Propane Terminal Project

ProPosed Portland ProPane exPort terminal

information Package

www.pembina.com

pembina info booklet R4 REV.indd 1 14-12-30 10:53 AM

3 About Pembina

3 Proposed Project 3 • Overview4 • Details5 • Schedule5 • Rationale6 • Benefits

7 About Propane8 • PropaneSafety8 • EnvironmentalConsiderations

10 FacilityLayout

12 Safety12 • FacilitySafety13 • SeismicConsiderations13 • EmergencyProcedures13 • RailSafety14 • OurRailFleet15 • MarineSafety

16 EnvironmentalManagement16 • Overview16 • GreenhouseGasEmissions17 • FacilityEmissions17 • RegulatoryPermitProcess

17 EmergencyResponse18 • IncidentHistory18 • RecentIncidents

18 Forward-lookingStatements

19 GlossaryofTerms

19 ConversionTable

19 ContactInformation

Table of ConTenTs

pembina info booklet R3 SINGLES.indd 2 14-12-23 4:45 PM

abouT PembinaPembina is a leading energy transPortation and midstream service Provider, serving north america for over 60 years. our strategically located and integrated energy infrastructure enables us to offer essential services for the energy industry across the hydrocarbon value chain. as a trusted member of the communities in which we operate, we are committed to safe, responsible and reliable operations and to generating value for our investors.

• 1954–companywasfounded

•1997–becameapublicallytradedcompany

• 2010–convertedfromanincometrusttoacorporation

• 2012–acquiredProvidentEnergyandbecamelistedontheNYSEunderPBA

• 2014–listedasoneofAlberta’sTop65Employers

• 1000+employees

• $15billion–enterprisevalue(approx.)

• HeadofficeinCalgary,Alberta,Canada

ProPosed PorTland ProPane exPorT Terminal ProjeCT

ProjeCT overviewPembinaMarineTerminals Inc. (“Pembina”),asubsidiaryofPembinaPipelineCorporation, recentlyenteredintoanagreementwiththePortofPortland.Pembinaisproposingtoconstructandoperateamarineterminalfortheexportofpropane;theproposedPembinaPortlandPropaneExportTerminalProject(the“Project”).Theexpectedcapitalinvestmentisapproximately$500million(USD).TheProjectwouldutilizethePortofPortland’sexistingBerth607andadjacentindustriallandinthePort’sMarineTerminal6,locatedintheRivergateIndustrialDistrictinNorthPortland.TheProjectwouldnotbelocatedwithinaresidentialarea.

The facilitywouldreceiveshipments,averaging37,500barrels or approximately 1.6 million gallons per day,of propane via rail from Pembina’s Redwater Facilitynortheast of Edmonton, Alberta. The propane wouldbeunloaded, chilledandstored for 15days in above-ground refrigeratedholding tanks,beforebeing loadedtoapropaneshipforexporttoglobalmarkets.Pembinaestimates there to be two-to-three vessel shipments permonth.

TheProjectisbeingdesignedforaminimumof25yearsofservice,withtheexpectationthatitwillrunbeyondthattimeperiod.Theproposedin-servicedate,subjecttoregulatoryandenvironmentalpermitapprovals,isscheduledforQ12018.

Propane would be the only commodity to be shipped from this site. the site will not accommodate handling and shipment of crude oil or liquefied natural gas.

ProPosed PorTland ProPane Terminal | 3


ProjeCT deTailsWhencompleted,arail-served,marineterminalandpropaneexportfacilitywouldinclude:

• arailyardwithpropaneunloadingequipment;

• railunloadingtankswithatotalstoragecapacityofapproximatelyonemilliongallonstoreceivedeliveredpropane;

• refrigerationequipment;

• twolarge,refrigerateddouble-walled,propanestoragetankscapableofholdingupto800,000 barrels(approximately33.6milliongallons);

• aflarestackandabove-groundfacilitypipingconnectingtheequipment;and

• acontrolcenter,office,shopandmaintenancefacilities.

Themarineterminalwillconsistofawharf,modifiedtoaccommodateocean-goingshipscapableoftransporting propane,with amaterials ship-loading area and associated trestle and above-groundpipingtotransporttheproductfromthestoragetankstotheship.

These facilities will be supported by infrastructure and equipment including: power supply anddistribution;watersupplyanddistribution(includingfirewater);utilities;wastecollectionandtreatmentandasupportingmaintenancearea.

Thepropanewillbeinliquidformthroughoutthecourseofitshandling.Bycoolingorcompressingpropane,itchangesfromagastoaliquidstate.Theproductwillbeeitherunderpressure,orrefrigerated,duringitstransportation,storageandexport.Thereisnofurthercompressionofthepropanefromtherailcartotherefrigeratedstoragetanks;thereforeitwilloccupythesamevolumeinthetankasitdidintherailcar.

