Appendix1 The Panels conditions

In these conditions, the following terms are defined as:

Northern Gateway or the company Northern Gateway Pipelines Inc., on behalf of Northern Gateway Pipelines Limited Partnership. NEB National Energy Board. Oil pipeline The oil export pipeline located approximately between Bruderheim, Alberta and Kitimat, British Columbia, including all associated facilities to be installed along the pipeline, with the exception of the Kitimat Terminal, as defined below. Condensate pipeline The condensate import pipeline located approximately between Kitimat, British Columbia, and Bruderheim, Alberta, including all associated facilities to be installed along the pipeline, with the exception of the Kitimat Terminal, as defined below. Kitimat Terminal Located near Kitimat, British Columbia, the Kitimat Terminal is the tank terminal, the marine terminal (including marine-based structures), and the defined undeveloped area outside of the fence line. Infrastructure All structures or sites necessary for constructing the oil pipeline, the condensate pipeline, and the Kitimat Terminal. Examples of infrastructure include construction camps, stockpile sites, laydown areas, temporary work space, borrow pits, roads, bridges, snow pads, and temporary power supply lines necessary for operating infrastructure and equipment during the construction phase. Project The Enbridge Northern Gateway Project in all its components, including the oil pipeline, the condensate pipeline, the Kitimat Terminal, and all infrastructure. Construction Any in-field activity that may have an effect on the environment and that is necessary for installing, or preparing to install, any component of the Project. Construction activities include, clearing, mowing, grading, trenching, drilling, boring, and blasting. Construction activities do not include activities associated with routine surveying operations or data collection activities, such as geotechnical investigations (e.g., geophysical surveys, bore holes, and test pits). In-water construction for the Kitimat Terminal refers to construction activities occurring in the marine environment that are necessary for installing, or preparing to install, any component of the Kitimat Terminal. These include dredging, blasting, and pile drilling and grouting. Commencing operations In the case of the oil pipeline or condensate pipeline, when it is opened for hydrocarbon transmission. In the case of the Kitimat Terminal, when oil first crosses the tank terminal boundaries and enters terminal piping, or when condensate first enters marine terminal piping directly from a tanker. For approval Where a condition requires a filing for NEB approval, Northern Gateway must not commence the indicated activity until the NEB issues its written approval of that filing. Consultation Unless otherwise specified in a condition, Northern Gateways consultation must be carried out in a manner whereby it: a. provides, to the individual, group, or organization to be consulted: i. notice of the matter in sufficient form and detail to allow that individual, group, or organization to prepare its views or information on the matter; ii. a reasonable period for that individual, group, or organization to prepare those views or information; and iii. an opportunity to present those views or information to Northern Gateway; and b. considers, fully and impartially, the views or information presented; and c. is able to demonstrate to the NEB its appropriate consideration of the views or information presented.

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Third party (in relation to a review) An independent consultant, expert, or contractor that, except for receiving payment for acting as a third party, is unaffiliated with Northern Gateway, Enbridge, the principal consultants of either, or any other corporate entity with a financial interest in the Project. A third party is, because of their knowledge, training, and experience, qualified and competent to perform an assessment or review, and was not involved in developing the manual, report, plan, program, or policy being assessed or reviewed. Monitoring Observing the environmental and socio-economic effects of the Project for the purposes of assessing and measuring the effectiveness of mitigation measures undertaken, identifying unanticipated environmental and socio-economic issues, and, based on the results of these activities, determining any remedial actions required. From an engineering perspective, monitoring involves regularly observing pipelines and facilities (e.g., through surveys, patrols, inspections, testing, instrumentation) to ensure their operation is within defined parameters, with the goal of identifying any issues or potential concerns (e.g., pipeline integrity, geohazards, erosion, security) that may compromise the protection of the pipelines and facilities, property, persons, and the environment. Including Use of this term, or any variant of it, is not intended to limit the elements to just those listed. Rather, it implies minimum requirements with the potential for augmentation, as appropriate.

Government authorities are mentioned in certain conditions. If a particular authoritys name changes in the future, Northern Gateways requirements relating to that authority would rest with its successor. Similarly, if a particular authoritys function is assumed by another authority, Northern Gateways requirements relating to that function would rest with the new authority. Two certificates would be issued for the Project, if it is approved as applied for: one for the oil pipeline and one for the condensate pipeline. For regulatory purposes, the condensate pipeline certificate would not contain references to the oil pipeline, and vice versa. All of Northern Gateways condition-related filings, and the NEBs correspondence related to them, would be publically available in the Projects online document registry, found on the NEBs website.

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range COndItIOn

PrOject cOmpOnent*
(with condition #) Condensate pipeline Infrastructure** Oil pipeline Kitimat Terminal the Project ***

Phase: MIsceLLaneOUs / OVerarchIng In natUre 1 2 Compliance with conditions Northern Gateway must comply with all of the certificate conditions, unless the NEB otherwise directs. Certificate expiration (sunset clause) Unless the NEB otherwise directs prior to 31 December 2016, the certificate will expire on 31 December 2016, unless construction of the pipeline or the Kitimat Terminal has commenced by that date. Project completion Northern Gateway must file with the NEB, within 30 days after commencing operations , confirmation, signed by the President of the company, that the Project was completed and constructed in compliance with all applicable certificate conditions. If compliance with any of the conditions cannot be confirmed, the President of the company must file with the NEB the reason(s) for this and the proposed course of action for compliance. Group 1 designation a) Northern Gateway is designated a Group 1 company and must file with the NEB annual Surveillance Reports as outlined in the NEBs Toll Information Regulations and Guide BB Financial Surveillance Reports of the NEBs Filing Manual, or any successor NEB guideline documents. Financial information must be provided for the pipeline and audited financial statements (income, balance sheet, and cash flow) must be provided for Northern Gateway Pipelines Limited Partnership. b) Northern Gateway must file with the NEB, on a quarterly basis, pipeline throughput information by shipper category, broken down by month, as outlined in the NEBs Toll Information Regulations and Guide BB of the NEBs Filing Manual. General engineering Northern Gateway must cause the Project facilities to be designed, located, constructed, installed, and operated in accordance with, at a minimum, the specifications, standards, policies, mitigation measures, procedures, and other information included or referred to in its Project application or as otherwise committed to during the OH-4-2011 proceeding. General environment Northern Gateway must implement or cause to be implemented, at a minimum, all of the policies, practices, programs, mitigation measures, recommendations, and procedures for the protection of the environment included or referred to in its Project application or as otherwise committed to during the OH-4-2011 proceeding. 1

* a) Condition wording is generalized so that conditions can apply to multiple Project components, as required. Condition wording appears only once and, if applicable to a particular component, a condition number is assigned in that column and the condition filing(s) must address that component. The timing element (e.g, prior to commencing construction) of each condition should be interpreted in the context of each separate and applicable component, unless otherwise specified in the condition itself.
b) Northern Gateway would have the option to submit separate filings for each condition number within a row or, if appropriate and as long as all timing elements are satisfied, a single filing that could apply to all of the condition numbers in that row. Similarly, conditions duplicated on the issued certificates could be addressed by a single filing, if appropriate under the circumstances and if Northern Gateway indicates this intent. c) Certain conditions require filings during different Project phases. In these cases, the conditions appear under the phase headings according to when the initial filing would be due.

** Prior to commencing construction of the first infrastructure site, the preconstruction filing for each of the conditions in this column must be satisfied. Each filing must address the collection of infrastructure sites. If infrastructure is the first Project component to be constructed, the applicable pre-construction conditions for the Project must also be satisfied and must address the collection of infrastructure sites. See Condition 9 for more requirements regarding infrastructure-related condition filings.

***

Generally, conditions in this column are overarching in nature and not linked to a particular project component (by context or timing), unless otherwise specified in the condition itself. Conditions in this column that relate to a particular project component may appear here, and not in the individual components columns, in those cases where their associated filings are tied to an overall project timing element. Where a condition in this column refers to filing information prior to commencing construction, it is referring to the first construction activity to be undertaken for the project as a whole, regardless of the component. Where a condition in this column refers to filing information after commencing operations, it is referring to the point when the last project component becomes operational.

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Commitments tracking table Northern Gateway must implement the commitments contained within its commitments tracking table and must: a) file with the NEB, at the following times, an updated commitments tracking table: i) within 90 days after the certificate date; and ii) at least 30 days prior to commencing construction; b) update the status of the commitments and file those updates with the NEB on a monthly basis until commencing operations, and quarterly during operations until all conditions are satisfied (except those that involve filings for the Projects operational life); c) post on its company website the same information required by a) and b), using the same indicated timeframes; and d) maintain at each of its construction offices: i) the relevant environmental portion of the commitments tracking table listing all of Northern Gateways regulatory commitments, including those from the Project application and subsequent filings, and conditions from received permits, authorizations, and approvals; ii) copies of any permits, authorizations, and approvals for the Project issued by federal, provincial, or other permitting authorities that include environmental conditions or site-specific mitigation or monitoring measures; and iii) any subsequent variances to any permits, authorizations, and approvals in d) ii). Phased filings a) Northern Gateway must file with the NEB, at least 7 months prior to commencing construction, a complete list of construction spreads, regions, or work areas that, for the duration of Project construction, will serve as the basis by which Northern Gateway may submit condition filings in a phased approach. Each spread, region, or work area must be clearly delineated (e.g., by kilometre posts). b) As part of its filing for a), to aid the NEB in anticipating future submissions, Northern Gateway must indicate the specific conditions where it expects to apply this phased approach. Northern Gateway must file updates to this estimate as they are available. c) When submitting a filing for any condition using this phased approach, Northern Gateway must clearly indicate which spread(s), region(s), or work area(s) that filing applies to. d) Construction of a particular spread, region, or work area must not proceed until all pre-construction conditions using this phased approach have been satisfied for that spread, region or work area. Prior to commencing construction of the initial spread, region, or work area, all applicable conditions with more general preconstruction timing elements must also be satisfied . List of infrastructure sites Northern Gateway must file with the NEB, at least 90 days prior to commencing construction , and any updates as they are available , a complete list of all infrastructure sites (based on the definition provided in advance of this table) to be constructed for the Project. This list must include information on each sites location, structures to be installed, the anticipated date for commencing construction, and activities involved in its construction. The initial list and updates must also include the condition numbers (those under the prior to commencing construction phase heading) that are applicable to each site and an indication of whether each of those conditions has been or remains to be satisfied. Project organizational structure Northern Gateway must file with the NEB, at least 60 days prior to commencing construction , a diagram of the Projects organizational structure (i.e., project management, design, and field staff) that clearly identifies roles, accountabilities, responsibilities, and reporting relationships for the applicable Project component. Composite coating Northern Gateway must use a three-layer composite coating or High Performance Composite Coating (a proprietary Bredero-Shaw product) for the pipeline between kilometre post 600 and the Kitimat Terminal. Northern Gateway may specify a different coating if it will provide superior protection than that provided by the three-layer composite coating or High Performance Composite Coating. Northern Gateway must inform the NEB, at least 60 days prior to commencing pipe installation , of any coating substitution and the rationale for its use.

