URBAN PIPELINE REPLACEMENT PROJECT - A NATURAL G AS PIPELINE INITIA TIVE CALGARY, ALBERTA

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URBAN PIPELINE REPLACEMENT PROJECT - A NATURAL G AS PIPELINE INITIA TIVE CALGARY, ALBERTA
Urban Pipeline
Replacement Project
A Natural Gas Pipeline Initiative
                      Calgary, Alberta

            Safety First. Always.
URBAN PIPELINE REPLACEMENT PROJECT - A NATURAL G AS PIPELINE INITIA TIVE CALGARY, ALBERTA
The Consequences of NOT
Proceeding with the UPR Project
If the Urban Pipeline Replacement (UPR) Project is not       replacements can only be determined once the testing
approved, ATCO Pipelines will pursue a course of action      is completed.
to improve the standards of the existing high-pressure
                                                             Under the UPR Project, the existing pipelines would be
pipelines in their current locations.
                                                             either decommissioned or converted to distribution lines
This will be carried out over two phases. The first phase    carrying natural gas at a much lower, and safer, pressure.
requires substantial work just to prepare the lines for
                                                             While these upgrades will improve the integrity of the
the testing and ongoing inspection activities that will
                                                             existing pipelines, they do not address our other primary
determine their reliability. The second phase will then
                                                             concerns. It leaves the pipelines near where we live,
replace those sections of the 50 to 60-year-old pipelines
                                                             work and play. Without the ability to meet the growing
that fail the testing or are deemed unreliable.
                                                             demand for natural gas, new pipelines may still have to
Both of these phases will require major construction         be constructed in the Transportation/Utility Corridor (TUC)
activities that will disturb your neighbourhoods, roadways   in the future.
and green spaces, as well as cause disruptions to your
                                                             This is why we believe the UPR Project is the only
natural gas service as the pipelines are being tested
                                                             viable solution. Building new, modern pipelines in
and replaced.
                                                             the TUC will dramatically improve public safety by
We estimate the cost to complete the work that prepares      reducing the risk of an incident and protecting the
the pipelines for testing and ongoing inspection             pipelines from other construction activities, while also
capabilities to be approximately $200 million. There         ensuring we can meet the demand for natural gas as
will be additional costs incurred to replace unsuitable      the cities continue to grow.
sections of the pipeline. The scope of the required

                               Safety First. Always.
The Project
ATCO Pipelines has developed a proactive solution,             •   inspection of 100% of the welds during
the Urban Pipeline Replacement (UPR) Project, that                 construction;
will be considered for approval by the Alberta Utilities       •   inline inspection capabilities that will detect
Commission (AUC).                                                  defects in pipelines and identify repairs required
The UPR Project is composed of 10 distinct projects                prior to an incident occurring, and
that, if approved, will see a new, modern high-pressure        •   remote monitoring technologies that provide early
network of natural gas pipelines constructed inside the            warning of threats to the integrity of the pipeline.
Transportation/Utility Corridor (TUC) of each city over a
period of five years.                                       By shifting the high-pressure transmission of natural gas
                                                            to the TUC, the UPR Project will greatly improve public
Unlike many other jurisdictions in North America,           safety and provide the additional capacity to meet the
Calgary and Edmonton benefit from the Province              growing demand for natural gas.
of Alberta’s foresight in establishing the TUCs in the
1970s to accommodate utility infrastructure as well         ATCO Pipelines believes that the UPR Project is the
as a ring road. These corridors were specifically           only viable solution to address the long-term safety
designed to provide a controlled space to safely locate     and growth of the Calgary system.
infrastructure for the growing cities.

By shifting the high-pressure transmission of natural
gas to a new, modern pipeline network located within
                                                            Cost of the UPR Project
the designated TUCs, the UPR Project will reduce the          • The project will be managed and funded by
risk of a serious incident by up to 95%.                        ATCO Pipelines, an investor-owned utility, that
                                                                ultimately recovers its costs through customer natural
The new pipelines will have significant technological           gas bills. The impact on customers’ bills will be
improvements over the existing high-pressure network            incrementally phased in as the project is completed.
including:                                                      By the end of the project, the average residential bill
                                                                will increase by less than $2 per month.
   •   modern pipeline coatings that better protect
       the pipe from corrosion;                               • The total cost of the UPR project is approximately
   •   enhanced welding practices that reduce the               $600-700 million, which includes the cost to integrate
       occurrence of leaks;                                     the new high-pressure network with the ATCO Gas
                                                                low-pressure distribution system.

