007 to April 2008•

Wynd Road from August 2007 to December 2007•

Decoigne Bridge (existing) will be repaired and closed for •approximately a week in July 2007. A temporary 100-ton bridge will be installed overtop of the existing bridge.

Traffic Control:

Specific traffic control will be deployed when working within •close proximity of public roadways and railway crossings.

intermittent traffic control from August 2007 to April 2008•

Mount Robson Provincial ParkClosures:

Emperor Bridge over the Fraser River from mid-September 2007 •to end of October 2007. A new bridge is being installed.

Traffic Control:

Specific traffic control will be deployed when working within •close proximity of public roadways and railway crossings.

intermittent traffic control from September 2007 to December •2007 and again from June 2008 to November 2008

CANADA INC.

CANADA INC.

PRE-CONSTRUCTION STEPS FOR PIPELINE CONSTRUCTION

February to August 2007Review pipeline footprint•

March to June 2007Flagging right-of-way, temporary work spaces and •environmentally sensitive sites

June to August 2007Preparing main yard site•

Building pipe stockpile sites•

Arrival of contractors equipment and supplies•

Transport pipe to project area where it is stockpiled•

Jasper: June 2007 to July 2007 x

Robson: March 2008 to April 2008 x

Installation of 100-ton bridge over existing Decoigne Bridge•

Repairs to surface of Snaring River Bridge•

Upgrade of Emperor Bridge on Hargreaves road•

Installation of CN vehicle crossings and approaches•

Installation of project signage•

Orientation of contractor and inspection personnel•

CANADA INC.

CANADA INC.

PIPELINE CONSTRUCTION STEPS

Step 1: Clearing the Right-of-Way & Access Road Building/Upgrading Activity Type:

Vegetation, such as trees or brush, is removed from the pipeline •right-of-way

Building or upgrading access roads, installing bridges•

Length of activity*:

16 weeks•

Approximate start time*:

Jasper: Aug 2007 to Oct 2007•

Robson: Sept 2007 to Dec 2007•

Type of equipment:

Various sized bull dozers•

Grapple skidders•

Salvage forwarders•

Rock trucks•

Excavators•

Faller bunchers•

Brush hogs•

Chippers/grinders•

* Specific start and completion dates may change due to unforeseen circumstances.

CANADA INC.

PIPELINE CONSTRUCTION STEPS

Step 2: Preparing the Right-of-Way & Rock DitchActivity Type:

Right-of-way (ROW) is graded to create a safe and level •working area. All duff and/or topsoil is removed and stored separately to ensure that it will be available for restoration of the ROW

Length of activity*:

Five to six months•

Approximate start time*:

Jasper: Aug 2007 to Jan 2008•

Robson: Jun 2008 to Sept 2008•

Type of equipment:

Various sized bull dozers•

Rock drills•

Rock trucks•

Graders•

Excavators•

*Specific start and completion dates may change due to unforeseen circumstances.

CANADA INC.

CANADA INC.

Type of equipment:

Pipe trucks•

Booms•

Welding equipment•

Coating equipment•

*Specific start and completion dates may

change due to unforeseen circumstances.

PIPELINE CONSTRUCTION STEPS

Step 3: Stringing, Bending, Welding, Coating Pipeline

Activity Type:

Lengths of pipe are transported by truck from the stockpile •sites to the right-of-way.

The pipe will be surveyed, engineered, •and then bent to follow the contours of the land.

The pipe is then welded together into •sections and a protective coating is applied to the welds, both the welds and the pipeline coating will be inspected prior to being lowered into the trench.

Length of activity*:

Occurs over a six to eight month •period

Approximate start time*:

Jasper: Sept 2007 to Apr 2008•

Robson: Jul 2008 to Nov 2008•

CANADA INC.

PIPELINE CONSTRUCTION STEPS

Step 4: Trenching, Lowering, and BackfillActivity Type:

A trench will be excavated to a minimum 0.85m depth of cover.•

The pipe will be lowered into the trench using side boom •tractors.

