energyCANADA INC.

May 2007

Burnaby Edition

We are pleased to introduce our community newsletter to residents of the Greater Vancouver area. The name of our newsletter was suggested by an employee, and refl ects our role in the industry as a pipeline and marine terminal transportation company; as well as our goal to communicate with our neighbours.

We hope you enjoy reading our newsletter and invite any feedback you may have.

For those of you who have known us for many years, our company has undergone numerous business changes, but you will still recognize many familiar faces at our Burnaby facilities!

To help get reacquainted, here are some key facts about our business in B.C.:

We are now called Kinder Morgan Canada (KMC) and we continue to operate the Trans Mountain pipeline system. We previously operated under the Trans Mountain and the Terasen Pipelines banners. We move our customers’ products from Alberta and northeastern British Columbia to points throughout North America.

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More than 90 percent of gasoline, diesel and jet fuel arrives in the Lower Mainland through our Trans Mountain pipeline system.We have about 400 employees, are headquartered in Calgary, and have B.C. offi ces in Kamloops and Burnaby.Our interests in B.C. include:

The Trans Mountain pipeline system that includes:

1,150 km of pipeline between Edmonton, Alberta and Burnaby, B.C. (737 km in B.C.);22 tanks in Kamloops, Sumas Mountain and Burnaby to temporarily hold various incoming products for our customers; andBurnaby’s Westridge Marine Terminal to ship crude oil to international markets, and to store incoming aviation fuel;

The Trans Mountain Puget Sound pipeline system

a 110 km pipeline system that ships crude oil from our main pipeline near Abbotsford, B.C.,

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to refi neries in Washington State.

The Jet Fuel Pipeline systema 41 km pipeline system that transports aviation fuel from refi neries in the Lower Mainland to fi ve storage tanks at the Vancouver International Airport.

We are well positioned to meet potential west coast market growth through our pipeline and marine terminal network. The April 2007 announcement that Kinder Morgan is acquiring Vancouver Wharves in North Vancouver on the Port of Vancouver strengthens this position.

To view the Trans Mountain system map, visit our website (under Our Pipeline Network,Trans MountainTrans Mountain).).

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Hello!

This document contains important information. Please have someone translate it for you.

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www.kindermorgan.com/business/canada

Our PeopleAn interview with Bob Love,

Manager Lands for KMC, based in Burnaby.

What is your role with KMC?For the past 10 years, I

have managed the contractual arrangements of KMC’s Real Estate interests and am responsible for managing the assessments that lead to property tax rates. I look after our interests in Washington State, as well as several Canadian provinces.

Before working for KMC, I spent time as a commercial property appraiser and land agent negotiator.

What is the most rewarding aspect of your work at KMC?

The diversity of the work keeps me interested day to day. I have also enjoyed the people I’ve met and worked with over the years.

Can you tell us about an interesting story related toyour work?

Several years ago, I was working with a landowner who wanted to use natural means of vegetation control on the right-of-way on her property. We came up with the unique solution to graze goats on this section of the right-of-way.

I received a call one morning from a neighbouring property owner who woke up to a herd of goats trimming the ‘vegetation’ in her yard. Several hundred goats had escaped and had to be herded back to the right-of-way.

What are your outside interests?

I play hockey in a recreation league once a week to keep fi t, and I enjoy woodworking. My most recent accomplishment is a 130-foot concrete retaining wall and new back yard fence. I also enjoy reading, and have just fi nished David Copperfi eld by Charles Dickens.

Bob Love, Manager Land & ROW. Kinder Morgan Canada, Burnaby.

Did you know: What’s That Odour?

A Greater Vancouver Regional District (GVRD) air quality monitoring station gathers air emissions data continuously at KMC’s Burnaby Terminal. This information is incorporated into an annual report published by the GVRD.Odour producing air emissions at our Burnaby Terminal are monitored under a joint agreement between KMC and the GVRD. Odours related to the petroleum industry occur because of the distinctive smell of sulphur compounds in oil and gas. These odours are sometimes described as having a ‘rotten egg’ smell.When the Burnaby Terminal was built in the early 1950s, the surrounding area was sparsely populated; as residential neighbourhoods have fi lled in around the terminal, we continue to seek better ways to control odours for the comfort of our neighbours.As technology has improved, KMC has proactively addressed odours by installing equipment like vapour recovery systems (domed storage tanks installed with scrubbers), mechanical and chemical ‘double’ tank seals, and emissions reduction equipment installed at the Westridge Terminal. As a result, over the last ten years odour complaints in Burnaby have declined signifi cantly.All calls relating to odours concerns are investigated and documented by our staff. These records are reviewed by KMC and the GVRD.Although we strive to minimize the impact of our operations on our neighbours, we regret that a February 2007 odour incident affected some of our neighbours during work on the pipeline. We have investigated this incident and have implemented measures to help prevent recurrences.

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Why is it important to keep the right-of-way clear?

Safety is KMC’s fi rst priority in everything we do. For this reason, we have a well-developed Damage Prevention Program to ensure public and employee safety around our facilities. Vegetation management is one important aspect of this program.

By ensuring that the pipeline right-of-way is visible—from the air and from the ground—we can monitor any unsuitable use of the right-of-way that could damage the pipeline. It also allows us quick access to the area in case of an emergency.

