October, 2014

Presented to:

Presented by: David Birkett, PresidentGina MacInnis, Environmental Consultant

About the project

Alton Natural Gas Storage (Alton) is investing $100 million to create natural gas salt cavern storage facilities near Truro, Nova Scotia

The storage facility will help meet Nova Scotia’s increasing demand for natural gas.

Alton has received all major environmental and regulatory approvals

Consistent with the new Nova Scotia Environmental Goals and Sustainable Prosperity Act

Anticipated in service date – Q2 2017

Components of a salt cavern

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Alton location map – water pipeline route

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Met with the chiefs of the Sipekne’katik (formerly known as Shubenacadie or Indian Brook) and Millbrook First Nations in 2006

Invited the chiefs and councils to participate in the Nova Scotia government’s environmental assessment process

Met with Native Council of Nova Scotia – July and November, 2007

Sent update letters in September 2007 to the chiefs of Sipekne’katik and Millbrook First Nations

Mi’kmaq Ecological Knowledge Study (Membertou Geomatics Consultants) December 2006 for the Alton Natural Gas Storage project

Met on November 15, 2007, with the economic development officers of the Sipekne’katik and Millbrook First Nations

Achieved Environmental Approval, Alton Underground Gas Storage Project December 2007

Consultation and environmental approvals

Alton has conducted numerous consultations and studies

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Presented and discussed the project in September 2008 with the Kwilmu’kw Mau-klusuaqn Mi’kmaq Rights Initiative (KMKNO)

Hosted a site tour and supplier session for Mi’kmaq owned businesses in July 2009

Updated Eric Christmas of the KMKNO and Native Council of Nova Scotia up to and including an open house session on November 30, 2011

Mi’kmaq Ecological Knowledge Study (Membertou Geomatics Consultants) March 2012 for the Gas Lateral project

Invited the KMKNO and the Native Council of Nova Scotia to provide submissions to the environmental assessment process related to the Alton Natural Gas Storage pipeline in February 2013.

Achieved Environmental Approval, Alton Gas Pipeline

May 2013

Consultation and environmental approvals

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Alton has conducted numerous consultations and studies

River Monitoring (Pre-construction) 2005 – 2007, preliminary independent studies by Jacques Whitford, Martec, Matrix,

Soltech, Thaumas and Department of Fisheries and Oceans (DFO)

2008 - 2014, Dalhousie University researchers, hydrodynamics of the river, river salinity, inventory of fish species present and the wider food web

Detailed monitoring plan during operations was approved by DFO for river salinity and species

Groundwater Monitoring Monitoring since 2009 (good baseline)

4 monitoring locations/wells at cavern site

4 monitoring locations/wells along the waterlines

Wetlands Both the gas pipeline and water pipeline routes were adjusted to avoid wetlands

Protecting the environment

In 2008, Alton began seven years of river monitoring to establish comprehensive ecological knowledge of the Shubenacadie River

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In the river: Understanding the Shubenacadie

To best understand the ecosystems of the river we needed answers to:

Protecting the environment

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What species are present? What time of year? In what numbers?

We also needed to know: The salinity, depth and temperature of the water.

Over 4,000 hours were spent in the river collecting data

Background data on:

• Gaspereau/American shad • Atlantic silverside • Smelt • American eel • Atlantic tomcod • Threespine stickleback• Northern pipefish • Winter flounder • Killifish • Cunner• Mummichog • Grass shrimp • Sand shrimp • Mysids, Copepods, Amphipods

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Protecting the environment

Mysid Copepod

Silverside Sand shrimp

Eel, flounder and striped bass larvae

New Eggs 24 Hours 48 hours, close to hatch 3 days post –hatch; 5mm long

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When spawning occurs? How many eggs may be present? Length and weight measurements of larvae and juveniles? Environmental factors impacting the eggs?

