Stepping Up Changing an Industry

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1 Stepping Up Changing an Industry Energy transmission pipelines The Journey - Trust, performance and continuous improvement JIM DONIHEE, OMM, CD CHIEF OPERATING OFFICER, CEPA 5 MAY 2016

2 Our Journey eh? So What s the Problem. Why.. Change / Why Innovate?? Societal expectations substantially changed Earned license to operate Regulatory overburden performance based Cost structures Change

3 Failure to Anticipate Victim or Action

4 CEPA Members

5 CEPA & its members The Canadian Energy Pipeline Association (CEPA) represents Canada s transmission pipeline companies who operate about 130,000 kilometres of pipeline in Canada and the United States. Access Pipeline Inc. Alliance Pipeline Ltd. ATCO Pipelines Enbridge Pipelines Inc. Inter Pipeline Ltd. Kinder Morgan Canada Pembina Pipeline Corporation Plains Midstream Canada Spectra Energy TransCanada PipeLines Limited TransGas Limited Trans-Northern Pipelines Inc. Their Y - Polling

6 Rating oil and gas pipeline companies How would you rate the companies that operate oil and gas pipelines in each of the following respects? Change Good from 2013 Creating jobs for Canadians 66% 17% 8% 9% +3 Delivering energy efficiently 60% 19% 11% 10% +4 Using the latest and best technologies 58% 19% 9% 14% +4 Helping Canada secure the benefits of our 56% 20% 14% 9% +4 Creating energy solutions for Canadian 54% 22% 13% 11% +7 Operating safely 52% 21% 16% 11% +3 Preventing spills as much as possible 50% 21% 18% 10% +5 Managing spills well when they do occur 43% 22% 23% 12% -2 Having as light an impact on the 42% 20% 27% 11% +7 Doing their part to limit greenhouse gas 40% 22% 24% 14% +3 Being open about how they do their business 39% 21% 27% 13% +5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100% Good Fair Poor Unsure Response National survey, n=1,500, January 22-26, 2015

7 Industry response: Raising the bar - performance & accountability Components

8 Synchronized & Metabolized Leadership Management Systems Safety Culture Safety Culture Getting 0

9 Getting to zero incidents Leadership and governance CEPA Integrity First management systems and operating practices Safety culture Continual improvement leading to zero incidents Technology and innovation PERFORMANCE, ACCOUNTABILITY & EXECUTION IF

10 CEPA Integrity First INDUSTRY LED - IMPROVE TRUST AND CONFIDENCE IN THE INDUSTRY Safe communities and workplaces Minimizing the impact on the environment and biodiversity Creating lasting social and economic benefits PRIORITIES Worker safety Damage prevention Emergency management Pipeline integrity Control room management Pipeline Safety Communications PRIORITIES Land management Air emissions Water impacts Wildlife Noise PRIORITIES Land use and access Economic benefits Aboriginal relations Workforce Management Systems in action Condition of Membership IF Progress

11 Principles and priorities PROGRESS TO DATE Safe communities and workplaces Minimizing the impact on the environment and biodiversity Creating lasting social and economic benefits PRIORITIES Worker safety Damage prevention Emergency management** Pipeline integrity Control room management Pipeline Safety Information PRIORITIES Land management Air emissions Water protection Wildlife Noise PRIORITIES Land use and access Economic benefits Aboriginal relations Workforce Progress to Date Completed 2014/15 Planned 2016 Designed 2016 Note: ** Introducing first instance of 3 rd Party Verification Saf Cul

12 Why safety culture? JAMES REASON Before: Improving safety has been achieved by regulation, technology or a combination of both Now: Safety gains are a result of improvements in safety culture and the applications of Safety Management Systems Moments

13 Defining Moments WHAT DID THESE OCCURRENCES ALL HAVE IN COMMON?

14 Defining Moments WHAT DID THESE OCCURRENCES ALL HAVE IN COMMON? Great technology/management systems Strong regulatory environment Flawed or absent safety cultures! NEB Framework

15 NEB Safety Culture Framework Survey

16 Safety Culture Survey Baseline for Benchmarking, Learning & Accountability Benchmark / Reporting Safety Culture Survey Basis NEB Safety Culture Framework Every member responded 90% Response rate (>11K employees) Industry baseline common language Improvement opportunities: Company-specific Industry-wide 2016 Guidance Document ~ Maturity Model Transparency

17 Performance transparency Conclud1

18 Concluding thoughts Committed Leadership CEOs Clarity of Vision Zero Incidents Focus Improve Performance Learning & Collaboration Safety Culture Survey Transparency Tone & Accountability 2gether

19 Concluding thought! We cannot do this alone We cannot compete on Safety Our collective Leadership & Power of Collaboration

20 Stepping Up Trust, performance and continuous improvement Questions?

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