How is vegetation management done?

If a right-of-way is not landscaped by the landowner, KMC usually completes annual mowing of grass or low growing vegetation in cooperation with the affected landowner. If a right-of-way is landscaped by a landowner, he or she is typically responsible for the

appropriate use and maintenance of the area. In some cases, KMC also works with landowners to remove

vegetation that has been allowed to grow beyond a safe level.

What are appropriate uses of rights-of-way?

KMC has developed landscaping guidelines for our right-of-way maintenance. A booklet can help landowners choose appropriate species of plants for use on the

right-of-way. Any plantings on the right-of-way must be maintained by the landowner and ensure easy

access by KMC staff and equipment. In most cases, walking trails are an acceptable use of the rights-of-way. Each situation is specifi c and landowners need to check with KMC before doing any landscaping.

How is the width of a right-of-way determined?

A typical right-of-way for a 24-inch petroleum

pipeline is about 18 meters (60 feet) wide. Our pipelines are usually offset from the centre of the right-of-way to allow access by heavy equipment if required on one side, and for dirt stockpile on the other side.

Burnaby Terminal: Welcome To Our Facility!

Right-of-way: Vegetation Management

KMC’s Burnaby Terminal (or ‘tank farm’), which began operations in 1953 houses 13 tanks on 122 acres on the southern slopes of Burnaby Mountain. Since that time, as the surrounding area has evolved into the Forest Grove residential community, our site has undergone its own transformations.

As it has for more than 50 years, the site still temporarily holds petroleum products that have made their way from the oil fi elds in Alberta, and northeastern B.C. across the Rocky Mountains and into the Lower Mainland through 1,150 km of pipe, before being sent to facilities around the Lower Mainland for use both locally and in other countries.

One of the most signifi cant changes to the Burnaby Terminal was automation of the facility’s control systems in 1985. This change allows operators to remotely open

and close valves, and start and stop pumps. By no longer needing to manually perform these functions at the physical location of this equipment, we have improved our ability to control inventory and detect leaks. An Environment, Health and Safety professional works at the Burnaby offi ce to oversee all aspects of routine maintenance and project work.

Other technological developments at the Burnaby Terminal over the years have contributed to our reputation as a leader in environmental protection in the petroleum sector. We are committed to operational excellence and we publicly report environmental and safety performance on our website. We have also installed environmental protection equipment at the Burnaby Terminal, including equipment that can detect oil in storm water runoff.

If oil is detected, a valve closes which contains the water so that staff can investigate.

The Burnaby Terminal site is ‘home’ to many different operating groups, including mechanical staff that install and repair valves and pumps; electrical trades that program and maintain meters and control systems; instrumentation trades that install and maintain effi ciently operating tank measurement systems; and pipeline maintenance staff that maintain the right-of-way and oversee inspection and repairs to the pipe.

If you would like to learn more about our operations and projects, we invite you to join us at our Community Open House, being held June 23, 2007 (see back page).

www.kindermorgan.com/business/canada

Since 1990, KMC has been the proud sponsor the Vancouver Symphony Orchestra’s annual free summer concert ‘Symphony in the Park’. This year’s premiere event, expected to draw 10,000 people, is being held on Sunday July 15th from 7:30pm to 9:30pm in Burnaby’s beautiful Deer Lake Park.

Vancouver Symphony Orchestra KMC was once again pleased to

sponsor the Great Salmon Send Off at Stoney Creek on Saturday, May 12th. The event is organized annually by the Stoney Creek Environment Committee, a group whose tireless efforts have been successful in raising the awareness of Stoney Creek and involving shared users of the stream in restoration efforts. We are pleased to be continuing our long history with the Committee.

Great Salmon Send-Off

KMC contributes annually to the Tree Canada Foundation, a charitable organization that partners with local volunteers to plant and care for trees to restore habitat, beautify neighbourhoods and enhance urban forests.

Since 1998, KMC’s support has helped to plant over 13,000 trees.Over an 80-year period, this will help offset more than 2,300 tonnes of carbon dioxide, a main contributor to greenhouse gases.

During 2007, KMC and other local organizations will work with Tree Canada to build a new wheelchair friendly observation tower to allow the public to share a bird’s-eye view of Burnaby Lake and its wildlife.

Tree Canada Foundation

Burnaby Terminal

Community Open House

Are you curious about what’s inside the tanks at KMC’s Shellmont Street Terminal? Do you have questions about the facility? If so, we have the event for you!

Mark your calendars for June 23rd as we show the community our Burnaby Terminal. Drop by to tour the facility, enjoy some refreshments and talk to our staff. We look forward to meeting you at our family friendly event! Watch for more information about this event coming soon.

Contact UsWe would like to hear from you! If you have a story idea, comments or questions about our publication, please contact:

Lexa Hobenshield, Senior Community Relations Advisorlexa_hobenshield@kindermorgan.com (604) 268-3000, 7815 Shellmont Street, Burnaby, BC V5A 4S9

Continuing our commitment to environmental responsibility, we are pleased to offer this newsletter in an electronic format. To receive our next edition electronically, send your email address to lexa_hobenshield@kindermorgan.com.

Community Corner