Make your voice heard!
An important component of our submission to the Alberta Utilities Commission will be the feedback we
receive from you. Online, on the phone, or in person, ATCO Pipelines is committed to listening to your comments,
answering your questions, addressing your concerns and sharing your feedback.

You can make your voice heard by completing and submitting the attached comment card, calling us at
1-855-802-7546 (Mon. to Fri., 8am - 4:30pm), visiting our web site at www.atcopipelines.com/upr or meeting
with us at our Open House.

Open House:
Carriage House Inn
9030 Macleod Trail S | Tues. Jan. 29, 4 - 9pm
Calgary Pipeline Map
Natural Gas Pipelines
             to be removed from
             High-Pressure Service

             Proposed Relocation of
             High-Pressure Pipelines

             Existing High-Pressure
             Natural Gas Pipelines

             Transportation/Utility
             Corridor Boundaries

For a detailed view of this map visit www.atcopipelines.com/upr

Transportation/Utility Corridors (TUCs)
 • The Transportation/Utility Corridors (TUCs) were designed to facilitate   • They were established to protect utility alignments from advancing urban
   infrastructure development in Calgary and Edmonton by accommodating         development and offer a long-term solution to many of the land use
   the provincial ring road system, major power lines, pipelines, regional     challenges associated with developing major facilities in an urban setting.
   water and sewer lines and telecommunication lines.
                                                                             • The TUC in Calgary includes Highway 22X and Stoney Trail (Hwy 201).
 • The corridors are nearly a kilometre wide and provide a safe
   designated space to place high-pressure natural gas pipelines.

                                                                                              Safety First. Always.
Project Overview
Background
For more than 100 years ATCO Pipelines has safely                  pipelines continues to make them vulnerable
and reliably transported natural gas from producers to             to damage and increases the risk that an incident
communities and industrial customers through a network             will occur.
of high-pressure pipelines. For residential customers, these    2. Construction Standards - These pipelines were
high-pressure lines feed the low-pressure local distribution       constructed to the standards of 50 years ago and are
pipelines, managed by companies such as ATCO Gas, that             more vulnerable to failure as they near the end of their
deliver the natural gas to homes and businesses.                   expected operating life as high-pressure lines.
In the 1950s and ‘60s a network of high-pressure                   Pipelines built to today’s standards have the
pipelines was built on, what was predominately, the                advantage of substantial improvements in materials,
outskirts of both Calgary and Edmonton to deliver natural          inspection capabilities and damage prevention
gas to the growing communities.                                    technologies that reduce the risk of an incident.

Over the years, urban development in Calgary and                3. Meeting Demand - As Calgary and Edmonton
Edmonton has overgrown the network of high-pressure                continue to grow in size and population, the location
natural gas pipelines placing homes, schools and                   and capacity of the existing high-pressure network
businesses adjacent to these lines.                                will not be able to meet the associated growth in
                                                                   demand for natural gas in these cities.
This has created three serious concerns for ATCO Pipelines:    This situation is a matter of public safety that is
 1. Public Safety – Due to the proximity of these              challenging cities across North America. There have
    pipelines to densely populated areas, and the very         already been serious incidents in other jurisdictions
    high pressures at which they operate, an incident          prompting ATCO Pipelines to re-evaluate the integrity
    involving these pipelines has the potential for tragic     of its existing pipeline network.
    consequences.                                              As a result, ATCO Pipelines has developed a solution
    Additionally, despite our best efforts to educate the      that will dramatically improve public safety and
    public, pipelines are still hit by third parties during    ensure that customers receive safe, reliable natural
    excavation activities. The current location of these       gas service for decades to come.

