March 21, 2014. Kinder Morgan Canada 2844 Bainbridge Avenue P.O. Box 84028 Burnaby, BC, V5A 4T9 Attention: Michael Davies, Director, Marine Development Dear Mr. Davies,

Re: Mutual Interests for the Protection of Central Burrard Inlet Thank you for your letter of March 15th (attached) wherein you confirm some of our mutual interests in the development of Kinder Morgan Canada’s (KMC) Westridge Marine Terminal (WMT) and protection of the sensitive marine habitat of Burrard Inlet. Minimizing Impacts To Neighbours

We are pleased to see that KMC acknowledges Belcarra’s concerns regarding increased noise and light pollution associated with an expanded WMT tanker loading facility and increase in tanker shipments that would negatively impact the quality of life for Belcarra residents. Can you provide details on how KMC intends to utilize 'environmental design' measures for the new WMT facility to minimize and/or mitigate the bright lights and noise from both the WMT facility itself and the vessels loading at dockside?

We would expect that KMC will require all client vessels –– some of which will be owned or chartered by KMC or its parent company –– to implement measures to mitigate noise and light pollution while waiting to be loaded at the WMT. Can you also provide details regarding KMC’s vessel acceptance criteria that will require commitment from vessels calling at WMT to make efforts to reduce noise and light disturbances, as well as details about the Port Metro Vancouver (PMV) program for vessels at anchor off the WMT loading facility? WMT Oil Containment Booms

While KMC’s TMEP application makes a brief mention of oil containment booms around oil tankers berthed at the WMT facility, there is no mention as to the design technology and efficacy of the oil containment booms proposed for the expanded WMT tanker loading facility.

Belcarra seeks assurance that KMC will utilize ‘best available technology’ appropriate for the water conditions encountered in Central Burrard Inlet. Will KMC utilize appropriate open-water oil spill containment booms around all tankers berthed at the WMT that will be capable of effectively performing in at least 5-foot waves due to the wind, current, wave and vessel wake conditions known to occur on Central Burrard Inlet waters?

…page two

Michael Davies, Director, Marine Development March 21st, 2014. Page two, continued Burrard Inlet A Special Place

We certainly agree that Burrard Inlet is a special place that is home to high-value public assets that include recreation, tourism, fisheries, and sensitive marine habitats. As such, emergency response plans (ERPs) for Central Burrard Inlet need to include strategies for both rapid response and containment of an oil spill, and concurrent habitat protection measures. This ‘dual approach’ is required because fugitive oil always escapes from primary containment booms, which necessitates deployment of secondary booms to protect sensitive marine habitat areas. This was one of the ‘lessons learned’ from the 2007 oil spill event at WMT. Emergency Response Time Is Critical

We absolutely agree with KMC that the initial response time to an oil spill is critical, particularly when operating within a confined area such as Central Burrard Inlet that is surrounded by sensitive marine habitat that requires protection. However, we must re-emphasise that emergency response times that exceed one hour within Burrard Inlet are not acceptable.

In our letter of December 2nd, 2013 (attached) we expressed concern regarding KMC’s inadequate emergency response plan for dealing with potential oil spills in Burrard Inlet. Part of the problem is that the regulatory planning standards are minimum generic criteria that do not reflect the specific requirements of specific locales. The characteristics of Central Burrard Inlet, with its high-value public assets, necessitates the development of higher standards for emergency response plans in keeping with public expectations.

KMC’s proposal to increase oil tanker traffic at KMC’s Westridge Marine Terminal from one tanker per week to one tanker per day — a seven-fold increase in frequency and risk — warrants a proportional increase in WCMRC’s emergency response planning, equipment and personnel resources. WCMRC On-Water Home Base

We were pleased to see that KMC recognises the importance of assured access by WCMRC personnel to Burrard Inlet and WCMRC’s response vessels. Such ready access to WCMRC vessels is essential for the rapid deployment of personnel and equipment in the event of an oil spill emergency. Does the planning for WCMRC moorage space at WMT also include road access from the neighbouring Shell Oil property to facilitate vehicle access between the dock and WCMRC warehouse facilities? WCMRC Under Resourced

