Algonquin Incremental Market (AIM) Project

Overview

Energy

Spectray

The Algonquin Incremental Market (AIM) Project will provide the Northeast with a unique opportunity tosecure a costeffective, domestically produced source ofenergy to support its current demand, as well as its future growth, for clean burning natural gas. The Project, an infrastructure investment that expands the pipeline capacity ofSpectra Energy's existing Algonquin Gas Transmission system, will allow abundant regional natural gas supplies from the Appalachian basin toflow reliably into the Northeast, helping to meet the increasing demand from home heating and electric generation while lowering energy costs. The Project facilities will be constructed largely within Algonquin's current footprint to minimize impacts to landowners,
communities and the environment.
AIM Project Facilities
Rjmapo to Pts East 342.000 Dlh/d
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Location:

New York, Connecticut,

Rhode Island, and
Massachusetts

Scope: (See details below) Capacity: Up to 342,000 dekatherms per day Ownership Interest: 100 percent Spectra Energy Full Project Completion Date:
November 2016
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AIM Project- 342.000 Dlh/d Facilities Diagram Rev: 12-September-2013

Currently Proposed Facilities on Spectra Energy's Algonquin Gas Transmission system

The Project is still inthe development stage; facilities currently proposed include: Construction of approximately: o 19.6 miles of 42-inch diameter mainline take-up and relay pipeline in Connecticut and New York (includes a new 1.2 mile horizontal directional drill crossing of the Hudson River in New York); o 9.1 miles of 16-inch diametertake-up and relay pipeline in Connecticut; o 1.4 miles of 12-inch diameter loop pipeline in Connecticutand Rhode Island; o 2.1 miles of 36-inchdiameter loop extension pipeline in Connecticut; and o 4.8 miles of new 16-inch and 24-inch diameter lateral pipeline in Massachusetts Addition of six new compressorunits, fora total of 72,240additional horsepower, at five existing compressorstations in
New York, Connecticut and Rhode Island
Construction of one new meter station in Connecticut and two new meter stations in Massachusetts

Modifications to existing meterstations in New York, Connecticut and Massachusetts

For more information, visit www.spectraenerqy.com.
09O5/2013

Spectra Energy
What Is a Natural Gas Transmission Pipeline?
Anatural gas transmission pipeline is used to transport large volumes of natural gas over long distances to major markets. Natural gas is introduced into a pipeline transmission system at various points such as liquefied natural gas (LNG) terminals, processing plants near supply fields,
and interconnections with other natural gas transmission

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into service. During hydrostatic testing, the pipeline is filled with water and pressurized to levels greaterthanthe maximum allowable operating pressure. The test pressure is maintained for a minimum of eight hours to confirm the
integrity of the pipeline.

pipelines. Natural gas is then compressed to make it move at high pressure through the pipelines. Transmission pipelines deliver natural gas to local distribution companies, which distribute the product through their regional or municipal networks to homes and businesses for heat and energy. The transmission pipeline also delivers natural gas directly to large industrial end-users, including electric generating facilities. There are presently more than 300,000 miles of natural gas transmission pipelines across the United States. By definition, an interstate transmission pipeline crosses
one or more state boundaries. The U.S. Department of

Our pipelines are generally installed with a minimum of three feet of cover on top of the pipe. One foot below natural grade, we install a bright yellow warning ribbon reflecting the location of the pipeline to notify potential excavators. When initially siting the pipeline, we determine the project requirements and obtain as much information as possible from detailed mapping and otherdata sources that depict existing utility corridors, sensitive environmental areas,
residences and other land uses. We use these resources to

develop a studycorridor and then contact landowners along the corridor to request permission to survey their properties.
The surveys allow us to locate specific environmental and cultural resources as well as significant land features or

Transportation exclusively governs the safety standards

for the design, construction, and operation of an interstate

structures which further define the pipeline routing within

the study corridor.

transmission pipeline. The interstate pipeline can only be constructed and operated after receiving a Certificate of Public Convenience and Necessity from the Federal Energy RegulatoryCommission. The pipeline is built of high-strength carbon steel and is coated with fusion-bonded epoxy, a corrosion-resistant, nonconductive resin that forms a waterproof seal around the pipe. Coating on the entire pipeline is electronically inspected before the pipeline is placed into the ground. During construction, pipe sections, approximately 40 feet in length, are welded together, then visually inspected and nondestructively tested to verify the integrity of the weld. The pipeline is cathodically protected when it is placed in the ground. Cathodic protection is the process of applying a safe, low voltage direct current to all surfaces of the pipeline to prevent corrosion. Agrounding system is installed to protect the pipeline in areas where it parallels high-voltage electric
power lines.
pipeline marker

top of pipeline
is buried a

minimum of
3 feel below the surface

waterproof coating
high-strength carbon steel pipe in
various diameters

low-voltage current
to prevent corrosion

As an additional safety measure, the pipeline is hydrostatically tested at high pressure before being placed

Formore information, visit www.spectraenergy.com.

