Linking Canada’s World Class Resource To New, Large and Growing Markets June 2012

Getting to know Enbridge – Socially Neutral Footprint A tree planted for every tree removed An acre conserved for every acre disturbed Generate a kilowatt of renewable energy for every kilowatt used in operations Renewable Energy Assets grown to $3 billion GHG emissions reduced 21% from 1990 to 2010 Ride to Conquer Cancer

New Market Access Required to Earn Full Value Energy Landscape Global Demand Growth Up US Consumption Down NA Supply Up Canada captive to US Market Transportation Bottlenecks

Northern Gateway – The Opportunity Demand: *Through 2030 Asia Pacific region will experience compound annual growth of nearly 2%, contrasted with the declining demand for oil in North America *2012 BP Energy Outlook North America Asia Pacific 2326 *2010 Crude Oil Consumption [million bpd]

Asia $89 $10 2 $11 3 Alberta Light WCS Bakken Light Brent Maya Note: Pricing reflects 2012 year to date averages Price Signals For Infrastructure Development $88 $10 9 $75 $13 Natural Gas Light Crude Heavy Crude $11 3 LLS $2 $3 $96 WTI 6

6 MERCATOR MAP FROM KARO Canada’s west coast is a competitive advantage

7 Ma jor Scope Items: 1,177 km crude oil and condensate pipelines Marine terminal $6.4 billion project Targeting 2018 in-service Pipe Design: 525,000 bpd crude oil 193,000 bpd condensate Kitimat Terminal: 5 million barrels of storage 2 berths VLCC ready The Project

Canadian National Benefits are Extensive Direct, Indirect & Induced $312 billion in GDP uplift over 34 years $98 billion in tax revenues 26,700 average annual person years of employment $70 billion in labour income 8

Benefiting British Columbia 7 Construction Phase –35,000 person-years employment / $2.5B in labour income –$165 million tax revenue to Government of BC –$800 million in goods & services sourced in northern BC Ongoing Operations –560 long-term jobs with $32M/year of labour-related income –165 long-term jobs and $17M/year in wages in Kitimat –$1.2B in tax revenue for Government of BC over 30 years Direct, Indirect plus Induced Benefits ‒ 140,000 person years employment (almost 7,700 jobs) ‒ $55B increase in GDP ‒ $9B Government Revenue for BC, +$5B in transfers = $14B * Wright Mansell Report

Why Is It Controversial? Opposition to oil sands First oil pipeline to the northern BC coast Unsettled BC Aboriginal land claims and concerns regarding impact on rights and traditional way of life BC risk / reward –Crossing world class rivers –Previous tanker/offshore spills = public concerns Detailed Design Approvals 10

Enbridge – Safety & Integrity Objective is to be top quartile or best Integrity management Leak detection Incident response Worker occupational safety Public safety / environmental protection Pipeline integrity 2,500 integrity digs 138 inline inspection tool runs $2.9B integrity investment - since 2002

Priority One: Focus on Operations * Based on mandatory reports to PHMSA of accidents and infrastructure, billion barrels delivered since % successful delivery rate 2011 spill volume frequency was lowest on record Still not good enough – target is zero incidents Enbridge Pipeline Safety Track Record 10

Improvements in Pipeline Safety Route and watercourse crossing selection Stringent steel chemistry & strength testing Fusion bond epoxy coated pipe used & inspected Every weld will be inspected during construction Cathodic protection prevents corrosion during operation Enhanced protection: thicker steel, shut-off valves Pipe hydrostatically tested 24/7 monitoring from control center Routine aerial reconnaissance of pipeline ROW Increased monitoring with in-line inspection tools Strategic emergency storage minimizes response time Control center 13

Existing Tanker Routes & Tanker Exclusion Zone 14 9

Measures exceed regulation & current practice Regulatory Requirements: Double hulled ships / multi compartment BC pilots (plus redundant nav-aid systems) Emergency preparedness and response planning Enhancements to Safety: Tanker route simulation Improved navigational aids, new radar Vetting of ships and crew Weather monitoring criteria for ship transit Reduced vessel speeds in marine channels Tug escort operations (tethered towing) Closed loading and containment booms TERMPOL review completed Whale monitoring vessel 15

16 Broad Aboriginal & Community Consultation

Aboriginal benefits are unprecedented Environmental safeguards paramount Consultation Capacity Funded Equity ownership –10% –Structured to access credit Procurement –$300 Million targeted –Based on Enbridge experience –Depends on First Nation capacity Employment & Training –15% construction target –Work with prime contractors Tax on reserve land Environmental stewardship & monitoring Aboriginal Business Summit 17

Contribution to Stable Economies & Communities Petroleum transportation infrastructure can co-exist with and make positive contribution to:  coastal region & community economies  economies based on fishing, aquaculture, tourism Evidence provided by Bay of Fundy, Newfoundland, Scotland, Norway, etc. Success results from Triple Bottom Line approach i.e. viewing project risks and benefits through three “lenses”: 18 Economic Environmental Social

Public joint regulatory review (JRP)* led by: Canada’s National Energy Board (NEB) –Economic & technical feasibility, socio-economic & environmental protection Canadian Environmental Assessment Agency (CEAA) –high-quality environmental assessments in support of sustainable development Additional agencies, including: Transport Canada Department of Fisheries and Oceans Indian and Northern Affairs Natural Resources Termpol report on marine safety and accident prevention The proponent is proposing to implement safety measures that exceed national and international regulatory frameworks for vessel safety and operations. 19 Rigorous, fair and open public review process

Efficient Regulatory Timeline Required 20 Regulatory Application Filed (May 2010) NGP In-Service Date gatewaypanel.review-examen.gc.ca Community Hearings cont The above timeline is illustrative and subject to change Construction JRP community review of Issues and required additional information Community Hearings (started Jan 10, 2012) Final Hearings (started Sept 2012) Information Requests (Aug 25 to Nov, 2011) Regulatory Decision / Detailed Engineering Deadline to Register for Oral Stmts Oct 6, 2011 Deadline for Letters of Comment Aug 31, 2012 JRP is a quasi-judicial, independent tribunal

Path Forward Examination of facts & science objectively World class spill prevention & response Decision of project determined by an independent, public review Approval of project with conditions promoting reconciliation Role for environmental organizations in research & monitoring NEB & Transport Canada detailed design approvals 21 * Energy supports our quality of life, and can improve the quality of life for others

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