RAIL CAR UNLOADING STORAGE REFRIGERATION

REFRIGERATED STORAGELOADING PUMPS

MARINE BERTH FACILITIES

SHIPPING VESSEL

4 | Pembina PiPeline CorPoraTion

images are for illustrative purposes only.


*Please see forward-looking statements information at the end of this booklet

Proposed*Schedule–PortlandPropaneExportTerminalProject

Consultation Q32014–Q12016

EngineeringandDesign Q32014–Q22017

EnvironmentalandRegulatoryProcesses Q32014–Q12016

Procurement Q42014–Q42016

Construction Q12016–Q12018

FacilityStart-Up Q12018

*Daterangesarebasedonabest-casescenarioandaresubjecttochange

PRojECTSCHEDUlE

ProjeCT raTionaleNorthAmerica’senergymarketshaveexperiencedashiftinrecentyearswithNorthAmericanpropanesupplyexceedingnearandlong-termforecastdemands.Currentforecastsindicateexcessdomesticsupplythroughtoatleast2040.

Thereisworldwidedemandforpropaneasacooking,heating,autofuelandplasticsmanufacturingagent. Increased propane production from the natural resources in Canada’s Western CanadianSedimentaryBasin(“WCSB”)andnewshalegasdevelopmentsintheUnitedStates(“U.S.”),suchastheEagleFord,Barnett,HaynesvilleandMarcellusplays,hassignificantlyincreasedtheavailabilityofpropanewithintheU.S.

Marketdemandforpropanefromaroundtheworld,especiallytheAsia-Pacificregion,presentsoneoftheclosestandmostattractivelong-termmarketsavailableforexcesspropanefromCanada’sWCSBwhileatthesametimeaddressingenvironmentalsustainabilityquestionsforthatregion.

PembinahasscoutedanumberofpossiblelocationsforawestcoastmarineexportfacilitynorthandsouthoftheU.S./Canadaborderforovertwoyears.Portlandwaschosenforitsreadilyavailableland,whichisalreadyzonedforheavyindustrialuse;existingmarineberth;dualrailconnectivity;Portland’sskilledlaborforceanditsgeographicproximitytointernationalmarkets.

Pembina(andProvidentwhomweacquiredin 2012) has been transporting propanein Western Canada, as well as oregonandWashingtonState, for over 15 years.Pembinawillcontinuetoprovidedomesticpropaneservicetooregon.

Fortheyear-to-date,Pembinahasshipped7.5million gallons of propane tooregon;3.1million of themwere delivered to theCity ofPortland.Considering our existingpresence in Portland, and oregon morebroadly, this location makes for a strongbusinesscase.



ProjeCT benefiTsConstructionandoperationoftheproposedProjectwillresultinsignificantbenefitstothesurroundingcommunitiesincluding:

JobCreation:600-800good-payingconstructionjobs,atthepeakofconstruction,willberequired.Pembinawillexaminealloptionsinitshiringplans.Meetingswithlabororganizationsareon-goingand,whereappropriate,ProjectlaborAgreements(PlAs)willbeconcluded.

Tooperatethefacility,Pembinawillhireanumberoffull-time,permanentpositionswhichinclude:

• Facilityoperators

• Rail/RailCarUnloadStaff

• InstrumentTechnicians

• Mechanics

• Millwrights

• Administration

TheestimatedvalueofthesedirectPembinajobsis$7.2millionannually.Annualbasesalarieswillvarybasedonpositionandexperience,butareestimatedtoaverage$70,000to$120,000.Whenhiringqualifiedpersonnelforthefacility,PembinawillhirefromthelocallaborpoolinPortlandandarea.

ProcurementOpportunities:localbusinesseswillhavetheopportunitytoprovideservicesinarangeofareasrelatedtotheconstructionoftheProject.onceinoperation,thefacilityisexpectedtoincuranannual$25-$30millioninoperatingexpenses.

EconomicBenefits:TheProjectwillgeneratesignificanteconomicdevelopmentopportunitiesintheregion.once inoperation, the facility is estimated togenerateapproximately$12million in annualproperty tax revenue including an estimated $3.3 million to the City of Portland, $2.4 million toMultnomahCountyand$3.1milliontoPortlandPublicSchoolsannually.

Pembinahasstated,asoneofourcorporategoals,tobea‘neighborofchoice.’Portland’spracticeofenteringintoCommunityBenefitAgreements(CBAs)iswell-knowntousandwewillengagewiththecommunityonthisopportunitywhenitisappropriatetodoso.