Spectra Energy
Operational Safety
To ensure our pipelines remain in safe and reliable operating
condition, we employ a number of techniques - from hightech monitoring at ourgas control centers to foot patrols of pipeline rights-of-way.
Gas Control

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Rectifiers and Cathodic Protection

Rectifiers are devices that transfer a regulated amount of current flow to the pipelines. Rectifiers receive electric current from AC sources like power lines. We check all rectifiers along the pipeline system every two (2) months to ensure they are operating properly. Proper electric current flow along the surface ofa pipeline impedes corrosive activity and prolongs the useful life of pipelines for many decades. The amount of current applied to the pipelines is harmless to humans, animals and plant life. Above/Below Ground Coating Maintenance Pipeline facilities above and below ground are protected bya coating, applied undervery exacting conditions, that inhibits corrosion. Routine visual inspection of all aboveground facilities is conducted todetermine if any coating damage or deterioration has occurred and, ifso, to repair the coating. When underground pipeline facilities are exposed, usually due to excavation or maintenance activities, we always inspect the coating for damage or deterioration.
Internal Pipe Cleaning Maintenance of the inside ofthe pipeline is as important to
a prudent natural gas pipeline operator as the maintenance

Gas Control, our high-tech computer control center, monitors the flow of natural gas throughout our more than 14,000 miles ofU.S. pipelines. Staffed 24 hours a day, seven days a week, the center collects data from all of these pipelines so that we always know what is happening along our system. In addition to monitoring the flow of the natural gas with the use of Supervisory Control and Data Acquisition (SCADA), we monitor pressures and temperatures as well as the operating status of all the pipeline facilities. Gas Control monitors and reacts to equipment anomalies and, when necessary, dispatches employees who live and work along the pipeline
to respond. As an added safety measure, remote control

equipment is installed along the pipeline system, enabling us

to operate valves remotely from Gas Control.
Gas Measurement

We precisely measure the quantity of natural gas when it is received at thousands of points along the pipeline from producersand at interconnections with other cross-country pipeline operators.We also measure the gas when it is delivered to local distribution companies, power plants and large industrial facilities. We constantlysample the natural gas at many sites to identify potential corrosive components and to ensure a high standard of quality is maintained. Compressor Station Operations As natural gas flows through a pipeline, the pipeline pressure
will decrease due to friction and elevation differences. To

of the outside. Our pipeline facilities are cleaned to minimize internal corrosion and maintain high-flow efficiency. Cleaning is conducted using devices called "pigs" that travel inside designated sections of the pipeline and remove liquids and debris from inside the pipe. Inline Inspection Our pipelines pioneered many of the inline inspection techniques currently in use by the industry. These inline inspections are performed with "smart pigs" - mechanical toolsthat enable us to examinethe pipelines from the inside. Smart pig inspections provide us with valuable information, locating possible internal and external corrosion or other irregularities of the pipeline so they can be monitored and repaired as needed.

maintain pipeline flow and pressure, compressor stations are located along the pipeline route. Our experienced and well-trained employees operate over

100 compressor station sites around the clock- with nearly

two million horsepower in the United States.

(continued)

Formore information, visit wvAV.spcctraenergy.com.

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Ground Surveys

Wepatrol pipeline rights-of-way in populated areas and some other areas of intereston foot and byvehicle. Ground surveys can reveal leaks and other potential problems, enabling us to quickly repair the problem and minimize impact.
Leak Surveys

Right-of-Way Maintenance Right-of-way maintenance is important to us because it makes the location of our pipelines clearly apparent to the public and to any other individuals who mightconsider
excavation in the area.

We routinely perform leak surveys on all ofour facilities. Leak surveys lookfor fugitive emissions of natural gas so we can take action to eliminate them. Many miles of the pipeline are surveyed with ground surveying techniques and aerial patrols are also used. Our records show that natural gas
leaks rarely occur on our pipelines.
Aerial Patrols

Mowing and clearing the right-of-way allows us to patrol the area byground and air to discoveractivity that could lead to pipeline damage. It also allows the companyto easilydiscoverleaks and natural earth movement that could damage the pipeline facilities. Sign/Marker Maintenance We place markers andsigns along pipeline rights-ofway to inform the public ofthe presence of the natural gas pipelines. The markers are placed at street and road crossings, railroad crossings and othersignificantly visible points along the right-of-way to reduce the possibility of
damage to or interference with the pipeline.

Company planesconduct aerial patrols of the pipeline rights-of-way at least once a week (in some places, as often as three times a week). Aerial patrols provide a bird's-eye view of the rights-of-way and surrounding areas. The pilots look for ground changes, construction activities, or other
conditions that could affect the pipelines.

Waterway Inspections
Locations where the pipeline crosses waterways are

In densely populated areas, we frequently place the markers within "line of sight" proximity - this means the markersare so close togetherthat you can see from one marker to the next. Markers and signs include our name and the phone
number to call if any abnormal condition or suspicious activity is detected that would threaten the integrity of the pipeline. In addition, one foot below natural grade, we install a bright

inspected at the surface every year byour employees to

check for bank erosion, visible pipeline exposure, and natural

gas leaks indicated by bubbles. Many waterway crossings are inspectedat the bottom of the waterwayeach year by
contract divers under our direction. These divers determine

yellow warning ribbon reflecting the location of the pipeline to notify potential excavators of the pipe's location.

if the pipeline is adequately covered. If the pipeline does not have adequate cover, any coatingdamage is repairedand the pipe is re-covered with grout bags or other suitable material.

Spectra Energy
Inside a Natural Gas Compressor Station
Natural gas is highly pressurized as it travels through the interstate pipeline system. To ensure that the gas continues to flow optimally, it must be periodically compressed and pushed through pipelines by 700 to 1,600 pounds per square inch of pressure. Over distance, friction and elevation differences slow the gas and reduce pressure, so compressor stations are placed about 70 miles apart along the pipeline to give the gas a "boost." These stations operate day and night,year-round to push re-pressurized gas through the pipelines. Safety Systems Compressor stations integrate a variety of safety systems and practices to protect the publicand station employees and property. For example, every station has an emergency shutdown system that stops the compressor units and isolates and vents the compressor station gas piping.

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Paragraph numbers belowcorrespond with the numbers in

the illustration.