Although WCMRC has a dedicated and professional staff, at present WCMRC is seriously under-resourced for its mandate to protect Burrard Inlet’s public assets that have significant socio-economic and environmental values. WCMRC has a number of response vessels staged around Burrard Inlet, but under ideal conditions WCMRC is only able to muster two or three three-person response crews. A minimum of four three-person response crews are needed to ensure protection of Burrard Inlet’s public assets: two crews to deploy primary containment booms around the spilled oil, and two crews to simultaneously deploy secondary protective booms around sensitive marine habitat areas. As a consequence, WCMRC’s current personnel resources are insufficient for the existing level of shipping activity in Burrard Inlet, let alone the anticipated increase in WMT tanker shipments. KMC needs to ensure that WCMRC has sufficient in-house personnel to ensure a comprehensive response for the proper protection of Central Burrard Inlet’s sensitive marine habitat and wildlife resources.

…page three

Michael Davies, Director, Marine Development March 21st, 2014. Page three, continued Unanticipated Risks

In considering the risk of oil spills at WMT, it appears that KMC is overly focussed on the risks associated with the movement of oil tankers, and hasn’t given adequate consideration to risks due to ‘unanticipated events’ ― most of which are the result of ‘human error’ ― the definition of an ‘accident’. There is a much greater likelihood of an oil barge being towed from Imperial Oil Company at Ioco breaking its towline and colliding with a tanker being loaded at the WMT facility. Or a freighter coming from Pacific Coast Terminals in Port Moody losing power and colliding with the WMT facility. Or a vessel at anchor in Central Burrard Inlet breaking-free of its mooring due to high winds down Indian Arm during an Arctic-outflow event and crashing into the WMT facility. Or an earthquake that causes one of the Burnaby Mountain geologic faults to rupture Trans Mountain’s pipeline resulting in oil flowing into Central Burrard Inlet. Or, as was the case in the 2007 oil spill incident, a third-party contractor damaging Trans Mountain’s pipeline resulting in oil being spilled into Central Burrard Inlet. It most likely will be the ‘unanticipated event’, with an unquantifiable risk, that will result in an oil spill in Central Burrard Inlet. It is the ‘unanticipated event’ that underscores the importance of having an emergency response plan prepared and operationally ready for the protection of the environmental and socio-economic values of Central Burrard Inlet. Kinder Morgan’s fullsome response to the foregoing questions would be appreciated by all of the communities located around Burrard Inlet. Sincerely,

Ralph Drew, Mayor Village of Belcarra RED/ cc: Hon. Lisa Raitt, Minister, Transport Canada Hon. James Moore, MP, Port Moody–Westwood–Port Coquitlam Hon. Fin Donnelly, MP, New Westminster–Coquitlam & Port Moody Hon. Mary Polak, Minister, BC Ministry of Environment Hon. Linda Reimer, MLA, Port Moody–Coquitlam Ian Anderson, President, Kinder Morgan Canada Greg Toth, Senior Project Director, TMEP, Kinder Morgan Canada Lexa Hobenshield, Manager, External Relations, Kinder Morgan Canada Kevin Gardner, President, WCMRC Robin Silvester, President and CEO, Port Metro Vancouver

Carrie Brown, Acting Director, Sustainable Development, Port Metro Vancouver Naomi Horsford, Manager, Community Affairs, Port Metro Vancouver Environment and Parks Committee, Metro Vancouver

Burrard Inlet Mayors and Councils

Trans Mountain Expansion Project

Page 1 of 5

March 15, 2014

Ralph Drew

Mayor, Village of Belcarra

4084 Bedwell Bay Road

Belcarra, BC V3H 4P8

Dear Mayor Drew,

As you are aware, on December 16, 2013 Trans Mountain Pipeline ULC submitted an application

to the National Energy Board (NEB) seeking authorization to build and operate the Trans

Mountain Expansion Project.

The Facilities Application includes environmental and socio-economic assessments, engineering

studies and field studies. It also includes feedback attained from diverse groups of people

interested in the project; presenting the ideas, observations and concerns of First Nations,

stakeholders and government representatives who engaged with us.

Our work will continue, and we look forward to the opportunities for continued dialogue as the

project moves through the NEB process. The NEB will conduct a regulatory review of the project,

including a public hearing on the Application before it makes a decision on the proposed project.