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Category III pipe Northern Gateway must install pipe that, at a minimum, meets the requirements of Canadian Standards Association (CSA) Z245.1 Category III pipe. Northern Gateway must file with the NEB, at least 6 months prior to pipe manufacturing , a statement signed by an officer of the company that confirms its ability to comply with this requirement. Marine Voluntary Commitments Northern Gateway must not load or unload oil or condensate tankers at the Kitimat Terminal until it has implemented or caused to be implemented all of its voluntary commitments related to marine tanker traffic and enhanced oil spill response associated with the Project (Marine Voluntary Commitments). As referenced in the Project application and other evidence, including the TERMPOL Review Committees TERMPOL Review Process report filed on 23 February 2012, these include: a) simulator training for tug crews, and working with the Pacific Pilotage Authority to complete joint training with pilots and tug crews; b) live field trials in the Confined Channel Assessment Area for tankers and tug escort operations simulating both laden and ballasted conditions; c) requiring laden tankers in the Confined Channel Assessment Area to have two escort tugs (one tethered); d) requiring ballasted tankers to be accompanied by a close escort tug; e) purpose-built escort tugs available for ocean rescue; f) escort tugs equipped with oil pollution emergency response equipment; g) developing Terminal Regulations and a Port Information Handbook; h) identifying safe transit speeds for tankers in the Terminal Regulations and Port Information Book; i) requiring tankers to modify their speed to reduce the risk of marine mammal strikes; j) completing a tanker drift study and developing appropriate mitigation based on the results of the study; k) installing radar to monitor marine traffic (this may also provide additional information to the Canadian Coast Guards Marine Communications and Traffic Services, subject to Canadian Coast Guard agreement); l) establishing vessel operational safety limits that address visibility, wind, and sea conditions; m) e stablishing terminal operational safety limits that address visibility, wind, and sea conditions; n) developing a Tanker Acceptance Program that incorporates Northern Gateways commitments regarding vessel design, construction, and inspection ratings, and that has been audited by a third party (as defined), with the audit results made publically available; o) not accepting tankers with full width cargo tanks at the Kitimat Terminal; p) using skilled and properly-trained terminal personnel; q) requiring boom deployment around tankers during oil loading operations; r) using tug crews trained in emergency response; and s) enhanced oil spill response capabilities, including: i) establishing a Response Organization with a 10,000 tonne response capability that has been certified by the federal Minister of Transport, with an additional response capability of 22,000 tonnes, all of which has been audited by a third party (as defined) to verify that it meets Northern Gateways commitment to have at least 1 major on-water recovery task force capable of being at the site of a spill in the Confined Channel Assessment Area within 6 to 12 hours, and at the site of a spill in the Open Water Area within 6 to 12 hours plus travel time; ii) strategic location(s) for oil spill response equipment and vessels to meet the response time capabilities; iii) oil spill response capability at the Port of Kitimat that is equal to or greater than that of a designated port; iv) identifying and prioritizing sensitive areas for oil spill response in Geographic Response Plans developed in consultation with the Province of British Columbia and communities that could be affected in the event of a spill; and v) developing Community Response Plans for participating coastal communities in the Confined Channel Assessment Area, Hecate Strait, and communities outside these areas, as appropriate. To demonstrate the above, Northern Gateway must file with the NEB , at least 90 days prior to loading or unloading the first tanker at the Kitimat Terminal , confirmation, signed by an officer of the company, that its Marine Voluntary Commitments have been implemented. Northern Gateway must also include and report on its Marine Voluntary Commitments in its commitments tracking table (required by Condition 7).
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TERMPOL Review Committee recommendations Northern Gateway must not load or unload oil or condensate tankers at the Kitimat Terminal until it has implemented or caused to be implemented all of the TERMPOL Review Committee recommendations included in the TERMPOL Review Process report filed on 23 February 2012. To demonstrate this, Northern Gateway must file with the NEB, at least 90 days prior to loading or unloading the first tanker at the Kitimat Terminal , confirmation, signed by an officer of the company, that the TERMPOL Review Committee recommendations have been implemented. Transportation Service Agreements (TSAs) oil pipeline a) Northern Gateway must file with the NEB, within 60 days after executing all TSAs, but not less than 6 months prior to commencing Project construction, the long-term, firm TSAs executed with shippers to demonstrate that it has secured sufficient commercial support for the Project. In no case can sufficient commercial support for the oil pipeline be constituted by TSAs comprising less than 60 per cent of its nominal capacity (525,000 barrels per day). b) If Northern Gateway has not filed the TSAs described in a) with the NEB by 1 July 2014, it must file with the NEB, on this date and every 6 months thereafter, a report summarizing its progress in securing commercial support for the Project and the status of the TSAs. TSAs condensate pipeline a) Northern Gateway must file with the NEB, within 60 days after executing all TSAs, but not less than 6 months prior to commencing Project construction, the long-term, firm TSAs executed with shippers to demonstrate that it has secured sufficient commercial support for the Project. In no case can sufficient commercial support for the condensate pipeline be constituted by TSAs comprising less than 60 per cent of its nominal capacity (193,000 barrels per day). b) If Northern Gateway has not filed the TSAs described in a) with the NEB by 1 July 2014, it must file with the NEB, on this date and every 6 months thereafter, a report summarizing its progress in securing commercial support for the Project and the status of the TSAs. Part IV application Northern Gateway must apply to the NEB, within 6 months after executing firm TSAs with shippers that demonstrate sufficient commercial support for the Project (as defined in Conditions 20 and 21), for an order or orders under Part IV, paragraph 60(1)(b), of the National Energy Board Act approving the tolls that Northern Gateway proposes to charge shippers on the pipeline. Northern Gateway must include the following documents and information with its Part IV application: a) a summary of all executed TSAs in table format which details, for each firm shipper category, the number of shippers and total contracted volume for each term contract option. Each term contract option must specify the contract duration and expiry date; b) the most recent capital cost estimate for the Project and its pipeline and terminal components based on the Class III Capital Cost Estimate, as well as the rate base for the pipeline resulting from these costs; c) a summary of the results of the decision to adopt or reject the cost risk sharing methodology defined in article 6 of the pro forma precedent agreement. This summary must include a description of any consequential amendments to its applicable pipeline toll principles; d) confirmation that the Project has secured financing and a summary of the key terms in the Project financing plan that also shows the capital structure components, their weightings, and their costs, as well as the overall cost of capital for the Project; e) a description of how Northern Gateway has set aside reserve capacity for non-term shippers on the pipeline, with an explanation of how Northern Gateway has addressed the Panels view that not less than 10 per cent of the pipelines nominal capacity should be set aside as reserve capacity for non-term shippers; f) a proposal to manage the reserve capacity on the pipeline through an open and fair process, such as a monthly public auction in which eligible bids would fall within floor and ceiling toll limits. The ceiling would be the total Uncommitted Spot Shipper toll as determined by the toll principles, and the floor would be determined in the Part IV proceeding; g) a status report confirming and describing how all potential shippers seeking capacity on the pipeline under the terms of the executed TSAs have been accommodated;
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h) an assessment of how the pipeline will operate in a manner consistent with the requirements of subsection 71(1) of the National Energy Board Act ; and i) a consolidation of all terms and conditions from the pro forma precedent agreement, the pro forma TSA, the toll principles, and other relevant sources into a tariff document for the pipeline that distinguishes between conditions for shippers when the pipeline commences operations and conditions for potential shippers that may request capacity after pipeline operations commence. Additional reports to file with the NEB At the time of its Part IV application, Northern Gateway must file with the NEB, for its information, the following documents: a) Direct Owners Agreement (if any); b) Northern Gateway Pipeline Limited Partnership Agreement (Limited Partnership Agreement); c) Shareholder Agreement; d) Distribution Policy; and e) any other agreements referenced in the TSA, or otherwise related to the Limited Partnership Agreement. Landowner consultation records Northern Gateway must maintain records of its landowner consultations that includes: a) a description of landowner consultations, including the consultation methods, dates, and a summary of any issues or concerns raised by landowners; and b) a summary of actions that Northern Gateway has undertaken to address or respond to each of the issues or concerns raised by landowners, or a rationale for why no actions were taken, and any outstanding concerns. Northern Gateway must file with the NEB, beginning at least 60 days prior to commencing construction, and every 6 months thereafter until completing construction, its landowner consultation records. Northern Gateway must continue to file its landowner consultation records with the NEB every 6 months for 5 years after commencing Project operations . Landowner complaint records Northern Gateway must create and maintain records, for the life of the Project (from pre-construction to the end of operations), that chronologically track landowner complaints related to the Project. These records must include: a) a description of each complaint; b) how each complaint was received (e.g., telephone, letter, email); c) the date each complaint was received; d) subsequent dates of all contact or correspondence with each complainant; e) records of any site visits, monitoring, or inspections; f) contact information for all parties involved in each complaint; g) the date of each complaints resolution; and h) if a complaint remains unresolved, a description of any further actions to be taken or a rationale for why no further action is required. Northern Gateway must maintain these records for audit purposes and make them available to the NEB upon request. Northern Gateway must make available to a landowner, upon request , the records related to the complaint(s) that landowner made to Northern Gateway. Temporary Foreign Worker Labour Market Opinion a) Northern Gateway must notify the NEB within 14 days after any application is made to Service Canada for a Labour Market Opinion by it, on its behalf, or by its contractors, for the purposes of using Temporary Foreign Workers for Project construction. b) Northern Gateway must file with the NEB a copy of any Service Canada-issued Labour Market Opinion within 14 days of it or its contractors receiving it .

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Phase: PrIOr tO cOmmencIng cOnstrUctIOn 27-29 Pipeline Environmental Effects Monitoring Program Northern Gateway must file with the NEB for approval, within 1 year after the certificate date, a Pipeline Environmental Effects Monitoring Program for the Projects operational life, in accordance with the Pipeline Environmental Effects Monitoring Program Framework filed during the OH-4-2011 proceeding. The program must address all sections noted in the framework and include: a) locations (i.e., along the pipeline route, or at infrastructure sites) where the program will be implemented; b) the programs duration; and c) a description of how Northern Gateway has taken available and applicable Aboriginal Traditional Knowledge (ATK) and Traditional Land Use (TLU) studies into consideration in developing the program. Pipeline Environmental Effects Monitoring Program: survey framework Northern Gateway must file with the NEB, within 1 year after the certificate date , a survey framework associated with the Pipeline Environmental Effects Monitoring Program (required by Conditions 27-29), that includes: a) a list of species or species groups, habitat parameters, and environmental parameters to be surveyed, including for species at risk; b) the survey methods that will be used for the species (including species at risk) and species groups, habitat parameters, and environmental parameters to be surveyed; c) a summary of the outcomes of Northern Gateways collaboration with relevant government authorities, participating Aboriginal groups, research organizations, and public stakeholder groups on the survey framework; and d) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the survey framework. Pipeline Environmental Effects Monitoring Program: survey results and monitoring plans a) Northern Gateway must file with the NEB, within 45 days after completing each of the Pipeline Environmental Effects Monitoring Program surveys, the survey results and verification that they were provided to the appropriate federal and provincial authorities. b) Northern Gateway must file with the NEB, on or before 31 January of each year for the duration of the Pipeline Environmental Effects Monitoring Program, the following: i) monitoring plans stemming from survey results and how those plans will be incorporated into the program or, if no further monitoring is planned for certain species, species groups, habitat parameters, or environmental parameters, a rationale; ii) a summary of the outcomes of Northern Gateways collaboration with relevant government authorities, participating Aboriginal groups, research organizations, and public stakeholder groups on the monitoring plans; and iii) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the monitoring plans. Marine Environmental Effects Monitoring Program Northern Gateway must file with the NEB for approval, within 1 year after the certificate date , a Marine Environmental Effects Monitoring Program for the Projects operational life, in accordance with the Marine Environmental Effects Monitoring Program Framework filed during the OH-4-2011 proceeding. The program must address all sections noted in the framework. Marine Environmental Effects Monitoring Program: survey framework Northern Gateway must file with the NEB for approval, within 1 year after the certificate date , a survey framework associated with the Marine Environmental Effects Monitoring Program (required by Condition 36), including: a) a list of species or species groups, habitat parameters, and environmental parameters to be surveyed, including for species at risk; b) the survey methods that will be used for the species (including species at risk) and species groups, habitat parameters, and environmental parameters to be surveyed;

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c) a summary of the outcomes of Northern Gateways collaboration with relevant government authorities, participating Aboriginal groups, research organizations, and public stakeholder groups on the survey framework; and d) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the survey framework. Marine Environmental Effects Monitoring Program: survey results and monitoring plans a) Northern Gateway must file with the NEB, within 90 days after completing each of the Marine Environmental Effects Monitoring Program surveys, the survey results and evidence that they were provided to the appropriate federal and provincial authorities. b) Northern Gateway must file with the NEB, on or before 31 January of each year for the duration of the Marine Environmental Effects Monitoring Program, the following: i) monitoring plans stemming from survey results and how those will be incorporated into the program or, if no further monitoring is planned for certain species or species groups, habitat parameters, or environmental parameters, a rationale; ii) a summary of the outcomes of Northern Gateways collaboration with relevant government authorities, participating Aboriginal groups, research organizations, and public stakeholder groups on the monitoring plans; and iii) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the monitoring plans. Quality Management Plan Northern Gateway must file with the NEB for approval, at least 6 months prior to manufacturing any pipe and major components for the pipeline (including facilities along the pipelin e) or the Kitimat Terminal , a Project-specific Quality Management Plan that includes: a) material/vendor qualification requirements; b) quality control and assurance of pipe and components that ensure all materials meet Enbridge specifications (i.e., processes, procedures, specifications, inspection, random testing, inspection, and test reports); c) mandatory documentation of process conditions during manufacture and verification of the conformance of manufacturer material test reports with Enbridge requirements; d) mandatory inspection requirements, inspector competency training, and qualifications; e) non-conformance reporting and correction procedures; f) change management process; and g) commissioning requirements. Report loading and dynamic effects Northern Gateway must file with the NEB, at least 3 months prior to pipe manufacture , a report summarizing the loading and dynamic effects considered during final design and that confirms that the pipeline has adequate strength to resist these loadings. This report must also identify and address potential pipe deformation that may impede passage of pipeline inspection tools. If Annex C of CSA Z662-11 is used in designing certain pipeline sections, Northern Gateway must file with the NEB, at least 3 months prior to pipe manufacture , a report describing how allowable strains for the pipeline were established giving due consideration to clause C.8.9.1 and the notes accompanying Tables C.1, C.2, and C.3. This report must include the potential effects of strain-aging and strain rate. If experimentally-established allowable strains are available, these must be referenced in the report. Fracture toughness a) When strain-based design will be used in accordance with CSA Z662-11 Annex C, Northern Gateway must determine the minimum acceptable Charpy V-Notch toughness (CVN) and crack tip opening displacement (CTOD) values for weld metal and heat-affected zone of mill circumferential, helical (if practicable), and longitudinal welds. At a minimum, testing must account for the lowest installation temperature and the most severe deformation during construction or operation. The CVN and CTOD tests must be conducted for all combinations of pipe steel producers and pipe mill manufacturers and be representative of applicable Project pipe with the maximum carbon equivalent (CE) heat.