Projectisfunded100%byPembina:TheinvestmentinthisProject,thePortandthecommunityofPortlandwillbefundedsolelybyPembinaandnotaxpayer,orcitysubsidies,willberequested.




abouT ProPanePropane isderived fromthenaturalgasusedtoheatyourhome.Whennaturalgas isproduced, ittypicallycontainsavarietyofassociatedhydrocarbons,waterandotherassociatedimpurities.Naturalgasprocessingplantsseparateallofthevarioushydrocarbonsandfluidsfromthepurenaturalgastoproducewhatisknownas“pipelinequality”drynaturalgas.Amongthenaturalgasliquidsthatareseparatedinthisprocessispropane.

Propanecanbeseparatedfromthenaturalgasliquidsbyraisingthetemperatureandseparatingthe lighterends(i.e.propane)fromtheheaviercomponents.Itissimilartoboilingwaterandcollecting the risingsteam. This separation process will becompletedatPembina’sRedwaterFacilityin Canada, northeast of Edmonton,Alberta, before shipping the propane totheproposedfacilityinPortland.

Pembina receives its natural gas liquids from theWesternCanadian Sedimentary Basin (“WSCB”)in Alberta, not the oil sands deposits. The propane Pembinawill ship is a product of natural gasprocessing,notcrudeoilrefining.

Theprocessofrefrigerating,orpressurizingpropane,turnspropanefromagasintoaliquid,makesitsmallerinvolumeby270timesandallowsforeasiertransportationandhandling.Atourproposedterminal,thepropanewillbereceivedasaliquid,similartohowonereceivespropaneinabarbecuetank(abouttentimesatmosphericpressureand60-80degreesFahrenheit).Thepropanetemperaturewouldthenbeloweredto-44degreesFahrenheitandjustafewpoundsaboveatmosphericpressure.Attheseconditions,thepropanewouldlooksimilartowaterinacup.

COMPONENTS OF RAW NATURAL GAS

EnergyComponents(shown in orderof abundance,not to scale)

Non-energyComponents(not in orderof abundance)

Methane (CH4)

Ethane (C2H6)

Propane (C3H8)

Butane (C4H10)

CondensatesC5H12–C10H22)

Nitrogen (N2)Carbon Dioxide (CO2)

Hydrogen Sulphide (H2S)Helium (He)

copyright 2013 canadian centre for energy information

Pembina receives its natural gas liquids from the Western canadian sedimentary Basin (“WscB”) in alberta, not the oil sands deposits. the propane Pembina will ship is a product of natural gas processing, not crude oil refining.


ProPane SafetyPropane is a safe product that most people are already familiar with in their day to day lives. Propane-based barbeques are common throughout north america and, in general, people are comfortable handling their own refuelling needs. this comfort exists because propane equipment and appliances are manufactured to rigorous safety standards. Propane is a stable fuel that can be safely stored in sturdy tanks for a long period of time.

Propane has a narrow range of flammability when compared with other petroleum products. It won’t ignite when combined with air unless the source of ignition reaches at least 940 degrees fahrenheit. In contrast, gasoline will ignite when the source of ignition reaches only 430 to 500 degrees fahrenheit.

further, if liquid propane leaks, it doesn’t puddle, but instead vaporizes and dissipates quickly into the air. Being heavier than air, propane vapor can gather low to the ground if the volume released is significant. Pembina’s proposed facility will include safety measures such as gas monitoring equipment and on-site detection systems.

envIronmental conSIderatIonSPropane is clean burning and effectively competes with other fossil and renewable fuels on efficiency and greenhouse gas emissions in many applications. Its simple chemical make-up allows it to burn cleaner than coal, light and heavy petroleum fuels, ethanol, and even natural gas in some cases.

Propane gas is not harmful to soil and water, and is an approved, clean fuel listed in the 1990 U.S. clean air act. the clean air act also notes that it meets the standards for reducing acid rain and controlling air pollution in urban areas. Propane is not a greenhouse gas, and under federal and state air quality regulations is not considered a criteria air pollutant or a hazardous air pollutant.

according to the environmental Protection agency (ePa), much of the sulfur dioxide in the atmosphere, which produces acid rain, is attributable to coal-fired electricity-generating facilities. In contrast, neither the process by which propane is produced nor the combustion of propane gas produces significant acid rain contaminants.

8 | PemBIna PIPelIne corPoratIon

Pembina’s redwater facility and rail Yard



no job is too important that it can’t be done safely and

anyone on a Pembina worksite is empowered to speak

up, or ‘stop a job,’ if they feel conditions are unsafe.



COLUMBIA RIVER

BERTH 607

HONDA STORAGE

BNSF “A” RAIL YARD

PIPING TRESTLE

NORTH MARINE DRIVE

REFRIGERATION /COMPRESSION

FLARESTACK

WATER STORAGEPROPANE

STORAGEOFFICE / MAINTENANCE SHOP

PEMBINA ACCESS ROAD

OFFLOADSTORAGE

HAYDEN ISLAND

FACIlITYlAYoUT

ProPosed loCaTion

TheProjectwouldbelocatedonlandadjacenttotheeast

endofthePortofPortland’sMarineTerminal6inNorth

Portland,onlandthatisalreadyzonedforheavyindustrial

useintheRivergateIndustrialDistrict.

this facility layout illustration is conceptual and is intended for consultation purposes. if the design should change as a result of Project development, stakeholders will be advised accordingly.



