Rainbow and Rangeland Pipeline Release - June 2014

Plains Midstream Canada (PMC) is dedicated to safe, reliable and environmentally responsible operations. We made a commitment to address the impacts resulting from the Rainbow and Rangeland incidents, and this settlement is reflective of that commitment. PMC has agreed to a settlement of all charges relating to the Rainbow and Rangeland Pipeline Releases of 2011 and 2012 respectively. The final settlement included: one charge under section 112(1)(a)(i) of the Alberta Environmental Protection and Enhancement Act for $450,000 resulting from the Rainbow release; one charge under Section 110(1)(a) of the Alberta Environmental Protection and Enhancement Act for $450,000, related to the Rangeland release; and one charge under Section 38(5) of the Federal Fisheries Act for $400,000 also resulting from the Rangeland release. PMC has spent $110 million on environmental cleanup efforts for both incidents and has invested significantly on preventative pipeline maintenance from 2010 to 2013. We sincerely regret that the incidents happened. We are committed to operating our pipelines safely. We continue to improve our pipeline safety through industry-leading investments in people, technology and programs. For example, we have: increased staff and investment for integrity and preventative maintenance programs to ensure that we meet or exceed the regulatory standards; invested $4 million to enhance the system used in the automated monitoring of our pipelines; and implemented an industry-leading water course management program including the use of real-time streamflow gauge readings. Our commitment is also evident through our participation on the Board of Canadian Energy Pipeline Association (CEPA), and our active involvement in CEPA's Integrity First Program. This program strives for zero incidents in the design, construction, and operation of our pipelines. We are dedicated to a culture of safety and responsibility.