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b) When weld zone defect acceptance criteria will be established in accordance with CSA Z662-11 Annex K, Northern Gateway must determine the minimum acceptable CVN and CTOD values for field circumferential welds for the lowest installation temperature and the most severe deformation during construction or operation. The CVN and CTOD tests must be conducted at the welding procedure development phase, for all combinations of pipe steel producers and pipe mill manufacturers and must be representative of applicable Project pipe with the maximum CE heat. c) Northern Gateway must file with the NEB, at least 60 days prior to conducting the tests for a) and b) above, the test procedures it will use. d) Northern Gateway must file with the NEB, at least 60 days prior to field welding , the minimum acceptable CVN and CTOD values and the test results from a) and b) above. Joining Program Northern Gateway must develop a Joining Program and file it with the NEB at least 30 days prior to conducting welding procedure qualification tests for: a) field circumferential production, tie-in, and repair pipeline welds; and b) welding of Project facilities. The Joining Program must include: i) welder qualification requirements; ii) requirements for welding inspector qualifications and duties; iii) welding procedure specifications; iv) non-destructive examination (NDE) specifications; v) procedure qualification records for welding procedure specifications and NDE specifications; vi) a quality assurance program for field welds and welding procedures; and vii) a ny additional information that supports the Joining Program. Fisheries Liaison Committee (FLC) meeting summaries Northern Gateway must file with the NEB, at least 1 year prior to commencing in-water construction for the Kitimat Terminal , a report summarizing the FLC meetings. The report must include: a) a list of FLC members or attendees at each meeting; b) meeting agendas; and c) each meetings minutes. Northern Gateway must file with the NEB, at least 6 months prior to commencing in-water construction for the Kitimat Terminal , any updates to a) through c). Marine Mammal Protection Plan development Northern Gateway must file with the NEB for approval, at least 9 months prior to commencing in-water construction for the Kitimat Terminal, a description of how it intends to develop its Marine Mammal Protection Plans for construction and operations (required by Conditions 51 and 191). The Marine Mammal Protection Plans must address all sections noted in the Framework for the Marine Mammal Protection Plan filed during the OH-4-2011 proceeding. This description must include: a) how Northern Gateway will implement, monitor, and ensure compliance with the voluntary marine mammal protection measures it committed to in relation to marine terminal construction and marine shipping associated with the Project; b) a discussion of proposed monitoring and research initiatives and how the results of these initiatives will be incorporated into the Marine Mammal Protection Plans; c) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, Transport Canada, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding Marine Mammal Protection Plan development. This summary must include any issues or concerns raised regarding plan development and how Northern Gateway has addressed or responded to them; d) a description of the reporting structure for any marine mammals struck, injured, or killed during construction and operations; and e) a description of how and to whom Northern Gateway intends to communicate and report the results of its marine mammal mitigation and monitoring activities.

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Construction Marine Mammal Protection Plan Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing in-water construction for the Kitimat Terminal, a Construction Marine Mammal Protection Plan. The plan must be prepared in accordance with the Framework for the Marine Mammal Protection Plan filed during the OH-4-2011 proceeding, and must include all marine mammal mitigation measures and monitoring that will be implemented during the Kitimat Terminal construction period. The Construction Marine Mammal Protection Plan must include a summary of Northern Gateways consultation with Fisheries and Oceans Canada, Transport Canada, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them. FLC operational guidelines Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing in-water construction for the Kitimat Terminal , the FLCs operational guidelines. The guidelines must, at a minimum: a) identify how FLC membership will be determined; b) identify the FLC structure; c) identify an officer of the company who will be accountable for implementing the guidelines; d) include information on how the FLC will be funded both initially and on an ongoing basis, including information on any funding available to FLC members; and e) describe the scope, mandate, and operational protocols to be addressed or implemented by the FLC, including: i) the FLCs goals; ii) the issues and activities that will be within the FLCs mandate; iii) the protocols and procedures for documenting, reporting, and determining fair compensation for lost or damaged fishing gear as a result of the Project; iv) the protocols and mechanisms for implementing FLC recommendations or decisions; v) a dispute resolution process; and vi) the protocols for reporting and communicating with FLC members, member constituents, and other potentiallyaffected or interested parties. TLU investigation plan for detailed routing and final design Northern Gateway must file with the NEB for approval and serve a copy on all potentially-affected Aboriginal groups, at least 1 year prior to commencing construction , a plan for identifying potentially-affected TLU sites or resources that arise from detailed routing and design. This includes finalizing the pipeline centreline and watercourse crossing locations, and the Kitimat Terminals final design. The plan must describe: a) the methods that will be used to identify potentially-affected TLU sites and resources; b) how Northern Gateway has considered and addressed information from any ATK studies that it did not previously report during the OH-4-2011 proceeding; c) the general and specific TLU site types and resources that Northern Gateway expects to encounter; d) a summary of Northern Gateways consultation with potentially-affected Aboriginal groups regarding the plan. This summary must include: i) a description of Northern Gateways offers to potentially-affected Aboriginal groups to participate in investigations, and the potentially-affected Aboriginal groups responses; ii) any additional mitigation that Northern Gateway did not previously report during the OH-4-2011 proceeding, or that has subsequently been requested by potentially-affected Aboriginal groups, that it will implement to address potential Project effects on TLU sites and resources; iii) any issues or concerns raised regarding the plan, and how Northern Gateway has addressed or responded to them; and iv) a list of, and explanation for, outstanding issues or concerns, and the steps that Northern Gateway will take to address or respond to them; and

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e) how the results of investigations arising from detailed routing and design will be provided to potentially-affected Aboriginal groups, including proposed timing, communication methods, opportunities to comment on the findings and proposed mitigation, and how this information has been incorporated into detailed routing and final design, as appropriate. Northern Gateway must file with the NEB, at least 6 months prior to commencing construction , any updates to a) through e). Pre-construction caribou habitat assessment For areas of the Project that are within a federally-recognized caribou range, Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing construction of spreads, regions, work areas, or infrastructure potentially affecting each caribou range, a detailed caribou habitat assessment for each caribou range. The framework of the habitat assessment should use the components of critical habitat outlined in the appropriate Woodland Caribou Recovery Strategy, where such a recovery strategy is available. The habitat assessment must include: a) map(s) indicating the location of the habitat; b) a description of the amount of habitat and the existing habitat alteration, in hectares; c) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in the assessment; and d) a description of the type of habitat characterized by the biophysical attributes of critical habitat, as defined in the appropriate Woodland Caribou Recovery Strategy, where available. Caribou Habitat Restoration Plan (CHRP) Northern Gateway must file with the NEB for approval, in accordance with the timelines below, preliminary and final versions of a CHRP for each caribou range. a) Preliminary CHRP - to be filed at least 6 months prior to commencing construction of spreads, regions, work areas, or infrastructure potentially affecting each caribou range. This version of the CHRP must include, but not be limited to: i) the CHRPs objectives for each caribou range; ii) a list of criteria used to identify potential caribou habitat restoration sites; iii) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in identifying potential caribou habitat restoration sites; iv) a conceptual decision-making tree(s) or process that will be used to identify restoration actions to be used at different types of sites. The decision process should be based on a literature review of caribou habitat restoration methods and their relative effectiveness, and address typical site factors that may constrain implementation; v) the quantifiable targets and performance measures that will be used to evaluate: the extent of predicted residual effects, CHRP effectiveness, the extent to which the objectives have been met, and the need for further measures to offset effects on habitat; vi) a schedule indicating when mitigation measures will start and the estimated completion date; and vii) a summary of Northern Gateways consultation with Environment Canada, appropriate provincial authorities, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the preliminary CHRP. This summary must include any issues or concerns raised regarding the preliminary CHRP and how Northern Gateway has addressed or responded to them. b) Final CHRP - to be filed on or before 1 November after the first complete growing season after commencing Project operations. This updated version of the CHRP must include, but not be limited to: i) the preliminary CHRP, with any updates identified in a revision log that includes the rationale for any changes; ii) a detailed decision-making tree(s) or process that will be used to identify and prioritize restoration actions among selected habitat restoration sites; iii) a complete tabular list of caribou habitat restoration sites, including locations, spatial areas, habitat quality descriptions, site-specific restoration activities, and challenges; iv) maps or Environmental Alignment Sheets showing the site locations;

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v) a summary of Northern Gateways consultation with Environment Canada, appropriate provincial authorities, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the final CHRP. This summary must include any issues or concerns raised regarding the final CHRP and how Northern Gateway has addressed or responded to them; and vi) a quantitative and qualitative assessment of the total area of direct and indirect disturbance to caribou habitat that will be restored, the duration of spatial disturbance, and the extent of the resulting residual effects to be offset. Construction Environmental Protection and Management Plan (EPMP) Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing construction , an updated Construction EPMP, including Environmental Alignment Sheets. This Construction EPMP must be a comprehensive compilation of all environmental protection procedures, mitigation measures, and monitoring commitments, as set out in Northern Gateways Project application, its subsequent filings, evidence collected during the hearing process, or as otherwise committed to during questioning or in its related submissions during the OH-4-2011 proceeding. The Construction EPMP and Environmental Alignment Sheets must subsequently be updated to include any additional measures arising from all outstanding pre-construction field studies and surveys. The Construction EPMP must reflect Northern Gateways consideration of seasonal influences and include: a) environmental procedures, including site-specific plans, criteria for implementing these procedures, mitigation measures, and monitoring applicable to all Project phases and activities; b) contingency plans and environmental management plans as outlined in the preliminary Construction EPMP filed as Exhibit B3-19 (Volume 7A of the Project application); c) a reclamation plan that includes a description of the condition to which Northern Gateway intends to reclaim and maintain disturbed areas once construction has been completed, and a description of measurable goals for reclamation; and d) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, Environment Canada, the British Columbia Ministry of Environment, Alberta Environment, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the Construction EPMP. This summary must include any issues or concerns raised regarding the Construction EPMP and how Northern Gateway has addressed or responded to them. Wetlands Functional Assessment Plan Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing construction , a Wetland Functional Assessment Plan. The plan must address all sections noted in the Wetland Function Assessment Framework filed during the OH-4-2011 proceeding and all of Northern Gateways commitments regarding wetlands during the course of the proceeding. The plan must include: a) wildlife species at risk presence and distribution in relation to each specific potentially-affected wetland and associated riparian areas; b) a description of the potentially-affected wetlands biological characteristics, and the ecological services and functions they provide; c) the criteria, and the rationale for the criteria, for the crossing methods and mitigation measures to be implemented for potentially-affected wetlands; d) a description of how the avoidance, minimization, and compensation mitigation hierarchy, and the goal of no net loss of wetland functions, were considered in developing the Wetland Functional Assessment Plan and the Wetland Compensation Plan; e) details of the monitoring plan for the first 3 years of operations; f) details of the Wetland Compensation Plan; g) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the Wetland Functional Assessment Plan; and h) a summary of Northern Gateways consultation with Environment Canada, other appropriate provincial and federal authorities, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the Wetland Functional Assessment Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them.
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Linear Feature Management and Removal Plan Northern Gateway must file with the NEB, at least 6 months prior to commencing construction , a Linear Feature Management and Removal Plan, in accordance with the Linear Feature Management and Removal Plan Framework filed during the OH-4-2011 proceeding. The plan must address all sections noted in the framework and include: a) the plans goals and objectives; b) the criteria for measuring the plans success in achieving its goals and objectives; c) the areas where linear feature management and removal measures will be implemented; d) linear feature management and removal measures that are proposed in the areas identified; e) a summary of Northern Gateways consultation with appropriate federal and provincial authorities, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the Linear Feature Management and Removal Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them; and f) a description of Northern Gateways proposed follow-up program to assess the plans effectiveness, including provisions to apply adaptive management principles when required and scheduling of follow-up reports to report on how the plans goals and objectives are being achieved. Access Management Plan Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing construction , an Access Management Plan describing access control measures proposed for construction, operations, and decommissioning. The plan must include: a) access management goals and objectives to control both human and predator access; b) the criteria for measuring the plans success in achieving its goals and objectives; c) a summary of related baseline information that will be collected and, if no additional information will be collected, a rationale; d) a list of sites where access control measures will be implemented, the control measure(s) proposed at those sites, and the rationale for selecting those sites and measures; e) a summary of Northern Gateways consultation with appropriate federal and provincial authorities, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the Access Management Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them; f) the methods for monitoring the effectiveness of access control measures implemented; g) a description of available adaptive management measures and of the criteria Northern Gateway will use to determine if and when adaptive management measures are warranted; h) a description of the locations where access control measures are put in place specifically for construction, as well as those that will remain in place into operations and will be monitored for the Projects operational life; and i) a commitment to report, as part of Northern Gateways post-construction environmental monitoring reports (required by Condition 196), on the results of the control measures implemented, monitoring undertaken, and the success of control measures in meeting the Access Management Plans goals and objectives. Aboriginal, local, and regional skills and business capacity inventory Northern Gateway must file with the NEB, at least 6 months prior to commencing construction , an Aboriginal, local, and regional skills and business capacity inventory for the Project. The inventory must include: a) a description of the information and data sources, including Northern Gateways Regional Skills and Business Inventory Database, and any other sources; b) a summary of Aboriginal, local, and regional skills and business capacity; c) an analysis of the ability of Aboriginal, local, and regional capacity for meeting Northern Gateways commitments for Aboriginal, local, and regional employment and business opportunities for the Project; d) a description of identified or potential skills and business capacity gaps, and any proposed measures to address them or to support or increase skills or capacity; and e) plans for communicating with Aboriginal, local, and regional communities and businesses regarding skills and business capacity, any identified gaps, and any proposed measures to support or increase skills or capacity. Northern Gateway must file with the NEB, at least 90 days prior to commencing construction , any updates to a) through e).