Protecting the environment

In the lab:understanding of the ecosystem

Over 10,000 hours were spent in the lab counting and analysing the data

Refrain from brining when large numbers of striped bass eggs are present; brining can be stopped immediately

The brine release schedule is based on the river velocity and flow data to minimize any impact on the ecosystem

Water intake will occur through a gabion wall to minimize the chances of drawing in fish and small organisms

An observational well is located within the water intake so that organisms will be detected if drawn in

Sampling at the water intake and brine discharge site for the presence of any species, their numbers, and life stage

Acoustic tagging of Atlantic salmon smolt and adult striped bass to monitor their use of the constructed channel

Constant salinity monitoring with 14 devices

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Protecting the environment

Significant measures to protect the fish habitat

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Protecting the environment

Other environmental factors influence the survival rate of eggs and larvae

Rainfall

Wind (eggs stranded on sandbank)

Water temperature

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Protecting the environment

Approximately 55 million cubic meters of waters enters the Shubenacadie river per tidal cycle.

Up to 5,000 cubic meters of brine is released into the Shubenacadie river per tidal cycle.

55M

5,000

Cubic meters per tidal cycle

Represents only 0.009% of total water flow

The amount of brine released into the Shubenacadie river represents only a small fraction of the total tidal water that flows into the river per tidal cycle

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Protecting the environment

Approximately 1.47 million metric tons of salt enters the Shubenacadie river per tidal cycle.

Up to 1,400 metric tons of salt will be released into the Shubenacadie river per tidal cycle.

The amount of actual salt released into the Shubenacadie river represents only a small fraction of the total salt concentration

1.47M

1,400

Metric tons per tidal cycle

Represents only 0.095% of total salt

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Protecting the environment

Salinity in the Alton Channel will mirror the natural salinity of the Shubenacadie River

The tidal Shubenacadie river naturally experiences a range of salt concentrations.

All organisms living in a tidal river are accustomed to range and changes in salt levels

Alton Channel – Shubenacadie River

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Alton infrastructure

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Alton infrastructure

Water intake will occur through the gabion wall to minimize the chances

of drawing in fish and small organisms

Brining pond allows us to control the flow of brine into the river

and manage the salinity levels

Natural gas utilities use storage for…

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Why natural gas storage caverns?

Increase in winter demand from 2010 to 2024 = 4.9 Bcf/d

Increase in summer demand from 2010 to 2024 = 1.1 Bcf/d

Source: Black & Veatch

Winter seasonal loads which continue to grow

Operational Flexibility/Savings

Stable and secure supply

Lower overall gas costs for consumers

Growing peak demand in residential and commercial sectors

Benefits to Nova Scotians

Storage of natural gas benefits all Nova Scotians Creating approximately 70 jobs during

construction; two major contractors are local

Provides a stable and secure supply of natural gas for heating homes, businesses, hospitals and universities

Eliminates natural gas price volatility lowering costs for consumers

Consistent with the new Nova Scotia Environmental Goals and Sustainable Prosperity Act Natural gas emissions are significantly

lower than other fossil fuels

Agreement signed with Heritage Gas Limited as first customer

Components of a salt cavern

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Alton project

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Cavern creation, Q4 2014 – Q2 2017 Detail engineering gas facilities, Q1– Q2 2015 Gas facilities construction, Q1 2016 - Q2 2017 Operations, April 2017

Alton recognizes the importance of community consultation. The Alton Gas Project is safe, regulated and sustainable and we want to make sure that there continues to be meaningful

consultation and open dialogue with the community.

Timeline

APPENDIX

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Alton project update

River site almost complete – Gabion wall and Channel

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Alton project update

Settling pond

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Alton project update

First cavern completed on October 5, 2014

Cavern was drilled a total depth of 1,000 meters

Drill pads for second and third storage cavern

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Alton project update

On October 10 , drilling started on Pad #2

Pad #2 Pad #3

Pump building almost complete. Pumps are expected to be installed in late October.

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Alton project update

October 2014September 2014