Our Environmental Performance

AIR QUALITY & ENBRIDGE

OUR IMPACTS

The major air emissions released by Enbridge facilities include methane, carbon monoxide, nitrogen oxides (NO_x) and volatile organic compounds (VOCs). Other contaminants released but in much smaller quantities include sulphur dioxide (SO₂), hydrogen sulphide and particulate matter.

We work to keep emissions to the air from our operations below regulated limits. In some cases, we have introduced environmentally friendly technologies in our plants that reduce air contaminant emissions. In large urban centres, such as the Greater Toronto Area, we also take an active role in promoting cleaner fuels and vehicles.

OUR PERFORMANCE

Reporting criteria air contaminants

Criteria air contaminants are a group of common air pollutants released from sources, including incineration, industrial production, fuel combustion and transportation vehicles. We have established programs setting our roles, responsibilities and timelines for reporting our criteria air contaminant emissions to various government agencies in Canada and the United States.

In Canada, Enbridge Gas Distribution and Liquids Pipelines track and report annual criteria air contaminant emissions, under the National Pollutant Release Inventory and Ontario Regulation 127. The air contaminants covered under the regulations include NO_x, SO₂, VOCs, carbon monoxide and particulate matter.

In the United States, we track and report criteria air contaminant pollutants from our liquids pipeline terminals and our natural gas system to state regulators. Under U.S. regulations, these emissions cover NO_x, SO₂, particulate matter, ozone, lead and carbon monoxide. In 2004, our U.S. Natural Gas Business focused its efforts on better understanding emissions from major sources (facilities that emit more than 100 tonnes each year). These consist of 60 different facilities, including gas processing and treating plants and compressor stations.

Managing emissions from gas plants

Our U.S. Natural Gas Business operates 21 gas processing plants, seven gas treating plants and six processing and treating plants in Mississippi and Texas, which provide a daily capacity of more than 22 billion cubic feet of natural gas. These facilities release various air emissions, including SO₂ and NO_x.

We continually look for opportunities to upgrade our gas facilities and pipelines in ways that contribute to operating, environmental and safety goals. In 2004, we invested $6 million US in a new acid gas injection plant in Wayne County, Mississippi. Acid-gas injection uses advanced technology to compress acid gas, primarily hydrogen sulphide and carbon dioxide, and injects the gases into suitable underground reservoirs, thereby avoiding emissions to the atmosphere. The new plant replaces an older gas treating plant and is expected to cut emissions of sulphur oxides by about 130 tonnes each year, compared with previous plant levels.

Promoting markets for cleaner vehicles

For several years, Enbridge Gas Distribution has promoted the development of natural gas vehicles (NGVs) for customers in our Ontario franchise area and across Canada. NGVs offer an attractive solution to the impacts of vehicle emissions on urban air quality, on average producing 40% to 60% fewer smog-forming emissions than do traditional gasoline- and diesel-fueled vehicles.

Early in 2004, the Canadian government provided $1.4 million, out of the $9.9 million NGV climate change measure announced in the 2003 federal budget, to support the purchase of factory-made NGVs, only to have major automakers withdraw their NGVs from the Canadian market.

In response, Enbridge Gas Distribution and our industry partners in the Canadian Natural Gas Vehicle Alliance developed a made-in- Canada certification process, using advanced technology that will allow vehicles to be modified to operate on natural gas with essentially the same fuel systems supplied by auto manufacturers. Enbridge is sponsoring the emissions testing of several modified vehicles at Environment Canada laboratories in Ottawa. These tests will help to validate the environmental and operational benefits of using the modifier technology in commercial vehicle fleets. Because this is a new process, the federal government has agreed to fund it as a pilot project with the intention to continue based on success in the marketplace.

Encouraging alternate transportation options for employees

In 2004, Enbridge Gas Distribution became a member of the Carpool.ca program, promoting this free ride-matching service among our Toronto area employees. The company also continued to be an active partner in Pollution Probe's S-M-A-R-T (Save Money and the Air by Reducing Trips) Movement. Through this workplace-based trip reduction program, we educated employees on alternate modes of transportation such as public transit, carpooling and teleworking.

We view public transit as part of the solution to urban air quality issues. To facilitate this option among more employees in the Greater Toronto Area, Jim Schultz, Enbridge Gas Distribution's president, joined with other companies and Pollution Probe in signing a letter to the Canadian government, urging legislative changes to make employerprovided transit passes tax-exempt.

Natural gas fuel benefits northern air quality

In northern communities such as Inuvik, Northwest Territories, natural gas provides an environmentally attractive alternative to diesel and heating fuel, decreasing local air emissions and avoiding oil transportation emissions.

In 2004, natural gas consumed by the Inuvik Gas Project, including gas delivered to the Northwest Territories Power Corporation, displaced about 15.4 million litres of diesel oil, the equivalent of 385 tractor-trailer loads. By providing a cleaner burning energy source, the project also benefited the environment by avoiding the emission of more than 12,000 tonnes of CO₂.

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At Enbridge, there are no dividing lines between good business practices and being a responsible company — one that is ethical, is a steward of the environment, is safe, engages its stakeholders and is attentive to social needs.

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