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Training and Education Monitoring Plan Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing construction , a plan for monitoring the implementation and outcomes of Aboriginal, local, and regional training and education measures and opportunities for the Project. The plan must include: a) a description of, and rationale for selecting, the elements or indicators that will be monitored to track the implementation of training and education measures and opportunities, and progress toward meeting intended outcomes of these measures and opportunities; b) the monitoring methods and schedule, including information and data sources for the elements or indicators being monitored; and c) plans for consulting and reporting on the implementation and outcomes of training and education measures and opportunities with relevant Aboriginal, local, and regional communities; industry groups or representatives; government sponsors; and education delivery agencies and institutions. Northern Gateway must file with the NEB, at least 90 days prior to commencing construction , any updates to a) through c). Socio-Economic Effects Monitoring Plan Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing construction , a plan for monitoring potential adverse socio-economic effects of the Project during construction. The plan must include: a) the factors or indicators to be monitored; b) the methods and rationale for selecting the factors or indicators; c) a description of the baseline, pre-construction socio-economic conditions; d) the monitoring methods and schedule, including third party data source identification; e) data recording, assessment, and reporting details; f) a discussion of how measures will be implemented to address any identified adverse effects, including: i) the criteria or thresholds that will require measures to be implemented; ii) how monitoring methods and measures implementation to address adverse effects, as necessary, are incorporated into Construction Execution Plans; and iii) a description of the roles and responsibilities of construction prime contractors, sub-contractors, and community liaison staff in monitoring socio-economic effects and implementing measures to address adverse effects; g) a summary of Northern Gateways consultation with potentially-affected communities, Aboriginal groups, local and regional authorities, and service providers regarding the Socio-Economic Effects Monitoring Plan. This summary must include: i) a description of any developed agreements or protocols; ii) any issues or concerns raised regarding the plan, and how Northern Gateway has addressed or responded to them; and iii) a list of, and explanation for, outstanding issues or concerns, and the steps that Northern Gateway will take to address or respond to them; and h) plans for regular consultation and reporting on effects during construction with potentially-affected communities, Aboriginal groups, local and regional authorities, and service providers. Training and education monitoring reports Northern Gateway must file with the NEB, at least 6 months prior to commencing construction , and every 6 months thereafter until completing construction , monitoring reports for the implementation and outcomes of Aboriginal, local, and regional training and education measures and opportunities for the Project. The reports must include: a) a description of each training and education measure and opportunity implemented during the reporting period, including duration, participant groups, delivery agency or institution, and intended outcomes; b) a description of the elements or indicators that were monitored; c) a summary and analysis of the progress made toward meeting intended outcomes of each training and education measure and opportunity, including an explanation for why any intended outcomes were not met; d) a description of identified or potential training or education gaps, and any proposed measures to address them or to support or increase training and education measures and opportunities; and

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e) a summary of Northern Gateways consultation with relevant Aboriginal, local, and regional communities; relevant industry groups or representatives; government sponsors; and education delivery agencies and institutions regarding the implementation and outcomes of training and education measures and opportunities for the reporting period. This summary must include any issues or concerns raised regarding these measures and opportunities and how Northern Gateway has addressed or responded to them. Northern Gateway must file with the NEB, within 6 months after completing construction , a final report. Valve spacing Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing construction , its final valve location assessment for the pipeline that provides calculated maximum release volumes based on a 10-minute dynamic (pressurized) release and a 3-minute full valve closure. This assessment must use the same valve location selection criteria as was used in the preliminary valve location engineering assessment (Exhibit B109-4). Northern Gateway must provide, as part of this assessment: a) calculated maximum volume release and elevation plots; b) valve location tables with valve location, description, and rationale; c) for each 10-kilometre-long section, a rationale for why the maximum release volume within that section is as low as reasonably practicable; and d) full-bore release and spill extent mapping in a format and scale similar to that provided in Exhibit B020. These maps must identify and plot all geohazards identified by Northern Gateway at the time of the submission. Air Quality Emissions Management and Soil Monitoring Plan Northern Gateway must file with the NEB for approval, at least 4 months prior to commencing construction , an Air Quality Emissions Management and Soil Monitoring Plan for the Kitimat Terminal. The potential for foliar injury should be reflected in the modelling and monitoring design. This plan must include: a) a description of the baseline, pre-construction conditions, informed by relevant modelling results and recent, existing monitor data; b) locations of both air and soil monitoring sites on a map or diagram, including the rationale for the locations selected and the timing for installation; c) methods and schedule of ambient monitoring for contaminants of potential concern in air (e.g., NO2, SO2, and H2S) and in soils (e.g., pH; major plant nutrients K, P, N, and S; and trace metals), and emissions source tracking; d) data recording, assessment, and reporting details; e) a description of the public communication and complaint response process; f) additional measures that will be implemented as a result of monitoring data or ongoing concern; g) the criteria or thresholds that will require implementing additional measures; h) a description of the plan updating process; i) a summary of Northern Gateways consultation with Environmental Canada and the British Columbia Ministry of Environment regarding the Air Quality Emissions Management and Soil Monitoring Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them; and j) a summary of discussions with the District of Kitimat and local or regional industrial emitters regarding collaborating on the plans design and implementation. Construction schedule Northern Gateway must file with the NEB, at least 90 days prior to commencing construction , a construction schedule identifying the major construction activities expected and, on a monthly basis from the start of any clearing until commencing operations , updated detailed construction schedules. Security Programs Northern Gateway must confirm with the NEB in writing, in accordance with the timelines below, that it has developed Security Programs for the construction and operations phases of the Project, pursuant to the National Energy Board Onshore Pipeline Regulations (as amended from time to time) and CSA Z246.1: a) At least 90 days prior to commencing construction for the construction phase Security Program. b) At least 90 days prior to commencing operations for the operations phase Security Program.
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Emergency Response Plan for construction Northern Gateway must file with the NEB, at least 90 days prior to commencing construction , an Emergency Response Plan that addresses 24-hour medical evacuation, fire response, hazardous chemical and fuel spill response, and security. The plan must include: a) the plans scope, detailing the Project facilities and infrastructure, geographic areas, and time periods covered by the plan; b) training and orientation requirements for company and contractor staff; c) an inventory of petroleum products, chemicals, and other hazardous substances that will be transported, stored, or used prior to and during construction, as well as the locations where the Material Safety Data Sheets for each of these products will be kept; d) storage facilities and locations of the above-inventoried products and substances; e) resources (e.g., equipment, contractors, and staff) to be on-site and/or available to respond to emergencies; f) mutual aid partners and the locations of their resources (e.g, equipment and staff) available to respond to emergencies; g) procedures for responding to spills, releases, fires, medical emergencies, and security issues, including the incident reporting and notification system; h) fire and spill response equipment store locations and vehicle spill kit requirements; i) a phone list of company, contractor, government authority, and community representatives that identifies their respective roles and information needs; j) cleanup and disposal procedures for generated wastes; k) muster points for emergency evacuations from camps and facilities; l) emergency medical treatment locations and capabilities; m) t he requirement for 24-hour emergency medical evacuation capability; n) maps showing the location of the right-of-way and infrastructure (as defined) to facilitate first responder dispatching; and o) a description of how potential geological, meteorological, and geographical hazards have been incorporated into the plan. Technology and site-specific mitigation related to emergency preparedness and response Northern Gateway must file with the NEB, at least 90 days prior to commencing construction , an assessment of the emergency preparedness and response technology and site-specific mitigation discussed in the Project application and during the OH-4-2011 proceeding, as well as the locations where this technology and mitigation will be used or a rationale for not using them. Pre-construction TLU investigation report Northern Gateway must file with the NEB for approval and serve a copy on all potentially-affected Aboriginal groups, at least 90 days prior to commencing construction , a report describing the pre-construction TLU investigations undertaken to identify potentially-affected TLU sites or resources that arose from detailed routing and design (required by Conditions 53-56). The report must include: a) a summary of investigations undertaken, including the scope, spatial extent, methods used, timing, and any activities undertaken with potentially-affected Aboriginal groups; b) a description of the potentially-affected TLU sites or resources identified in the investigations; c) a summary of any mitigation measures that Northern Gateway did not previously report during the OH-4-2011 proceeding that it will implement to reduce or eliminate potential Project effects on TLU sites or resources identified; d) a description of how Northern Gateway has incorporated mitigation measures into its Construction EPMP (required by Conditions 63-66); e) a description of, and explanation for, any outstanding issues or concerns raised by potentially-affected Aboriginal groups, and the steps that Northern Gateway will take to address or respond to them; and f) a summary of any outstanding investigations or follow-up activities to be completed prior to commencing construction, including an estimated completion date, and a description of how Northern Gateway has already identified, or will identify, any potentially-affected TLU sites or resources if the outstanding investigations will not be completed prior to construction.
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Aboriginal, Local, and Regional Employment Monitoring Plan Northern Gateway must file with the NEB for approval, at least 90 days prior to commencing construction , a plan for monitoring Aboriginal, local, and regional employment for the Project. The plan must include: a) a description of, and rationale for selecting, the elements or indicators that will be monitored to track Aboriginal, local, and regional employment, including those specific to tracking progress toward meeting Northern Gateways commitment of 15 per cent Aboriginal employment; b) the monitoring methods and schedule, including information and data sources for the elements or indicators being monitored; and c) plans for consulting and reporting on Aboriginal, local, and regional employment with relevant Aboriginal, local, and regional communities, and industry groups or representatives. Aboriginal Contracting and Procurement Monitoring Plan Northern Gateway must file with the NEB for approval, at least 90 days prior to commencing construction , a plan for monitoring Aboriginal contracting and procurement for the Project. The plan must include: a) a description of, and rationale for selecting, the elements or indicators that will be monitored to track Aboriginal contracting and procurement for the Project; b) the monitoring methods and schedule, including information and data sources for the elements or indicators being monitored; and c) plans for consulting and reporting on contracting and procurement with relevant Aboriginal communities, businesses, and individuals. Protection and management plan for post-AD 1846 culturally-modified trees (CMTs) Northern Gateway must file with the NEB and serve a copy on all potentially-affected Aboriginal groups, at least 90 days prior to commencing construction, a plan to protect and manage post-AD 1846 CMTs within the British Columbia porti on of the Project. The plan must include: a) the methods for surveying or inventorying potentially-affected CMT sites at locations to be disturbed by construction; b) results of pre-construction surveys or inventories of CMT sites; c) an assessment of the potential effects on identified CMTs; d) a description of mitigation measures to reduce or eliminate potential effects on identified CMTs; e) a summary of Northern Gateways consultation with potentially-affected Aboriginal groups regarding the protection and management plan. This summary must include: i) a description of any agreements or protocols regarding CMTs developed with potentially-affected Aboriginal groups; ii) any issues or concerns raised regarding the plan, and how Northern Gateway has addressed or responded to them; and iii) a list of, and explanation for, outstanding issues or concerns, and the steps that Northern Gateway will take to address or respond to them; and f) a description of how Northern Gateway has incorporated mitigation measures into its Construction EPMP (required by Conditions 63-66). Acid rock drainage monitoring and follow-up program a) Northern Gateway must file with the NEB for approval, at least 90 days prior to commencing construction, its followup program to determine the post-construction water quality of groundwater drainage from the Hoult and Clore tunnel portals, all acid rock storage sites, and the receiving water bodies, as committed to in Volume 6A of the Project application (Exhibit B003). Northern Gateway must include a proposed schedule for reporting results to the NEB. b) Northern Gateway must file with the NEB, based on the NEB-approved schedule referred to in a), the results of the follow-up program, including monitoring results, an evaluation of the environmental assessment predictions and mitigation effectiveness, and a discussion of any necessary adaptive management measures.

