The Enbridge Gateway Project involves the proposed development of a petroleum export pipeline, a condensate import pipeline, terminalling facilities and an integrated marine infrastructure at tidewater to accommodate loading and unloading oil and condensate tankers. Condensate is a light petroleum product similar to kerosene, which can be used as a thinning agent to transport heavier crude oils through pipelines.

The two pipelines would be approximately 1150 kilometres in length, built within the same right-of-way running from a point in Strathcona County near Bruderheim, Alberta to Kitimat, British Columbia. Both pipelines will be buried to a depth of approximately 1 metre above the top of each pipeline. The project has an estimated capital cost of approximately $4 billion in 2005 Canadian dollars.

Preliminary estimates of employment—direct, indirect and induced—required during construction of the Enbridge Gateway Project total over 49,000 person-years. Of this employment, about 45 percent would be in British Columbia, 40 percent in Alberta and the remaining 15 percent would be in the rest of Canada and overseas. Direct and indirect labor income associated with project construction is estimated at about $2.2 billion, with a similar distribution between British Columbia and Alberta. Local hiring is expected to comprise up to 15 percent.

The Enbridge Gateway Project will require many goods and services, most of which will be provided by contractors and suppliers selected through competitive processes. We are committed to fostering good working relationships with local businesses. Our policy is to use local contractors and businesses as much as possible.

Goods and services typically required for major pipeline projects include:

• Right-of-way preparation
• Accommodation
• Communication services and equipment
• Construction crews
• Equipment and machinery, marine equipment
• Office requirements
• Fuel and fuel storage
• Safety and medical services and equipment
• Logistics services
• Catering
• Security

We have conducted preliminary environmental analysis of the project and have incorporated this analysis in the preliminary project design and general project route. As we continue the detailed environmental studies and stakeholder consultation required for regulatory application, we are working to identify and mitigate impacts of the project.

The field program that we started in the summer of 2005 collected environmental baseline information along the proposed pipeline route. The focus of our studies was in areas such as:

• Fisheries and Aquatic Resources
• Hydrogeology (groundwater)
• Hydrology
• Water Quality
• Soils
• Geology and Terrain
• Vegetation
• Wildlife
• Heritage Resources
• Air Quality, Noise and Climate
• Marine

We will design and construct water crossings using the most appropriate crossing techniques and mitigation measures in consultation with local First Nation communities and stakeholders and in compliance with federal and provincial government regulatory requirements. We will identify, minimize and manage our environmental impact at each watercourse. As part of the environmental assessment, we characterize the fish and fish habitat at each watercourse crossing. This information is shared with our Engineering team, and appropriate techniques and mitigation measures are proposed for each crossing. In doing so, we work with the provincial and federal governments to ensure we meet their regulatory requirements.

From the outset of the Enbridge Gateway Project development, it has been recognized that aboriginal engagement will be an important part of our activity before, during and after construction. Enbridge has adopted an Indigenous Peoples Policy, with the goal of achieving mutually beneficial relations with indigenous communities in proximity to, or in some significant way affected by, our operations.

Enbridge’s policy lays out key principles for aboriginal relations, such as respect for traditional ways and land, heritage sites, the environment and traditional knowledge. More generally, it promotes the understanding of, and sensitivity to, indigenous peoples and their issues—all of which can and should result from sincere, ongoing dialogue with aboriginal communities.

As part of its aboriginal engagement strategies, Enbridge strives to create opportunities that are aligned with the aboriginal community’s aspirations. This will often lead to partnerships and sponsorship of educational and training programs, employment opportunity initiatives and other capacity-building efforts.

The petroleum berth will be designed to accommodate tankers up to 320,000 deadweight tonnes known as Very Large Crude Carriers (VLCC) and the condensate berth will be designed to accommodate Suezmax vessels up to 160,000 deadweight tonnes. It is expected that tugboats will escort the ships in the Douglas Channel for navigation and safety purposes. Only tankers that meet the strictest standards and are ocean-certified with double hulls will be used at the Kitimat terminal. All vessels as well as the marine terminal will fully comply with International Shipping Regulations, the Canada Shipping Act and Terminal Ship Vetting requirements.

The marine terminal may consist of two separate, dedicated tanker berth platforms: one for crude oil tankers and one for condensate tankers and potentially for tugboat berths and anchorage facilities in the area. In addition, the associated upland facility will include tanks for oil and condensate, as well as a pump station.