The trench will be selectively backfilled to ensure protection of •the pipe.

Length of activity*:

Occurs over a six to eight month •period

Approximate start time*:

Jasper: Sept 2007 to Apr 2008•

Robson: Jul 2008 to Nov 2008•

Type of equipment:

Side booms•

Padding •equipment

Excavators•

Bull dozers•

Grader•

*Specific start and completion dates may change due to

unforeseen circumstances.

CANADA INC.

PIPELINE CONSTRUCTION STEPS

Step 5: Commissioning (Testing)Activity Type:

New piping and equipment is inspected, tested and verified for •compliance to ensure readiness for introduction of hydrocarbon product (e.g., oil) and operation

Testing will be conducted in accordance with applicable CSA codes, and •the procedure is registered with the National Energy Board (NEB).

Pipe sections will be tested to 1.25 times the maximum operating •pressure using water.

Pipeline segment undergoing the pressure test is patrolled continuously •to ensure the safety of the public and the property.

After successful completion of the pressure test, facility piping and •equipment are filled with hydrocarbon product from the mainline system.

At the completion of this phase, the facilities and the pipeline loop will •be fully operational and handed over to operations.

Length of activity*:

Eight weeks•

Approximate start time*:

Jasper: Dec 2007 to Apr 2008•

Robson: Aug 2008 to Nov 2008•

Type of equipment:

Test equipment•

Pumps•

Booms•

In-Service dates:

Jasper Spread: Apr 2008•

Facilities: Apr 2008•

Anchor Loop: Nov 2008•

*Specific start and completion dates may change due to unforeseen circumstances.

CANADA INC.

PIPELINE CONSTRUCTION STEPS

Step 6: Final Clean-Up & Restoration of the LandActivity Type:

Final clean-up and reclamation procedures will be initiated •following construction.

Remove temporary bridges, compact ditch line, restore graded •areas of the right-of-way to naturally stable contours.

All disturbed areas will have topsoil returned, will be •seeded with an appropriate seed mix, and will have special reclamation measures applied as required.

Length of activity*:

Occurs over a ten month period•

Approximate start time*:

Jasper: Sept 2007 to Nov 2009•

Robson: Jul 2008 to Nov 2009•

Type of equipment:

Grader•

Excavators•

Rock trucks•

*Specific start and completion dates may change due to unforeseen circumstances.

CANADA INC.

CANADA INC.

FACILITIES & POWER CONSTRUCTION STEPS

Site Clearing and Grubbing: Jun 2007

Vegetation, such as trees or brush, is removed for pump stations and xpowerlines.

Site Earthworks & Roadways: Jul to Aug 2007

Site is graded to create a safe and xlevel working area. All topsoil is removed and stored separately to ensure that it will be available for restoration of the site and powerline right-of-way

Building or upgrading access roads x

General Construction: Aug 2007 to Oct 2008

Drive foundation piles, pour concrete foundations, install building xmodules, construct pumphouses, install equipment and connect electrical & piping.

Type of equipment:

Backhoes•

Bobcats•

Cranes•

Zoom booms•

Graders•

Dump trucks•

Concrete trucks•

Pile drivers•

Hydrovac trucks•

Delivery tractor/trailers•

Tree clearing•

Power pole installation equipment•

Transmission line specialized •equipment

*Specific start and completion dates may change due to unforeseen circumstances.

CANADA INC.

TYPICAL PUMP STATION

Pump stations are required to move liquids through the Trans Mountain Pipeline System.

A typical pump station is situated on approximately two •hectares of land

Pumps are located inside the pump house building•

The site typically contains: an electrical equipment •building, an operator’s building and an electrical substation

New stations are equipped with two 5,000 horsepower •electrically powered motors

Proposed site will also contain a lined hydro carbon •catchment with detection and controlled release

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