1. Station Yard Piping Station yard piping moves natural gas between the pipeline
and compressor station.

2. Filter Separators / Scrubbers

Filter separators or scrubbers remove any solidsor liquids from the natural gas that enters the compressor station.
3. Compressor Units

The compressor station runs compressor units sufficientto re-pressurize the volumeof gas flowing through the pipeline. 4. Gas Cooling System When natural gas is compressed, its pressure and temperature increase. The gas may be cooled before its return

Regulations require that compressor stations periodically test or perform maintenance on the emergency shutdown system to ensure reliability. During the shutdown, natural gas in the
pipeline is routed around the station. (For more information, see Compressor Stations and EmergencyShutdowns document)
Personnel

to the pipeline to protect the pipeline's inner coating and increase its transmission efficiency.
5. Lube Oil System

Compressor units have lube oil systems to lubricate, cool and

protect the moving parts.

6. Mufflers (Exhaust Silencers) Mufflers decrease the volume level of compressor units to
meet federal, state and local standards.

All compressor stations are monitored - and some are

even controlled remotely- by highly trained personnel at a centralized gas control center. Experienced personnel operate and maintain the station equipment and pipelines. KeyComponents
A typical compressor station consists

7. Fuel Gas System Atmost stations, compressor unitsare fueled bynatural gas from the pipeline, though some are driven by largeelectric
motors.

of yard piping and compressor

unit(s), a gas or electric power

8. Backup Generators

Backup generators stand ready in case of an electrical outage.

source, safety systems and personnel, all working

together for the
safe and efficient transmission of

natural gas.

For more information,

visit www.spectraencrgy. com

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Spectra Energy
Compressor Stations and Emergency Shutdowns
Compressor stations play an important "push" role in moving
natural gas through a vast interstate pipeline network.

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On its journey from production to end user, natural gas is

compressed and pushed along delivery systems by 700 to 1,600 pounds per square inch of pressure. Over distance, friction and elevation differences slow the natural gas and reduce the pressure. Strategically located compressor stations maintain the pressure and velocity of the natural gas by giving it a much-needed "boost."

An emergency shutdown is a very rare occurrence, but one for which we are well-prepared. In the event of a shutdown, local public safety and/or emergency management officials are immediately notified and thoroughly briefed so they may
respond to questions and concerns as needed.

Frequently Asked Questions

Compressor stationsare highly regulated facilities that must meet rigorous safety standards established by the Federal Energy Regulatory Commission and the U.S. Department ofTransportation. Spectra Energy's compressor stations integrate a variety of safety systems and practices designed to protect the public, our employees and our property.
Every compressor station is equipped with a state-of-the-art emergencyshutdown system that automatically and safely halts operationwhen the slightest irregularity is detected. The emergency shutdown system stops the compressor units, then isolates the compressor station piping and releases the natural gas from within the station into the atmosphere in a safe and controlled manner. In addition, all emergency shutdown systems are fully tested annually per Department ofTransportation regulations.
Typical Compressor Station Depicting Emergency Shutdown

The following questions and answers are designed to help our compressor station neighborsunderstand exactly what happens during an emergency shutdown: Q: What causes an emergency shutdown?
A: Naturalgas and flame sensors, located inside the

compressor building, constantly monitor the station. If a problem is detected, the emergencysystem will activate automatically in order to protect the community, station personnel and facility. Q: Is thisall done by computer?
A: Yes, but there are also manual shutdown buttons

strategically placedthroughout the facility which can be activated by station operators. Every one of our compressor stations is operated and maintained by highly skilled, experienced personnel trained to safely maintain the station and its r pipelines. . ,. ., r (continued)

natural Gas

Fuel Gas

Lube Oil

Muffin

Formore information, visit www.spectraencrgy.com.

0V2W2013

Q: What willIhear whenan emergencyshutdown occurs?

A: You will hear a very loud noise often compared to the

sound of a jet engine or a freight train.The sound will last anywhere from one to four minutes. Thissound is the result of the release of pressure from the compressor station piping. Q: What willIsee whenan emergencyshutdown occurs? A: You likely will see a large vaporcloud discharging into the air. During an emergency shutdown, natural gas is released from a compressor station very quickly in order to clear the natural gas and reduce potential danger. It appearsto form a cloud because compressed natural gas is under extreme pressure and the velocity of the natural gas, upon its release, makes it colder than the atmosphere. Q: Is it dangerous? A: The natural gas released duringan emergencyshutdown is not dangerous. While releaseamounts vary from station to station, they fall within strict guidelines mandated by federal regulations. The natural gas release is necessary to reduce potential risk to the facility, employeesand the surrounding community.

Q: What is in the vaporcloud that is released? A: Natural gas is a mixture of hydrocarbons, primarily methane. Because methane is lighter than air, it rises and dissipates safely as it is absorbed into the atmosphere.
Q: What will I smell?

A: Natural gas is odorless and colorless. However, in some pipelines, an odorant called mercaptan is injected into the natural gas for safety reasons. Mercaptan creates a recognizable odor, often compared to rotten eggs, which helps consumers identify or detect a leak. It is not harmful and will dissipate. In some cases, the smell of mercaptan may linger if minute traces ofthe odorant separate from natural gas that has risen and been absorbed into the
atmosphere.

Q: Do the same things happen during a routine

maintenance shutdown?

A: No. Oursystem or a portion of it is occasionally shut

down, purged and tested to ensure it is operating safely and efficiently. Those shutdowns and start-ups cause little or no disruption and are rarely noticed by our neighbors.

