NorthRiver Midstream Inc.

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Welcome to NorthRiver Midstream

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We have provided Gathering and Processing services in Northeast BC for over 60 years.

Our focus on operational excellence, safety of our people, communities, environment and assets is the cornerstone of our business.

We will work with you proactively to manage your production plans in our core resource areas to add value and profitability to your organization.

Our Business • One of the largest natural gas midstream businesses in Canada • Unsurpassed footprint connecting natural gas plays to various sales pipelines

leading to premium markets – and uniquely positioned to serve growing demands

• Over 60-year track record in safely, reliably and responsibly constructing and operating natural gas gathering and processing facilities

• Uniquely positioned to access both the conventional supply of the WCSB and the unconventional sources of the Montney, Horn River, and Liard resource plays

• Regulated by the British Columbia Oil & Gas Commission (BCOGC) and the British Columbia Utilities Commission (BCUC)

• Raw Gas Gathering: 2,300 kilometres of expandable raw gas gathering pipelines • Processing Capacity: World scale natural gas processing facilities, with a 3.1

billion cubic feet of natural gas per day capacity • 17 field booster stations

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Commercial Operations Gas Plants: North of Peace River South of Peace River * Aitken Creek Fourth Creek

Cabin* Gordondale East

Dawson Pouce Coupe

Fort Nelson Tupper

Fort Nelson North Tupper West

Highway* West Doe

Jedney*

McMahon

* Details on these locations coming soon

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Fort Nelson Area: Fort Nelson and Fort Nelson North

• The most northern operating region in North America for gathering and processing natural gas

• Processing Capacity: 1.3 billion cubic feet per day (Bcf/d) available from 2 processing plants

• Fort Nelson Gas Plant located near the town of Fort Nelson and Fort Nelson North Processing Facility located further east near the Alberta border

• Source of Gas Supply: Connected to both conventional and shale gas reserves through more than 700 kms of pipelines that extend from northeastern British Columbia to Northwestern Alberta

• Located in the heart of the Horn River and Liard basins • Egress options to both BC Pipeline’s T-North system and NGTL

allowing for market diversity

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McMahon Gas Plant

• The first natural gas facility constructed in B.C. • Extensive footprint located in the liquids rich

Montney • Complex operations - two phase gathering

system of gas and liquids • Nameplate Processing Capacity: 810 MMcf/d • 98% recovery rate of sulphur from incoming

sour gas • Recovers up to 3,000 barrels of propane and

heavier hydrocarbons per day • Capacity to recover and stabilize up to 4,000

barrels per day of pipeline condensate

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Aitken Creek Plant and Dawson Processing Plant

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Dawson Processing Plant • Included in the Fort St. John gathering area, Dawson

is an extension of the McMahon Plant

• Nameplate Processing Capacity: 240 MMcf/d

• Following strict ground disturbance policies, neighbours are able to farm right up to the edge of the plant’s property

Aitken Creek Plant • Included in the Fort St. John gathering area,

Aitken Creek is an extension of the McMahon Plant

• Nameplate Processing Capacity: 100 MMcf/d

Dawson Gas Plant

Commercial Operation • Where to Start • New Well/Tap • Production Source Setup • Request for New Services – Contract • Tolls • Outage Information • Measurement • Receipt Point Operators • Daily Estimate Allocations • Month End Allocations • Invoicing • Key Contacts

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Where to Start

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You have new gas supply that you want to tie into our system:

• Three distinct processes to complete:

• Tie-in of new receipt point

• Set up a production source

• Apply for service at location

• Contact either the Tie-in Coordinator or your Field Contact Person • Email: mts@nrm.ca

New Tap

• Completion of the “Tap Application Form” is required for all new physical tie-ins. The form is available online at our web site at:

Tap Application Form – New Tie-ins • The Tie-in Coordinator will coordinate all the required internal processes and

guide you through the F.E.E.D. Process to determine scope, schedule and costs • Once the tie-in is approved, construction completed and the tap in place, the

Producer’s meter station will require inspection • Following completion of the tie-in inspection and the necessary requirements

approved, the MTS Technician will inform the Tie-in Coordinator to proceed with start-up

• A “Start-Up Notice” will be authorized by the Tie-in Coordinator through a Production Facilitation Notice and gas flow may commence

• Once this is complete, final costs will be billed out

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Production Source Setup

• The Receipt Point Operator (RPO) will send a “Request for New Production Source” form to Volume Accounting to set up a new production source. This is available on our website:

Request for New Production Source

• Production sources are created based on unique producer/shipper relationships behind a receipt point

• Gas well analysis is also required to calculate an initial conversion factor for daily allocation estimates

• Once this is complete, a “Start-Up Notice” is emailed to the RPO

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Production Source Setup

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• The RPO is responsible for installing, maintaining and operating the:

• Receipt point • Metering, monitoring and sampling equipment • Pressure control equipment • Electronic flow measurement and communications

• Lack of compliance by the RPO to NorthRiver instructions will be considered to be non-compliance by the Shipper(s) and subject to further action

For more information go to:

Receipt Point Operator (RPO) Roles & Responsibilities

Request for New Service Contracting for Service

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• Contact your Commercial Asset Manager for assistance in requesting new service and/or renewing existing contracts

• Determine which service(s) and type of service (Firm or Interruptible) you need for your specified location(s)

Request for New Service Services Offered

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• RGT – Raw Gas Transmission

• TREAT – Treatment of raw gas to remove carbon dioxide, sulphur and other impurities

• FUEL - Fuel Gas at the plant outlet

• LR - Liquids Recovery service at McMahon Plant whereby liquid hydrocarbons are extracted from raw gas

• LPSF – Liquid Products Stabilization and Fractionation at McMahon Plant includes stabilization and fractionation of liquid hydrocarbons to produce liquid products

• NorthRiver contracts have negotiable terms which can be customized to meet individual requirements

• Service parameters for negotiation may include: • Term • Volume • Toll • Renewal rights • Resourcing rights (receipt point relocation)

Tolls

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Tolls are calculated based on Gas Service Zones

• Zone 1 – Raw Gas Transmission (RGT)

• Zone 1b – Fuel Gas (FUEL)

• Zone 2 – Treatment – Gas Processing Plants (TREAT)

Outage Information

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• The Area Operating Committee (AOC) is a group consisting of shippers and NorthRiver Operations staff in the specific operating areas: Fort St. John and Fort Nelson

• The AOC negotiates an annual outage schedule for their respective facilities to mitigate the amount of down time at the plant

• Annual and Weekly Planned Outage Schedules are posted initially as Notices and made available on the web site under Informational Postings

• The Outage Coordinator phone number is: 250-262-3439

• For more information, go to: Informational Postings

Measurement

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• NorthRiver measurement data is finalized on the 5th working day of each month

• Types of measurement and recording devices used: • Orifice meters • Gas turbine meters • Ultrasonic meters • EFM – electronic flow measurement • Charts

Receipt Point Operators

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• RPO’s submit Raw Gas Transmission (RGT) receipt point daily estimates for each producer at a production source so Shippers are aware of the expected volumes of raw gas or quantity of residue gas to be allocated to their supply account each gas day

• RPO’s provide a Receipt Point (RP) analysis according to designated frequency

• RPO’s provide the actual volumes of raw gas, residue gas, and hydrocarbon liquids produced from each production source for the previous month based on the floating calendar Measurement and Allocation Deadlines

Daily Estimate Allocations

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• Raw gas from the gathering system is processed at the plant and the resulting products are allocated back to the production sources using the raw splits provided by the RPO

• Daily allocations are deemed estimates until measurement is finalized. After the flow month is completed, the Receipt Point Operators will provide NorthRiver with the final splits at the receipt points

• Daily estimates are used for: • operational balancing of the pipeline

• Measurement & Allocation Month End Deadlines can be found at: Measurement and Allocation Deadlines

Month End Allocations

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• The “component recovery efficiency methodology” is used to calculate the amount of liquids in the gas stream

• Plant fuel gas is allocated based on the quality/quantity of:

• acid gas

• raw volume

• propane/butane

• condensate

Invoicing

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• General service invoice is generated for: • RGT • Treatment • Liquids Recovery, Stab and Frac

• Stab – stabilization • Frac - fractionation

• Transmission • Overproduction charges/credits

• Invoices are published on the web site as per the Measurement and Allocations deadlines posted on the website

• Payment is due on the 25th day of the current month or five business days after receiving the invoice

Invoicing - Taxation

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Carbon Tax (CBT) • B.C. Government tax applied to all emissions from combustion of fossil fuels in B.C. • Tax rate is derived from the amount of greenhouse gas emissions (GHG) generated

from burning fossil fuels • Applied to both RGT and TREAT service and calculated monthly. It is pro-rated to each

producer based on the total amount of fuel used at the plant and any compression in the gathering system

Motor Fuel Tax (MFT) • B.C. Government tax applied to “marketable gas” • Tax is based on the amount of fuel used to operate compressors and the pipeline. It is

pro-rated based on the total amount of fuel used divided by the amount of gas transported for each shipper for the month

• Applied to transportation services only

Contact Us:

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Website Contact Us page: Contact Us Location: Calgary Suite 1400 888 3rd Street S.W. Calgary, AB T2P 5C5

Switchboard: 587-747-6500 Please find the link to this presentation on our website at:

https://www.fieldservices-midstream.com