Content

Legal Proceeding

CAPLA Claim

The Canadian Alliance of Pipeline Landowners' Associations (CAPLA) and two individual landowners have commenced a class action against the Company and TransCanada PipeLines Limited. The claim relates to restrictions in the National Energy Board Act on crossing the pipeline and the landowners' use of land within a 30-metre control zone on either side of the pipeline easements. The Company believes it has a sound defence and intends to vigorously defend the claim. The Plaintiffs filed a motion to establish a cause of action, which is one of the requirements to have the motion certified as a class action under the Class Proceedings Act (Ontario). The motion was dismissed by the Ontario District Court in late 2006. The Plaintiff appealed the decision and the appeal was heard by the Ontario Court of Appeal on December 18, 2007. The decision of the Court of Appeal has not been released. Since the outcome is indeterminable, the Company has made no provision at this time for any potential liability.