Spectra Energy
Right-of-Way Easement Notification, Negotiations and Acquisition
Rights-of-Way and Land

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Spectra])

The Rights-of-Way and Land Department is responsible for developing and maintaining relationships with landowners near Spectra Energy's pipeline facilities.
Rights-of-Way and Land Department personnel, called

Federal Regulation of Natural Gas Pipelines The Federal Energy Regulatory Commission (FERC) and the U.S. Department ofTransportation regulate interstate pipelines. FERC has jurisdiction over Spectra Energy's interstate natural
gas pipelines and authorizes the construction and operation

Right-of-Way Agents or Land Agents, are trained profes sionals and are involved in most aspects of a project's development - from the initial project plan through
construction and into operations. As the need for clean-

burning natural gas grows and new projects are explored, Right-of-Way Agents assist in the development of new pipeline facilities and the expansion of existing facilities. Working closely with landowners and project personnel, Right-of-Way Agents workto ensure that all activities - from
route selection to construction and restoration - minimize

of new facilities. Thisauthorization is granted only after FERC has determined the project is necessary and in the public interest and,along with otherregulatory agencies, has thoroughly reviewed potential impacts.

impacts and disruptions to individual properties, communities and the environment. To help develop new projects, Right-of-Way Agents: Identify landowners from local property records along the
proposed corridor;

Initial Project Activities (pre-acquisition) During the initial stages of the proposed project, each landowner with property located within a proposed survey corridor will be contacted by a Right-of-Way Agent to request permission to survey and stake the preliminary pipeline route for environmental, engineering and
construction
evaluations. These

surveys will be

Notify landowners of a proposed project; Meet with landowners to explain the details of the project, the process for acquiring rights-of-way and potential impacts along the proposed pipeline route; Identify specific concerns landowners may have with the
proposed route and facilities;

conducted only with permission from the

landowner. Because it is

important to us that all landowners understand the proposed features of the

pipeline and project - including the alignment of the pipeline,

underground depth, pipe size, temporary and permanent

Work with landowners, project engineers and environmental specialists to address these concerns; and

widths of the easement, and the aboveground facilities proposed for construction, our Right-of-Way Agents will
be available to meet with individual landowners while the

Arrange meetings to begin negotiations for the necessary rights-of-way (easements).

Note to Landowners: Ifanyportion of theproposed permanent or temporary rights-of-way fora new pipeline is located onyourproperty or if yourproperty abutsan existingcompressorstation with proposednew facilities, you will be notified byletter andin themajority of cases, a Right-of-Way Agent will meet with you personally to discuss theproject and listen to yourconcerns.
Typically, right-of-way acquisition refers to negotiations for
permanent easements to construct, operate and maintain the

surveys are taking place. Negotiations and Acquisition of Easement Rights Compensation to Landowners: Before beginning negotiations for new permanent easement rights,Spectra Energy retains the services of an independent real estate appraiser who has professional qualifications and is familiar with the project area. The appraiser will develop a market study of land values based on recent sales in the communities where we propose a new or expanded pipeline route.
(continued)

pipeline. Temporary workspace adjacent to the permanent easement is also often necessary for use during construction.

Formore information, visit www.spectraenergy.com.

03/27/2013

Based upon the appraiser's market study as well as other factors, Spectra Energy will determine the value (or compensation) for the necessary permanent and temporary easement rights.

use of the land within the easement area, with certain

limitations, will remain the same as before construction. If

the property is sold, the rights and responsibilities under the easement will stay with the property under the new owner. Temporary easement rights, obtained for construction purposes, typically will expire once the temporary workspace
is re-established and stabilized consistent with FERC's

If permanentand/or temporary easement rightsare necessary, a Right-of-Way Agent will review the calculated values
with the landowner in an effort to purchase the Grant of

Easement and reach an agreement for compensation. After an agreement is reached on the amount ofcompensation and the language of the Grant of Easement,the easement agreement
is executed and a check is issued by the Right-of-Way Agent
to the landowner.

approval. Upon expiration of these rights, the landowner will resume full use and ownership of the land.
Eminent Domain:

Spectra Energy begins each and every easement negotiation with the expectation that a mutual agreement can be reached
with the landowner. In the unlikely event that we cannot

Spectra Energy will compensate each landowner fairly for two different aspects relative to the property: Easement Rights - SpectraEnergy will pay fair market value for the rights and interest being acquired as it crosses
the landowner's property.Spectra Energy also will pay a rental value for any additional land rights required on a temporary basis for use during construction.

reach an agreement with a landowner and must obtain the easement interests through the eminent domain process,
a court will determine the appropriate compensation in a

valuation proceeding. For further information, please refer to FERC's brochure "An Interstate Natural Gas Facility on My Land? What Do INeed to Know?" which may be found on
FERC's web site at www.ferc.aov.

Damages -In accordance with the provisions contained in the easement or related agreements, Spectra Energy will pay for damages to any structures, landscaping or decorative trees directly impacted by the construction of the facilities. Spectra Energy will repairsuch items as drain tiles, fences, streets, roads and driveways and will restore the property as near as practicable to its pre-construction contours. If future maintenance activities are required on the easement, Spectra Energy will compensate the landowners for damages associated with that activity.
LandownerRetention of Ownership:

Please be assured that Spectra Energy does not and will not use the eminent domain authority as a negotiating tool. We willonlyexercise thatrightas a means of last resort.
Advance Notification of Construction Activities

The Rights-of-Way and Land Department will notify the landowner and/or tenant of the actual timing of construction as far in advance as possible. Our early notification will include a general timeline and description of construction
activities in order to allow the landowner to schedule activities

The permanent easement agreement will give Spectra Energy certain rights to construct, maintain and operatethe pipeline, but the landowner will actually retain the ownership ofthe land covered by the easement. In most cases, the landowner's

with construction in mind. Land Agents also will be available throughout the construction process to immediately respond to any concerns that the landowner may have during the construction phase of the project.

Spectra Energy
Right-of-Way "101"
Defining the Easement To deliver critically needed natural gas via our network of interconnected pipelines, Spectra Energy must at times cross private and public lands. We obtain property interests from a landowner in a legal document called a Grant of Easement that provides us with the necessary rightsto
construct, operate and maintain pipeline facilities authorized

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by the Federal Energy Regulatory Commission (FERC).

