1. Moving Towards Asset Management Excellence
Ruth Hook
Manager Asset Management | Union Gas Ltd.
CNAM 2014 Conference
Toronto, Ontario
May 20-23, 2014

2. Agenda Welcome Union Gas – An Overview
Asset management – Canadian Gas Association
Asset Management – Union Gas
Q&A

3. Union Gas
Major Canadian natural gas storage, transmission and distribution company based in Ontario
Over 100 years of experience and safe service to customers
Dawn Storage facility – largest underground storage facility in Canada
Dawn Hub, one of the top-5 physically traded hubs in North America
Assets of $6.4 billion, ~1.4 million customers, ~2,200 employees
One of Canada's Top 100 Employers for
A Spectra Energy (NYSE: SE) company
Retail Customers
1.4 million
2013 Pipeline Throughput
1.402 Bcf
Distribution Pipe
63,540 km / 39,480 mi
Storage Capacity
156 Bcf
Transmission Pipe
4,785 km / 2,980 mi
Figures as of December 31, 2013.

4. Spectra Energy’s Diverse Portfolio of Assets
Connecting the largest diverse markets with growing supply
Gas storage facility
Gas processing plant
Propane terminal
NGL storage
Shale gas formations
Crude storage
Major oil pipeline terminal

5. Natural Gas System
This diagram shows simply how a natural gas system operates.
Highlighted in the top section is what is known as the production, storage and transportation end of the natural gas system.
Natural gas is pumped out of the gas wells and moves to a compressor station where it can be either put into storage or it can enter the transmission system.
Union Gas owns the largest underground natural gas storage facility in North America located near Sarnia. We are not in the business of natural gas production and do not operate any producing wells. We purchase gas from producers and pass it through to our customers without mark-up.
Highlighted on the bottom half of this slide is what is known as the distribution portion of the natural system at Union Gas.
From the transmission system, the gas is distributed throughout the province through gate stations. Gate stations are generally located just outside the city that it is serving. At the gate station, the gas pressure is reduced to between 1210 kPa and 3450 kPa (175 psig and 500 psig) depending on the system downstream.
Downstream of the gate station are located distribution stations with regulators to further reduce the pressure to 420 kPa (60 psig).
From these stations, the gas then flows to the end-users of the gas (homes and businesses). At the customers meter set, another regulator reduces the gas pressure even further to a rate that is safe for use in the home (1.75 kPa or 0.25 psig).

6. Asset Management Canadian Natural Gas Industry
In 2007, the Standing Committee on Operations (SCO) of the Canadian Gas Association (CGA) formed the Asset Management Task Force
The Canadian Gas Delivery industry saw the need for collaboration on shaping asset management in order to meet the needs for public safety, managing costs, developing process improvements through best practices, and reducing regulatory risks
The Task Force produced a ‘Guiding Document on Asset Management’ to provide practical recommendations for implementing asset management.

7. Canadian Gas Association Guiding Document on Asset Management Distinguishing Elements
Asset Health Review
Asset Management Ranking Mechanism
Capital Optimization
Long Term Capital Planning
Life Cycle Costing
Maintenance Optimization
 Asset Hierarchy / Asset Inventory / Health Metrics
 Optimal Maintenance / Balance Performance, Risk and Spend
Investment Ranking Methods and Tools / Finance, Risk, Strategy
Assess Total Life Cycle Cost
Selection Method for Capital / Maximize Contribution to Corp Objectives / Balance Performance, Risk and Spend
Long Term Capital Needs of Assets / Support Growth, Replacement and Op Performance

8. Operations Management System Striving for Excellence
Systematic, coordinated activities to ensure compliance and to drive continual improvement towards operational excellence
Support conducting business in a manner that protects the environment and the safety, health and security of our employees, contractors, customers and the public
-Hwy to operational excellence
Building on strong foundation of existing programs

9. Union Gas OMS Asset Management is a Key Element
Act
Plan Do
Check
Checking & Corrective Action
Performance Measurement & Audit
Incident & Non-conformance Management
Records Management
Continual
Improvement
OMS Policy
Implementation & Operation
Competency and Training
Communication
Contractor Management
Project Management
Emergency Preparedness
Document Management
OMS Planning
Organization, Responsibilities & Accountabilities
Risk Management
Asset Management
Legal & Other Requirements
Objectives and Targets
OMS Review
Management of Change
Management Review

10. Management System in Place
Union Gas Focus:
Maturing Operations Management System
Minimum
Compliance
Program
Developing
Management System in Place
Continuously
Improving
Incident Risk
Management committed to “safe operations”
Rules/procedures drive decision-making
Supervisor-led work culture
Focus of corrective action for deviations is punishment
Focus is risk-based systems and processes that drive consistent, reliable performance
Leaders communicate expectations and goals and seek to hear all news, good and bad
Clear accountabilities and rigorous competency assurance
Management focus is building and sustaining a zero incident organizational culture
Management and staff embrace operational discipline as key to assuring human performance (“processes executed the right way every time”)
Employees and teams take ownership of processes; work teams share learnings and best practices
Metrics, audits, and management review become tools for predicting failures and improving (rather than “gotchas”)
Lack of management involvement
Safety is delegated down in the organization
Cost and minimum compliance standards drive decision-making
“Zero incidents too expensive”
“Zero incidents a concept only”
“Zero incidents a distant goal”
“Zero incidents part of the job”
Reactive Proactive Predictive

11. Asset Management at Union Gas
Focus is our Natural Gas Infrastructure
Pipes, Compressors, Metering and Pressure Control Stations
Building Strategies and Plans
2007  Identified as a Key Program within out Operations Management System
2012  Established an Asset Management Vision and a Multi-Year Roadmap
Asset Management Projects to Build our Program
Organization Structure - New Role – Asset Management
2014  Continue to Build
Technology
SAP EAM implementation
Data
Integrating Asset Data Systems
Strategy
Senior Management Endorsement - Asset Management Policy
Building the Program - Asset Registry

12. Questions? Contact Me: Ruth Hook Manager Asset Management
Union Gas Ltd.