1. ENERPLUS REGULATORY STRUCTURE (U.S. OPERATIONS) MARCH 2012

2. REGULATORY OBJECTIVES Minimize / Eliminate Risks Associated with Enerplus O&G Operations: - Safety (employee and public) – Jamie Longan (SIMS) - Environmental Impacts - Economic / Capital Outlay - Civil liability, fines and penalties - Public Perception / Scrutiny How? Identify Federal, State, County/Local Laws and Regs that Affect Enerplus Operations - Administrative (business/corporate regulations) - Seismic - Construction - Drilling - Completions - Production, etc.

3. LEGISLATIVE / REGULATORY TRACKING & EVALUATION – PROPOSED LEG & REGS Government Affairs leads this Effort Primary interface with Trade Orgs and Lobbyists Regulatory Team Supports Focuses on Proposed Legislation and Regulations - Federal (All U.S. states) - EBU (Pennsylvania, West Virginia, Maryland) - WBU (North Dakota, Montana, Colorado) Tracking system in place for Fed & EBU, Working on WBU

4. REGULATORY SUMMARIES Captures all Current Regulations Regulatory Leads this Effort Reg / Env & Land Teams are Primary Interface with Regulatory Agencies (State Agencies, BLM, BIA, USFWS, COE, EPA, etc.) Develop Regulatory Summaries (Current / Final Regulations) for Fed and each State Regulatory Summaries Include Agency Regs/Guidance/Policy : –Federal / Regional / State / County / Tshp. Requirements Planning and Permitting Requirements (prior to Construction) Compliance Requirements (Construction thru Production) –Regulatory citations (where in the regs are the requirements?) –Requirements by Operational Phase (Const., Drilling, Completions…) –Required Forms, etc.

5. REGULATORY REQUIREMENTS WHAT ARE REGULATORY REQUIREMENTS? Any action required by Enerplus to be in compliance with Federal, State, county and local laws, regulations, ordinances…. TWO GENERAL CATEGORIES: Planning / Permitting (all requirements prior to operations) –Seismic, Construction, Drilling, Completions, Production Operations Compliance (all requirements once operations commence) –Seismic, Construction, Drilling, Completions, Production TYPES OF REQUIREMENTS (partial list): Plans… Permits… Setbacks … Buffer zones … Bonding… Surveys… Infrastructure Design Standards… Permit Fees… Notifications… Certifications… Studies… Assessments... Inspections… Monitoring… Characterization… Manifests… Sampling… Inventories… Reporting… and the list goes on!

6. REGULATORY PROGRAMS HOW DO WE MANGAGE OF ALL THESE “REQUIREMENTS”? - ISO 14000 Approach Categorize them by Major Legislation (Enerplus 20 Programs) AIR … CHEMICAL MGMT … CULTURAL/PALEO … HEALTH & SAFETY … NOISE … NOXIOUS WEEDS … PLANTS (SSS) … RECLAMATION … SPILLS & INCIDENTS … NEPA … TRANSPORTATION … VISUAL/AESTHETIC … WASTE MGMT … SURFACE/GROUNDWATER QUALITY … STORMWATER MGMT SURFACE WATER USE/DISCHARGE … WETLANDS & 404 WILDLIFE / (SSS) … FED/STATE MULTIPROGRAM (OPERATIONS CATCH ALL) * NOTE: WE DON’T INCLUDE GENERAL BUSINESS/CORPORATE REGS (e.g. taxes) THAT ARE NOT UNIQUIE TO OIL AND GAS.

7. REGULATORY – Who Implements Regs? DETERMINE BEST E+ FUNCTIONAL TEAM WHO IS RESPONSIBLE FOR IMPLEMENTATION OF / COMPLIANCE WITH ADMINISTRATION OF REGULATIONS  Accounting  Completions  Construction  Drilling  H & S  Land  Production  Pipelines/Facilities  Reg / Env Team  Etc. ENSURE APPROPRITE E+ Team/Dept EVALUATES AND IMPLEMENTS USING A RISK MANAGEMENT APPROACH

8. REGULATORY - PLANNING BASED ON THE REGULATORY SUMMARIES… Determine which requirements are planning /permitting and develop/implement schedules, procedures, checklists, GIS support, etc. Planning - Project Planning Process - Well / Pipelines Planning Status / Drilling Schedule - Project Planning Maps (Regional, state, pad levels) - Project Planning Checklists - Site Selection - Planning / Permitting - Identify / Acquire Contractor Support

9. REGULATORY – OPERATIONS CHECKLISTS BASED ON THE REGULATORY SUMMARIES…AND SITE SPECIFIC PERMIT AND COMPLIANCE REQUIREMENTS… Document what information needs to be relayed to operations E+ Ops leads and contractors before starting field operations: Operations Checklists / Meetings - Pre-Construction - Pre-Spud / Drilling Plan - Pre-Completions CHECKLIST INCLUDE: Includes Operational Issues, Actions, Schedules / key contacts / H&S expectations / Permit COAs / Environmental compliance actions / land issues, etc.

10. REGULATORY - COMPLIANCE BASED ON THE REGULATORY SUMMARIES… Determine which requirements are compliance requirements and develop/implement schedules, procedures, checklists, GIS support, etc. Compliance – Multi-State Approach - Master Compliance Schedule (by Reg Program) - Site Inspection Checklists (all Reg / Env Programs) - Program Specific Compliance Plans (e.g…) - Chemical Reporting - Waste Management - Water Sampling - Spill Response

11. LEGISLATIVE / REGULATORY CHANGES WHAT IF THE REGULATIONS CHANGE? They do…FREQUENTLY… LEGISLATIVE / REGULATORY TRACKING SYSTEM (GA & Reg) -Scope of Proposed Change? -Impact on Enerplus Operations? (Cost, Schedule, Staffing) -Comment Period? -Enerplus Lead? -Interaction with Trade Groups? -Effective Date? -Once Final, update Regulatory Summaries -Revise schedules, policy, procedures, checklists, etc.

12. LEGISLATIVE / REGULATORY UPDATES FEDERAL (Examples) DOE/EPA looking at nationwide Fracing regulations Proposed BLM Fracing Regulations EPA Conducting 2-year Study on Fracing New AIR rules for minor sources (“Quad O”) GHG emissions getting more involved Frac Focus (not applicable to report chemicals in ND) EPA encouraging national Chemical tracking system NOW THE PROCESS STARTS AGAIN…BACK TO SLIDE 3…