Track # SHAW ENVIRONMENTAL © 2006 The Shaw Group 4171 Essen Lane Baton Rouge LA USA

2 Track # SHAW ENVIRONMENTAL Mutual Gains Approach for Pipeline Operations, Expansion and Replacement Restoring Trust in Pipeline Safety Pipeline Safety Trust – November 2, 2006 Susan Waller Oil & Gas Sector Lead

3 Track # US Energy Use Today Americans spend one million dollars on energy every minute. Heating 49% Cooling 6% Water heating 15% Refrigeration 5% Cooking 3% Dryers and Washers 3% Lighting 7% TVs & PCs 2% Other Uses 10%

4 Track # Mutual Gains Approach Objective: Consult and inform stakeholders in timely and informative manner while meeting the US energy needs.

5 Track # Mutual Gains Approach Stakeholder Outreach Components Mutual gains approach Internal collaboration Internal training External consultation Educational materials

6 Track # Mutual Gains Approach Organize a pre-project educational campaign Promote confidence among stakeholders in the pipeline operator and the operator’s expertise Listen to stakeholders concerns Respond promptly to all inquiries and concerns Provide continual education and informative sessions Pursue “Good Neighbor” approach

7 Track # Internal Collaboration Create a project team -Project Manager- Right-of-way -Engineer- Government Affairs -Environmentalist- Regulatory Attorney -Field Operations- Media Relations Provide project details to the team Determine key messages

8 Track # Internal Collaboration Develop project overview and pipeline information materials Conduct Community Communications Training Designate representatives to communicate with stakeholders Draft public notifications early and route for accuracy

9 Track # External Consultation: Community Relations Speak with local, state and federal officials Consult with affected landowners Meet with community leaders and special interest groups Contact and inform the media Communicate openly with interested parties (Homeowner’s Associations, etc.)

10 Track # External Consultation: Community Relations Notify stakeholders of planned open houses Hold open house meetings with local officials, communities and media Look for creative solutions to resolve issues – “Mutual Gains Approach”

11 Track # Educational Materials Community information packets –Project summary –Location map –Company description –Safety information for landowners, public officials and others –Toll free or local phone number Company web site Public awareness brochures –Inside a natural gas compressor station –Safety First –Emergency Response Dig Safely material FERC and DOT/PHMSA documents

12 Track # Stakeholder Outreach Approach Mutual gains approach Internal collaboration External consultation Educational materials Lessons learned – After Action Review

13 Track # Thank you Susan Waller Shaw Group (713)