COLUMBIA RIVER

BERTH 607

HONDA STORAGE

BNSF “A” RAIL YARD

PIPING TRESTLE

NORTH MARINE DRIVE

REFRIGERATION /COMPRESSION

FLARESTACK

WATER STORAGEPROPANE

STORAGEOFFICE / MAINTENANCE SHOP

PEMBINA ACCESS ROAD

OFFLOADSTORAGE

HAYDEN ISLAND



SAFETYPembina’s safety culture – ‘Safety Starts with Me – Zero By Choice’ – isfundamental toouroperations.No job is too important that it can’tbedonesafelyandanyoneonaPembinaworksiteisempoweredtospeakup,or‘stopajob,’iftheyfeelconditionsareunsafe.

ourSafety,Environment&Security(“SES”)managementsystemisthecorner-stoneofPembina’ssuccessandisdeeplyembeddedinourcorporateculture.We reinforce our commitment to excellence in SES in our daily operationsthroughthedevelopmentofstringentstandards,regularsafetymeetings,extensivecontractorscreening,rigorousprojectinspection,reviewofpotentialhazards,andensuringouroperationsmeetorexceedindustrybestpractices.

Weareworkingtowardszero;Pembinabelievesallinjuriesandincidentsarepreventable.That’swhywewon’tstopuntilwereachourgoalofzeroworkplaceincidents.Toachievethis,wehaveacombinationofprogramsandprocedures (which includeouremergencyresponseplans,discussed later)andanincidentreporting,trackingandinvestigationsystem.

Trackingsafetystatistics is justas importantasmeasuringoperatingandfinancialperformance. It’sakeypartofouroperationsandallowsustoseehowwe’redoingandwhereweneedto improve.Specifically,itgivesusabenchmarktomeasureagainstinfutureyears,ithelpsusanalyzeourcurrentresults,anditgivesustheinformationweneedtoidentifypotentialopportunitiesforimprovement.onaregularbasis,ourfieldrepresentatives,safetypersonnelandmanagementteamsreviewallincidentsthatdohappen,allowingustounderstandtherootcauseandimplementcorrectiveand/orpreventativemeasures.Wecontinuetoworktowardsleadingtypesofsafetymetricstobemoreproactiveinincidentprevention.

FACIlITYSAFETYThe sitewill be attended 24 hours a day, 365 days a year,with on-site personnel and automatedcontrolstodetectandpreventany issues.Thesitewillbemonitoredbygasandfiredetectionandincludeemergencyshut-downvalvesandequipment.Regularmaintenanceandinspectionprogramswillbeundertakentoensuretheintegrityoftheequipmentandpipingon-site.

The refrigerated storage tanks will be steel, double-walled tanks (i.e. a tank within a tank) withmonitoringofthespacebetweenthetankswalls.Aleakfromtheinnertankwouldbedetectedandcontainedintheoutertank.Thefacilitywillhaveemergencyshutdownvalvesisolatingindividualpartsoftheterminal,aswellaspressurereliefandflarevalvestoroutethepropanetoaflarestack,forasafe,controlledcombustionandrelease,intheunlikelyeventofafailure.Intheeventofapoweroutageandtherefrigerationcompressionwaswithoutpower;thepropanewouldslowlyheatup,convertingtoagas(similartowaterboilingoffassteam)andsimilarly,beroutedtotheemergencyflarestackforasafe,controlledcombustionandrelease.

Pembinawillhaveitsownemergencypower(battery,plusdiesel-drivengeneration)tosupplypowertocontrolsystems,monitoring,lighting,emergencyshutdowns,theflarestackandotherkeydevices.Thefacilitywouldbeshut-inunderacontrolledsituationutilizingthisemergencypower.Allpropanecontainedinrailcars,theunloadingstorage,refrigerationsystemandassociatedpipingwouldremainwithinthosesystemsasthedesignwillbeabletocontainthesevolumes.

Pembinahasnothadasingleemployeelostworkday,astheresultofanincident,for2014.

“Did you Know?”


seismiC ConsideraTions Anextensivegeotechnicalandseismichazardinvestigationiscurrentlybeingcompletedatthesite.Thisinvestigationincludesover40explorationswithsometoover150feetindepth.Theseismichazardsbeingevaluatedaspartofthestudyincludegroundshaking,soilliquefaction,lateralspreadingandseiches.

