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

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

3. Crossing Agreements Canadian Best Practice The voice of Canada's upstream oil, oil sands and natural gas industry

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

5. Canadian Best Practice

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

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

8. Crossing Agreements Canadian Best Practice INTERPRETATION Contains words, terms and definitions of same CONSENT Grantor agrees that the Grantee may perform the Work on Grantee’s Facility in the Crossing Area in accordance with the terms and conditions of the Agreement. COMPLIANCE WITH STATUTES AND REGULATIONS Compliance and conformance with any and all applicable codes, statutes, laws, regulations, permits, licenses, orders and directions of any governmental authority. Crossing Agreement Schedule A

9. Crossing Agreements Canadian Best Practice POSITION OF FACILITY Provides stipulations for position of Grantee’s facility relative to the position of the Grantor’s facility. CONDITIONS Establishes the terms and conditions imposed on a particular crossing. REMEDY ON DEFAULT Language capturing issues of default Crossing Agreement Schedule A

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

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

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

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

14. Crossing Agreements Canadian Best Practice Crossing Agreement Process 1 Party requests to cross buried facility (via a One Call or direct request to facility owner) 2 Facility owner will locate and mark utility within 48 to 72hrs 3 If the ground disturbance will cross right of way, triggers crossing agreement process

15. Crossing Agreements Canadian Best Practice Crossing Agreement On-site Tailgate meeting 1 Review locate markings, hazards, emergency response protocol 2 Review documentation and backfilling requirements 3 Confirm authority of Company Inspector

16. Crossing Agreements Canadian Best Practice Crossing Agreement Benefits Clear and concise contract between two partiesTerms and conditions relative to constructionCovers the excavator, facility owner for liabilityPlan the work and work the plan

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

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