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102-105 Surveys and mitigation for rare plants and ecological communities Northern Gateway must undertake, within the year prior to commencing construction , spring, summer, and fall field surveys for rare plants and ecological communities. Survey design and sampling methods must consider the availability of unique habitats to support rare species or ecological communities. Northern Gateway must file with the NEB, at least 90 days prior to commencing construction :

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102-105 a) the spring, summer, and fall field survey results; b) confirmation that the Vegetation Protection and Management Plan, to be included in the Construction EPMP (required by Conditions 63-66), has been, or will be, updated to include: i) mitigation measures to be implemented for species and communities potentially affected during construction; ii) a monitoring survey protocol for post-construction reclamation; iii) the methods for determining the extent of non-avoidable effects on rare (including those listed under all Schedules of the Species at Risk Act) plants and ecological communities; and iv) a plan for providing offset measures for all non-avoidable effects on rare plants and ecological communities, including criteria that will be used to assess offset measure effectiveness; c) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the surveys and mitigation; and d) a summary of Northern Gateways consultation with Environment Canada, other appropriate federal and provincial authorities, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the surveys and mitigation for rare plants and ecological communities. This summary must include any issues or concerns raised regarding the surveys and mitigation, and how Northern Gateway has addressed or responded to them. 106-109 Construction safety manuals Northern Gateway must file, at least 90 days prior to commencing construction , construction safety manuals for the applicable Project components. Filings for the pipeline must include separate construction safety manuals for pipeline construction, station construction, and tunnel construction (including pipeline facility fabrication and installation within the tunnels). These manuals must address routine construction activities, as well as blasting, avalanche safety, and special access road procedures that may be required in areas subject to activities other than Project construction (e.g., logging). 110-111 Complementary leak detection systems Northern Gateway must file with the NEB for approval, at least 90 days prior to commencing construction , a report that includes: a) a description of the methods and conclusions of Northern Gateways investigations for the complementary leak detection technologies described during the OH-4-2011 proceeding; b) a description of the complementary leak detection systems Northern Gateway has decided to implement and the reasons why; and c) a timetable for installing and implementing the chosen complementary leak detection systems. Heritage resources Northern Gateway must file with the NEB, at least 60 days prior to commencing construction : a) copies of correspondence from the Alberta Department of Culture and the British Columbia Ministry of Forests, Lands and Natural Resource Operations confirming that Northern Gateway has obtained all of the required archaeological and heritage resource permits and clearances; b) a description of how Northern Gateway will meet any conditions and respond to any comments and recommendations contained in the permits and clearances referred to in a); and c) a description of how Northern Gateway has incorporated any additional mitigation measures into its Construction EPMP (required by Conditions 63-66) as a result of any conditions or recommendations referred to in a). Marine Voluntary Commitments and the TERMPOL Review Committee recommendations implementation, monitoring, and compliance Northern Gateway must file with the NEB, at least 30 days prior to commencing construction , a plan describing how it intends to implement, monitor, and ensure compliance with its Marine Voluntary Commitments and the TERMPOL Review Committee recommendations. The plan must include a summary of Northern Gateways consultation with Transport Canada, the Pacific Pilotage Authority, Environment Canada, Fisheries and Oceans Canada, the Canadian Coast Guard, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them.
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Emergency preparedness and response planning document preparation Northern Gateway must file with the NEB, at least 30 days prior to commencing construction , a plan for preparing the following documents: a) General Oil Spill Response Plan, including a net environmental benefit analysis framework; b) Pipeline Oil Spill Response Plan; c) Kitimat Terminal Oil Spill Response Plan; d) Marine Oil Spill Response Plan; and e) all related and accompanying plans, such as Tactical Watercourse Plans, Pre-SCAT (Shoreline Clean-Up Assessment Technique) and River Substrate Surveys, Response Tactics for Floating Oil, Response Tactics for Submerged and Sunken Oil, Control Points, Access Plans, Geographic Response Plans, an Oil Pollution Prevention Plan, and an Oil Pollution Emergency Plan. The plan must include the following information in relation to the above documents: i) steps to be undertaken in completing them; ii) approximate timing for their completion; iii) interested parties that will be consulted; and iv) a description of all federal and provincial regulations that need to be adhered to. Freshwater Fish and Fish Habitat Compensation Plan Northern Gateway must file with the NEB, at least 30 days prior to commencing construction , a final Freshwater Fish and Fish Habitat Compensation Plan for the pipeline right-of-way that details offset measures. With this plan, Northern Gateway must include: a) a letter from Fisheries and Oceans Canada indicating its approval of the plan; and b) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the Freshwater Fish and Fish Habitat Compensation Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them. Marine Habitat Compensation Plan Northern Gateway must file with the NEB, at least 30 days prior to commencing construction , a final Marine Habitat Compensation Plan. With this plan, Northern Gateway must include: a) a letter from Fisheries and Oceans Canada indicating its approval of the plan; and b) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the Marine Habitat Compensation Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them. Post-construction environmental monitoring methods (terrestrial and freshwater) Northern Gateway must file with the NEB, at least 30 days prior to commencing construction : a) the methods, including frequency and duration, for conducting post-construction environmental monitoring for all terrestrial and freshwater areas disturbed during construction; b) the criteria to be used for evaluating reclamation success; and c) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, Environment Canada, the British Columbia Ministry of Environment, and Alberta Environment regarding the post-construction environmental monitoring methods and criteria. This summary must include any issues or concerns raised regarding the methods and criteria and how Northern Gateway has addressed or responded to them. Secondary containment at the Kitimat Terminal Northern Gateway must construct the secondary containment at the Kitimat Terminals tank terminal such that its capacity can accommodate six times the volume of the largest tank in the tank terminal. It must also provide accommodation for peak precipitation, and have allowances for potential future tanks and for water generated from potential firefighting activities. Northern Gateway must file with the NEB, at least 30 days prior to commencing construction , confirmation that its design incorporates this requirement.

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Watercourse crossing designs For all the watercourse crossings that are to be constructed within a common season or time period, Northern Gateway must file with the NEB for approval, at least 90 days prior to commencing their construction : a) an updated aquatic catalogue for all the watercourse crossings based on centreline surveys; b) an updated Watercourse Crossing Inventory for all the watercourse crossings, in both Adobe PDF and Microsoft Excel spreadsheet formats, describing the watercourse name and numerical identifier, coordinates, stream class, width of wetted channel, primary and contingency construction methods, minimum pipeline cover (except for aerial crossings), navigability, fish habitat status, and level of assessment; c) detailed final design drawings and plans for both the proposed primary and contingency construction methods for all high-, medium-high, and medium-risk watercourse crossings to mitigate environmental or safety concerns including, calculated vertical and lateral scour potential, and proposed mitigation measures; d) design flood values for all high-, medium-high and medium-risk watercourse crossings, including for those where a trenchless crossing method is proposed as the primary construction method; e) detailed final drawings of typical designs for open-cut and isolated crossings of various watercourse types; f) an updated listing of navigable waterways to be crossed by the pipeline or affected by Project infrastructure, Project effects on navigation and navigation safety (outside of marine shipping), any issues or concerns raised by waterway users and Aboriginal groups regarding navigation use, how Northern Gateway has addressed or responded to those issues or concerns, and proposed mitigation measures to address Project effects on navigation and navigation safety for each navigable waterway; g) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the designs; and h) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, Environment Canada, the British Columbia Ministry of Environment, and Alberta Environment regarding the watercourse crossing designs. This summary must include any issues or concerns raised regarding these designs and how Northern Gateway has addressed or responded to them. Northern Gateway must not commence construction of a watercourse crossing until all pre-construction conditions have been satisfied for the construction spread, region, or work area in which the crossing is located. Provisional least risk periods For all the watercourse crossings that are to be constructed within a common season or time period, Northern Gateway must file with the NEB for approval, at least 90 days prior to commencing their construction : a) a list of the provisional least risk periods for each watercourse crossing with no established least risk period that reflects the habitat use by fish during the proposed construction period; b) the rationale for each provisional least risk period; c) any additional mitigation measures that will be applied in each case; and d) a summary of Northern Gateways consultation with Fisheries and Oceans Canada and the British Columbia Ministry of Environment that describes their views on the provisional least risk periods and any additional mitigation measures to be applied. Northern Gateway must not commence construction of a watercourse crossing until all pre-construction conditions have been satisfied for the construction spread, region, or work area in which the watercourse crossing is located .

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129-130 Tunnel infrastructure Northern Gateway must file with the NEB, at least 6 months prior to commencing tunnel construction activities : a) a report on the characterization of the rock mass quality and groundwater conditions expected to be encountered during construction and how they will be addressed during construction; b) details of mitigation measures for control and treatment of groundwater during construction and for the life of the tunnels; c) details of mitigation measures for the treatment of sulphide-bearing rock, if encountered; d) tunnel confined space entry procedures during and following construction; e) final cross-sectional design drawings; and
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129-130 f) details of the construction plans for the tunnels, including: i) construction methods to be used; ii) permanent road access; iii) tunnel portals and doors; iv) geohazard mitigation measures at tunnel entrances; v) tunnel lining system; vi) ground support system; vii) ventilation and lighting; viii) location, size, and design of waste rock disposal areas; ix) plans for disposing of any waste rock that cannot be stored in the waste rock disposal areas; and x) location, size, and design of staging areas. Phase: PrIOr tO cOmmencIng OperatIOns / dUrIng cOnstrUctIOn 131 Construction progress reports Northern Gateway must file with the NEB monthly construction progress reports during construction . The reports must include information on the progress of activities carried out during the reporting period. These reports must include safety, environmental, and security non-compliances that occurred during each reporting period and the measures undertaken to resolve them. These reports must also include a description of any changes made to geohazard mitigation measures, the location of any pressure tests carried out during the reporting period, and a description of any unsuccessful pressure tests and their cause. Quality assurance and control plans and procedures Northern Gateway must file monthly summary reports during construction outlining non-conformances with its design, materials, and construction specifications, as well as the disposition of these non-conformances. Aboriginal, local, and regional employment monitoring reports Northern Gateway must file with the NEB, within 3 months after commencing construction , and every 6 months thereafter until completing construction , monitoring reports for Aboriginal, local, and regional employment for the Project. The reports must include: a) a summary of the elements or indicators monitored; b) a summary and analysis of Aboriginal, local, and regional employment during the reporting period, including: i) progress made toward meeting Northern Gateways commitment of 15 per cent Aboriginal employment; ii) if the 15 per cent Aboriginal employment commitment is not met, an explanation why; and iii) any proposed measures to address identified or potential gaps or barriers in meeting the 15 per cent Aboriginal employment commitment; and c) a summary of Northern Gateways consultation with relevant Aboriginal, local, and regional communities, and industry groups or representatives regarding employment for the reporting period. This summary must include any issues or concerns raised regarding employment and how Northern Gateway has addressed or responded to them. Northern Gateway must file with the NEB, within 6 months after completing construction , a final report on employment during the construction phase. Northern Gateway must also file with the NEB, on or before 31 January of every third year after commencing operations , employment monitoring reports, addressing a), b), and c) above, for the Projects operational phase. Aboriginal contracting and procurement monitoring reports Northern Gateway must file with the NEB, within 3 months after commencing construction , and every 6 months thereafter until completing construction , monitoring reports for Aboriginal contracting and procurement for the Project. The reports must include: a) a summary of the elements or indicators monitored; b) a summary and analysis of Aboriginal contracting and procurement opportunities awarded or active during the reporting period, including: i) progress made toward meeting Northern Gateways commitment for $300 million for Aboriginal contracting and procurement; and

129

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ii) any proposed measures to address identified or potential gaps or barriers in meeting the $300 million commitment for Aboriginal contracting and procurement; and c) a summary of Northern Gateways consultation with relevant Aboriginal groups, businesses, and individuals regarding Aboriginal contracting and procurement for the reporting period. This summary must include any issues or concerns raised regarding Aboriginal contracting and procurement and how Northern Gateway has addressed or responded to them. Northern Gateway must file with the NEB, within 6 months after completing construction , a final report. FLC annual report Northern Gateway must file with the NEB, on or before 31 January of each year after commencing in-water construction for the Kitimat Terminal, and for the Projects operational life , an annual report describing the FLCs activities, recommendations, and outcomes. The reports must include: a) a list of the FLC members for each year; b) a summary of key FLC activities, including all recommendations; c) a description of how each recommendation was implemented or, if any recommendations were not implemented, a rationale for why not; d) a summary of any issues or concerns brought forward for dispute resolution, including the parties involved, and how these were resolved; e) a description of, and explanation for, any unresolved issues or concerns, and any steps required to resolve them to the greatest extent possible; f) a summary of compensation protocols; and g) the measured outcomes of each goal established under the FLC operational guidelines (required by Condition 52). Construction Marine Mammal Protection Plan reporting Northern Gateway must file with the NEB, on or before 31 January of each year after commencing in-water construction for the Kitimat Terminal, for the duration of in-water construction, a report describing the results of the monitoring activities, referred to in the Construction Marine Mammal Protection Plan (required by Condition 51), that were completed during the calendar year prior to filing.

