Kinder Morgan Frequently Asked Questions and Answers

History of the Trans Mountain PipelineQ. What is the history of the existing Trans Mountain pipeline on our territory?

A. The Trans Mountain Oil Pipeline was constructed in 1952. From 1952 to 1957, surveys were undertaken to determine which parcels of land were crossed by the pipeline, and the Indian Agent at the time negotiated for compensation to be paid to the individuals affected, in the form of Band funds. We are still researching the history of the current pipeline and will share details regarding its construction and compensation as we know more.

Q. How were decisions made regarding the implementation of the existing pipeline?

A. At the time Indians were completely disenfranchised and essentially had no human rights in Canada. The Indian Act put Indians in care of the Federal Government, and as such First Nations people had no real rights. Decisions at the time were made by the government and government agents. Records show that the Indian Agent at the time communicated with the ministry on behalf of the LNIB.

Q. Was there any compensation paid to the Lower Nicola Indian Band during the construction of the existing pipeline?

A. Records show that a request for remuneration was made by the Indian Agent on behalf of the Band. A small, one time fee of about $50 was reported to have been paid to some band members at the time. Back then there was no compensation for the pipeline going through traditional territories, only reserve lands.

© 2013 Lower Nicola Indian Band | www.LNIB.net | www.LNIBtogether.com !

LNIB Decision Making, Current BenefitsQ. Who are the key decision makers representing LNIB on this matter?

A. The LNIB is represented by a negotiating team that engages industry on projects such as Trans Mountain. The negotiating team consists of members of Chief and Council, band staff, and legal representation. The role of the team is to create agreement drafts. No decision will be made without full consultation with members, including meetings, online conversations, and surveys.

Q. Are there any benefits that the LNIB community/ administration currently receives from Kinder Morgan due to the existing pipeline running through our territory?

A. The LNIB currently receives an annual tax payment for the existing pipeline, which crosses our reserve land. This amount is currently around $70,000 and is calculated based on our taxation formula.

LNIB operates under First Nations taxation policy, and follows a strict policy of how tax monies can be spent. This is similar to a municipality. Our tax revenues go toward community infrastructure and services.

Q. Has the Band administration received any benefits from Kinder Morgan to pursue the pipeline expansion?   

A. The LNIB has an agreement in place with Kinder Morgan to communicate with LNIB members and start the process of making decisions about the proposed expansion. There are 5 main stages to negotiating a potential Impact Benefits Agreement (IBA). We are still in very early stages. At this point we have a Capacity Funding Agreement to develop our engagement strategy process.

Q. Has a decision already been made on the proposed Kinder Morgan pipeline expansion?

A. No, a decision has not already been made about the proposed pipeline expansion. At the LNIB level, we plan on engaging members over the next two months so we can make some solid decisions on how we approach the proposed expansion project.

! | www.LNIB.net | www.LNIBtogether.com ! Page 2

Routing, Safety, and Technical QuestionsQ. Is it possible for Kinder Morgan to change the route of the proposed expansion?

A. Yes, the Trans Mountain team is consulting with communities along their proposed route and is considering possible route changes as part of the proposed expansion. LNIB is in discussions with Kinder Morgan as well, and we need your input. Visit the Trans Mountain Merritt page of their website: http://talk.transmountain.com/merritt

Q. How does Kinder Morgan propose to work with LNIB to ensure utmost safety in operations and maintenance of the pipeline?

A. Trans Mountain can provide this information through their team. Information can be found on their website at http://www.transmountain.com/industry-safety

Q. What material is the existing pipeline made of and how is it constructed?

A. A 609.6 mm (24 inch) outside diameter (OD) pipeline, four pump stations, the Westridge Marine Terminal (Source: Project Description P. 5). The pipeline has protective coatings and a cathodic protection system to prevent rust and corrosion. Additional information can be found on their website at http://www.transmountain.com/building-a-pipeline

Q. Is Kinder Morgan ensuring that all environmental assessments are thorough in this expansion and that due process is being followed?

A. Yes, Trans Mountain is conducting environmental assessments and is consulting with all communities and First Nations along the proposed route. Please refer to their website and their team for more information: http://www.transmountain.com/industry-safety

Q. What measures are currently in place to ensure oil spills are dealt with in an efficient manner?

A: Trans Mountain can provide information through their team. More information is available at  http://www.transmountain.com/canadian-regulations-and-spill

Q. Will the recent leak impact the proposed timeframe for the pipeline expansion?

A. No, it is unlikely to impact the overall timeframe.

! | www.LNIB.net | www.LNIBtogether.com ! Page 3

Impacts, Benefits, Jobs, and OpportunitiesQ. Which stakeholders will benefit the most from this proposed expansion?