After the landowner and our company agree to a compensation amount,the landowner signs the easement
document, which is then placed on record at the local

registry of deeds. The rightsand responsibilities described in

the document "run with the land" and remain effective with future owners.

Defining Temporary Workspace When the pipeline is constructed or expanded, temporary workspace will be needed adjacent to and along the permanent right-of-way. The width of the temporary workspace will vary depending upon the local topography and/or sensitive resource areas in the vicinity of the construction. In certain areas, additional temporary workspace may be required to create safe working environments or to accommodate special crossing techniques required by permit conditions. These areas may include rocky or sloping terrain,as well as street, road, stream, railroad or wetland crossings.
We will work with each landowner who is directly affected by the proposed construction to negotiate fair compensation for

The Grant of Easement conveys to us the rights to construct, operate and maintain the proposed facilities but the actual fee ownership of the property remains with the landowner. Because the pipeline is buried, the landowner may resume use of the surface of the right-of-way after construction and restoration, subject to some limitations as discussed under What is an encroachment? \n the Frequently Asked
Questions section of this document.

the permanent right-of-way and temporary workspace. Our right to use the temporary workspace areas typically expires afterthe proposed permanent and temporary right-of-way is restored as close as possibleto the original contours. The temporary workspace outside of the permanent right-of-way will return to its original state. The entire work area will be restored in compliance with all applicable federal, state and
local permits.

Property needed for any aboveground facilities, such as meter stations and valve sites, is usually purchased in fee
rather than by easement or lease.

Frequently Asked Questions

Defining the Right-of-Way The permanent right-of-way as defined in the Grant of Easement is typically 50 feet wide.The access to the perma nent right-of-way is limited to the existing public ways and any private access roads identified and acquired for the project.

Q: What is an easementorright-of-way? A: An easement is a legal right of a third-party to use a portion of property for a specificand limited purpose. A right-of-way generally refers to the easement area where the legal rightsof the easement holderare used through another person's property. AGrant of Easement is the legal document that conveys to a Spectra Energy pipeline companythe use of the
(continued)

Permanent structures cannot

Other structures are

be placed on the right-of-way/

easement such as:

acceptable such as:

H
swimming pools
garages
trees

I
roads

utilityeasements

tences

Formore information, visit www.spectraencrgy.com.

03/77/2013

right-of-way and provides us with the necessary rights to construct,operate and maintain the pipeline facilities authorized by FERC. If the property is sold, the rights and responsibilities under the Grant of Easement stay with the property and remain in effect with the new owner of the
property.
Q: Where can a landowner find the easement that affects

Q: What is an encroachment?

A: An encroachment is anything that is placed within the

easement that mayinterferewith Spectra Energy's ability

to use the easement. In most cases, the property owner

may continue activities that do not pose a problem to the long-term integrity of the pipeline. Examples of encroachments that interfere with our use
of the easement and are not allowed include, but are not

his orherproperty? A: Depending upon the laws of a particular state, the local registry of deeds, court house or county property records department keeps a record and a copy of the easement agreement. If the easement was granted bya prior owner, a reference to the easement also may be found in the deed conveying the property to a new owner. If this is a new easement, Spectra Energy will provide the landowner with a copy after it is executed and will record that document in the registry of deeds.
Q: How big is the easement? A: The Grant of Easement generally describes the width of the permanent right-of-way and any temporary workspace that was acquired for the project. The Grant of Easement also typically references a plan, which depicts the location of the permanent right-of-way and temporary workspace with respect to property boundaries. If a landowner does not have a copy of the easement or referenced plan readily available, Spectra Energy will provide a copy or assist the landowner in determining the
width.

limited to, buildings, houses, garages, excess vegetation, mobile homes, trailers, sheds, trees, poles, decks, patios, swimming pools or other structures that obstruct or impede access to or along the right-of-way. Utilities, driveways, streets, roads,fences and approved parking lots generally may be placed across the pipeline easement provided they meet certain criteria required to protect the pipeline. Spectra Energy can provide the landowner with the criteria. We also encourage landowners to contact the Right-of-Way Agent early in the planning process to discuss their proposals and determine what, if anything, may be required to workor place improvements near or across our pipelines. Q: Why does Spectra Energy maintain clear rights-of-way? A: Spectra Energy maintains clear rights-of-way to ensure that its operations remain as safe as possible to protect landowners, the public and the pipeline facilities. Spectra Energy must have unrestricted entry and access to all of its facilities at all times for regular maintenance or during emergency situations. Aclear right-of-way provides easy identification and monitoring of pipeline facilities, which is imperative in preventing third-party damage. Trees and large shrubs obstruct the view for foot patrols and aerial inspections, which are routine procedures for maintenance. Tree roots also create a danger to the coating that protects the pipeline from corrosion. Q: What are the markers thatare along the right-of-way? A: We use pipeline markers along the right-of-way for easy recognition of the presence of underground pipelines. The markers are typically located in a "line of sight" manner within the rights-of-way, along streets and at road and railroad crossings.The markers provide helpful information about what each pipeline transports, who operates the pipeline, and how to contact the pipeline company. The marker does not necessarily markthe exact location of the pipeline; therefore, pipelines in the vicinity of any excavation activityshould always be located and marked by contacting the local one-call center - at 811 - prior to digging.

Q: Whom does a landowner call to locate the pipeline or facilities on his or her property?

A: Before digging on orneartheright-of-way, a landowner should contact the local one-call center by dialing 811 at least 48 hours (excluding weekends andholidays) prior tobeginning anyactivities. When we receive notification from a one-call center that someone intends to dig near our pipeline facilities, we send personnel to mark the location of the facilities in the vicinity of the proposed digging and have company employees on-site when the
excavation occurs.