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139-140 Trenchless watercourse crossing completions and contingency plans Northern Gateway must file with the NEB either: a) upon successful completion of each trenchless watercourse crossing , confirmation of its completion; or b) in the event that the primary construction method for a proposed trenchless watercourse crossing is not practicable, the following information, at least 10 days prior to constructing the crossing : i) notification of which contingency method, as approved under Conditions 125-126, will be used and the rationale for the change; and ii) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, the British Columbia Ministry of Environment, and Alberta Environment regarding the contingency crossing method implementation. 141-142 Construction outside of least risk periods For each watercourse crossing where construction is to occur outside the established or accepted provisional least risk period, Northern Gateway must: a) where a trenchless crossing is proposed, notify the NEB at least 15 days prior to constructing the crossing ; or b) where a trenched crossing is proposed, file with the NEB for approval, at least 60 days prior to constructing the crossing: i) the rationale for constructing outside of the least risk period; ii) a watercourse crossing plan, including proposed timing and any additional mitigation measures that will be applied; and iii) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, the British Columbia Ministry of Environment, and Alberta Environment regarding the proposed crossing schedule and plan. This summary must include any issues or concerns raised regarding the schedule and plan and how Northern Gateway has addressed or responded to them.
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143-144

Pipeline construction within tunnels Northern Gateway must file with the NEB, at least 6 months prior to commencing pipeline installation in the tunnels , a detailed description of how the pipeline segments within the tunnels will be constructed, including welding, NDE, protective coatings, and pressure testing. Geohazard Assessment, Mitigation, and Monitoring Report Northern Gateway must file with the NEB for approval, at least 6 months prior to commencing pipe installation , a final Geohazard Assessment, Mitigation, and Monitoring Report that describes, at a minimum: a) in a table and/or using maps, the specific and combined geohazards identified that could have a reasonable probability of impacting the Project; b) specific design measures, including grading, special materials, installation procedures, protective structures, increased burial depth, erosion mitigation measures, and monitoring, that will be implemented to mitigate individual and combined geohazards; c) staff qualifications for those making decisions regarding the assessment and mitigation design; and d) ongoing monitoring requirements. For the pipeline, Northern Gateway must assess the terrain from height of land on both sides of the pipeline route in the Coast and Rocky Mountains. For the Kitimat Terminal, Northern Gateway must consider marine geotechnical studies (e.g., submarine or sub-aerial to submarine landslides) that could potentially impact near-shore facilities. The report must include a copy of the report(s) by the independent geohazard working group (or committee) comprised of geohazard specialists* from various organizations, including, governments, local experts, and Northern Gateways consultants. * In this case, geohazard specialists must have a post-secondary education, experience, and a licence to practice geosciences. Geohazard specialists can include geotechnical engineers, geophysicists, geochemists, geomorphologists, and hydrogeologists.

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145-147

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148-150 Updated engineering alignment sheets and drawings Northern Gateway must file with the NEB, at least 90 days prior to commencing pipe installation , updated engineering alignment sheets and drawings and, as they become available and prior to their implementation , any modifications to those sheets and drawings. 151-153 Specifications for field-applied coatings Northern Gateway must file with the NEB, at least 60 days prior to commencing pipe installation , its product and application specifications for field-applied coatings. Pipeline overpressure risk reduction Northern Gateway must ensure that the maximum operating head profile of the pipeline is greater than or equal to the maximum discharge head of the upstream pump station. Northern Gateway must file with the NEB, at least 60 days prior to commencing pipe installation , confirmation that it has implemented this requirement. In the event that this is not possible , Northern Gateway must file design and operational measures that will reduce or eliminate the risk of overpressure at those locations. Field changes manual for geohazard mitigation Northern Gateway must file with the NEB for approval, at least 90 days prior to commencing pipe-laying activities , a field changes manual for geohazard mitigation. This manual must include: a) decision criteria for implementing mitigation for any geohazards identified during construction; b) specific criteria for implementing changes to the designs, grading, special materials, protective structures, increased burial depth, installation procedures, erosion mitigation measures, and monitoring as specified in the Geohazard Assessment, Mitigation, and Monitoring Report (required by Conditions 145-147); and c) details regarding the required qualifications of its field staff that will implement the manual. NDE of final tie-in welds Northern Gateway must delay NDE of final tie-in welds and any repairs to them for 48 hours following weld completion . Northern Gateway must include this requirement in the NDE specification of its Joining Program (required by Conditions 46-48).

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156-158

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162-163

Radiographer and ultrasonic technicians Northern Gateway must use only Canadian General Standards Board-certified radiographers and ultrasonic technicians to operate any NDE inspection equipment, and for the final interpretation of radiographic film and the results of the ultrasonic inspection system. Northern Gateway must file with the NEB, at least 30 days prior to commencing NDE operations , confirmation of compliance. Pressure testing a) Northern Gateway must pressure test the Project facilities with a liquid medium. b) Northern Gateway must file with the NEB for approval, at least 90 days prior to commencing pressure testing , a Pressure Testing Program that demonstrates compliance with applicable codes, standards, and regulatory requirements. Enhanced marine spill trajectory and fate modelling Northern Gateway must file with the NEB for approval, at least 3 years prior to commencing operations , a plan to prepare enhanced marine spill trajectory and fate modelling for the Kitimat Terminal and marine tanker traffic. The plan must include: a) a summary of Northern Gateways consultation with Environment Canada regarding the scope of work to be undertaken. This summary must include any issues or concerns raised regarding the scope of work and how Northern Gateway has addressed or responded to them; b) the membership of a Scientific Advisory Committee and its Terms of Reference; c) a schedule for completing the work and confirmation that it will be completed prior to commencing operations; d) the scenarios to be modelled that, at minimum, must include the same six scenarios in terms of locations and potential spill volumes included in Northern Gateways modelling work referenced in Exhibit B3-22 (Volume 7C of the Project application, Section 9 - Examples for Response Planning), and Exhibit B3-42 (Volume 8C of the Project application, Section 10 - Mass Balance Examples for Response Planning); and e) a discussion of how Northern Gateway will include the following in its enhanced modelling: i) stochastic calculations and visual representations; ii) how the model will be adapted to different physical and chemical characteristics of the oil that is intended to be shipped from the Kitimat Terminal, with particular reference to density, viscosity, emulsion formation, adhesion properties, and evaporation rates; iii) oil remobilization from the shorelines due to tidal or other influences, such as varying adhesion properties of the oil intended to be shipped from the Kitimat Terminal, and oil retention times; iv) submerged or entrained oil resurfacing; v) potential for oil to sink based on weathering and adhesion to sediment; vi) how weathering and trajectory models will be integrated to provide an accurate representation of the potential fate of oil within the environment; vii) h ow the models will be adaptable to any time of the year and to varying meteorological and hydrological conditions; and viii) how the models will be used to inform decision-making during spill response exercises and actual spill events. Consultation with interested parties on emergency preparedness and response Northern Gateway must file with the NEB, at least 3 years prior to commencing operations , a plan for consulting on emergency preparedness and response for the pipeline and the Kitimat Terminal. This plan must include: a) the consultation plans scope; b) the consultation plans objectives; c) a preliminary list of regulatory authorities to be consulted; d) a preliminary list of communities and Aboriginal groups to be consulted; e) a preliminary list of consultation locations and timing; and f) the methods to track commitments made during consultation and to incorporate them into final Emergency Preparedness and Response Plans.

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169

Research program on the behavior and cleanup of heavy oils Northern Gateway must file with the NEB for approval, at least 3 years prior to commencing operations , a plan to lead, or jointly lead with other government and industry participants, a research program regarding the behavior and cleanup (including recovery) of heavy oils spilled in freshwater and marine aquatic environments. The plan must include: a) the funding required to ensure the developed research program is undertaken and concluded within a specified funding period, with details about: i) the level and duration of funding contributed by Northern Gateway; and ii) the levels and duration of funding from other sources; b) a plan for consulting with the NEB, Environment Canada, Transport Canada, the Canadian Coast Guard, the Province of British Columbia, and any other stakeholders that Northern Gateway will consult with, including Aboriginal groups; c) the membership of a Scientific Advisory Committee and its Terms of Reference; d) topics to be addressed through the research, including varying physical and chemical properties of the oil intended to be shipped from the Kitimat Terminal, product weathering, dispersion and oil/sediment interactions, product submergence, product behavior and cleanup following in-situ burning, and cleanup and remediation options for sediments and shoreline; e) the scope, objectives, methods, and timeframe for the research topics as they pertain to both laboratory and field work; f) how Northern Gateway will incorporate the results of the research into its enhanced marine spill fate and trajectory models; g) how Northern Gateway will incorporate the results of the research into its emergency preparedness and response plans; and h) how Northern Gateway will make the results of the research available to spill responders and relevant government authorities in the event of a spill. Annual research program progress reports Northern Gateway must file with the NEB, on or before 31 January of each year for the duration of the research program on the behavior and cleanup of heavy oils (required by Condition 169), a progress report that demonstrates the extent to which the objectives of the research program have been achieved and that includes: a) an update on timing and the status of the work undertaken that year; b) results from research conducted during the calendar year prior to filing; c) work to be undertaken in the upcoming year; and d) any other matters that Northern Gateway wants to bring to the NEBs attention related to the research project. Pre-operations emergency response exercises a) Prior to commencing operations, Northern Gateway must complete full-scale exercises to test the following six scenarios, one of which must be unannounced: i) a full-bore rupture under ice and snow conditions in the Coastal Mountains; ii) a full-bore rupture into the Athabasca River under peak flow conditions; iii) a full-bore rupture into the Kitimat River during high spring flow conditions; iv) a full-bore rupture into the Clore River during high spring flow conditions; v) a 250-cubic-metre condensate release into Kitimat Arm as a result of a release from the Kitimat Terminal; and vi) a 250-cubic-metre diluted bitumen release into Kitimat Arm as a result of a release from the Kitimat Terminal. b) Northern Gateway must conduct each exercise with the objectives of testing: i) emergency response procedures; ii) company personnel training; iii) communications systems; iv) response equipment; v) safety procedures; and vi) the effectiveness of its liaison and continuing education programs.