Theseinvestigationswillprovidemitigationrecommendationstoaddresstheseismichazardsintheareaandsuitablysupporttheproposedstructuresatthedesign-levelearthquakes,amagnitude-7PortlandHillsFaultZoneearthquakeandamagnitude-9earthquakeneartheoregonCoast,asrequiredbythe2012InternationalBuildingCode(“IBC”)and2014oregonStructuralSpecialty(‘Seismic’)Code.

Postthesedesign-levelearthquakes,thedesignforthefacilitymustensurethestructureswillsupportgravity load,damagethatdoesoccurdoesn’tpreventegressforoccupantsandthetankswillretaincontainmentcapability.

EMERgENCYPRoCEDURESThefacilitywillmeetallrequiredregulatorystandardstopreventanyreleaseofproduct.Inpreparationforanemergencysituation,thedesignforthefacilitywillincludesafetymeasuressuchas:

• monitoringequipmentforpressureandtemperaturecontrol;

• shutdownprocedurestopreventpressuresfromexceedingthefacilitydesign;

• emergencyfireandgasdetectionequipment;and

• pressurereliefdevicesandemergencyvalvestoroutethepropanetoaflarestackwhereitcanbesafelycontrolled.

Thefacilitywillbemannedbyskilledoperators24hoursaday,365daysayear,tooverseethesafeoperationofthefacilityandensurepropersafetyandsecurityprotocolsareenforced.Intheunlikelyeventofafire,achemicalsuppressantwouldbeineffectiveincontrollingapropane-basedincident.PembinaandPortlandEmergencyFirstResponderswouldusewatertocoolandcontrolsuchanincident.

Intheunlikelyeventthatliquidpropaneisreleasedfromarailcar,itwouldvaporizeanddissipateintotheair;itwouldnotpool.Railcarsareequippedwithanemergencypressurereleasevalveinordertorelievepressureintheeventofanincidentwhichreducesthecombustiblenatureofthegaswhiletransportedinrailcars.

RAIlSAFETYPembina’sRedwater railyard is the largest inWesternCanada,outsideof thenational railcarriers,withovereightmilesoftrackcapableofholding620carsandaloadingcapacityof70,000barrels,orapproximately2.9milliongallons(U.S.),ofproductsdaily.

ourpracticeofsafelyhandlingourrailcars,duringloadingandunloadingproceduresatourRedwaterFacility,hasearnedPembinarepeatedSafeHandlingawardsfromthemainrailcarriersinCanadaandtheUnitedStates.Theseachievementsinclude:

• BurlingtonNorthernSantaFe(BNSF)SafeHandlingAward–14years

• CanadianNational(CN)SafeHandlingAward–9years

• CSXChemicalSafetyAward–13years

• CanadianPacific(CP)–2014ShipperSafetyAward

Theseawardsarepresentedonlytocompaniesshippingaminimumof600carloadsofchemicalsandhazardousproductsperyear,withoutanon-accidentrelease.

Pembina isplanning to ship thepropaneviaunit trains (trainsof a singlecommodity),witha trainarrivingatourproposedfacilityeverytwodays.Thereisnofurthercompressionofthepropanefromthepressurizedrailcartotherefrigeratedstoragetanks.Inotherwords,thepropaneintherailcarswilloccupythesamevolumeasintherefrigeratedtanks.



InchoosingarailcarrierforthisproposedProject,Pembinaisworkingtounderstandtherailcompanies’safetyproceduresandemergencyresponseprotocols,aswellastheroutesourproductwouldtravel.Thisisveryimportanttounderstand,asPembinawillwanttoworkwithacompanythatisdevotedtosafeandreliableoperations.Todate,Pembinahasnotconfirmedarailtransportationprovider,orroute,forthisProject.Pembinaanticipatesananswertothisquestionbymid-to-late2015.

our rail fleeTPembina’srailfleet iscomprisedofover1,200pressurized,DoT112rail tankcars.Thesecarsarespecificallydesignedtocarryaproductsuchaspropaneandhavesafety featuresthatmakethemcompliantwithalltransportationandsafetystandardsinCanadaandtheU.S.


• Fleetofover1,200DoT112pressure railcars

• Averageageofcarsissixyears• Pembina’stankcarfleetis100%leased

–coveringbothmanufacturerrepairandmaintenanceservices

• Complieswithallcurrentregulatorystandards

rail business and fleeT deTails• AsofNovember1,Pembinahasshippednearly29,000railcarsin2014.• Pembinashippedapproximately25,000railcarsperyearin2012and2013.• Pembinawilltakedeliveryofover800newDoT112pressurecarsforitsleasedfleetthroughmid-2016tomeettheneedsoftheproposedProject.

• Fleetiscontinuouslybeingupgraded.• Primaryfocusisonoperatingasafe,efficientandeffectivefleet.