The hearing will allow people or groups who have been granted permission to participate by the

NEB a chance to raise issues, present evidence, test evidence, and provide their input.

Information how to participate in this process is available on the NEB website www.neb-

one.gc.ca.

The purpose of this letter is to confirm some of our mutual interests in developing our proposed

expansion project, and specifically as it relates to our Westridge Marine Terminal and Burrard

Inlet.

Trans Mountain Expansion Project

Email: info@transmountain.com | Phone: 1.866.514.6700 | Website: www.transmountain.com

Page 2 of 5

BURRARD INLET IS A SPECIAL PLACE

Across our organization and in all aspects of our daily work, we are committed to public safety

and protection of the environment. With respect to Westridge Marine Terminal, our objective

remains to operate safe and reliable facilities, and to protect Burrard Inlet from an oil spill.

As it relates to our proposed expansion, Volume 8B of our Facilities Application presents

technical reports on the marine environment including: transportation; commercial aspects;

recreational and tourism use; acoustic environment; ecological spill risk assessment; and human

health risk assessment.

MINIMIZE IMPACT ON OUR NEIGHBOURS

We also believe our neighbours, governments and Aboriginal communities play an important role

in how we conduct our business. Our success depends on earning the trust, respect and

cooperation of all community members. For this reason we have held more than 750 meetings,

63 open houses, 24 workshops and provided extensive communication on multiple platforms to

encourage discussion and education. This effort has brought forward many ideas, comments and

concerns about potential impacts from Trans Mountain’s proposed expansion. This feedback has

supported development of studies, plans and design for the project. Volume 3A of the Application

explains Trans Mountain’s engagement to date with stakeholders, including key topics of interest

or concern.

For example, based on concerns expressed by your community, we have modified our vessel

acceptance criteria to require commitment from vessels calling at Westridge to make efforts to

reduce noise and lighting disturbances. Similarly we have encouraged Port Metro Vancouver to

develop a similar program for vessels at anchor off the terminal.

EMERGENCY RESPONSE TIME IS CRITICAL

Kinder Morgan Canada’s Emergency Management Program (EMP) provides a structured

framework for management and continuous improvement to the EMP in the future. In the event

of an emergency at any of our facilities, we want to ensure a prompt response to minimize

impact to the public and environment.

Volumes 7 and 8 of the Facilities Application reviews in detail the risks related to oil spills,

measures to prevent oil spills and emergency response in the event of a spill. Sample oil spills of

varying sizes have been modeled using computer-based simulations. Spill response in the

region is also currently the subject of review by the Federal and Provincial governments of

Trans Mountain Expansion Project

Email: info@transmountain.com | Phone: 1.866.514.6700 | Website: www.transmountain.com

Page 3 of 5

Canada. We expect the outcome of the spill response regime will be improved by dedicated

resources staged within a study area.

Marine spill response is one part of an overall safety regime that also includes prevention. To

mitigate the effect of increased tanker traffic a number of enhancements are recommended in

Volume 8 of our application which, if implemented, will raise the level of care and safety in the

Salish Sea to well above globally accepted shipping standards. As part of these measures,

Trans Mountain is proposing significant improvements to the oil spill response regime for the

area.

These recommendations for prevention and response enhancements were informed by a

quantitative risk assessment that has been prepared to meet both the requirements of the NEB

review as well as a voluntary review of marine safety that Trans Mountain has requested of

Transport Canada.

The risk assessment considered regional traffic growth, navigational hazards, vessel

construction, and risk controls provided under the existing safety regime. The assessment

quantified the risk of spills from tankers in terms of probable spill volume. Further work was

conducted to assess the fate and behavior of oil in the local marine environment. This included

testing of diluted bitumen weathering and spill trajectory modelling to establish the extent of

potential oil spill effects including those on the environment and human health. This process was

used to identify the recommended enhancements to the safety regime that will reduce the

potential for oil spill accidents and mitigate the risk presented by increased tanker traffic. It was

also used to assess the adequacy of the existing marine spill response planning standards and

recommend enhancements.

Trans Mountain engaged WCMRC to review this work and to describe enhancements to the

existing planning standards that would better accommodate the Project.

The enhanced planning standards for marine spill response described by WCMRC will result in a

response capacity that is double and a delivery time that is half the existing planning standards.

