Crossing Agreements A Canadian Best Practice

1. Crossing Agreements A Canadian Best Practice Brad Watson TransCanada Pipelines and Alberta Common Ground Alliance Warren Loper Enbridge Pipelines Inc. Moderated by Mike Sullivan Chair, CCGA President, Alberta One-Call Corporation

2. Ground Disturbance in Canada • One Call legislation doesn’t exist BUT buried utilities must be located prior to ground disturbance (various legislation) • Buried utilities further protected by Crossing Agreement

3. The voice of Canada's upstream oil, oil sands and natural gas industry

4. Crossing Agreements Crossing agreements date back to the 1970s An Alberta initiative Requires “written permission” to cross various buried utilities Based on various legislation

6. Crossing Agreement Sections • PART 1 – MASTER AGREEMENT • Contains: • Agreement • Schedule B (location Plan and Profile) • Schedule C (specific Terms and Conditions) • This document should be used to develop corporate-specific master crossing agreement. • PART 2 – TERMS AND CONDITIONS • Agreement provides for terms and conditions of crossing.

7. Crossing Agreement Sections • Components of the agreement are: • Agreement – Facility Crossing Agreement • Schedule A – Mutually Agreed to Terms and Conditions (CAPP letterhead) • Schedule B – Location Plan and Profile (Company letterhead) • Schedule C – Specific Terms and Conditions (Company letterhead) • Master Crossing Agreement • Develop two Agreements, one to be executed by grantor and one by • grantee; complete page 1 of Schedule A; • Provide each party with a copy of Master Crossing Agreement and • Schedule A. • Exchange Schedules B and C only when specific crossing approvals are • Required between the two parties involved.

8. Crossing Agreement Schedule A Interpretation Contains words, terms and definitions of same Consent Grantor agrees that the Grantee may perform the Work on Grantee’s Facility in the Crossing Area in accordance with the terms and conditions of the Agreement. Compliance with Statutes and Regulations Compliance and conformance with any and all applicable codes, statutes, laws, regulations, permits, licenses, orders and directions of any governmental authority.

9. Crossing Agreement Schedule A Position of Facility Provides stipulations for position of Grantee’s facility relative to the position of the Grantor’s facility. Conditions Establishes the terms and conditions imposed on a particular crossing. Remedy on Default Language capturing issues of default

10. Crossing Agreement Schedule A Further Work Any future work related to the initial crossing by either party in the crossing area will be consented and the provisions of the initial agreement shall apply. Installation of any Facility, other than those shown in Schedule “B”, shall require a separate Facility Crossing Agreement Emergency Work in the Crossing Area requires verbal notice and must be followed by written notice.

11. Crossing Agreement Schedule A Liability Language capturing issues of liability. Indemnity Language capturing indemnity clauses. Insurance Each party shall obtain and keep in force during the term of the Agreement comprehensive general liability insurance covering liability for bodily injury and property damage arising from Work contemplated by this Agreement. The limit of this insurance shall not be less than five million dollars, inclusive, for any one occurrence unless otherwise agreed by the parties in writing.

12. Crossing Agreement Schedule A Changes to Agreement No change, modification or alteration of this Agreement shall be valid unless it is in writing and signed by both parties. Assignment Neither party to this Agreement shall assign or transfer this Agreement nor the rights and privileges hereby granted without the written consent of the other party, and such consent shall not be unreasonably withheld.

13. Crossing Agreement Schedule A Governing Law This Agreement and the rights and obligations of the parties herein shall be governed and construed according to the laws of the province in which the Work is to occur. Term The rights and obligations of the parties under this Agreement shall terminate two years from the date hereof if construction of Grantee’s Facility has not commenced, or upon proper abandonment or removal of all of Grantor’s or Grantee’s Facilities from the Crossing Area and the completion of any reclamation Work.

14. Crossing Agreement Process

15. Crossing Agreement On-site Tailgate meeting

16. Crossing Agreement Benefits

17. Crossing Agreement Challenges to implementation in U.S. • The lack of statutory requirements • Difficulty getting parties to apply, submit drawings (little time or incentive to sign) • If something goes wrong, both parties are in trouble • HOWEVER, the Crossing Agreement is being recognized… • Unsigned agreement remains valuable as an Engineering Assessment • Tremendously valuable as a damage prevention tool but also for employee safety • Requirements will be inspected

18. This presentation and the CAPP Crossing Agreement can be downloaded from the CCGA’s website: www.canadiancga.com