Q: What size is the pipeline? A: Spectra Energy's pipelines typically range in size from small diameter pipelines of 4 inches to 12 inches in diameter, to large diameter pipelines of 16 inches to 48 inches in diameter. Spectra Energy will assist a
landowner who wishes to know the diameter of the

pipeline that is installed or proposed to be located on his

or her property.

Spectra Energy
How Does Natural Gas Get to Consumers? Clean-burning natural gas travels a long and interesting path as it makes its way from abundant domestic supply sources
to homes and businesses across the United States. Production

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natural gas from processing facilities to consumers - often

for thousands of miles.

Natural gas is actually a mixture of many hydrocarbons, primarily methane. Natural gas is typically found in underground beds of porous rock, and retrieved from drilled wells through a series of collection pipes.
Processing

Natural gas is moved along by pressure, which also reduces the volume ofthe gas so that ittravels more efficiently. As the gas travels, friction and elevation differences gradually reduce the pressure, so compressor stations are staggered along the length of the pipelines to give the gas another
"push" or "boost."
Distribution

From wellhead collection points, natural gas is processed to separate valuable components like oil and natural gas liquids from impurities like water, carbon dioxide and sulfur that could cause pipeline corrosion.
Transmission

The pipeline networkdelivers natural gas directly to some

large commercial and industrial consumers, like utilities. The

remainder is delivered to local distribution companies which

add odorant - to ease detection of even small leaks - before

Processed natural gas is pressurized and introduced into an interstate pipeline network for safe, reliable transport. Large underground steel pipes up to 48 inches in diameter carry

transporting the gas through smaller distribution pipes,or "mains," to millions of businesses and homes throughout the United States. Natural gas companies can store natural gas underground so that it can be used during periodsof high
demand.

Consumers

Production / Processing / Transportation GasProduction GasProcessing GasPipeline Compressor Station Local Gas Company
Industrial

llii

NG Vehicles

Residential I Commercial

Power Plants

Forwore information, visit www.spcctraenergy.com.

Spectra Energy
Your Property During Construction
Whether your property already has a pipeline where maintenance work is necessary or you have been in communications/negotiations with us to build a pipeline across your property, you can count on Spectra Energy to always respect your property and minimize disruption to the degree possible. We will exercise care and diligence throughout the construction process. Andwe will communicate openly and regularly so that you and other landowners know what to expect and fully understand the construction process and related safeguards we employ.
Structures

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Early on, it is very important to identify to us any structures to ensure they are not impacted by our construction. In certain areas, blasting is necessary to create the trench. All blasting will be performed by registered licensed blasters, in accordance with all appropriate state and local approvals, and monitored by blasting inspectors. In the unlikely event that our construction directly causes any damage to a structure, we will either repair the damage or compensate the owner for the damages.
Restoration of Lands

Spectra Energy representatives will notify affected landowners well before construction begins, and our inspection team will closely monitor all activities to ensure that the terms of our easement (see Right-ofWay Easement Notification, Negotiations andAcquisition document) and agreed upon restrictions are adhered to. ASpectra Energy Right-of-Way Agent will be readily available on short notice to address any construction questions or concerns landowners may have. The Rightof-Way Agent will be responsible for following up on these questions and concerns and will respond to inquiries
within 48 hours.

Following pipeline installation, all disturbed areas will be returned as close as possible to the original contours. Temporaryworkspace will be allowed to return to its original state. The entire work area will be restored in compliance with all applicable federal, state and local permits. All temporary fencing and gates required during
construction will be removed. All fences will be restored as

near as practicable to pre-construction condition.

Landowners may call our toll-free, 24-hour information hot line to advise us of any construction or environmental related issues - and we will make every effort to resolve any issues as soon as practicable. Generally, a width of 100 feet of work area will be required for construction of the pipeline.This includes both the permanent right-of-way and temporary workspace. Additional workspace may also be necessary. In certain circumstances, the workspace may be narrowed or expanded for short distances. Some disruption to property is unavoidable during construction, and certain damages may result. In all such cases, each landowner will be fairly compensated for any damages.

Our Right-of-Way Agent will be available throughout restoration to respond to landowner questions and concerns. After the landowner and Right-of-Way Agent have reviewed the restoration, we will return to review and evaluate any follow-up issues or concerns. While Spectra Energy will maintain the permanent right-ofway per the Grant of Easement, temporary work areas will revert to the property owner following construction and
restoration.

For more information, visit www.spectraenergy.coni.

Spectra Energy
How We Cross Rivers and Streams
Categories of Bodies of Water
Bodies of water such as streams and rivers are classified

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employed on small, low-flowstreams where the dry-ditch

by the Federal Energy Regulatory Commission into three

categories:

method cannot be employed because of site-specific conditions. In application, small sandbag dams are constructed both upstream and downstream around the
work area across the stream channel. Stream flow is then

Minor- Includes all streams less than or equal to 10 feet wide at the water's edge at the time of construction. Intermediate - Constitutes perennial stream crossings greater than 10 feet wide, but less than 100 feet wide at the water's edge at the time of construction. Major- Includes crossings of more than 100 feet at the water's edge at the time of construction. Methods of Crossing There are four basic methods for crossing bodies of water. The techniques for each are site-specific:
Open-Cut Wet-Ditch Method

diverted around the workarea using pumps and hoses. Horizontal-Directional Drilling (HDD) Method
Installationof a pipeline by HDD is generally accomplished in three stages:

The open-cut wet-ditch method consists of digging an open trench in the stream bottom, laying the prefabricated length of pipe necessary to reach bank to bankand then backfilling.
Open-Cut Dry-Ditch Method The open-cut dry-ditch method uses flume pipe(s) to direct the stream through the disturbed area, which allows