                                Safety First. Always.
Frequently Asked Questions
What is natural gas used for?                                 pipelines, managed by companies such as ATCO Gas.
Natural gas is delivered to the vast majority of Alberta      There are more than 9,000 kilometres of distribution
homes through a network of high-pressure and low-             pipelines running throughout Calgary and Edmonton
pressure pipelines. Natural gas fuels many of the comforts    bringing natural gas directly into your home. The
of our daily lives including heat for homes through natural   distribution pipelines operate at a much lower pressure,
gas furnaces, hot water through hot water tanks, as well as   as the amount of gas travelling through them is much less.
cooking appliances, clothes dryers and fireplaces. Natural    A pipeline failure caused by a leak or hit line at these lower
gas is also used to generate the electricity that powers      pressures is less likely to result in a serious incident.
homes and businesses across the province.                     Why is it important to move high-pressure pipelines
                                                              to the TUCs?
Are the existing urban high-pressure pipelines safe?
                                                              Given the high pressures these pipelines operate at, any
The current system is operating safely. We undertake          failure or damage to the pipeline can result in a serious
an intensive integrity program that includes cathodic         incident. This presents a significant risk to public safety.
protection surveys and leak inspections, as well as           If a serious incident were to occur in a densely populated
monitoring our lines 24-hours-a-day through our Control       area it could have tragic consequences.
Centre. However, many of the pipelines were constructed
50 to 60 years ago. The new pipelines will benefit from       Why are you not moving all high-pressure pipelines
the advancements in materials, construction practices         to the TUCs?
and damage prevention technologies, and be located
                                                              The lines that are not part of this project are either
within the safety of the designated Transportation/Utility
                                                              located in industrial areas that require high-pressure
Corridor (TUC).
                                                              service or are already in a defined corridor and have
What is the difference between the high-pressure              been constructed to current standards.
pipelines used for transmission and the low-pressure
                                                              What will happen to the old high-pressure pipelines
lines used for distribution?
                                                              near my home?
High-pressure transmission pipelines are the most
                                                              If the Urban Pipeline Replacement Project is approved
efficient way to transport large amounts of natural gas
                                                              there will be 260 kilometres of high-pressure pipelines
from producers to communities and industrial customers.
                                                              in Calgary and Edmonton removed from high-pressure
Large volumes of gas in the pipeline increase the pressure
                                                              service. Where appropriate, some of these pipelines will
in the pipeline. For residential customers, the high-
                                                              be converted to low-pressure distribution service.
pressure transmission pipelines feed local distribution
Name:
                                                                                                                             visiting our web site at www.atcopipelines.com/upr
                                                                                                                             1-855-802-7546 (Monday to Friday, 8am - 4:30pm),
                      phone, or in person, ATCO Pipelines is committed

                      questions, addressing your concerns and sharing

                                                                                                                                                                                  Address:
                      to listening to your comments, answering your

                                                                         have a direct impact on your home and family.
                      An important component of our submission to

                                                                                                                             You can make your voice heard by completing
                                                                         This issue is a matter of public safety that will
                      feedback we receive from you. Online, on the
                      the Alberta Utilities Commission will be the
We need your voice.

                                                                                                                             the attached comment card, calling us at
                                                                                                                                                                                  Phone or Email:

                                                                                                                             or meeting with us at our Open House.
                      your feedback.                                                                                                                                              Please provide your comments on the Urban Pipeline Replacement Project:
                                                                                                                                                                                         I am interested in receiving updates on the project.
                                                                                                                                                                                  Thank you for providing your comments and contact information above. We value your comments. As part of our Urban Pipeline Replacement (UPR) Project we
                                                                                                                                                                                  will be consulting with various stakeholders, such as yourself, and will be collecting, using and disclosing your comments, feedback and other information that you
                                                                                                                                                                                  may provide to us in connection with the planning, development and regulatory review of the UPR Project. By providing your information and comments above,
                                                                                                                                                                                  you are asking to participate in this process and are consenting to the collection, use and disclosure of such information for such purposes. At ATCO Pipelines,
                                                                                                                                                                                  we take your privacy seriously. For more information about our privacy practices and policies, please visit www.atcopipelines.com/Privacy or contact our privacy
                                                                                                                                                                                  officer at 403-245-7060.
Who is ATCO Pipelines?
For more than 100 years, ATCO Pipelines has owned and
operated key pipeline infrastructure throughout Alberta
that transports natural gas to utilities, power generators
and major industries.

With offices in Calgary and Edmonton and facilities
throughout the province, ATCO Pipelines is committed
to operating in a responsible and sustainable manner.
Our success depends on building and maintaining a safe
and reliable natural gas pipeline system, while meeting
high environmental standards and developing strong
community relationships.

ATCO Pipelines is part of the ATCO Group of Companies
– an investor-owned, Alberta-based, worldwide
organization with more than 8,800 employees that
deliver service excellence and innovative business
solutions through leading companies engaged
in Structures & Logistics, Utilities, Energy and
Technologies.

More information can be found at www.atcopipelines.com
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