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c) Northern Gateway must notify the NEB, at least 45 days prior to the date of each exercise (other than the unannounced exercise), of: i) the exercises date and location(s); ii) the objectives, if different from those noted above; iii) the participants in the exercise; and iv) the scenario for the exercise. d) Northern Gateway must file with the NEB, within 60 days after completing each exercise, a report on the exercise that includes: i) the results of the completed exercise; ii) areas for improvement; and iii) steps to be taken to correct deficiencies. Emergency Preparedness and Response Exercise and Training Program Northern Gateway must file with the NEB, at least 18 months prior to commencing operations , an Emergency Preparedness and Response Exercise and Training Program for the pipeline and the Kitimat Terminal. The programs objective is to demonstrate the continual improvement of responder competencies (including control centre personnel) at all levels of the company to prepare for, respond to, recover from, and mitigate the potential effects of emergencies of any type. The program must include: a) a defined scope, other objectives in addition to those noted above, and program targets that address responder turnover and ensure responders ongoing training and practice; b) a list of mandatory courses for responders; c) how Northern Gateway will train its personnel to respond to all hydrocarbon spill scenarios in various seasons, including releases of hydrocarbons in mountain regions during winter conditions, into ice covered watercourses, and into watercourses under varying flow conditions; d) with the exception of unannounced exercises, a description of, and schedule for, all emergency response exercises (fullscale, tabletop, drills, functional) that Northern Gateway will conduct prior to operations to test a variety of scenarios; e) a plan, including rationales, for determining the schedule and frequency of all planned and unannounced emergency response exercises (full-scale, tabletop, drills, functional) to test a variety of scenarios during the Projects operational life. At a minimum, this must include how a full range of exercises will be used to test the following 6 scenarios within the first 5 years of operations: i) a full-bore rupture under ice and snow conditions in the Coastal Mountains; ii) a full-bore rupture into the Athabasca River under peak flow conditions; iii) a full-bore rupture into the Kitimat River during high spring flow conditions; iv) a full-bore rupture into the Clore River during high spring flow conditions; v) a 250-cubic-metre condensate release into Kitimat Arm as a result of a release from the Kitimat Terminal; and vi) a 250-cubic-metre diluted bitumen release into Kitimat Arm as a result of a release from the Kitimat Terminal; f) a learnings implementation plan for exercises that considers how Northern Gateway will update and amend its Emergency Preparedness and Response Plans and related documents following exercises. The learnings implementation plan must consider three main purposes: i) to validate plans; ii) to develop responder competencies (including control centre personnel) and provide them with the opportunity to carry out and understand their roles in emergency response; and iii) to test Project-specific and well-established emergency preparedness and response procedures; g) a plan for addressing the training requirements contained within the National Energy Board Onshore Pipeline Regulations (as amended from time to time) and associated documents, such as the NEBs 24 April 2002 letter Security and Emergency Preparedness and Response Programs and the NEBs Notice of Proposed Regulatory Change 2011-01 Management Systems (as amended or superseded from time to time); and h) confirmation that a third party (as defined) has reviewed and assessed the Emergency Preparedness and Response Exercise and Training Program and that Northern Gateway has considered and incorporated the comments generated by that review and assessment into the program.
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Filing Marine Oil Spill Preparedness and Response Plans with federal and provincial authorities Northern Gateway must file with the NEB, at least 1 year prior to commencing operations, confirmation that it has prepared its marine-related oil spill preparedness and response plans in accordance with its Framework for Marine Oil Spill Preparedness and that it has filed these plans for review and comment with Transport Canada, the Canadian Coast Guard, Environment Canada, and the Province of British Columbia. This confirmation must include a description of how Northern Gateway will address or respond to any issues or concerns raised by these authorities. Emergency Preparedness and Response Plan for the pipeline Northern Gateway must file with the NEB, at least 1 year prior to commencing operations , an Emergency Preparedness and Response Plan for the pipeline to verify compliance with its commitments regarding emergency preparedness and response, including its Framework for Pipeline Oil Spill Preparedness and the National Energy Board Onshore Pipeline Regulations (as amended from time to time). The plan must demonstrate Northern Gateways ability to prepare for, respond to, recover from, and mitigate the potential effects of emergencies of any type and in any geographic region or season and must include: a) the relevant emergency preparedness and response documents as follows: i) General Oil Spill Response Plan; ii) Pipeline Oil Spill Response Plan; and iii) all related and accompanying plans, such as Tactical Watercourse Plans, Pre-SCAT (Shoreline Clean-Up Assessment Technique) and River Substrate Surveys, Response Tactics for Floating Oil, Response Tactics for Submerged and Sunken Oil, Control Points, Access Plans, and Geographic Response Plans.; b) an emergency response and preparedness table for the pipeline indicating which plans will be referred to in an emergency response for each 10-kilometre-long pipeline segment. For each pipeline segment, the table must also identify, at a minimum: i) high consequence areas; ii) potentially-affected persons or groups; iii) available access to the right-of-way and high consequence areas; iv) nearest control point(s); v) nearest available equipment cache(s); vi) response times for equipment and personnel to the right-of-way and high consequence areas; vii) geological, meteorological, and geographical hazards (e.g., snow avalanche, mud slides, rock slides, and steep slopes); and viii) site-specific technology and specialized mitigation (e.g., trajectory models for emergency response, off-channel diversion ponds, and hydrocarbon sensors) applicable to emergency response; c) how the plan conforms to requirements contained within the National Energy Board Onshore Pipeline Regulations (as amended from time to time) and associated documents, including the NEBs 24 April 2002 letter Security and Emergency Preparedness and Response Programs and the NEBs Notice of Proposed Regulatory Change 2011-01 - Management Systems (as amended or superseded from time to time); and d) confirmation that a third party (as defined) has reviewed and assessed the Emergency Preparedness and Response Plan and that Northern Gateway has considered and incorporated the comments generated by the review and assessment into the plan. Emergency Preparedness and Response Plan for the Kitimat Terminal Northern Gateway must file with the NEB, at least 1 year prior to commencing operations , an Emergency Preparedness and Response Plan for the Kitimat Terminal to verify compliance with its commitments regarding emergency preparedness and response, including its Framework for Pipeline Oil Spill Preparedness and the National Energy Board Onshore Pipeline Regulations (as amended from time to time). The plan must demonstrate geographic familiarity with the area and the response needed to prepare for, respond to, recover from, and mitigate the potential effects of emergencies of any type and must include: a) the relevant emergency preparedness and response documents as follows: i) General Oil Spill Response Plan; ii) Kitimat Terminal Oil Spill Response Plan; and

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iii) all related and accompanying plans, such as Tactical Watercourse Plans, Pre-SCAT (Shoreline Clean-Up Assessment Technique) Surveys, Response Tactics for Floating Oil, Response Tactics for Submerged and Sunken Oil, Control Points, Access Plans, Geographic Response Plans; b) a list of high consequence areas; c) a list of potentially-affected persons or groups; d) nearest available equipment cache(s); e) response times for equipment and personnel to the water and high consequence areas; f) how trajectory models will be used in response planning and who will be responsible for running them; g) how the plan conforms to requirements contained within the National Energy Board Onshore Pipeline Regulations (as amended from time to time) and associated documents, such as the NEBs 24 April 2002 letter Security and Emergency Preparedness and Response Programs and the NEBs Notice of Proposed Regulatory Change 2011-01 - Management Systems (as amended or superseded from time to time); and h) confirmation that a third party (as defined) has reviewed and assessed the Emergency Preparedness and Response Plan and that Northern Gateway has considered and incorporated comments generated by the review and assessment into the plan. Tunnel access control plan and safety systems Northern Gateway must file with the NEB, at least 6 months prior to commencing operations , a tunnel access control plan and a description of the safety systems to be installed in the tunnels for real-time monitoring of pipeline vibrations, temperature, air quality, fire, and gas. Availability of enhanced marine spill trajectory and fate models for spill responders Northern Gateway must file with the NEB, at least 90 days prior to commencing operations , a description of how it will make its enhanced marine spill trajectory and fate models for the Kitimat Terminal and marine tanker traffic available to, in addition to the Response Organization, the following authorities in the event of a spill: a) the NEB; b) Environment Canada; c) Transport Canada; d) the Canadian Coast Guard; and e) the Province of British Columbia. Third party damage prevention condensate pipeline Northern Gateway must file with the NEB, at least 90 days prior to commencing operations , a report that assesses additional protective measures to reduce the likelihood of third party damage to the condensate pipeline in the vicinity of the Whitecourt casino, Burns Lake, and Kitimat. SCADA and leak detection system design Northern Gateway must file with the NEB, at least 90 days prior to commencing operations , a report describing the pipelines SCADA and leak detection systems final design. The report must include information suitable for establishing a baseline for the quality program for its SCADA and leak detection systems. The report must also include: a) a description of the SCADA and leak detection systems; b) the locations and types of pressure, temperature and flow monitoring, control devices, and remote terminal units; c) the locations of remotely-operated valves; d) the target detectability (i.e., amounts leaked, time to detect, leakage rate); e) the target sensitivity (i.e., minimum leak size); f) the target reliability (i.e., false alarm rate, failure to alarm rate); g) the expected system robustness (i.e., system availability considering system operating conditions); h) the target accuracy (i.e., size and location of a detected leak); and i) a description of the quality program using both direct and inferred methods that Northern Gateway will implement during pipeline operations to ensure optimal performance.

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183-184 Overpressure protection Northern Gateway must install both pressure control valves and variable frequency drives at all of its pump stations and file with the NEB , at least 30 days prior to commencing operations , confirmation of compliance.
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Column separation Northern Gateway must: a) identify locations having potential for slack line flow when the pipeline is operated at 100 per cent of its maximum operating pressure (MOP), 80 per cent of its MOP and 50 per cent of its MOP; b) install pressure transmitters at the high points identified; c) provide alarms for the pipeline operators to provide warnings when these conditions occur; d) develop operating procedures that require operating the pipeline in a manner that prevents column separation; and e) file with the NEB, prior to applying for leave to open, confirmation that the requirements of a) to d) have been met. Financial Assurances Plan operations phase a) Northern Gateway must file with the NEB for approval, at least 9 months prior to applying for leave to open, a Financial Assurances Plan that includes details of the financial resources and secured sources of funds that will be capable of covering the costs of liabilities for, without limitation, cleanup, remediation, and other damages caused by the Project during the operations phase. These costs may arise from, among other things, potential accidents, malfunctions, and failures during the Project operations phase, including all spills originating from the pipeline and the Kitimat Terminal, up to and including spills of a quantity that have the potential of being a catastrophic event. The Financial Assurances Plan must be signed by an officer of the company, verifying that it is accurate, complete, and, at a minimum, meets the criteria and coverage levels described below: i) Criteria for financial assurance instruments and plan: A ny financial or insurance instruments included in the financial assurance plan for the purpose of covering the costs of liabilities for, without limitation, cleanup, remediation, and other damages must be dedicated for this purpose, isolated from Northern Gateways day-to-day operating and capital accounts and unfettered by pre-existing claims, including those of creditors, and draws from limited partners. A ny letter of credit that forms part of the Financial Assurances Plan must be unconditional and irrevocable, segregated from Northern Gateways day-to-day business activities, and be dedicated to providing funds to cover the costs of liabilities for, without limitation, cleanup, remediation, and other damages. Third party liability insurance must be stand-alone, current, and broad, respecting the scope of environmental damages covered by the policy (i.e., only exceptional/non-standard perils, taking into account the Projects nature and scope, would be excluded from coverage). Such insurance must be structured on a multi-year basis, recognizing potential loss of income by persons sustaining damage caused by Northern Gateway, over a reasonable number of years after the event. A portion of cash reserves or a portion of future cash flows of the Project may be included as instruments in the Financial Assurances Plan, provided they are secured by a commitment letter from a senior officer of the company confirming that the funds will be dedicated to the Financial Assurances Plan without restrictions for the period specified by the officer. I mmediately after a catastrophic event, sales of Project assets used for transporting hydrocarbons will not be eligible as financial assurance instruments in the Financial Assurances Plan unless Northern Gateway intends to abandon the facilities rather than continuing to use them in operating the Project. Parental and other third party guarantors must be registered within a Canadian jurisdiction and should have financial strength that is demonstrated in balance sheet values and ratios and credit ratings. For example, total assets less total liabilities of the guarantor should be several multiples of the liability assumed in the Northern Gateway guarantee. ii) Financial assurance components and coverage levels: N orthern Gateways Financial Assurances Plan must provide a total coverage of $950 million* for the costs of liabilities for, without limitation, cleanup, remediation, and other damages caused by the Project during the operations phase. The plan should include the following components and minimum coverage levels: Ready cash: Within 10 business days after a large spill from any Project component , Northern Gateway must have unfettered access to at least $100 million to cover costs, including compensation to third parties for losses * The Panels basis for this coverage level is described in Chapter 11 of its report.