The first stage consists of directionally drilling a small diameter pilot hole along a designed directional path.The path ofthe drilling string is tracked and directed using surface monitoring systems. The surface monitoring system determinesthe location of the drill bit in the holeby taking measurements from a grid or point on the surface. This allows the operator to follow the designed directional path. The second stage involves enlarging the pilot hole to a diameter that will accommodate the pipeline.The enlargement process involves the use of hydraulic cutting with drill bits and jet nozzles and hydraulic motors (also called "mud motors") used to cut harder soils. It can take several passes to enlarge the hole to the required diameter, which is typically 12 inches larger than the
pipeline being installed.

trenching to be done in drier conditions. Small sandbag dams are constructed both upstream and downstream
around the work area across the stream channel. Stream

flow is then diverted through the flume pipe allowing the

excavation to occur in the dry, under the flume pipe. Dam & Pump-Around Method

The third stage begins once the pilot hole is enlarged to the correct size. The section of pipe, prepared in advance, is pulled back through the hole using the horizontaldirectional drilling unit.

The pump-around method can act as a substitute to the open-cut dry-ditch method of construction. It may be

River Crossing - HDD Method

For more information, visit www.spectraenergy.com.

0KW0I3

Spectra Energy
Gas Control
Spectra Energy's U.S. natural gas transmission and
storage assets provide critical pipeline infrastructure and

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Spectray

facilities to our control room, enables our controllers to monitor gas pressures throughout our pipeline facilities,

storage services which safely and reliablytransport gas from various supply sources to key delivery markets. Spectra Energy operates seven interstate pipeline

as well as, gas receipts and gas deliveries from/to our

customers. The Gas Control Center also serves as a 24 hour

point of contact along our pipeline system rightsof way for

any issues that arise along the systems.

systems consisting of -14,000 miles of pipeline and 125 compressor stations that transport gas as far south as the
Texas/Mexico border, to as far north as Nova Scotia.

Our Gas Control staff works 24 hours a day, 7 days a week

and 365 days a year. In addition to the around-the-clock

The real-time operation and coordination of these pipeline

systems reside at our Gas Control Center in Houston, Texas.

operation of our staff, our Gas Control management team is also on-call at all times to provide direction, guidance
and support, as needed. Besides the Gas Control Center in

Gas Control is responsible for the continuous monitoring and operation of these systems. Real-time data, provided viaan extensive computer network from our many pipeline

Houston, Spectra Energy also has a fully functional alternate Gas Control Center located in a location away from Houston.

For mora information, visit www.spcctraoncrgy.com.

Spectra Energy
Pipeline Safety and Public Awareness
Spectra Energy works closely with local, state and federal agencies to ensure our pipelines meet or exceed regulatory

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safety,environmental protection and service integrity. For

more information, visit www.commonqroundalliance.com.

requirements for safety. We also communicate regularly with members of the public who live or work near our pipelines, and we collaborate with organizations that share our dedication to pipeline safety and public awareness.
Emergency Response We enjoy long-standing relationships with local and regional emergency response officials, who we visit with regularly to discuss pipeline safety and emergency preparedness issues. Periodically, company employees and local emergency response personnel come together for emergency drills to test staff readiness and identify improvement opportunities. Damage Prevention

One-Call Response
When we receive notification from a one-call center that

someone intends to dig near our pipeline facilities, we send personnel to mark the location of the facilities in the vicinity of proposed digging or other earth disturbance activities and have company employees on-site when the excavation
occurs.

We respond to as many as 800 calls per day, and we are happy to respond and help excavators and contractors work safely around our pipelines. Pipeline Safety Brochures
We mail information brochures to homeowners, businesses,

Before digging around ornearpipelines, ids very important

to contact your area's one-call center by dialing 811.

potential excavators and public officials along the pipeline system each year to inform them of the presence of the

Mishaps can easily be prevented by knowing exactly where you should and should not dig.

pipelines and instruct them on howto recognize and react to

unusual activity in the area.

We support and participate in one-call notification programs

in all the states in which we operate pipeline facilities. We

encourage those who are going to dig to call their local one-call center, by dialing 811, to report planned digging activities and allow us and other underground facility operators a chance to mark the facilities in the area before digging begins. If you're not able to reach your local one-call center by dialing 811, call 1-888-258-0808 to get a toll-free direct number. For more information on digging and damage
prevention, visit www.call811.com.

Our employees routinely meet with excavators and emergency response officialsto educate them about our pipelines.

Know what's belOW.

Call before you dig.

We are also a sponsor of the Common Ground Alliance, a non-profit organization dedicated to shared responsibility in damage prevention to ensure public

Formore information, visit www.spectraenergy.com.

; I/27AOI3

Spectra Energy
The Regulatory Process
The Federal Energy Regulatory Commission, or FERC, plays a key role in the development of new U.S. pipeline projects. Under direction from the U.S. Congress, FERC regulates the interstate transmission of natural gas. FERC is charged with determining whether proposed projects are needed and inthe public interest, and ultimately authorizing projects. Their efforts continue by monitoring compliance through construction and operational commissioning.
To determine public convenience and necessity, FERC
conducts a comprehensive environmental review of

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compiled into a document known as the "Environmental

Report," which the Applicant prepares as part of the Certificate Application. The Environmental Report also details all other federal, state and local permits required for the project, as well as agencies consulted in preparation of the Environmental Report.

