FortisBC · Fort Nelson Inland Columbia Kelowna, Osoyoos, Trail, Castlegar, Princeton, Rossland, Summerland, ... Kingsvale - Oliver Reinforcement Project Purpose

FortisBC Energy Inc., FortisBC Energy (Vancouver Island) Inc., FortisBC Energy (Whistler) Inc., and FortisBC Inc. do business as FortisBC. The companies are indirect, wholly owned subsidiaries of Fortis Inc. FortisBC uses the FortisBC name and logo under license from Fortis Inc. FortisBC uses the Terasen Gas name under license from FortisBC Holdings Inc. (12-170.2 06/2012)

FortisBC: Serving the energy needs of British Columbians

We provide over 22% of the total energy consumed in B.C. and deliver natural gas, electricity, propane and integrated energy solutions, such as geoexchange and district energy, to more than:

1.1millioncustomers

135communities

Fort Nelson

Inland

Columbia

Kelowna, Osoyoos, Trail, Castlegar, Princeton, Rossland, Summerland, Penticton, Grand Forks and Nelson

Lower Mainland

Vancouver Island

Natural Gas

Propane

Combined service area

Electricity

Revelstoke


Kingsvale - Oliver Reinforcement Project

PurposeWith new shale gas developments in Northeast B.C., shippers are looking for ways to get natural gas to market. The KOR Project would:

provideshippersbetteraccesstomarketsasnaturalgasproductiongrowsinB.C.,

increasetheuseofexistinginfrastructure,and

providebenefitstoFortisBCcustomers

Alberta

British Columbia

WashingtonNWP

Station 2

Huntingdon/Sumas

McMahon

Pine River

Fort Nelson

KingsvaleOliver

Yahk

Kingsgate

AECO

Mist

Jackson Prairie

Rocky Mountain Basin

Clay Basin

Carbon

Aitlen Creek Western Canada Sedimentary Basin

Oregon

Legend

FortisBC

Spectra Energy

Other natural gas transmission lines

Natural gas producing areas/regions

Major storage fields



DescriptionThe Project includes construction of:

new24-inch(610mm)diameter,161kmlongnaturalgastransmissionpipeline alongside existing FortisBC pipeline between Kingsvale and Oliver

2newcompressorstationsandadditionalcompressionadjacenttotheexisting Kingsvale Compressor Station, and

a1kmextensionoftheSouthernCrossingPipelineintheYahkarea

Penticton

Peachland

Summerland

Hedley

Merritt

Castlegar

Trail

Legend

Proposed Kingsvale-Oliver Reinforcement Project

FortisBC Southern Crossing Pipeline

Existing FortisBC pipelines

Spectra Energy

Foothills Pipeline (TransCanada Corp.)

Southern Crossing Pipeline Expansion

Existing Compressor Stations

Proposed Compressor Stations

Parks and protected areas

See Insert

Proposed YahkCompressor Station(SCP Expansion)

EKE Control Station

Hig

hway

95

Glenlilly Road Yahk

5000 250

Meters

Greenwood

Edgewood

Grand Forks

Kelowna

Creston

Princeton

Kingsvale

0 10 20 30 40 50

Kilometres Routing data from IPP April 30, 20101

1

Midway

Keremeos

Hope KitchenerYahk

Oliver

Osoyoos



CompressionCompressor stations use natural gas driven turbines to boost the pressure of natural gas to move it through the pipeline.

Typical compressor operations include:

upto24hour,7dayperweekoperation

exhaustincludesnormalproductsofcombustionofnaturalgas(novisibleexhaust)

lownoiselevels(lessthan40dBAatnearestreceptor)

perimeterlighting,downwardfacingwithmotionactivation

potablewaterandsanitaryrequirements(typicallywell&septicsystem)

nositewastefromoperations



Benefits Competitively priced natural gas

forFortisBCcustomers&naturalgasindustry

Enhanced security & reliability

of natural gas supply for British Columbians

Revenues

to help offset potential natural gas rate increases over time

Tax benefits

to taxing authorities along pipeline route

Employment

direct jobs to local, regional and B.C. individuals

Investment in B.C.(estimatebasedonpreviouspipelineproject)

potentially50%($220million)ofprojectcostsexpendedintheprovince


Kingsvale - Oliver Reinforcement Project Project timeline

Current status: FortisBCisundertakingafeasibilitystudytodeterminetheenvironmentaland financialfeasibilityoftheKORProject.

TheProjectiscurrentlyundergoinganassessmentundertheB.C.Environmental AssessmentActandtheCanadianEnvironmentalAssessmentAct.

APublicCommentPeriodontheApplicationInformationRequirements(AIR)isin effectbetweenMay30andJune28includingscheduledOpenHouses.

FirstNationinformationsharinghascommenced.

2010 2011 2012 2013 2014 2015 2016 2017

Aboriginal, Government and Stakeholder Engagement

Planning and Environmental Field Studies, submit Project Description, draft Application Information Requirements

Continue route assessment

Enviromental Assessment Review Process

Regulatory Approvals (EAO/CEAA/BCUC)

Detailed Engineering and Permitting

Pipeline Construction

System Start-Up

Restoration

Clearing and Right-of-Way Preparation

Compressor Station Construction

Prepare/file detailed EAC Application



Review&approvalsThe project will be subject to and undergo various federal and provincial assessments, certifications,permitsandapprovalssomeofwhichinclude:

B.C.EnvironmentalAssessmentAct

CanadianEnvironmentalAssessmentAct

B.C.UtilitiesCommission

B.C.OilandGasCommission

IndianActapprovalsforcrossingthetworeservesoftheLowerSimilkameen IndianBand

PermitsandAuthorizationsfromfederalagenciessuchasFisheriesandOceans Canada and Transport Canada


Kingsvale - Oliver Reinforcement Project Environment

Assessments,protection&restoration FortisBCwillconductdetailedstudiesofphysical,biological,health,social and economic factors in assessing possible environmental impacts and developing appropriate mitigation measures.

AnumberofEnvironmentalProtectionPlanswillbedevelopedandimplemented during construction.

AComprehensiveRestorationPlanwillbedevelopedfocusingonre-vegetatingand restoring land affected by the Project.

Documents

FortisBC · Fort Nelson Inland Columbia Kelowna, Osoyoos, Trail, Castlegar, Princeton, Rossland, Summerland, ... Kingsvale - Oliver Reinforcement Project Purpose