These enhancements will reduce times for initiating a response to a maximum of two hours for

the harbour and six hours for the remainder of the study area and parts of the West Coast of

Vancouver Island. The WCMRC study serves as a practical example of how response capacity

could be enhanced to better accommodate the Project. While recognizing that there are

alternative means to achieve similar results, that further review and consultation is required,

Trans Mountain is supportive of the enhanced capacity and the general means of implementation

described by WCMRC.

Kinder Morgan Canada is also supportive of WCMRC’s efforts to refine their geographic

responses plans. We helped fund a project to gather current information about the shorelines

Trans Mountain Expansion Project

Email: info@transmountain.com | Phone: 1.866.514.6700 | Website: www.transmountain.com

Page 4 of 5

surrounding the Westridge Terminal as part of a program to update local Shoreline Clean Up

Assessment Technique (SCAT) information. SCAT information forms part of the emergency

response plans for both Kinder Morgan Canada and WCRMC.

We are confident that this work will align with the Province’s requirements, specifically to provide

world leading marine oil spill response prevention and recovery systems for the BC coastline and

ocean to manage and mitigate the risks and costs of heavy oil pipelines and shipments.

We encourage you to continue your discussions with WCMRC about maximum response times

and ideas such as developing detailed local area response plans including pre-staging

equipment around the Inlet, which we are very supportive of.

I also want to thank you for your recent constructive feedback about WCMRC’s lack of on-water

home base. We are supportive of ensuring the most efficient response possible, and agree that

water access is an important consideration. We are working with WCMRC to augment their

existing capacity. As part of the solution we will provide them dedicated storage and moorage

space at our expanded Westridge Marine Terminal.

In addition to these initiatives, as the design of the Westridge Marine Terminal is refined in the

coming months detailed specifications for response equipment will be developed. Ensuring

efficient and immediate response is a mutual objective and important part of safe operations. The

type of boom considered for the Westridge Terminal will meet high global standards for

emergency response.

POSITIVE LEGACY

We recognize that our proposed expansion project will impact many communities. From the start

of our project, we set out several principles for stakeholder engagement. One of these is mutual

benefit. We seek solutions to challenges that result in shared benefits for all interests. Through

our engagement to date, we have sought input from stakeholders about environmental and

socio-economic effect and meaningful local benefits in those communities our project will impact.

Based on input to date, among other things, future engagement plans will include sharing

detailed information on economic impact and community opportunities.

Trans Mountain Expansion Project

Email: info@transmountain.com | Phone: 1.866.514.6700 | Website: www.transmountain.com

Page 5 of 5

Thank you for your continued interest in our proposed project. We look forward to continuing to

work collaboratively with your community.

Should you have any questions or wish to discuss further, please contact Lexa Hobenshield at

604.809.9869 or lexa_hobenshield@Kindermorgan.com.

Sincerely,

ORIGINAL SIGNED BY

Mike Davies

Senior Director, Marine Development

.cc Kevin Gardner, WCMRC

  December 2, 2013. Kinder Morgan Canada 2844 Bainbridge Avenue P.O. Box 84028 Burnaby, BC, V5A 4T9 Attention: Ian Anderson, President Dear Mr. Anderson,