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and damages in the near term, while insurance claims are being processed. Once used, this source of cash must be replenished immediately to cover the costs of a potential future spill. Core coverage: Put in effect and maintain current at all times a core financial coverage of at least $600 million that includes third party, stand-alone liability insurance and other financial assurance instruments that comply with the criteria. Financial backstopping for costs that exceed the payout of all other components in the plan: Financial backstopping arrangements, such as parental and other third party guarantees and no fault insurance, must be in place at all times for a minimum amount of $250 million. The purpose of this component would be to make up any shortfall in the core coverage. Below are some illustrative financial and insurance instruments that could be potential candidates for the Financial Assurances Plan: irrevocable, unfettered letter of credit; secured line of credit; some cash reserves held by the general partner and not distributed to the limited partners (and verifiable on Northern Gateway Pipelines Limited Partnerships balance sheet); some internal cash flow, including up to 1 year under force majeure conditions per Article 15 of the TSA, committed by Northern Gateway to financial assurances; incremental revenues from a toll surcharge to cover operating expenses arising from environmental issues per Section 7(g) of the applicable pipeline toll principles; third party liability insurance with exclusions for only exceptional/non-standard perils; no fault third party liability insurance; parental and other third party guarantees provided by parties demonstrating financial strength through balance sheets and credit ratings; and other instruments developed by Northern Gateway and the insurance and financial markets. b) Northern Gateway must file with the NEB: i) at least 6 months prior to applying for leave to open, a report from a third party (as defined) assessing the Financial Assurances Plan and its key components against the criteria and actual experiences of industry damage claims. The report must summarize the key features of each financial and insurance instrument proposed for inclusion in the Financial Assurances Plan; ii) at least 3 months prior to applying for leave to open, a supplement to the report described in b) i) that provides verification of any third party liability insurance coverage, a copy of the insurance certificate, and a summary of the insurance policys key features. This summary must include: limits on insurance coverage, deductible amounts, the risks and perils and properties covered by the insurance policy, the exclusions from coverage, Northern Gateways obligations, effective dates, and names of insurers and reinsurers; and iii) with its leave to open application, a report describing the steps it took to eliminate any deficiencies in its Financial Assurances Plan that were identified in the third party report in b) i) and the NEBs subsequent review. 187

188-190 Offset Measures Plan for residual effects on caribou habitat Northern Gateway must file with the NEB for approval, in accordance with the timelines below, an Offset Measures Plan for each affected caribou range to offset all residual Projectrelated effects resulting from directly- and indirectly-disturbed caribou habitat, after taking into account the implementation of the Construction EPMP and CHRP measures. a) A preliminary version, to be filed at least 90 days prior to applying for leave to open, with the plans criteria and measurable objectives and that includes: i) an initial quantification of the area of caribou habitat directly- and indirectly-disturbed; ii) a list of the potential offset measures available; iii) each potential offset measures appropriate offset ratio; iv) each potential offset measures expected effectiveness; v) each potential offset measures relative value toward achieving the offset;
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vi) a conceptual decision-making tree(s) or process that will be used to select which specific potential offset measures and accompanying offset ratios will be used under what circumstances; and vii) h ow the actions undertaken in the Linear Feature Management and Removal Plan (required by Conditions 71-73) will relate to the Offsets Measures Plan. b) A final version, to be filed on or before 31 January after the second complete growing season after commencing Project operations, including: i) the preliminary Offset Measures Plan, with any updates identified in a revision log that includes the rationale for any changes; ii) a detailed decision-making tree(s) or process that will be used to select which specific potential offset measures and accompanying offset ratios will be used under what circumstances; iii) a tabular list of the potential offset measures and appropriate offset ratios to be implemented or already underway, including a description of site-specific details and maps showing the locations; iv) a schedule indicating when potential offset measures will be started and their estimated completion date; v) either an assessment of the potential offset measures effectiveness and their value in offsetting residual effects, or a plan for completing an assessment of the potential offset measures effectiveness and value; and vi) an update on the restoration success to support offset measure decisions. Both the preliminary and final versions of the plan must also include a summary of Northern Gateways consultation with Environment Canada, appropriate provincial authorities, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the Offset Measures Plan. This summary must include a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the plan, any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them. Operations Marine Mammal Protection Plan Northern Gateway must file with the NEB for approval, at least 6 months prior to loading or unloading oil or condensate tankers at the Kitimat Terminal , an Operations Marine Mammal Protection Plan. The plan must be prepared in accordance with the Framework for the Marine Mammal Protection Plan filed during the OH-4-2011 proceeding, and must include: a) all marine mammal mitigation measures and monitoring that will be implemented for the Projects operational life; b) a description of how Northern Gateway has taken available and applicable ATK and TLU studies into consideration in developing the plan; c) a summary of Northern Gateways consultation with Fisheries and Oceans Canada, Transport Canada, other appropriate stakeholders, and potentially-affected Aboriginal groups regarding the Operations Marine Mammal Protection Plan. This summary must include any issues or concerns raised regarding the plan and how Northern Gateway has addressed or responded to them; d) a description of how Northern Gateway will determine mitigation measure effectiveness; and e) a discussion of how Northern Gateway will incorporate research and monitoring results into the Operations Marine Mammal Protection Plan throughout the Projects operational life to adaptively manage potential effects on marine mammals.

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Phase: After cOmmencIng OperatIOns 192 Emergency response exercises during operations a) Northern Gateway must conduct each operations phase emergency response exercise described in its Emergency Preparedness and Response Exercise and Training Program (required by Condition 172) with the objectives of testing: i) emergency response procedures; ii) company personnel training; iii) communications systems; iv) response equipment; v) safety procedures; and vi) the effectiveness of its liaison and continuing education programs.

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b) Northern Gateway must notify the NEB, at least 45 days prior to the date of each tabletop and full-scale emergency response exercise (other than unannounced exercises), of: i) the exercises date and location(s); ii) the objectives, if different from those noted in a); iii) the participants in the exercise; and iv) the scenario for the exercise. c) Northern Gateway must file with the NEB, within 60 days after completing each tabletop and full-scale emergency response exercise and, for all other emergency response exercises, on or before 31 January of each year after commencing operations, a report on the exercise(s) that includes: i) the results of the completed exercise(s); ii) areas for improvement; and iii) steps to be taken to correct deficiencies. Final research program report Within 6 months after completing its research on the behavior and cleanup of heavy oils (required by Condition 169), Northern Gateway must file with the NEB, Environment Canada, Transport Canada, the Canadian Coast Guard, the Province of British Columbia, and other stakeholders that participated in the research, such as Aboriginal groups, a final report that includes: a) the results of all research undertaken; b) a discussion of how the findings will be used in spill response planning; c) how Northern Gateway will incorporate the results of the research into its marine spill fate and trajectory models and the timeframe for doing so; and d) how Northern Gateway will make the results of the research available to spill responders and relevant government authorities in the event of a spill. Caribou Habitat Restoration and Offset Measures Monitoring Program Northern Gateway must file with the NEB for approval, on or before 31 January after the first complete growing season after commencing operations , a program for monitoring and verifying the effectiveness of the caribou habitat restoration and offset measures implemented as part of the CHRP (required by Conditions 60-62) and Offset Measures Plan (required by Conditions 188-190). This program must include: a) the scientific methods or protocols for short- and long-term monitoring of the restoration and offset measures, including their effectiveness; b) monitoring frequency, timing, and locations and the rationale for each; c) protocols for how restoration and offset measures will be adapted, based on the monitoring results from the programs implementation; and d) a schedule for filing reports of monitoring results and the adaptive management responses to the NEB, Environment Canada, and appropriate provincial authorities. Any changes to this schedule must be included at the beginning of each filed monitoring report. Caribou monitoring reports Northern Gateway must file with the NEB, based on the approved schedule for the Caribou Habitat Restoration and Offset Measures Monitoring Program (required by Condition 194), a report(s) describing the programs results regarding the effectiveness of habitat restoration and offset measures for each caribou range, and how those measures will be adapted, as required, based on monitoring results.

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Post-construction environmental monitoring reports (terrestrial and freshwater) Northern Gateway must file with the NEB, on or before 31 January after the first, third, fifth, and tenth complete growing seasons after completing reclamation and final cleanup of the terrestrial and freshwater areas disturbed during construction , a post-construction environmental monitoring report specific to each completed construction spread, region, or work area (as delineated in Northern Gateways filing for Condition 8). The reports must reflect any monitoring or follow-up program developed and must:

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a) assess the effectiveness of the mitigation measures applied during construction against the criteria for success; b) identify any deviations from plans and alternate mitigation applied; c) identify locations on a map and in a table where environmental issues arose during construction and where corrective actions were taken; d) identify the current status of the issues identified (resolved or unresolved); e) provide proposed measures and the schedule that Northern Gateway will implement to address any unresolved issues or concerns; and f) a summary of any comments received from Fisheries and Oceans Canada, Environment Canada, the British Columbia Ministry of Environment, Alberta Environment, and potentially-affected Aboriginal groups and stakeholders regarding issues identified in each report. Pipeline Environmental Effects Monitoring Program: monitoring results Northern Gateway must file with the NEB, on or before 31 January of each year for the duration of the Pipeline Environmental Effects Monitoring Program (required by Conditions 27-29), a monitoring progress report that includes: a) a description of the involvement of relevant government authorities, participating Aboriginal groups, research organizations, and public stakeholder groups in monitoring activities; b) the current status of monitoring work identified as part of the program; c) results from monitoring conducted during the calendar year prior to filing; d) monitoring work to be undertaken in the upcoming year; and e) a discussion of any monitoring results that, due to natural environmental variations, are outside the range of results expected. Marine Environmental Effects Monitoring Program: monitoring results Northern Gateway must file with the NEB, on or before 31 January of each year for the duration of the Marine Environmental Effects Monitoring Program (required by Condition 36), a monitoring progress report that includes: a) a description of the involvement of relevant government authorities, participating Aboriginal groups, research organizations, and public stakeholder groups in monitoring activities; b) the current status of monitoring work identified as part of the program; c) results from monitoring conducted during the calendar year prior to filing; d) monitoring work to be undertaken in the upcoming year; and e) a discussion of any monitoring results that, due to natural environmental variations, are outside the range of results expected. Operations Marine Mammal Protection Plan reporting Northern Gateway must file with the NEB, on or before 31 January of each of the first 5 years after commencing Project operations, and every fifth year thereafter, a report describing how it incorporated the research and monitoring results, referred to in the Operations Marine Mammal Protection Plan (required by Condition 191), into the plan during the calendar year(s) prior to filing. Ongoing implementation of Marine Voluntary Commitments and the TERMPOL Review Committee recommendations Northern Gateway must file with the NEB, on or before 31 January and 1 July of each year after commencing Project operations , a report, signed by an officer of the company, documenting the continued implementation of its Marine Voluntary Commitments and the TERMPOL Review Committee recommendations, any non-compliances with these commitments and recommendations, and actions taken to correct these non-compliances.

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201-202 Quality program for the complementary leak detection systems Northern Gateway must file with the NEB, on or before 31 January after the first, third, fifth, and tenth full years after commencing Project operations , a report describing the observed detectability, sensitivity, reliability robustness, and accuracy of Northern Gateways complementary leak detection systems. 203-204 Quality program for the SCADA and leak detection systems Northern Gateway must file with the NEB, on or before 31 January after the first, third, and fifth full years after commencing Project operations, and every fifth year thereafter, a report describing the results of Northern Gateways quality program for its SCADA and leak detection systems and how identified issues were addressed.

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Financial Assurances Plan reports and updates In relation to the approved Financial Assurances Plan (required by Condition 187): a) Should there be a change in any instrument in the Financial Assurances Plan that results in Northern Gateway no longer meeting the criteria and coverage levels outlined in Condition 187, Northern Gateway must immediately notify the NEB and describe the steps being taken to ensure there is sufficient coverage in the Financial Assurances Plan. Northern Gateway must complete its remedial steps within 3 months of notifying the NEB that the criteria and coverage levels are not being met . b) Northern Gateway must file with the NEB for approval, on or before 1 July of every fifth year after commencing Project operations, a report from a third party (as defined) assessing the Financial Assurances Plan and its key components against the criteria and actual experiences of industry damage claims. The report must summarize the key features of each financial and insurance instrument included in the Financial Assurances Plan. c) Should a spill event occur more than 2 years before the second or later reports in b) are due, Northern Gateway must file with the NEB, within 1 year after the spill event , a report that assesses the adequacy of its Financial Assurances Plan and summarizes proposed changes, if any, to improve coverage.

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206-207 Pipeline inspections Northern Gateway must conduct the following pipeline inspections, at the times indicated: a) a high resolution in-line caliper inspection (i.e., a GEOPIG inspection) within 6 months after commencing operations to establish an accurate pipeline position and to detect pipe deformations; b) an in-line ultrasonic crack detection inspection within 2 years after commencing operations; c) an in-line corrosion magnetic flux leakage inspection in both the circumferential and longitudinal directions within 2 years after commencing operations; d) an in-line ultrasonic wall measurement inspection within 2 years after commencing operations; and e) an above-ground coating survey within 2 years after commencing operations. Northern Gateway must investigate all dents greater than 2 per cent of pipe diameter to ensure they are free of gouges and not associated with a weld, and must report to the NEB, within 30 days of each field investigation , any defects that were identified and repaired. Northern Gateway must file with the NEB, within 3 years after commencing operations , a report confirming completion of the surveys, investigations, and inspections. 208-209 Pipeline Geographic Information System (GIS) data Northern Gateway must file with the NEB, within 1 year after commencing operations , GIS data in the form of an Esri shape file that contains pipeline segment centre lines, where each segment has a unique outside diameter, wall thickness, MOP, external coating, field-applied girth weld coating, and pipe manufacturing specification. If the above values of the pipeline change at any point along the length of the pipeline, the pipeline should be segmented at that point. Northern Gateway must also provide GIS locations and names of pump stations, terminals, custody transfer meters, tunnel entrances, pipeline bridges, and block valves, as applicable. The datum must be NAD83 and projection must be geographic (latitudes and longitudes).

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