PEMBINA’SRAIlFlEETQUICkFACTS

FullHeadShields

Top-FittingProtection

11-gaugejacketedshell/0.618”-thicknormalizedsteel

SafetyFeaturesofaDOT112PressurizedRailCar

DoT112pressurerailcarsincludethefollowingsafetyfeatures:• 11-gaugejacketedshell• 0.618-inchthick,normalizedsteelshell• 0.5-inchthick,fullheadshieldsand

equippedwithtop-fittingprotection• 0.5-inchceramicfiberinsulation

(thermalprotection)


MARINESAFETYPembinaexpects touseshipscalledVerylargegasCarriers (“VlgC”) for thisProjectas theyarespecificallydesignedtocarryproductssuchasrefrigeratedliquidpropane.Theshipsmaybeupto750feetinlengthandcarryupto23millionU.S.gallonsofpropanewithdraftsoflessthan39feet,allowingthemtonavigatethechannelwhichis43feetdeep.

TheVlgCusedtocarrypropanearedouble-hulledandconstructedoflow-temperaturesteel,speciallydesignedtohandlethecoldliquidsbeingtransportedandeachhavetheirownrefrigerationsystemstomaintainthetemperatureoftheproduct.

PembinahasbeenconsultingwiththeU.S.Coastguard,aswellastheColumbiaRiverPilots,onthisProject tobetterunderstand theProject’s implications tomarine trafficandsafety.TheU.S.CoastguardwillconductaWaterwaySuitabilityAssessment (WSA) for theProject thatwillassesssafetyandsecurityconsiderationsforthePort,thefacilityandtheproposedshiproutesinU.S.waters.TheCoastguardwillreceiveandreviewtheprojectinformationandpossiblyestablishwhatitreferstoasa‘SafetyandSecurityZone,’forthefacility.

Specifically,theCoastguardmayimposeasecurityzoneof500yardsinalldirectionsfromthevessel,butthiszoneisappliedatthediscretionoftheCoastguard.EntryintoasecurityzoneisallowedonlywithpermissionandatthediscretionoftheCoastguard.Intheeventasecurityzoneisestablishedundertheseregulations,theCoastguardwillissuealocalbroadcastnoticetomariners.

TheCoastguardhasestablishedspecific regulations forothersimilar facilities inotherwaterways.Commonrequirementsintheseregulationsincludetheprovisionofadvancenoticeofupcomingsafetyzoneby theCoastguard to themarinecommunityandmostallow foraccess through thezone ifpermissionisrequestedandgrantedbytherelevantcaptainofaport,ordesignate.



environmenTal managemenT

overviewPembinaemploysanEnvironmentalManagementSystem tominimizeandmanage the impactourgrowthprojectsandoperationshaveonthenaturalenvironment.

Pembina conducts environmental studies and assessments to determine the potential effectsoperationsmayhaveonthesoil,land,air,plants,wildlifeandwatershed.Detailedplansaredevelopedin consultation with local regulatory authorities, Tribal (First Nation) communities, landowners andotherstakeholders inordertominimizeourenvironmental footprint.Forexample,wehave installedgroundwater monitoring wells at many of our operating facilities.We use the annual or bi-annualmonitoringresultsfromthesesitestomaptrends,gainearlyindicationsofpotentialsoil/groundwaterimpactandidentifyappropriateornecessaryremedialactions.

Measuring the effectiveness of our Environmental Management System by conducting regularenvironmental audits is the key to continuous improvement. Every year at least one of Pembina’soperatingareasissubjecttoathird-partyenvironmentalaudit.FindingsareintegratedintoouroverallEnvironmentalManagementSystemworkingtowardsachievingourcompanywidegoalofzeroincidents.

Pembinadeploysenvironmentalinspectorsandspecialistsinthefieldduringconstructiontoassureenvironmentalcomplianceandassistinmitigatingenvironmentalconcernsthatmayarise.

gREENHoUSEgASEMISSIoNSPropane,with its tinycarbon footprintandhighefficiency,canplayamajor role infightingclimatechangebyreducinggreenhousegasemissionswhenitisusedtoreplacemorecarbonintensivefuels..Burningmostfuelsusedintheworldtoday,fromcoaltowood,oil,gasolineandnaturalgas,producesvariouskindsofcarbonthatcontributetoglobalwarmingasgreenhousegases(gHg’s).Propanehasalowercarboncontentthangasoline,diesel,keroseneandethanol:

Although natural gas (consisting primarily of methane) generates fewer Co2 emissions per BritishThermalUnit (BTU)thanpropanewhenburned,methaneisadirectgreenhousegaswhenreleasedintotheair.Propane,ontheotherhand,isnotagreenhousegaswhenreleased.Thedifferenceisinhowquicklypropane,comparedtonaturalgas,canberemovedfromtheairbynaturaloxidationorprecipitation–propaneisremovedfromtheatmospherefasterthanittakesforittohaveanimpactontheclimate.