Re: Kinder Morgan’s Emergency Response Plan for Oil Spills in Central Burrard Inlet We write to again express concern about Kinder Morgan Canada’s (KMC) inadequate emergency response plan for dealing with potential oil spills in Burrard Inlet, and KMC’s unsatisfactory response to the previous questions raised regarding the 2007 oil spill. Specifically, KMC’s contract with Western Canada Marine Response Corporation (WCMRC) should ensure a timely response to potential oil spills, and also ensure effective containment strategies for the protection of the sensitive marine habitat of Central Burrard Inlet. During the 2007 oil spill in the vicinity of KMC’s Westridge Marine Terminal (WMT), WCMRC did not respond in a timely manner, notwithstanding that WCMRC facilities were located immediately adjacent to the location of the spill. WCMRC response vessels took considerably more than an hour to arrive onsite and initiate oil spill containment measures. WCMRC will only commit to a maximum response time of six hours for oil spills within the Burrard Inlet — the duration of a full tidal cycle — which is an unacceptably long response time. KMC’s current emergency response plan is seriously deficient by not requiring response by WCMRC vessels to oil spills in Burrard Inlet within one hour of a spill being reported. The 2007 oil spill also demonstrated that the containment booms used by WCMRC did not fully contain the spilled oil and also were inadequate in sealing spills on the rocky tidal shore, another issue that has been previously raised that neither KMC nor WCMRC have acknowledged or addressed. The summer weather, daylight conditions and proximity to WCMRC response vessels during the 2007 oil spill incident could not have been any better for an oil spill response, yet there was a considerable amount of unrecovered fugitive oil that contaminated the beaches around Burrard Inlet. Pre-Staged Oil Spill Booms Other jurisdictions in the world often address the issue of ‘timely response’ through the use of oil spill equipment caches coupled with pre-staging of oil spill booms for quick deployment in the event of an accident. Such pre-staging of emergency oil spill equipment significantly reduces the response time needed to deploy oil spill containment booms utilizing other procedures.

…page two

Ian Anderson, President, Kinder Morgan Canada December 2nd, 2013. Page two, continued KMC should also employ a pre-staging strategy for the protection of the sensitive marine habitat of Central Burrard Inlet east of the second narrows; namely, protection of those sensitive marine habitat areas surrounding KMC’s Westridge Marine Terminal. In this regard, three pre-staged oil booms would be the obvious strategy to implement (see attached graphic): 1. Port Moody Arm – An oil boom pre-staged at the west boundary of Barnet Marine Park

could be quickly deployed across the entrance to Port Moody Arm and tethered to a pre-installed anchor at Admiralty Point to isolate the east arm of Burrard Inlet;

2. Indian Arm – An oil boom pre-staged at Roche Point could be quickly deployed across the entrance to Indian Arm and tethered to a pre-installed anchor at Admiralty Point to isolate the north arm of Burrard Inlet which includes Cates Park and Belcarra Regional Park;

3. Maplewood Flats – An oil boom pre-staged at Roche Point could be quickly deployed in an east-to-west alignment to protect the Maplewood Flats Conservation Area utilizing three or four pre-installed anchor buoys as tether points to hold the oil spill containment boom in position.

In keeping with the objective of ‘World Class’ standards for oil spill emergency response measures, we strongly recommend that Kinder Morgan Canada give serious consideration to the foregoing strategy of pre-positioned and deployment-ready (cached and pre-staged) oil containment booms that can be quickly deployed by KMC to isolate and protect the sensitive marine habitat areas of Central Burrard Inlet in the event of an oil spill. In addition, we also recommend that KMC’s contract with WCMRC specify a maximum response time of one hour for oil spills within Burrard Inlet, and also specify that WCMRC commit to utilizing ‘best available technology’ for oil spill containment and cleanup. KMC’s proposal to increase oil tanker traffic at KMC’s Westridge Marine Terminal from one tanker per week to one tanker per day — a seven-fold increase in frequency and risk — warrants a proportional increase in KMC’s emergency response planning and infrastructure. Kinder Morgan’s fullsome response to the foregoing would be appreciated by all of the communities located around Burrard Inlet. Sincerely,

Ralph Drew, Mayor Village of Belcarra RED/ cc: Hon. Lisa Raitt, Minister, Transport Canada Hon. James Moore, MP, Port Moody–Westwood–Port Coquitlam Gaétan Caron, Chair and CEO, National Energy Board of Canada Greg Toth, Senior Project Director, TMEP, Kinder Morgan Canada Michael Davies, Director, Marine Development, Kinder Morgan Canada Lexa Hobenshield, Manager, External Relations, Kinder Morgan Canada Kevin Gardner, President, WCMRC Robin Silvester, President and CEO, Port Metro Vancouver

Darrell Desjardin, Director, Sustainable Development, Port Metro Vancouver Laura Strand, Manager, Aboriginal Affairs, Port Metro Vancouver Naomi Horsford, Manager, Community Affairs, Port Metro Vancouver Environment and Parks Committee, Metro Vancouver

Burrard Inlet Mayors and Councils

 

Aerial view of Central Burrard Inlet showing proposal for pre-staged isolation booms to protect sensitive habitat areas.