A. There are no decisions yet on specific benefits or how they would be handled. Negotiations are still in the very early stages, and LNIB has not yet adopted a position on the proposed expansion.

Q. What are the possible long-term positive benefits of this pipeline expansion for LNIB members?

A. There are no decisions yet on specific benefits or how they would be handled. Broad possible long-term benefits include tax revenue, jobs, education, and training opportunities. Work on this project is still in the early stages. Regardless of the outcome, we will follow the guidance of the community, who have told us that children, families, health, and the environment are all top values.

Q. What are the possible long-term negative impacts of this pipeline expansion for LNIB members?

A. There are short term impacts of construction, along with short term benefits such as potential contracts and jobs. There are also long term risks, such as oil leaks; however, the Trans Mountain line hasn’t had a major leak in the 60 years of operation that we know of. Long term benefits will include tax revenue, and education and training opportunities. In making decisions about the proposed twinning, LNIB will have to carefully weigh the risks with the benefits of the project.

Q. Will there be any short term or long term job creation in the region because of this expansion?

A. There will be both short and long term jobs created in the region. Short term benefits include contract opportunities and construction jobs. Longer term benefits would include tax revenues and potential jobs, education, and training opportunities. We are still in initial stages of negotiation. The pipeline survey we conducted of members will help us in our discussions, and we invite you to contact our team with any ideas, concerns, or questions.

Informed consent is very important and LNIB is committed to achieving informed consent on this project.

! | www.LNIB.net | www.LNIBtogether.com ! Page 4

Our Position on the PipelineQ. If we, as a community decide to oppose this expansion project, what steps will the Band take to express our opposition to Kinder Morgan and the Government ?

A. A direct oppose stance would be taken only after communicating with our members and deciding that the risks outweigh the potential benefits. Potential opposition tactics would include re-routing the line off reserve lands, and taking court action. At this point LNIB would prefer to find a negotiated solution as court actions are expensive and the courts often tell parties to negotiate anyways.

Q. Is LNIB negotiating with Kinder Morgan Trans Mountain?

A. The LNIB is in early stage negotiations with Kinder Morgan Trans Mountain. We believe it is irresponsible to not negotiate and engage industries who operate in our territory, and we seek to negotiate on behalf of members and future generations. It is the duty of LNIB to respond to any development in our territory and outline our terms.

We have two negotiations with Kinder Morgan, one to sort out right of way issues around the existing pipeline, and the other to negotiate around the proposed twinning of Trans Mountain.

Q. What is the official position of LNIB regarding this proposed expansion?

A. The LNIB does not have an official position at this point. We are still in the early stages of negotiation. It is our intent to engage our members and to make good decisions about how we move forward. The recent survey asking members what they think about pipelines and the Trans Mountain line was just a first step in helping us make important decisions at our council and negotiating tables.

Q. Is Kinder Morgan willing to consult with LNIB and accommodate our demands?

A. Yes, Kinder Morgan Trans Mountain is willing to meet with LNIB to consult and to negotiate a potential agreement to provide benefits in exchange for having the line cross our territory. Recently the President of Kinder Morgan agreed to meet with us to hear our firm position on issues such as safety, environment, health, and job creation.

! | www.LNIB.net | www.LNIBtogether.com ! Page 5

Q. Does the LNIB membership have any influence on the presence of the existing Trans Mountain pipeline?

A. The existing line was put in place in a different era, when the hard fought victories around title and rights had not yet been won. We have little influence on the existing line, but we have  more influence on the proposed expansion.

Any negotiated final agreement with Kinder Morgan Trans Mountain would be reached only through consultation with our members.

Q. How can the membership make its opinion heard in the decision making process for the pipeline expansion?

• Your voice is very important, and we need to hear what you have to say!• Visit our website at www.lnibtogether.com• Call one of our communications officers (Mary or Talon) at 250-378-5157 • Email us at lnibsurvey@gmail.com

If you want to engage Kinder Morgan Trans Mountain:

• Call their toll free line at 1.866.514.6700• Submit a question to http://www.transmountain.com/contact-us• email info@transmountain.com • or post questions on their interactive website http://www.transmountain.com/

talk

! | www.LNIB.net | www.LNIBtogether.com ! Page 6