1. Resource Development Council 22nd Annual Conference November 29, 2001 Anchorage, Alaska Pipeliners Adding Value Wayne Sartore Vice President Northern Pipeline Development Enbridge Inc.

2. Enbridge: North & South America

3. Energy Value Chain Exploration & Production Gas Treatment Pipeline Transportation End User Enbridge

4. Customer Service Customer requirements – Safety Excellence – Environmental Stewardship – Cost Effective – Reliability of Operation – Stakeholder Relations – Creative and Innovative – “World Class” Service

5. Prudhoe Bay Inuvik Norman Wells Anchorage Whitehorse Yellowknife Edmonton “Northern” Pipeline Challenges Unique “Northern” P/L Issues n Capital Cost n Geography, Remote Access n Permafrost Enbridge Northern Expertise n Norman Wells Pipeline n Inuvik Gas Experience Applied to the Future n Sub-surface construction in permafrost n Pipeline integrity monitoring n Innovative cost reduction opportunities Enbridge is route neutral

6. Northern Expertise n Built 1985  only major pipeline in NWT Right-of-Way =869 km(540 mi) Pump stations = 3 Pumps = 6 Employees = 20 2000 payroll = $1.5M 2000 capital costs = $568,000 2000 property taxes = $1.4M 2000 power costs = $760,000 Alaska Inuvik Norman Wells Zama Norman Wells Pipeline

7. Northern Expertise Cdn $44 million project: Two wells Production facility 50 kilometre pipeline 25 km distribution system 500th customer Aug. 2001 Owners Inuvialuit Petroleum Corp. AltaGas Services Enbridge n Involved in production, processing, transmission and distribution of northern natural gas to town of Inuvik. Alaska Inuvik Norman Wells Zama Inuvik Gas

8. n Integrity Management in permafrost –Geo-pig Northern Pipelines - Operations % Strain vs. Time for Slope 92 0 0.5 1 1.5 2 2.5 3 3.5 1988199019921994199619982000 Year Strain

9. Northern Pipelines - Operations n Geo-pig n scheduled pipeline repair

10. Northern Pipelines - Maintenance n access equipment n pipeline repair techniques

11. The “Measured Approach” Build two smaller lines “consecutively” in the same right-of-way

12. The “Measured Approach” BENEFITS –Cost estimates 48-inch vs. 2x36-inch within 7% –Reduced project risks –Socio-economic benefits –Improved schedule for first gas to market –Pipeline capacity better matched to market needs Build two smaller lines “consecutively” in the same right-of-way

13. Success requires: n Continental decision-making n Robust project economics n A Producer decision to proceed n Common understanding n Cooperation of all stakeholders

14. Resource Development Council 22nd Annual Conference November 29, 2001 Anchorage, Alaska Pipeliners Adding Value Wayne Sartore Vice President Northern Pipeline Development Enbridge Inc.