End-UseCO2EmissionsbyFuel(KgCO2 Equivalent/MillionBtu)

Na

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l Ga

s

Pro

pa

ne

Eh

tan

ol (

E85

)

Ga

solin

e

Ke

rose

ne

Die

sel

He

avy

Fu

el O

il

Bit

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ino

us

Co

al

100

75

50

25

0

Source:TheCanadianPropaneAssociation(www.propane.ca)


FACIlITYEMISSIoNSThefacilityisdesignedasaclosedloopsystemwhichmeansthatundernormalconditionsallpropaneisretainedwithintheequipment,pipingandtanks;thepropaneisnotventedtoatmosphereorburnedatthesite.Thefacilityequipmentispoweredbyelectricity.Consequently,theproposedterminalwillhavelimitedairemissionsduringnormaloperationandthesewouldmainlybefromheatingofthesmallofficeandshopspace.Theon-siteflarewillonlybeusedduringupsetevents,orformaintenance.

REgUlAToRYPERMITPRoCESSTheproposedProject requirespermitapprovalsandreviews from local,stateand federalagenciesincludingtheCity,theoregonDepartmentofStatelands,theoregonDepartmentofEnvironmentalQuality,theU.S.ArmyCorpsofEngineers,theFederalAviationAuthorityandtheU.S.CoastguardState.Alongtheway,theseprocesseswillincludeopportunitiesforpubliccomment.

Baseduponcurrentdesignconcepts,PembinaanticipatesNEPAwillbetriggeredduetothefederalpermit(s)requiredbytheU.S.ArmyCorpsofEngineersforthein-watercomponentsoftheProject.Weexpectthescopeofin-watercomponentsrequiringapprovaltobelimitedinnatureandpotentialeffects.

EMERgENCYRESPoNSEPembina regularly trains for a variety of emergency situations ensuring our staff are prepared torespondsafelyandeffectively.WealsoengagelocalFirstRespondersinexercisestoeducatethemontheproductswehandleandourrespectiverolestoenhanceourpreparedness.

Corporate and Site Specific Emergency Response Plans (“ERP”s) aremaintained for all Pembina’sfacilitiesandproducts.Theseplanssetoutspecificproceduresandresponsibilitiestoensureanincidentisrespondedtosafelyandeffectively.ForeveryregulatedERPPembinahasinplace,wearerequiredannuallytotesttheplanbyconductinganexerciseappropriatetothefacilityandareaoperations.

Werequireouremployeestohavetheskillstheyneedtorespondsafelyandeffectivelytoanincident.Wedothisthroughconductingtabletopscenariosandfull-scaleexercises.Thistraininghelpsusminimizepotentialimpactstothecommunitiesinwhichweoperate,totheenvironment,andtoourcustomers.

Pembina’sEmergencyManagementProgramiscomprisedofhazardandenvironmentalassessments,developmentofintegrityprogramsandsafeoperatingprocedures.Thesesameprocesseswillbeusedtodevelopa site-specificERP for theProject site.Preparedness is addressed throughcontinuousplanningandon-goingcommunicationandinvolvementwiththepublic,localgovernmentalagenciesandFirstResponders. If itwasdeterminedthat localFirstResponders lackedequipmentcritical tohandlingapotentialincidentonoursite,Pembinawouldsupportthepurchaseofsuchequipment.

Pembinaiscurrentlyconductingmodelingstudiesforthefacilitytoprepareitssite-specificEmergencyResponsePlan.AnERPistypicallydevelopedalongsidetheconstructionofafacility,notbefore.


Completecombustionofpropaneproducescleanwatervaporandcarbondioxide.

“Did you Know?”


INCIDENTHISToRYonjuly31,2000Pembinapurchasedapipelinesystemand lateon thatsameday the transferofownershipwasfinalized;acrudeoilleakoccurredabout56milesupstreamfromtheTownofChetwynd,BritishColumbia(B.C.)onthePineRiver.Approximately250,000gallonsoflightcrudeoilspilledfromthepipe,withabouthalfenteringthePineRiver.

Pembina assumed full responsibility for the incident; immediately implementing the EmergencyResponsePlan.Fullclean-upeffortslastedfivemonthsinvolvingmanylocalcontractorsandAboriginalFirstNations (TribalCommunities). Fourteenmonthsafter the incident in the fall of 2001,Pembinasuccessfullyreceivedregulatoryreleasesfortherivercleanup.

InApril2004,PembinareceivedaletterfromtheB.C.MinistryofEnvironmentadvisingthatPembinahadcompletedalltheorderedactionswithregardtotheincident.

reCenT inCidenTsInthreeseparatepipeline incidentsthisyear,thevolumeoftheproduct (crudeoil) releasedineachincident, was less than two cubic meters (m³), or approximately 528 gallons. The Alberta EnergyRegulatorrequiresreportingofallproductreleasesoutsideacompany’soperatinglease,orproperty,regardlessofvolume.