FERC will then review the project, evaluating the need, proposed facility locations, and overall impact of project construction and operation and will summarize itsfindings
in either an Environmental Assessment or an Environmental

proposed projects, in accordance with the National

ImpactStatement, depending on NEPA guidelines. If FERC

determines that the project is necessary and appropriate, it

Environmental Policy Act (NEPA). FERC works closely with federal, state, and local agencies such as the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, state departments of environmental protection, and other state and local agencies. Other stakeholders, including project neighbors and landowners, are also invited to participate in the FERC process byattending meetingsand providing comments or concerns at particular times in the process. Pipeline companies (Applicants) seeking project
authorization must file an Application for a Certificate of

will issue a Certificate authorizing construction and operation ofthe new interstate natural gas facilities. FERC Pre-Filing Process FERC has established a collaborative pre-application process that gives landowners, government agencies and other interested stakeholders the opportunity to review project information and an anticipated schedule, and to identify issues or concerns before a CertificateApplication is filed with FERC or other permit applications are made. This phase of project development is referred to as the Pre-Filing
Process.

Public Convenience and Necessity (Certificate Application) with FERC. The Application describes the purpose and commercial need for the project, the transportation rate to be charged to customers, proposed project facilities, and how the company will comply with all applicable regulatory requirements. Applicants must evaluate project alternatives, identify a preferred route, and complete a thorough environmental analysis, including consultation with appropriate regulatory agencies, data reviews and field surveys. Information obtained through this review is

Applicants seeking to use the Pre-Filing Process must

request authorization from FERC. Once authorization

is granted, FERC will issue a Pre-Filing docket number by which all related public documents can be identified and accessed via the e-Library on FERC's Web site (www.ferc.gov) under the tab "Documents and Filings."
(continued)

Process for Natural Gas Certificates for Major Projects

o
Spectra Energy
initiates Pre-Filing
Process with FERC

o
FERC Scoping
to determine environmental

o
Spectra Energy
files FERC
Certificate

o
FERC issues
Notice of

o
Additional Stakeholder outreach efforts

o
FERC issues
Environmental

o
FERC responds
to environmental comments

o
FERC
issues Certificate

Application

Impact Statement
or Environmental Assessment

issues. Applicant
Stakeholder

Application

Order

outreach efforts.
issues resolution

and Application preparation

Formore information, visit www.spectraenergy.com.

03/27/2013

Throughout the process, the Applicant and FERC will actively

seek input from interested stakeholders through public
outreach efforts that include written communications and

Following issuance of the environmental document by FERC,

stakeholders will have an opportunity to provide additional comments regarding the project. FERC will review any comments received and respond to them in either a final environmental document or, provided FERC agrees that the

public meetings (a meeting notice will be sent to stakeholders and/or placed in local publications). Stakeholders are

encouraged to participate and share any questions or concerns so they can be addressed prior to submittal of the Certificate Application, Additionally, FERC reviews drafts of the Applicant's Environmental Report during this stage of the project. The Certificate Application, oncefiled, identifies a specific route and/or set of facilities and locations for which the Applicant is requesting authorization.
NEPA requires FERC to evaluate environmental impacts that could resultfrom the construction and operationof the proposed facilities. At the beginning of the Pre-Filing Process, FERC issues a Notice of Intent, or NOI, to prepare an Environmental Assessment or Environmental Impact Statement (environmental document) for the proposed project. With the Notice of Intent, FERC initiates a scoping period in which stakeholders and agencies are encouraged to submit comments regarding the potential environmental impacts that should be considered. FERC will evaluate comments and address any issues during its environmental review. Comments will be incorporated into FERC's
environmental document.

project is in the interest of public convenience and necessity, the agency may addresscomments directly in its Certificate
authorization.

Project Authorization
Once FERC issues a Certificate of Public Convenience and

Necessity, the Applicant must: Accept the Certificate within 30 days; Filean affirmative statement indicating commitment to provide environmental training to all individuals working on the project; and

File one or more Implementation Plan(s) indicating how the project will comply with Certificate conditions.

Project construction cannotbegin until authorization is receivedfrom FERC. Agency staff will conduct periodic site
visits throughout construction to ensure ongoing compliance, including a visit as construction nears completion to review

Project Application

Once the Pre-Filing Process is complete, theApplicant files

a CertificateApplication for the project. Additionally, permit applications are submitted to other federal, state, and local agencies. The permit proceedings conducted by these agencies often provide additional opportunity for public
involvement.

restoration efforts and identify any additional needed measures. Finally, Applicants must receive FERC approval to commence service. Additional monitoring of the right-ofway will continue after the pipeline is placed into service to ensure restoration efforts are successful. *
Our Commitment

Spectra Energy is committed to informing and consulting with all affected stakeholders throughout project development and construction. The Pre-Filing Process provides stakeholders with a number
of opportunities to raise concerns and questions with FERC, including multiple agency and public meetings. This will enable incorporation of identified issues and concerns into our FERC CertificateApplication and other permit applications, and will allow FERC to incorporate these issues

Once the Application has been filed, FERC will issue a new docket number (CP ).As with the Pre-Filing Process, all public documents associated with the Certificate Application and filed with or issued by FERC are accessible via the e-Library on FERC's Web site (www.ferc.gov). Additionally, copies of the Application and the environmental report will be made available at public locations within each county impacted by the project so that all stakeholders will have the opportunity to review and comment on the Application. Notices of the Application filing and the locations
to view the documents are sent to all identified stakeholders.

or concerns into their review of the projectand their NEPA

environmental document.

We encourage all interested persons to participate in the

Pre-Filing Process and lookforward to working with you.

The stakeholders outreach efforts continue through this stage of the project.

Additional Information

Once FERC accepts the Application, it will issue a notice of Application, and within 90 days will indicate when it expects
to issue the environmental document which summarizes

Additional information about FERC Pre-Filing and Certificate Application approval processes is available at (www.ferc.gov) under thetab marked "For Citizens."

potential environmental impacts associated with the project. During this review period, FERC will identifyany additional or clarifying information that may be needed from the Applicant and will complete its environmental document in accordance
with NEPA.