Thefirstincidentoccurredonacustomer’svalvesiteasaresultofafaultypumpsealandtheproductmovedoff thepropertyasaresultof thecustomer’s less-than-adequatecontainmentdyke.Asthisincidentoccurredduringthewinter,theproductthatmigratedoff-propertywasnotdiscovereduntilthesnowmelted in thespring.The remainingproductwassuccessfullycleaned-up. In thesecondincident,theproductremainedonleaseandalthoughwaslessthanthereportingthreshold,Pembinastillchosetoreporttheincident.Thereleasewasattributedtoafaulty‘o-ring’seal,whichhasbeenreplaced.Thethirdincidentwastheresultofapipelinefailureduetoover-pressurizationofthelineduringaroutinemaintenanceprocedure.Althoughlessthanonecubicmeter,orapproximately264gallonswasreleased,theproductwasnotcontainedtoPembina’spropertyandwasthereforereportedtotheregulator.

Regardlessofsizeorlocation,incidentsarereported,investigated,andanalyzedtopreventrecurrence,and to improve Pembina’s performance. Effective incident investigation, reporting, and follow-upfocusesonrootcausesand/orsystemfailures.Correctiveandpreventativeactionsarethenusedtoreducethepotentialforfuturesimilarevents.

FoRWARD-lookINgSTATEMENTS&INFoRMATIoNThispresentationisforinformationpurposesonlyandisnotintendedto,andshouldnotbeconstruedtoconstitute,anoffertosellorthesolicitationofanoffertobuy,securitiesofPembinaPipelineCorporation.Thispresentationanditscontentsshouldnotbeconstrued,underanycircumstances,asinvestment,taxorlegaladvice.Anypersonacceptingdeliveryof thispresentationacknowledgestheneedtoconduct theirownthorough investigation intoPembinaanditsactivitiesbeforeconsideringanyinvestmentinitssecurities.

This document includes forward-looking statements or information within the meaning of the “safe harbor”provisions of applicable securities legislationwhich are based on Pembina’s expectations and assumptions inlightof itsexperienceand itsperceptionofhistorical trends,currentmarketconditionsandperceivedbusinessopportunities.Suchforward-lookinginformationandstatementsrelatetobusinessstrategyandplans,anticipatedexpenditures,benefits,timingoftheterminalprojectandotherexpectations,beliefs,goals,objectives,assumptionsorstatementsaboutfutureeventsorperformances.Unduerelianceshouldnotbeplacedontheseforward-lookingstatementsandinformationasbothknownandunknownrisksanduncertaintiesmaycauseactualperformanceandfinancialresultstodiffermateriallyfromtheresultsexpressedorimplied.

InformationonriskfactorsthatcouldimpactPembina’soperationalandfinancialresultsarecontainedinPembina’sAnnualInformationFormandManagement’sDiscussionandAnalysis,anddescribedinourpublicfilingsavailableinCanadaatwww.sedar.comandintheUnitedStatesatwww.sec.gov.Theforwardlookingstatementscontainedinthisdocumentspeakonlyasofthedateofthisdocument.Exceptasexpresslyrequiredbyapplicablesecuritieslaws,Pembinaand itssubsidiariesassumenoobligationtoupdate forward-lookingstatementsand informationshouldcircumstancesormanagement’sexpectations,estimates,projectionsorassumptionschange.Theforward-lookingstatementscontainedinthisdocumentareexpresslyqualifiedbythiscautionarystatement.



Glossary of Terms

cBa community Benefit agreement

dot 112 model number of rail tank cars in Pembina’s fleet

erP emergency response Plan

nePa national environmental Policy act (U.S. federal)

nGl natural Gas liquids – typically: methane, ethane, propane, butane and condensates

Pla Project labor agreement

SeS Pembina’s Safety, environment and Security Plan

vlGc very large Gas carriers – tanker ships designed to transport propane and similar products

WcSB Western canadian Sedimentary Basin

measUremeNT CoNVersIoNs

1 liter 0.264 U.S. gallons

1 U.S. gallon 3.785 liters

1 barrel (petroleum) 42 U.S. gallons

1 tank car 725 barrels or 30,450 U.S. gallons (approx.)

1 unit train 75,000 barrels or 3 million U.S. gallons (approx.)

1 cubic meter (m³) 264.172 U.S. gallons

ProPoSed Portland ProPane termInal | 19

CoNTaCT INformaTIoNPembina values your input. If you have questions, comments or want additional information please contact us at:

• Pembina’s Toll-Free Project Line: 1-888-920-1979• Project Email: [email protected]


www.pembina.com

www.printed in USa.

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Propane Terminal Project

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